​The Ministry of Finance presents for a public discussion the draft law on the state regulation of the exctraction, production and use of precious metals and precious stones and control over transactions with them

2/23/18

The Ministry of Finance presents for a public discussion the draft law of Ukraine “On amendments to the Code of Ukraine on Administrative Violations and the Law of Ukraine “On the state regulation of the exctraction, production and use of precious metals and precious stones and control over transactions with them””.

What’s it about?

As part of the reform of state controlling authorities and the deregulation of business activity running in line with the decree of the Cabinet of Ministers on the optimization of the system of the central bodies of executive power, the State Assay Service of Ukraine has been liquidated which was responsible for implementing the state policy in the area of assay control and controlled compliance with the legislation in transactions involving precious metals and stones. According to the mentioned decree, these functions were transferred to the Ministry of Finance, excluding the control and supervision functions. Consumer protection functions in regard to articles made of precious metals and precious stones were transferred to the State Service for Food Safety and Consumer Protection which is a control and supervision state agency.

Besides, supervision and control functions related to transactions on the market for precious metals and precious stones are also executed by fiscal authorities and the National Police.

The key goal of the prepared draft law is to provide a legal basis for the deregulation of business activity which is subject to assay control and to remove excessive and overlapping functions of the controlling authorities in this area.

This draft law:
- regulates the powers of the authorities controlling transactions with precious metals and precious stones;
- enhances the responsibility of business operators for the violation of regulations on the turnover of precious metals and precious stones;
- clarifies the functions of the Ministry of Finance as the body responsible for the implementation of the state policy in the area of state assay control, except for the control and supervision functions.

What’s the benefit?

- the draft law regulates the new powers of the Ministry of Finance resulting from the liquidation of the State Assay Service;

- the draft law delivers pre-conditions for the liberalization of transactions with precious metals and precious stones by abolishing the administrative liability for the violation of regulations on the use and loss of precious metals and stones, norms for the return of scrap, improper record-keeping and storage of precious metals and precious stones, since these actions fall under the responsibility of owners themselves or entities managing state-owned organizations;

- the draft law contributes to the better protection of the rights of citizens consuming articles made of precious metals and precious stones – sale of items without the state assay seal or with a fake state assay seal is subject to a fine with the seizure of the respective items and revenue.

What comes next?

After the draft law has been agreed with involved state bodies and discussed in public, the Ministry of Finance will submit it to the Cabinet of Ministers and then to the Parliament.
Link to the text of the draft law

Proposals and initiatives regarding the draft law should be sent to epeti@minfin.gov.ua

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