The Cabinet of Ministers has strengthened the rules for including goods in the list with localization in Prozorro
The Government of Ukraine has strengthened the rules for including goods in the list with a confirmed degree of localization, which is used in public procurement through the Prozorro system. Such changes were introduced in response to the appeal of Ukrainian manufacturers who insisted on stricter control of the fulfillment of localization conditions during public procurement.
From now on, companies seeking to sell their products to the state must provide an expanded package of documents confirming the presence of at least 25% of the Ukrainian component in the cost of goods.
“This is the second update of the localization mechanism in public procurement after expanding the list of goods. We are improving the procedure for including products in this list so that government procurement does not turn into a tool to support pseudo-localized imports. It is about protecting Ukrainian manufacturers from situations where almost finished products are imported into Ukraine, minimally processed here and passed off as made in Ukraine, – emphasized Deputy Minister of Economy, Environment and Agriculture of Ukraine Andrii Telyupa.
To confirm localization, the manufacturer must submit a copy of the tax supplement 4DF for the previous year with data on income, taxes, military levy and EUS, a certificate of technological operations carried out in production, a product sample test report issued by an accredited laboratory, as well as confirmation of the availability of a material and technical base, equipment and personnel.
The Ministry of Economy, Environment and Agriculture received new powers. It will be able to verify the reliability and completeness of information from manufacturers, analyze the documents on the basis of which the goods are included in the list, carry out automated verification of applications through the web portal, and also inform the commission for consideration of the activities of the electronic procurement system in case of inconsistencies.
Localization in public procurement involves a minimum share of the Ukrainian component in the cost price of goods procured under the Law on Public Procurement. It should be at least 25% in 2025, 30% in 2026, and then increase by 5% every year until it reaches 40%. This mechanism is aimed at supporting domestic production, job creation and industrial development.
