Localization of public procurement: does the law work (research results)

Advocacy
14:32 Tue 11.06.24 456 Reviews
Print

Improving the mechanism of maintaining the register of localized goods producers will not only reduce the level of fraudulent schemes in the register, but also increase investors' interest in the development of Ukrainian business.

This was stated by Andriy Shabelnikov, Chairman of the UNBA Committee on Investment Activity and Privatization, commenting on the results of the hearings in the Verkhovna Rada Committee on Economic Policy on «Post-legislative control in the field of compliance with the requirements for the local component (localization) in public procurement».

During the event, MPs, representatives of the Ministry of Economy, the State Audit Service, the Antimonopoly Committee, specialized associations and manufacturers analyzed the effectiveness of the implementation of the Law of 16.12.2021 No. 1977-IX «On Amendments to the Law of Ukraine «On Public Procurement» on Creating Preconditions for Sustainable Development and Modernization of the Domestic Industry».

Earlier, the parliamentary committee interviewed business entities involved in the procurement of localized goods, as well as regulatory authorities. The respondents shared their thoughts on whether the law has worked in practice, what are the achievements and problems in its implementation, and how to resolve the difficulties that have arisen.

As a reminder, the law introduced the degree of localization of production - an indicator of the local component in the share of the cost of raw materials, components, assemblies, parts, components and components of products, works, services and other components of domestic production in the cost of the goods that are the subject of procurement.

By 2032, the law established specifics for the procurement of goods that require the customer to comply with the degree of localization of production, which must be equal to or greater than 10% in 2022 and 40% after 2028. The degree of localization of production must be determined by the manufacturer of the goods in accordance with the formula established by law.

During the event, the participants were presented with the generalized results of the survey by the main groups: suppliers of goods, customers of goods, state control and supervision authorities.

In particular, 61.9% of suppliers of goods noted that the introduction of localization had not affected their business at all. This is due to several factors: products not falling under the law, a low localization threshold at the initial stages, and the lack of necessary regulations and explanations from government agencies.

To increase the level of localization, some companies plan to develop their own production of components and equipment (33.3%), while others intend to cooperate with Ukrainian manufacturers (23.8%). However, there are also those who do not intend to take any measures (14.3%). At the same time, more than half of the respondents expressed confidence that by 2028 the level of localization of their products will be at least 40%, while almost a quarter still doubts that they will be able to reach this figure. The full results of the survey can be found here.

The participants of the committee hearings were also presented with the results of monitoring procurement with localization through the Prozoro system, told about the improvement of the mechanism for maintaining the register of localized goods producers, the fight against fraud in the register, measures to monitor compliance with the law, and discussed proposals for possible changes to the legislation on localization.

Popular news

The model for legal assistance to veterans was discussed at the UNBA

Legal defence of military personnel

The model for legal assistance to veterans was discussed at the UNBA

A working meeting was held at the Ukrainian National Bar Association, during which representatives of the advocacy profession, the Ministry of Veterans Affairs of Ukraine and a foreign expert discussed approaches to providing legal aid to veterans, the role of the advocacy profession in this system, and the experience of other countries.

18:07 Mon 20.04.26 132
The CJU has endorsed guarantees of the legal profession’s independence and has proposed a meeting with the BCU

Guarantees of the practice of law

The CJU has endorsed guarantees of the legal profession’s independence and has proposed a meeting with the BCU

The Council of Judges of Ukraine has responded to a letter from the Bar Council of Ukraine regarding the inadmissibility of the High Council of Justice granting immunity to a member of the High Council of Justice — a privilege not provided for by law — as well as regarding violations of constitutional guarantees of the independence of the legal profession and attorney-client privilege.

18:24 Fri 17.04.26 122
The UNBA and the Ministry of Veterans are expanding their cooperation

Interaction

The UNBA and the Ministry of Veterans are expanding their cooperation

War veterans, their family members, as well as the family members of fallen Defenders of Ukraine are to receive improved access to professional legal assistance and additional opportunities for independent legal protection.

16:27 Mon 13.04.26 139
Advocates have warned that the draft Labor Code would curtail workers' protections

Legislation

Advocates have warned that the draft Labor Code would curtail workers' protections

Certain provisions of the draft Labor Code of Ukraine regarding collective labor disputes undermine labor protections and do not comply with constitutional and international standards.

11:47 Thu 09.04.26 228
Representatives from the Ministry of Veterans Affairs and the UNBA discussed veterans' access to justice

Legal defence of military personnel

Representatives from the Ministry of Veterans Affairs and the UNBA discussed veterans' access to justice

On April 3, a working meeting was held at the Ministry of Veterans Affairs of Ukraine with representatives of the Ukrainian National Bar Association, dedicated to improving the effectiveness of legal protection for war veterans and their families.

16:17 Tue 07.04.26 170
The right of minors to marry: how judicial oversight works

Educational events

The right of minors to marry: how judicial oversight works

The issue of granting minors the right to marry lies at the intersection of family law, child protection, and judicial discretion. The UNBA Committee on family law dedicated a webinar held on March 30 to this very topic.

11:28 Tue 07.04.26 201
The UNBA and the Coordination headquarters have agreed to cooperate in assisting those released from captivity

Interaction

The UNBA and the Coordination headquarters have agreed to cooperate in assisting those released from captivity

Servicemen released from captivity, family members of prisoners of war, civilians deprived of their personal liberty as a result of armed aggression, as well as persons missing in connection with the war, will gain additional opportunities to access legal assistance and protect their rights.

19:14 Mon 06.04.26 179
BCU: The HCJ’s decisions undermine the constitutional guarantees of the independence of the advocacy profession

Self-government

BCU: The HCJ’s decisions undermine the constitutional guarantees of the independence of the advocacy profession

The Bar Council of Ukraine has concluded that, in its recent decisions, the High Council of Justice has, without legal grounds, called into question the right of bar self-governing bodies to protect the guarantees of legal practice and has, in effect, attempted to grant one of its members — who retains the status of an advocate — special immunity from the Rules of professional conduct and disciplinary responsibility.

14:56 Thu 02.04.26 222

Надішліть файл із текстом публікації у форматі *.doc, фотографію за тематикою у розмірі 640х400 та Ваше фото.

Оберіть файл