Can exporter/importer extend the timing of payments?

For non returning foreign exchange earnings within 90 days there are penalties stipulated in amount of 0.33% for each day of delay from amount of revenue that is not received or goods undelivered. Can exporter/importer extend the timing of payments and thus avoid sanctions for violation of payment terms?

For example, an exporting company sells wholesale consumer goods abroad. If the shipment for export was made three months ago, but resident will be able to make payment later than 90 days after the date of export, can  the company extend officially established statutory deadlines for payments to non-residents for a longer period - up to the actual performance of its obligations with resident?

The answer is no. The company, which sells consumer goods, can not take advantage of legislative preferences to extend the 90-day term of payments to non-residents.

According to Art. 6 of the Law of Ukraine "On the Procedure for settlements with foreign currency» №185/94-VR from 23.09.1994 (hereinafter - the Law N185/94), legislated deadlines (currently 90-day period) can be extended with central executive body that implements state policy in the field of economic development (Ministry of Economy of Ukraine) in the case of transactions with residents on industrial cooperation agreements, consignment, complex construction, tender delivery, warranty, delivery of complex technical products and product specials. Since the contract supply of goods does not belong to the above categories, permit for extension of settlements, which are made according to the Order of the Cabinet of Ministers of Ukraine № 1409 from 29.12.2007 "On approval of extension of payments for foreign trade operations", the company will not be able to get it.

However, you should find out why non-resident can not meet its obligations to the statutory 90-day period. As stated in Sec. 6 art. 6 of the Law N185/94, if the excess timing is due to force majeure, the progress of these terms shall be suspended for duration of force majeure and rebounding from the day following the day of expiry of such circumstances. Confirmation of force majeure in this case is a certificate of Commerce and Industry of Ukraine or other authorized organization (authority) of the country of contracting parties or a third country under contract terms.