diff --git a/idea/idea-core/src/org/jetbrains/kotlin/idea/core/formatter/JetCodeStyleSettings.java b/idea/idea-core/src/org/jetbrains/kotlin/idea/core/formatter/JetCodeStyleSettings.java
index 5e958e7a2b0..a4853e1e1ac 100644
--- a/idea/idea-core/src/org/jetbrains/kotlin/idea/core/formatter/JetCodeStyleSettings.java
+++ b/idea/idea-core/src/org/jetbrains/kotlin/idea/core/formatter/JetCodeStyleSettings.java
@@ -43,7 +43,6 @@ public class JetCodeStyleSettings extends CustomCodeStyleSettings {
     public boolean LBRACE_ON_NEXT_LINE = false;
 
     public int NAME_COUNT_TO_USE_STAR_IMPORT = ApplicationManager.getApplication().isUnitTestMode() ? Integer.MAX_VALUE : 5;
-    public boolean IMPORT_PACKAGES = true;
     public boolean IMPORT_NESTED_CLASSES = false;
     public final PackageEntryTable PACKAGES_TO_USE_STAR_IMPORTS = new PackageEntryTable();
 
diff --git a/idea/src/org/jetbrains/kotlin/idea/formatter/ImportSettingsPanel.kt b/idea/src/org/jetbrains/kotlin/idea/formatter/ImportSettingsPanel.kt
index a87b3b4802f..526ee87e95b 100644
--- a/idea/src/org/jetbrains/kotlin/idea/formatter/ImportSettingsPanel.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/formatter/ImportSettingsPanel.kt
@@ -19,7 +19,6 @@ package org.jetbrains.kotlin.idea.formatter
 import com.intellij.application.options.CodeStyleAbstractPanel
 import com.intellij.application.options.ImportLayoutPanel
 import com.intellij.application.options.PackagePanel
-import com.intellij.ide.highlighter.JavaFileType
 import com.intellij.openapi.application.ApplicationBundle
 import com.intellij.openapi.editor.colors.EditorColorsScheme
 import com.intellij.psi.codeStyle.CodeStyleSettings
@@ -68,7 +67,6 @@ class ImportSettingsPanel(private val commonSettings: CodeStyleSettings) : JPane
     private val starImportLimitModel = SpinnerNumberModel(4, 1, 100, 1)
     private val starImportLimitField = JSpinner(starImportLimitModel)
     private val cbImportNestedClasses = JCheckBox("Insert imports for nested classes")
-    private val cbImportPackages = JCheckBox("Insert imports for packages")
 
     private val starImportPackageEntryTable = PackageEntryTable()
     private val dummyImportLayoutPanel = object : ImportLayoutPanel() {
@@ -121,7 +119,6 @@ class ImportSettingsPanel(private val commonSettings: CodeStyleSettings) : JPane
             }, true)
 
             add(cbImportNestedClasses)
-            add(cbImportPackages)
         }.createPanel()
     }
 
@@ -138,7 +135,6 @@ class ImportSettingsPanel(private val commonSettings: CodeStyleSettings) : JPane
         }
 
         cbImportNestedClasses.setSelected(settings.IMPORT_NESTED_CLASSES)
-        cbImportPackages.setSelected(settings.IMPORT_PACKAGES)
 
         starImportPackageEntryTable.copyFrom(settings.PACKAGES_TO_USE_STAR_IMPORTS)
         (starImportPackageTable.getModel() as AbstractTableModel).fireTableDataChanged()
@@ -154,7 +150,6 @@ class ImportSettingsPanel(private val commonSettings: CodeStyleSettings) : JPane
             else -> (starImportLimitModel.getNumber() as Int) + 1
         }
         settings.IMPORT_NESTED_CLASSES = cbImportNestedClasses.isSelected()
-        settings.IMPORT_PACKAGES = cbImportPackages.isSelected()
 
         if (dropEmptyPackages) {
             starImportPackageEntryTable.removeEmptyPackages()
diff --git a/idea/src/org/jetbrains/kotlin/idea/util/ImportInsertHelperImpl.kt b/idea/src/org/jetbrains/kotlin/idea/util/ImportInsertHelperImpl.kt
index 73ed93f0169..5789b8ae563 100644
--- a/idea/src/org/jetbrains/kotlin/idea/util/ImportInsertHelperImpl.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/util/ImportInsertHelperImpl.kt
@@ -89,7 +89,7 @@ public class ImportInsertHelperImpl(private val project: Project) : ImportInsert
     override fun mayImportByCodeStyle(descriptor: DeclarationDescriptor): Boolean {
         val importable = descriptor.getImportableDescriptor()
         return when (importable) {
-            is PackageViewDescriptor -> codeStyleSettings.IMPORT_PACKAGES
+            is PackageViewDescriptor -> false // now package cannot be imported
 
             is ClassDescriptor -> {
                 importable.getContainingDeclaration() is PackageFragmentDescriptor
diff --git a/idea/testData/shortenRefs/ClassNameConflictNoPackageImport.kt b/idea/testData/shortenRefs/ClassNameConflictNoPackageImport.kt
index fa2247c65ad..e1ae0ff52d0 100644
--- a/idea/testData/shortenRefs/ClassNameConflictNoPackageImport.kt
+++ b/idea/testData/shortenRefs/ClassNameConflictNoPackageImport.kt
@@ -1,5 +1,3 @@
-// IMPORT_PACKAGES: false
-
 fun foo(array: Array<String>){}
 
 val v: <selection>java.lang.reflect.Array</selection>
\ No newline at end of file
diff --git a/idea/testData/shortenRefs/ClassNameConflictNoPackageImport.kt.after b/idea/testData/shortenRefs/ClassNameConflictNoPackageImport.kt.after
index 9e3f2c8c62a..271f9dd56b1 100644
--- a/idea/testData/shortenRefs/ClassNameConflictNoPackageImport.kt.after
+++ b/idea/testData/shortenRefs/ClassNameConflictNoPackageImport.kt.after
@@ -1,5 +1,3 @@
-// IMPORT_PACKAGES: false
-
 fun foo(array: Array<String>){}
 
 val v: java.lang.reflect.Array
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/kotlin/AbstractImportsTest.kt b/idea/tests/org/jetbrains/kotlin/AbstractImportsTest.kt
index 14528a588ca..56321a35db5 100644
--- a/idea/tests/org/jetbrains/kotlin/AbstractImportsTest.kt
+++ b/idea/tests/org/jetbrains/kotlin/AbstractImportsTest.kt
@@ -16,13 +16,11 @@
 
 package org.jetbrains.kotlin
 
-import com.intellij.codeInsight.CodeInsightSettings
 import com.intellij.psi.codeStyle.CodeStyleSettingsManager
 import com.intellij.psi.codeStyle.PackageEntry
-import org.jdom.Element
+import org.jetbrains.kotlin.idea.core.formatter.JetCodeStyleSettings
 import org.jetbrains.kotlin.idea.test.JetLightCodeInsightFixtureTestCase
 import org.jetbrains.kotlin.idea.test.JetWithJdkAndRuntimeLightProjectDescriptor
-import org.jetbrains.kotlin.idea.core.formatter.JetCodeStyleSettings
 import org.jetbrains.kotlin.idea.util.application.executeWriteCommand
 import org.jetbrains.kotlin.psi.JetFile
 import org.jetbrains.kotlin.test.InTextDirectivesUtils
@@ -58,7 +56,6 @@ public abstract class AbstractImportsTest : JetLightCodeInsightFixtureTestCase()
             val fileText = file.getText()
 
             codeStyleSettings.NAME_COUNT_TO_USE_STAR_IMPORT = InTextDirectivesUtils.getPrefixedInt(fileText, "// NAME_COUNT_TO_USE_STAR_IMPORT:") ?: nameCountToUseStarImportDefault
-            codeStyleSettings.IMPORT_PACKAGES = InTextDirectivesUtils.getPrefixedBoolean(fileText, "// IMPORT_PACKAGES:") ?: true
             codeStyleSettings.IMPORT_NESTED_CLASSES = InTextDirectivesUtils.getPrefixedBoolean(fileText, "// IMPORT_NESTED_CLASSES:") ?: false
 
             InTextDirectivesUtils.findLinesWithPrefixesRemoved(fileText, "// PACKAGE_TO_USE_STAR_IMPORTS:").forEach {