On 3 October, the Cabinet of Ministers of Ukraine adopted a procedure allowing agricultural producers and agricultural cooperatives to export their own soybeans and rapeseed without paying 10% export duties. The document confirming the right to such a benefit will be an expert opinion on the origin of the products issued by the Ukrainian Chamber of Commerce and Industry (UCCI) or its regional branches.

Only agricultural producers exporting their own harvest and cooperatives supplying products grown by their members will be eligible for the benefit. The rule does not apply to exports through intermediary agreements (commission, consignment, agency agreements), as well as to cooperatives established or registered after the entry into force of the law providing for such a benefit.

According to the government decree, in order to obtain a conclusion from the CCI, farmers must register their cultivated areas and harvest in the State Agricultural Register (DAR), create an electronic account on the chamber's website, upload the necessary documents and submit an application. The review will take from one to two days.

Restrictions have also been introduced: the declared yield cannot exceed 3.5 tonnes per hectare, and the volume of production must correspond to the actual harvest. This means that the certificate cannot cover larger batches than those actually harvested. Documents for customs clearance will be submitted after the harvest, although farmers and cooperatives have the right to enter into forward contracts.

To prevent abuse, the Ministry of Economy has been instructed to monitor the data contained in the CCI's conclusions, comparing them with the DAR's information and actual exports. The State Customs Service will report monthly on the volumes of products exported at a preferential rate, and the CCI must inform the government about the certificates issued and avoid duplication of documents for the same land plots.

The resolution comes into force on the day of its publication. At the same time, the adopted procedure does not regulate the issue of refunding duties already paid. As Deputy Minister of Economy Taras Vysotsky explained, this will only be possible after amendments to the current legislation, which are currently being considered by the Verkhovna Rada, are made.

Please refer to the link to the official document for full details: https://www.kmu.gov.ua/npas/deiaki-pytannia-pidtverdzhennia-vlasnoho-vyroshchuvannia-okremykh-vydiv-silskohospodarsk-k1256

Disclaimer
All Gafta Circulars and Notices are provided to Members purely for the purposes of information. We have not taken any steps to verify the accuracy of the information provided and, accordingly, Members must obtain their own independent professional advice as to its content and effect. We cannot accept any liability, howsoever arising, for any loss or damage which may be caused by any reliance on any information contained in a Gafta Circular or Notice.