Ukrainian Government Imposes New Rules On Food Exports

tendata blogTrade Trends News

ten data blog02-11-2023

ukraine food export,ukraine food exports,ukraine food export rule

Ukraine will introduce mandatory registration of food export companies aimed at preventing abuses such as tax avoidance in the export of key agricultural products, the government said in a resolution published Wednesday.

Ukraine is one of the world's leading food producers and exporters, but officials estimate that as much as one-third of the commodities subsequently exported are purchased in cash and are not subject to the necessary taxes.

Another problem is the illegal concealment or delay of foreign currency proceeds from accounts outside Ukraine.

Under the new procedure, only companies registered with the State Land Registry, which are VAT taxpayers and do not have tax arrears or delays in returning foreign currency proceeds, will be allowed to engage in export operations.

The government said, "The purpose of the pilot project is to create conditions for preventing abuses and violations of the law in the export of goods."

It said the move would also "ensure the protection of the rights of agricultural entities that carry out economic activities without violating the law."

Ukraine has previously tried to tighten controls on food exports due to the urgent need for funds for the war against Russia, and in August this year a mechanism for controlling food exports was introduced in Ukraine's southern Odessa region, which has Black Sea and Danube ports.

The mechanism says ships can only be loaded after a preliminary analysis of the legality of the origin of the grain.

Ukraine's October grain exports almost halved year-on-year to 2.15 million tons from 4.22 million tons, government data showed.

Ukraine's grain exports in July-June 2023/24 totaled 8.9 million tons, down from 12.9 million tons in the same period in 2022/23.

The blockade of Ukrainian Black Sea ports and Russian attacks on Ukrainian ports on the Danube River were the main reasons for the drop in exports, traders and farmers' unions said.

Ukraine has traditionally shipped most of its exports through Black Sea ports.

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