On August 20, 2024, the Cabinet of Ministers of Ukraine enacted the Resolution "On Approval of the Procedure for Establishing Minimum Permissible Export Prices for Certain Types of Goods," formulated by the Ministry of Agrarian Policy and Food of Ukraine.
Key Aspects of the Resolution:
- The Ministry of Agrarian Policy and Food of Ukraine is responsible for determining minimum export prices;
- The main legal basis for this regulation is Article 19 of the Law of Ukraine "On Foreign Economic Activity," complemented by international guidelines under INCOTERMS (International Rules for the Interpretation of Commercial Terms);
- The minimum export prices are to be set in US dollars per kilogram.
- Minimum export prices are established monthly, by the 10th of each month, or the following working day if the 10th is a public holiday. The determination of these prices will include the terms of delivery and the specific date.
- The export of goods is prohibited if the contract prices in foreign trade agreements are below the approved minimum permissible export prices.
- The minimum permissible export prices will be applied after the introduction of the export security regime.
- In line with the Resolution, minimum permissible export prices will be established for specific goods categorized under the relevant codes as per the UKT ZED:
|
Code under UKT ZED |
Name of Goods |
|
0409 00 00 00 |
honey |
|
0802 31 00 00 |
nuts in shell |
|
0802 32 00 00 |
nuts without shell |
|
1001 |
wheat |
|
1002 |
rye |
|
1003 |
barley |
|
1004 |
oats |
|
1005 |
corn |
|
1201 |
soybeans |
|
1205 |
rapeseed |
|
1206 00 |
sunflower seeds |
|
1507 |
soybean oil |
|
1512 |
sunflower oil |
|
1514 |
rapeseed oil |
|
2306 |
oil cake |
The adoption of this Resolution aims to curtail opportunities for malfeasance in the export of agricultural products, particularly grains and oilseeds. Additionally, it is expected to help regulate Ukraine's balance of payments and increase tax revenues for the state budget.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.