The Government approved the procedure for approving minimum export prices
The Cabinet of Ministers of Ukraine adopted Resolution No. 944 dated August 20, 2024 "On Approval of the Procedure for Approval of Minimum Export Prices for Certain Types of Goods". The document was prepared by the Ministry of Agrarian Policy and Food of Ukraine.
According to the Resolution, the Ministry of Agrarian Policy will determine the minimum allowable export prices for certain types of goods, taking into account the terms of supply in accordance with the International Rules for the Interpretation of Commercial Terms.
The purpose of the Resolution is to establish a mechanism for the Ministry of Agrarian Policy to determine minimum export prices for certain types of goods, as provided for in Article 19 of the Law of Ukraine "On Foreign Economic Activity". The minimum export prices will be set in US dollars per kilogram.
According to the Procedure, the minimum export prices will be determined for certain types of goods classified under the relevant codes according to the Ukrainian Classification of Goods for Foreign Economic Activity, namely
- honey (code according to UCG FEA 0409 00 00 00)
- nuts in their shells (code according to UKTZED 0802 31 00 00)
- nuts without shells (code according to UKTZED 0802 32 00 00)
- wheat (code according to UKTZED 1001)
- rye (code according to UKTZED 1002)
- barley (code according to UKTZED 1003)
- oats (code according to UKTZED 1004)
- corn (code according to UKTZED 1005)
- soybeans (code according to UKTZED 1201)
- rapeseed (code according to UKTZED 1205)
- sunflower seeds (code according to UKTZED 1206 00)
- soybean oil (code according to UKTZED 1507)
- sunflower oil (code according to UKTZED 1512)
- Rapeseed oil (code according to UKTZED 1514)
- oil cake (code according to UKTZED 2306).
The Ministry of Agrarian Policy determines the minimum export prices for each type of commodity, taking into account the terms of supply, and by the 10th day of each month, and if such day falls on a weekend, the next business day, ensures their approval by issuing a relevant decision (order).
Minimum export prices shall be posted on the official website of the Ministry of Agrarian Policy no later than the next business day after the adoption of the order and shall be applied from the day following the day of their publication on the official website of the Ministry of Agrarian Policy.
It is prohibited to export certain types of goods if the contractual (foreign trade) prices stipulated in the foreign economic agreement are lower than the minimum export prices approved by the Ministry of Agrarian Policy.
The minimum export prices will be applied after the introduction of the export security regime.
The adoption of the Resolution will help to minimize opportunities for abuse in the course of foreign economic operations involving the export of certain types of agricultural products, in particular grains and oilseeds, to regulate the balance of payments of Ukraine, and to increase tax revenues to the state budget.
The Resolution shall enter into force 10 days after its publication.
Buhgalter 911 notes that the content of the author's materials may not coincide with the policy and opinion of the editorial team. The authors of the published materials include not only representatives of the editorial team.
The information presented in a particular publication reflects the position of the author. The editorial team does not interfere with the author's materials, does not edit the texts, and is therefore not responsible for their content.