Ukraine institutes export guarantee procedure for agricultural goods to counter shadow market
MOSCOW. Oct 30 (Interfax) - The Ukrainian government has instituted an export guarantee procedure during martial law's period of validity, to be applied to exports of a number of agricultural products, among them grains, vegetable oils, press cake, nuts, and honey, Ukrainian media reported citing the Economy Ministry.
"According to the Economic Security Bureau and the State Tax Service, exports of more than 5 million tonnes of agricultural products worth over UAH 50 billion in less than eight months of this year involved indications that foreign exchange earnings might not be repatriated. Therefore, in order to minimize schemes for violating Ukrainian law during exports of certain types of goods, bring a significant part of the economy out of the shadows, and increase state budget revenues, the government is introducing an export guarantee procedure for certain categories of agricultural products," Deputy Economy Minister and Trade Representative Taras Kachka was quoted as saying.
The export guarantee procedure stipulates that goods can be exported exclusively by registered VAT payers, the ministry said.
In addition, minimum export prices will be set for goods subject to export guarantee, and the difference between the actual and customs value of goods cannot be negative.
The directive stipulates that the National Bank, the State Tax Service, and the State Customs Service shall share information to monitor and control compliance by exporters.
The government also determined principles based on which tax invoices must be filled up and registered with the Unified Register of Tax Invoices.
The export guarantee procedure will apply to products listed in Article 192 of the law On International Economic Activities, particularly honey, nuts, wheat and meslin (a mixture of wheat and rye), rye, barley, oats, corn, soybeans, rapeseeds, sunflower seeds, sunflower, soy and rapeseed oils, and press cakes.
The directive will take effect 30 days after all regulations essential for enforcing the law On Amending the Ukrainian Tax Code and Other Ukrainian Laws on Specifics of Exports of Certain Products During Martial Law are adjusted and enacted and after the possibility of processing information in information and communication systems of central government bodies is ensured.
