MINIMUM PERMISSIBLE EXPORT PRICES FOR SPECIFIC GOODS

28/08/2024

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.

 

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