Ukraine adopted a draft law that will complicate the export of oil crops

The Verkhovna Rada approved in the second reading draft law No. 8274, which will significantly complicate the export of secondary raw materials from Ukraine, artificially lowering the amount of the duty.

Parliamentarians by 250 votes approved the draft law on amendments to Chapter XXI “Final and Transitional Provisions” of the Customs Code of Ukraine regarding the establishment of temporary features for determining the customs value of goods exported outside the customs territory of Ukraine (No. 8274).

“It will become much more difficult to export raw materials from Ukraine, artificially underestimating the size of the customs duty. Law 8274 approved by the Verkhovna Rada in the 2nd reading, in which I am a co-author, will help with this,” said Dmytro Kysylevsky, Deputy Chairman of the Verkhovna Rada Committee on Economic Development.

As Latifundist notes, the arithmetic mean value of price quotations is calculated by the central executive body that implements the state policy of economic development, in US dollars. The list of international commodity exchanges for settlement is approved by the Cabinet of Ministers.

“The law stipulates that for those types of raw materials for which export duties are set in percentages, the amount of the duty will be determined on the basis of quotations for the corresponding goods on international commodity exchanges,” the deputy wrote.

As Kisylevsky emphasized, now “dishonest dealers indicate in the customs documents the lower cost of raw materials, sometimes by 10 times.” He reminded that the percentage rates of export duty in Ukraine are currently set for oilseeds, non-ferrous metal scrap and leather raw materials. According to available data, more than 70% of such goods are exported at reduced prices.

“Now, if the value indicated in the documents is lower than the quotations on international exchanges, the price of the exchange will be used to calculate the duty, and not what was “drawn” in the customs documents. This rule will be in effect until the end of 2025. And if it shows its effectiveness, I will offer to make it indefinite,” the parliamentarian emphasized.