On 28 November 2012 the Cabinet of Ministers of Ukraine published the Resolution “On Amendments and Termination of Certain Resolutions of the Cabinet of Ministers of Ukraine regarding the Registration of Foreign Economic Contracts” No 1079 dated 31 October 2012, thus, completely abolishing mandatory registration of grain export contracts at the Agrarian Commodity Exchange.
Background: On 13 December 2010 the Cabinet of Ministers of Ukraine adopted the Resolution “On Certain Issues regarding Conclusion and Registration of Foreign Economic Contracts” No 1254 according to which starting from 1 February 2011 the services on conclusion and registration of foreign economic contracts for the export of agricultural products were rendered by the Agrarian Commodity Exchange and other commodity exchanges certified as required by law.
According to the Law of Ukraine “On State Support of the Agricultural Sector of Ukraine” No 1877 any entity engaged in foreign economic activity being an owner of agricultural products (in particular, grain and oilseeds as well as products thereof) and carrying out its exports does not have any obligation to make customs clearance of exports on the basis of foreign economic contracts singed and registered at the Agrarian Commodity Exchange and other commodity exchanges. Consequently, imposing any administrative restrictions with regard to the unrestricted and free movement of agricultural products for export shall be deemed invalid. Therefore, touting the agricultural product owner with certain service suppliers shall be deemed illegal.
The EBA Grain and Oilseed Committee bringing together the leading grain manufacturers and exporters was repeatedly asking the Government of Ukraine to abolish mandatory registration of foreign economic contracts during the sale of agricultural products at the Agrarian Commodity Exchange, as the role of registration is to carry out the state monitoring of the grain and oilseed market. However, this function can be attributed to the specialised state institutions.
The European Business Association is happy about the decision to cancel mandatory registration of foreign economic contracts during the sale of agricultural products published on the official web page of the Cabinet of Ministers of Ukraine on 28 November 2012. The EBA Grain and Oilseed Committee believes that such actions of the Government allow releasing the excessive burden imposed upon the grain manufacturers and exporters as well as facilitating the improvement of the business climate in Ukraine.
We are happy to share this success with our members who have been waiting for the good news re abolition of the abovementioned regulation.