Agrochemicals, Grain and Oilseeds

11/ 02/ 2015

Following the joint efforts of the Cabinet of Ministers of Ukraine (CMU), European Business Association and other NGOs, on 28 January 2015 the Cabinet of Ministers of Ukraine adopted Resolution Certain Issues for Deregulation of Economic Activity No.42 (hereinafter – the Resolution) that should significantly improve the business climate in Ukraine, increase the investment attractiveness and harmonize the Ukrainian regulatory framework with the EU regulations.

This CMU Resolution will have effect on a number of current issues. In particular, it settles the following problems in agriculture:

Improving procedure for state registration of plant protection products (PPPs)

PPPs are products aimed at reduction of crop losses and prevention of plants deterioration. Application of high-quality PPPs in agriculture has a huge impact on yield. At the same time, application of low-grade or counterfeited PPPs may pose risk to human health and environment. Currently, in order to import PPPs to Ukraine a manufacturer should pass multistage process of market access that, inter alia, stipulates state trials and registration of pesticides. State trials of pesticides and agrochemicals and their registration can become an effective mechanism of state surveillance over the quality and safety of PPPs and food security in general. Therefore, amendments to the Procedure for State Trials, State Registration and Re-Registration, Publication Lists of Pesticides and Agrochemicals Authorised for Use in Ukraine, approved by the Governmental Resolution No.295 dated 4 March 1996, should increase the level of intellectual property rights protection for manufacturers of original innovative PPPs and introduce more fair and transparent terms for PPPs registration.

Reducing term for preparation and granting quarantine and phytosanitary certificates

The Law of Ukraine On Plant Quarantine No.3348-XII dated 30 June 1993 entitles the state phytosanitary inspector to take decision on granting or refusal to grant quarantine and phytosanitary certificate within five days. Five days is an extremely large term for consideration of documents. The company waiting for inspector’s decision for five days bears losses and pays heavy fines for demurrage of vessels. For example, according to the EBA experts, one day of demurrage for 50 thousand tons vessels can cost up to 20 thousand USD. EBA is supportive of the initiative set in the Resolution – reducing term for preparation and granting quarantine and phytosanitary certificates within 24 hours after the vessel is loaded.

Cancellation of mandatory requirement for obtaining a quarantine certificate for grain and oilseeds for inland transportation

Over the last years the procedure for granting quarantine and phytosanitary certificates for grain and oilseed in case of inland transportation was substantially deteriorating business climate in the agricultural sector of economy. Excessive administrative regulation in the plant quarantine sector was substantially deteriorating dispatch of agricultural products to sea ports, their loading to elevators and transportation. It has led to increase of logistics expense, reduction of profit for agricultural enterprises, as well as loss of competitiveness for Ukrainian grain on the world markets. EBA supported the initiative to abolish mandatory requirement for obtaining a quarantine certificate for grain and oilseeds for internal traffic and establishing the principle of voluntary procedure for granting quarantine certificate for grain and oilseeds in case of inland transportation set by the Resolution. These changes are important step towards deregulation of grain market, liberalization of business environment and establishment of favourable business climate in agricultural sector.

The European Business Association would like to express our gratitude to the Ministry of Economic Development and Trade of Ukraine, Ministry of Agrarian Policy and Food of Ukraine, NGO “Easy Business” and all EBA member companies participated in these initiatives and wish to share this success with the business community.

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