fbpx
Size of letters 1x
Site color
Image
Additionally
Line height
Letter spacing
Font
Embedded items (videos, maps, etc.)
 

Imports of food and raw materials of animal origin to Ukraine may be suspended

06/ 01/ 2022
  This conclusion was made by experts of the European Business Association, analyzing the draft order of the Ministry of Economy On approval of the Procedure for recognizing the equivalence of state control of the exporting country, published for discussion on the official website of the Ministry of Economy on December 9, 2021. In order to import food products of animal origin to Ukraine from any country, a plant or factory for the production of such products must be entered in the Ukrainian register of certified facilities. To this end, the Ukrainian competent authorities shall inspect such production and issue a permit for the import of products from it. Another option is for Ukraine to recognize the control system for animal products that exist in the country where the production is located, as equivalent to the Ukrainian one. This automatically enables the import of products from all capacities that are registered in this country. By the order of the Ministry of Agrarian Policy №118 of April 1, 2014, the entire control system of the European Union was recognized as corresponding to the Ukrainian one. This allowed Ukrainian businesses to easily and without obstacles to importing products and raw materials of animal origin from the EU and facilities of third countries that are accredited under EU rules. At the moment, the reason for stopping imports may be the intention of the Ministry of Economic Development to cancel the order of the Ministry of Agrarian Policy №118, which is provided by one of the provisions of the new document. However, it is concerning Order №118 that foodstuffs and fodder produced abroad are currently imported into Ukraine. At the same time, the procedure for recognizing equivalence provided in the new document to replace Order 118 is very complicated. Therefore, it is objectively difficult to count on the prompt recognition of the equivalence of other states. Thus, getting guarantees from external partners, particularly the EU, that their control system complies with Ukrainian law can be a significant obstacle. In practice, foreign bodies need to study the control system in Ukraine, compare it with their control system, etc. Therefore, the issue may be slowed down for a very long time. And the new draft order does not have a transitional period for its provisions to enter into force. That is, if it is adopted in January, it will come into force in January. The suspension of imports of significant amounts of food and feed will lead to food shortages and significant losses of government revenues from taxes and duties related to the import and subsequent sale of these products. The result may be the shutdown of some Ukrainian industries and restaurants that work with imported raw materials. Moreover, the adoption of the draft Order in its current version, according to the EBA experts, will harm Ukraines export potential. Therefore, the EBA does not support the draft Order in the proposed version and appeals to the Temporary Special Commission of the Verkhovna Rada on Investor Protection, the Prime Minister of Ukraine, and the State Regulatory Service to facilitate changes in the transition period - at least 3 years or until equivalence recognition of the EU state control system and allow the import of products from countries and facilities from which products have been imported (shipped) to the customs territory of Ukraine for 5 years, provided that the Ukrainian authority has not decided to ban the import of products originating from such facilities. Moreover, businesses are appealing to the Verkhovna Rada Committee on Agrarian and Land Policy with a proposal to hold Committee hearings to discuss all possible consequences of adopting the document. We very much hope that the voice of transparent business and the biggest taxpayers will be heard!

This conclusion was made by experts of the European Business Association, analyzing the draft order of the Ministry of Economy “On approval of the Procedure for recognizing the equivalence of state control of the exporting country”, published for discussion on the official website of the Ministry of Economy on December 9, 2021.

In order to import food products of animal origin to Ukraine from any country, a plant or factory for the production of such products must be entered in the Ukrainian register of certified facilities. To this end, the Ukrainian competent authorities shall inspect such production and issue a permit for the import of products from it.

Another option is for Ukraine to recognize the control system for animal products that exist in the country where the production is located, as equivalent to the Ukrainian one. This automatically enables the import of products from all capacities that are registered in this country. By the order of the Ministry of Agrarian Policy №118 of April 1, 2014, the entire control system of the European Union was recognized as corresponding to the Ukrainian one. This allowed Ukrainian businesses to easily and without obstacles to importing products and raw materials of animal origin from the EU and facilities of third countries that are accredited under EU rules.

At the moment, the reason for stopping imports may be the intention of the Ministry of Economic Development to cancel the order of the Ministry of Agrarian Policy №118, which is provided by one of the provisions of the new document. However, it is concerning Order №118 that foodstuffs and fodder produced abroad are currently imported into Ukraine. At the same time, the procedure for recognizing equivalence provided in the new document to replace Order 118 is very complicated. Therefore, it is objectively difficult to count on the prompt recognition of the equivalence of other states. Thus, getting guarantees from external partners, particularly the EU, that their control system complies with Ukrainian law can be a significant obstacle. In practice, foreign bodies need to study the control system in Ukraine, compare it with their control system, etc. Therefore, the issue may be “slowed down” for a very long time. And the new draft order does not have a transitional period for its provisions to enter into force. That is, if it is adopted in January, it will come into force in January.

The suspension of imports of significant amounts of food and feed will lead to food shortages and significant losses of government revenues from taxes and duties related to the import and subsequent sale of these products. The result may be the shutdown of some Ukrainian industries and restaurants that work with imported raw materials. Moreover, the adoption of the draft Order in its current version, according to the EBA experts, will harm Ukraine’s export potential.

Therefore, the EBA does not support the draft Order in the proposed version and appeals to the Temporary Special Commission of the Verkhovna Rada on Investor Protection, the Prime Minister of Ukraine, and the State Regulatory Service to facilitate changes in the transition period – at least 3 years or until equivalence recognition of the EU state control system and allow the import of products from countries and facilities from which products have been imported (shipped) to the customs territory of Ukraine for 5 years, provided that the Ukrainian authority has not decided to ban the import of products originating from such facilities. Moreover, businesses are appealing to the Verkhovna Rada Committee on Agrarian and Land Policy with a proposal to hold Committee hearings to discuss all possible consequences of adopting the document. We very much hope that the voice of transparent business and the biggest taxpayers will be heard!

If you have found a spelling error, please, notify us by selecting that text and pressing Ctrl+Enter.

Start
in the Telegram bot
Read articles. Share in social networks
0 Shares

Spelling error report

The following text will be sent to our editors: