Dairy, Retail

28/ 03/ 2013

As a result of EBA lobbying efforts the Ministry of Agrarian Policy and Food of Ukraine issued Order № 96 of 13 February 2013 (hereinafter – the Order) that reduces the tariffs for veterinary and plant protection services provided by the bodies and institutions of the State Veterinary and Phytosanitary Service of Ukraine. The Order entered into force on 26 March 2013. Background: on 31 October 2012 Ministry of Agrarian Policy and Food of Ukraine issued Order No 666 On the establishment of payment amounts for veterinary and plant protection services, provided by the bodies and institutions of SVPS” which, on the one hand, unified the relevant tariffs through the territory of Ukraine, but at the same time significantly raised the level of tariffs to be paid by companies. Order No 666 increased business financial burden from two to four-folds which might have consequently increased the price for finished goods. Therefore, following the entry of Order No 666 into force, the EBA immediately took steps aimed at reducing unjustified tariffs as well as addressing other negative implications. A number of meetings were held with representatives of the State Veterinary and Phytosanitary Service, Ministry of Agrarian Policy and Food, State Service of Ukraine on Regulatory Policy and Entrepreneurial Development, during which representatives of EBA Dairy, Food, Retail, Grain & Oilseed Committees discussed the necessity to review the tariffs and actively worked together with the authorities to bring the tariffs to justified levels. As a result of regular negotiations, consolidated efforts and constructive dialogue with SVPS, the tariffs have been reviewed and reduced following by the official publication and entry into force of the Order, which also cancelled the previous Order No 666. One of the key advantages of the new Order, apart from the reduced tariffs, is the payment for services provided by authorized (official) veterinary doctors at meat-processing, fish-processing and milk-processing enterprises as well as at enterprises of wholesale storage of non-processed foodstuffs of animal origin on an hourly basis. This provision is particularly important for the retail sector, where payment for veterinary services with correlation to volumes of controlled products (which are rather high) would be unreasonably expensive. The other benefits of the Order include, in particular, the reduction of tariffs for laboratory investigations conducted according to mandatory minimal list, by 44%; exclusion from the List of the service called “samples selection”; reduction of costs of veterinary and sanitary inspection of transport vehicles by 43.5%; veterinary and sanitary inspection of foodstuffs, feeds and other objects of state veterinary and sanitary control during export/import operations only within the extended veterinary and sanitary control. The EBA is welcoming the entry into force of the Order that significantly reduces the financial expenditures of companies for the relevant veterinary and other services and would like to thank all involved authorities for their constructive cooperation in solving this important issue.

Background: on 31 October 2012 Ministry of Agrarian Policy and Food of Ukraine issued Order No 666 “On the establishment of payment amounts for veterinary and plant protection services, provided by the bodies and institutions of SVPS” which, on the one hand, unified the relevant tariffs through the territory of Ukraine, but at the same time significantly raised the level of tariffs to be paid by companies. Order No 666 increased business financial burden from two to four-folds which might have consequently increased the price for finished goods.

Therefore, following the entry of Order No 666 into force, the EBA immediately took steps aimed at reducing unjustified tariffs as well as addressing other negative implications. A number of meetings were held with representatives of the State Veterinary and Phytosanitary Service, Ministry of Agrarian Policy and Food, State Service of Ukraine on Regulatory Policy and Entrepreneurial Development, during which representatives of EBA Dairy, Food, Retail, Grain & Oilseed Committees discussed the necessity to review the tariffs and actively worked together with the authorities to bring the tariffs to justified levels. As a result of regular negotiations, consolidated efforts and constructive dialogue with SVPS, the tariffs have been reviewed and reduced following by the official publication and entry into force of the Order, which also cancelled the previous Order No 666.

One of the key advantages of the new Order, apart from the reduced tariffs, is the payment for services provided by authorized (official) veterinary doctors at meat-processing, fish-processing and milk-processing enterprises as well as at enterprises of wholesale storage of non-processed foodstuffs of animal origin on an hourly basis. This provision is particularly important for the retail sector, where payment for veterinary services with correlation to volumes of controlled products (which are rather high) would be unreasonably expensive. The other benefits of the Order include, in particular, the reduction of tariffs for laboratory investigations conducted according to mandatory minimal list, by 44%; exclusion from the List of the service called “samples selection”; reduction of costs of veterinary and sanitary inspection of transport vehicles by 43.5%; veterinary and sanitary inspection of foodstuffs, feeds and other objects of state veterinary and sanitary control during export/import operations only within the extended veterinary and sanitary control.

The EBA is welcoming the entry into force of the Order that significantly reduces the financial expenditures of companies for the relevant veterinary and other services and would like to thank all involved authorities for their constructive cooperation in solving this important issue.

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