Grain & Oilseeds
Since the beginning of this year the EU-Ukraine Association Agreement (hereinafter – the Association Agreement) opened new opportunities for export of domestic agrarian products. At the same time certain regulatory changes have led to application of new rules for granting EUR.1 certificate.
In particular, before 1 January 2016, EUR.1 certificate was issued by the Ukrainian chambers of commerce, while since the beginning of 2016 the State Fiscal Service of Ukraine (SFS) was authorized todo it. Due to different approach of customs authorities to the list of documents certifying the origin of products, grain and oilseed exporters suffered problems with obtaining EUR.1 certificate. The necessity to collect additional documents for certifying the origin of products has led to the increase of vessel demurrage and, consequently, additional financial burden for exporters. Such situation is unacceptable taking into account decades-long minimal prices for agricultural products.
Due to common efforts of the SFS, the Ministry of Agrarian Policy and business community, in particular, the EBA Grain & Oilseed Committee, the SFS recommended to use a list of documents certifying the origin of vegetable oil, grain and its processing products, which can be a basis for granting EUR.1 certificate, in particular:
- Grain exporter certificate;
- Grain exporter/manufacturer certificate;
- Oil exporter certificate;
- Grain processing products exporter certificate.
Procedure for Preparing and Granting EUR.1 Certificate by the Customs Service according to the Association Agreement between the European Union and the European Atomic Energy Community and Their Member States, of the One Part, and Ukraine, of the Other Part (the Procedure) was approved by the Order of the Ministry of Finance of Ukraine No.1142 dated 18 November 2014.
According to the Procedure, EUR.1 certificate is a document intended for the application of tariff preferences in the EU Member States for Ukrainian commodities.
In order to unify the list of documents necessary for obtaining EUR.1 certificate the Letter of the Ministry of Agrarian Policy was submitted to SFS regional customs authorities by SFS Letter No. 2236/7/99-99-25-02-03-17 dated 25 January 2016.