Ukrainian Government Imposed the Quota System on Grain Export

On 4 October 2010 the Cabinet of Ministers of Ukraine adopted the Resolution No.938 ‘On Establishment of Quota Volumes for Separate Types of Agricultural Products whose Export is Subject to Licensing till 31 December 2010, and Approval of the Procedure for Issue of Licenses for Export of Separate Types of Agricultural Products and Distribution of Quotas’.

 

The name of the Resolution speaks for itself. Quotas till 31 December 2010 have been established in the following volume: - corn – 2 mln tons; - wheat and wheat-rye mixture – meslin, emmer wheat – 0.5 mln tons; - barley – 0.2 mln tons; - buckwheat and rye – 1 000 tons each.

 

 This Resolution approved the Procedure for issue of licenses for export of separate types of agricultural products and distribution of quotas.  

 

Pursuant to the Procedure the recommendations on quotas distribution shall be made by the commission on the matters related to consideration of the applications on issue of the licenses on export of separate agricultural products and quotas distribution to be formed by the Ministry of Economy of Ukraine.  

 

When the Ministry of Economy of Ukraine publishes on its official site the data on beginning of the applications registration the temporary window shall be open within 15 days to file the applications by the business entities in accordance with a set form approved by the Ministry of Economy of Ukraine. Besides, the business entity shall file the conclusion of the Ministry of Agrarian Policy of Ukraine on availability of the agricultural products specified in the application and possibilities to export such products.

 

Upon termination of said 15 days term for acceptance of the applications, the Ministry of Economy of Ukraine shall transfer the applications to said commission. The commission shall distribute the quotas pro rata to the volumes determined by the Ministry of Economy of Ukraine. Non-distributed quotas are subject to distribution under the same procedure.

 

 The decisions of the commission shall be published on the official site of the Ministry of Economy of Ukraine. The Licenses on export are to be issued by the Ministry of Economy of Ukraine considering the recommendations of the commission and in case the commission decides to refuse to issue a license, the written notice with indications of the failure cause shall be sent to the business entity within 7 days after its acceptance. The State Customs Service of Ukraine receives from the Ministry of Economy the data on issue of licenses on agricultural products export for the business entities till the 10th day of each month and up to the 20th day of a month shall file to the Ministry of Economy the data on export of separate types of said products.

 

This is the procedure for quotas distribution and monitoring of their fulfillment.

 

Artem Skorobogatov

Senior lawyer mailto:skorobogatov@interlegal.com.ua}skorobogatov@interlegal.com.ua Vyacheslav Lebedev  

Consultant mailto:lebedev@interlegal.com.ua}lebedev@interlegal.com.ua