KYIV (Reuters) -The introduction of a 10% duty on Ukrainian rapeseed and soybean exports has virtually halted Ukrainian exports due to a lack of clear government procedure on the documents needed for shipment, the country’s largest food producers union UAC said on Monday.
The Ukrainian parliament passed a bill in July imposing the duty on exports of the two oilseed crops with the aim of increasing domestic processing volumes and boosting revenue for a state budget strained by the war with Russia.
Ukraine’s grain traders union UGA and the UAC opposed the decision.
“As of September 5, exports have been completely halted.
With a 10% duty, it is possible (to export), but ships are waiting in ports because the shipments contain mixed products from both producers and traders,” UAC said in a statement.
Exports are not subject to duty if the producer sells its own rapeseed and soybean products.
“The problem lies in the lack of a clear procedure for documenting the origin of products grown by agricultural producers or cooperatives themselves,” the union said.
Ukraine is a major European producer of rapeseed and soybeans and has already harvested rapeseed, the export of which is most active in the first months of autumn.
(Reporting by Pavel Polityuk; Editing by Emelia Sithole-Matarise)
