American Chamber of Commerce in Ukraine is providing viewpoint and actions.
On July 23rd the State Customs Service issued the Letter that obliged all grain exporters to conduct additional grain testing in a Kyiv laboratory.
The stated reason was increasing of the control over export of grain and specification of grain sort and quality.
On July 27th the above-mentioned decision of the Customs Service was cancelled but later on July 28th the State Customs Service issued another Letter, which obliges Regional Customs to recheck the quality of the grain in the Institutes of Court Expertise.
Then the Customs Service abolished Letter of July 28th and issued a new Letterdated August 2nd which introduced even more problems for grain export since the expertise should be done by Kyiv Institute of Court Expertise.
Therefore, the Chamber addressed Mykola Azarov, Prime Minister of Ukraine, Sergiy Tigipko, Vice Prime Minister and Mr. Mykola Prysiazhniuk, Minister of Agricultural Policy, with a Letter regarding the situation that the State Customs Service of Ukraine has suspended the customs registration and departure of ships with grain from Ukrainian ports.
In addition, the customs officers would not allow export of wheat from the terminal.
The Chamber has urged the state officials to prevent the introduction of non-tariff barriers to trade that would negatively impact farmers and traders in case of grain export delay or ban and can put the Ukrainian government in breach of their WTO commitments.
On August 19ththe American Chamber of Commerce in Ukraine together with our partner, the U.S.- Ukraine Business Council (USUBC), addressed the issue of grain export restrictions to President Yanukovych and Prime Minister Azarov underlining that these actions will hurt the Ukrainian State in the form of lost taxes and problems with foreign credits, failures for Ukrainian companies seeking IPOs and foreign partnerships, lost revenues for Ukrainian farmers etc.
It should not be forgotten that the growing role of Ukraine as Eurasia’s grain basket is bringing substantial benefits to this country and supporting its international and investment profile.
Unjustified and restrictive actions by Government authorities will damage the reputation of Ukraine as a reliable international trading partner and as a country in which to invest.
Continuing to be actively engaged in the advocacy and lobbying activities regarding the recent actions of the Government agencies on grain export restriction the Chamber is utilizing different venues and policy opportunities.
The Chamber will continue advocating for efficient and fair rules promoting market oriented economy as an essential part influencing Ukraine’s attractiveness for investments and overall competitiveness.
The Chamber would like to thank all Chamber Agricultural Committee Members that were involved into this activity preparing comprehensive and professional statement with clear arguments and propositions.
