Ukraine. Duty on sunflower exports will be tied to market prices

UkrAgroConsult

At its meeting on January 12, the Verkhovna Rada of Ukraine adopted as a basis a draft law that changes the conditions for calculating duties on the export of oilseeds, live livestock and raw leather from Ukraine.

According to the explanatory note to the document, currently, export of sunflower seeds is subject to ad valorem export duty rates. The tax base for such goods is their customs value, that is, the price of the goods specified in the invoice or proforma invoice.

“According to the statistics of the State Customs Service, more than 70% of goods subject to ad valorem export duty rates were exported outside the customs territory of Ukraine at a customs value that is lower than the price of the goods set on the foreign market for similar goods.

Currently, the legislation of Ukraine does not allow the customs authorities to control the correctness of the customs value of goods exported outside the customs territory of Ukraine under the customs regime of export, which in many cases leads to understatement of the tax base for export duties and failure to fully pay the export duty to the State Budget of Ukraine”, – the document explains.

Thus, the proposed changes will make the control of customs authorities over the correctness of the customs value of goods exported outside the customs territory of Ukraine more effective.

“The draft law No. 8274 will allow taxing any raw materials based on their market value, and not taking into account the underestimated value provided by “black exporters”, – commented the Chairman of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy Danylo Hetmantsev.

For reference: The Law “On the rates of export (export) duty on seeds of certain types of oilseeds” regulates the export duty on flax, sunflower and camelina seeds. The Law “On export (export) duty on live cattle and leather raw materials” of 07.05.1996 №180/96-ВР established duties on export of cattle, sheep and animal skins.

Tags: export, export duty, Ukraine, sunflower