Foreign exchange law: how export prices are proposed to be determined

22/03/2023 09:30

On March 20, representatives of the Ministry of Agriculture, the Tax Committee of the Verkhovna Rada and the Ministry of Economy discussed with agricultural associations the procedure for determining and calculating minimum export prices for the implementation of the law on the application of the export support regime during the period of military and emergency conditions (No. 2881-IX dated January 12, 2023).

This is stated in the notification of the Ministry of Agrarian Policy and Food of Ukraine.

As noted, the law provides for amendments to the Tax Code of Ukraine and some other legislative acts, but in order for this mechanism to work, it is also necessary to adopt amendments to the Customs Code, which are currently being prepared for introduction by the secretariat of the Tax Committee of the VRU.

"Together with the exporters, we want to reach a consensus on the basis of which sources of information and how exactly the minimum price will be determined. With what periodicity and for what period such minimum prices will be set. How will the minimum price be determined, if the contract is concluded several months before the export is carried out," said the advisor to the Minister of Agrarian Policy and Food Mykhailo Sokolov.

In particular, during the discussion, representatives of the associations insisted that, by mistake, in Ukrainian realities, the quotations of world exchanges were used when determining the minimum prices. It is more correct to take information from relevant analytical agencies, in particular state ones, regarding export prices in Ukrainian ports or at other border crossing points.

Representatives of the association "Ukrainian Club of Agrarian Business" proposed to determine the minimum price by taking the average market price under CIF-port conditions without VAT at the rate of the National Bank of Ukraine and reducing it by 40%, subject to review at least once a month.

According to the results of the meeting, the parties agreed that in the near future the representatives of agricultural associations will argue their proposals, as well as present specific versions of the norms that will help solve the above-mentioned problems. Next, the Ministry of Agrarian Policy, the Secretariat of the Tax Committee, the Ministry of Economy and the National Bank will process all proposals. And as a result, the optimal solution will be offered.

On March 20, representatives of the Ministry of Agriculture, the Tax Committee of the Verkhovna Rada and the Ministry of Economy discussed with agricultural associations the procedure for determining and calculating minimum export prices for the implementation of the law on the application of the export support regime during the period of military and emergency conditions (No. 2881-IX dated January 12, 2023).
This is stated in the notification of the Ministry of Agrarian Policy and Food of Ukraine.
As noted, the law provides for amendments to the Tax Code of Ukraine and some other legislative acts, but in order for this mechanism to work, it is also necessary to adopt amendments to the Customs Code, which are currently being prepared for introduction by the secretariat of the Tax Committee of the VRU.
"Together with the exporters, we want to reach a consensus on the basis of which sources of information and how exactly the minimum price will be determined. With what periodicity and for what period such minimum prices will be set. How will the minimum price be determined, if the contract is concluded several months before the export is carried out," said the advisor to the Minister of Agrarian Policy and Food Mykhailo Sokolov.
In particular, during the discussion, representatives of the associations insisted that, by mistake, in Ukrainian realities, the quotations of world exchanges were used when determining the minimum prices. It is more correct to take information from relevant analytical agencies, in particular state ones, regarding export prices in Ukrainian ports or at other border crossing points.
Representatives of the association "Ukrainian Club of Agrarian Business" proposed to determine the minimum price by taking the average market price under CIF-port conditions without VAT at the rate of the National Bank of Ukraine and reducing it by 40%, subject to review at least once a month.
According to the results of the meeting, the parties agreed that in the near future the representatives of agricultural associations will argue their proposals, as well as present specific versions of the norms that will help solve the above-mentioned problems. Next, the Ministry of Agrarian Policy, the Secretariat of the Tax Committee, the Ministry of Economy and the National Bank will process all proposals. And as a result, the optimal solution will be offered.
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