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Export of agricultural goods purchased from the population. How to confirm the origin?

In order to take advantage of free trade, exporters need to confirm the Ukrainian origin of the goods. It's pretty easy to do for those who have their own fields. And what about traders who buy products from the public?

On July 17, 2017, the EU Council supported the granting of additional trade preferences to Ukraine. The EU has given Ukraine additional quotas for duty-free trade in some food products, as well as removed import duties on a number of industrial goods.

This decision is another signal for Ukrainian entrepreneurs to intensify trade with the EU - a large and solvent market.

Let me remind you that since 2014 Ukraine has been trading with the EU under preferential rules. Initially, we used the regime of autonomous preferences, and from 01.01.2016 we trade within the Association Agreement. The Association Agreement stipulates that the European Union is gradually reducing import duty rates on Ukrainian goods.

The defining condition of duty-free trade is confirmation of the Ukrainian origin of the goods. The origin is confirmed by a certificate of carriage of goods EUR.1 issued by the customs. In some cases, the origin of the goods is also confirmed by the "invoice declaration", but in this article we will focus only on the certificate EUR.1.

Goods are of Ukrainian origin if they are (1) entirely manufactured on the territory of Ukraine or (2) obtained from materials that have undergone sufficient processing in Ukraine. For agricultural goods in most cases it is necessary to confirm the fact of production in Ukraine.

To obtain the EUR.1 certificate, the exporter must provide the customs with supporting documents. The Association Agreement contains a very generalized description of such documents (Article 28 of Protocol I to the Agreement). The exporter forms a specific package of documents depending on the product, the criteria of its origin and the specifics of its own production.

If the exporter independently produces goods from its own raw materials or has fields for growing agricultural crops, it usually does not have much difficulty to confirm the origin of the goods. However, what to do to entrepreneurs who buy agricultural products from the population and already export them as part of a larger party?

Grain traders and oil producers have faced a similar problem.

With the assistance of the Ukrainian Grain Association and the Ministry of Agrarian Policy and Food, the State Fiscal Service of Ukraine allowed the use of generalized forms of documents to confirm the origin of oil, grain and products of its processing (Letter of the SFS from 25.01.2016 №2236 / 7 / 99-99-25 -02-03-17).

The SFS agreed on four forms of documents:

  1. Grain exporter help.
  2. Certificate of exporter / producer of grain.
  3. Oil exporter help.
  4. Reference of the exporter of grain processing products.

The essence of these documents is quite simple - the company must provide information about its suppliers, contract numbers and the amount of grain (seeds) purchased under these contracts.

The exporter declares that this grain (seed) is fully grown and harvested in Ukraine and assumes responsibility for the accuracy of these data.

Exporting companies that purchase agricultural products from the public can also use similar exporter certificates. They need to compile a register of sellers that would allow them to identify their suppliers.

The documents will be assessed by customs before the issuance of the EUR.1 certificate. In this case, the decision is always made subjectively. Therefore, I recommend that you clarify the requirements for these documents with the inspector of the customs office where you plan to file a customs declaration.

If the company constantly exports goods purchased from the public, it is possible to agree on the requirements of customs for documents of origin by obtaining individual customs advice. The procedure for obtaining these consultations is defined in Article 21 of the Customs Code of Ukraine. Remember that the consultation period is 30 calendar days. In addition, it is not always possible to get answers to all questions from the first time. The reasons for this may be different: incorrectly / inaccurately formulated question, customs does not want to give a specific answer. Therefore, take care of the consultation in advance and formulate the correct question.

The article is published on the site Pro Agro

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