In the first half of 2022, the State Customs Service allowed 56.9 million tonnes of goods (excluding pipeline transport) to be exported through the customs border of Ukraine, which is 44.5% less than in the first half of last year (101.1 million tonnes).
According to service’s website, the import of goods to Ukraine fell even more by 58.3%, to 17.8 million tonnes (from 42.7 million tonnes).
During the reporting period, pipelines moved 19.9 million tonnes, which is almost a third less than in the first half of 2021 (29.5 million tonnes).
The main reason for the drop in tonnage is the war and seaports blocked by Russia: the number of sea vessels allowed by the State Customs Service in January-June decreased by 64.3%, to 2,700 (from 7,600).
According to the ministry, the number of railway cars passed through the customs border of Ukraine in the first half of 2022 amounted to 800,300, which is 32% less than in the first half of 2021.
At the same time, the number of river vessels increased by 54.4%, from 6,800 to 10,500, and vehicles – by 9.8%, to 3.635 million.
The number of registered vehicles for import in the first half of the year amounted to 2.2 million, for export – 2.3 million, which almost corresponds to last year’s figures – 2.3 million each.
The State Customs Service also noted that the monetary turnover in the first half of 2022 decreased by 21%, to $48.03 billion, including exports by 24%, to $22.73 billion, and imports by 19%, to $25.3 billion.
At the same time, trade with the EU increased by 1%, to UAH 25.06 billion, including exports by 13%, to $13.41 billion, while imports decreased by 10%, to $11.65 billion.
Import of goods to Ukraine in % to the previous period in 2021 and 2022
SSC of Ukraine
Exports of goods in % to the previous period in 2021 and 2022
SSC of Ukraine
In response to a temporary, for a year, full trade liberalization by the EU, Ukraine is ready to abolish duties on European goods, said Deputy Minister of Economy – Trade Representative of Ukraine Taras Kachka.
“So that we can continue to talk about maintaining the zero-to-zero regime for longer than 12 months, we are ready to introduce such a mechanism now,” Kachka said during a meeting of the committee on finance, tax and customs policy on Thursday.
He added that Ukraine intends, first of all, to abolish duties on agricultural products from the EU.
The trade representative indicated that he sees the need to protect the Ukrainian market from goods from those countries with which there are no preferential terms of trade.
“The competition that we want to defend against is Turkey, China and other countries with which we do not have a preferential trade regime,” he said.
“Therefore, in order to work with the EU on a permanent customs-free trade regime, we want to take such a step. And in the context of our candidacy for the EU, this is very correct and appropriate,” Taras Kachka added.
“It is economically beneficial for us. The only industry where there is an economic imbalance is pork meat, but here it is more likely due to African swine fever, as well as cheese. We had a discussion on cheese whether the market should be protected. On the one hand, in In recent years, there has been an increase in cheese imports, mainly from Poland, but the total share of imported cheeses does not exceed 25%… There are no clear signs of harm for Ukrainian cheese producers,” Kachka explained.
On Thursday, the Verkhovna Rada Committee on Finance, Tax and Customs Policy recommended that the parliament adopt as a basis and in general government bill No. 7418 on the abolition of duties and VAT on imported goods, including cars, from July 1.
The draft document was supported by 19 committee members, four abstained.
In addition, the bill will provide for a provision allowing the government to provide mirror benefits for duties on foreign goods, where zero duties are set for similar Ukrainian items. We are talking about mutual recognition of the liberalization of the terms of trade, in particular in the EU.
As Yury Draganchuk, Deputy Minister of Finance, noted during the discussion, the government is developing a draft law on simplified customs clearance of cars through Diya.
As reported, bill No. 7418 amending the Tax Code and other laws on the return of all customs duties and VAT on imported goods, including cars. He also proposes to resume taxation, which was abolished by law No. 2142, for goods imported by single tax payers of the first and third groups, since on average the budget loses about UAH 3 billion in import duties on this benefit per month.
Ukraine expects zero rates for the export of goods to the UK to be set from June, First Deputy Prime Minister and Economy Minister Yulia Svyrydenko said after a meeting with British Secretary of State for International Trade Anne-Marie Trevelyan.
“We expect that already in early June, zero customs rates for the export of Ukrainian goods to the UK will begin to operate. This will allow Ukrainian exporters to increase the export of products,” the ministry’s press service quoted Svyrydenko as saying in a Telegram message on Friday.
“First of all, we are talking about such goods as flour, grain, dairy products, poultry meat and semi-finished products, honey, corn, sugar. As a result, we will attract additional volumes of foreign exchange earnings to the country, which will have a positive impact on macro-financial stability in the state,” the first deputy prime minister said.
During the meeting, the parties also discussed the situation with trade between the countries. In 2021, it has grown by 40%.
“In 2022, we can expect significant progress even despite the war,” the Ministry of Economy noted.
The Minister of Economy of Ukraine and the British Secretary of State for International Trade also discussed the possibility of British investments in Ukraine. Last year they reached $3 billion.
EXPORTS, GOODS, UK, ZERO RATES
