Changes in the legal regulation of the agricultural sector under martial law

Today’s military realities have compelled the Cabinet of Ministers of Ukraine (the “CMU“) to make a number of changes to the legislation governing the agricultural sector, including:

  1. Establishment of export licenses and bans for certain products

On March 5, 2022, the CMU adopted Resolution No. 207 “On Amendments to Annexes 1 and 5 to Resolution of the Cabinet of Ministers of Ukraine of December 29, 2021 No. 1424”.

The resolution imposes a ban on the export of certain agricultural products, namely: rye, oats, buckwheat, millet, sugar, salt (fit for human consumption), live cattle, meat and edible meat products of livestock (salted, in brine, etc.). Later, on March 12, 2022, the government added mineral and chemical fertilizers (nitrogen, phosphorus, potassium and others) to the list of goods prohibited from export.

Export licenses for agricultural products such as wheat, a mixture of wheat and rye (meslin), maize, chicken meat and eggs, and sunflower oil were also introduced. Since there are no quotas for these products, licensing is automatic. The licensing procedure for these goods is currently simplified from that approved by Order of the Ministry of Economy of Ukraine dated September 9, 2009 No. 991. Thus, to obtain a license, a subject of foreign economic activity must submit to the Ministry of Economy (e-mail [email protected] and [email protected]):

The processing time for the request should not exceed 24 hours. In fact, this means the automatic issuance of a free license for 24 hours, provided that the Ministry of Economy is informed in the prescribed manner.

  1. Abolition of additional seed certification procedures

According to official CMU information, by Order No. 132 of March 1, 2022, the Ministry of Agrarian Policy and Food of Ukraine abolished additional procedures for certification of seed material during martial law.

Therefore, the National Center for Certification and Examination of Agricultural Products must guarantee:

  • a smooth process for the sale of seeds and planting material by the seed and nursery production subjects of the 2021 harvest and the remains of previous years necessary for sowing, without additional certification procedures;
  • recognition of foreign certificates for imported seeds without additional certification procedures.

We recall that before the introduction of martial law, the legislation provided for the need to apply additional certification procedures to imported seeds, whose foreign certificates did not meet the following requirements:

  • there is an agreement on mutual recognition of the results of the certification work with the certification body of the country of origin of the seeds or planting material
  • products imported into Ukraine can be identified by the accompanying documentation as manufactured in accordance with the regulatory documents in force in Ukraine
  • the mandatory requirements and standards specified in the foreign certificate meet the requirements and standards in force in Ukraine

In addition, the Ukrainian State Service for Food Safety and Consumer Protection is recommended to recognize certificates issued by other countries without phytosanitary examination (analysis), in the presence of a phytosanitary certificate of the exporting country during the seed clearance. At the same time, the phytosanitary inspection is not canceled even under martial law.

  1. Abolition of registration of agricultural machinery during martial law

According to official government information, the Ministry of Agrarian Policy and Food of Ukraine abolished during martial law the obligation to register agricultural machinery provided for by Resolution of the Cabinet of Ministers of Ukraine of July 8, 2009 No. 694to know :

  • tractors
  • self-propelled chassis
  • self-propelled agricultural, road construction and recovery machinery
  • other agricultural machinery and its components of domestic and foreign production

After the end of martial law in the whole territory of Ukraine or in its separate localities, owners will be required to register (re-register) the appropriate vehicle within 90 days.

  1. Automatic registration of tax invoices

On February 28, 2022, the CMU approved Resolution No. 163 “On amendments to clause 3 of the procedure for suspending the registration of a tax invoice/adjustment calculation in the Unified Register of Tax Invoices”.

In accordance with this resolution, tax invoices/adjustment calculations are automatically recorded if they simultaneously meet the following conditions:

  • only reflect transactions with products/goods in UKT FEA groups 1-24,
  • compiled by a micro or small enterprise whose main type of activity is included in the exhaustive list of NCEAs specified in the resolution. These types of activities include, among others:
  • cultivation of cereals, legumes, melons, rice, vegetables and fruits
  • breeding cattle, sheep and goats, pigs, poultry
  • sea ​​and freshwater fishing
  • production of meat, animal oil and fats, products of the flour and grain industry, bread, pasta, baby food and other foods, mineral and other waters, sugar, tea, coffee
  • milk processing, butter and cheese production, etc.

The automatic registration of tax invoices / adjustment calculations under this resolution is valid for the entire period of martial law.

Lana T. Arthur