Bulk carrier loading cargo at Port of Odesa in Ukraine Ukrainian Sea Ports Authority
Bulkers

Ukraine resumes oilseed shipments after two-week pause due to customs confusion

Reuters

Ukraine's customs has started clearing rapeseed and soybean shipments with the new 10 per cent export duty, though only in small batches, analyst ASAP Agri said on Wednesday.

Oilseed exports were blocked for about two weeks owing to confusion over customs documents.

The customs office did not immediately respond to a request for comment.

"From Sept. 4 to 16, customs cleared only 9,600 tonnes of soybeans and 23,400 tonnes of rapeseed for export," ASAP Agri said on social media.

It said that in the first half of September, exports of these crops amounted to 34,500 tonnes of soybeans and 56,900 tonnes of rapeseed, two and six times less than in the same period last season, respectively.

Ukraine is a leading exporter of rapeseed and soybeans, mostly to Europe, and the duty could create short-term price volatility.

The law on the 10 per cent export duty came into force on September 4. While it imposes the duty on exports by traders, farmers selling their own rapeseed and soybean products are excluded.

Vessels currently in ports have been loaded with produce from both traders and producers, however. And neither the traders nor customs officials are in possession of the list of documents required to determine who needs to pay the duty and who is exempt.

(Reporting by Pavel Polityuk Editing by Mark Potter)