More than 20% of grain exports carried out by risky enterprises – BES

In the first nine months of 2023, risky enterprises exported grain of unknown origin for UAH 133.9 billion.

This follows from a statement by the Bureau of Economic Security (BES), the Ukrainian News agency reports.

"According to the results of the analysis of export transactions with agricultural products, BES analysts found that in nine months, risky enterprises exported grains of unknown origin for UAH 133.9 billion. This is more than 20% of the total amount," the report says.

According to the report, the BES has now submitted its proposals to the Cabinet of Ministers to minimize risks in this sector of the economy.

It is noted that one of the most common methods of "black" export of grain is the use of risky enterprises.

They are created in advance for the export of unaccounted-for grain purchased for cash.

"Agrarians grow grain and sell it for cash to companies that are usually registered as fictitious entities and are not engaged in permanent economic activity. These companies do not submit documents about the origin of the grain or declare in the customs declarations of pretended producers. After the grain leaves the borders of Ukraine, it is resold several times, and it already legally reaches the final buyer. As a result, the foreign exchange earnings are not returned to Ukraine, and the budget does not receive income because the exporting companies are fictitious," the message says.

Usually, the final buyer of grain is a non-resident company that transfers funds for the goods to another non-resident related to the Ukrainian exporter.

Also, according to the report, there is a scheme in which the currency is transferred to the current accounts of a non-resident, who then purchases goods, for example, in China and imports them to Ukraine in order to then sell them for cash and sell them to other businesses for a tax credit.

The BES has submitted its proposals to the government regarding amendments to the regulations governing the export of agricultural products.

In particular, to reduce the risks of non-return of foreign exchange earnings, non-payment of taxes, and effective introduction of the export security regime, the following was proposed:

• To reduce the maximum settlement terms (revenue return) to 60-90 days
• To improve the procedure for filling out customs declarations, to add to the list of reasons for refusing customs clearance of grains of dubious origin;
• To expand the list of goods for which the export security regime is applied;
• To create open registers of certificates and exporters of agricultural products.

As the Ukrainian News agency earlier reported, the Cabinet of Ministers expanded the criteria for inclusion in the list of verified exporters of agricultural products.

On November 10, the Cabinet of Ministers introduced new rules for the export of agricultural products under martial law.

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