Exporting agricultural products in the challenging conditions of wartime requires special attention to legislative nuances. Ukrainian exporters have several ways to carry out foreign economic activity: obtaining an export licence or participating in a pilot project to verify agricultural entities.
However, when it comes to deliveries to certain countries, licensing becomes a mandatory condition regardless of the chosen format of work. In this article, we will have a closer look at the key aspects of obtaining an export licence, explain the specifics of its use and help you avoid common mistakes.
Contents
What is an export licence, and how does it work?
An export licence is an official permit that allows Ukrainian companies to supply goods abroad within a certain period. Such licences are issued by the Ministry of Economy of Ukraine, which annually compiles a list of products whose exports are subject to licensing.
Both legal entities and individual entrepreneurs (IEs) registered as foreign economic operators (FEOs) can obtain a licence. To do so, the company must provide documents confirming its legality and compliance with the requirements of national legislation. Licences are issued both for the export of goods of own production and for the resale of products of other manufacturers outside Ukraine.
There are two main forms of licensing for the export of goods:
- Automatic licensing. This type of licence provides for permission to export goods without setting quotas. Typically, the administrative fee for obtaining such a licence is UAH 220.
- Non-automatic licensing. It is used to export goods subject to quotas (restrictions). In this case, the administrative fee is UAH 780.
An export quota is a restriction on the volume of exports of a certain category of goods, determined in kind (units of production) or in value (for example, up to UAH 5 million).
It is worth noting that during martial law, the administrative fee for obtaining an export licence is not charged, which greatly simplifies the process for exporters.
Thus, an export licence is an important tool for regulating foreign economic activity, which helps to comply with legal regulations and ensures control over international trade.
When an export licence is required
Not all types of agricultural products can be exported without special permits. In 2024, the list of goods that require a licence or participation in a pilot project for the verification of agricultural entities for export is set out in annex 4 to Resolution of the Cabinet of Ministers of Ukraine No. 1402 dated 27.12.2023 (hereinafter – Resolution No. 1402).
On 18 June 2024, the innovations provided for by the Resolution of the Cabinet of Ministers of Ukraine No. 678 dated 13.06.2024 came into force. They apply to exports to such countries as Bulgaria, Romania, Slovakia, Hungary and Poland. A licence has become mandatory for exports to these countries:
- Wheat and mixtures of wheat and rye (meslin), UKTZED code: 1001 99 00 00;
- Corn, other, UKTZED code: 1005 90 00 00;
- Rapeseed or colza seeds, crushed or uncrushed, UKTZED codes: 1205 10 90 00, 1205 90 00;
- Sunflower seeds, hulled or in the husk, grey with white stripes, UKTZED code: 1206 00 91 00;
- Sunflower seeds, crushed or uncrushed, other, code: 1206 00 99 00.
From now on, even those exporters who have been verified are required to obtain a licence to export these products to these countries.
For the export of products specified in Annex 4 to Resolution No. 1402, but not included in the above list, there is still a choice: obtaining a licence or participating in a pilot project.
Exports of agricultural products that are not included in the list in Annex 4 to Resolution No. 1402 are possible without any licences or participation in additional programmes, regardless of the country of destination.
Thus, starting from 18 June 2024, the export rules have been significantly changed, and exporters should take into account the updates for effective foreign economic activity.
Advantages of an export licence
An export licence plays an important role in legalising and simplifying the process of exporting Ukrainian products to international markets. Thanks to this document, manufacturers can:
- Comply with regulations. The licence helps Ukrainian companies meet both international and national export requirements. It reduces the risk of legal problems and increases transparency.
- Strengthen the trust of partners. An export licence demonstrates to foreign counterparties the reliability and legitimacy of a company. This helps to build trust, which is the basis for long-term cooperation.
- Expand sales markets. Licensing opens up new opportunities for Ukrainian producers in global markets. Even in the face of political instability or economic challenges, a licence allows companies to expand their supply geography.
- Increase business stability. Obtaining a licence is not only a requirement, but also a strategic tool. In times of global challenges, such as martial law or economic crises, a licence helps the agricultural sector to remain stable and competitive.
The Government of Ukraine is actively improving its export regulation mechanisms. In particular, the Resolution of the Cabinet of Ministers of Ukraine dated 31.10.2023 approved licensing for certain product categories, such as grains and oilseeds. These include:
- Wheat, rye, barley, oats, corn;
- Soybeans;
- Rapeseed and sunflower seeds.
These innovations are aimed at ensuring trade transparency, protecting the interests of Ukrainian exporters and strengthening the country’s position in international markets.
An export licence is not just a formality, but an effective tool for business development, improving its reputation and expanding opportunities on the global stage.
How to obtain an export licence
The process of obtaining an export licence is an important step for foreign economic operators seeking to legally and transparently supply products abroad.
This procedure involves submitting a number of documents to the Ministry of Economy of Ukraine and complying with the requirements set out in the legislation. In this section, we will review the main steps required to obtain a licence and the key aspects to consider in order to avoid mistakes and delays in the permit process.
What you need to obtain an export licence
Obtaining an export licence requires the preparation and submission of a set of documents confirming that the company’s activities comply with the requirements of the law. Firstly, the applicant must fill in an application for a licence in the form approved by the Ministry of Economy of Ukraine and supplement it with a letter of application guaranteeing payment of the state licence fee.
The key documents are copies of the company’s state registration certificate, tax certificate, and foreign economic agreement, together with annexes and specifications. They must be duly certified and contain all information confirming the legitimacy of the foreign economic activity.
An expert opinion issued by the Ukrainian Chamber of Commerce and Industry or its regional offices is a mandatory document. It indicates the country of origin and the UKTZED code of the goods, which allows identifying the products for export.
It is also necessary to provide a certificate of opening a bank account by a non-resident if the buyer is a foreign company. Such a document must be translated into Ukrainian, and the translation may be certified by the head of the company.
This package of documents is submitted to the Ministry of Economy of Ukraine, which reviews the application and makes a decision on the licence. The correct execution of all documents is the key to successfully obtaining an export licence.
The procedure for issuing an export licence
Obtaining an export licence in Ukraine is regulated by annual resolutions of the Cabinet of Ministers, which determine the list of goods subject to licensing. In 2024, this list includes such items as coal, medicines, shoe care products, refrigerants, rye, sunflower oil and other goods. At the same time, a number of goods, such as salt for consumption or gas of Ukrainian origin, are subject to an export ban.
To obtain a licence, an applicant must prepare the necessary documents, including an expert opinion of the Ukrainian Chamber of Commerce and Industry on the country of origin of the goods, a foreign economic agreement with annexes, and a letter of application with the applicant’s contact details. The application can be submitted either online via the Diia portal or the Ministry of Economy’s website, or offline by sending a registered letter by post to the Ministry.
An important aspect is the absence of an administrative fee during martial law. The Ministry of Economy reviews applications within 10 business days of their registration. If all the documents meet the requirements, the licence is issued and the company is entitled to export the goods specified in the contract.
A licence may be refused if the documents are not in compliance with the requirements, quotas are exhausted, the company is under sanctions or its actions may violate Ukraine’s international obligations or trigger anti-dumping measures by other countries. Thus, compliance with the requirements and correct preparation of the application are key to successfully obtaining an export licence.
Peculiarities of exporting agricultural products to certain countries
The export of agricultural products to countries such as Bulgaria, Romania, Slovakia, Hungary and Poland has its own specific peculiarities related to the requirements of national and international regulation. One of the main differences is the procedure for reviewing applications and issuing licences, which involves several agencies.
The process of issuing licences for the export of products classified under UKTZED codes 1001 99 00 00 (wheat), 1005 90 00 00 (corn), 1205 10 90 00 and 1205 90 00 (rapeseed), 1206 00 91 00 and 1206 00 99 00 (sunflower seeds) is carried out within the time limit of up to 30 days set by the Ministry of Economy. However, the key stage is the approval granted by the Ministry of Agrarian Policy and Food after bilateral consultations with importing partners.
The approval is issued within 15 days of the Ministry’s receipt of the application. The entire process is carried out without the involvement of a foreign economic operator through interagency information exchange. This allows the details of exports to be agreed directly between government agencies, reducing the administrative burden on exporters.
A licence may be denied not only on the standard grounds provided for by law, but also if the Ministry of Agrarian Policy receives information indicating that approval is impossible. This underscores the importance of intergovernmental agreements and diplomatic consultations to ensure access of Ukrainian agricultural products to the markets of these countries.
Thus, the success of exports to Bulgaria, Romania, Slovakia, Hungary and Poland largely depends not only on the preparation of the business entity, but also on the effective cooperation of Ukrainian government agencies with international partners.
Licensing of foreign economic activity
Licensing of foreign economic operations is an important element of state regulation of trade, which ensures compliance with legal requirements and promotes transparency of business processes. Its rationale and details are determined by a number of legal documents that regulate various aspects of this activity.
The legal framework for licensing is based on the Law of Ukraine ‘On Foreign Economic Activity’, which sets out general rules for business entities, and the Law of Ukraine ‘On Licensing of Economic Activities’, which defines the procedure and conditions for issuing licences. In addition, the Cabinet of Ministers of Ukraine annually adopts resolutions, such as Resolution No. 1402, which lists the goods subject to licensing for export or import, and Resolution No. 362, which sets the amount of export licence fees.
In practice, the procedure for submitting and reviewing licence applications is determined by the relevant orders of the central executive authorities. For example, Order No. 991 approves the export licensing procedure, and Order No. 122 defines the procedure for reviewing applications. Every year, these regulations are supplemented by new decrees, so it is important for businesses to keep abreast of current legislative changes.
In addition to a licence, customs clearance of goods requires submission of a customs declaration, shipping documents (e.g., railway or air waybill), a foreign economic agreement, and an invoice indicating the value of the goods.
In some cases, additional documents may be required by law, such as a customs value declaration, a customs carrier’s licence or proof of the country of origin.
Licensing of foreign economic activity is a multifaceted process that covers both legal and administrative aspects. Compliance with all requirements is the key to successful export and import operations.
How to obtain the status of a verified agricultural entrepreneur
For agricultural enterprises actively engaged in exports, obtaining the status of a verified agricultural entity is an effective way to simplify foreign economic activity. This status allows you to export products without the need to obtain licences for each contract, provided that you meet the established criteria.
To obtain this status, an enterprise must be registered in the State Agrarian Register and meet a number of requirements. In particular, the entity must be a VAT payer, have no tax debt, not be subject to tax audits with a violation of its location, and complete at least one export transaction within a specified period in compliance with the deadlines for foreign currency settlements.
The process begins with registration in the State Agrarian Register, where an application is submitted along with supporting documents. Among them, a letter from a bank certifying the successful completion of the export transaction and other certificates confirming that there have been no violations of tax or currency legislation are required.
After submitting the application, the Ministry of Agrarian Policy and Food of Ukraine reviews it within two business days and decides whether to include the entity in the list of verified entities. If the company does not meet at least one of the criteria, it may be rejected.
The decision of the Ministry of Agrarian Policy is formalised in an order that comes into force the day after it is signed. Information on inclusion or exclusion from the list of verified entities is reflected in the State Agrarian Register, which ensures transparency and easy access to data.
Obtaining the status of a verified agricultural entrepreneur is a strategic decision that significantly simplifies export activities and increases the efficiency of work in international markets.
When export licensing is applied in Ukraine
Export licensing in Ukraine is an instrument of state regulation used in special cases to ensure economic stability, protect national interests and fulfil international obligations.
One of the key grounds for the application of licensing is the disturbance of market equilibrium for vital goods, such as agricultural products, food products and essential commodities. Licensing is also introduced to protect human, animal and plant life and health, the environment, national security and public morality.
Another important reason is the need to comply with international treaties and agreements and to protect intellectual property, including patents, copyrights and trademarks. In addition, licensing is used to protect domestic producers from unfavourable competitive conditions and to regulate the export of precious metals, except for banking metals.
Currently, Ukraine requires mandatory licensing of exports of goods included in the list approved by the Cabinet of Ministers. For example, in 2024, wheat exports will require a licence, while sugar exports are subject to a zero quota, effectively banning its export.
Thus, export licensing is an important tool used by the state to ensure national security, maintain economic stability, and fulfil international obligations.
Conclusion
An export licence is a key tool for Ukrainian companies to enter international markets legally and efficiently. It ensures compliance with national legislation and international agreements, promotes transparency of foreign economic activity and opens up new opportunities for business development.
The licensing procedure is simplified as much as possible by allowing companies to apply online via Diia or the Ministry of Economy’s website, as well as in the traditional way – by post. Exports not only help expand sales markets, but also allow businesses to increase profits, scale up production and improve profitability.
Compliance with licensing rules and the use of modern government regulation mechanisms are key to the stability, competitiveness and growth of Ukrainian business in the global arena.
