May 16 2006, 11:29

Seasonal import tax for early potato is terminated

Seasonal import tax for early potato is out of action starting from the 16th of May; it was in force January 1st till May 15th in Ukraine. We'd like to remind that according to the Changes to the Custom Tariff of Ukraine (in force since August 2005), during the mentioned period of time the import tax for early potato is 20% of dutiable value. When seasonal import tax is out of action, the custom duty for potato import is EUR 0.2/kg.

Decreased import tax for early potato was a gift for importers this season because of poor past year harvest and potato shortage observed on the country market. Thousands of tons of potato were supplied to Ukraine - the gross volume is twice as larger comparing to the pervious year. Main supplies of early potato were performed from Egypt via Odesa ports; there were also supplies from Lebanon and other Mediterranean countries. And, large potato shipments were brought from the neighboring countries: Russia, Belarus and Poland. Potato shortage was observed in these countries too, but the price still was lower than in Ukraine. And, Russian and Belarusian suppliers do not have to pay import tax.

The term "early (young) potato" is classified according to ГОСТ 26545-85. Depending from sales period, potato is classified as early (potato of this year harvest, which is sold till September 1st) and late potato (sold since September 1st). Egyptian potato looked quite different from the potato which Ukrainians traditionally call "early". Still, this imported commodity fully corresponds to the definition as "potato of this year harvest".