February 24 2003, 15:31 Interfax-Ukraine

Oil crushers' association may initiate limitations of imports of margarine products to Ukraine

Ukraine's oil crushers' association "Ukroliyaprom" intends to study the causes of increase of import margarine products share in Ukrainian market and to initiate introduction of extra limitations should the importers have used the schemes of avoiding customs duties, a spokesman for the association has said.

"We are preparing an enquiry to be submitted to the State Tax Service to find out under which item codes margarine products are being imported, as some product groups are subject to zero import duty. If our suspicions prove true, we will initiate an increase of import duty", the spokesman said.

He clarified the point, saying that margarine products are being actively imported under the item codes "vegetable fats" and "mixes of vegetable fats" for confectionery industry. For these items there is a zero rate of import duty.

The spokesman said import of margarine products from Russian Federation was generally insignificant. "The main imports come from western countries", he said.

Management of "Ukroliyaprom" has repeatedly spoken about necessity of increasing domestic production of margarine products and cutting the imports.