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Business Guides for Grains, Fruits, and Vegetables Export Promotion Between Norway and Ukraine

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Business Guides for Grains, Fruits, and Vegetables Export Promotion Between Norway and Ukraine

  1. 1. NORWEGIAN-UKRAINIAN BUSINESS GUIDE FOR GRAINS GRAINS – AGRICULTURAL SECTOR WITH A HIGH CROSS-BORDER POTENTIAL SELECTED RAW AND PROCESSED GRAINS WHEAT MAIZE WHEAT FLOUR A low-cost production platform A global leader in agricultural export The largest country within Europe A broad network of international trade partners Abundance of natural resources Criteria for comparison … AND UKRAINIAN HIGHLY DEVELOPED PRODUCTS GRAINS - NORWEGIAN STRATEGICALLY IMPORTANT PRODUCTS… Annual growth of import -13% 10%-3.1% Share of total import 60% 1%9.6% Import value USD 71 mln USD 3.2 mlnUSD 12 mln Share of total export 47% 54%40% Export value USD 4200 mln USD 140 mlnUSD 3600 mln Annual growth of export 23% 30%25% COMPETITIVE ADVANTAGES OF UKRAINIAN GRAINS Lower prices1 13% cheaper 64% cheaper17% cheaper High quality  Ukrainian grains are required to comply with harmonized EU standards  All grains DCFTA quotas for 2018 were used up during the first 5 days Global recognition  Ukraine is the second global exporter of grains  Ukraine is 4th in barley and 6th in wheat globally Tariffs2 Same as EU (0.23 USD/kg) Same as EU (0.35 USD/kg) 11% lower than EU (0.18 USD/kg) 100199 100590 110100 1 Comparison of Ukrainian export prices with Norwegian import prices 2 Comparison of Norwegian customs tariffs for Ukraine and the EU WHY DO BUSINESS WITH UKRAINE? The EFTA-Ukraine FTA was enacted in 2010 and has a comprehensive coverage, including trade in goods and services, investment, protection of intellectual property rights, government procurement and provisions on competition BENEFITS FOR NORWAY  Import opportunities of agricultural products  Customs simplification http://www.easybusiness.in.ua/ https://nucc.no/ BENEFITS FOR UKRAINE BENEFITS FOR BOTH SIDES  Access to a new market with a strong demand for agricultural products  Tariff concessions on agricultural products  Duty-free trade for some industrial goods  Simplified trade and reduced regulations EFTA-UKRAINE FREE TRADE AGREEMENT
  2. 2. HOW TO IMPORT GRAINS TO NORWAY?HOW TO EXPORT GRAINS FROM UKRAINE?  Documents of Customs Accreditation are obligatory for starting export procedures. Documents are issued by customs authority and can be received within 2 days maximum after customs registration.  Foreign trade agreement that contains (1) delivery terms, (2) terms of payment, (3) the subject of the contract, (4) price and total value of products  Product specification that consists of (1) volume of goods, (2) unit of measurement, (3) price per unit, (4) the total price of consignment  Invoice that contains (1) the seller, (2) buyer, (3) product and its price, (4) terms of sale and delivery, (5) a reference to the foreign trade agreements  Packing list that consists of (1) weight of the consignment, (2) quantitative characteristics of the product, (3) packing materials  Transportation documents that vary across means of transport: (1) bill of lading (B/L) for sea transport, (2) air waybill (AWB) for air transport, (3) road waybill (CMR) for road transport There are no customs payments for selected grains and grains products as per Ukrainian legislation PAY TAXES AND MANDATORY FEES TAKE SPECIAL CUSTOMS CONTROL SUBMIT REQUIRED DOCUMENTS TO THE CUSTOMS Phytosanitary controlRadiological control Required for all products and conducted during customs clearance by the State Fiscal Service of Ukraine All raw and processed grains are subject to phytosanitary control  The most beneficial means of transport for grains would be the sea ones (provides the lowest costs of delivery)  The costs of delivery depend on the product, its weight, price etc. and can be calculated after the submission of an application to a logistic company PRACTICAL HINTS SUBMIT REQUIRED DOCUMENTS TO THE CUSTOMS  Customs declaration that can be submitted through TVINN - Norwegian Customs electronic system for exchanging customs declarations and should be sent to the customs region where a company is domiciled  Single Administrative Document (SAD) that is a standardized customs form that contains the information taken from invoices, shipping documents, and acquired permissions  Invoice that includes (1) information about the seller and buyer, (2) time and place for dispatch, (3) size of consignments, (4) description of consignment content, (5) terms of delivery, (6) commodity origin, (7) agreed price  Transportation documents that vary across means of transport: (1) bill of lading (B/L) for sea transport, (2) air waybill (AWB) for air transport, (3) road waybill (CMR) for road transport  Health certificate. Import of grains must be accompanied by health certificates, according to Regulation No 1333 from 2000 MEET TARIFF POLICY REQUIREMENTS Maize - USD 0.18 per kg Wheat - USD 0.23 per kg Wheat flour – USD 0.35 per kg VAT for foodstuff is 15% MEET NON-TARIFF POLICIES Should follow EU regulations on packaging Should be registered at Norwegian Food Safety Authority Have to be labelled in Norwegian  The easiest way to prepare all required documents is to turn to licensed customs brokers  In order to receive a tailored transport solution, please, consider a licensed logistic company, which can also provide consulting services and insurance TRANSPORT OPTIONS
  3. 3. FRUITS – AGRICULTURAL SECTOR WITH A HIGH CROSS-BORDER POTENTIAL SELECTED FRESH AND PROCESSED FRUITS FRESH APPLES APPLE JUICE CRANBERRIES & BILLBERIES Criteria for comparison … AND UKRAINIAN HIGHLY DEVELOPED PRODUCTS FRUITS - NORWEGIAN STRATEGICALLY IMPORTANT PRODUCTS… Annual growth of import -2% 13%-13% Share of total import 7.8% 6.4%1.3% Import value USD 67 mln USD 55 mlnUSD 11 mln Share of total export 5.3% 4.7%52% Export value USD 12 mln USD 10 mlnUSD 115 mln Annual growth of export 13% 38%-5.5% COMPETITIVE ADVANTAGES OF UKRAINIAN FRUITS 080810 081040200979 Lower prices1 48% cheaper 70% cheaper23% cheaper High quality  Ukrainian fruits are required to comply with harmonized EU standards  Ukrainian fruits have unique taste qualities Global recognition  Ukraine is the 5th largest producers of blueberries in Europe  Ukraine is the third largest exporter of apple juice globally Tariffs2 15% lower than EU (0.46 USD/kg) Same as EU (duty-free) Same as EU (3 USD/kg) 1 Comparison of Ukrainian export prices with Norwegian import prices 2 Comparison of Norwegian customs tariffs for Ukraine and the EU NORWEGIAN-UKRAINIAN BUSINESS GUIDE FOR FRUITS A low-cost production platform A global leader in agricultural export The largest country within Europe A broad network of international trade partners Abundance of natural resources EFTA-UKRAINE FREE TRADE AGREEMENT WHY DO BUSINESS WITH UKRAINE? The EFTA-Ukraine FTA was enacted in 2010 and has a comprehensive coverage, including trade in goods and services, investment, protection of intellectual property rights, government procurement and provisions on competition  Import opportunities of agricultural products  Customs simplification http://www.easybusiness.in.ua/ https://nucc.no/  Access to a new market with a strong demand for agricultural products  Tariff concessions on agricultural products  Duty-free trade for some industrial goods  Simplified trade and reduced regulations BENEFITS FOR NORWAY BENEFITS FOR UKRAINE BENEFITS FOR BOTH SIDES
  4. 4. HOW TO IMPORT FRUITS TO NORWAY?HOW TO EXPORT FRUITS FROM UKRAINE?  Documents of Customs Accreditation are obligatory for starting export procedures. Documents are issued by customs authority and can be received within 2 days maximum after customs registration.  Foreign trade agreement that contains (1) delivery terms, (2) terms of payment, (3) the subject of the contract, (4) price and total value of products  Product specification that consists of (1) volume of goods, (2) unit of measurement, (3) price per unit, (4) the total price of consignment  Invoice that contains (1) the seller, (2) buyer, (3) product and its price, (4) terms of sale and delivery, (5) a reference to the foreign trade agreements  Packing list that consists of (1) weight of the consignment, (2) quantitative characteristics of the product, (3) packing materials  Transportation documents that vary across means of transport: (1) bill of lading (B/L) for sea transport, (2) air waybill (AWB) for air transport, (3) road waybill (CMR) for road transport There are no customs payments for selected fruits and fruits products as per Ukrainian legislation PAY TAXES AND MANDATORY FEES TAKE SPECIAL CUSTOMS CONTROL SUBMIT REQUIRED DOCUMENTS TO THE CUSTOMS Phytosanitary controlRadiological control Required for all products and conducted during customs clearance by the State Fiscal Service of Ukraine All fresh fruits are subject to phytosanitary control, processed fruits are not required to take such control  The most beneficial means of transport for fresh fruits would be road ones and for fruits products, both sea and road transport can be considered  The costs of delivery depend on the product, its weight, price etc. and can be calculated after the submission of an application to a logistic company PRACTICAL HINTS SUBMIT REQUIRED DOCUMENTS TO THE CUSTOMS  Customs declaration that can be submitted through TVINN - Norwegian Customs electronic system for exchanging customs declarations and should be sent to the customs region where a company is domiciled  Single Administrative Document (SAD) that is a standardized customs form that contains the information taken from invoices, shipping documents, and acquired permissions  Invoice that includes (1) information about the seller and buyer, (2) time and place for dispatch, (3) size of consignments, (4) description of consignment content, (5) terms of delivery, (6) commodity origin, (7) agreed price  Transportation documents that vary across means of transport: (1) bill of lading (B/L) for sea transport, (2) air waybill (AWB) for air transport, (3) road waybill (CMR) for road transport  Health certificate. Import of fresh fruits and berries must be accompanied by health certificates, according to Regulation No 1333 from 2000 MEET TARIFF POLICY REQUIREMENTS Fresh cranberries and bilberries no customs duty Fresh apples - USD 0.46 per kg Apple juice USD 3 per kg VAT for foodstuff is 15% MEET NON-TARIFF POLICIES Should follow EU regulations on packaging Should be registered at Norwegian Food Safety Authority Have to be labelled in Norwegian  The easiest way to prepare all required documents is to turn to licensed customs brokers  In order to receive a tailored transport solution, please, consider a licensed logistic company, which can also provide consulting services and insurance TRANSPORT OPTIONS
  5. 5. SELECTED FRESH AND PROCESSED VEGETABLES PREPARED TOMATOES TOMATOES POTATOESCriteria for comparison … AND UKRAINIAN HIGHLY DEVELOPED PRODUCTS VEGETABLES - NORWEGIAN STRATEGICALLY IMPORTANT PRODUCTS… Annual growth of import 6.5% 0.6%-0.3% Share of total import 2.6% 5.6%13% Import value USD 13 mln USD 29 mlnUSD 65 mln Share of total export 13% 0.9%4.1% Export value USD 58 mln USD 3.9 mlnUSD 19 mln Annual growth of export 18% 2%-10% ADVANTAGES OF UKRAINIAN VEGETABLES Lower prices1 25% cheaper 52% cheaper73% cheaper High quality  Ukrainian vegetables are required to comply with harmonized EU standards Organic products  Strong focus and growth of organic farming  Ukrainian vegetables are grown without GMOs Tariffs2 Duty-free for EU, but 0–0.13 USD/kg for UA Same as EU (0.14–0.27 USD/kg) 7% higher than EU (0–1.38 USD/kg) 070200 200290 070190 1 Comparison of Ukrainian export prices with Norwegian import prices 2 Comparison of Norwegian customs tariffs for Ukraine and the EU VEGETABLES – AGRICULTURAL SECTOR WITH A HIGH CROSS-BORDER POTENTIAL NORWEGIAN-UKRAINIAN BUSINESS GUIDE FOR VEGETABLES A low-cost production platform A global leader in agricultural export The largest country within Europe A broad network of international trade partners Abundance of natural resources WHY DO BUSINESS WITH UKRAINE? The EFTA-Ukraine FTA was enacted in 2010 and has a comprehensive coverage, including trade in goods and services, investment, protection of intellectual property rights, government procurement and provisions on competition  Import opportunities of agricultural products  Customs simplification http://www.easybusiness.in.ua/ https://nucc.no/  Access to a new market with a strong demand for agricultural products  Tariff concessions on agricultural products  Duty-free trade for some industrial goods  Simplified trade and reduced regulations BENEFITS FOR NORWAY BENEFITS FOR UKRAINE BENEFITS FOR BOTH SIDES EFTA-UKRAINE FREE TRADE AGREEMENT
  6. 6. HOW TO IMPORT VEGETABLES TO NORWAY? HOW TO EXPORT VEGETABLES FROM UKRAINE?  Documents of Customs Accreditation are obligatory for starting export procedures. Documents are issued by customs authority and can be received within 2 days maximum after customs registration.  Foreign trade agreement that contains (1) delivery terms, (2) terms of payment, (3) the subject of the contract, (4) price and total value of products  Product specification that consists of (1) volume of goods, (2) unit of measurement, (3) price per unit, (4) the total price of consignment  Invoice that contains (1) the seller, (2) buyer, (3) product and its price, (4) terms of sale and delivery, (5) a reference to the foreign trade agreements  Packing list that consists of (1) weight of the consignment, (2) quantitative characteristics of the product, (3) packing materials  Transportation documents that vary across means of transport: (1) bill of lading (B/L) for sea transport, (2) air waybill (AWB) for air transport, (3) road waybill (CMR) for road transport There are no customs payments for selected vegetables and vegetables products as per Ukrainian legislation PAY TAXES AND MANDATORY FEES TAKE SPECIAL CUSTOMS CONTROL SUBMIT REQUIRED DOCUMENTS TO THE CUSTOMS Phytosanitary controlRadiological control Required for all products and conducted during customs clearance by the State Fiscal Service of Ukraine All fresh vegetables are subject to phytosanitary control, processed ones is not required to take such control  The most beneficial means of transport for fresh or chilled tomatoes would be the road one and for all other, both sea and road transport can be considered  The costs of delivery depend on the product, its weight, price etc. and can be calculated after the submission of an application to a logistic company PRACTICAL HINTSTRANSPORT OPTIONS SUBMIT REQUIRED DOCUMENTS TO THE CUSTOMS  Customs declaration that can be submitted through TVINN - Norwegian Customs electronic system for exchanging customs declarations and should be sent to the customs region where a company is domiciled  Single Administrative Document (SAD) that is a standardized customs form that contains the information taken from invoices, shipping documents, and acquired permissions  Invoice that includes (1) information about the seller and buyer, (2) time and place for dispatch, (3) size of consignments, (4) description of consignment content, (5) terms of delivery, (6) commodity origin, (7) agreed price  Transportation documents that vary across means of transport: (1) bill of lading (B/L) for sea transport, (2) air waybill (AWB) for air transport, (3) road waybill (CMR) for road transport  Health certificate. Import of vegetables must be accompanied by health certificates, according to Regulation No 1333 from 2000. MEET TARIFF POLICY REQUIREMENTS Fresh tomatoes – USD 0 – 1.38 per kg Prepared tomatoes – USD 0 – 0.13 per kg Fresh potatoes – USD 0.14 – 0.27 per kg VAT for foodstuff is 15% MEET NON-TARIFF POLICIES Should follow EU regulations on packaging Should be registered at Norwegian Food Safety Authority Have to be labelled in Norwegian  The easiest way to prepare all required documents is to turn to licensed customs brokers  In order to receive a tailored transport solution, please, consider a licensed logistic company, which can also provide consulting services and insurance

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