On 8 December 2015, Ukraine’s Parliament adopted the Law on deregulation in agriculture (the “Deregulation Law”).
The adoption of the Deregulation Law is especially important in light of the Deep and Comprehensive Free Trade Area, as part of the EU-Ukraine Association Agreement coming into force on 1 January 2016, as it will help open up the Ukrainian market to EU agricultural imports and investment.
The Deregulation Law continues the Ukrainian government’s on-going efforts to deregulate the economy by decreasing state control over agricultural activities and promotes investment in the all-important agri-business sector in Ukraine.
The Deregulation Law abolishes or circumscribes 22 out of 110 procedures that require obtaining permits from state authorities.
The key simplified procedures are as follows:
- Simplification of the registration process for fertilizers, by eliminating 16 fertilizers from registration. This will help open the Ukrainian market to importers and, according to the law’s authors, will save Ukrainian farmers approximately USD 250 million per year;
- Abolition of quarantine import permits, making imported food products cheaper. Until now, quarantine import permits were applied to any food products imported into Ukraine; they were a source of corruption for many years and significantly increased the costs for importers. A phytosanitary certificate from the exporting country will continue to be required to guarantee product safety;
- Abolition of the permit to transfer feed grain and animals inside the country; and
- Simplification of the administrative procedures in the fisheries sector. The license for commercial fisheries will be abolished and commercial fishing will be conducted on the basis of a permit only. The Deregulation Law also shortens the term for issuing of this permit from 30 to 10 days and limits the number of grounds for the state authorities to withhold it.
The Deregulation Law will become effective once it is signed by the President of Ukraine and upon its official promulgation.