Ukraine will not pay new duties on exports of most grains to Turkey

UkrAgroConsult

Starting May 1, 2023, Turkey plans to reintroduce import duties on key grain crops for all exporting countries. It will amount to 130% and will apply exclusively to the following crops: wheat, barley, corn, rye, oats, and sorghum, the Ministry of Agrarian Policy reports.

Turkey is a major importer of Ukrainian wheat. However, the majority of Ukrainian grain is not subject to this duty, as our products are imported to Turkey mainly for sale to third countries and are not subject to the duty.

Turkey has two customs regimes for imports:

The first is for products used for domestic consumption. It was for such products that the Turkish Government announced a temporary zero duty rate. This preferential regime has now expired. And the 130% duty rate is back.
The second is for products that are sold to third countries before or after processing. No duty is paid for this regime.

Ukraine supplies products to Turkey mainly under the second customs regime. In terms of percentage, about 5% of Ukraine’s total exports to Turkey are exported under the first regime, which is subject to a duty refund.

For reference: according to the State Customs Service of Ukraine, in the first quarter of 2023, Turkey imported Ukrainian wheat worth USD 168.8 mln, which is 17.7% of its total imports.

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Tags: wheat, Ukraine, corn, Turkey, export, grain, barley