Ukraine’s cooperatives unable to export rapeseed and soybeans duty-free due to DAR system issues

Ukraine’s new mechanism for confirming eligibility for the exemption from the 10% export duty on rapeseed and soybeans, introduced on July 1, has proven inaccessible for agricultural cooperatives. Due to the lack of the necessary functionality in the State Agrarian Register (DAR), cooperatives cannot verify the origin of products supplied by their members and therefore cannot export them without paying the duty.

According to cooperative representatives, the problem became apparent immediately after the new system came into force. Farmers are unable to record the transfer of their home-grown rapeseed or soybeans to a cooperative, while the DAR system lacks an interface allowing cooperatives to verify these transactions. As a result, previously signed export contracts have effectively been put on hold.

The issue is already causing significant business losses. Ukrainian Agro Connection Cooperative cannot export more than 14 thsd tons of rapeseed, while Agroyednist Ukraine has 50 thsd tons of rapeseed blocked from export. Delays are increasing logistics, storage and demurrage costs, while also putting international supply contracts at risk.

The cooperatives have appealed to the Ministry of Economy, the State Enterprise “Agrarian Registers,” and the State Customs Service, urging them to urgently upgrade the system or introduce a temporary mechanism for confirming product origin. Market participants suggest temporarily restoring the previous certification procedure through the Ukrainian Chamber of Commerce and Industry until the DAR functionality is fully operational.

According to industry representatives, the problem is particularly severe for small farmers, as cooperatives allow them to export rapeseed and soybeans without paying the 10% export duty and secure better prices than those available on the domestic market. With logistics becoming more challenging and Black Sea export routes under pressure, resolving the issue quickly would provide important support for Ukrainian farmers at the beginning of the new marketing season.