Flax is one of the main crops exported from Ukraine to other countries.
Flax seeds are used in industrial and food production, and from them oil is obtained and also used for food. The EU countries need to import flax, since there are not so many own areas for growing this crop in Europe. This is why European manufacturers tend to look to other countries to get this product.
What is needed for the supply of flax to the EU
Ukraine annually exports about 10-12 thousand tons of flax seeds. Compared to other, larger producers of this crop, such as Kazakhstan or Canada, the share of Ukrainian exports in this market is not particularly significant. For comparison, annually in Kazakhstan, about 1 million hectares of area are used for growing this crop, and in Canada – up to 800 thousand hectares.
Against the background of these countries, Ukraine loses somewhat in terms of indicators – in our country flax is grown for only 17-20 thousand hectares, and therefore the volumes of Ukrainian exports are much more modest. They do not contribute to the development of supplies and a decrease in yields, which directly depends on weather conditions. Nevertheless, in favorable periods, the supply of flax seeds in Europe is in demand, since the EU is the main importer of Ukrainian products.
According to the chairman of the board of directors of the Public Union “Association for the Development of Flax and Hemp Growing of Ukraine” Mykola Shkurko, the past 2019 was not particularly successful for local producers, since the EU reduced the volume of Ukrainian imports by 21%.
This is facilitated by its own characteristics and requirements for exported products. So, for successful sales of products abroad, producers must pay an export duty, which may not be entirely convenient for local farmers, since it requires additional costs for trade relations.
In addition, for export, it is necessary to prepare all the necessary accompanying documents for the products – the seeds must be assessed for composition so that the goods can be supplied to other countries.
Nevertheless, these features, although they bring some inconvenience to producers, still do not stop Ukrainian farmers from selling the local product to the EU markets.
Flax import features
To export their products to Europe, manufacturers need to obtain the following documents:
- EORI code – shows registration as an economic operator. Issued after filing a customs declaration.
- Import declaration with information about the cargo.
- Electronic customs declaration for the goods, which indicates the purpose of importing goods to other countries.
To fill out these documents correctly, samples can be found online. In addition, knowledge of the Customs Code, which can also be found online, is essential for successful export. You can also prepare in advance by learning the tax rates for the import of the required groups of goods on the Internet.