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from $1.57B in July and $1.55B in June.
The government has initiated a custom tariff update to the 2022 version.
The Cabinet of Ministers approved a draft law that brings the Customs Tariff of Ukraine into compliance with the requirements of the International Convention on the Harmonized System of Description and Coding of Goods. However, the Ministry of Economy said that the document does not provide for changes in import duty rates on goods, the Ministry of Economy said. The current customs tariff has been built using a 2017 version of the international guidelines, and the 2022 version is already in effect in most countries worldwide. Due to this, many complications arise related to discrepancies in product codes during customs clearance of imported products to Ukraine. The new draft law foresees more than 350 changes in commodity codes, mainly concerning agriculture goods, chemical, forest sectors, textiles, non-ferrous metals, engineering, transport, etc. The document will be sent to the parliament for consideration.
Ukraine has decreased coal imports by three times and will rely on domestic production. For the first eight months of 2022, Ukraine has reduced the import of hard coal and anthracite by three times compared to the same period in 2021, to 4.37mn tons. According to the Ministry of Energy, Ukraine will rely exclusively on its coal production for the next two years, even though a quarter of Ukrainian state mines are located in the temporarily occupied territory following the Russian invasion. According to the State Customs Service, the country bought $1.05B worth of coal, which is 20.8% less than in January-August last year ($1.32bn). Coal worth $420.58M came from the Russian Federation (pre-war supplies, a 40.05% share of imports), the United States – $291.4M (27.76%), Australia – $103.13M (9.82%), and other countries – $234.8M (22.37%). During this period, coal exports reached 523,860 tons for $166.6M to Slovakia, Poland, Hungary, and other countries.
Ukraine plans to export coal to Poland and increase the supply of electricity. As part of preparations for the challenging heating season for both Ukraine and the EU, Ukraine is ready to consider opening quotas for importing coal to Poland, Prime Minister Denys Shmyhal said. According to Shmyhal, Ukraine is planning to send about 100,000 tons of coal in September, which Poland now critically needs. The head of the government reported that coal reserves in Ukraine amount to almost twomn tons, which is 2.5 times more than last year's reserves. Ukraine also plans to increase the supply of electricity to Poland. The reconstruction of the transmission line from the Khmelnytskyi NPP to the Polish Rzeszów substation will be completed ahead of schedule, allowing for the export of an additional 1,000 MW. Ukraine has called on Poland to contribute to the expansion of export quotas within the ENTSO-E.
The Ukrainian-Polish border is backed up with huge lines at the start of September as Ukraine tries to restart its wartorn trade. The number of trucks on the Ukrainian-Polish border is constantly increasing due to the low customs clearing capacity on the Polish side. According to Deputy Minister of Infrastructure Mustafa Nayem, a historical record was set last week: the line of trucks waiting to cross at the Jagodyn checkpoint on the Polish border exceeded the 45-kilometer mark. Nayem noted that the border and customs services have become more efficient over the past four months, but thousands of cars are stuck in a traffic jam on the Polish side. Nayem identified Poland’s low service efficiency resulting from an inadequate number of employees that
28 UKRAINE Country Report October 2022 www.intellinews.com