Report on the activities of the Association "Ukrkondprom" for 2017-2018 years.

1. During 2018 was held two meetings confectionery manufacturers, starch, food concentrates and coffee with the First Vice Prime Minister - Minister of Economic Development and Trade of Ukraine Stepan Kubiv in order to discuss the situation in the field and to jointly search for mechanisms to solve existing problems

As a result of the meetings, two government protocols (from 24.04.2018. and from 13.12.2018) were signed with instructions for the central authorities and other departments to solve the urgent problems of the branches.

2. Expanding the export geography and expanding export volumes in the existing directions

The Association has developed an export strategy for the industry and in cooperation with FAO and the EBRD is working on implementation of projects, aimed at increasing the export potential of the industry, including: organization of business missions to countries, that are perspective for the export of confectionery products; attracting foreign consultants to assist Ukrainian exporters in promoting products in new markets, etc.. 28 On March 2019 in Dubai (OAE) will be held the trade mark "Sweet & Fruit Trade: UkraineMiddle East”, organized by FAO, EBRD and the Association "Ukrkondprom".

3. Reducing the cost of logistics in Central Asia and the Caucasus

Due to the ban on transit of Russian confectionery products, the industry faced a problem of logistics during export of products to the markets of Central Asia and the Caucasus. The Association cooperates with Minister of Economic Development and Trade of Ukraine, the Ministry of Infrastructure and the Ukrzaliznytsya in order to find ways to reduce the cost of logistics while exporting to this region. In particular, the possibility of launching a state ferry under the operation of Ukrzaliznytsya to reduce the cost of ferry crossings through the Black Sea, as well as the revision of tariffs for the lease of carriages UZ, sent to Central Asia and the Caucasus. The Association also working on alternative shipping methods, including, multimodal transportation.

In November and December 2018 Uzbekistan suspended the clearance of cargoes with Ukrainian confectionery products without official notification of the reasons. The Association informs the Ministry of Economic Development and the First Vice Prime Minister S. Kubiv on the situation on the border in an operational manner. Due to the efforts of the Minister of Economic Development and Trade of Ukraine the problem was resolved promptly, Uzbek customs fully resumed customs clearance of Ukrainian goods.

4. Resolution of problems with the unlawful use of protective measures in export countries

Together with the Ministry of Economic Development and Trade, the issue of unlawful collection of import duties during the import of Ukrainian confectionery products of the Republic of Tajikistan, which were collected contrary to the FTA, was resolved. As the Tajik customs authorities have started to apply indicative prices for confectionery products twice as high as contract prices, which leads to a significant increase in the cost of importers during customs clearance, and a rise in prices for Ukrainian products in the Tajik market, the Association is currently working to address this problem.

5. Prohibition of import into the customs territory of Ukraine of starch-paste products originating from the Russian Federation

According to the Association's application, starch-paste products according to the codes of UKT ZED 110812, 170230, 170240 were included in the list of goods, banned for import into the customs territory of Ukraine, originating from the Russian Federation, in accordance with the resolution of the Cabinet of Ministers of Ukraine number 1147 from 30 December 2015 y.

6. Increase of quotas for Ukrainian starch-molasses products for export to the EU

When concluding an FTA with the EU, for Ukrainian starch-molasses products, such a quota was set, which greatly limits the export potential of the industry, and exports outside the quotas are blocked by an ultra-high protective duty import. The Association cooperates with the Ministry of Economic Development and Trade for the revision of the established quota volumes in order to increase them.

7. Resolution of the problem of violation of customs and tax legislation of Ukraine in the form of "gray" import schemes during the importation of ready-made coffee products into Ukraine

In order to solve this problem today, the Association, in conjunction with the DFS, is agreeing a draft Memorandum, in which the Association will provide operational data on the real value of coffee products, for the purpose of using it during customs clearance of coffee imports.

8. Solving problems with the provision of enterprises in the field of labor resources

The Association initiated a joint meeting with the Ministry of Social Policy, the Ministry of Economic Development and the State Employment Service, which resulted in the adoption of a joint action plan to provide enterprises with labor resources.

9. Availability of tariff and non-tariff barriers for the export of confectionery to countries such as Egypt, Jordan, Iran, India, Turkey, Serbia, Indonesia)

The Association, together with the Ministry of Economic Development and Trade, is working to eliminate existing barriers to improve access to these markets.

10. Continuation of exports to Ukraine from Russia of products, included in the "List of goods, banned for import into the customs territory of Ukraine, originating from the Russian Federation"

The Association received information on the continuation of export of confectionery products to Ukraine from Ukraine, the import of which is prohibited in the customs territory of Ukraine, and appealed to the relevant authorities to solve this problem.

11. The draft law "On amendments to certain laws of Ukraine concerning the prohibition of the use of palm oil in the production of food products" was registered and voted on at the first reading in the VRU (register. № 3871). Adoption of this bill, in addition, to violating Ukraine's WTO obligations and creating barriers to trade, could lead to a collapse in the food industry.

The Association sent personal appeals to each of the deputies of the Verkhovna Rada with a justification, why this bill can not be supported in the current wording. The Association also prepared proposals for amending the draft law to the second reading and sent them to the profile committee of the Verkhovna Rada.

12. Within the framework of the investigation of the rail freight market by the Antimonopoly Committee of Ukraine, the Association provided the AMCU with information on raising rates on covered and UZ isothermal wagons

According to the results of the study, the Antimonopoly Committee established the monopoly (dominant) position of “Ukrzaliznytsia” with a 100% share in the markets: the provision of railway infrastructure, the provision of services of main cargo locomotives, and the carriage of goods by rail. In addition, signs of a monopoly (dominant) position on the market for the use of wagons within Ukraine, with a share of more than 35%( including covered wagons, where the share of UZ is 78%).

13. Frequency of inspections of products, imported into the customs territory of Ukraine (including for transit purposes)

On the basis of reforming the system of official (state) control over food safety with the maximum harmonization of relevant procedures and regulations with the relevant EU legislation, the State Service of Ukraine for Food Safety and Consumer Protection has approved a number of orders, that establish a mechanism and procedure for the determination and application periodicity of documentary checks, conformity checks, physical checks, laboratory tests (test) cargo, imported (forwarded) to the customs territory of Ukraine, including for transit purposes, and establish the maximum periodicity of carrying out the appropriate types of state control. Today, the Association, along with the the State Service of Ukraine for Food Safety and Consumer Protection, the Ministry of Health and accredited laboratories, are working on the issue of reducing the maximum periodicity of conducting the respective types of state control for all types of food products, in particular confectionery and food concentrate products.

14. Heredity criteria

The AMCU sent a letter to the Association addressing the question of the lawfulness of applying the "year of creation" of the company along with its name.

According to section 6 of the Professional Ethics rules, which regulates the general principles of professional ethics, ethical standards, rules and general agreements were established by the Commission, which considered all issues in the AMC inquiry and developed and agreed on criteria of continuity (with the criteria can be found at the link – ), which may be sufficient reason for enterprises to indicate the "year of creation" of the company on the packaging of their products.

15. Activities of the Technical Committee for Standardization "Confectionery and Food Concentrate Products" (TC 152), the functions of the secretariat of which are carried out by the Association.

TC 152 held 10 meetings, number of questions, requiring for voting - 57 question.

The development and adoption of national standards, Changes and amendments, harmonized with European standards / changes / amendments, including verification method:

DSTU ISO 1003 "Spices. Ginger, (Zingiber officinale). Specification";

DSTU ISO 2451 "Cocoa bobby. Specifications and quality requirements ";

Change number 1 to ISO 1446 "Coffee. The basic method of determining the water content ";

DSTU ISO 2292 "Cocoa bobby. Sampling ";

DSTU ISO 4150 "Coffee in bags. Determining the amount of manual sifting ";

DSTU ISO 6668 "Coffee. Preparation of samples for sensory analysis ";

Change number 1 to ISO 7513 "Tea instant granulated. Determination of moisture (weight loss at a temperature of 103 ° C.)»;

DSTU ISO 8455 "Coffee in bags. Guidelines for storage and transportation ";

DSTU ISO 9116 "Coffee. Guidance on methods for describing characteristics ";

DSTU ISO 24114 "Instant coffee. Criteria for authenticity ";

DSTU ISO 9768 "Tea. Determination of water extract ";

correction № 1 to ISO 9768 "Tea. Determination of water extract ";

Change number 1 to DSTU 8004 "Food Concentrates. The method for determining the moisture ";

DSTU 2633 "Confectionery products. Terms and definitions ";

DSTU 4660 "Semis. Glazes and mass to form. General technical conditions ";

DSTU 4033 "Waffles. General technical conditions ";

DSTU 4052 «Crackers. General technical conditions ";

DSTU 5004 "Cocoa butter. General technical conditions ";

DSTU 4460 "Products Biscuit. General technical conditions ";

DSTU 4391 "Cocoa powder. General technical conditions ";

DSTU 5006 "Cocoa TERT. General technical conditions ";

DSTU 4429 "Galletti. General technical conditions ";

DSTU 4333 "Marmalade. General technical conditions ",

which were later adopted at the national level, national standards bodies SE "UkrNDNC".

TC 152 provided 25 response to requests of the industry in the accuracy of labeling, product names, indicators of quality and safety in accordance with national regulations (DSTU) and applicable laws and regulations.

Interaction with organizations in standardization:

— ISO/TC 34/SC 7 "Spices, culinary spices and seasonings ", active member (P-Member)
—ISO/TC 34/SC 8 "Tea", active member (P-Member)
- ISO / TC 34 / SC15 «Coffee», active member (P-Member)

- TC 19 "Scientific and technical terminology".

- MTK 152 "Food concentrates, Tea coffee, natural flavors and colors ", active member (P-Member)

- MTK 149 "Confectionery"

TC 152 considered 26 draft international standard. For all projects were "content" of approval, as in Ukraine developed regulations, are implementing European legislation.

16. Specialized industrial tasting commission to assess confectionery, food concentrates, coffee, tea and beverages based on them

The meetings were evaluated SGDK 790 kinds of, which were presented on the basis of the development of new formulations, working process parameters, change / replacement materials (re-approval), and extension of life (subject to the availability of test reports from accredited laboratories).

Every year businesses confectionery and food concentrates industries launch into production around 600 new types of various products.