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Food & Beverage

Policy Progress: Application of Antidumping Duty on Imported Polymers for Food Packaging was Canceled

Policy Progress: Application of Antidumping Duty on Imported Polymers for Food Packaging was Canceled

Notification applying preliminary special measures for the import of polymeric materials to Ukraine, despite the country of origin and export, was published in the Government's newspaper "Uryadovy Courier" on June 24, 2020. According to the text of notification, it canceled the previous decision of the Interdepartmental Commission on International Trade #CП-445/2020/4411-03 dated May 22, 2020 (Commission's decision) and introduced a special duty in the amount of 18% on the import of certain polymeric materials to Ukraine, produced on the national market.

According to the above-mentioned Commission's decision, it was assumed to introduce preliminary special measures on imports of polymeric materials to Ukraine by applying a special duty in the amount of 18% for their import to Ukraine for a period of 200 days, despite the country of origin and export. Such situation created a range of potential risks for the food industry, including the reduction of competitiveness of Ukrainian producers of finished goods; loss of domestic and foreign markets; job cuts; loss of tax revenue and increase in food prices, as the national market of raw polymer materials is not able to properly meet the needs of producers.

Given the above risks, the American Chamber of Commerce in Ukraine (the Chamber) asked the responsible stakeholders to reconsider the Commission's decision. The Chamber welcomes its elimination and limitation of duties on most raw materials used to produce polymeric food packaging materials.