Turkish 130% import duty on grain will hardly affect Ukrainian export – Ministry of Agriculture

Türkiye plans to put import duty on grain back up to 130% from 1 May, but 95% of imported Ukrainian agriculture products will continue to be zero-rated.

Source: press service of the Ministry of Agriculture and Trade of Ukraine

Starting from 1 May, Türkiye plans to reintroduce import duty on key grains for all exporter states. These key grains include wheat, barley, maize, rye, oat and sorghum, which will be subject to 130% import duty.

Türkiye is a major importer of Ukrainian wheat. According to data from the State Customs Office of Ukraine, Türkiye imported $168.8 million worth of Ukrainian wheat in the first quarter of 2023, which is 17.7% of all wheat exported from Ukraine.

However, the Ministry of Agriculture remarked that this import duty will not apply to most Ukrainian grain, as Ukrainian products are predominantly imported by Türkiye for sale to third countries and therefore import duty is not payable on them.  

There are two import regimes in Türkiye.

The first regime concerns products for domestic consumption. It is on this type of product that Türkiye first announced a 0% rate of import duty. The validity of this preferential regime has now expired, and the 130% rate of import duty will be reimposed.  

The second regime concerns products that will be sold on to third countries before or after processing. Import duty is not payable on these products.

Most of Ukraine's exports to Türkiye fall under the second import regime.

"In percentage terms, only 5% of Ukrainian grain imported by Türkiye falls under the first regime, under which import duty has been reimposed," the Ministry of Agriculture explained.

Background:

From 1 May onwards, Türkiye will impose import duty on wheat, barley and maize in the amount of 130% of their value.

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