Ukraine to impose export duties on roundwood and wood chips

Ukraine plans to establish raw wood duty to reduce exports of raw materials from the country. Rada Committee on Industrial and Investment Policy supported the bill #2325 “On establishing the rates of export duties on timber”, which is aimed at stimulating investment activity in the wood industry.

The bill proposes to establish a five-year export tax on exports of wood chips and sawdust of coniferous and deciduous species (customs codes 4401210000, 4401220000) as well as on raw wood (customs code 4403).

Duties on wood chips and sawdust will make up 20% of the customs value of the goods, but not less than €7 per tonne, duties on logs – 40%, but not less than €17 per cubic metre.

Wood exports from Ukraine make up around three million cubic metres. Following the bill approval, the government expects decline in exports and growth of budgetary receipts.