Russian Grain Union approached to Vladimir Putin, President of the Russian Federation, with a letter requesting to instruct the Government of Russia to improve the decree on imposition of a new mechanism of the customs duties on wheat exports.
In particular, the mechanism for calculating of the export duties, which becomes active since July 1, was developed without participation of the business community, and is a "non-transparent, corrupt dangerous, and bears significant risks for development of the agriculture in Russia”.
Also, the Russian Grain Union considers it necessary to increase the price cap for activation of the customs duties from 11`000 RUR/t to 13`000 RUR/t, which would allow dampening the potential risks for participants of the grain market.
In addition, it requires to adjust the standard which uses the official foreign currency exchange rates of the Central Bank for calculating the export duties, applied during registration of the bank transaction certificate. The current mechanism does not take into account the fact that at the time of execution of the contract, foreign exchange rates and world wheat prices may significantly differ.
Also, the Russian Grain Union proposed to free hard and seed wheat from the reporting export duty. The Union believes that the budget funds from collecting the duties, should be directed towards the targeted support of grain production in Russia, and compensation payments to agricultural producers, selling the grain for exports.
