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LAW OF UKRAINE

of June 24, 2004 No. 1877-IV

About the state support of agricultural industry of Ukraine

(as amended on 05-11-2020)

Section I General provisions

Article 1. Purposes and scope of the Law

1.1. This Law determines bases of state policy in budget, credit, price, regulatory and other spheres of public administration by production incentive of agricultural products and development of the agrarian market, and also ensuring food security of the population.

1.2. This Law does not regulate the questions determined by the Land code of Ukraine.

1.3. Bases of state policy of support of insurance of agricultural products are regulated by the Law of Ukraine "About features of insurance of agricultural products with the state support.

Article 2. Determination of terms

For the purposes of this Law terms are used in the following value:

2.1. The Agrarian exchange - the legal entity created according to the Law of Ukraine "About commodity exchange", falling under regulation of regulations of such law and Articles 279 - 282 Economic codes of Ukraine (taking into account the features determined by this Law) and rendering services to subjects of managing according to the conclusion the exchange agreement (contract) on agricultural products, commodity derivatives which underlying asset are agricultural products, hypothecation certificates and mortgage mortgages, and also on carrying out settlement and clearing activities for them.

2.2. The agrarian market - set of the legal relationship connected with the conclusion and accomplishment of civil agreements on agricultural products.

2.3. Underlying asset - value term of the right to acquisition or sale of separate subject to the state price regulation on urgent conditions.

2.4. The exchange account - the passive active account opened in settlement and clearing system of the exchange.

2.5. No. 985-IX is excluded according to the Law of Ukraine of 05.11.2020

2.5-1. No. 985-IX is excluded according to the Law of Ukraine of 05.11.2020.

2.6. No. 985-IX is excluded according to the Law of Ukraine of 05.11.2020.

2.7. The marketing period - the period which is beginning since month in which it begins to be delivered (to be on sale) separate type of products of crop production of the corresponding harvest, and coming to an end with the last date preceding month in which it begins to be delivered (to be on sale) the same type of products of crop production of the following harvest. For other types of agricultural products the marketing period is equal to one fiscal (financial) year.

For the purpose of financial and budgetary planning the marketing period shall be multiple to complete calendar month.

2.8. Local requirements - the needs of territorial bulk for amounts of agricultural products for their consumption by budgetary institutions and organizations which content is performed at the expense of means of the local budget within own or delegated powers of such territorial bulk.

2.9. Monitoring of the agrarian market - system of regular observations in the agrarian market which is performed during the marketing period by collection, processing, the analysis and illumination of price information of demand and amounts of commodity offers on agricultural products and products of its conversion for the purpose of the characteristic of current status of the market, forecasting and preparation of offers.

2.10. Immediate delivery (further - spot) - delivery of goods in the organized agrarian market on the conditions providing transfer into the ownership or the order of such goods to the partner within five working days following behind day of the conclusion of the relevant civil agreement in case of accomplishment by such partner of its conditions.

2.11. Force majeure circumstances - the circumstances which arose owing to decision making of legislative or normative and legal nature, obligatory for subjects of the agrarian market according to the legislation, or arose owing to natural disaster, including the fire, flood, drought, frosts, hail, earthquake, military operations or public disorders and also on other circumstances which could not be managed by the agreement party (contract), including yield loss or its parts owing to adverse weather conditions, the sudden termination of supply of water, heat, the electric power, oil products or the gas which is not connected with failure to pay their cost.

2.12. The organized agrarian market - set of the legal relationship connected with the conclusion and accomplishment of civil agreements which subject are agricultural products, on the standardized conditions and details the exchange agreement (contract) and to rules of the Agrarian exchange.

2.13. Food security - the security of vital interests of the person which is expressed in guaranteeing by the state easy economic access of the person to food for the purpose of maintenance of its regular vital activities.

2.14. Risks of the organized agrarian market - the risks of failure to carry out of conditions the exchange agreement (contract) which are subdivided on system and standard:

a) systemic agrarian risk - risk of mass failure to carry out of conditions the exchange agreement (contract) arising owing to action of force majeure circumstances which cannot be provided both with exchange guarantees, and the measures of the state price regulation determined by this Law;

b) standard agrarian risk - the risk which is not system and provided with system of exchange guarantees and/or measures of the state price regulation.

The specified classification of risks is used only for the purposes of this Law.

2.15. Agricultural products (agricultural goods) - the goods specified in the foreign trade activities groups 1-24 UKT according to the Law of Ukraine "About the Customs tariff of Ukraine" if at the same time such goods (products) are grown up, fattened, caught, gather, made, made, processed directly by the producer of these goods (products), and also products of processing and conversion of these goods (products) if they were made on own or leased capacities (areas).

The waste received in case of production of agricultural products (goods) determined in the foreign trade activities groups 1-24 UKT according to the Law of Ukraine "About the Customs tariff of Ukraine" also belongs to agricultural products (goods) namely: organic fertilizers (manure, humus, bird's afterbirth, and also polova, tops of vegetable and so forth), mixes organic and fertilizers in which the share of organic fertilizers constitutes more than 50 percent from total weight of such mixes and also all biological fuel and energy received in case of conversion and utilization of agricultural products (goods) and their waste (biogas, biodiesel, ethanol, solid biological fuel in which production agricultural products (its waste) in the amount of more than 50 percent from all used products, electrical energy, vapor, hot water and so forth were used).

The paragraph third Item 2.15 of Article 1 is excluded.

Regulations of this Item do not extend to producers of excise goods, except the companies of primary winemaking delivering wine materials (the UKT foreign trade activities code 2204 29 - 2204 30).

2.15-1. The agricultural producer - the legal entity irrespective of form of business or physical person entrepreneur whose main activities is production of agricultural products and/or cultivation, cultivation, catch of fish in internal reservoirs (lakes, ponds and water storage basins) and its conversion on own or leased capacities, including actually produced raw materials on conditions to be provided, and also implementation of transactions on its delivery and in such activities specific weight of cost of agricultural goods / services constitutes at least 75 percent of cost of all goods / services delivered during the previous 12 consecutive accounting tax periods in total.

The family farms registered by payers of the single tax of the fourth group according to Chapter 1 of the Section XIV of the Tax code of Ukraine also treat agricultural producers.

2.15-2. Agricultural enterprise - the legal entity who is agricultural producer in sense of Item 2.15-1 of this Article.

2.16. The derivative - the standard document which answers the definition given in the Tax code of Ukraine.

2.17. Trading (exchange) session - the period of time which is beginning with the moment of opening of the exchange biddings and coming to an end with the moment of their closing.

2.18. Trade section - part of the Agrarian exchange where as object of stock exchange trading commodity derivatives (except the forward) or the subjects to the state price regulation intended for their export act.

2.19. Delivery conditions - the conditions determined in agreements (contracts) according to which the parties have the right to use the known international customs, recommendations, rules of the international bodies and organizations if it is not forbidden directly or in exclusive form present and other laws of Ukraine.

If the goods are on sale or acquired on the Agrarian exchange, then the free warehouse is considered basis of delivery of such goods for the purposes of determination of its price.

2.20. Item 2.20 of Article 1 is excluded.

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