Exporting Rice to the Ukraine

Question posted by Jamil Nawaz, on behalf of Prince Basmati Rice Limited in N10

We are a UK limited company involved in the sale of rice, both within our own UK market and for export globally. We have been interacting with an agent in the Ukraine who has a buyer 'lined' up for our products. We have been advised that we need to register our company and any of our rice products that we wish to sell into the Ukrainian market with a 'Heath Department' there. We have a fee to pay for the registration of our company and rice products and have been quoted close to $3000.00. This fee apparently needs to be paid in advance before we can engage in selling our rice in the Ukraine. Has anybody exported food products to the Ukraine and did they have to pay a fee to register their company and food products with the Health Department in the Ukraine ? The agent proposing this is making the claim that no foreign company exporting food products to the Ukraine can proceed without this registration. Thank you in advance for any feedback or response.

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Hi Jamil,

Our company specialize in developing sales for UK companies abroad.

If you are intending to have your own independent set up in Ukraine, then of course you need to register a company there and retail or wholesale or distribute your products locally. In addition to that, you will need to set up a warehouse, office etc..

If you are exporting your goods to a buyer in the Ukraine, then the buyer (importer) normally already has a business setup and registering a company is not needed.

As it is a food item, some countries request some form documentations and notify the Ministry of Health etc...normally it should not be complicated.

If i were you, I would discuss with the buyer/agent of your goods and build that one off cost in to your pricing of the first order and agree wether they cover it or you cover it or 50/50.
(all depends on the order, for example if it is a one off, or if its regular.)

Regarding your product, we can provide market research and put you in touch with importers interested in becoming sole agents in the following countries:
Sierra Leone, Senegal, Nigeria, Angola, Ghana, Gambia, Liberia, Guinea, Tanzania, Namibia, Botswana and others in the region and also cover other continents

We do on the field market research and we will represent your products in exhibitions which we regularly hold in the countries.
Moreover, we provide the after sales service assistance with the export and payment process, the monitoring of stock levels in the target country as well as review and advise the importer performance for distribution and marketing.

If ever you need any assistance in increasing your global sales, please contact us on 0161 327 2027 or info@globalbusinessfrontiers.co.uk.

Our standard package covers research and business development in 3 countries over a 12 month period and includes the after sales service.
You can kindly get an overview on what we do on www.globalbusinessfrontiers.co.uk

best regards
Nino

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Dear Jamil
I would advise you carry out some due diligence regarding this company. you could ask UKTI in your area to help you and /or your local Enterprise Europe Network team as we have an office in Ukraine too who could help with the research into this company. please contact your local teams on
tel: 020 7234 3000 or email: export@uktilondon.org.uk
tel: 020 7940 1512 for Enterprise Europe Network London office

kind regards
Mathilde

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Dear Jamil,
In order to answer your question, can you advise the custom code for the Product you are intending to sell.
Thank you
Chris Hibbert
Budamar Shipping Ltd
01923 836192
Chris@Budamar.com

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Dear Jamil,
As per our previous email correspondence, I can only confirm that we could not find such a requirement as “registration of rice products with health departments”. Moreover, the research I did regarding the contacts of the agent, buyer and “health department” in Odessa raised certain suspicions whether they provided you with the genuine information.

Kind regards,
Oksana

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David Payne, on behalf of Bathyscaphe LLC in KT8.

Dear Jamil
It is common practice in Ukraine for advance payments prior to any service provided. This norm is especially correct for all foods and drugs Health and Safety Department approvals for OTC sales in the Ukraine. the Health department will have to certify the quality origin of your product, and to this end I believe your agent importer has already provided this information. It is not necessary to set up a company in Ukraine until you wish support your products, their import, distribution and sales support can be supported by your importer. In the short term you will need to communicate the product as it is wise in Ukraine to differentiate your brand versus the multitude of similar brands on shelf. If you do not, it will be very soon when you recognise price sensitivity is the answer to sales or even low or unfavourable turnover. Often the importer distributor at this stage loses confidence in supporting your product, then rather than supporting the sales 100% you can find he will take a back seat approach to aiding the growth of your brand.
Be sure of your importer, there are some very reliable companies to commence our start up. If you need help defining these please let me know.

Best regards
David Payne

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