Re-exporting Ukrainian sunflower seeds: what businesses need to know
Ukraine’s sunflower seed exports have always been closely regulated, and recent trade rules highlight why companies need to pay attention. For over a decade, Ukraine has been applying a 10 percent export duty on sunflower seeds. If the seeds are exported directly to the European Union, that duty is applied at 0.9 percent in 2025, and will be reduced to 0 percent next year. This reflects the trade preferences under the EU-Ukraine Free Trade Agreement.
At first glance, this seems like a straightforward cost advantage for exporters. But a natural question follows: once those sunflower seeds are imported into the EU at the lower duty, can they be freely re-exported from the EU to a third country?
Ukrainian legal requirements
The short answer is no, at least not without additional steps. Ukraine’s Ministry of Economy maintains an Order with an exhaustive list of goods that require prior approval for re-export of certain Ukrainian products from third countries. Sunflower seeds are on this list.
This means that while the seeds may physically enter the EU under the reduced duty rate, their legal status remains subject to Ukrainian re-export rules. Simply moving them onward to another market without Ukrainian approval would fall outside the law or require additional actions on Ukrainian side.
How is compliance tracked?
There are two main ways Ukraine can ensure these rules are respected.
First, there is post-audit control of Ukrainian exporters. Authorities in Ukraine review export declarations to confirm that goods shipped under the EU preference scheme genuinely reach the declared destination. If a shipment is re-exported without approval, the Ukrainian exporter risks penalties, financial liability, or restrictions on future exports.
Second, cooperation in customs matters between Ukraine and the EU under the Protocol II to the Association Agreement. This framework allows both sides, upon request, to exchange information about shipments or arrange respective investigations, making it possible, inter alia, for Ukrainian authorities to detect onward exports from the EU ports. In other words, re-export from the EU is not invisible.
Risks for EU-based traders
From an EU company’s perspective, it may appear that once sunflower seeds clear customs, they are free to circulate as ordinary goods. But in practice, Ukrainian rules continue to apply.
If re-export occurs without authorization:
- The Ukrainian exporter may face investigation and liability.
- The EU trader may encounter contractual disputes with its Ukrainian supplier.
- Customs cooperation could trigger inspections, delays, or even seizures in the EU.
- Reputational risks could damage long-term relationships in a sensitive commodity market.
- AEO and other compliance-based authorisation might be at risk.
Practical guidance
For businesses involved in this trade, a few steps are critical:
- verify product coverage: sunflower seeds are subject to re-export approval requirements, but the list is longer and should be consulted with other exports;
- secure authorization early: if re-export to a third country is planned, proper compliance with initial shipment authorization requirements should be addressed, double checking on the EU/Polish requirements are recommended to make sure the customs clearance on the EU side of the border is smooth;
- address compliance in contracts: exporters and traders should allocate responsibility for approvals to avoid disputes later, this is a must from both the EU and the Ukraine side;
- stay alert to audits and cooperation mechanisms: enforcement may not be immediate, but checks are systematic and information is shared between customs authorities.
Conclusion
The preferential 0.9 percent duty for sunflower seed exports to the EU creates a clear commercial incentive, but it does not open the door to unrestricted global trading. Ukrainian law requires explicit approval for re-export, and both Ukrainian audits rules and EU-Ukraine customs cooperation ensure that this requirement is not ignored.
For EU-based companies, the key message is simple: treating the EU entry as a back door for third-country trade bears tangible risks, from compliance penalties to supply chain disruptions, and are too significant to overlook.
