Business news from Ukraine

Ukrainian Prime Minister presented key elements of customs reform

5 March , 2023  

The situation at customs can be significantly improved in a year by implementing six key steps, including common bases with the EU and joint checkpoints, electronic queues, rotations, scanners and digitalization, Ukrainian Prime Minister Denis Shmygal said at a press conference in Kiev on Friday.
“I have a clear understanding of what the state needs to do now at customs, and we are actually on that path. I voiced it, there are five or six steps. The first one is to enter into a common database system with the EU,” said the prime minister.
He explained that it will allow to load a car in any point of Europe, to take a single customs declaration and to transit with it through any checkpoint in any city of Ukraine and to clear customs by this single declaration.
Shmygal noted that now Ukraine gets access to certain sections of this register, but the base of the customs value remains closed for the time being.
“Now we are working with the European Commission on a political decision to open full access to the joint registers of databases of Europe, to make 99% impossible as an element of abuse through customs mechanisms,” – said Prime Minister.
The second step he called increasing the number of checkpoints with joint control and with shared databases, as currently there is only one such checkpoint, built for “Euro 2012” in the Lviv region.
The third element of the reform, according to Shmygal, is the rotation of employees. “Why are there temptations at customs? Because when people work long in one place, there is an opportunity to see and negotiate. We have to overcome this temptation,” said the prime minister.
Shmygal stressed that scanners will be an important innovation, because they are necessary for the implementation of the fifth element – the risk-oriented system, which will reduce the proportion of goods subject to customs and border control to 7%. Reliable exporters and importers will only need to check the car on the scanner to confirm the absence of drugs or migrants, explained the head of the government.
The sixth element the prime minister indicated digitalization, namely the introduction of electronic queuing. According to him, the implemented experiment with the electronic queue at the Krakowiec point is a success, and now the state plans to extend it to all points.
“I would call all of these approaches the Six Elements of Customs Reform. They are all simple, but they will practically eliminate the possibility of corrupt influences at customs at all. We are working on this now, there is a team solution. It cannot be done in a day or a month, but it can be done in a year,” explained Shmygal.
Speaking about personnel decisions, he pointed out that formally State Customs Service is within the competence of the Ministry of Finance. “But I do not want to and I can’t put the responsibility on the Minister of Finance, because this is a joint responsibility of the government team,” said the prime minister.

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