The state customs service on Ukraine’s western borders may undergo dramatic transformation because of the free-trade zone that started this year between Ukraine and the European Union.
In a move to bring Ukrainian customs practices closer to
European standards, the government plans to grant the status of
“authorized economic operators” who meet required standards. Such a
designation makes them eligible for
simplified procedure of customs clearance.
The move requires parliament’s approval.
The government will also experiment with outsourcing some
customs functions on the western border to foreign companies. On Feb.2, the
Finance Ministry will propose its plan to government.
“This should help to involve international companies with
experience in transparent and service organization of customs authorities work
to reforming the Ukrainian customs points,” Natalie Jaresko, Ukraine’s finance
minister, told a news conference in Kyiv on Jan. 26.
According to the chief of the Ukrainian fiscal service,
Roman Nasirov, British government consultancies as Crown Agents and Adam Smith
International are considered as candidates.
A tender launch has been delayed, however.
The Ukrainian customs service is part of the State Fiscal
Service of Ukraine, within the Finance Ministry.
Critics say the idea is tantamount to acknowledging its
inability to end corruption at the state customs service. Outsourcing of
customs governance might even require changes to the Constitution.
“According to the Constitution we cannot give to the private
companies the state function,” said Konstyantyn Likarchuk, a former deputy
chief of the State Fiscal Service in charge of the state customs service.
Igor Dankov, chief of the indirect taxation practice at EY, told the
Kyiv Post that the government’s idea “can be viewed as a new experiment
and experience which can show that the customs service can work differently and
with better quality…yet, this is not a universal remedy for all problems in
customs, so we should not place too high stakes on it to avoid disappointment.”
The
Ukrainian customs service has been mired by allegations of corruption and
inefficiency. News about graft scandals often hit the headlines.
On Jan. 26,
Jaresko ordered the fiscal authorities to re-check more than 30,000 declarations
of imports via simplified customs clearance in 2015. The reason is that some
customs officers allowed businesses to import cargos without permission of
those who perform risk analysis to see if the company is trustworthy.
Consequently, Jaresko said disreputable businesses were evading paying taxes by
understating the value and weight of goods.
Kyiv Post writer Olena Savchuk can be
reached at [email protected]
