Since May 2015 revenue to the general fund of the state budget from value-added tax on imported goods began to increase. In July-October monthly revenue to the state budget amounted to more than Hr 12 billion, and from November to the end of last year – per month budget received more than Hr 13 billion.
This year tendency remains unchanged: in February revenue from VAT is accounted for Hr 14 billion; in March – Hr 16.2 billion, in April – Hr 14.6 billion.
This result was achieved through the steps to bring the Ukrainian economy out of the shadows. Comparing the data on VAT customs, we can see that Hr 3-4 billion per month were in the shadow.
In addition, State Fiscal Service ensures the development of customs business in other ways. For example, procedure of registration of customs declarations was simplified; 96 percent of customs declarations are issued by State Fiscal Service in electronic form using digital signature. In addition, we significantly reduced the average time of the customs declaration registration: registration of export declaration takes 1 hour, on imports – 2 hours 14 minutes, the declaration without additional control is issued for 15 minutes, and previous declarations – automatically.
In the pilot mode, one used mechanism for making a preliminary decision about application method and criteria for determining the customs value, which corresponding to the European Union standards.
Another EU standard – a “single window” – is being implemented.
State Fiscal Service is also actively working on services electronization – using electronic turn on automatic distribution of customs inspectors during customs clearance.
Joining the New Computerized Transit System is also important. The NCTS is a European wide computerized system of transit cargoes based upon electronic declarations and processing. In fact, it allows you to control the movement of goods. On the same time it is not only the abolition of paper documents in the transit traffic between the countries, but also the integration of customs systems in Europe. With the support of Twinning project experts , customs attaché at the EU and Ukraine Support Group in the European Commission, State Fiscal Service plans to finalize changes to the Ukrainian law on implementing rules for NCTS in 2016. In the direction of capacity building of Customs we approved a new procedure for risk analysis, which provided the ability to create targeting groups not only in the central office, but in each customs.
Systems for Automating Risk Management and Assessment monthly provides automated risk assessments for about 200,000 customs declarations, 290,000 commercial transitions and 1.26 million transitions of passenger vehicles. System operates 102 risk algorithms (risk profiles), about 400 sub-algorithms, more than 87,000 combinations of risk indicators. We plan to continue improving the system.
State Fiscal Service works on: providing the implementation of regional risk profiling; expansion of automated risk assessment algorithms in order to implement the automated production of goods; building capacity for analysis and risk assessment before the arrival of goods / persons to the crossing points; targeting and creating centers using experience of the EU, the US, Canada and others.
In the direction of European integration and the implementation of the Association Agreement with the EU, State Fiscal Service has developed a draft law “On Amendments to the Customs Code of Ukraine (regarding Authorized Economic Operator and Simplified Customs Formalities)”. It assumed the creation of institution of authorized economic operator, which will speed up customs procedures and to establish a new format of cooperation between customs authorities and business. The status of authorized economic operator is granted by issuing a certificate which is recognized throughout the Ukraine customs territory. An enterprise may be issued two types of certificate authorized economic operator “to simplify customs procedures” and “the reliability and security.” The first part provides minimization customs participation and eliminates the “human factor”, the second – faster customs clearance.
In connection with the signing and implementation of the association agreement between Ukraine and the EU, the introduction of customs attache office is also important. This event is a step towards the development of relationships with both government agencies of other countries and foreign companies. Today this position is a part of the Mission of Ukraine to the European Union. The presence of such employee has already proven its effectiveness in relations between Ukraine and the European Commission in customs matters.
In general, the issue of international cooperation in tax and customs fields is a key for us. To strengthen customs control, State Fiscal Services need to join with the international community. We are ready to join the agreement between the countries on the automatic exchange of tax information. This will reduce the time of customs formalities at the border, minimize the human factor, increase the reliability of the goods declaration and efficiency of the fight against smuggling and customs offenses.
Currently the exchange of information with the EU is accomplished with the support of the Twinning project.
Under the Partnership and Cooperation Agreement between Ukraine and the EU, the technical task for the launch of the pilot project from the previous exchange of customs information between Ukraine and the EU was approved.
15 EU member countries will take part in the pilot project: Belgium, Bulgaria, Great Britain, Greece, Estonia, Italy, Latvia, Lithuania, the Netherlands, Poland, Romania, Slovenia, Hungary, Finland and Sweden.
Currently the EU is completing the implementation of internal procedures for launching this pilot project. We expect response from EU this month.
Also from Jan. 1, State Fiscal Service and the State Customs Committee of Belarus have been implementing international technical assistance project PRINEX – “Support for the creation of an electronic system prior exchange of information between customs services of Belarus and Ukraine”. The way forward for us is implementation similar projects with other countries.
As you can see, the process of customs reform is not static. I am sure that very soon you will see the results of the reforms – from service electronization, harmonization of national legislation with the EU Customs Code to strengthen the staff of the customs and fighting corruption.
Roman Nasirov is head of the State Fiscal Service of Ukraine.
