Ukrainian President Volodymyr Zelensky has signed Law No. 6490-d, initiating a comprehensive reform of the State Customs Service. The law is set to come into effect on November 1, as confirmed by Yaroslav Zheleznyak, the First Deputy Chairman of the Finance Committee of the Verkhovna Rada and one of the reform's initiators.
"This day has come. The law on customs reform has been signed. It will come into force on November 1," Zheleznyak announced.
The customs reform is a significant structural benchmark supported by the International Monetary Fund (IMF), the World Bank, and the United States. It has also garnered support from various business associations, emphasizing its importance for Ukraine's economic development and integration with international standards.
Key Provisions of the Customs Reform Law
The new legislation introduces several important changes aimed at enhancing transparency, efficiency, and accountability within the State Customs Service:
Revised Selection Procedure for Leadership Positions:
- Implements a new competitive selection process for the position of the Head of the State Customs Service.
- The process is modeled after best practices from anti-corruption bodies like the National Anti-Corruption Bureau of Ukraine (NABU) and the Specialized Anti-Corruption Prosecutor's Office (SAPO).
Inclusion of International Experts:
- Engages international experts with high professional competencies, particularly those with at least five years of experience in law, economics, or corruption prevention.
- These experts will participate in open competitions to ensure a transparent and merit-based selection process.
Transparent Decision-Making by the Competition Commission:
- Establishes a clear algorithm for decision-making within the competition commission.
- The commission will recommend one candidate—the winner of the competition—to the Prime Minister for appointment.
Autonomy in Personnel Management:
- Grants the new Head of the State Customs Service the authority to shape the personnel structure of customs authorities.
- Allows for the appointment of deputies at the Prime Minister's request, based on the Head's proposals.
- Eliminates the requirement to coordinate appointments or dismissals of middle management with the Minister of Finance.
Annual Independent Audits:
- Introduces mandatory annual independent audits of the customs authorities' effectiveness.
- A negative audit result can be grounds for the dismissal of the Head of the State Customs Service.
Specific Recruitment Requirements:
- Defines clear criteria for recruiting customs officials.
- Includes a one-time certification process to ensure current officials meet the necessary qualifications for their positions.
Determination of Employee Salaries:
- Establishes transparent guidelines for setting employee salaries within the customs service.
Alignment with International Standards
This reform aligns with Ukraine's commitments under the EU-Ukraine Association Agreement and is part of the National Revenue Strategy for 2024–2030. It represents a crucial step toward harmonizing Ukrainian customs legislation with that of the European Union, facilitating trade and economic cooperation.
On August 22, the Verkhovna Rada adopted a draft law that moves Ukraine closer to fully applying EU customs legislation. This adoption allows businesses to adapt to updated rules in preparation for the transition to the new Customs Code.
