Ukraine to Overhaul Customs System with New Legislation

by Roman Cheplyk
Wednesday, September 18, 2024
2 MIN
Ukraine to Overhaul Customs System with New Legislation

Ukraine has taken a significant step towards overhauling its customs system with the adoption of draft law No. 6490, “On Amendments to the Customs Code on the Introduction of Certification of Officials of Customs Authorities.”

This move aims to introduce transparency, efficiency, and international standards into the country's customs operations.

Key Aspects of the Overhaul:

  • Legislative Approval: The draft law was passed with the support of 260 members of parliament, as announced by Yaroslav Zheleznyak, First Deputy Head of the Verkhovna Rada Committee on Tax and Customs Policy.

  • International Commitments: The adoption of this law fulfills Ukraine's obligations to the International Monetary Fund (IMF), the World Bank, and the United States, signaling the country's commitment to improving its customs system in line with international best practices.

  • Customs Reboot: The law proposes a complete reboot of the customs office, modeled after the Bureau of Economic Security (BEB). This includes conducting a transparent competition for the appointment of the Head of the State Customs Service, with participation from international organizations.

  • Political Independence: The Chairman of the State Customs Service is granted political independence, with provisions for dismissal only based on audit conclusions, ensuring the role's impartiality and effectiveness.

  • Employee Re-certification: All customs employees will undergo re-certification within 18 months following the appointment of the new Chairman. This process aims to ensure that only qualified and competent personnel serve in the customs authority.

  • Role of International Representatives: Half of the members of the attestation commissions for management positions will be selected by international representatives, based on proposals from the business community. This involvement is intended to maintain transparency and objectivity in the selection process.

  • Salary Reforms: The law includes provisions for increasing salaries to align with legal standards, which is expected to enhance the efficiency and integrity of customs officials.

Objective:

The reform aims to enhance budget revenues by creating a more efficient, transparent, and internationally aligned customs system. By introducing international standards and ensuring the political independence of customs officials, Ukraine seeks to build a more robust and accountable customs framework.

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