Ukrainian businesses see no positive changes at customs: corruption level still high

We see that the reform of customs offices and services has long been relevant, EBA Executive Director Anna Derevyanko said.

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The majority of business representatives – about 59% – think that corruption in Ukraine's customs remains at the same level, while about 36% of businesses are extremely dissatisfied with the quality of customs services and professional level of customs officers, according to the study of Ukraine's customs index, conducted by the European Business Association (EBA) from January to August 2018.

As reported, the customs index in the first half (H1) of 2018 reached 2.91 points, whereas it was at 3.05 points in H2 2017 and 2.9 points in H1 2017.

"Indicators are decreasing. According to the survey, we see that the reform of customs bodies and services has long been relevant. Although some changes are taking place, businesses are waiting for the start of real action and real reforms. Delay can further complicate the situation. In addition, the country is losing opportunities for development without qualitative changes," EBA Executive Director Anna Derevyanko said.

In the opinion of business representatives, simplification and acceleration of customs formalities, predictability and clarity of procedures, as well as optimization of phytosanitary, environmental and radiological controls are critically important.

Read alsoBudget receipts from customs duties up 15% in January-July

Since February 2018, the application of a "single window" system has become mandatory for the imports of goods. In the first half of 2018, companies that use the system accounted to 91.4%, compared to 79% in H2 2017.

At the same time, only 37.7% of respondents are satisfied with the operation of the "single window." Another 32.1% remain undecided. The Association also noted the importance of eliminating deficiencies in the system's operation. The EBA Customs Committee say entrepreneurs cannot plan their activities for a long time due to unforeseen delays in the passage of customs procedures.

"And this is a real problem, especially for large and medium-sized businesses. The business community hopes that the issue will be resolved as quickly as possible and draft law No. 7010 on the 'single window' system will be adopted in autumn. After all, its key goal is to reduce time of customs clearance of goods and make customs control more effective," the report said.

The study of the customs index contained three key topical units, namely corruption, quality of customs services, and operations of the "single window" mechanism. The index is measured twice a year. Mark of 3 points is considered neutral, while the maximum score is 5 points. A total of 58 experts participated in the study.

Read alsoUkraine annually loses over EUR 4 bln due to corruption at customs – media

As UNIAN reported earlier, the government on February 1 introduced a differentiated approach to the mandatory application of the "single window" system, taking into account the specifics of transport operations. At the same time, the possibility of voluntary application of the "single window" system was extended for one year in cases of goods moving by transit, export of goods by sea, rail, and imports by postal or international express mail, and declaring goods in new customs offices, where the "single window" system had been used for less than 90 days.

In July 2018, the Verkhovna Rada, Ukraine's parliament, adopted a draft law on electronic customs clearance procedures through the "single window" mechanism, as well as on streamlining and simplifying customs procedures. Ukrainian President Petro Poroshenko vetoed the law.

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