Сustom reform

One of the priorities of the Ministry of Finance is the reform of the State Fiscal Service which should be transformed from a system of “checkers” into a transparent service for business and citizens.

As a part of the reform of the SFS, the Ministry of Finance and the Government of Ukraine are pursuing a systemic customs reform which should establish a new concept of the relationship between the customs and other controlling authorities, on the one side, and companies involved in foreign trade, on the other side.

What’s the goal of the reform?

The goal is to create a fair, diligent and transparent customs system. The customs should cast away its previous image as a bureaucratic fiscal authority which hampers international trade and thus the development of market economy. The reform must turn the customs into a modern and transparent service for business and citizens.What tasks does the Ministry of Finance have?The Ministry of Finance lists 12 key areas of the customs reform including:— audit and regulation of the customs procedures and processes in line with international standards;
— ensuring systemic legal frameworks for the customs;
— overhaul of the customs IT system;
— data security at the customs;
— reform of the customs value assessment;
— development of international customs cooperation;
— creation of an in-house monitoring center;
— development of an automated risk management system;
— new human resources policy.

What has been done so far?

— The automated system “Single Window” has been launched at the border and customs clearance points.
Result: customs procedures have been made significantly easier and less time-consuming. It should make life easier for business and remove opportunities for corruption at the customs.
— Photo and video-surveillance of customs operations has been launched.
Result: customs officers are now better monitored, corruption has been reduced.
— The Inter-Agency Target Center and mobile groups for the prevention of corruption at the customs have been launched.
Result: rapid-reaction operations of the mobiles groups guided by the Target Center’s analysts are aimed to detect and to tackle law violations by the customs authorities and business. These operations should reduce corruption and abuse of office at the customs.
— The automated distribution of customs declarations for clearance has been implemented.
Result: now customs officers can’t manipulate documents and choose shipments for customs clearance at their discretion. This should significantly reduce corruption.
— International customs cooperation has been intensified – customs cooperation agreements have been signed with the USA, Croatia, Bosnia and Herzegovina etc.

What’s next?

— The Interregional SFS customs office should start its operation soon to enhance control over the operations of the customs clearance points and to reduce corruption.
— In September the Parliament should examine the draft law on the implementation of authorized economic operations in Ukraine, which is one of key elements in the customs cooperation between Ukraine and the EU.
— Further work in the 12 key areas of the customs reform.

What should these steps deliver?

Reforms + customs = high-quality service-oriented public agency:

— we will set simple and transparent regulations compatible with the EU standards;
— we will automate the customs procedures, reduce their number and make them less time-consuming;
— we will minimize human factor in the decision-making process at the customs and other controlling authorities;
— we will remove opportunities for corruption;
— we will strengthen our crackdown on smuggling and customs rules violations;
— we will restore trust to the customs authorities.

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