Business is concerned about possible expansion of border guards’ powers

26/ 11/ 2024

As reported by experts from the European Business Association, Members of Parliament have developed a draft law that is expected to be registered soon, aiming to amend legislation on the state border. Upon reviewing the draft law informally, representatives of the EBA concluded that it proposes the same changes as the already registered draft law No. 10128 in the Verkhovna Rada. To recap, draft law No. 10128 suggests amendments that expand the powers of the State Border Guard Service of Ukraine, allowing border guards to initiate and independently inspect vehicles and goods at the border, in border zones and controlled areas, as well as beyond these zones in cooperation with the National Police of Ukraine. Under current legislation, border guards may conduct such inspections only jointly with customs officials, as customs inspections fall exclusively under the competence of customs authorities. The European Business Association has expressed concerns about the potential revival of practices where law enforcement agencies, including the State Border Guard Service, interfere in customs clearance processes. The EBA does not support draft law No. 10128 or other legislative initiatives proposing such changes. Businesses are wary that granting excessive powers to border guards could lead to an increase in unwarranted inspections and heighten the risk of abuse. The experience of European countries demonstrates a clear separation of border and customs control functions. This approach minimizes pressure on businesses, improves control efficiency, and reduces corruption risks. Member companies of the EBA emphasize the importance of considering this experience, particularly in the context of Ukraine’s European integration course. According to the EBA’s experts, the proposed approach may negatively impact foreign economic activities, reducing the competitiveness of Ukrainian goods on the global market and potentially leading to a decline in foreign trade. Instead, businesses see the optimization of existing procedures and the use of resources to enhance the efficiency of customs inspections and streamline customs operations as a more effective solution.

To recap, draft law No. 10128 suggests amendments that expand the powers of the State Border Guard Service of Ukraine, allowing border guards to initiate and independently inspect vehicles and goods at the border, in border zones and controlled areas, as well as beyond these zones in cooperation with the National Police of Ukraine.

Under current legislation, border guards may conduct such inspections only jointly with customs officials, as customs inspections fall exclusively under the competence of customs authorities. The European Business Association has expressed concerns about the potential revival of practices where law enforcement agencies, including the State Border Guard Service, interfere in customs clearance processes.

The EBA does not support draft law No. 10128 or other legislative initiatives proposing such changes. Businesses are wary that granting excessive powers to border guards could lead to an increase in unwarranted inspections and heighten the risk of abuse.

The experience of European countries demonstrates a clear separation of border and customs control functions. This approach minimizes pressure on businesses, improves control efficiency, and reduces corruption risks. Member companies of the EBA emphasize the importance of considering this experience, particularly in the context of Ukraine’s European integration course.

According to the EBA’s experts, the proposed approach may negatively impact foreign economic activities, reducing the competitiveness of Ukrainian goods on the global market and potentially leading to a decline in foreign trade.

Instead, businesses see the optimization of existing procedures and the use of resources to enhance the efficiency of customs inspections and streamline customs operations as a more effective solution.