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Business is against the old methods of budget replenishment through customs value indicators

05/ 10/ 2021
  Since the end of September, the business has faced delays in the clearance of goods at customs. According to information from large international companies, customs officials propose to significantly increase the customs value in order to increase revenues to the state budget or send goods for laboratory tests with a reference to the operation of the risk system. Regarding the latter, such tests can take 30-45 days, and businesses simply have to pay a lot of money to the owners of the customs terminal. Anna Derevyanko. EBA Executive Director. There is an impression that the manual adjustment of customs values and indicative prices for goods has returned. It is unfortunate to admit, but since the appointment of Pavlo Riabikin at the end of last year and until September this year, there have been no such problems. And the business thanked Pavlo Riabikin for the settlement of the situation with the customs value. But, unfortunately, now this problem has arisen again. Yesterday, the European Business Association met with the First Deputy Head of the State Customs Service – Mr. Oleksandr Shchutsky. Thus, we discussed the problem that has returned from the dismal past. The community is grateful to the management of the State Customs Service for the prompt response and willingness to discuss specific issues that have arisen for business. The management of the State Customs Service, in turn, confirmed that there are new plans for revenues to the state budget provided by the Government. According to the EBA experts, the increasing pressure on large international companies by the Customs Service does not in any way help to combat gray imports or smuggling, it is only about improving reporting on VAT imports. Transferring funds from one pocket to another does not increase state budget revenues. All VAT on imports immediately reduces the tax liability of companies for VAT on the sale of goods (works) and services. Thus, we have improved customs reports and, at the same time, reduced VAT revenues from the Tax Service, while companies are diverting working capital, which negatively affects the business activity. Moreover, the price of goods is not even a separate object of risk analysis under the Customs Code in contrast to the characteristics of the integrity of importing companies. But unfortunately, the State Customs Service does not take these factors into account. According to the companies, the local customs authorities generate risk criteria at their own discretion. For example, in the Odessa customs when using ISPS (port community information system), customs officers personally add such control forms as inspection, weighing, scanning. Meanwhile, these control forms are not included in the information system of the State Customs Service Inspector 2006. Also, the central office does not have access to ISPS. This is how the business is being pressured which distorts the intentions of the State Customs Service to combat commodity smuggling. We hope that the participants of this meeting could feel zero tolerance of the EBA member companies to the corruption manifested on the part of the State Customs Service. The business community advocates for a systematic solution to these issues, rather than manual control. The situation must be resolved comprehensively, one of the ways is the digitalization of all interactions between business and customs. The European Business Association will continue to monitor the situation and keep it informed.   Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.

Since the end of September, the business has faced delays in the clearance of goods at customs. According to information from large international companies, customs officials propose to significantly increase the customs value in order to increase revenues to the state budget or send goods for laboratory tests with a reference to the operation of the risk system. Regarding the latter, such tests can take 30-45 days, and businesses simply have to pay a lot of money to the owners of the customs terminal.

Anna Derevyanko EBA Executive Director
There is an impression that the manual adjustment of customs values and indicative prices for goods has returned. It is unfortunate to admit, but since the appointment of Pavlo Riabikin at the end of last year and until September this year, there have been no such problems. And the business thanked Pavlo Riabikin for the settlement of the situation with the customs value. But, unfortunately, now this problem has arisen again.

Yesterday, the European Business Association met with the First Deputy Head of the State Customs Service – Mr. Oleksandr Shchutsky. Thus, we discussed the problem that has returned from the dismal past. The community is grateful to the management of the State Customs Service for the prompt response and willingness to discuss specific issues that have arisen for business.

The management of the State Customs Service, in turn, confirmed that there are new plans for revenues to the state budget provided by the Government.

According to the EBA experts, the increasing pressure on large international companies by the Customs Service does not in any way help to combat gray imports or smuggling, it is only about improving reporting on VAT imports. Transferring funds from one pocket to another does not increase state budget revenues. All VAT on imports immediately reduces the tax liability of companies for VAT on the sale of goods (works) and services. Thus, we have improved customs reports and, at the same time, reduced VAT revenues from the Tax Service, while companies are diverting working capital, which negatively affects the business activity.

Moreover, the price of goods is not even a separate object of risk analysis under the Customs Code in contrast to the characteristics of the integrity of importing companies. But unfortunately, the State Customs Service does not take these factors into account.

According to the companies, the local customs authorities generate risk criteria at their own discretion. For example, in the Odessa customs when using ISPS (port community information system), customs officers personally add such control forms as inspection, weighing, scanning. Meanwhile, these control forms are not included in the information system of the State Customs Service “Inspector 2006”. Also, the central office does not have access to ISPS. This is how the business is being pressured which distorts the intentions of the State Customs Service to combat commodity smuggling.

We hope that the participants of this meeting could feel zero tolerance of the EBA member companies to the corruption manifested on the part of the State Customs Service.

The business community advocates for a systematic solution to these issues, rather than manual control. The situation must be resolved comprehensively, one of the ways is the digitalization of all interactions between business and customs.

The European Business Association will continue to monitor the situation and keep it informed.

 

Be the first to learn about the latest EBA news with our Telegram-channel EBAUkraine.

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