Business worsened the assessment of the customs performance to a two-year low level

21/ 04/ 2021

The integrated indicator of the Customs Index plunged to 3.08 points on a 5-point scale - the lowest figure since the first half of 2019. These are the conclusions of a new wave of expert research conducted by the European Business Association together with DHL Express Ukraine. In the previous period, the index amounted to 3.37 points. Among the components of the index, customs experts rated the quality of customs services the worst, and the work of the Single Window the best. View the presentation The business slightly worsened the assessment of the work of customs authorities in the second half of 2020, although since 2019 the sentiments of customs experts remained conceptually unchanged. Thus, 32% of respondents are mostly dissatisfied, and 11% are completely dissatisfied with the quality of services and professionalism of customs officials. The figures of those dissatisfied with the status quo at the customs have increased significantly compared to last years 10%. At the same time, the number of mostly satisfied experts decreased to 38% vs 54% in the previous period. However, the assessment of the corruption level remains virtually unchanged - 57% believe that corruption at the customs stays at the same level (56% in the previous period). Then we see the polarization in business opinions. While 21% of respondents noticed an increase in corruption, another 22% believe that the level of corruption pressure on business has decreased. Although the Single Window received the highest score among other components of the index, it also deteriorated slightly compared to last year. The percentage of respondents who are mostly or completely satisfied with the use of the system has slightly decreased from 67% to the current 55%. Meanwhile, 18% were dissatisfied with the system (7% in the previous period). One of the reasons for this may be the shortcomings of the Single Window reported by businesses from year to year. These are, first of all, cases when paper documents are demanded in addition to electronic ones and there is a lack of coordinated interaction between customs and control authorities. Anna Derevyanko. EBA Executive Director. When it comes to cooperation with customs over the past six months, the business is noting disruptive reshuffles at the top management level of the State Customs Service as during this period the agency has changed four heads. Of course, this did not add stability to the work of customs. In addition, the EBA community was concerned about unprecedented delays in the clearance of goods and pressure exerted by customs authorities that force companies to overstate the customs value of imported goods. It is quite natural that such an experience has significantly spoiled the assessment of business interaction with the customs authorities. Vadim Sidoruk. General Manager, DHL Express Ukraine. The results of the research revealed problematic areas that arise in the process of interaction between business and customs, which can be solved through concerted and balanced actions of society and government, the active position of companies, open dialogue, and focus on leading international practices. According to the EBA customs experts, the greatest difficulties for business in passing customs control over the past six months are related to the tariff regulation department that required irrelevant documents and made companies overstate the customs value of goods, law enforcement agencies that interfered in customs control procedure, the department on the fight against smuggling, Ukrtranssafety that required certificates of conformity and did not accept European certificates which is contrary to the law, and the State Food Safety and Consumer Protection in the context of phytosanitary control issues. Companies also complain about the length of customs inspections and delays in procedures, which leads to forced downtime, as well as a long waiting time for the preparation of expert opinions in laboratories. For reference: The European Business Association has been measuring the Customs index since 2010. The study consists of three thematic blocks: corruption, quality of customs services, work of the Single Window. The index is measured twice a year. Mark 3 is considered neutral. The maximum score is 5 points. There were 85 customs experts participating in the survey regarding the period of July-December 2020.

The integrated indicator of the Customs Index plunged to 3.08 points on a 5-point scale – the lowest figure since the first half of 2019. These are the conclusions of a new wave of expert research conducted by the European Business Association together with DHL Express Ukraine. In the previous period, the index amounted to 3.37 points. Among the components of the index, customs experts rated the quality of customs services the worst, and the work of the Single Window the best.

View the presentation

The business slightly worsened the assessment of the work of customs authorities in the second half of 2020, although since 2019 the sentiments of customs experts remained conceptually unchanged. Thus, 32% of respondents are mostly dissatisfied, and 11% are completely dissatisfied with the quality of services and professionalism of customs officials. The figures of those dissatisfied with the status quo at the customs have increased significantly compared to last year’s 10%. At the same time, the number of mostly satisfied experts decreased to 38% vs 54% in the previous period.

However, the assessment of the corruption level remains virtually unchanged – 57% believe that corruption at the customs stays at the same level (56% in the previous period). Then we see the polarization in business opinions. While 21% of respondents noticed an increase in corruption, another 22% believe that the level of corruption pressure on business has decreased.

Although the Single Window received the highest score among other components of the index, it also deteriorated slightly compared to last year. The percentage of respondents who are mostly or completely satisfied with the use of the system has slightly decreased from 67% to the current 55%. Meanwhile, 18% were dissatisfied with the system (7% in the previous period). One of the reasons for this may be the shortcomings of the Single Window reported by businesses from year to year. These are, first of all, cases when paper documents are demanded in addition to electronic ones and there is a lack of coordinated interaction between customs and control authorities.

Anna Derevyanko EBA Executive Director

When it comes to cooperation with customs over the past six months, the business is noting disruptive reshuffles at the top management level of the State Customs Service as during this period the agency has changed four heads. Of course, this did not add stability to the work of customs. In addition, the EBA community was concerned about unprecedented delays in the clearance of goods and pressure exerted by customs authorities that force companies to overstate the customs value of imported goods. It is quite natural that such an experience has significantly spoiled the assessment of business interaction with the customs authorities.

Vadim Sidoruk General Manager, DHL Express Ukraine

The results of the research revealed problematic areas that arise in the process of interaction between business and customs, which can be solved through concerted and balanced actions of society and government, the active position of companies, open dialogue, and focus on leading international practices.

According to the EBA customs experts, the greatest difficulties for business in passing customs control over the past six months are related to the tariff regulation department that required irrelevant documents and made companies overstate the customs value of goods, law enforcement agencies that interfered in customs control procedure, the department on the fight against smuggling, Ukrtranssafety that required certificates of conformity and did not accept European certificates which is contrary to the law, and the State Food Safety and Consumer Protection in the context of phytosanitary control issues. Companies also complain about the length of customs inspections and delays in procedures, which leads to forced downtime, as well as a long waiting time for the preparation of expert opinions in laboratories.

For reference:

The European Business Association has been measuring the Customs index since 2010.

The study consists of three thematic blocks: corruption, quality of customs services, work of the Single Window. The index is measured twice a year. Mark 3 is considered neutral. The maximum score is 5 points.

There were 85 customs experts participating in the survey regarding the period of July-December 2020.