fbpx
Size of letters 1x
Site color
Image
Additionally
Line height
Letter spacing
Font
Embedded items (videos, maps, etc.)
 

A third of the companies have problems with adjusting the customs value

28/ 04/ 2023
  According to the latest survey by the European Business Association, the Customs Index for 2022 has increased to 3.17 points out of 5. The experts who participated in the survey rated the quality of customs services as the worst component, while the dynamics of the level of corruption at customs were rated the best. For comparison, the index in 2020 was 3.08 points. View the presentation Its important to note that the customs situation underwent significant changes during the period of martial law. Freight traffic was mainly concentrated on the western border, and state regulation of currency transactions and physical transportation of goods limited imports. Customs authorities had to transfer control functions and personnel to the western regions of Ukraine during the wars first few weeks. These difficult conditions may have contributed to an increase in integrity in this area, which is indicated by the dynamics of the reduction of corruption. The level of corruption has slightly improved compared to previous years, according to recent assessments. While 56% of respondents did not notice any changes, 24% believe it has decreased somewhat and 10% believe it has significantly decreased. However, 10% have noticed an increase in corruption at customs. Assessments of the quality of customs services and the professionalism of officials have also improved somewhat. 52% of respondents rate the quality of customs services as satisfactory, while 24% consider it high. Dissatisfaction with customs has significantly decreased from 43% in 2020 to 24% in 2022. However, the highest assessment of state control bodies based on the principle of the Single Window has fallen somewhat this year. The percentage of customs experts who positively assess the interaction of state bodies decreased from 55% in 2020 to 34% in the current wave. Despite this, the majority of respondents still hold a positive view, 58% find the interaction with state bodies under the Single Window system to be satisfactory, while only 8% express dissatisfaction. Oleksandr Lazarev. Co-Chairman of the EBA Customs Committee. Meanwhile, the business welcomes the introduction of new electronic services and the significant expansion of the functionality of the information web portal One Window for International Trade. Businesses face numerous challenges when working with customs authorities, including the need to unify customs procedures across different regions, dealing with the bureaucracy that demands unnecessary documents, and adhering to Ukrainian customs legislation, which does not fulfill the customs requirements of the legislation of Ukraine on customs matters or its loose interpretation, additionally, the lack of leadership in the central body of the State Customs Service. Our survey revealed that some companies 37% had difficulty adjusting customs values, while others 26% reported issues with the reclassification of UKT ZED codes by customs authorities. We observe the readiness of companies to obtain the status of authorized economic operators, in particular, 66% of companies plan to use individual simplifications or to obtain AEO authorization in general. Only a small percentage 4% currently use the joint transit procedure, while even fewer 2% use transit simplifications. Oleg Kyryievskyi. Co-Chairman of the EBA Customs Committee. It can be noted that last year’s changes to customs legislation (publicly - customs visa-free) somewhat stimulated businesses to obtain simplifications, as well as certain complications of customs procedures that will come into force on November 7, 2023. Despite the increased interest in AEO and simplifications, it is not worth counting on too fast dynamics - the term of assessment by customs authorities, as well as the time required for companies to prepare, is quite significant. Natalia Artemchuk. Manager of the Tax and Customs Committees of the European Business Association. Although we were happy to note the growth of individual components of the index, at the same time, unfortunately, business does not see systemic positive changes in the work of customs. Instead, companies continue to report on artificial obstacles to customs clearance, groundless inspections, requests for additional documents, and the influence of law enforcement agencies on the work of customs officers. At the same time, 95% of the illegal decisions of customs authorities are successfully appealed by companies in court, so what makes customs authorities create additional problems for transparent business is a rhetorical question. For reference: The Customs Index has been conducted by the European Business Association since 2010. The integral indicator of the index consists of three components - corruption, quality of customs services, and work of the Single Window. The index is measured once a year. Mark 3 is considered neutral, the maximum score is 5 points. The survey was conducted for 2022, and 50 customs experts from member companies of the Association took part in it.

According to the latest survey by the European Business Association, the Customs Index for 2022 has increased to 3.17 points out of 5. The experts who participated in the survey rated the quality of customs services as the worst component, while the dynamics of the level of corruption at customs were rated the best. For comparison, the index in 2020 was 3.08 points.

View the presentation

It’s important to note that the customs situation underwent significant changes during the period of martial law. Freight traffic was mainly concentrated on the western border, and state regulation of currency transactions and physical transportation of goods limited imports. Customs authorities had to transfer control functions and personnel to the western regions of Ukraine during the war’s first few weeks. These difficult conditions may have contributed to an increase in integrity in this area, which is indicated by the dynamics of the reduction of corruption.

The level of corruption has slightly improved compared to previous years, according to recent assessments. While 56% of respondents did not notice any changes, 24% believe it has decreased somewhat and 10% believe it has significantly decreased. However, 10% have noticed an increase in corruption at customs.

Assessments of the quality of customs services and the professionalism of officials have also improved somewhat. 52% of respondents rate the quality of customs services as satisfactory, while 24% consider it high. Dissatisfaction with customs has significantly decreased from 43% in 2020 to 24% in 2022.

However, the highest assessment of state control bodies based on the principle of the Single Window has fallen somewhat this year. The percentage of customs experts who positively assess the interaction of state bodies decreased from 55% in 2020 to 34% in the current wave. Despite this, the majority of respondents still hold a positive view, 58% find the interaction with state bodies under the Single Window system to be satisfactory, while only 8% express dissatisfaction.

Oleksandr Lazarev Co-Chairman of the EBA Customs Committee
Meanwhile, the business welcomes the introduction of new electronic services and the significant expansion of the functionality of the information web portal "One Window for International Trade".

Businesses face numerous challenges when working with customs authorities, including the need to unify customs procedures across different regions, dealing with the bureaucracy that demands unnecessary documents, and adhering to Ukrainian customs legislation, which does not fulfill the customs requirements of the legislation of Ukraine on customs matters or its loose interpretation, additionally, the lack of leadership in the central body of the State Customs Service.

Our survey revealed that some companies 37% had difficulty adjusting customs values, while others 26% reported issues with the reclassification of UKT ZED codes by customs authorities.

We observe the readiness of companies to obtain the status of authorized economic operators, in particular, 66% of companies plan to use individual simplifications or to obtain AEO authorization in general. Only a small percentage 4% currently use the joint transit procedure, while even fewer 2% use transit simplifications.

Oleg Kyryievskyi Co-Chairman of the EBA Customs Committee
It can be noted that last year’s changes to customs legislation (publicly - "customs visa-free") somewhat stimulated businesses to obtain simplifications, as well as certain complications of customs procedures that will come into force on November 7, 2023. Despite the increased interest in AEO and simplifications, it is not worth counting on too fast dynamics - the term of assessment by customs authorities, as well as the time required for companies to prepare, is quite significant.
Natalia Artemchuk Manager of the Tax and Customs Committees of the European Business Association
Although we were happy to note the growth of individual components of the index, at the same time, unfortunately, business does not see systemic positive changes in the work of customs. Instead, companies continue to report on artificial obstacles to customs clearance, groundless inspections, requests for additional documents, and the influence of law enforcement agencies on the work of customs officers. At the same time, 95% of the illegal decisions of customs authorities are successfully appealed by companies in court, so what makes customs authorities create additional problems for transparent business is a rhetorical question.

For reference:

The Customs Index has been conducted by the European Business Association since 2010.

The integral indicator of the index consists of three components – corruption, quality of customs services, and work of the “Single Window”. The index is measured once a year. Mark 3 is considered neutral, the maximum score is 5 points.

The survey was conducted for 2022, and 50 customs experts from member companies of the Association took part in it.

Presentations and documents

If you have found a spelling error, please, notify us by selecting that text and pressing Ctrl+Enter.

Start
in the Telegram bot
Read articles. Share in social networks

Spelling error report

The following text will be sent to our editors: