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Starting from July 1st, criminal liability for smuggling of all goods is being introduced

01/ 07/ 2024
  The European Business Association reminds that from July 1st, 2024, Law 5313-IX introduced criminal liability for commodity smuggling for all goods: worth from 7.57 to 15.14 million UAH – liability in the form of a fine from 170 to 425 thousand UAH; worth over 15.14 million UAH – from 850 thousand UAH fine to 11 years imprisonment with confiscation of property. For excisable goods, the law came into force on January 1st, 2024. In particular, liability is provided for the smuggling of goods: worth from 1.136 to 2.271 million UAH – in the form of a fine from 340 thousand UAH to 6 years imprisonment; worth over 2.271 million UAH – from 1.275 million UAH fine to 12 years imprisonment with confiscation of property. The law was adopted with some amendments insisted upon by businesses. The main achievement of the European Business Association in the process of working on this initiative was the cancellation of criminal liability for false declaration (unintentional mistakes during declaration). Also, thanks to the EBAs efforts, the threshold values of the cost of violations for the application of criminal liability were significantly increased. We remind you that the controlling function regarding the mentioned offenses will be assigned to the State Customs Service and the Economic Security Bureau (ESB). The results of the first half of the year regarding the situation with the criminalization of smuggling of excisable goods indicate the need for real reforms in the State Customs Service,increasing motivation and financial support for customs officers, increasing their professionalism, as well as the need to develop interaction with customs authorities of neighboring states within the framework of international customs cooperation. In addition, we hope that soon the business will see a real reform of the ESB and effective work of the new body, which, in particular, should conduct pre-trial investigations of offenses related to commodity smuggling. This is extremely important for the Ukrainian economy. According to the State Customs Service, the number of detected offenses in the 1st quarter of 2024 increased almost 4 times compared to the same period in 2023. Thus, customs officers report 2356 violations of customs rules for the amount of 4.8 billion UAH. Almost half of the cases, 1116 cases of violations of customs rules for the amount of 1 billion UAH, were transferred to the court by customs. We expect news and feedback from businesses starting from July 1st in the context of the introduction of new legislative changes. We hope that the new liability measures will not lead to abuses for the performance of fiscal functions of customs. The EBA will impartially and openly inform about the implementation of new approaches at customs and will closely monitor any cases of increased pressure on businesses.

The European Business Association reminds that from July 1st, 2024, Law 5313-IX introduced criminal liability for commodity smuggling for all goods:

  • worth from 7.57 to 15.14 million UAH – liability in the form of a fine from 170 to 425 thousand UAH;
  • worth over 15.14 million UAH – from 850 thousand UAH fine to 11 years imprisonment with confiscation of property.

For excisable goods, the law came into force on January 1st, 2024. In particular, liability is provided for the smuggling of goods:

  • worth from 1.136 to 2.271 million UAH – in the form of a fine from 340 thousand UAH to 6 years imprisonment;
  • worth over 2.271 million UAH – from 1.275 million UAH fine to 12 years imprisonment with confiscation of property.

The law was adopted with some amendments insisted upon by businesses. The main achievement of the European Business Association in the process of working on this initiative was the cancellation of criminal liability for “false declaration” (unintentional mistakes during declaration). Also, thanks to the EBA’s efforts, the threshold values of the cost of violations for the application of criminal liability were significantly increased.

We remind you that the controlling function regarding the mentioned offenses will be assigned to the State Customs Service and the Economic Security Bureau (ESB). The results of the first half of the year regarding the situation with the criminalization of smuggling of excisable goods indicate the need for real reforms in the State Customs Service,increasing motivation and financial support for customs officers, increasing their professionalism, as well as the need to develop interaction with customs authorities of neighboring states within the framework of international customs cooperation.

In addition, we hope that soon the business will see a real reform of the ESB and effective work of the new body, which, in particular, should conduct pre-trial investigations of offenses related to commodity smuggling. This is extremely important for the Ukrainian economy.

According to the State Customs Service, the number of detected offenses in the 1st quarter of 2024 increased almost 4 times compared to the same period in 2023. Thus, customs officers report 2356 violations of customs rules for the amount of 4.8 billion UAH. Almost half of the cases, 1116 cases of violations of customs rules for the amount of 1 billion UAH, were transferred to the court by customs.

We expect news and feedback from businesses starting from July 1st in the context of the introduction of new legislative changes. We hope that the new liability measures will not lead to abuses for the performance of fiscal functions of customs. The EBA will impartially and openly inform about the implementation of new approaches at customs and will closely monitor any cases of increased pressure on businesses.

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