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Meeting with the Odessa Customs executives of the SFS of Ukraine

29/ 10/ 2019
01/

 

On October 29, 2019, the EBA Southern Ukrainian Office participated in the meeting with Igor Reznik, act. Chief Executive Officer of the State Customs Service of Odesa, with the business community in the “no tie” format. The main issues were related to:

  • the reform the structure and activity of the SFS;
  • the identification of the SCS as a separate entity;
  • the price and customs value;
  • the calculation of the gross net;
  • the interaction of customs and law enforcement during inspections;
  • the fight against corruption and smuggling;
  • and other important aspects of the interaction between business entities and customs.

The State Customs Service’s reform will begin with the registration of a legal entity of the State Customs Service (SCS). The recruitment of the first 30% of employees will start for the SCS Customs acting. After that, the Head of the reorganization commission will be appointed to continue the staff recruitment. There are no exact dates that will be needed for the reform.

Acting Chief Executive Officer of the Odessa customs and his team have already managed to carry out 264 inspections, and in 90% of cases revealed such violations as loss of weight under a bill of lading, lowering the customs value, re-routing of goods and so on. The Customs head mentioned: “Problem will not be solved until we stop the illegal relationship between the subject and public officials. Because corruption starts when the man tries to negotiate with the inspector.”

EBA Customs Committee co-chairman and Lamarin founder Alexander Lazarev expressed his concern with the current customs issues, in particular in the context of the maritime industry. He called the current executives to solve the problems effectively, to develop a post-audit system, to co-work with the new created Tax Administration, to transfer the majority of control functions outside the customs checkpoint.  In turn, ITL co-founder and AIFFU CEO Victor Berestenko suggested making the practice of customs clearance of goods common and clear for business. Also organized several written explanations, as well as to conduct relevant business seminars.

To sum up the meeting, Igor Reznik emphasized that he is open to cooperation and invited all participants to inform him personally about the facts of violation that occur in their practice. We thank the State Customs Service of Odesa for its readiness for interaction and constructive dialogue!

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