RESULTS OF THE SEVENTH FOCUS GROUP “MONITORING OF CHANGES IN THE CUSTOMS SPHERE RELATED TO THE INTRODUCTION OF MARTIAL LAW IN UKRAINE”
On 09 December 2022, the Association of Customs Brokers of Ukraine held a focus group discussion on the current conditions of export-import operations, clearance of transit cargoes in the NCTS system, and rules for customs brokerage activities.
According to the participants of the discussion, the process of cargo clearance in the export mode has not changed since the beginning of martial law on the territory of Ukraine. However, it should be noted that the specialisation of the interviewed experts is cargo import.
The procedure of cargo clearance in the “import” mode was more actively discussed. The main issue, which, in the opinion of FCD participants, requires immediate solution, is the determination of customs value and the number of customs inspections, which are now initiated by customs authorities. The urgency of the above issues is proved by the fact that the discussion was attended by customs brokers who work with large importers of products with transparent these new proposals. The reasons for customs inspections, according to the participants, are often illogical and lead to delays in cargo delivery and additional costs, especially in the case of the need for customs inspections before weekends.
Delays in the clearance of import operations also occur due to objective reasons, such as air raid alarms and power outages (not all customs posts are equipped with uninterruptible power supplies). One of the proposals from the panelists is to give customs officers access to the Inspector-2006 programme outside of working hours. This would enable quick clearance of cargo, taking into account emergency and scheduled blackouts.
Customs brokers hope for the definition and application of criteria of customs confidence in large importers. This would provide for customs clearance of goods without customs inspections, but with the possibility of an audit at any time to verify the clearance. This system has worked successfully in the EU without the requirement to be an authorised consignee or authorised economic operator.
The issue of confirming the customs value is not an operational one. After all, customs representatives who agree on the customs value may be absent for several days, which leads to delays in the delivery of cargo. A negative practice is the unexpected decision to increase the customs value at the final stage of customs clearance. Unfortunately, the panellists have repeatedly faced such challenges during a full-scale war as well.
On the work of the Single Window: One of the panellists emphasised the persistence of a significant human factor in food control. The point was that at one customs post, controls can be carried out quickly and without additional requirements, while at another, the same goods are cleared only on condition that additional documents are submitted, which significantly complicates and delays the customs clearance process and logistics in general.
Confirmation of customs value for goods of Chinese origin remains a problem: even in the presence of the necessary supporting documents, customs officers quite often determine the customs value using the reserve method.
The participants in the discussion agree that it is necessary to define at the legislative level an exhaustive list of documents that must be submitted to confirm the customs value of goods and that would guarantee that customs officials cannot raise the customs value without justification.
Customs brokers believe that a valid simplification is the clearance of goods under EA declarations. So there is no point in stopping their application. In the future, instead of EA, it is planned to use AA-type declaration, provided that the T1 declaration is executed by a European guarantor. But the necessary condition is that the car must enter the terminal, which levels the simplification. The issue of the cost of T1 registration remains relevant. After all, European guarantors offer very high prices for T1 registration due to the continuation of military operations on the territory of Ukraine.
Regarding the interaction with customs authorities, the participants noted that in the first months of the war the interaction with customs authorities was prompt and qualitative. This was especially true for cargo clearance for the Ministry of Defence of Ukraine. The panellists emphasised the speed of work of customs inspectors at the Porubnoye IACP. Now it seems that the war is over and delays in clearance tend to return.
Regarding obtaining AEO status and other simplifications related to the international application of the NCTS system: business understands the unconditional advantages and simplifications, but draws attention to the incomprehensibility of the procedure and the complexity of completing the self-assessment questionnaire and obtaining simplifications for most enterprises in Ukraine, noting that the list of enterprises that are already AEOs in Ukraine is too limited. Also, the opinion of the discussion participants is unanimous – all simplifications are available for large enterprises, but not for small businesses.
Business expects assistance and help in obtaining the simplifications provided by AEOs from the relevant Associations. Uniting and protecting the interests of customs brokers should be done first of all through active actions of professional associations.
AMBU plans to hold such focus group discussions on a monthly basis in order to monitor changes in the customs sector related to the introduction of martial law in Ukraine.
If you would like to join the discussion, please send us an e-mail enquiry: info@ambu.org.ua, or call us at +380953046894.
We will be glad to see you among the participants of our next events.
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This publication has been prepared within the framework of the project Support to the Public Initiative “For Fair and Transparent Customs” with the assistance of the European Union), implemented by the Institute for Economic Research and Policy Consulting. The contents of this publication are the sole responsibility of the Ukrainian Association of Customs Brokers and can in no way be taken to reflect the views of the European Union.