Fatih Şahin Фатіх Шахін Ukraine, business and international experience — since 2004
Politics & Governance

Reforming the customs service

Customs has been reformed more often than almost any other Ukrainian institution, which tells you both how important it is and how hard it has been.

Apiary Kiev Pechersk Lavra
Photo: Аимаина хикари · CC0

Customs sits at the point where goods, money and discretion meet, which makes it simultaneously one of the largest sources of budget revenue and one of the hardest institutions to govern.

What the problem actually is

Two things, and they pull in opposite directions. Undervaluation: a shipment declared at less than its worth pays less duty, and the difference is shared. And obstruction: a compliant shipment held up until somebody pays to release it.

The first costs the budget; the second costs the economy. A reform that fixes only one makes the other worse.

What has measurably changed

The single window, so that all agencies involved in a clearance work from one electronic submission rather than each demanding its own paper.

Risk-based selection, in which a system rather than an inspector decides which consignment is examined. That removes the discretion at the point where discretion was most valuable to sell.

Scanning equipment, which allows a container to be checked without unloading it, cutting both the delay and the opportunity.

And published clearance times, which turn a complaint into a measurement.

What has proved resistant

Personnel. Every structural reform depends on the people applying it, and repeated reorganisations have not solved the question of how to recruit, pay and retain officers who do not need the informal income.

What would finish it

Alignment with European customs procedures, which brings both an external standard and an external audit. That is one of the more practical reasons the customs chapter of accession matters.

As one of the heaviest users of this service I can say what measurably changed was time and what proved resistant was interpretation. The same declaration can still produce two outcomes at two crossings in the same country. What would finish the job is not another restructuring — it is decisions that carry reasons and can be appealed.

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