Characteristics of the customs authorities of Ukraine

alfred nobel university

 

DNIPROPETROVS’K, ukraine

 

 

 

BA PROGRAMME IN INTERNATIONAL MANAGEMENT

 

 

 

Midterm assignment: essay

 

 

Module	customs and customs regulation
type	elective
level	6
SEMESTER	2
cohort	MEK-11-a

 

id-Number

1 1 9 2 6 6 7 5 7 4 6 6 2

 

weighting	30 %
FIRST MARKER	DR.  YEVGEN GARMASH
Second marker

 

 

 

 

 

Dnipropetrovsk

2015

 

 

 

Characteristics of the customs authorities of Ukraine

 

Introduction

 

In modern conditions of economic development of Ukraine, the expansion of foreign economic relations is particularly important customs policy, which is based on customs legislation. The legislation defines the principles of the organization of Ukrainian customs to create favorable conditions for economic development, foreign economic relations, protect and ensure the constitutional rights and freedoms of citizens, the state, business entities of all forms of ownership and their compliance with the rules.

The customs legislation of Ukraine is aimed to achieve the following objectives:

• Ensuring the organization and functioning of a unified, coherent, stable customs system and the strengthening of legal mechanisms;
• Definition of the general principles of regulation of customs relations;
• Protection of economic interests of Ukraine;
• Development of legal norms that protect consumers' interests;
• Creating conditions for an effective fight against smuggling and violations of customs regulations, exchange controls.

Customs component is an important element of economic policy of any state. Indeed, the set of rational customs measures stimulates the development of foreign trade of the country, and thus is a factor of economic growth. It works on trading volumes, affects the amount of national income, the size of inflation and employment.

 

The customs policy of Ukraine

 

Customs policy is one of the main tools of the protectionist policy. As a member of the World Trade Organization - WTO (World Trade Organization), the Organization for Economic Cooperation and Development (Organization for Economic Cooperation and Development), as well as the state, which claims to membership in the European Union, Ukraine forms the customs policy with the requirements of these organizations.

The global task of the WTO - to assist in the creation and development of modern effective multipurpose customs services around the world, particularly those facing major economic changes. To accomplish this task the WTO members had adopted a strategic plan, which defined the main directions of the organization, and approved the program of reform and modernization of customs, which should help the national customs service more clearly define its goals and methods of their implementation. Therefore, as it helps to activate the potential opportunities to improve management practices, strengthen the organization structure and introduce modern customs techniques.

In its work, the WTO uses a regional approach. All Member States are divided into regional groups: America and the Caribbean, Europe, North Africa, the Middle East, West and Central Africa, Eastern and Southern Africa, the Far East, South and South-East Asia, Australia and Oceania. Each region is headed by a regional representative, who is elected at a session at the request of the Political Commission. The task of each group is to carry out the strategy of the WTO on the harmonization of customs systems in the region (promotion of acts of the WTO, their explanations, to attract new members).

Regional groups are engaged in training customs officials through the organization of various courses and seminars, the creation of information centers on the fight against customs offenses, the exchange of delegations between the national customs and administrative bodies of the WTO. WTO to actively address the question of organizing a specific interaction between the two countries in the sector to combat smuggling (primarily - drugs). WTO adopted a large number of documents, which regulate different areas of foreign trade.

The current stage of implementation of the customs policy of Ukraine is characterized by a constant increase in the volume and the expansion of international trade, trade dynamics processes, increased requirements of international organizations and the reduction of national barriers to trade. There is integration of international requirements into national practice customs regulations of Ukraine. (Customs.uz, 2015)

Implementation of these requirements related to certain threats to ensure the national interests of Ukraine. "Openness" national customs territory for international trade can cause economic losses to the state in the form of small revenues. As a result, distorts the real price of customs goods, endangered the health and safety of consumers, promote the growth of illicit flows. In such circumstances, to become more urgent need to improve the efficiency of the national customs.

Last time I noticed a significant improvement of the national customs policy. The positive developments in the field of customs policy we can recognize in the following features:

• Increased cooperation between the customs authorities with agricultural representatives who carry out foreign trade activities.

• Revitalization of the work of Ukrainian legislation in the sphere of protection of intellectual property rights to the level of international standards to strengthen the protection against the illegal movement of goods. Respect the interests of intellectual property rights is essential in ensuring non-discriminatory treatment of Ukraine as a subject of international economic relations, which aims to be competitive in terms of fair competition.

• Establishing effective cooperation with the customs services of Ukraine's trading partners, to identify corruption shady schemes in foreign trade and organized groups that are criminal activities in the foreign economic sphere and engaged in laundering of criminal money.

• Progress in the creation, preparation for the development of a system of electronic declaration of goods developed by the European Union and the World Customs Organization, which largely approximates the legislation of Ukraine on customs issues to the EU legislation, and to accelerate and simplify the procedures of customs control.

• Taking measures to ban the importation into the customs territory of Ukraine of food of poor quality. As a result of the measures held reduction of the total volume of imports of meat. Downward trend in the volume of meat imports to Ukraine entail a positive impact on increasing the volume of production of the domestic producers.

In view of the trends of customs policy in Ukraine, improve the efficiency of the priorities of state policy in this area should be:

• Increased protection of national interests of the state with the tools of customs policy with the introduction of international regulations and standards;

• Ensure that the customs authorities in the unified technology of customs control and customs clearance, which cover the entire sequence of movements of goods and means of transport during their stay under customs control;

• Creating an enabling environment for the participants of foreign economic activity to enhance export-import operations;

• Improving the efficiency of the search and combating negative phenomena in the environment, foreign trade, which are potential threats to the security and interests of the state;

• Finalization of draft laws and other normative legal acts.

• Preparation of the draft Law of Ukraine "On Customs Service of Ukraine";

• Provision of the legal basis for the establishment of the customs of science, systematic expansion of the base of domestic and foreign scientific knowledge on customs and performing scientific work;

• Development of modern theoretical foundations for modeling real-world processes in the operational activities of the Customs Service on WTO standards. (Eur-lex.europa.eu, 2015)

Moreover, I believe that our government should increase the number of countries with which the country will be concluded trade - economic relations.

It is important that these items will be improved in the near future. As a result, we will increase the level of protection of national interests; create favorable conditions for increasing the volume of foreign trade, positive impact on the social and economic development of Ukraine.

 

Customs policy in the context of Ukraine joining the WTO

 

14 years, Ukraine has been negotiating about accession to the WTO. During the 14 years of negotiations, Ukraine has gone economic and structural reforms, the transformation of the administrative planned to a market economy, has completed bilateral negotiations with WTO member countries, adopted more than 50 necessary for adaptation of Ukrainian legislation to the requirements of WTO law. Accession to the WTO it is important for any country that wants to integrate into the world economy, which wants to influence the formation of the rules of international economic relations. After analyzing the opinion of many prominent political scientists and economists of our country before the entry into the WTO, the consequences can be divided into 2 groups: positive and negative.

1. Positive consequences.

• Improving terms of trade with 152 countries of the world who have 95% of world trade.
• The reduction of tariff and non-tariff restrictions on the access of Ukrainian goods to the commodity markets of member countries of the WTO.
• Negotiations on a free trade area with the EU.
• Ensuring non-discriminatory transit of goods and services.
• Expected to increase state budget revenues from foreign economic activity.
• Additional annual increase in exports, at least, by 7-10% (from 1,5-4 billion)
• Significant increase of competitiveness of production of goods because of the increased volume of foreign investment
• Development of traditional export industries
• The inflow of investments in the services sector
• A country can participate in the development of international rules of trade policy.
• Admission to the World Trade Organization - a certificate of compliance with national regulatory regime to international standards. This is a signal to international investors and trading partners.
• If we implemented WTO principles and requirements in the domestic law, then we make it more understandable to the domestic producers.

Allows countries to protect their economic interests through special mechanisms and procedures in anti-dumping investigations on the part of our trading partners. (Ipp.kg, 2015) (Usubc.org, 2015)

2. Negative effects:

• Ukrainian industry is not immune to the impact of competitive products cheaper outside. This will lead to what will have to restructure Ukrainian industrial enterprises.
• Some restrictions in the area of ​​economic policy. The WTO agreements explicitly prohibit the use of certain instruments the country, which is slightly narrows the possibilities.
• Accession to the WTO, and requires a certain adjustment of economic management in the country. Today, the government needs to move away from direct intervention in the economy to create certain conditions is very difficult.
• The probability of increasing unemployment

The customs policy of Ukraine has changed dramatically, because our country had a right to join the WTO. As the accession process lasted for 14 years, during this period Ukraine managed to amend certain aspects of customs and trade policy.

The requirement for the WTO Working Group to change some aspects of Ukrainian politics:

• Price controls should be carried out in accordance with the rules of the WTO at the same time should take into account the interests of its members are engaged in exports.
• All charges for rail transport must be installed on a non-discriminatory basis.
• Trading activities of state-owned enterprises in Ukraine should be fully consistent with the terms of the organization, and all state-owned enterprises must operate on a commercial basis.
• Within one year after the entry into WTO, Ukraine undertakes to provide information on the activities of the WTO of these companies, as well as regular reports with WTO members on the development of the privatization program.
• Ukraine have to enter WTO’s rules in all areas of a country and should give the ability to ask for help in independent tribunal according to administrative rules for the WTO.
• The fee for obtaining licenses for the export and import of alcoholic beverages and tobacco products should be established with the WTO requirements, and match the level of the cost of services provided.
• From individuals and companies wishing to export or import will not require the physical presence or the presence of investments in Ukraine. They will need only create an account.
• Payment and fees for services provided Ukraine should manage in accordance with WTO rules and to provide this information at the request of WTO members, and domestic taxes on goods imported by member countries of the WTO, must be installed on a non-discriminatory basis.
• Ukraine should cancel and not to establish quantitative restrictions on imports or other non-tariff measures, which are not, covered WTO agreement.
• Kiev has to change the rules of the customs value and rules of certification.
• As part of the anti-dumping and safeguards obligations Ukraine has to make changes in trade legislation, that it is compatible with WTO rules.
• Ukraine is obliged to follow the international rather than national or regional standards.

May 16, 2008 Ukraine officially became a WTO member. 14 years lasted accession process, many different hypotheses put forward, but it was clearly understood that Ukraine should join the WTO, and it will give Ukraine a grand chance to enter the world market.

WTO membership for any country is a prerequisite for full integration into the world economy. For Ukraine, with the volume of exports of goods and services, which makes up about half of GDP, the entry to the WTO has provided an international legal level of trade relations with the countries - members of the Organization. Ukraine, the volume of trade takes 33 place in the world trading system.

Since 2005, the annual growth indices of industrial production, foreign trade, GDP and foreign direct investment. In other words, Ukraine's accession to WTO was carried out under favorable economic conditions. Review the information provided above, we can conclude that Ukraine has made the right move by joining the WTO. Already one year after accession to the WTO can be seen positive results. (Lawteacher.net, 2015) (Intl.econ.cuhk.edu.hk, 2015)

 

 

 

 

 

 

 

 

 

 

 

 

Conclusion

I had analyzed the activities of Ukrainian customs at the international level and identified such problems:

• The problem with the maintenance of international security (monitoring and control of smuggling).
• Support of international sanctions.
• Maintenance of ecological safety.
• The challenge of improving customs regulation in Ukraine.

The customs policy of Ukraine has evolved in the direction of general development of all aspects of customs and tariff regulation in accordance with the best, international norms and rules of international practice. Ukraine took part in the elaboration of customs regimes, which should ensure minimization of customs procedures and to prove the effectiveness of customs controls.

Nowadays the most acceptable for Ukraine is to use the experience of the countries of central and Eastern Europe. It is important to pay attention to compliance with lower tariffs, particularly for products with a low degree of processing. Special protection should be given to agriculture and engineering industries. At the same time, it is necessary to adopt an effective system of risk analysis for the termination of customs offenses. Moreover, it is important to reduce the commodity of nomenclature, such as Japan, China or the United States had made.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

• CUSTOMS.UZ

Bibliography: Customs.uz, (2015). Concept of the development of the State Customs Service of the Republic of Uzbekistan. [online] Available at: http://www.customs.uz/en/static_pages/custom_service/272/?view_result=Y.

• EUR-LEX.EUROPA.EU

Bibliography: Eur-lex.europa.eu, (2015). EUR-Lex - 32004L0048R(01) - EN - EUR-Lex. [online] Available at: http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32004L0048R%2801%29.

• IPP.KG

Bibliography: Ipp.kg, (2015). Institute for Public Policy. [online] Available at: http://www.ipp.kg/en/news/720/.

• USUBC.ORG

Bibliography: Usubc.org, (2015). US-Ukraine Business Council. [online] Available at: http://www.usubc.org/news/ukraine_trade_summary040308.php.

• LAWTEACHER.NET

Bibliography: Lawteacher.net, (2015). WTO’s Impact on Georgia | Law Teacher. [online] Available at: http://www.lawteacher.net/free-law-essays/international-law/wtos-impact-on-georgia-international-law-essay.php.

• INTL.ECON.CUHK.EDU.HK

Bibliography: Intl.econ.cuhk.edu.hk, (2015). International Economics - Topics. [online] Available at: http://intl.econ.cuhk.edu.hk/topic/index.php?did=17.