Kharkiv State University of Food Technology and Trade

 

 

Shtal T.V.  PhD, Professor of International Economics, Lanets N.O., Nepliuieva A.V.  students  of the Faculty of Economics

Kharkiv State University of Food Technology and Trade

The analysis of the external debt crisis of Ukraine

 

 

The analysis of the new Customs Code of Ukraine considers the reasons, advantages and disadvantages of the new Customs Code, the influence of the new customs code on Ukraine's economy

 

Keywords: Customs Code, customs, relationships, products, costs of customs, a customs duty, the economy, the impact the state budget

 

 

 

 

 

 

 

 

 

 

Analysis of the new Customs Code of Ukraine, its advantages and disadvantages

 

Introduction. Customs Code plays a significant role in the economy and politic of  Ukraine. A change of the Customs Code is the result in the is the restructuring of all fields of customs services and the economy in general, but especially these changes affect the customs tariff regulation of the country, in turn, customs and tariff regulation has a direct impact on export  and import, directly and indirectly identifies the main economic indicators of the national economy, namely the dynamics and trends in exchange rates, interest rates, the structure and value of the  payments balance, etc.

 The question of systematizing normative - legal acts and amendment proceedings  to the Customs Code have been considered by such scientists as S.O. Fleksyev, Zaichuk, M.V. Kravchuk, N.M. Olyschenko, A.F. Skakun, P.M. Rabinovich, J.A. Tikhomirov. The issue of customs law and customs legislation considered  by such Ukrainian theorists such as I.P. Holosnichenko, E.V. Dodin, Y.T. Demin, S.V. Kivalov, B.A. Kormich, V.L. Nastyuk.

The analysis of scientific developments allowed to make the conclusion on insufficient  level of studying  the advantage and disadvantages of the new Customs Code of Ukraine, and the need to strengthen research in this area, and therefore the subject of the study is up-to-date.

Setting up the problem: to analyze the advantages and disadvantages of the new Customs Code of Ukraine and its impact on the economy.

Result: According to the latest ranking of the World Bank's Doing Business in 2012, in "International trade" Ukraine lost 4 positions last year, from 136 to   140 position ,  among 185 countries. The  analysis of indication is shown in (Table 1.). [5 ]

Table 1

Indicators of international trade in 2012

Indicators

Ukraine

Europe, Central Asia

EYESR

Documents  for export (number)

6

7

4

Time to export (days)

30

27

10

Export cost ($ per container)

1,865

1,774

1,032

Documents for import (number)

8

8

5

Time for import (days)

33

29

1

Import cost ($ per container

2,155

1,990

1,085


European Business Association conducted the analysis for the second half of 2011, according to, it was found out  that the quality of customs control  procedures in Ukraine has decreased in all five indicators to the level of early 2010. see (tab.2) [5]

Table 2

Quality of  custom control in Ukraine

Indicators

I semesters 2010rik

II semesters 2010rik

I semesters 2011rik

III semesters 2011rik

Number of days spent on the design of a supply

2.4.

2

2.5.

2.8

The share of products selected for physical browsing

55

52

26

41

Changing customs codes,%

N \ A

6

8

9

The total number of failures to consider the contract price

34

38

27

33

Number of securities for clearance

10.8

10.9

9.8

10.6


On June 1, 2012 Customs Code of Ukraine became legal, which recorded a series of new regulations and standards.

Having analyzed the new Customs Code of Ukraine it was  found out, that the reason for its adaption was the reorganization of customs relations, because of the need to simplify customs relations and adapt quickly to  the changes in declaring in the world. With the adoption of the new Code of the State Customs Service of Ukraine, forecasts the intensification of foreign trade and the  increase of turnover, and as a consequence the  increase of the state budget.

One can state that, the new Customs Code of Ukraine has more advantages than disadvantages, which  are necessarily  to  be completed and corrected. So the main advantages include the fact, that brokerage is excluded from the activities on the implementation of  which the customs authorities provide permission. Furthermore, the need to provide financial insurance guarantee in an amount not less than 300 thousand Euros has been abolished as well as,  the need confirmation  of qualifications and level of expertise in State Customs is exclude.

It is also necessary to note such important thinks, which is associated with the deprivation of customs officials, of  the right to perform forensic activities. Now they don’t have the obligation to self-fulfill court decisions on  the confiscation of previously seized goods and vehicles. New rules under which we cannot   keep the goods more than 4 hours at the customs have been adopted. The  period of administrative penalties for violations of customs rules in the form of confiscation of goods and vehicles has been decreased from 3 years to 2 months.

The main achievement of the new Customs Code is that it allows to minimize the customs clearance of import and export operations, that  lead to significant reductions in expenditures,  and losses  more effectively opinion of corruption in the country. The new Customs Code provides, the  priority right not to pay customs duty for goods worth up to ˆ 1,000, which  only passengers of  aircraft have. According to  the new Code was increased the sum of  imported gifts and souvenirs without taxes : has been increased, by land and sea entry points - up to 500 Euros,  by air tr - up to 1,000 Euros, be mail up - to 300 euros.[1]

The most effective innovation of the Customs Code is the introduction   of a new subject of foreign economic activity - authorized economic operator (AEO).This organ has the rights to use special simplifications, as the possibility of keeping  goods in its warehouse, and giving  good back from it for a period of time without showing the goods to a customs authority, it can also  remove customs taxes without the permission of the customs and be the first to conduct  customs control.

The improvements of customs procedures (especially in relation to re-import, processing, etc.) that provide more opportunities for business and customs clearance  of royalties, which remains uncertain until the appropriate procedure has been approved by the government. [1]

 Let’s analyze statistical  on the operation of the new Customs Code in comparison with the old one. According to SCSU, six months customs revenues to the state budget amounted at 60.9 bln., Which is  by 12.3 billion or 25.5% more than for the same period in 2011.The revenue,   for June 2012 totaled 11.6 bln. The increase compared to June 2011 is - 2.8 billion USD. or 32%.

As for the types of customs duties, the  largest absolute increase for 5 months occurred in VAT (7.4 bn., Or 22%).  In relative terms,  the largest increase is - in excise taxes (+46% or 974 million). [4]. In the context the types of goods, the  largest amounts were paid during the  customs clearance of imports:

·       oil (7.6 billion USD.)

·       cars (4.0 billion).

·       coal (2.2 billion)..

The member of  NBU Roman Speck said: that the growth of customs revenue is due to the increase of import. And not so  physical volume, but  cost value – because of this  the  Customs began an active campaign to reduce the customs value of goods, activation of post-audit. [4]

It should be noted that, the growth of foreign trade turnover was equal to7% and  reached 62.3 billion.$. for the 5 month. The amount of exported goods accounts at 28.2 billion $ USA. (+6%), Imported - 34,2 billion (+8). According to Customs information, one of the most significant factors is  increase of payments, as well as the  adjustment of customs value. As a  result  the  base of  taxes for  the  5 months  increased by 9.1 billion.$, and a sum of additional revenue to  the budget 2.28 billion.[4]

For the economy it is important that the increase of customs payment (increase the declared value of the imported goods) will not  lead to  the rice of  inflation. [4]

Having  analyzed  the new Customs Code of Ukraine, we  also found out a lot of  drawbacks and articles  that need improving . So, we can say that the first and most important drawback that   the main business issue –was not solved properly, the cost of custom transport, that is  part 1 of   Article 2 of the Customs Code states: "Declarant or the authorized person to declare the customs value of goods shall declare customs value determined on their own, including  the result of the consultation with  is the customs authority, or adjust  to  the results of the monitoring carried out by the customs authority " namely this  article tells us that the control over the customs authorities responsibility.

Another drawback of the Code is the a complication in the relation  of a business and customs authorities, which may be indicated in  non-compliance, in self-determination by declarants  a code of good which they transported across the border. The Customs Code states, that the customs authority controls the correctness of the decision, which is made by the declarant, as for the determination  of  the product code. It mean, that the disagreement of customs body  with the classification provided by the declarant, automatically causes  breaks of customs regulations, that will result in [3].

Another not less important drawback is related  to the import rules, which provided for manifest of goods and vehicles by  citizens, across the customs border of the country. That is, according to the  Article 380 of the Customs Code of Ukraine non-resident (natural persons - foreigners, stateless persons, Ukrainian, residing outside the country, including those who are temporarily staying in Ukraine)  are  temporarily  permitted to  import of vehicles for personal use (cars, code 8703, buses, in which more than 10 persons, code 8702) for a period of  to one year. Also, the new Customs Code does not determine the   requirements for temporary registration of a vehicle  by the organ of state Motor licensing and inspection department of Ministry of Internal affairs , if the time  of  its stay  in Ukraine is over 2 months,  this will lead to the  decline of the  consumption of domestic  Automobile industry products.

The new Customs Code has made ​​quite a positive impression on the American Chamber of Commerce, which said that the correct implementation of this comprehensive legislation low would lead to the significant improvement of the situation in the regulation of customs sphere, and improve Ukraine's competitiveness.

But, the disadvantages of the new Customs Code of Ukraine mentioned above do not meet the practices of the World Trade Organization. Not correct  evaluation  of a customs value is a good example of this:.  " the Code requires further improvement. Experts  are still  to do a lot, to provide full correspondence of the articles of this document to the best  international  practices. In  regard, to this the  Chamber has  already offered its assistance to the President of Ukraine ", - said Jorge Zukoski. [3].

However, international experts, insist on  the  further emphasize the elaboration of the new Customs Code of Ukraine and  drawing attention to the following aspects:

Improving customs declarations:

·       Implementation procedures of  electronic declaration;

·       Having previous, temporary and additional declaration which will allow to simplify the procedure of customs control and clearance;

·       Establishing the  procedures for amending the customs declarations.

Customs valuation of procedures:

·       Implementation of WTO practices where the customs authorities have reason to doubt the truth or accuracy of the declared customs value;

·       Improved the  procedures of correcting the declared value by the customs authorities – besides, they should have the right to makes the  changes, only after discussing the value of the declarant, and after giving a reasonable answer to the question, why the cost values ​​are not acceptable;

·       Provide consultation with the customs authorities on the method of determining the customs value;

·       The possibility of public access to the database of the customs value, which is conducted by the customs authorities, (depending on the requirements of the Privacy Policy).

Further harmonization of the Customs Code of the Tax Code of Ukraine and other legislative acts:

·       Adjustments to provisions of the Tax Code on VAT provisions of the Customs Code concerning the VAT within the various customs procedures;

·       Abolition of exchange control provisions (usually 180 days) because it creates obstacles to doing business and implementation of specific customs procedures.

International experts believe that the involvement of international best practices, will  help Ukraine to  improve customs code, will lead to the  and increase of  revenue, ensure transparency and predictability of customs clearance, which in turn will increase the level of competitiveness of Ukraine.[1]

Conclusions: The  study carried out  in the research allowed to make the following conclusions:

1. It is  determined that the reason for the adoption of the new Customs Code of Ukraine was the reorganization of customs relations in regard to  the need in  simplifying  customs relations and the need in  quick adaptation  to the  changes in declaring  in the world.

2. As a the result the analysis of main advantages and disadvantages of the new Customs Code, has been determined the recommendations of international experts as for the further improvement of  the Code and its perspectives have been analyzed.

 

 

 

 

 

 

 

 

 

 

Literature

1.Ukrainian Union of Industrialists and Entrepreneurs' Economic Council USPP welcomed the new customs

2. Kalachova G. 'advantage and disadvantages of the new Customs Code "   http://real-economy.com.ua/publication/22/10709.html

3.UEFA financial growth "budget revenues and new Customs Code (informational materials)» - http://lfr.org.ua/ru/analytics/460-2012-07-11-20-04-22.html

4. Customs revenues to the state budget - http://www.ukrstat.gov.ua/

5. These are the World Bank Doing Business in 2012, in "International Trade"   http://www.worldbank.org/