Stages of the Ukrainian customs system capacity building: towards the EU standards

Abstract

The paper describes the stages of capacity building of the Ukrainian Customs system. Positive and negative aspects of the capacity building reforms having been carried out are reasonably stated. The existing international practice of Customs administrations’ creation and functioning as well as a practical activity of the Customs administrations in different countries of the European Union are analyzed in the paper. Particular attention is paid to the compliance of the Ukrainian Customs system reforms with pan-European regulations and standards. The authors note the main positive changes having been made in the process of Tax and Customs Services reorganization, namely: creation of a common information database, which made it easier to collect taxes and audit; development of quite a clear mechanism for interoperability and responsibilities sharing; creation of a single efficient department to combat tax crimes and smuggling; usage of innovative IT – technologies to fully control the process of taxes, duties and other charges collection to the budget; improved situation with the recovery of VAT. The authors’ approach to the creation of effective organizational and functional mechanism of the Customs system has been offered.