Transformation of property rights of international business entities in the process of customs regulation

Abstract

The article is aimed at defining the forms and mechanisms of transformation of ownership relations in the course of foreign economic operations under the influence of customs regulation. On the basis of a systematic analysis, the article analyses a set of relations related to potential and actual processes of transformation of property rights of foreign economic entities during customs procedures. The statistical analysis allowed the author to identify the potential quantitative financial significance of the role of managerial decisions on the expedient transformation of property rights in the course of customs procedures to ensure the economic interests of the State. The method of comparisons was used to characterise various forms of transformation of property rights of subjects of foreign economic activity under the influence of customs procedures. The author identifies the following forms of transformation of property rights of foreign economic operators during customs procedures: free, conditionally compulsory and absolute compulsory transformation. The conditions of the free form of transformation provide for a de facto free managerial choice on the part of a business entity. The conditional-compulsory form significantly narrows the possibilities of such a management choice. The absolute and compulsory form of transformation completely deprives a foreign economic entity of the opportunity to choose and influence the process of transformation of property rights. It is shown that subjects of foreign economic business activity, within the framework of certain situations arising in the course of customs procedures, may have the opportunity to choose appropriate management decisions regarding the conditions for transforming their rights to property objects. At the same time, customs managers also have a certain choice. The author shows the contradictions of interests that may arise in various forms of transformation of property rights of foreign economic operators. International business entities and customs authorities enter into certain relations in which they seek to find the most costeffective solutions and transformations for themselves. It is advisable to take into account that the benefits of a particular transformation for the State may be manifested not only in terms of financial results. It is proved that the transformation of property rights in favour of the state at the level of “ownership” is not always economically feasible for the state and its economic interests. When making appropriate managerial decisions on the transformation of ownership rights of foreign economic operators to the objects of customs control, customs managers should choose the most effective tools and modes of transformation.