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Ukraine To Tackle Customs Clearance System Abuse

by Lorys Charalambous,, Cyprus

02 February 2016

Ukraine's Minister of Finance, Natalia Jaresko, has asked the State Fiscal Service (DFS) to increase scrutiny of the nation's customs clearance system.

In particular, Jaresko asked the DFS Chief Roman Nasirov to examine all customs declarations released under the IM40EA procedure, to detect violations and system abuse by customs officers. Under the IM40EA procedure, imported goods are cleared for free circulation at the border of Ukraine without being transferred for examination to local customs offices. Her comments follow concerns that officials have wrongly allowed some companies and individuals to benefit from the simplified procedure.

Speaking at a press conference on January 26, 2016, Jaresko said: "Apart from diligent companies, which apply the simplified clearance procedure and do not pose any legal risk, this procedure is misused by tax-dodgers who deliberately reduce the declared value and weight of their goods declaring expensive items as cheaper ones."

Jaresko pointed out that the risk assessment systems are not perfect and sometimes enable customs officials to apply the simplified procedure to companies that actually do not have the right to enjoy this exemption. Jaresko ordered Nasirov to re-calculate the duties accordingly.

"All this is being made for the sake of a comprehensive reform of the State Fiscal Service. We must turn our tax and customs authorities into a really transparent service and must minimize the opportunities for arbitrary approach and corruption in these authorities," she said.

TAGS: compliance | Finance | tax | business | tax compliance | tax avoidance | law | budget | enforcement | ministry of finance | tax authority | Poland | import duty | tax reform | Legislative Scrutiny | Ukraine

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