Why EU sees progress in customs reform despite public dissatisfaction
The EU has published its annual enlargement report, assessing Ukraine's progress towards membership. For the third consecutive year, Ukraine's achievements in customs reforms have been praised as very positive.
At first glance, this seems like a cause for celebration.
However, a closer look reveals a paradox: while EU experts view customs progress favourably, citizens regard customs as one of the country's most corrupt institutions.
This paradox is examined in the column by Oksana Kuziakiv, Head of the Сenter for Contemporary Society studies (IER) – Invisible success: Why the EU sees progress in customs reform, but not Ukraine.
The columnist notes that the EU’s assessment focuses on institutional readiness, the functioning of the responsible body empowered to implement these procedures and regulations, while citizens and businesses evaluate results.
"If institutional changes and operations are complex and require the efforts of various stakeholders, the expected results won't come quickly, and the interim picture will be incomplete. This is likely the root of the paradox," says Kuziakiv.
What reforms did the EU experts evaluate?
According to the expert, in April 2024, Ukraine successfully began international use of the New Computerized Transit System (NCTS, Stage 5). This system removes barriers and is fundamental for the free movement of goods across Europe (not just the EU). The common transit regime connects customs services in 35 European countries.
The project leader also mentions amendments to the Customs Code aimed at aligning it with the EU's Customs Code.
"Work has also begun on developing a new Customs Code to fully meet EU standards," she adds.
In 2024, progress was also noted in digital technology development. The Ukrainian government approved a strategic plan for customs digitisation for 2024–2026, including declaration processing systems and risk management according to EU standards.
Lastly, she highlights anti-smuggling efforts: in December 2023, a law criminalising large-scale smuggling was passed, giving the Bureau of Economic Security pretrial investigation authority in these cases.
Kuziakiv acknowledges that while expectations are high, there’s also scepticism, primarily about the enforcement capacity and the quality of the judiciary.
"This is the key issue. Whether these reforms work and how quickly citizens and businesses see results depends largely on enforcement. And enforcement is the weakest point of laws and regulations in our country," she concludes.
For 2025, the main goals include moving to the sixth stage of NCTS (which means implementing new EU security and data protection requirements in customs transit declarations) and refining the new Customs Code to match the EU's.
Additionally, the EU expects improvements in the State Customs Service's capacity, including enhanced staffing and funding, progress in the strategic customs digitisation plan, and an expansion of the Authorized Economic Operators (AEO) programme.