PROSPECTS OF DECENTRALIZED CONTROL IMPLEMENTATION IN THE AREA OF STATE CUSTOMS AFFAIRS OF UKRAINE

Abstract

One of the priorities of building an effective system of public administration in Ukraine is the reform in the area of state customs affairs. Approval of Ukrainian Customs Code renewed edition in 2012 was an important step forward in brining national customs control system to the best international standards. Nevertheless practice shows that since then new threats and challenges in this area have appeared, due to some gaps in legislation and absence of effective mechanisms to manage customs sector.

Considering mentioned, in this article analysis of core elements of decentralized control in the area of state customs affairs is conducted. This approach requires separation of two main processes: process of decision making and process of customs formalities fulfillment. On the one hand this will help to involve as many experts as needed for better decision making during customs control, on the other hand such system is expected to contribute into integrity issues.

On practice such process may be put into place through establishing of front and back offices. Front offices will be in contact with economic operators in case if needed, and back offices will play leading role in the process of decision making. Core issue is that front and back offices should be geographically located in different regions and some decisions on one customs declaration based on risk analysis and assessment may be taken by experts located in different customs offices (e.g. customs value is checked in one office and non-tariff regulation in another one).

During prospects of decentralized control implementation in the area of state customs affairs of Ukraine identification it is stressed that some changes have to be done. Such changes have to be made ranging from customs organizational structure review to legislation improvement. The author argues, that integrated implementation of such approach will help to improve efficiency of state customs affairs management and to ensure fundamentally new level of state customs security