The Union of Ukrainian Entrepreneurs demands the rejection of the law on the “criminalization” of smuggling. The current version of the law creates conditions for pressuring all exporters instead of addressing real smugglers.
According to the Union, the provisions of law No. 5420 “On Amendments to the Criminal Code of Ukraine and the Criminal Procedure Code of Ukraine regarding the criminalization of smuggling of goods and excisable goods, as well as false declaration of goods,” contain many provisions that give the discretion to decide any issue by a public official or government body. This applies to both the qualification of the violation (intentional or unintentional) and the punishment for it. For example, the punishment can range from fines to imprisonment.
Furthermore, since the law on the “criminalization” of smuggling came into effect, there has been no unified approach to the enforcement of the relevant article of the Customs Code of Ukraine, which concerns “Movement or actions aimed at moving goods across the customs border of Ukraine with the concealment from customs control.” As a result, each importer becomes dependent on the subjective assessment of customs service employees, and the customs clearance process itself can become a tool for pressuring any importer.
The application of the current provisions of the Customs Code of Ukraine concerning administrative liability for customs violations is quite subjective. Therefore, the introduction of criminal liability for such violations raises objective concerns within the business community that instead of effectively combating smuggling, honest businesses will become victims of law enforcement abuse.
Therefore, the Union demands that the draft Law of Ukraine dated April 23, 2021, No. 5420 (regarding the establishment of criminal liability for smuggling) be returned to the developer for further refinement to protect honest businesses from law enforcement abuses.
