Draft Law 10257 adopted: Amendments to the Customs Code enhance administrative liability

On March 25, the Verkhovna Rada of Ukraine adopted the Draft Law No. 10257 on administrative liability for violation of customs rules – see changes to the Customs Code.

The Draft law aims to enhance the effectiveness of administrative liability for violations of customs regulations by implementing modern European methods for combating offenses and optimizing mechanisms for applying sanctions.

Key changes:

1. Circumstances are defined under which proceedings in a case of violation of customs regulations cannot be initiated or must be closed. These circumstances include:
   1. absence of the fact of the violation itself or of the elements of an offense (corpus delicti); 
   2. the offender's age being under 16 years (minority);
   3. actions committed under duress (extreme necessity) or in self-defense;
   4. repeal of the law providing for liability for the violation; 
   5. expiration of the statute of limitations for the consideration of the case;
   6. existence of a court or customs authority decision regarding the same violation; 
   7. existence of an uncancelled ruling on the closure of the case or a notification of suspicion in criminal proceedings for the same fact; 
   8. death of the person against whom proceedings have been initiated.
2. The procedure for transferring cases of violations of customs regulations to the court has been improved, and clear deadlines for the consideration of complaints by the State Customs Service have been established, which should contribute to their faster and fairer resolution.
   
   In particular, a new procedure has been introduced under which customs authorities are obliged to transfer cases of violations of customs regulations that are subject to court review to the local court at their location. Along with the case, a submission will be sent to the court regarding the prosecution of the offender, containing full information about the violation, a calculation of the customs authority's expenses, and justification for the need for punishment
   
   Furthermore, the central executive body implementing customs policy has 30 days to consider a complaint against a customs decision in a case of violation of customs regulations. In exceptional cases, the review period may be extended, but not by more than 15 days. The complainant must be notified in writing of the extension of the review period no later than 3 days before the expiration of the initial deadline.
3. The new changes to the Customs Code of Ukraine establish a procedure for actions in cases where the court discovers signs of a criminal offense in cases of violations of customs regulations, increase liability for violations of the time limits for the removal of vehicles, and clarify the procedure for the temporary seizure of goods and vehicles and the expert evaluation of their value.

4. Article 473 of the CCU has been amended, which, in addition to confiscation, provides for administrative liability in the form of a fine of 30% to 50% of the value for sending goods across the customs border of Ukraine in international postal and express shipments, where the presence, name, or designation, or quantity of which does not correspond to the data declared in the customs declaration or in other documents (shipping and/or commercial).