Customs: A shift in focus. What kind of customs service should Ukraine build to become part of the European Union?
In the context of preparations for EU accession, the phrase “European standards” is often used in Ukraine when referring to the standards that the Ukrainian Customs Service is expected to meet. In fact, this phrase has a very specific meaning, enshrined in EU legislation. I believe it is important to look at this in greater detail, because the functions that customs authorities in EU Member States are expected to perform determine how Ukraine’s customs service needs to be reformed ahead of EU accession.
The main legal and IT framework governing customs processes within the EU customs territory is the current Union Customs Code, Regulation (EU) No 952/2013. It consists of the basic act, supplemented by detailed implementing and delegated acts. Customs authorities must also help enforce a wide range of other EU policies that apply at the external borders.
The modern role of EU customs authorities — what the legislation says
Until relatively recently, the role of customs was primarily limited to collecting customs duties and indirect taxes on imports. The need to ensure security and safety at the Union’s external borders has changed the role of customs authorities, giving them a leading role in the supply chain, as well as in monitoring and managing international trade, making them a catalyst for the competitiveness of countries and businesses. Customs legislation must therefore reflect the new economic reality and the new role and mission of customs authorities. Alongside the collection of customs duties, ensuring security and safety and facilitating legitimate trade are now among the core activities of customs authorities.
It is worth clarifying that when we say “until relatively recently”, we are using the term in a historical context. We are not referring to last week or last year, but to an earlier stage in the development of customs.
This shift is enshrined in Regulation (EU) No 952/2013. Article 3 of the Union Customs Code defines the mission of customs authorities, including having primary responsibility for supervising the Union’s international trade, thereby contributing to fair and open trade, the implementation of the common commercial policy and other common Union policies relating to trade, as well as overall supply chain security.
Under the Union Customs Code, customs authorities are responsible for protecting the financial interests of the Union and its Member States, as well as the security of the Union, its residents and the environment, in close cooperation with other authorities. They must protect against unfair and illegal trade while supporting legitimate business activity, and ensure an appropriate balance between customs controls and the facilitation of legitimate trade.
Customs legislation must reflect the new economic reality and the new role and mission of customs authorities.
The building blocks of EU customs development
The transition to this new role is not an event that happens overnight as a result of a political decision. It is a process that takes years, follows a clear logic and requires changes across a range of areas. I would highlight four key areas that are critical to enabling the customs authorities of EU Member States to take on this role.
Facilitating legitimate trade while combating customs fraud requires simple, fast and standardised customs procedures and processes.
The EU therefore provides for the simplification of customs legislation, the use of modern tools and technologies, and further harmonisation in the application of customs legislation and modern approaches to customs controls, creating the basis for efficient and straightforward clearance procedures.
To enhance business competitiveness, customs procedures are gradually being consolidated or harmonised, while their overall number is being reduced.
The use of information and communication technologies is a key element in facilitating trade while ensuring effective customs controls, reducing costs for businesses and risks to society, and minimising the human factor.
The EU has therefore established a legal framework enabling the implementation of the principle that all customs and trade operations should be carried out electronically, and that customs IT systems should offer economic operators the same capabilities in every Member State.
The application of customs controls by EU Member States should be based on a common electronic Risk Management System.
This is intended to ensure a uniform level of customs control throughout the Customs Union and prevent anti-competitive behaviour at different points of entry into or exit from the EU. At the same time, a common Risk Management System should not prevent customs authorities from carrying out random checks on goods.
The answer to the questions “How can the capacity of the customs border be increased to speed up international trade?” and “How can compliant businesses be given preferential treatment during customs clearance?” lies in a well-developed system of authorisations for customs simplifications.
Economic operators that obtain Authorised Economic Operator (AEO) status or other authorisations for customs simplifications have earned the trust of customs authorities. Less time is required to carry out controls on them, while they themselves save time and gain a competitive advantage. They benefit from more favourable customs control arrangements, such as fewer physical inspections and documentary checks.
What Ukraine needs to do
The key requirement is to align Ukraine’s customs legislation with EU customs legislation. What does this mean? It means more than simply adopting a new Customs Code. The following roadmap sets out the main stages that need to be completed in the coming years if Ukraine is to meet its goal of joining the European Union in 2030.
First, the Verkhovna Rada must adopt the new Customs Code of Ukraine at second reading, based on the Union Customs Code. We expect this important milestone to be reached by the end of 2026. The adoption by the Verkhovna Rada of a new Customs Code of Ukraine aligned with the Union Customs Code is one of Ukraine’s commitments under the structural reform policy measures set out in the Memorandum between Ukraine and the EU and is one of the policy conditions for the third tranche of EU financial assistance.
But the new Customs Code itself is only the first step — critically important, but not sufficient on its own.
Second, the necessary secondary legislation must be developed on the basis of European Commission regulations. In volume, these instruments are several times larger than the Customs Code itself. This work has already begun, and this challenging task could be completed by 2028.
Third, new core IT systems must be developed and tested, including the Customs Clearance System and the Risk Management System, in line with the new Customs Code of Ukraine based on the Union Customs Code. Overall, to implement EU customs legislation, Ukraine will need to ensure compliance with EU requirements for around 20 IT systems provided for under EU legislation.
Only the implementation of this three-part task — adopting the new Customs Code, developing the secondary legislation and putting the necessary IT systems in place — will allow the new Customs Code of Ukraine to become operational and provide the legislative basis for Ukraine’s customs service to perform the functions expected of the customs authorities of EU Member States.
IT — the biggest challenge
The development and implementation of the customs IT systems described above appears to be the most complex and time-consuming task.
More than a year ago, in July 2025, the European Commission’s Directorate-General for Taxation and Customs Union (DG TAXUD) sent the Ministry of Finance and the State Customs Service an official letter with recommendations on developing the mandatory digital customs systems required to implement EU customs legislation, including the provisions of the Union Customs Code (UCC), the Delegated Act (DA) and the Implementing Act (IA).
Of the more than 20 systems concerned, only one — the New Computerised Transit System (NCTS) — has so far been developed, successfully undergone conformance testing, fully complies with the requirements of the Union Customs Code and is being developed in sync with other countries. In June 2026, for example, Ukraine moved to the updated version of the system — NCTS Phase 6.
At the same time, “approval of the technical requirements for national customs IT systems for processing customs declarations (AES, CCI/NIS), as well as for a Risk Management System compatible with ICS2, enabling integration with EU IT systems, and the establishment of the necessary project management structures” is also one of Ukraine’s commitments under the Memorandum between Ukraine and the EU for the release of the third tranche of EU financial assistance.
The experience of EU Member States shows that the workload involved is substantial. For example, developing new functionality for the Automated Export System (AES) and the functionality of the Centralised Clearance for Import system took more than two years and required additional resources. For this reason, most EU Member States rely on outsourcing and use the services of IT companies.
In addition to development, some systems require conformance testing by DG TAXUD. For example, conformance testing of AES took more than one year.
This means that if Ukraine aims to join the EU in 2030, it must start pilot operation of the core IT systems at national level no later than the beginning of 2029 and be ready for preliminary conformance testing and formal conformance assessment by DG TAXUD. The process should be completed by the end of 2029.
Building the capacity of Ukraine’s State Customs Service
EU Member States expect to have a reliable partner. In this context, the European Commission has issued recommendations and guidance for candidate countries. According to the development plans for the customs authorities of the EU Member States, an effective customs service should have the capacity to detect, prevent and investigate fraud, as well as prepare cases for the prosecution of offenders.
With this objective in mind, the EU Enlargement Report on Ukraine noted the importance of ensuring that the customs authority has appropriate powers at national level to enforce requirements and is able to participate directly in the collection of operational intelligence and contribute to pre-trial investigations into cases involving the smuggling of goods.
The experience of the Lithuanian customs service, which faced a situation similar to Ukraine’s before Lithuania joined the EU in 2004, shows that powers relating to criminal intelligence and criminal investigations enable customs authorities to work effectively both in combating smuggling and in tackling corruption.
Mutual recognition by the EU of the simplifications granted in Ukraine to compliant traders is also important.
It can be said that once Ukraine has implemented the Union Customs Code and ensured the necessary capacity development of the State Customs Service, it will be ready to join the Customs Union.
Looking ahead
Finally, I would like to highlight two important points.
First, bringing Ukraine’s customs service up to “European standards” is not a discussion about “who is better”. It is about ensuring that Ukraine’s customs authorities and those of EU Member States are aligned so that they can operate together within a single EU Customs Union. And if a country wants to join the EU, it is the country that adopts EU standards — not the other way around.
Second, the Customs Union does not stand still.
The EU is planning changes to take the Customs Union to the next level, providing a stronger framework that will enable us to better protect our citizens and the Single Market. Implementing the standards that will enable Ukraine to become an EU Member State will not be the end of the process. EU accession will mean that, from that point onwards, Ukraine will develop its customs system in sync with all other countries participating in the EU customs territory. Ukraine must therefore be prepared to respond to future developments and, where necessary, update its national customs legislation.
Let me reaffirm that EU4PFM stands ready to continue supporting key measures related to Ukraine’s accession to the European Union.
[1] European Commission Communication of 24 July 2003, A simple and paperless environment for Customs and Trade.
[2] Decision No 70/2008/EC of the European Parliament and of the Council of 15 January 2008 on a paperless environment for customs and trade.
Vytenis Ališauskas
EU4PFM Key International Customs Expert