Ukrainian Customs by 2030: The Goal – Preparing for Accession to the Customs Union and the EU

Reforming Ukrainian Customs with a View to 2030: Preparing for EU and Customs Union Accession

The ongoing reform of Ukrainian customs has a very specific objective — to prepare Ukraine for accession to the EU Customs Union. This is the task that must be accomplished in order for Ukraine to be recognized as ready for EU membership — a point emphasized during the intergovernmental conferences held on June 25 to launch accession negotiations.

The reference timeline is 2030, the target year for the next wave of EU enlargement. This allows for a clear roadmap of actions: what must be achieved, and by when, to take full advantage of the “Horizon 2030” opportunity.

All changes already implemented — such as the “customs visa-free regime” (common transit procedure), the AEO programme, the right to be heard, the introduction of procedures for appealing decisions — as well as the upcoming changes currently under development (improved application of customs regimes, contractual service in customs authorities, introduction of customs representation for businesses, and a unified customs debt concept) are all subordinated to one strategic goal: Ukraine’s accession to the EU.

Equally important, Ukrainian customs must meet EU standards not only at the moment of accession but also after membership, with the capacity and potential to develop in step with EU member state customs administrations.

Key Tasks for Ukraine

Ukraine, once an EU member, will become part of the single EU customs territory, with no internal borders between countries and a common external border. The EU Customs Union is characterized by a single legal framework, harmonized procedures and rules, implemented jointly by customs authorities and IT systems. Interoperable IT systems enable information exchange and coordination between customs administrations across the entire Union.

The philosophy of the EU Customs Union is reflected in its priorities:

• Facilitating international trade

• Ensuring security control of goods entering the EU

• Collecting the appropriate customs duties

• Making clearance procedures easy for compliant businesses

• Preventing fraudulent activities and evasion of customs law

To achieve this, the EU is building a paperless (electronic) customs environment — E-Customs, enshrined in law. The primary implementation tool is a set of standardized IT systems developed in line with the Multi-Annual Strategic Plan for Electronic Customs (MASP-C). Reliable IT systems significantly reduce the human factor and are the pathway to harmonizing customs procedures.

The European Commission regularly highlights the most important reform areas for Ukrainian customs in its Conclusions (Chapter 29: Customs Union), which act as markers of Ukraine’s progress and guidance for further priorities.

Priority Areas

The key task is to align Ukraine’s national customs legislation with EU law — strategically, this means adopting a new Customs Code of Ukraine based on the Union Customs Code (UCC) and related acts. Equally critical is the development, launch, and testing of the required customs IT systems, as these underpin the implementation of procedures defined in the legislation.

Security-related priorities include protection of intellectual property rights (IPR) and criminalization of smuggling.

For trusted traders, the EU provides real, tangible simplifications through authorizations (AEO status) and facilitations under the Common Transit Procedure (NCTS). The aim is to make it beneficial for businesses to be compliant and authorized. Ukraine is gradually replacing its national simplifications with these EU-aligned systems.

Ukraine will be able to close negotiations on Chapter 29 once its customs legislation fully complies with EU law and its IT systems have passed interoperability assessments with EU systems. The decision to draft a new Customs Code — already underway with expert working groups — is therefore a major step.

The new Customs Code will operate as a package together with implementing acts, just like in the EU (where the UCC is complemented by about 60 implementing acts). Ukraine must carefully balance which rules go into the Code (more stable, harder to amend) and which are left to the more flexible implementing acts.

IT Systems Development

Out of the 17 EU-required customs IT systems, Ukraine has implemented only one so far — NCTS. The remaining 16 must be developed and launched in the near future. The implementation of NCTS was a success story, made possible by consolidated government efforts and international support. This experience serves as a model for the rollout of the other systems.

Several other EU-compatible IT systems are already under development as part of the Digital Development Plan of the State Customs Service, based on MASP-C.

Key Achievements So Far

• Accession to the Common Transit Convention (CTC):
  On 1 October 2022, Ukraine became a full member of the CTC and the Convention on the Simplification of Formalities in Trade in Goods, and began international application of NCTS (“customs visa-free”). Over 90,000 transit declarations have been processed under NCTS.

• NCTS Development:
  Ukraine successfully moved to Phase 5 NCTS, joining the first 20 Convention members to do so. This proves Ukraine’s ability to introduce and evolve EU customs IT systems in sync with EU countries.

• Authorization Tools:
  Transition from national simplifications to EU-aligned formats (AEO status, NCTS facilitations, and other simplifications available to all reliable businesses).
  Progress in AEO Programme: 46 companies have received 50 AEO authorizations in Ukraine.

• Harmonization of Legislation:
  Alignment with EU’s non-preferential rules of origin was completed, enabling consistent implementation of trade defence and sanctions measures.

• Decisions and Appeals:
  Mechanisms for customs decisions — including review, annulment, cancellation, and “right to be heard” — were introduced, mirroring EU practice.

• Military Goods Declaration:
  Procedures were aligned with EU and NATO standards.

• EU “Customs” Programme Membership:
  In 2023, Ukraine joined the EU Customs Programme, enabling access to joint IT development, information exchange, and best practice sharing.

• Alternative Rules of Origin:
  Implementation of diagonal cumulation under the Pan-Euro-Med Convention, allowing goods processed in Ukraine to acquire Ukrainian origin for export to EU/EFTA markets.

• Criminalization of Smuggling:
  From 1 January 2024, smuggling of excise goods became a criminal offence; from 1 July 2024, smuggling of all goods was criminalized.

• Legislative Screening:
  In late 2023, Ukraine completed a self-screening report comparing its legislation with EU acquis.
  In January 2024, the European Commission began formal screening — a mandatory step for candidate countries.

• EU Commission Assessments:
  The Commission’s 2023 report gave Ukraine one of the highest ratings among candidate countries in the “Customs Union” chapter.

• IT Strategy:
  Adoption of a long-term national strategic plan for digital development, transformation, and digitalization of the State Customs Service, based on MASP-C.

• New Customs Code Drafting:
  The Ministry of Finance and the State Customs Service, with EU4PFM and the Reform Support Team, started drafting a new Customs Code of Ukraine. The draft presentation is scheduled for December 2024, followed by stakeholder consultations.

In parallel, a bill amending the current Customs Code to implement selected UCC provisions has been submitted to Parliament.

International Cooperation

This includes not only consultations and knowledge sharing but also ongoing “real-time audits.” In a context of tight timelines, it is essential to “get it right the first time,” avoiding costly rework. The constant involvement of European experts allows for timely verification that every step meets EU standards.

Conclusion

The EU integration reforms introduced in Ukraine’s customs sector — particularly over the last 2.5 years of full-scale war — have enabled the country to proceed to official negotiations on Chapter 29: Customs Union. In April 2024, the European Commission submitted the draft negotiation framework for Ukraine to the EU Council — step 5 of 9. The next stage is its approval by the EU Council, followed by bilateral negotiations with each EU member state.

Cooperation for Ukraine’s EU accession continues, and we are confident in achieving this goal.

Authors:
Yuriy Draganсhuk – Deputy Minister of Finance of Ukraine for European Integration
Vytianis Alisauskas – EU4PFM International Expert on Customs