19:57 16.03.2015

Consumer electronics importers demand transparency from customs regulator

4 min read

Kyiv, March 16 (Interfax-Ukraine) – The Association of Information Technology Enterprises of Ukraine (APITU) has put forward an initiative to control the State Fiscal Service, in particular, its customs department, with the aim to ensure equal conditions for all importers of consumer electronic devices.

This was announced by association representatives at a press conference at the Interfax-Ukraine press center on Monday.

According to the association, the State Fiscal Service does not fulfill the commitments it undertook when it signed a memorandum with the APITU and the Association of Ukrainian Consumer Electronics Importers in March 2014.

APITU Director General Yuriy Perohanych says that the memorandum was designed to fight grey imports and smuggling and to ensure that budgets receive all due funds, along with the creation of equal conditions for all companies on the market.

"Association members undertook to declare actual prices of commodities without [deliberately] lowering them and avoiding smuggling-related import schemes, while the government agency pledged to assist businesses, identify unfair companies which lower customs costs or continue importing 'in circumvention of customs gates.' We're adhering to our commitments, we regularly provide information about producers' [floor] prices lower which it's impossible to import without losses, but unfortunately there have been no dramatic changes," he said.

APITU Member Andriy Dehoda added that the State Fiscal Service had created problems for the signatories to the memorandum alone.

"The signatories to the memorandum have faced problems, as indicative prices have been applied to us alone, neither other market participants, nor 'grey' importers have seen them," he said.

What is more, he said, after having sent inquiries to the customs service regarding the companies that have grown into large importers for several months, the APITU received the answer that they had been examined and that no violations had been registered.

"At the same time, we have been exposed as lobbyists of the interests of our own businesses and are unable to compete," he added.

The APITU claims that any official who respects himself or herself would resign under current conditions.

"We won't let new people who will come to change the incumbent ones use shadowy schemes," the APITU said.

The association estimates that the national budget may fall short of dozens or even hundreds of billions of hryvnias from illegal 'brown goods' imports.

"We know how the schemes work to minimize or avoid taxes or completely dodge customs clearance. Early last year it was a voluntary gesture from our side and we took a risk. Having declared that we will import with the use of the 'white' model, we exposed those who didn't join, to a risk. We made such a decision and want to see the state moving towards us. The system which has been built for 20 years should be dismantled and a brand new system should be built along with tax reform," MTI Vice President Serhiy Bashlakov said.

Chairperson of the Board of the Association of Information Technology Enterprises of Ukraine Ellina Shnurko-Tabakova said in turn that the State Fiscal Service could have informed the public about what, how and where is imported with the monitoring of the entire chain of goods movement, which would protect the consumer and create competitive conditions.

"In addition, we are waiting for a response to our letters not in the form of accusations, but investigations and their results. We stand for the formation of a single database with at least the EU, the return of ІMEI codes, so that our tax police could be able to track what in fact is being imported in here," she said.

On March 18, the results of the investigation into abuses by the State Fiscal Service are to be made public. Due to this, APITU members asked the Prime Minister and the Minister of Economic Development and Trade to make all the results and materials of the case public, to ensure maximum transparency and clarity for the public of possible subsequent personnel changes.

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