Businesses Back Ukraine's Customs Reform, Though Challenges Remain

Businesses report fewer bribery complaints and greater transparency, even as clearance times rise and smuggling estimates climb. Make us preferred on Google Share Facebook X (Twitter) LinkedIn Bluesky Email Copy Copied (Image by Depositphotos) Content Share Facebook X (Twitter) LinkedIn Bluesky Email Copy Copied Flip Make us preferred on Google Ukraine’s customs system maintains a generally positive reputation among businesses, with 62.3% of companies rating the service as effective, according to a survey of exporters and importers by the Institute for Economic Research and Policy Consulting (IER). The agency – which brought in 22% of Ukraine’s Q1 2026 budget revenue through VAT and duties – is undergoing reforms targeting corruption, as announced by Ukraine’s anti-graft bodies. Yet surveys show businesses are largely satisfied with its performance. Follow our coverage of the war on the @Kyivpost_official . As part of the reform , the Cabinet of Ministers appointed Orest Mandziy as Head of the State Customs Service on April 11, following a competitive selection process. In the IER survey of 345 enterprises, 47.5% rated customs performance as good or excellent. Challenges remain, however: half of respondents want shorter queues at border crossings, and 28.2% are calling for greater digitalization – which would help reduce financial losses and human error. Corruption has come under scrutiny recently, with the National Anti-Corruption Bureau of Ukraine (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAPO) exposing a bribery scheme at Rivne customs, a Hr.20 million ($460,000) laundering case involving a former Kyiv customs official, and a Hr.290 million ($6.7 million) smuggling ring in Chernivtsi linked to fraudulent “empty” truck declarations. Other Topics of Interest Ukraine in Strongest Position Yet, Finnish President Stubb Says Finland’s president said Ukraine’s battlefield position has improved markedly, with Russian losses mounting and Kyiv expanding its ability to strike deep behind enemy lines. Declining corruption, shifting obstacles The share of businesses reporting corruption or bribery issues fell to 21.3% in 2025, down from 30.3% in 2024. Concerns about a lack of transparency dropped sharply as well – to 25.8% from 43.8% a year earlier. Border queues remain the top challenge, cited by 48.7% of respondents. While this figure is unchanged from 2024, it is lower than in 2023, suggesting that tools like the E-Cherha (e-Queue) system have had a positive effect. Infrastructure capacity has emerged as the second most pressing concern, with 29.5% of businesses pointing to insufficient throughput at crossing points. Technical equipment at customs stations ranks third, flagged by 29.3% of companies, while imperfect legislation – though still a concern for some, who cite subjective interpretation of rules by officials – has fallen to fourth place (from 37.6% to 26.1% over the past year). On the international side, 76% of Ukrainian companies reported no obstacles from the customs authorities of neighboring countries. Among the 17% who did encounter difficulties, Poland and Hungary were the most frequently cited. Processing times have not yet improved. Average customs clearance time rose to 6.9 hours in 2025, up from 6.5 hours in 2024, while average inspection time ticked up from 3.2 to 3.4 hours over the same period. The estimated share of commodity contraband also increased, reaching 17% last year compared to 11.6% in 2024. To navigate these complexities, businesses are turning increasingly to digital tools: 64% of exporters and importers use the Diia.Business platform, and 54.2% use the Single Window for International Trade portal. For the first time, customs authorities have become the primary source of information for 50.4% of businesses – edging out customs brokers (50.2%) and general internet searches (45.4%). Mariіa Boltryk has been a journalist since 2022 and has been working for Ukraine's leading news agency Interfax-Ukraine. At Kyiv Post, she covers macroeconomics in Ukraine and business-related topics.