IMF Says Ukraine Has Implemented 40% of Customs Reform Plan

Ukraine has implemented 40% of its long-term customs reform plan which reviewed customs-related components of Ukraine’s National Revenue Strategy through 2030, according to an assessment by the International Monetary Fund (IMF).

Ukraine’s customs reform is a core element of the country’s broader push to mobilize domestic revenues amid a substantial wartime budget gap, outlined by the country’s National Revenue Strategy, introduced in 2024.

The IMF focused on assessing progress in reforming the State Customs Service, including rotation of officials, improvements to human-resources policy and strengthening of internal audit systems.

Ukraine’s Ministry of Finance reported the statement following its November mission in Vienna.

The IMF gave a nod to several successful measures within the reform:

• Development of a Change Management Concept and a draft communications strategy;

• Approval of an HR management strategy and a shift toward competency-based HR processes, staff rotation and three-year contracts;

• Creation of conditions for a functioning internal audit and control system.

The IMF outlined further steps to maintain reform momentum, including:

• Update the key performance indicator for customs clearance time to align with international standards;

• Refine the rotation policy based on global best practices, including anti-corruption considerations and risk-based classification of positions;

Other Topics of Interest

Ukraine's MHP Plans to Buy 70% of Greek Poultry Producer Nitsiakos

The Ukrainian agrifood group intends to buy into Th. Nitsiakos AVEE, a vertically integrated Greek producer founded in the 1970s, reserving the right to full ownership in the future. Closing still hinges on regulatory clearances.

• Finalize strategic documents and prepare tactical communications plans in line with IMF guidance.

According to the IMF, the Finance Ministry and Customs Service remain committed to implementing the National Revenue Strategy for 2024–2030.

Future actions for Ukraine’s government include adopting a new Customs Code, granting the customs service law-enforcement status and implementing legal and IT reforms aligned with EU standards.

IMF: Customs reform is key to boosting Ukraine’s revenues

While Ukraine’s partners cover the $40-50 billion budget gap caused by Russia’s full-scale invasion and 70% of spending for defense, Ukraine’s Ministry of Finance is aware that these financial buffers are temporary and will end if the hostilities stop.

Ukraine’s National Revenue Strategy (NRS) was drafted to create a revenue mobilization and fiscal reform strategy to beat a record wartime budget gap.

The NRS is a six-year roadmap that focuses on modernizing both tax and customs systems, strengthening integrity and digitalization, and aligning legislation with EU rules.

The Finance Ministry estimates that, if fully implemented, the broader revenue strategy could add up to 27% of GDP over the horizon of the reform, including contributions from higher excise taxes, VAT alignment with EU rules and new environmental taxes.

It envisages changes to simplified taxation for businesses, revisions to corporate profit tax and VAT in line with EU practice, higher excise rates for fuel, alcohol and tobacco and, over time, new approaches to taxing carbon emissions and “windfall” profits from the post-war recovery.

All these measures still require separate draft laws, parliamentary debates and presidential approval before they can take effect. Customs reform is one of the central pillars of the strategy.

The government plans to transpose the EU Customs Code into Ukrainian law, harmonize preferential import regimes with EU norms and criminalize large-scale smuggling.

The Finance Ministry also wants to restore documentary audits by customs, equip checkpoints with scanners, scales and video systems and introduce new performance indicators to reduce clearance times and limit human discretion.