Smuggling in the electronics market: expert explained why the key problem is in logistics

Most smuggling schemes in Ukraine pass through customs in one way or another, as this is related to logistics routes and the specifics of customs authorities’ work. Their “windows” at customs allow the transportation of illegal batches of goods. This was stated in an exclusive commentary to UNN by Andriy Dligach, Head of Advanter Group, co-founder of the Center for Economic Recovery.

DetailsAccording to the expert, the main problem is the so-called “windows” at customs, which allow the transportation of illegal batches of goods. At the same time, a significant part of the shadow flows is related to wholesale supplies. Since it is almost impossible to track all fiscal receipts in stores, according to the expert, the most effective way to counter this phenomenon is to check companies’ reports and identify violations based on indirect data.

“There are tools that allow comparing various companies operating in certain markets based on their reporting, and understanding where there are abuses based on such indirect data. Similar data can be seen in the fuel market: they are actually collected openly, and then it becomes quite obvious to the entire market where companies are abusing and where they are not. But, on the other hand, in order to preserve commercial secrets, it is worth working not with end sellers, but with logistics chains, which, in fact, make it possible to implement smuggling schemes,” Dligach explained.

The expert also shared his own experience, noting that problems with “gray” deliveries existed decades ago when he headed the Apple representative office. Then the business tried to solve them by offering better service, cooperating with головні offices and neighboring countries, and добиваючись special conditions for official deliveries.

“Then there were the same problems, we called them “gray deliveries.” We tried to counteract them with better service and conditions, worked with the main office and neighboring countries to minimize illegal deliveries,” the expert noted.

According to Dligach, today honest businesses should not stand aside, but unite to influence the situation. Joint actions of entrepreneurs can help speed up changes in the customs and tax spheres and reduce the scale of shadow schemes.

“My advice is to create coalitions through the business community for the modernization of Ukraine, involve the institution of the business ombudsman and demand the fastest possible reboot of customs and the adoption of liberal tax and customs laws,” the expert summarized.

RemindThe Bureau of Economic Security of Ukraine is investigating facts of tax evasion and smuggling in the field of electronics trade. At the same time, dozens of cases related to the activities of popular торговельних networks are recorded in the Unified State Register of Court Decisions, in particular, the Yabko and Yabluka networks are under suspicion, where mass violations have been detected. Such кейси are becoming a threatening practice and indicate a large-scale problem in the field of electronics trade. The European Business Association previously drew attention to the shadow segment of the electronics market, which causes significant losses to the state budget due to non-payment of taxes and customs payments, and representatives of the American Chamber of Commerce noted that losses for Ukraine could reach UAH 5.5 billion (more than USD 135 million) due to non-payment of VAT for certain models of smartphones alone.