President Volodymyr Zelensky on Oct. 17 signed a bill reforming the State Customs Service and introduced to tackle corruption and save funds otherwise lost to smuggling.
After the presidential signature, the law will enter into force on Nov. 1.
The legislation, approved by the parliament last month, was pushed through after prolonged pressure from Western partners and Ukrainian business associations. The reform is also a necessary step toward Kyiv's accession to the EU.
Ukraine's Customs Service has been described as the "biggest cash cow" and the "largest tax-evasion scheme in the country" as smugglers avoid an estimated $2.4 to $3 billion in customs payments each year, the Kyiv Independent reported on Oct. 14.
Ukrainians view the State Customs Service as the most corrupt institution in the country, with previous attempts at reforms falling flat.
As one of the key changes under the bill, the new head of the service will be selected by an independent committee, half of which will consist of independent experts. The new chief will be able to choose his deputies.
The legislation also includes audits by external experts, a one-time vetting of all the current employees, and greater independence from the Foreign Ministry.
The law aims not only to reform the institution but also to bring more funds into state budget as Ukraine faces a deficit of $35 billion next year.
The country has already taken a number of painful steps, such as a recently approved tax hike, to shore up the part of the deficit that won't be covered through external aid.
Andrea Januta
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