Criminalisation of Goods and False Declaration of Goods

On 9 December 2023, the Verkhovna Rada of Ukraine adopted the Law "On Amendments to the Criminal Code of Ukraine and the Criminal Procedure Code of Ukraine on Criminalisation of Goods and Excisable Goods Smuggling and False Declaration of Goods" (Draft Law #5420) (the "Law") in the second reading, which has already been submitted to the President of Ukraine for signature.

Certain provisions of the Law will come into force on 1 January 2024, in particular, regarding liability for smuggling of excisable goods, and for smuggling of all other goods – on 1 July 2024.

The Law introduces criminal liability for smuggling of excisable goods:

• in a significant amount (from UAH 1.136 million and more) – a fine of UAH 340 to 680 thousand;
• in a large amount (from UAH 2.271 million and more) – a fine of UAH 1.275 million to 2.040 million or imprisonment with deprivation of the right to hold certain positions or engage in certain activities and confiscation of property.

In the case of smuggling of goods in a significant amount (from 7.570 million or more), a fine is similarly provided for, and in a large amount (15.140 million or more), both a fine and imprisonment with deprivation of the right to hold certain positions or engage in certain activities and confiscation of property.

Imprisonment will be applied only in cases where the criminal offence was committed on a large amount, by an official, by prior conspiracy, by a group of persons or by an organised criminal organisation.

In particular, criminal liability is incurred not only for the movement of contraband with concealment but also for submitting to the customs authority forged documents or documents obtained illegally or containing knowingly false information as a basis for the movement of goods. However, in order for this liability to apply, such documents must be the basis for the movement of goods, be subject to mandatory declaration in accordance with customs legislation, and have an impact on the amount of customs payments or compliance with non-tariff regulation measures. Thus, the legislator has exhaustively defined the cases of prosecution for smuggling by submitting forged documents.