Illegal Seizure of Goods at Customs in Borispol (KBP) International Airport, Kiev, Ukraine
My friend Brian flew to Kiev last weekend, arriving on August 27th, 2011. He always travels light. He had just a backpack with a change of clothes. They stopped him at customs after scanning his bag. “It is the first time I have seen that equipment running,” Brian told me.
They asked him, “We see some pills. Do you have some pills in your luggage?” He said, “Yes. I have some Motrin in there.” They asked if it is in the original package. He said that it is.
Also in the bag were a diamond engagement ring and wedding band set. He also brought two cell phones, one for his fiancée and another for his future mother-in-law (who is a kind woman). The customs agents seized these items.
They held him at Customs for 4 hours. They announced that the phones are worth $1,000 each in Ukraine, and that the ring is worth $5,000. Brian said he paid only $200 each for the phones (his declared value.) The ring, he also purchased at wholesale.
In the brief time he had, he had to attain an official translation of his passport into Ukrainian and proffer it so he could appear in court and request return of his items. His fiancée pressed the court officials on what needed to happen in order to receive the items. They said, “Nothing but paying the import duty.” They explained that seizures have been down and higher ups are pushing for seizures.
The court assessed 44% import duties, the same as was demanded at Customs in Borispol airport. They wanted $2200 for the rings and 2 times $400 for the cell phones. They wanted $3000 total to settle the matter.
Why this is Illegal
Ukraine joined the World Trade Organization in May of 2008. The WTO is established to normalize and facilitate trade. Rules are clearly set forth. In the matter of importing (which excludes gifts such as an engagement ring!) the value is to be declared by the importer. If Customs officials believe the declared value to be different than that claimed, they may “request additional information.”
Here is a key component of the agreement wording (Uruguay Round) of the WTO:
The WTO agreement on customs valuation aims for a fair, uniform and neutral system for the valuation of goods for customs purposes — a system that conforms to commercial realities, and which outlaws the use of arbitrary or fictitious customs values.
So, here is Ukraine establishing arbitrary values for the rings and phones. There is no real basis for their valuation other than their command elements requiring that seizures increase. This is exactly corruption. It can only serve to harm Ukraine. What will result from this practice? Fewer goods will enter Ukraine!
One-sixth of the GDP of Mexico is imported goods- wealth sent to Mexico by nationals working in foreign countries, primarily the largest market in the world: North America. So, here is Ukraine announcing, “We don’t want your wealth! Keep it.” This has been their error from the beginning of Independence in 1992. Officials and men of influence have desired to maintain control so they can skim and benefit from graft.
Unfortunately, the world is staying away in droves. Ukraine is the world’s richest deposit of engineers. Has anyone heard of the great international engineering companies based in Ukraine? No. This is because firms stay away.
Ukraine has come a long way. Those who have been traveling there for two decades report how police stops (for collecting a “toll”) have greatly decreased. Yuschenko, the last president, announced that no graft would be tolerated under his watch, and corruption diminished even more. However, Ukraine remains a very corrupt nation because of greed in those who yet retain power.
Ukraine is such a beautiful nation. Some of the greatest people I have ever met in my life are Ukrainians. I will never forget a Colonel I met in Kuwait. He wept as he told me how beautiful is his Ukraine and how much she suffers because of the economy. I have never seen such passion for America in an American.
It is a beautiful nation. But, how long will this corruption remain about Ukraine’s neck, strangling her?