Yushchenko Says Honeymoon Over For Customs Service

KIEV, Ukraine -- Ukrainian president Viktor Yushchenko has demanded that the customs service carry out a fundamental purge of its staff in the next two months -- and wants the results of an inspection of 50 customs-houses on his desk in a month's time.

Yushchenko made his announcement in Kiev while presenting the new head of the State Customs Service, Vladimir Skomarovsky.

"We need new staff here. I'm allowing another 60 days, and I want a report back that this problem in the customs service has been solved: that worthy people capable of carrying out these duties have been appointed. Those found unworthy should either go to prison, or, if they don't deserve that, then to other jobs", said Yushchenko. "A fundamental purge of the service -- that is my demand. I won't agree to half-measures", he stressed.

The president said that in today's customs service everything had been "betrayed", and that the people within the service who ought to have been representing the interests of the state had not been carrying out their duties.

"Our customs service is riddled with holes", Yushchenko stated, accusing the leadership of the service of replacing the interests of the state with their families' and their personal interests. "You have failed the test of professionalism and good conduct", the president said.

The president also touched on the lack of professional customs policy at state-level. Addressing the customs officers present, he said that they were anathema in many Ukrainian businesses; the customs service's policies were putting Ukraine's domestic producers under threat.

In this context the president stressed that customs tariffs often exceed 100% of the price of the goods themselves. "If people are interested in this sort of trade, what are they supposed to do? Resort to bribery... That's why all the crooks are queuing up to see you", said Yushchenko, stressing that for identical goods tariff rates at different customs houses vary by as much as five times.

Yushchenko also highlighted another problem in the artificial lowering of customs tariffs for particular goods -- sometimes by as much as ten times. In particular this applied to illegal VAT compensation.

The president gave examples of computer equipment being falsely documented as bars of aluminium, of footwear declared at a value of $2/pair, when the true value was at least $20, and of completed television sets being passed off as television tubes.

"Last year 1,400,000 television tubes were imported, but the officially declared production of televisions only came to 400,000 sets. I ask you, what has happened to the other million tubes?" Yushchenko demanded of the customs service leadership. He also underlined that the first to answer for misdeeds would be those "with many stripes on their epaulets".

"Your honeymoon is over", Yushchenko said, stating that only professionals would be allowed to remain in the customs service. "In 30 days I want personal reports on my desk from 50 customs houses", the president said, noting that various agencies would take part in the inspection, including the State Security Service, the Ministry of Internal Affairs, and the Prosecutor-General's Office.