Important Draft Laws. Issue 9: Adapting the Customs Code to European Rules and Academic Integrity

Important Draft Laws. Issue 9: Adapting the Customs Code to European Rules and Academic Integrity

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30 January 2024
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Overview of draft laws registered from January 7 to 21, 2024.

During this period, 28 draft laws were registered: 6 by the government and 22 by people’s deputies. Among the most significant are changes in two areas: 

  • Education: Reforming the system of state procurement funding, transitioning to a grant-based system of student support, and introducing accountability for academic integrity violations.
  • Customs: Adapting the Customs Code to meet the EU requirements.

Further, we’ll discuss these and other changes proposed by lawmakers.

Adapting the Customs Code to European rules

Bill No. 10411 proposes amendments to the Customs Code to align Ukraine’s customs regulations with those of the European Union. The bill’s provisions enhance the protection of intellectual property rights, introduce the concept of customs representation (allowing the appointment of a representative to interact with customs authorities), and improve the criteria for obtaining authorized status, which includes simplified border crossings (authorized sender/recipient status, authorized economic operator status).

The bill includes numerous changes to border crossing procedures and customs authorities’ powers. Notably, it expands the powers of customs authorities in the context of post-customs control. Customs authorities are now permitted to verify the accuracy of information based on a company’s accounting data, and the proposed control periods are extended from 30 to 1,095 calendar days from the date of goods release. 

The project includes the repeal of the moratorium on customs inspections. From March 1, 2024, documentary inspections to ensure compliance with Ukrainian customs laws will be reinstated.

It is clear that this bill touches upon many interests, so to consider the input of all stakeholders, the project’s initiators invite the business community, experts, and scholars to participate in working groups to develop this bill. These working groups will commence their activities on February 1, 2024. 

Academic integrity in the educational process

Bill No. 10392, titled “On Academic Integrity,” aims to ensure academic integrity in the educational process and scientific activities in Ukraine and eradicate phenomena such as plagiarism, self-plagiarism, bribery, document forgery, and more. It defines the ethical principles of behavior for participants in the educational process and scientific activities, including instructors, applicants, students, graduate students, doctoral candidates, and research staff.

The bill’s text lists violations of academic integrity, including alienation of authorship (writing a scholarly work or research by one author and passing it on to another person who publishes it under their name); academic plagiarism; self-plagiarism (using one’s own previous works and presenting them as new); fabrication (inventing facts); falsification (conscious modification of data leading to the creation of false information about the results of academic activities); unethical assessment of learning outcomes; lack of independence in task execution; academic sabotage (actions or inaction by educators, researchers, or students that obstruct the exercise of another person’s rights in their academic activities); encouragement of violations of academic integrity; institutional violations (e.g., the failure to take measures aimed at detecting violations of academic integrity), etc.

Monitoring compliance with academic integrity will be the responsibility of a designated individual (an authorized person) or a collegial body established within a scientific or educational institution specifically for this purpose. Violators of academic integrity will receive warnings or disciplinary reprimands and may even face suspension from the educational process or scientific activities. 

Transition from the state procurement system in education to a grant system

Bill No. 10399 introduces significant changes to the funding and conditions for obtaining higher education. Currently, prospective students have two options for financing their education: through state (or regional) orders, which means funding from the government budget (representing 40% of all students), or through contractual agreements, using funds from individuals or legal entities.

The bill proposes new financing opportunities for those who need to earn more points to qualify for state-funded education but cannot afford to pay through a contract. Students will have the option to receive grants from the state, utilize long-term loans at a preferential interest rate of 3% per annum (the detailed procedure for this will be determined by the Cabinet of Ministers), use vouchers from the employment center in accordance with the law on employment, or benefit from the support of the President of Ukraine’s Fund for Education, Science, and Sports. 

Such financial support will be available to students from privileged categories (persons with disabilities, those affected by the Chornobyl disaster, internally displaced persons, and children of deceased participants in the Revolution of Dignity and combat operations) if such support is necessary due to the family’s financial situation. However, when awarding scholarships, the points scored by the student at the external examination or during the entrance competition will also be considered.

According to the authors, these changes will make education more accessible and allow for the support of talented students from less affluent backgrounds.  

Streamlining the transfer of property of educational institutions to local authorities

Draft Law No. 10395 aims to improve the management of property owned by state and municipal higher education institutions (HEIs). It will grant local self-government bodies and military administrations the authority to transfer HEI property to the community’s ownership if it is not being used for educational purposes to enhance the level of public service provision.

For example, a higher education institution may own water supply networks. Often, educational institutions lack the necessary resources to maintain and upgrade these engineering networks. The project allows for the transfer of such networks to the management of the territorial community, which can ensure their efficient operation. However, many communities may also lack the required resources, so situations may arise where neither the HEIs nor the relevant government authorities wish to own certain properties. The bill should outline ways to resolve such situations. 

Supporting IDPs

Deputies have registered Draft Law No. 10405 to strengthen the social protection of internally displaced persons (IDPs). They will be categorized as workers with a preferential right to remain employed when employee reductions occur.

The project also includes additional benefits for IDPs, such as exemption from customs duties and administrative service fees when obtaining a new passport to replace a lost or damaged one. It also exempts them from administrative fees related to declaring, registering, or deregistering their place of residence. 

This draft law will enhance the social protection of internally displaced persons in the labor market. However, it is discriminatory against other categories of citizens since it deprives employers of the right to retain a more qualified employee (ultimately, it may reduce employers’ willingness to hire IDPs). Therefore, it may be advisable to remove the provision from the bill that gives IDPs a greater chance of not losing their jobs. 

Protecting residents of buildings damaged or destroyed due to hostilities

Bills 10406 and 10407 propose introducing utility payment benefits. The first one suggests allowing residents not to pay for utility services in the event of damage to their residential premises due to hostilities. It applies to damages that make further use of the accommodation impossible or temporarily threaten people’s lives and health. Documentary proof of the loss and a statement to the utility provider is required to receive such a benefit. The second draft law permits not to pay for the management of a multi-apartment building during martial law and within a year after its cessation in case the building is damaged due to hostilities, rendering it uninhabitable or posing a threat to the lives and health of people and the property of co-owners.

Termination of funding for political parties

Bill No. 10401 proposes suspending the funding of parliamentary parties during martial law. The initiators justify this by the need to economize on budgetary funds during wartime. State financing of parties is considered a key element of political finance reform aimed at reducing oligarchic influence and increasing transparency in political competition. In 2024, UAH 840 million was allocated from the budget to fund four parties (with an additional UAH 99 million earmarked for compliance with gender quotas). Attempts to halt state funding for parties have been made in the past. It included proposals from the head of the National Agency on Corruption Prevention (addressed to the Chairman of the Verkhovna Rada), members of the Servant of the People party (amendments to the 2022 budget project), and a petition addressed to the President of Ukraine.

Expanding transparency and openness in the work of parliamentary committees and temporary investigative commissions 

Bill No. 10414 proposes mandatory disclosure of the individual voting results in parliamentary committees on all matters, publishing the minutes and transcripts within ten days after the session and video recordings of the sessions, except in cases where the committee meeting was closed. Additionally, the draft law suggests publishing individual voting results for the findings of Parliament’s temporary investigative commissions.

Adopting this draft law will enhance the transparency of parliamentary proceedings. 

Resolving the issue of arrears of coal mining enterprises under the Ministry of Energy in payment of the unified social contribution

People’s deputies have introduced Bill No. 10415 to address the issue of substantial debts of coal mining companies to the Pension Fund and social insurance funds (e.g., the total debt of the SOE Lvivvuhillia currently amounts to UAH 524 million, of which UAH 501 million are penalties and fines). The draft law’s main idea is to allow companies to defer the payment of their debt for five years and write off penalties and fines. Since these companies are state-owned and unprofitable, they will likely need additional state funding to settle this debt. Therefore, writing off penalties and fines to enable the company to repay the debt may be reasonable. However, at the same time, it is necessary to improve the management of these enterprises.

Adopting this draft law will also impact the employees of these companies. According to current legislation, periods for which the company has a debt in paying the USC are not counted towards the insurance period that qualifies for preferential pensions. Therefore, if the debt is partially written off and later paid off, employees will be able to receive a higher pension. 

Supporting combatants through simplified land leasing

Draft Laws 10417 and 10418 propose granting veterans the right to preferential leasing of land plots of up to 2 hectares. This benefit will be in effect for five years after martial law ends and applies to agricultural lands of state and municipal ownership.

Veterans can lease these plots for 0.1% of the normative monetary assessment (the regular rent for such plots ranges from 0.3% to 1% of the regulatory evaluation). Combatants will have the right to enter into leasing agreements for ten years and can sublease these plots to other individuals without restrictions. 

Amnesty for those eligible for military service

Bill No. 10419 provides amnesty for individuals who have not committed especially serious crimes or crimes against the foundations of national security and have expressed a willingness to perform military service by conscription during mobilization. One of the key conditions for applying amnesty is the person’s fitness for military service during martial law. Individuals who choose this path must report for military service within 24 hours and have an assessment of suitability for military service.

Individuals eligible for amnesty may be exempted from military service based on the findings of the military medical commission due to injuries sustained while performing combat or service tasks.

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