Even in the fourth year of Russia’s full-scale invasion, Ukrainian businesses continue to view the customs system more positively than negatively. Yet, the latest survey of exporters and importers suggests that the focus of reform is changing. Companies are no longer primarily concerned with corruption or administrative opacity; instead, they increasingly demand faster procedures, greater legal certainty, modern infrastructure, and predictable implementation of customs rules.
These are among the key findings of the annual survey “Customs Procedures in Ukraine During Wartime: Business Assessments and Expectations in 2025”, conducted by the Institute for Economic Research and Policy Consulting (IER) among Ukrainian exporters and importers.
Confidence Remains Positive, But Reform Fatigue Is Visible
The Business Perception Index of Customs Performance reached 0.29 on a scale from -1 to +1, indicating that positive assessments continue to outweigh negative ones. Although the index declined slightly from 0.30 in 2024 and 0.32 in 2023, it still reflects an overall favorable perception of customs administration.
Importantly, businesses are not calling for a complete overhaul of the institution. Rather, they expect its continued modernization. More than 62% of respondents describe customs as generally effective but still in need of improvement, while nearly 12% believe it is already functioning effectively. At the same time, about one-quarter argue that deeper reforms are still necessary.
This distinction matters. The survey suggests that Ukrainian businesses increasingly see customs reform not as a matter of rebuilding institutions from scratch but as a matter of improving the quality, consistency, and efficiency of existing procedures.
Infrastructure, Rather Than Corruption, Has Become the Main Constraint
For the second consecutive year, border queues remain the most significant challenge, affecting nearly half of the surveyed companies. However, unlike in previous years, concerns about corruption and transparency have declined substantially.
The share of businesses identifying corruption and bribery as a major problem fell to 21.3%, compared with 30.3% a year earlier and 38.4% in 2023. Similarly, complaints about insufficient transparency declined dramatically.
Instead, businesses increasingly cite limited cross-border capacity, inadequate equipment, and inconsistent enforcement of customs legislation. Notably, when respondents criticize customs legislation itself, many refer to uneven interpretation and discretionary enforcement rather than deficiencies in the legal framework.
From a liberal institutional perspective, this represents an encouraging shift. As corruption concerns recede, businesses become more sensitive to the quality of governance and the predictability of administrative decisions. Equal application of rules matters at least as much as the rules themselves.
Railway Users Report a Less Positive Experience
One notable finding concerns differences between transport modes. Companies that rely primarily on road transport evaluate customs significantly more positively than those that rely on rail. Businesses operating through rail corridors report substantially lower satisfaction levels and are considerably more likely to perceive a deterioration in customs performance.
This pattern does not necessarily imply weaker institutional performance by customs authorities themselves. Rather, it points to operational bottlenecks associated with railway logistics, infrastructure constraints, and longer processing times that disproportionately affect rail users.
Addressing these issues may require targeted improvements in coordination, infrastructure, and procedural efficiency rather than additional regulation.
The Next Reform Agenda: Saving Time, Reducing Costs
When asked what successful customs reform would look like, businesses overwhelmingly focus on practical outcomes.
Their highest priorities include:
- reducing the time required for customs procedures;
- lowering financial costs associated with clearance;
- enabling fully electronic document submission;
- expanding automation and minimizing human discretion;
- further reducing corruption risks.
Interestingly, demands for enhanced border security or additional controls have become less prominent than in previous years. At the same time, respondents increasingly emphasize building trust in customs institutions and harmonizing Ukrainian legislation with EU standards, reflecting Ukraine’s broader European integration agenda.
This evolution suggests that businesses are moving beyond short-term wartime concerns toward a longer-term vision of an efficient and predictable trading environment.
Digitalization Continues to Deliver Results
Digital transformation remains one of the strongest success stories of Ukraine’s customs reform. More than half of the surveyed companies actively use services available through the Single Window for International Trade, with customs declarations and electronic document management among the most frequently accessed features. Awareness and use of the Customs Service’s Telegram bot have also expanded, with users generally reporting positive experiences.
Digital tools reduce transaction costs, increase transparency, and limit opportunities for discretionary decision-making. From a market-oriented perspective, these innovations strengthen the institutional foundations necessary for competitive international trade.
Grey Imports: A Mixed Signal
Respondents estimate that the average share of so-called “grey imports” increased to 17% in 2025 following a record low in the previous year. Nevertheless, the estimate remains significantly below pre-war levels and continues to fit within the broader long-term decline observed since 2018.
It is important to note that the survey captures perceptions of businesses rather than independently verified market shares. Therefore, the increase should be interpreted as a shift in business sentiment rather than as conclusive evidence of an expansion in informal imports. At the same time, it underlines the continued importance of ensuring a level playing field and consistent enforcement of customs rules for all market participants.
The Future of Customs Reform Lies in Better Institutions
Perhaps the survey’s most important message is that Ukraine’s customs reform has entered a new phase.
Businesses increasingly recognize improvements achieved over recent years, particularly in digitalization and institutional transparency. Yet they also expect reforms to move beyond anti-corruption efforts toward creating a customs environment characterized by predictable rule enforcement, high-quality infrastructure, efficient procedures, and minimal administrative discretion.
These priorities align closely with liberal economic principles. Efficient customs systems should facilitate trade rather than impede it, reduce transaction costs rather than create unnecessary burdens, and apply rules consistently rather than selectively.
As Ukraine advances on its path toward EU membership, strengthening legal certainty and improving the everyday experience of legitimate traders may prove just as important as adopting new legislation. Sustainable economic growth depends not only on good laws but also on institutions that implement them fairly, transparently, and predictably.