Smuggling as a negative factor of the state economic security

Abstract

The purpose of the article is to highlight the theoretical and practical foundations of the negative factor of the state's economic security, which is smuggling. To achieve this goal, the study accomplishes the following tasks: the concept of smuggling is considered; its main schemes are investigated; and the impact of smuggling on the economic security of the State is highlighted. It is noted that smuggling is the illegal import or export of goods across the border with the aim of avoiding customs duties, taxes or other government restrictions. It is noted that smuggling causes significant economic losses to the State, as it impedes legal trade, violates customs control rules and may contribute to the development of organised crime. This phenomenon causes significant financial losses to the budget through the illegal import of goods and evasion of customs procedures. Such actions pose a serious threat to the country's economic stability and have a negative impact on the financial system. Despite the awareness of the damage caused by smuggling and efforts to overcome it, the problem does not disappear and sometimes even takes on new forms. Smugglers are constantly adapting to new conditions and developing new ways to illegally move goods across customs borders. It is noted that the main reasons for the growth of smuggling in Ukraine today are shortcomings in legislation, corruption, and human factors. The main threats of smuggling to economic security are losses to the state budget, undermining competition, growth of the ‘shadow economy’, reduction of product quality, financing of criminal structures, and political corruption. It is also noted that the effective fight against smuggling requires an integrated approach and coordinated actions between government agencies, businesses and society and includes such areas as strengthening customs control; international cooperation: exchange of information with customs authorities of other countries, participation in international anti-smuggling programmes; legislative changes; educational campaigns; reduction of the tax burden: optimisation of the tax system to reduce incentives for illegal imports.