Confiscated Property under Digital Control: Returning Enforcement Proceedings from the Archive and Preventing Debtors from Hiding Assets Now Possible with One Click

Ukrainian legislation in the field of compulsory enforcement of decisions and customs regulation is undergoing changes. The adoption of Law No. 4833-IX marked a new starting point for the digitalisation of stages in enforcement proceedings. The continuation of this reform was the Order of the Ministry of Justice and the Ministry of Finance dated 30 June 2026, No. 1739/5/34. The document adapts the Procedure for Interaction between the State Enforcement Service and Customs to new requirements, introducing new terminology and conditions for the automation of the Automated Enforcement Proceedings System (AEPS).

Terminological Changes

One of the changes introduced by the order was the clarification of the interaction procedure between the State Enforcement Service and customs authorities. In the document, the phrase "opening of enforcement proceedings" was replaced with "opening/renewal of enforcement proceedings." This change aligns with the new Article 37-1 of the Law of Ukraine "On Enforcement Proceedings," which regulates the procedure for renewing enforcement proceedings after their return to the claimant.

In practice, this should eliminate situations where seized or confiscated property remained without proper procedural support due to the formal closure of enforcement proceedings. From now on, the property will remain under the control of the state executor regardless of whether it concerns the opening of new proceedings or the renewal of existing ones.

These changes are part of a broader digital reform of the compulsory enforcement system provided for by Law No. 4833-IX. AEPS is defined as an information and communication system that ensures the collection, accounting, and provision of information about all enforcement actions.

AEPS now provides not only document creation but also automated interaction with banks, customs, and registries. The Unified Debtor Register operates in real-time, preventing debtors from alienating property even before its physical description.

Parties to the proceedings gain access to documents in electronic form, increasing the speed of information exchange.

From Border to Budget: Managing Confiscated Property

The procedure for interaction between customs authorities and the State Enforcement Service establishes the algorithm for managing confiscated property—from its seizure to its sale and the crediting of funds to the state budget.

Initially, responsibility lies with customs authorities. They are responsible for the accounting and storage of property and conduct a preliminary valuation before transferring it to the state executor. Following the opening or renewal of enforcement proceedings, the state executor must, within five working days, describe the property and impose a seizure upon it.

A separate stage concerns determining its value. Customs prepare a certificate of the goods' value, including all applicable taxes and fees. Based on this document and the official exchange rate of the National Bank of Ukraine, an appraisal entity determines the market value of the property, which serves as the starting price for its subsequent sale.

The sale of confiscated property is carried out exclusively through electronic auctions conducted by an authorised enterprise, including via the electronic trading system for seized property (SETAM). This mechanism aims to ensure transparency of procedures, competitive asset sales, and maximum replenishment of the state budget through the sale of confiscated property.

Specific Categories of Property

A separate section of the Procedure for Interaction is dedicated to special categories of confiscated property for which the legislator has provided specific disposal procedures. These exceptions aim to prevent loss of asset value or inefficient use of budget funds.

Primarily, this concerns perishable goods. Until their description and seizure by the state executor, customs authorities may independently decide on the disposal of such goods. This prevents spoilage and minimises financial losses for the state if delays in sale would render the goods unusable or significantly reduce their market value.

A separate mechanism is also provided for property whose sale is economically unfeasible. If the commission determines that the costs of appraisal, storage, and electronic auctions exceed the potential income from the sale, it may decide to refuse the sale of such property.

In such cases, the legislation provides alternative ways to dispose of assets. Depending on their characteristics, the property may be transferred free of charge to recipients specified by law or subject to destruction (utilisation) in the prescribed manner. This approach aims to ensure economically justified management of confiscated assets and prevent unreasonable expenditures from the state budget.

One of the technical but important changes to the Procedure was the update of clause 15. The wording "by which enforcement proceedings were opened" was replaced with "under enforcement by which it is held." This wording clarifies that the customs authority must provide information on the disposal of perishable goods to the state executor who is actually conducting the enforcement proceedings at the relevant time, regardless of whether they originally opened them.

This change has practical significance in cases of transferring materials between state executors or renewing enforcement proceedings after their return to the claimant. It helps avoid legal uncertainty and ensures continuous control over the movement of confiscated property.

The order stipulates that these changes come into force simultaneously with Law No. 4833-IX. The essence of the decision embedded in the Order is simple: the state must operate as a single digital mechanism where every unit of confiscated property—from a vehicle to a batch of goods—is accounted for, appraised, and sold in the shortest possible time with maximum benefit to the State Budget of Ukraine.

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