Administrative and legal regulation and the challenge of ensuring compliance with environmental standards in the production and circulation of excise goods

This study aimed to examine the regulatory mechanisms governing the circulation of excise goods in Ukraine in order to identify ways of optimising these mechanisms and enhancing their effectiveness. A comprehensive analysis of the current Ukrainian regulatory framework, statistical data, and international practices in the regulation of excise goods was conducted using formal-legal, statistical, and comparative methods. The research identified key issues in the administrative and legal regulation of excise goods. In particular, it was found that the existing regulatory mechanisms insufficiently account for environmental requirements, contributing to negative environmental impacts and increasing ecological risks. The analysis of regulatory provisions revealed a lack of clear environmental assessment criteria for producers of excise goods, as well as inadequate oversight of the disposal of industrial waste. Furthermore, the study highlighted the limited alignment of Ukrainian legislation with European standards, particularly regarding the digitalisation of control over the production and circulation of excise goods. Additionally, it was established that the current mechanisms of administrative oversight – such as inspections and control measures – lack sufficient transparency, creating conditions conducive to corruption. Statistical analysis revealed that the share of illicit trade in tobacco products increased from 2% in 2017 to 17.8% in 2022, while the number of convictions declined threefold. Drawing on international experience, particularly the practices of Germany, France, Italy and the Netherlands, several solutions have been proposed. These include the introduction of electronic excise stamps, the development of automated systems for accounting and monitoring the circulation of excise goods, enhanced customs controls at borders, and the establishment of public registers of licensees. It is also recommended that regulatory acts be improved by adapting European approaches to Ukrainian conditions, which would contribute to reducing the shadow economy and increasing tax revenues. The findings highlight the need for systemic reform in the regulation of the excise sector and the development of an effective model of administrative oversight that aligns with international standards