UNECE Steering Committee on Trade Capacity and Standards High-Level Segment Removing regulatory and procedural barriers to trade in the Republic of Albania Geneva, Switzerland, 26 May 2016 General Directorate of Customs Ongoing Efforts and Future Plans Mirela Meko Deputy Director General

Outline Context Achievements Ongoing efforts UNECE recommendations: immediate priorities Conclusion

CONTEXT 3 Title Here According to WB Report “Doing Business” Albania ranks ta 37 among 186 countries, relates to Trading across borders Harmonization of national legislation with EU acquis (Albania received the EU Candidate status on 24 June 2014) Title Here Global supply chains are becoming more and more complex: Increasing emphasis on customs to facilitate timely and secure trade CUSTOMS REVENUES COMPRISES 38 % OF STATE BUDGET

Achievements Customs modernization 4 ASUCUDA ASYCUDA World is fully operational in all regional offices ₋100% declarations are processed through ASYCUDA ₋100% DTI All customs regimes are implemented, including Transit and Warehousing Full risk-assessment and selectivity module: Customs officers are allocated for physical inspection automatically by the system Updates of reference data (tariff, etc.) made in the HQ are automatically available in all Customs offices All customs declarations are automatically consolidated in the Customs HQ database Customs regime Risk assessment Reference data

Achievements Border management and transit trade 5 Applies UNECE Conventions Border Management Integrated Border Management (IBM) legislation and institutions are largely in place, and, are in full compliance with the EU’s Acquis Communautaire requirements ─Customs Convention on the International Transport of Goods under Cover of TIR Carnets (TIR Convention) ─International Convention on the Harmonization of Frontier Controls of Goods ─European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR) ─Agreement on the International Carriage of Perishable Foodstuffs and on the Special Equipment to be Used for such Carriage (ATP)

Ongoing reforms Further simplification and streamlining of customs procedures As envisaged in Albania’s new Customs Code, GDC is in the process of developing : A transit module that is fully aligned with the EU system; The local clearance procedure; Pre-arrival processing procedure (i.e., advance lodging of information prior to the presentation of goods to customs). Authorized Economic Operators (AEOs) schemes. Simplified procedures, including simplified declaration, self-assessment, centralized clearance for AEOs and electronic entry in the declarant’s records (EIDR) Integrating into the Integrated Customs Information System the EU New Computerized Transit System (NCTS), the Integrated Tariff Management System (ITMS) and the Excise Movement and Control System (EMCS)

Single Window Status Quo Priority area and a commitment under the WTO Agreement on Trade Facilitation. Albania has the political will to overcome resistance and mobilize resources Establishing a SW is challenging. It requires Strong lead agency with the necessary authority Partnership between Government and Traders Modern ICT systems participating agencies, particularly Customs Clear objectives that take capacities of the different agencies into account Traders should be trained on the use of the SW

Single Window UNECE Recommendations It is important to create a core team of experts on SWs within State agencies and service providers for proper planning, based on broad based consultations on, among others, the scope of the SW, its structure, development needs, implications for regional integration and the sequence of the capacity building efforts. ─Should the development of the SW include (and commence with) the re- engineering of business processes in the other agencies involved? ─Will this go so far as to include the rationalization and harmonization of data and data elements, and if so, then in line with which international standards? Synergies should be created with ongoing efforts to integrate the EU systems (ITMS, EMCS and NCTS) and broader national initiatives Any SW plan should be tested through cost-benefit analysis as well as regulatory impact assessment, and measured against successful experiences elsewhere.

UNECE study recommendations Immediate priorities for Customs Address instances of repetitive submission of similar or identical information. Address the lack of clarity over documentary requirements Publish a complete list documentary requirements for products subject to mandatory regulations, along with detailed instructions and associated prices, and alert traders, through the media, and via customs alerts on changes to this list. Create a proper system for regulating customs brokers Establish a strategic framework for ensuring greater use of electronic documents Improve weighing practices at BCPs and inland terminals Reconsider working hours at main BCPs and inland terminals Abolish unnecessary fees

UNECE study recommendations Immediate priorities for Customs Consolidate risk based control management systems and techniques ─Assistance should be provided to GDC in developing the AEO scheme, which concentrates on customs simplifications for reliable traders ─In parallel, and with an eye to creating synergy with the AEO scheme, the GDC post-clearance control/ audit function should be developed to allow for undertaking systems-based trader audits ─Establish procedures and manuals for guiding audit visits, as these are essential for AEOs and PCC function ─A thorough review of the risk parameters and profiles in the ICIS should be undertaken, with a view to establishing a prompt, meaningful and lasting overall increase in the percentage of cargo assigned to the green channel, and a decrease in that assigned to the yellow and red channels ─The implementation of new procedures, such as pre-arrival processing, requires knowledge of the options and the conditions related to the new procedure. This requires training courses for Customs staff and if possible the trading community as well, including carriers and clearing agents

UNECE study recommendations Immediate priorities for Customs Abolish unnecessary physical control measures, Address shortfalls in customs valuation processes ─Accord priority to improving the existing system to allow for the provision of advance rulings (including binding rulings) in relation to tariff classification, origin of goods, and valuation. ─Publish up-to-date information in changes in HS codes Improve inter/intra-agency coordination at the operational level

Conclusion Clearance time is only one aspect of improving the trade logistics chain: improvement needs to be made in port processes and the still excessive standard inspections Single Window is one approach that goes beyond Customs and aims at streamlining operations of other agencies and members of the trading community. More Members of the trading community need to be drawn into the discussions Modalities of implementing the reforms are important : political support, technical expertise, independence, financial stability, often external support.