Customs Index with the support of the InMind research company EBA Customs INDEX Based on III/IV quarter 2010 Conducted by EBA with the support of InMind research company May 2011

Customs Index with the support of the InMind research company 2 Project methodology (1) The presented results of the EBA Customs Index are based on the 2 nd wave of expert poll conducted among the EBA Customs Committee members. Methodology: The EBA Customs Index is the set of 5 indicators of customs procedures evaluations by the companies that interacted with the customs: Average number of days spent for customs clearance of one shipment Rate of goods physical inspections (%) Customs classification: rate of goods classification that was changed by customs (%) Customs value: total number of rejections to apply 1st customs valuation method (share of total customs declarations number, %) Average number of documents per one shipment Additionally companies’ experience with customs audits/inspection and perception of corruption are analyzed.

Customs Index with the support of the InMind research company 3 Project methodology (2) The results are presented by each of 5 indicators separately as the average value for each indicator (mean) reflected also in the charts the numeric value separating the higher half of a sample, from the lower half (median) The results are also split by:  Company type: a) only import/export produced goods, b) companies import/export goods and also have local production  Company size: a) small/medium business; b) major business Participants: 51 representatives of EBA members companies, Customs Committee members Timing: Data collected in the 1 st half of 2011 and reflect situation in the 2 nd half of 2010 Survey Implementation: the Survey was conducted by EBA, analytical support provided by InMind research company

Customs Index with the support of the InMind research company 4 Key findings 1 st half of nd half of 2010 Average number of days spent for customs clearance of one shipment 2,42,0 Rate of goods physical inspections (%)55%52% Customs classification: rate of goods classification that was changed by customs (%) N/A6% Customs Value: Total number of rejections to apply 1st customs valuation method (%) 34%38% Average number of documents per one shipment 10,810,9

Customs Index with the support of the InMind research company 5 EBA Customs Index: Components

Customs Index with the support of the InMind research company 6 Average number of days spent for customs clearance of one shipment Service producers that import/export only has slightly higher average number of days spent for each customs clearance compared to companies that also have local production. Custom clearance on average takes longer for small/medium business (SMB). Mean level = 2,0 days Median = 1,5 days

Customs Index with the support of the InMind research company 7 Rate of goods physical inspections (%) Rate of goods physical inspection is slightly higher for importers/exporters that also have local production, however differences between enterprises of different sizes are insignificant. Mean level = 52,0% Median = 50,0%

Customs Index with the support of the InMind research company 8 Customs Classification: rate of goods classification that was changed by customs (%) Rate of goods classification that was changed by the customs is low and constitutes 6.2% on average with slightly higher rate (14.5%) for small and medium enterprises Mean level = 6,2% Median = 0,1%

Customs Index with the support of the InMind research company 9 Total number of rejections to apply 1st customs valuation method (share of total customs declarations number) % Up to 38% of customs declaration received rejection to apply the 1st customs valuation method. For small and medium business the total number of rejections reached 58%. Mean level = 37,6 % Median = 16,5 %

Customs Index with the support of the InMind research company 10 Average number of documents per one shipment Average number of documents to be submitted per one shipment remained unchanged: 11 documents. At the same time companies that also have local production on average are required to submit up to 13 documents. Mean level = 10,9 documents Median = 10,0 documents

Customs Index with the support of the InMind research company 11 Audits/inspections experienced during the period Importers/exporters that also have local production on average experienced audits twice more often. Among all survey participants every fifth (22%) has experienced 1 customs audit or inspection during the 2 nd half of 2010 with only one exception where a company had 4 audits during the correspondent period The duration of customs audits/inspections varied from 1 to 240 days whereas 2/3 or all audits took up to 2 weeks.

Customs Index with the support of the InMind research company 12 Corruption perception in the customs service The perception does not differ among companies of different sizes (SMB or Major business). Those who have experienced corruption in the customs noted that the bribes were mainly requested in a form of cash rather than products or equipment From the participants’ recent experience / view corruption in the customs service rather increased: 49% agree on that. Only every fifth assumes that it has decreased.

Customs Index with the support of the InMind research company