1. © Copyright 2015 United Nations Economic Commission for Europe.. Regulatory and Procedural Barriers to Trade in the Republic of Albania: Needs Assessment Ms. Hana Daoudi, Economic Affairs Officer, Market Access

2. © Copyright 2015 United Nations Economic Commission for Europe.. Evaluation methodology 2 Desk study Previous studies Laws, policy documents and government decisions Development plans Face-to-face interviews: representatives of Government & trade support institutions Line Ministries and State agencies Logistics service providers, transport operators, trade and enterprise support associations Face-to-Face interviews: traders 78 traders from priority sectors Desk research and face-to-face interviews

3. © Copyright 2015 United Nations Economic Commission for Europe.. Scope Geographic coverageAlbanian enterprises by location (2014)

4. © Copyright 2015 United Nations Economic Commission for Europe.. Scope Sectors Strategic non-resource sectors. Listed using the Standard International Trade Classification (SITC) Revision 3 (top level), these include:  Food and live animals  Beverages  Animal and vegetable oils, fats  Chemicals and related products  Manufactured goods classified chiefly by material  Machinery and transport equipment  Miscellaneous manufactured articles Breakdown of surveyed enterprises by activity

5. © Copyright 2015 United Nations Economic Commission for Europe.. Scope Surveyed enterprises target marketsExports Reported country of destination Products Bosnia and HerzegovinaBanana China Chrome, lemon and tomatoes Cyprus Pallets EnglandBeer FranceThyme Germany Sage and beer Greece Beer, furniture, herbs, pallet and spices Hungary Watermelon Italy Pallet and beer KosovoElectrical equipment (alarm systems, sound systems, fire protection systems and switches, laptops, printers, servers), banana, dried fruit, herbs, honey, dairy products (fresh milk and cheese), fresh sausage, beer, raw materials for industrial butter, plastic water bottles, carton packaging and varnishes. Montenegro Banana and medicine Russian Federation Cucumber, peppers and tomatoes Serbia Banana FYRM Electric equipment (alarm systems, sound systems, switches, laptops, printers, servers), beer and spices United Arab EmiratesPallets USASage

6. © Copyright 2015 United Nations Economic Commission for Europe.. Highlights and priority needs Documentary requirements  Some documents are difficult to obtain Importers −EUR1 Movement Certificate (for importers) −Import permits (medicine) Exporters −Certificate of analysis −Phytosanitary certificate −Veterinary certificate  More needs be done to promote the use of electronic documents. Although importers and exporters are allowed to submit their declaration transactions online, the majority elect to use the services of customs brokers

7. © Copyright 2015 United Nations Economic Commission for Europe.. Highlights and priority needs Documentary requirements: Main recommendations  Address instances of repetitive submission of similar or identical information  Address the lack of clarity over documentary requirements  Establish a strategic framework for ensuring greater use of electronic documents  Create a proper system for regulating customs brokers  Improve the overall institutional set-up for regulating trade in pharmaceutical products

8. © Copyright 2015 United Nations Economic Commission for Europe.. Highlights and priority needs At the border control Overreliance on physical inspection Burdensome payment requirements Clearance is complicated by disagreements over customs valuation Main recommendations  Consolidate risk based control management systems and techniques  Improve inter/intra-agency coordination at the operational level  Reduce the financial burden of traders

9. © Copyright 2015 United Nations Economic Commission for Europe.. Highlights and priority needs Information 38 percent of the traders reported relying on international sources, particularly partner country chambers of commerce and international buyers/suppliers, to keep abreast of regulatory requirements. Main recommendations  Up-to-date information on trade-related rules and administrative procedures and their implication  Support services to enable the business community to fulfil EU regulatory requirements  Establish a trade training facility  Establish the National Trade Facilitation Council/Committee equipped with a permanent secretariat

10. © Copyright 2015 United Nations Economic Commission for Europe.. Highlights and priority needs Transport and logistical services  Improve facilities at BCPs and inland terminals The reconstruction or refurbishment of BCPs should feature special focus on basic infrastructure for clearing perishable goods, including (i) adequate facilities for physical inspection of cargo; and (ii) refrigeration points for perishable cargo; and (iii) quarantine facilities at or close to BCPs. In addition, proper office accommodation (rather than portacabins) should also be provided for NFA officials.  Improve the bargaining position of Albanian shippers Consider establishing a national shippers council to assume the function of negotiating favourable rates with international transport operators

11. © Copyright 2015 United Nations Economic Commission for Europe.. Business Process Analysis Focus: Fresh fruits and botanical/medicinal herbs Rational: Albania’s agricultural exports are dominated by fresh fruits and vegetables and botanical/medicinal herbs, leaves, flowers and roots with the latter constituting a major contributor to export earnings. 11 ProductShare in total exports TonsValue Fresh vegetables51%26.4% Fresh fruits37%18.7% Medicinal herbs11%43% Source: Albanian Institute of Statistics and Ministry of Agriculture, Rural Development and Water Resources

12. © Copyright 2015 United Nations Economic Commission for Europe.. Business Process Analysis Core business processes and stakeholders 12 Party Core business processes Exporters Bank Transport company CCI NFA Regional Office Customs brokers Customs Importers Foreign testing laboratories 1. Buy 1.1. Conclude commercial contract+ + 1.2 Obtain certificate of analysis (testing) + ++ 1.3. Prepare invoice+ + 2. Ship 2.1. Arrange transport+ + + 2.2. Load+ + 2.3. Obtain certificate of origin+ + + 2.4. Obtain phytosanitary certificate+ + 2.5. Register TAX ID Number+ ++ 2.6. Prepare and submit customs declaration + ++ 2.7. Park at the customs terminal+ ++ 2.8 Pass inspection+ ++ 2.9. Deliver goods+ + 3. Pay 3.1 Verification of the delivered goods+ + 3.2 Bank transfer + +

13. © Copyright 2015 United Nations Economic Commission for Europe.. Business Process Analysis Time-process chart

14. © Copyright 2015 United Nations Economic Commission for Europe.. Business Process Analysis Costs The selected companies reported that they provide informal payments to speed up the issuing of documentary requirements and customs clearance. The payments represent 30 to 40 percent of the formal payments The amount of informal payments is not significant compared those accrued by the traders due to the lack of testing laboratories. The scanning fees at the customs terminal (at the entry and exit points) inflate the transaction costs accrued by traders The parking fees were described by the two enterprises as high

15. © Copyright 2015 United Nations Economic Commission for Europe.. Business Process Analysis Costs