1. Customs Index with the support of the InMind research company EBA Customs INDEX Based on III/IV quarter 2011 Conducted by EBA with the support of InMind research company January 2012

2. 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 4 th 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.

3. 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: 94 representatives of EBA members companies, Customs Committee members Timing: Data collected in the 2 nd half of 2011 and reflect situation in the 1 st half of 2011 Survey Implementation: the Survey was conducted by EBA, analytical support provided by InMind research company

4. Customs Index with the support of the InMind research company 4 Key findings 1 st half of 2010 2 nd half of 2010 1 st half of 2011 2 nd half of 2011 Average number of days spent on customs clearance of one shipment 2,42,02,52,8 Rate of shipments selected for physical inspection (%) 55%52%26%41% Customs Classification: Percentage of cargo tariffs change by customs authorities (%) N/A6%8%9% Customs Value: Percentage of rejections to apply 1st customs valuation - transaction method (%) 34%38%27%33% Average number of documents required per one shipment 10,810,99,810,6

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

6. Customs Index with the support of the InMind research company 6 Average number of days spent for customs clearance of one shipment Average number of days spent for customs clearance constitutes 2.8 days, which do not vary among companies of different size. There are some differences among importers /exporters (2,4 days) and companies with local production (3,3 vs. previous 2,6 days ). Compared to the previous wave the average number of days practically has not changes (2,8. versus 2.5 days). Mean level = 2,8 days Median = 2,0 days

7. Customs Index with the support of the InMind research company 7 Rate of goods physical inspections (%) Rate of goods physical inspection has significantly increased compared to the 1st half of 2011 for all types of companies. While respondents have declared 26% of goods underwent physical inspection in last wave the average number of inspections in 2 nd half of 2011 has raised up to 50%. Moreover this rate is higher for importers/exporters and small/medium companies (last wave demonstrated converse differences among companies of different size) Mean level = 40,9% Median = 30%

8. Customs Index with the support of the InMind research company 8 Customs Classification: rate of goods classification that was changed by customs (%) An insignificant trend to increase rate of goods classification that was changed by the customs was noted by respondents (from 8% to 9%). Proportion among importers/exporters and companies that have local production remained the same compared with last wave results. For small/medium business customs classification rate has become higher (9,9% vs.6,6% at last wave) Mean level = 9% Median = 1,5%

9. 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) % The total number of rejections to apply 1 st customs valuation method has shown a trend to increase in the 2 nd half of 2011 (33,4% vs.27,2% in previous wave). Proportion between companies of different size has been changed to converse compared to previous wave. The most significant change has been demonstrated by small/medium companies (37,7% vs.23,1% in previous wave) Mean level = 33,4 % Median = 10,0 %

10. 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 has not suffered significant changes compared to previous wave results (10,6 vs. 9,8 documents). The median statistic (10 documents) remained unchanged indicating no changes by this indicator. Insignificant growth of average number of documents has noted by segments: import/export companies and small/medium companies Mean level = 10,6 documents Median = 10,0 documents

11. Customs Index with the support of the InMind research company 11 Audits/inspections experienced during the period Among all survey participants 23,4% has experienced customs audit or inspections during the 2 nd half of 2011 (vs.40% on previous wave). While more than half of the companies out of this number reported only 1 inspections, the rest underwent between 2 and 5 inspections repeating at whole a trend of previous period (1 st half of 2011) in audits and inspections The duration of customs audits/inspections varied from 1 to 90 days whereas majority took up to 5 days and 5 inspections took 30 and over days. The duration of customs audits/inspections has shown insignificant rise while share of those who has experienced customs audit or inspections has decreased during the 2 nd half of 2011

12. Customs Index with the support of the InMind research company 12 Corruption perception in the customs service Only 12% of answered assumed the corruption has recently decreased, while every third company reported further worsening of the situation 54% of answered has considered corruption in the customs service as remained the same compared with the previous 6 months. Corruption perception in the customs service remained at whole the same showing some worsening compared to previous 6 month period and rising compared to similar period of 2010

13. Customs Index with the support of the InMind research company +38 044 496 06 01 office@eba.com.ua www.eba.com.ua