2. CONTRIBUTION OF CUSTOMS FOR ENHANCED TRAFFIC OF GOODS TROUGH NATIONAL BORDER CROSSINGS Vanco Kargov Director General Customs Administration of the Republic of Macedonia Ohrid, Republic of Macedonia, May 22 nd, 2009

3. STRATEGIC OBJECTIVES The priorities of the Customs Administration are divided into five strategic objectives: legal framework – harmonization with the European legislation and WCO standards efficient revenue collection and implementation of trade policy measures protection of the citizens and fight against organised crime effective application of IC Technologies modernisation of the Customs Service and enhancement of the cooperation

4. SUMMARY Legal framework – harmonisation with the European legislation and WCO standards Institutional capacity Trade and transport facilitation Transparency

5. STANDARD Framework of standards to secure and facilitate global trade of the World Customs Organization Objectives and Principles: –Establish standards that provide supply chain security and facilitation –Promote certainty and predictability –Customs cooperation –Strengthen Customs/business cooperation –Promote seamless movement of goods

6. STANDARD Framework of standards to secure and facilitate global trade of the World Customs Organization Core elements: –Advanced electronic cargo information –Consistent risk-menagement approach –Inspection of high-risk cargo using non-intrusive detection equipment –Enhanced trade facilitation for legitimate trade –Authorized economic operator (AEO) concept

7. LEGISLATIVE ALIGNMENT Customs Code amended Legal framework for the Authorised Economic Operator concept introduced Regulation on the Implementation of the Customs Code Amended (OG 42, March 2009) Authorised economic operator concept introduced WCO International Convention on the simplification and harmonization of customs procedures – Revised Kyoto Convention, ratified in December 2008

8. LEGISLATIVE ALIGNMENT Reduction and elimination of administrative taxes and fees: Processing Customs declarations fee – abolished Customs escort fees – abolished Vehicle weighting fee – abolished Public Customs owned Terminal fee significantly reduced

9. LEGISLATIVE ALIGNMENT TRANSIT Improve efficiency and effectiveness of the transit procedures Legislation (amendments to the Customs Code and Implementing regulation) drafted Identified other legal acts that need to be changed EU experts under IPA 2007 will assist in further harmonization of transit regulation and border procedures

10. INTRODUCTION OF NEW ICT SYSTEMS New National Customs Declaration Processing System compatible for connectivity with the EU systems is under implementation Agreement signed with IT@MAC Consortium (January 2009) Software under preparation Introduction of paperless environment Improved efficiency and effectiveness of transit and other customs procedures

11. INTRODUCTION OF NEW ICT SYSTEMS Benefits to Economic Operators: –Improve quality of service –Quicker discharge of electronic messages –Lower expenses to prepare paper documents –Customs can take decision on prior to arrival of the shipment

12. ICT INSTITUTIONAL CAPACITY Electronic Single Window for import, export and transit licensing and tariff quota - EXIM introduced and operational, new features are considered Data exchange software with neighboring countries tested

13. Electronic Single Window for import, export and transit licensing and tariff quota - EXIM Services Provided Single frame for all required information for obtaining import, export or transit of 66 licenses Submission of requests and tracking the current status of licences from their own premises Equal legal validity of electronic and paper application Issuance of electronic licenses and monitoring their use Free of charge Services available 24 hours/ 7 days a week Saving time and costs for businesses as a result of electronic submission of applications

14. Electronic Single Window for import, export and transit licensing and tariff quota - EXIM Users: Government agencies Exporters Importers Carriers Brokers Freight Forwarders

15. ICT INSTITUTIONAL CAPACITY Electronic Single Window for import, export and transit licensing and tariff quota - EXIM introduced and operational

16. INSTITUTIONAL CAPACITY 4 Mobile X-Ray Scanners for inspection of large vehicles and containers operational - non-intrusive inspection

17. INSTITUTIONAL CAPACITY Radiation detection devices introduced to eliminate the harmful consequences - non-intrusive inspection

18. INSTITUTIONAL CAPACITY Customs is responsible for management, administration and maintenance of premises at the road Border Crossings by taking over: 50.000м² land and premises 204 employees Equipment Terminal fees significantly reduced

19. INSTITUTIONAL CAPACITY Centralized Video Surveillance System introduced 240 fixed and mobile cameras installed at all border and inland Customs Offices, controlled and monitored by the Coordination and Communication Department

20. INSTITUTIONAL CAPACITY Automatic Number Plate Recognition System Introduced Modern security customs seals procured

21. TRADE AND TRANSPORT FACILITATION The fees for using the services provided by the Customs IT System abolished Promotion of facility given by Simplified Customs procedures The criteria for reduction of the guarantee securing possible customs debt adapted to the conditions of the Macedonian economy 24 hour clearance at the Border Crossings which have suitable infrastructure enabled: –No need of a transit declaration, therefore no expenses for it; –No double payment of administrative taxes; –No need of double stay at terminals, therefore no expenses for terminal services, –Increased capacity for business cycle planning

22. TRADE AND TRANSPORT FACILITATION Second Phase of Regulatory Guillotine The second phase started at the beginning of 2009, in general refers to: –additional facilitation of import, export and transit by providing continuous presence of the relevant inspection services at all Border Crossing points, –administrative capacity building, –reduction of the amount of documentation, –reduction of fees, –elimination of the unnecessary procedures, –electronic connection with the other competent agencies, –adequate legislation amendments, and –other measures enabling easier movement and clearance of goods

23. TRADE AND TRANSPORT FACILITATION ADVISORY BODY FOR CUSTOMS COOPERATION FORMED Members: Economic Chamber of Macedonia, Chambers of Commerce of Macedonia, Economic Chamber for North-West Macedonia, MAKAMTRANS - Association of Independent Transporters’ Syndicates, Association of Macedonian Enterprises for Road International Transport “Makedonija Soobrakaj” (A.M.E.R.I.T) and Macedonian International Freight Forwarding and Logistics Operators Association (MIFA) AIM to promote the partnership between the Customs Administration and the business community, and ensure high level of security and facilitation of international trade Standard established by the Convention on Simplification and Harmonization of the Customs Procedures (Reviewed Kyoto Convention).

24. TRADE AND TRANSPORT FACILITATION Communication between the Customs Administration and the business community Bilateral and multilateral level meetings with over 300 economic operators, associations and unions have been held in several Macedonian cities: –Customs Administration presented the ongoing and future activities related to facilitation of import in and export –Business community presented the issues regarding customs formalities and gave suggestions for resolving, i.e. overcoming these problems

25. TRADE AND TRANSPORT FACILITATION

26. TRANSPARENCY Information to trade available at Customs Administration’s website www.customs.gov.mk 2009 Customs Clearance Guide available free of charge on the internet website OBJECTIVE other participants in the international trade. to facilitate the customs procedures for the officials Includes: MFN duty rates, the Guide incorporates the preferential rates, in accordance with the Free Trade Agreements are incorporated, VAT, excise and the proscribed non-tariff measures

27. TRANSPARENCY MONTHLY NEWSLETTER “CUSTOMS” available free of charge Contains: novelties in the customs operations and information and data of interest for the wider trade and business community. PURPOSE: –to enhance the efficiency and transparency of the Customs work, and –to inform the business community on the ongoing and planned activities in the area of customs operations

28. CONTRIBUTION OF CUSTOMS FOR ENHANCED TRAFFIC OF GOODS TROUGH NATIONAL BORDER CROSSINGS Vanco Kargov Director General Customs Administration of the Republic of Macedonia Ohrid, Republic of Macedonia, May 22 nd, 2009