Armenia: Integrated Border and Corridor Management Tbilisi May, 2004
Competitiveness Conformity Connectivity for better Market Access
TEU from The logistical cost of moving onerail, via Poti. N. Europe to Yerevan, by road or (2002 prices)* Transportation Roads Railway Cost ($ USD) 2770 1590 Non official 23 -24 9 Payments (%) Time (Hours) 545 661 *Halcrow Report, WB, 2002, Trade and Transport Facilitation in the South Caucasus ** Source of data: State Department of Statistics of RA Performance Indicators • • • Improvements in Armenia's balance of trade: import over export was 2. 9 in 2002 and 1. 8 in 2003**. 5. 5 % growth in the level of foreign investment in Armenia in 2003 against 2002. 9. 3% increase in the level of FDI in 2003 against 2002 9. 1 % growth of customs collections in budget revenue in 2003 against 2002. Decrease in Customs staff turnover and increase in competence of Customs officials. 40 % salary increase for Customs staff in 2003 against 2002.
A Customs Consul and a WG for unification and simplification of customs procedures have been established among CIS countries Establishment of Consultative Committee at the State Customs. PROCEDURES Consolidated payment documents used at the customs points into a single form Red/Amber/Green system is applied while customs control Escort (02 Service) Facilitation WB and Lincy Fund support construction of roads, railways, tunnels, bridges, depots , rolling stock, etc. The customs station at Megri and Bagratashen are well equiped and connected (Bagratashen) to 3/19/2018 interregional network Introduction of Customs ASYCUDA++ automated system Existence of training programs forwarders and brokers and software monitoring training needs of Customs Staff Introduction of Governmental Decree N-1779 on November 21, 2003 on documentation required for customs import and export control. Establishment of specialized Customs antismuggling department Publication of the Customs Code and a guidebook for business community ACHIEVMENTS Establishment of Arm. Pro Committee as a mechanism for facilitation of dialogue between public & private bodies involved in trade & transport ACHIEVMENTS Improvement of licensing procedures for customs brokers Armenia has MFN status under the PCA with EU FTA with almost all CIS countries, membership in the International Convention on Harmonization of the Frontier Control of Goods (Geneva 1982) ACHIEVMENTS INSTITUTIONS LEGAL Introduction of revised Customs Code (2001) and Customs Service Law (2002) Establishment of import audit department at the State Customs INFRASTRUCTURE Supply of Optical Cable to Railways for communication and signaling systems. The Zvartnots Airport and Cargo Terminal are modern points of entry and exit for CSC 5
3/19/2018 Work Underway: Armenia is introducing the concept of integrated border and corridor management by: ØConsidering “Measures on procedures harmonization at the border crossing points” elaborated within the TRACECA initiative ØMobilizing efforts aimed at joining to the list of international conventions on Trade and Transport ØConsidering the possibility of using an advance declaration system allowing pre-clearance of goods ØEstablishing landline or satellite connections between customs points, between customs points and customs houses and between customs houses ØDeveloping software that allows the automation of current manual procedures, automate current manually completed documents ØEstablishing database to monitor frequency of exemptions used by natural persons 6
Bottlenecks Weak enforcement of dispute resolution between Customs and traders Weak execution of Laws /WTO rules in places Weak enforcement against smuggling Customs procedures are not Administrative Corraption Institutional Instability in State Customs up to 2001 Problems with Declarations frequently completed by Customs officials Customs clearance time is excessive Poor quality of phisical infrastructure, especially international connection via Georgia Inadequate computerization and lack of X-ray equipment 3/19/2018 Limited use of selectivity: 50% of all consignments are passing red channel Lack of licensed customs brokers to execute a preliminary declartion Customs points are not eligible to perform customs clearance Warehouses are poorly equipped Local laboratory testing insufficient, lack of tools to perform professional searches Conflict of interests in licensing of customs brokers BOTTLENECKS harmonized BOTTLENECKS No agreements are currently in place for mutual recognition of a neighboring country documents Application of «Check list» instead of invoice while customs valuation Poor condition of of the Zvartonts Airport runway Power supply shortage hampers the ability to track transit traffic, limits the operating hours 7 OTTLENECKS INSTITUTIONS LEGAL PROCEDURES RASTRUCTURE
ØThe Customs Code has been published and a guidebook is available for the business community ØBrochure on resolution of customs claims is published and is available for business community ØMethodology on how to conduct customs audit is shaped and will be published soon. Ø Public-private dialogue is being facilitated through: www. ttfsc. org website-to be a single information window ØInteragency website with information database is in place (www. customs. am) Exchange of Information: ØIntroducing of ASYCUDA (v. 1. 1. 6 f) version ØEstablishing of database to monitor frequency of exemptions used by natural persons in Bagratashen customs Enhancement of data point exchange across borders, SC states, ØEstablishing landline or customs and other satellite connections concerned agencies between customs points, customs points and parties involved in between foreign trade and customs houses and between customs houses Ø Developing software that allows the automation of current manual procedures, automate current manually completed doc.
Customs and Transport Capacity Building: Key Elements for Inter-Agency Cooperation to Assistance TIONAL iagnostic INTERNA mic D stoms D cu Econo ULES AN s, modernize TRADE R ENTS try Studie nd Coun ation a ing AGREEM administr is of Exist nalys ustoms A o n f C Trade implicatio stacles for WTO Ob Code tion WB promo USAID COOPERATION UN ECE CUSTOM Trade and Transport PROCED Transport URES and Trade Facilitatio Developm n ent TRANS ARMPRO Harmoniz of C DOCUME PORT Chamber ation of NTATION &I of RA border pr Road Tra ocedures, nsp UNCTAD Forwarde ort Unions, transit str rs ategy IRU, FIAT Associations, TRACEC A, AIRCA A , AAFF 3/19/2018 9
Steps To Be Done Together: Further steps in the implementation of the concept for integrated border and corridor management: v Active cooperation to avoid a duplication of efforts among agencies v Creation of a Single Window for both document processing and payment for all border agencies using a common payment center v Establishment of teams of selected representatives involved in the processing of vehicles and consignments to simplify procedures, facilitate trade and transport, increase revenue collection v Active cooperation with Iran and Georgia to improve transit of trade through these two countries, to and from Armenia We will be judged on the difference we can make together !
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