EBA Customs INDEX

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

2. Projectmethodology (1) The presented results of the EBA Customs Index are based on the 4th 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. Projectmethodology (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 2nd half of 2011 and reflect situation in the 1st half of 2011 Survey Implementation: the Survey was conducted by EBA, analytical support provided by InMind research company

4. Key findings

5. EBA Customs Index: Components

6. Average number of days spent for customs clearance of one shipment Mean level = 2,8 days Median = 2,0 days 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).

7. Rate of goods physical inspections (%) Mean level = 40,9% Median = 30% 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 2nd 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)

8. Customs Classification: rate of goods classification that was changed by customs (%) Mean level = 9% Median = 1,5% 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)

9. Total number of rejections to apply 1st customs valuation method (share of total customs declarations number) % Mean level = 33,4 % Median = 10,0 % The total number of rejections to apply 1st customs valuation method has shown a trend to increase in the 2nd 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)

10. Average number of documents per one shipment Mean level = 10,6 documents Median = 10,0 documents 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

11. Audits/inspections experienced during the period Among all survey participants 23,4% has experienced customs audit or inspections during the 2ndhalf 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 (1st 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 2nd half of 2011

12. Corruption perception in the customs service 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 Only 12% of answered assumed the corruption has recently decreased, while every third company reported further worsening of the situation

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