Lithuanian Customs Tax Accounting and Control Information System MAKIS

1. Lithuanian CustomsTax Accounting and Control Information System MAKIS

2. Facts about Lithuanian Customs • Lithuanian customs was established in 1918; • After Lithuanian gained the independence Lithuanian customs was re-established in 1990; • Lithuanian Customs is responsible for the collection of European Communities’ Traditional Own Resources (customs duty part) since the 1st May 2004 (which is a part of Customs revenue); • Lithuanian Customs administered 11 per cent of the total State Budget revenue in 2007.

3. The functions of the Lithuanian Customs • To administer import and export duties and other import and export taxes administered by the Customs authorities; • To ensure the implementation of Customs legislation by means of the arrangements for supervision by the Customs authorities; • To control the application of the Common Customs Tariff, duties and other taxes administered by the Customs authorities and their privileges, import, export and transit prohibitions and restrictions set by Customs legislation; • To prevent and investigate the violations of Customs legislation; • To handle goods` import and export statistics as well as statistics of trade with other EU Member States.

4. MAKIS: the important part of EU compatible integrated Customs information system Risk Management Intelligence System Interfaces with AFIS/CIS CCN/CSI Integrated Tariff Management System (LITAR, EBTI, SMS, ISPP, etc.) PHARE Integrated data and voice communication network ASYCUDA system Transit control system NCTS Reference information Management System Tax Accounting and Control Information System MAKIS Automated Office Information System . Other systems (Intrastat, Data Warehouse, etc.) Building blocks NCTS Other System Management PHARE PHARE PHARE Storage PHARE Enterprise IT architecture System Infrastructure Services

5. MAKIS: Benefits to theState • MAKISimplements eGovernment and eCustoms principles, including government-to-business and government-to-citizen concept realisation; • MAKISenablesrealisationof International Accounting Standards for Public Sector; • MAKIS allows the Republic of Lithuania to fully comply with EU legislation in customs tax management and accounting; • MAKISenables full control, operational management and reliable forecastingof state budget revenue; • MAKIS electronic documents managementmechanisms allows elimination of paper documents and use of electronic signatures in Customs’ daily work.

6. MAKIS: Benefits for Lithuanian Customs • MAKIS enables new,fully reliable, tax control levels and increases the prestige of Lithuania Customs; • Implementation of TACIS helped decrease the cost of tax administration by 30%; • Business processes in tax accounting and administration are automated using automated Workflow mechanisms; • MAKIS allows full control and audit of actions of customs officers in the system; • Validation and business rules mechanisms prevent users from unauthorised or erroneous actions in the system; • Equal and transparent business conditions for all Customs customers in terms of automated control of tax payment.

7. Integrated and Automated Processes MAKIS: Benefits for Business • Single centralised taxpayer ID allows to control tax balance in real-time irrespective of tax type and customs procedure location; • Taxpayers are informed about their tax balance by MAKIS automatic electronic messages, including monthly financial balances; • Automated integration with bank information systems allows taxpayers to pay customs taxes online in less than 10 minutes. Cash operations are not necessary (but possible) MAKIS

8. MAKIS: Benefits for Business • Real-time taxpayer balance control allows business entities to pay taxes on time and save money by control of customs guarantee limits; • Taxpayers are enabled to make payments for all types of customs declarations through a single operation and MAKIS automatically discharges outstanding debts; • Real time data exchange with internal and external information systems allows business entities to spend significantly less time on customs procedures.

9. MAKIS: Technology and Innovation MAKIS: Technology and Innovation • MAKIS is based on mySAP Business Suite platform; • MAKIS Contractor together with Lithuanian Customs specialists • modified over 1100 standard SAP program objects, • modified 2400 standard SAP functions and transactions • created 340 new SAP program packages • to implement Lithuania Customs business, legal and technology requirements.

10. MAKIS: Technology and Innovation The MAKIS Contractor was the first to use the advanced and innovative Business Rules methodology in Lithuania to enable easy modification of the information system to meet the demands of the constantly changing Customs business environment.

11. MAKIS Awards 2004, EU Directorate-General for Budget. “The Republic of Lithuania has fulfilled its obligations regarding Traditional Own Resources monitoring<…>authorised representatives confirmed Traditional Own Resources systems and procedures fully comply with requirements of Community regulations”. 2007, National Audit Office of Lithuania. “National Audit Office of Lithuania evaluated how the Lithuanian Customs administers the customs duty and other taxes which make up about 11 per cent of the total State Budget revenue <...> auditors stated that it (MAKIS) is reliable. Since Customs started applying a centralised accrual tax accounting system, they received a more comprehensive and operational information. The auditors recommended further development of the tax accounting system.” 2007, InfoBalt Association.Awarded “The best ICT Product for Information Society”.

12. Thank You!Questions rymantas.budgenas@cust.lt v.karpovicius@erp.eu