EBA Customs INDEX

Customs Index with the support of theInMind research company

EBA Customs INDEXBased on results of III/IV quarters of

2012Conducted by EBA

with support of

InMind research company

February 2013


2

Project DesignThe represented results of EBA Customs Index are based on data of expert survey conducted among EBA members.

It represents evaluation of 5 factors characterizing customs procedures, being undergone by companies while interacting with customs. Calculation of the customs index is based on weighted means of each factor.

In addition to expert evaluation of factors, survey includes measures of each factor indexes de-facto.

As additional information for customs procedures the survey also regarded:• Usage of electronic declaration practice• Evaluation of change in corruption level of customs authorities• Evaluation of usage practice of the new Customs Code

• Evaluation of procedures of customs clearance of one supply (25%) duration of customs clearance of one supply(12,5%) share of goods chosen for physical inspection (10%) share of goods, classification code of which has been changed by customs authorities (2,5%)

• Evaluation of customs value identification procedure (25%)• Amount of paperwork (25%)• Number (5%) and duration (5%) of inspections • Professional level of customs authorities (15%)

Factors and weight coefficients

EBA Customs Index

Additional information


3

The report is structured by information regarding each factor and contains the following data:

• Measures of central tendencies of expert evaluations of each factor (mean and median)

• Distribution of expert evaluations of each factor by 5-point scale

• Mean values of indexes characterizing each factor (in dynamics)

The results are also segmented by company size: small/medium and big business

Report CommentThe results are based on data of the 5th wave of expert survey regarding real experience of companies. The expert evaluations of factors characterizing customs procedures and calculation of the integral index are conducted for the first time.

Participants: 52 representatives of EBA companies-members and participants of the Customs Committee

Timeframes: data collected in February 2013 and reflect the situation of the 2nd half 2012

Conducted: The research is conducted by EBA, analytical support: InMind research company


4

Overall results: customs index1 – minimum/negative index value3 – average/neutral index value4 – maximum/positive index value

Scale from 1 to 5, where:

1st half 2012

2nd half 2012

CUSTOMS INDEX (integral index)

2,84 3,06

Customs clearance of one supply: 3,15 3,28- duration of customs clearance 3,16 3,02

- share of goods chosen for physical inspections 3,30 3,74

- share of goods, classification code of which was changed 2,50 2,74

Customs value 3,13 3,44

Amount of paperwork 2,11 2,27

Inspections 3,44 3,46- number of inspections 4,91 4,92

- duration of inspections 1,98 2,00

Professional level 2,63 3,12


5

1st half 2010

2nd half 2010

1st half 2011

2nd half 2011

1st half 2012

2nd half 2012

Average number of days spent on custom clearance procedures for one supply 2,4 2,0 2,5 2,8 2,5 2,7

Share of goods chosen for physical inspections (%) 55% 52% 26% 41% 22% 14%

Customs classification (%) N/A 6% 8% 9% 9% 8%

Customs value: overall number of customs authority refusals (%)

34% 38% 27% 33% 27% 24%

Average number of documents demanded for customs clearance of one supply

10,8 10,9 9,8 10,6 8,0 10,2

Average share of companies, which experienced inspections after customs clearance

N/A 22% 40% 23% 3% 4%

Overall results: experience of companies


6

EBA Customs INDEX:

Components


Duration of customs clearance of one supply

2.42.0

2.5 2.8 2.5 2.7Average number of days, spent on customs clearance of one supply: from the moment of the border control start to the moment of customs clearance finish in the destination customs

HALF OF THE YEAR

Average number of hours, spent on authorization of one customs declaration: from the moment of application of customs declaration to a customs authority to the moment of its authorization completed

3.16

3.02Average Index

of duration of customs clearance of one supply

Scale from 1 to 5, where:1 – minimum/negative index value3 – average/neutral index value5 – maximum/positive index value

I/2010 II/2010 I/2011 II/2011 I/2012 II/2012

6.58.7

15%

7%

42% 34

%

2%

Duration of customs clearance of one supply is NOT reasonable

and NOT acceptable for our company

Duration of customs clearance of one supply is completely reasonable and acceptable for our company

Negative value Positive value

Results by detailed scale of the index (from 1 to 5)


3.30

3.74

Share of goods chosen for physical inspections

I/2010 II/2010 I/2011 II/2011 I/2012 II/2012

55% 52%

26%41% 22%

14%

Average share of goods chosen for physical inspectionComparing to total number of supplies in %: number of physical inspections / total number of supplies* 100%

HALF OF THE YEAR

10%

15%

0%

39%

36%

The share of goods chosen for physical inspection is NOT

reasonable regarding the total number of supplies in our

company

The share of goods chosen for physical inspection is completely reasonable regarding the total number of supplies in our company

Average Index of reasonability of share of goodschosen for physical inspection





Share of goods, classification code of which has been changed

I/2010 II/2010 I/2011 II/2011 I/2012 II/2012

6% 8% 9% 9%8%

Average share of goods, classification code of which has been changed by customs authorities, comparing to the total number of goods (%): number of goods, classification code of which has been changed / total number of goods * 100

HALF OF THE YEAR

32% 21

%

9%

18%

20%

In majority of cases I DO NOT agree with the customs

classification conclusion

In majority of cases I agree with the customs classification conclusion

Average Index of customs classification conclusion



2.50

2.70



Customs value

I/2010 II/2010 I/2011 II/2011 I/2012 II/2012

34% 38%27% 33% 27%

24%

Average number of customs authority refusals to apply the first method for identification of the customs value (i.e. by agreed value, share of total number of custom declarations)

HALF OF THE YEAR

13%

20%

3%

38% 26

%

Occurrences of unreasonable refusals to acknowledge the

customs value are systematic (more than 4 times a month)

There are no occurrences of unreasonable refusals to acknowledge the customs value, or such occurrences are sporadic

Average Index ofreasonability of refusals to acknowledgethe customs value

Did you receive any written explanations of the reasons for refusal to apply the first method?

Yes, 27% Has it ever happened that custom authorities invoked using indicative prices without application of methods 2-5?

No, 65%



3.13

3.44



2.11

2.27Average Index of

paperwork onerousness for company business-processes

Amount of paperwork

I/2010 II/2010 I/2011 II/2011 I/2012 II/2012

10.8 10.9 9.8 10.68.0 10.2

Average number of documents, application of which to customs authority and other inspections was demanded for customs clearance of one supply:(sanitary, phytosanitary, epidemiological, etc.)

HALF OF THE YEAR

34%

34%

5%

24%

3%

The number of documents is large and oppressive for

business-processes

The number of documents is reasonable and NOT oppressive for business-processes





Checks

22%

40%23%

3% 4%

HALF OF THE YEAR

3.44

3.46Average Index of number and

duration of inspections


I/2010 II/2010 I/2011 II/2011 I/2012 II/2012

30 25

Average share of companies, which have experienced inspections after customs clearance is completed

Average duration of customs inspection: number of days


Professional level of customs authorities

6%

32%

15%

38%

9%

Professional level of customs authorities is mostly low

Customs authorities mainly own high level of professionalism

Average Index ofprofessional level of customs authorities


I/2010 II/2010 I/2011 II/2011 I/2012 II/2012

2.63

3.12



HALF OF THE YEAR


14

EBA Customs INDEX:

Additional results


Electronic declaration

Does your company use electronic customs declarations/electronic pre-alert declarations in its business activity?

Yes (+40%) No

88%

12%

Average share of pre-alert declarations, which are applied electronically

92% (+14%)

Average share of customs declarations, which are applied electronically

78% (+44%)

9%

21%

9%

29%

32%

Electronic declaring doesn’t lead to simplification and acceleration of the cargo customs clearance

process

Electronic declaring really simplifies and accelerates the cargo customs clearance process



Considerably decreased

Somewhat decreased

Remained the same

Somewhat increased

Considerably increased

4%

21%

59%

7%

9%

4%

23%

60%

9%

4%

II/2012I/2012

Corruption level

From your point of view, during the last 6 months, corruption in customs authorities:

Decreased – 27% (+2%)

Increased – 13% (-3%)


Yes, completely positive

Rather positive than negative

Equally positive and negative

Rather negative than positive

Absolutely negative

1%

59%

31%

7%

1%

18%

37%

37%

6%

2%

II/2012I/2012

The New Customs Code

Is adoption of new edition of the Customs Code a positive event for your company?


Changes of the Customs Code in use

Choosing Customs: Customs clearance of goods beyond the place of registration

In order of loss of usage frequency :

4 hours for customs clearance

Confirmation of customs value

Simplified electronic declaration


Changes of the new Customs Code which still remain inaccessible

AEO status

In order of loss of usage frequency:

4 hours spent for the customs clearance

Return of extra customs payments from the budget

Customs evaluation with the use of the 1st method, automatic evaluation

Impossibility to declare goods without them entering the customs territory of Ukraine

Declaration of goods with the use of a previous declaration

Clearance of a large nomenclature of goods by one code, temporary declaration

Customs clearance out of the accreditation place


+38 044 496 06 01

[email protected]

www.eba.com.ua

EBA Customs INDEX

Documents

Transcript of EBA Customs INDEX