“We will negotiate and see what solution of interest we can reach which in no case will be to the detriment of importing and exporting companies,” Prime Minister Rama has assured.
TIRANA, April 23 – Hailing the new measures introduced in the support package, garment and footwear producers reiterated their concern over what they call unaffordable tariffs expected to be applied under a screening concession.
U.S-based Rapiscan Systems, which last year was awarded a 15-year concession on cargo and vehicle security screening services at various sites throughout the country, will charge Euro 39 for each screening while the Albanian government will get 2 percent of the income.
Gjergj Gjika, the head of the National Chamber of Garment and Footwear Producers, warned of escalating protests and even the blockage of ports if government does not cancel or review the concession.
“This is a tax which is applied in no European country. We are determined to follow all democratic steps to cancel this tax which is a burden to Albanian industrialists and are ready to even stage protests,” warned Gjika.
Reacting to the producers’ concern, Prime Minister Rama assured the business community government will review the concession which he described as running contrary to the country’s interest by increasing costs for both importers and exporters.
“We will negotiate and see what solution of interest we can reach which in no case will be to the detriment of importing and exporting companies,” assured Rama.
Alarmed over the high screening tariffs expected to be applied by a private concessionaire in Albania’s customs points, the business community has called on government to review the deal with U.S-based Rapiscan Systems, which last year was awarded a 15-year concession on cargo and vehicle security screening services.
Luan Bregasi, the head of the Business Albania Association had earlier warned the Socialist Party should keep its electoral promise of cancelling monopoly concession contracts.
The garment and footwear sector which this year is also facing an extra 5 percent increase in corporate income tax, says the screening concession will be devastating for the industry which is one of the biggest private sector employers.
“All our enterprises face the risk of closing down and this means closing down businesses which employ around 100, 000 people. With such a concession deal nobody would be interested in investing in Albania,” said Donika Mici, a representative of the garment and footwear sector.
While the concession contract was due to have entered into force on April 1, 2014, local media report government has temporarily suspended the concession and is negotiating over tariffs with the concessionaire.
Experts remain skeptical over the results of the negotiations as the contract has already been signed and any unilateral cancellation would have severe financial consequences to the Albanian government.
The contract is expected to cost Albanian business community an estimated Euro 20 million annually, a cost which will also be reflected on consumer prices due to the huge dependency on imports.
Containers or vehicles with a weight of up to 1,000 kg or goods worth up to Euro 1,000 will be excluded from the Euro 39 tariff. The former government said the contracting of a concessionaire was a necessity considering that the customs administration lacks both qualified staff to carry out the scanning and necessary financial resources to maintain the equipment.
Under the program, Rapiscan Systems intends to provide a comprehensive X-ray screening program, which will incorporate technology, staffing, systems integration, and maintenance support at sites throughout Albania. These operational capabilities are intended to enhance the Albanian government’s capability to interdict contraband and undeclared materials. The company currently anticipates that total gross revenues may range from $150 million to $250 million over the term of the agreement.
