Kosovo companies concerned over screening fees

TIRANA, May 27 – After the Albanian business community, even the Kosovo Chamber of Commerce has strongly reacted against the expected screening concession which will charge Euro 39 for containers or vehicles with a weight of more than 1,000 kg or goods worth more than Euro 1,000, describing it as unaffordable and severely damaging trade exchanges between the two countries.
“Currently, there are two issues in trade relations with Albania for Kosovo companies; the phitosanitary certificates for Kosovo products and the biggest issue is the scanning of imports and exports as well as transit goods. These two issues are becoming a “death penalty” to trade exchanges between the two countries and the Euro 2 billion investment of the Highway of Nation linking Durres to Prishtina is made null,” says the Kosovo Chamber of Economy.
Appealing to the Albanian government for an immediate solution, the Chamber says the application of the Euro 39 fee for each customs screening, would cost Kosovo companies Euro 2 million a year, and make Albania unattractive.
Albanian and Kosovo senior government officials have recently pledged to remove all trade barriers between the two countries which have often led to disputes and even protests.
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.
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.
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.
Latest data published by the country’s Institute of Statistics, INSTAT, show Albanian exports to Kosovo in 2013, registered a slight decline affected by trade disputes over customs clearance tariffs and the ban of Albanian milk products in early 2013.
In 2013, Albanian exports to Kosovo dropped to 16.3 billion lek (Euro 114 million), down 6.2 percent compared to the same period last year. Meanwhile, Albania’s imports from Kosovo during 2013 rose by 17 percent to 6 billion lek (Euro 42 million).
Kosovo ranked the third most important destination of Albanian exports in 2013 after Italy and Spain, accounting for 7 percent of Albanian exports.