TIRANA, Sept. 8 – The launch of a customs scanning service by a U.S.-Albanian concessionaire has caused concern among importers who say the extra costs will be reflected on consumer prices.
Under a revised deal with U.S.-based Rapiscan, starting September 2015, importers will have to pay a fee of euro 22 for declarations of more than 1,000 euros with customs authorities and euro 5 for declarations of less than 1,000 euros.
The new fees, although considerably lower than the initial deal, have caused concern especially for the garment and footwear industry, the country’s top exporting industry, which imports raw materials to process and re-export them.
The garment and footwear, locally known as the faà§on, has been struggling to keep positive growth rates in exports in the first seven months of this year due to higher taxes and electricity prices. Industry representatives say the new customs screening fees will make the industry which relies on low costs less competitive and attractive for new investors.
Fuel importers also warn retail prices will undergo a new hike because of the scanning concession.
At Euro 1.25/litre Albania already has one of Europe’s highest fuel prices, despite being one of the poorest countries in the continent.
Last June, the Albanian government withdrew from its decision to cancel a 15-year scanning concession in customs points reaching an out-of-court solution with U.S.-based Rapiscan Systems which was claiming $350 million in a Paris arbitration court over the unilateral cancellation of the concession.
Under the new deal, the fee for declarations of more than 1,000 euros with customs authorities has been reduced to 22 euros, down from an initial 39 euros while the charge for declarations of up to 1,000 euros will be at 5 euros.
The renegotiated deal has also revised downward Rapiscan expected income to a maximum of 210 million euros in its 15-year concession compared to 316 million euros under the previous deal.
In April 2013, U.S-based Rapiscan System was awarded a 15-year concession by the former Democratic Party-led government to provide turnkey cargo and vehicle security screening services at various sites throughout the country, but the contract was suspended after fierce opposition by the business community which claimed the high tariffs would increase costs and reduce their competitiveness.
Back in late 2014, Albania’s Competition Authority recommended that the Albanian government should review the concession as running counter to Albania’s EU’s commitments and violating tender procedures.
An Albanian company, ICMS, has bought 49 percent of shares of this concession for a symbolic value, raising concerns over the transparency of the deal.
