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Reference prices remain a concern for businesses

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10 years ago
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TIRANA, May 12 – The application of reference prices by Albanian customs authorities continues remaining an issue of concern for domestic and foreign companies operating in Albania.

The American Chamber of Commerce, representing the largest association of foreign businesses operating in the country, says its members often complain of the application of reference prices even in cases of original purchase paperwork for products coming from the U.S or Canada, although it has been agreed this issue will be given a solution.

“I would suggest that in case of bills issued by American companies, there should be no thinking that ‘there is something in here, there is need for intervention and reference prices should apply.’ It is lost time and an unfair punishment,” a businessman was quoted as saying by the AmCham magazine.

Business representatives say the customs duty should be calculated based on the transaction value, leaving no room for the application of reference prices.

“We have our imports from America calculated at reference prices at customs points even though our purchasing paperwork is original,” said Ylli Pulaj, a representative of the ABCom.

As a result of the application of reference prices, telecommunication companies say they pay in customs points not only VAT and the 10 percent tax, but this regime also causes an increase in costs ranging from 12 percent to 14 percent, which considerably reduces the competitiveness of companies in the telecommunication sector as compared to companied using the ADSL technology.

However, customs administration representatives are skeptical about a complete lift of reference prices. “If we lift the reference price regime all at once, then we will have problems with unverifiable bills from countries which don’t allow the exchange of information,” they say.

Former customs director Elisa Spiropali said “there are countries, for which our priority is to fully abandon the use of assessment methods or reference prices such as the U.S or the EU.”

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