TIRANA, May 22 – Reference prices, changes to the classification of goods, frequent physical inspections and inefficient communication are the key barriers importers and exporters in the country face with the country’s customs authorities, a report has unveiled.
A key concern for several years in a row, reference prices continue to top business concerns when it comes to relations with customs authorities, according to a report published by the Albania Investment Council, an advisory body serving as a linking bridge between the business community and the government set up in 2015 with support by London-based European Bank for Reconstruction and Development.
The concern comes as the application of reference prices on clearance of imported goods rose to 12 percent of declarations made with the authorities in 2016, up 1 percent compared to 2015 and in addition to China, also involved imports from the EU, the U.S. and Turkey.
Fearing fictitious invoices, customs authorities apply reference prices even when companies submit all price-related documentation including invoices, contracts and SWIFT payments, the study said.
“Reference prices create a deadlock in relations between businesses and customs and tax authorities. Revaluation based on reference prices directly affects the customs duties/VAT paid by importers and creates market competitiveness problems,” says the study.
Businesses claimed they are not provided arguments in writing for the use of reference prices, which also apply in case of costs incurred on the international transport of containerized goods.
The Investment Council suggests reference prices should serve only as a ‘price risk indicator’ leading to investigation into the case and not “a shortcut for the customs administration in determining the goods’ customs value and disciplining the internal market.”
Frequent physical inspections and the high costs businesses incur in this process due to having to unload and load the goods on their own is another key barrier for importing businesses.
The study shows businesses complain of numerous physical inspections even after the use of scanning, with some companies and certain products continuously selected as risky to undergo the red channel, even though having a good track record and importing the same items.
Businesses also complained about unreasonable time it takes to obtain various authorizations such as the case of VAT exemption in case of imports of machinery and equipment for investment, suggesting online filing of requests.
The study also unveiled cases of customs authorities unreasonably changing the tariff classification of goods without officially communicating the reasons. Limited working hours on making customs declarations, especially for exporters at the Tirana Customs Office, also remains a barrier for exporting companies whose main destination is Italy and use maritime transport to reach the neighboring country across the Adriatic.
Despite problems identified by companies, trading across borders is among the best Doing Business indicators in Albania, ranking the country 24th out 190 economies around the world.
Albania is a net importer, with exports covering only about 40 percent of imports.
