Screening concessionaire expected to increase costs

TIRANA, Feb. 19 – The entry into force of a screening concession in Albania’s customs points next April is expected to bring extra costs for importers and exporters which will be reflected on consumer prices. U.S-based Rapiscan Systems, which last year was awarded a 15-year concession turnkey cargo and vehicle security screening services at various sites throughout the country, will charge Euro 39 for each screening. The concession is estimated to bring Euro 12 million in annual revenues to the concessionaire considering that the Customs Administration reports some 300,000 declarations.
The new procedure, expected to enter into force from April 1, has been strongly opposed by the business community.
Nikolin Jaka, the head of the Tirana Chamber of Commerce says that a private company cannot carry out controls on private companies. “If the customs administration cannot afford the purchase of scanners, than a tariff should be placed on businesses and the system managed by state authorities,” Jaka told local media.
Meanwhile, the Association of Albanian exporters is concerned over lack of consultations with the business community and the high tariff imposed for the scanning of containers.
The Albanian government will get 2 percent of the income.
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 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.