THE CUSTOMS FULLY CONTRIBUTED THIS YEAR’S BUDGET REVENUES TO THE BUDGET, YET IT ITSELF REQUIRES THE WHOLE ANNUAL BUDGET

Irakli Tsinamzgvrishvili

Georgian customs as well as other systems and structures undergo reconstruction process. Smuggling and unregistered goods have nearly destroyed the country’s market.

Perhaps, the government expressed its good will in subjecting customs structures to the reforms. Presently, a strategic plan of customs reforms has been developed and its directions have been determined. Foreign aid plays a great role in the practical implementation of reforms. Main donors of the customs are “Border Protection and Legal Strengthening Programme” financed by the US as well as the Euro Commission project – “Implementation of Customs Procedures and Study of Georgian Customs Service”. This project is being implemented now. The European project is estimated by experts positively, though much work is still to be performed”.
Here is an interview with David Tarkhan-Mouravi, chairman of the Customs Department:
– Mr. David, reform in the customs system consists of several principal directions. One of them is a structural reform.
– Structural reform implies conferring status of special service to customs bodies. Therefore, it is necessary to form relevant structures and hire qualified staff. With this purpose, qualification exams should be organised. Law enforcement function will return to the customs administration consequent upon the implemented work.
– No matter how qualified customs officials might be, it will be difficult for them to fulfil their functions conscien tiously and honestly given the existing low wages.
– If customs does not receive 15% of mobilised amounts, it will not be able to perform its functions efficiently, especially in the conditions of increase of forecasted budget revenues indicator. We expect great aid from the European Customs and Euro Commission for the organisation of qualification exams and implementation of structural reforms. We should mention that the Customs Department works hard in the direction of training customs officials with the purpose of forming Customs Academy.
– From functional point of view, the customs administration should be organised appropriately. What are the problems?
– There are, of course, plenty of problems: veterinary and other controlling bodies should be withdrawn from the Customs Control Zone. Interference of other bodies in the customs breach sphere should be prevented. For customs purposes, it is necessary to increase competence of customs bodies in controlling taxation sphere of the country. A long-term period should be set for imported goods with a view of further control of customs clearance. According to the amendments in the Customs law, customs bodies were given the right of checking goods in the taxation area of the country. Technological schemes of customs control were developed for different depature points.
– What measures should be taken to improve system administration of the customs?
– Nowadays, oil products are the most problematic ones as far as derivation of tax control revenues is concerned. Therefore, it is necessary to control petrol stations and to develop amendments, which will lead to non-profitability of falsification business. Practice of commodity realisation time-study and control purchases should be introduced. Customs bodies should perform currency control. Special, seasonal and anti-dumping tax mechanisms should be developed with the purpose of timely and effective reaction to economic processes.
– Mr. David, you spoke about legal aspects. What do they comprise?
– Adoption of new Customs Code. Its project has already been developed within the frames of the European Customs programme. It is noteworthy that the Code agrees with the requirements of the European legislature and Kyoto Convention.
– That is accession to the Convention.
– Proceeding from the above-mentioned, recommendations about the expediency of internal procedure of accession to the Convention have already been submitted to the Finance Ministry.
– Apart from the improvement of legal aspects, the problem is also illegal turnover of excise goods and improvement of commodity registration.
– We think it advisable to share the experience of some countries (Russia, Greece, Germany, Austria) in import, production and realisation of the goods (oil products, tobacco) through tender.
– Mr. David, as far as we know, the reform also covers technological aspects implying introduction of electronic passports and customs seals, creation of electronic copies of commodity documentation on the basis of it, formation of single customs and tax database.
– In 1996 the project of Asycuda computer system has been initiated under the aegis of the UN and in 1988 it was introduced only in the Tbilisi Customs. The US helped us develop Asycuda project that consisted of two stages. The I stage was completed ? there is fibre connection with Poti, Kutaisi, Tbilisi Lilo office, airport, Rustavi and Tsiteli Khidi. The main server of Asycuda programme has moved to the Central Office. We contributed to the printing of documents in Georgian language via the Asycuda programme. After the II stage satellite antenna connection enables normal work of Asycuda programme.
During the reconstruction process of the customs system, it was planned to equip customs dispatch points with modern services and utilities and to introduce scales system. Incidentally, there are no means for the quality control of products, cigarettes and other goods.