Perspectives

from CEFTA
Umut Ergezer
Technical Advisor
SEETO WORKSHOP
Addressing Transport Barriers on
Border Crossings in the Western
Balkans
Podgorica, 27-28 March 2012
 Contents

• Background (4 slides)
• Main Features of CEFTA Trade (7 slides)
• Multilateral Framework for the Elimination of Non-Tariff Barriers (24
slides)
• Other CEFTA Tools Related to Non-Tariff Barriers (5 slides)
• CEFTA Trade Portal
• CEFTA Market Access Barriers Database
• CEFTA Priorities and Planned Activities on Customs (9 slides)
• Ministerial Conclusions of 2011
• Multiannual Work Programme
• CEFTA Chair in Office Priorities
• CEFTA Subcommittee on Customs and Rules of Origin
• Prospects for the future (5 slides)

CEFTA SECRETARIAT
BACKGROUND

CEFTA SECRETARIAT
 Modern Regional Free Trade Agreement ...

• … harmonising trade rules across the region and incorporating modern

trade related provisions;
• implying also … the Parties “aim … to accede to the EU and that CEFTA is
a proven route to accession … (Preamble) … because intra-regional
free trade is part of pre-accession process to EU (SAAs).

The modernised CEFTA is the first internationally binding Treaty signed by

the SEE countries themselves; successful implementation is vital both
economically and politically.

CEFTA SECRETARIAT
 Built on ....
EU
Chapter V
Operating Rules
Competition Rules

CEFTA
Chapter I, II, II, IV
Liberalisation of Trade in Goods

WTO
Chapter VI
New Trade Issues: Services, Investment, Government
Procurement, Intellectual Property

CEFTA SECRETARIAT
 Implemented through a well developed
structure ...
Joint Committee

Secretariat

Subcommittee on Working Group

Subcommittee on Subcommittee on on Trade in
Agriculture and
Customs and RO NTBs and TBT Services
SPS

Working Group
on TBT

CEFTA SECRETARIAT
 The period 2009 – 2011 was marked by ...

• Very active Chairs in Office and good coordination among the Article 44
Contact Points and with the Secretariat resulting in:
• Meeting all deadlines and commitments from the Agreement
• Achieving positive results in all key areas of the Agreement
(liberalisation of trade, diagonal cumulation, elimination of NTBs,
competition, opening of public procurement markets, increasing
transparency etc.)
• Decision making backed up by high quality analysis and
recommendations of renowned international organisations e.g. OECD
and World Bank
• Introducing of timely annual and multi-annual programming at all levels
• Expanding the implementation structure (two new working groups)
• Increasing visibility by introduction of new promotional/transparency
tools i.e. the CEFTA Week and the CEFTA Trade Portal

CEFTA SECRETARIAT
MAIN FEATURES OF CEFTA TRADE

CEFTA SECRETARIAT
 Recovery after fall in 2009

Evolution of Exports (2006=100)

160
150
140
130
120
110
100
90
2006 2007 2008 2009 2010

CEFTA 2006 Parties EU27 World

Source: OECD
CEFTA SECRETARIAT
Intra-CEFTA exports account for about 30% of
total CEFTA exports.

Intra-CEFTA and CEFTA-EU exports

35
Billions USD

30
25
20
15
10 32.2%
30.7% 31.7% 29.2%
5 28.3%
0
2006 2007 2008 2009 2010

Intra-CEFTA Exports CEFTA Exports to the EU

Source: OECD
CEFTA SECRETARIAT
 The share of agricultural exports is around 45%
and around 20% for non-agricultural exports.
Intra-CEFTA Share in Total Exports (%)
50

45

40

35

30

25

20

15

10

-
2009 2010 20113Q

Total Agri Non-Agri Average

Source: CEFTA Parties

CEFTA SECRETARIAT
 Dependence on Intra-CEFTA trade is especially
high for agricultural products.

Intra-CEFTA trade in agricultural Intra-CEFTA trade in non-agricultural

products as % of total trade (3Q2011) products as % of total trade (3Q2011)
100 100

90 90

80 80

70 70

60 60

50 50

40 40

30 30

20 20

10 10

0 0
Exports Imports Exports Imports

AL BA HR MK MD ME RS UN/KS Average AL BA HR MK MD ME RS UN/KS Average

Source: CEFTA Parties

CEFTA SECRETARIAT
 Transposition of EU technical regulations

Party Totally / Partially Draft stage No transposition of EU Level awarded

implemented sectoral legislation
Albania 122 16 32 3

BiH 0 0 0 1

Croatia 97 0 12 3/4

Macedonia 53 0 13 3

Moldova 79 6 102 2/3

Montenegro 2 79 83 2/3

Serbia 30 11 81 3

Kosovo (UNSCR 0 3 11 1/2

1244/99)

Source: CEN
Figures refer to 193 product groupings

CEFTA SECRETARIAT
 Approx. 70% of the manufacturing activity in
CEFTA is concentrated in Serbia and Croatia

Manufacturing in CEFTA – Turnover: 42.5 bn EUR – Employment: 1.07 m

3%
Shares of CEFTA Parties:
Albania
(by turnover)
10% BIH
Albania 1.2 bn Croatia
39%
BIH 4.2 bn UNMIK/Kosovo
Croatia 14.0 bn
fYR Macedonia
UNMIK/Kosovo 0.6 bn 33%
fYR Macedonia 3.6 bn Moldova
Moldova 1.5 bn Montenegro
Montenegro 0.6 bn 1% 8% Serbia
Serbia 16.8 bn 4%
1%
Source: OECD
CEFTA SECRETARIAT
 Manufacturing activity is heavily concentrated
in low and medium low tech industries.

Low Tech Medium Low Tech Medium High Tech ICT

Industries (45%) Industries (34%) Industries (18%) Industries (3%)

Food and Beverages

Tobacco Products Petroleum Products
Chemical Products Office machinery and
Textiles Rubber and Plastic
Machinery and computers
Wearing Apparel Products
Equipment Radio, Television and
Leather Products Non-metallic Mineral
Electrical Machinery Communication
Wood Products Products
Motor Vehicles Products
Paper Products Basic Metals
Other Transport Medical, Precision and
Publishing and Printing Fabricated Metal
Equipment Optical products
Furniture and Other Products
Manufacturing

Source: OECD

CEFTA SECRETARIAT
 MULTILATERAL FRAMEWORK FOR THE
ELIMINATION OF NON-TARIFF BARRIERS

CEFTA SECRETARIAT
 Multilateral Framework on the Elimination of
NTBs in CEFTA
Objective:
1) Ensure independent monitoring of the elimination of NTBs
among the CEFTA Parties
2) Effectively communicate and promote the findings of the
monitoring to the relevant CEFTA structures and other
stakeholders,
3) Involve governments, the business community and other relevant
stakeholders in a permanent and sustainable process for
elimination of NTBs
4) Provide input to the CEFTA Subcommittee on TBT and NTBs for
the preparation of its annual report to the Joint Committee

CEFTA SECRETARIAT
 Multilateral Framework on the Elimination of
NTBs in CEFTA
Expected results:
1) Improved understanding of the precise steps needed to
improve the policy context and prioritise policy reforms for
the elimination of NTBs
2) An enhanced quality of policy dialogue in each CEFTA Party
3) Improved domestic capacities for designing policy reform in
the area of NTBs
4) Higher levels of intra-regional trade and trade with EU
5) Higher degree of integration of the CEFTA Parties in more
sophisticated value chains

CEFTA SECRETARIAT
Multilateral Framework on the Elimination of
NTBs in CEFTA
NTBs Assessment Framework
1. Technical Barriers to 2. Sanitary and 3. Administrative Barriers
Trade (TBT) Phytosanitary Measures
1.1. Institutional 2.1. Institutional 3.1. Establishment and
framework for framework for SPS functioning of a national
standardisation and co- measures customs website
operation
1.2. Transposition of 2.2. SPS agencies internal 3.2. Establishment and
European technical and external co-operation functioning of enquiry
regulations in priority points
sectors
1.3. Transposition of 2.3. Framework legislation 3.3. Involvement of the
European standards in on SPS measures trade community
priority sectors

CEFTA SECRETARIAT
Multilateral Framework on the Elimination of
NTBs in CEFTA
NTBs Assessment Framework
1. Technical Barriers to 2. Sanitary and 3. Administrative Barriers
Trade (TBT) Phytosanitary Measures
1.4. Institutional 2.4. Transposition of 3.4. Advance rulings
framework for European SPS measures
accreditation and co-
operation
1.5. Conformity 2.5. Information and 3.5. Appeal procedures
assessment infrastructure notification mechanisms
and procedures
1.6. Information and 3.6. Fees and charges
notification mechanisms

CEFTA SECRETARIAT
Multilateral Framework on the Elimination of
NTBs in CEFTA
NTBs Assessment Framework
1. Technical Barriers to 2. Sanitary and 3. Administrative Barriers
Trade (TBT) Phytosanitary Measures
3.7. Formalities:
documents and
automation

3.8. Customs procedures

and processes
3.9. Domestic and cross-
border/international
agency co-ordination and
co-operation

CEFTA SECRETARIAT
 Multilateral Framework on the Elimination of
NTBs in CEFTA
Administrative Barriers
3.1Establishment and functioning of a national customs website

Level 1 Level 2 Level 3 Level 4 Level 5

1) procedures of border
agencies (downloadable),
2) agreements with any
Rate of duties published country or countries
and regularly updated. relating to customs
Website includes the issues, 3) examples of
a website exists and customs classification,
following information: 1)
no customs website or information published in applicable legislation,
import and export clear information on
website exists only in at least one of the WTO judicial decisions
procedures, 2)advance customs valuation.
local language. languages examples, electronic
rulings, 3) penalty
(English/French/Spanish) manuals when systems
provisions for breaches
of import and export are implemented.
formalities. Above information
regularly communicated
to update the CEFTA
trade portal.

CEFTA SECRETARIAT
Multilateral Framework on the Elimination of
NTBs in CEFTA
Administrative Barriers
3.1Establishment and functioning of a national customs website

Findings
Customs websites available

Information in local and English language published in almost all CEFTA parties

Rate of duties are published and regularly updated, information on import and export procedures,
and clear information on customs valuation is usually available

Fewer parties publish information on advance rulings, penalties for breaches of import and export
formalities, information on procedures of border agencies (downloadable) and examples of judicial
decisions.

Level 3 (scale 1-5)

CEFTA SECRETARIAT
 Multilateral Framework on the Elimination of
NTBs in CEFTA
Administrative Barriers
3.2. Establishment and functioning of enquiry points

Level 1 Level 2 Level 3 Level 4 Level 5

Enquiry point handles

customs feedback
(complaints), by
one or more Enquiry telephone, human
Enquiry point providing
point(s) responsible for contact or online
answers, forms and
no Enquiry point for answering enquiries on (email, online forms) Enquiry point has a full
documents within a
customs trade-related time hotline (7/24)
reasonable period of + Functioning and
legislation and
time operations of enquiry
procedures.
point implemented in
coordination with the
other CEFTA Parties.

CEFTA SECRETARIAT
Multilateral Framework on the Elimination of
NTBs in CEFTA
Administrative Barriers
3.2. Establishment and functioning of enquiry points
-Findings
Single entity acting as Enquiry point for customs in only two of the eight parties.
Usually more than one structure responsible for answering enquiries
The enquiry points limited in structure
No specific unit within Customs administration designated and attributed the functions of Enquiry
Point
Level 2 (scale 1-5)

CEFTA SECRETARIAT
 Multilateral Framework on the Elimination of
NTBs in CEFTA
Administrative Barriers
3.3. Involvement of the trade community

Level 1 Level 2 Level 3 Level 4 Level 5

The government holds
ad hoc consultations
The trading community
when introducing or
involved at the drafting
no structure of amending laws,
stage of customs laws
consultation between regulations and
and regulations.
the government and administrative rulings Four or more
traders OR of general application stakeholder groups A minimum of 8 weeks
Permanent
consultations involve related to customs and consulted, and a are allowed for
consultation structures
less than 2 stakeholder trading procedures. minimum of 2 weeks consultation.
exist.
groups (including allowed for
At least 3 stakeholder Representatives of the
SMEs, large traders, consultation
groups are consulted. trade community from
transporters, customs
other CEFTA Parties are
brokers and citizens) Customs policy
involved in the
objectives are
consultation.
communicated to the
general public.
CEFTA SECRETARIAT
Multilateral Framework on the Elimination of
NTBs in CEFTA
Administrative Barriers
3.3. Involvement of the trade community
-Findings
Permanent consultation structures exist between the government and traders in most parties
Consultations on regular basis, facilitated through the Chambers of Commerce and/or established
Business Advisory Council.
When introducing or amending laws and regulations related to customs and trading procedures
four or more stakeholder groups are usually involved
A minimum of 2 weeks are allowed for consultation with the business community.
Only one party involves the trading community at the drafting stage of customs laws and
regulations.
Customs policy objectives are most of the time communicated to the general public (i.e. published
on the customs website).
Level 4 - (scale 1-5)

CEFTA SECRETARIAT
 Multilateral Framework on the Elimination of
NTBs in CEFTA
Administrative Barriers
3.4. Advance rulings
Level 1 Level 2
Mechanisms to issue
no administrative and advance rulings exist
legal mechanisms to for the following:
issue advance rulings classification according
for investment and to the national customs
trading purposes tariff, verification of the
origin of goods
declared for
preferential treatment.
Level 3 Level 4 Level 5
advance ruling
provisions foresee an
advance rulings are appeal mechanism
issued within 30 – 150 (possibility to request a
days after submission refusal to issue or
review, revocation/
of the request revocation of advance
modification)
rulings motivated
+ advance rulings of + Mechanisms to issue
general interest made + advance ruling
advance rulings
public mechanism exist as
implemented in
well for information on
+ advance rulings valid consultation/
the method applied for
for a reasonable period coordination with
customs valuation
of time after their other CEFTA Parties as
issuance part of their mutual
administrative
assistance.
CEFTA SECRETARIAT
Multilateral Framework on the Elimination of
NTBs in CEFTA
Administrative Barriers
3.4. Advance rulings
-Findings
All CEFTA parties provide a mechanism for advance rulings.
Existing advance ruling mechanisms mainly concern tariff classification and verification origin
Binding Tariff Information (BTI) and Binding Origin Information (BOI) is issued within 30-150 days.
Advance ruling provisions foresee an appeal mechanism in the majority of the parties
Advance rulings of general interest are usually made public
However, no advance ruling mechanism for the information on the method that will be applied for
customs valuation
Level 2 (scale 1-5)

CEFTA SECRETARIAT
 Multilateral Framework on the Elimination of
NTBs in CEFTA
Administrative Barriers
3.5. Appeal procedures

Level 1 Level 2 Level 3 Level 4 Level 5

Administrative appeal
mechanisms exist and Right to appeal to an
provisions publicly authority independent
no appeal mechanism available in the from the authority Appeal to an Information on appeal
for customs matters, or Customs Code or other which issued the independent judicial procedures easily
the related laws are Gazette. decision, such as an authority available to accessible on customs
not publicly available Information about the established arbitration all individuals website
motives of the procedure or a special
administration’s administrative tribunal
decisions provided.

CEFTA SECRETARIAT
Multilateral Framework on the Elimination of
NTBs in CEFTA
Administrative Barriers
3.5. Appeal procedures
-Findings
The administrative stage usually entails an initial right of appeal within the same administration
which issued the decision
This is then followed by the right to appeal to an authority independent of the authority which
issued the decision
Information about the motives of the administration’s decisions is generally provided
There are few parties that do not provide a right of appeal to an independent authority in the
administrative stage
However, in all parties appeal to an independent judicial authority is available to all individuals.
In most of the parties information on appeal procedures on Customs websites is limited and not
easily accessible. Only 3 parties have a dedicated page on the Customs websites.
Level 3+ (scale 1-5)

CEFTA SECRETARIAT
 Multilateral Framework on the Elimination of
NTBs in CEFTA
Administrative Barriers
3.6. Fees and charges

Level 1 Level 2 Level 3 Level 4 Level 5

Fees and charges

published on the
Fees and charges not internet (i.e. type & Information on fees
Appropriateness and
Fees and charges calculated ad valorem. level of fees and and charges regularly
relevance of fees and
calculated ad valorem Published on paper charges, corresponding exchanged with the
charges reviewed at
and are not published. (gazette, customs amount, responsible relevant administration
regular intervals.
bulletin…). authority and in other CEFTA Parties.
timeframe of
payment).

CEFTA SECRETARIAT
Multilateral Framework on the Elimination of
NTBs in CEFTA
Administrative Barriers
3.6. Fees and charges
-Findings
In most of the CEFTA parties fees and charges are not calculated ad valorem (they are determined
by a fixed amount reflecting actual cost of services provided)
Only two parties are still calculating fees ad valorem.
Fees and charges are published on paper (official gazette) and/or the internet.
However, very few countries provide a simple and comprehensive view on the type and level of fees
and charges that they apply.
Information on fees and charges are not regularly exchanged with the relevant administration in the
other CEFTA Parties
Appropriateness and relevance of the fee costs in the customs area are not regularly reviewed in all
CEFTA parties
Level 3 (scale 1-5)

CEFTA SECRETARIAT
 Multilateral Framework on the Elimination of
NTBs in CEFTA
Administrative Barriers
3.7. Formalities: documents and automation

Level 1 Level 2 Level 3 Level 4 Level 5

Docs lodged
Number of documents electronically.
for export and imports Copies accepted.
Number of documents
within the CEFTA Risk management in
for export and imports
average. Documents can be the process of
above CEFTA average.
Electronic lodging of lodged electronically, implementation (not
Documents cannot be
documents available with some exceptions. fully operational). Risk management and
lodged electronically.
only for a limited Copies of documents EDI in the process of EDI fully operational.
IT systems not ready
number of customs accepted with implementation (not Digital certificate and
for EDI and exchanging
procedures. exceptions. fully operational). signature in place.
data electronically.
Customs and other Risk management and Improvements in
border agencies not EDI planned. handling of
No risk management
accept copies of documentation and
system in place.
documents (originals automation in
requested). cooperation with other
CEFTA Parties.

CEFTA SECRETARIAT
Multilateral Framework on the Elimination of
NTBs in CEFTA
Administrative Barriers
3.7. Formalities: documents and automation
-Findings

Number of documents for export and import is within the CEFTA average for most of the parties

Documents can be lodged electronically with no exceptions only in two parties (Croatia and Moldova).

In most of the parties risk management is being implemented and there is a special risk management unit in the
Customs administration.

Main obstacles for full implementation of the risk analysis: Limited capacity of the IT system, Need for further
development of risk management modules and tools, Lack of a sufficient number of trained staff to match the needs

Electronic Data Interchange is in the process of implementation but not yet fully operational in CEFTA parties. Croatia
and Macedonia are the only parties with an operational EDI system.

The regulations governing digital certificate and signature have been adopted in most of the CEFTA parties, but at
this moment they are not always applicable in practice.

Level 2 (scale 1-5)

CEFTA SECRETARIAT
 Multilateral Framework on the Elimination of
NTBs in CEFTA
Administrative Barriers
3.8. Customs procedures and processes

Level 1 Level 2 Level 3 Level 4 Level 5

No single window in Pre arrival processing
Pre arrival processing
place. in the process of
Pre arrival processing is fully operational.
Pre-arrival processing implementation but
planned. Possibility of post-
not in use. not fully operational.
A mechanism exists for clearance audit.
No mechanism for Separation of release
separation of release A single window
separation of release from final Publication of average
from final operational.
from final determination and clearance time.
determination and Single window
determination and payment of customs The result of post
payment of customs designed in
payment of customs duties only conditional clearance audit used in
duties, but restricted to consultation /
duties. to deposit of a security. applying risk
Authorised Traders. coordination with
No difference in Elimination of pre- management.
other CEFTA Parties as
physical and shipment inspections.
A difference in part of their mutual
documentary A single window
treatment of administrative
inspection between planned or in the
perishable and non assistance in customs
perishable and non process of
perishable goods. matters.
perishable goods. implementation.

CEFTA SECRETARIAT
Multilateral Framework on the Elimination of
NTBs in CEFTA
Administrative Barriers
3.8. Customs procedures and processes
-Findings

Single Window not yet widespread among the parties. Only two parties use a single window system (Macedonia and Moldova)

Pre-arrival processing is not in use in all CEFTA parties. The capacity of the IT system limits the possibility of lodging and data
processing in advance.

In most of the CEFTA parties, separation of release from final determination and payment of customs duties is conditional to
deposit of a security.

The majority of the parties apply different documentary and physical inspection treatment between perishable and non-
perishable goods.

Pre-shipment inspections are not in use in CEFTA parties

In all of the parties there is a possibility of post-clearance audit and special divisions in customs are in place. However, post-
clearance audit is not always well connected to the risk management system

The average clearance time is not published on the website in most of the parties

Level 2 (scale 1-5)

CEFTA SECRETARIAT
 Multilateral Framework on the Elimination of
NTBs in CEFTA
3.9. Domestic and cross-border/international agency co-ordination and co-operation
Level 1
no cooperation between
border agencies.
no delegation of controls to
the Customs authority.
no exchange programmes
with third countries.
Administrative Barriers
Level 2
National legislation foresees
co-operation between
customs and other relevant
government agencies.
Regular meetings held to
improve co-operation
between government
bodies involved in
international trade.
Exchange programmes with
other CEFTA Parties.
Cross border coordination
with neighboring countries
limited.
Level 3 Level 4 Level 5
Co-operation between
customs and other relevant
(Internal) cooperation/
agencies with clearly
coordination on both Government agencies
established roles and
documentary and physical delegate controls to the
responsibilities.
controls. Customs authority (i.e.
Coordination meetings and
Country has international delegated conduct of
training involve the private
cross border agency inspections).
sector.
agreements (on joint International cross border
(Internal) cooperation/
operations; exchange of agency agreements include
coordination on either
information, customs as well customs control
documentary or physical
agents crossing the border, delegation.
controls.
etc).
Exchange programmes held
with CEFTA Parties and
other third countries.
CEFTA SECRETARIAT
Multilateral Framework on the Elimination of
NTBs in CEFTA
Administrative Barriers
3.9. Domestic and cross-border/international agency co-ordination and co-operation

-Findings:

National legislation of all CEFTA Parties foresees co-operation between customs and other relevant government
agencies.
Co-operation between customs and other relevant agencies with clearly defined roles and responsibilities is in place
in most of the Parties (either through the IBM system or signed MoUs).
In many of the CEFTA parties, regular meetings are held to improve co-operation between government bodies
involved in international trade and, when necessary, coordination meetings and training also involve the private sector.
Government delegates controls to the Customs authority in 5 of the 8 CEFTA Parties.
Almost all parties are involved in exchange programmes with other CEFTA parties mainly through the multi-
beneficiary IPA programmes and other international projects.
An international agreement on joint customs controls has been signed with one of the neighbouring countries in 5 of
the 8 CEFTA Parties.
Level 3+ (scale 1-5)

CEFTA SECRETARIAT
Multilateral Framework on the Elimination of
NTBs in CEFTA
Indicators Level 1 Level 2 Level 3 Level 4 Level 5
3.1 customs 1/8 (ME) 5/8 (AL , BA, HR, 2/8 (MK, RS)
website MD, UN/KS)

3.2. enquiry 6/8 (AL, BA, MK, 2/8 (HR, MD)

points ME, RS, UN/KS)

3.3. trade 1/8 (MK) 1/8 (BA) 6/8 (AL, HR, MD,
community ME, RS, UN/KS)

3.4. Advance 1/8 (MD) 7/8 (AL, BA, HR,

rulings MK, ME, RS, UN/KS)

3.5. Appeal 3/8 (AL, BA, MD) 1/8 (UN/KS) 4/8 (HR, MK, ME,
procedures RS)

3.6. Fees and 2/8 (MD, UN/KS) 5/8 (BA, HR, MK,
charges ME, RS)

3.7. Formalities 4/8 (AL, BA, MK, 2/8 (ME, RS) 2/8 (HR, MD)
UN/KS)
3.8. Customs 7/8 (AL, BA, HR, 1/8 (MK)
procedures MD, ME, RS,
UN/KS)
3.9. co-ordination 1/8 (BA) 3/8 (HR, MD, 4/8 (AL, MK, ME,
and co-operation UN/KS) RS)

CEFTA SECRETARIAT
OTHER CEFTA TOOLS RELATED TO NON-
TARIFF BARRIERS

CEFTA SECRETARIAT
CEFTA TRADE PORTAL

CEFTA SECRETARIAT
CEFTA TRADE PORTAL

CEFTA SECRETARIAT
 CEFTA TRADE PORTAL

Over 130,000 visitors from all over the work between

November 2010 and February 2011
Domains
Pages 9 Republic of
October 2011
Republic of Serbia 8,393 8 Serbia
Bosnia-Herzegovina 6,296
Croatia 6,270 7 Bosnia-
Albania 5,749
United States 3,500 6 Herzegovina
Macedonia 2,687
Senegal
Montenegro
1,983
1,800
5 Croatia
Germany
European country
1,514
1,426
4
3
Russian Federation 1,198
Moldova 1,083 Albania
Romania 839
Kazakhstan 790 2
Nigeria 671
Ivory Coast (Cote D'Ivoire) 335 1 United States
Great Britain 559
Slovenia 486 0
China 412
Ukraine
Italy
399
376
Macedonia
Turkey 374
Japan 366
France
Senegal
323
Poland 295
Others 4457
October 2011

CEFTA SECRETARIAT
 CEFTA TRADE PORTAL

Customs is the most visited category according to the

online survey
No answer 11%

Public Procurement 10%

Trade Regime 23%

Border Control 6%

Technical Requirements 6%

Sanitary 10%

Licensing 0%

Customs 35%

0% 5% 10% 15% 20% 25% 30% 35% 40%

CEFTA SECRETARIAT
 CEFTA MARKET ACCESS BARRIERS DATABASE

• Recording market access issues raised by the CEFTA

Parties
• Includes 16 different fields, 10 out of 16 provides
categories within drop-down menus
• Includes both manufacturing (97 chapters classified
under HS 2007) and services sectors ( NACE Rev 2 -
61 different services subcategories)
• ICT classification of Non-tariff barriers
• 41 problem category
• 68 category description
• 144 different sub-description
CEFTA SECRETARIAT
 CEFTA
Priorities and Planned Activities on
Customs

CEFTA SECRETARIAT
 MINISTERIAL CONCLUSIONS 2011
• Following the signing and ratification of the Additional Protocol and Annex 10 to the Agreement,
we undertake to report on implementation and on the economic impact of the further
liberalisation of trade in agricultural products by the sixth CEFTA Joint Committee Meeting in
2012;
• Underling the positive impact of trade in services on the overall economic performance and
especially on competitiveness we commit to intensify the existing cooperation and regional
coordination in this area, to identify the most distorting services trade barriers and find ways to
overcome them while in parallel elaborating on the paths towards the future negotiation on
liberalisation; to achieve these goals we instruct the Working Group on Trade in Services to pursue
with the implementation of the agreed activities from the Action Plan 2011-2012;
• Acknowledging that setting up the joint framework for ex-ante elimination of the NTBs will lead to
the more transparent, rapid and effective removal of identified barriers that hamper intraregional
trade, we urge all CEFTA structures to join their forces in timely implementation of the Multilateral
Monitoring Framework. We recommend the Chairs of the respective subcommittees to take into
consideration the recommendations from the OECD first assessment cycle when preparing their
respective work programmes for the next year. The special attention should be given to the more
elaborated assessment in the area of sanitary and phytosanitary measures and administrative
barriers while it is also expected that the further NTBs analysis should be extended to cover the
final goods.
• Acknowledging the provision stated in the last paragraph of Article 3 of Annex 4, we recommend
CEFTA Parties to employ a matrix in the format suggested by the Secretariat to provide each other
and the Joint Committee with the details of the Agreements, including their dates of entry into
force, and their corresponding rules of origin which are applied with the European Community,
Iceland, Norway, Switzerland (including Liechtenstein) and Turkey.
CEFTA SECRETARIAT
 MINISTERIAL CONCLUSIONS 2011
• Taking into account the commitments we made in the Article 12 paragraph 3 of the Agreement, we
encourage all Parties to engage additional efforts to create conditions for concluding the suitable
agreements on mutual recognition in the SPS field thus facilitating the unrestrictive flow of traded
products and contributing to the better integration of the region.
• Recognizing the significance of the unified and systematic approach towards eliminating the
unnecessary technical barriers to trade and building on the successful examples of the recently
reached agreements among certain CEFTA Parties, we commit to enhance and deepen cooperation
among the national accreditation bodies thus creating favourable environment for concluding the
agreements on the mutual recognition of conformity assessment procedures in accordance with
the Article 13 paragraph 4.
• Fully supporting the permanent information sharing and building on the positive feedback from
the wider circle of users we undertake to conclude the Memorandum of Understanding on
Maintaining and Updating the CEFTA Trade Portal by September 2012 and thus enable its smooth
transfer from the GIZ managed to the CEFTA Parties managed portal.
• Recognizing the importance of simplifying customs procedures and reducing, as far as possible,
the formalities imposed on trade with a view to facilitating intraregional trade further, we
encourage all Parties to exchange data between their customs authorities and between their
customs authorities and other governmental agencies, and to utilize the usage of data to be
exchanged for the purpose of facilitating legitimate trade without hampering the deterrence of
security and safety controls at the border.

CEFTA SECRETARIAT
 MINISTERIAL CONCLUSIONS 2011
• Having regard to our commitment stipulated by Article 21 paragraph 7, we emphasize the
importance of reporting state aid schemes by CEFTA Parties in the format as decided during
this meeting to ensure transparency in that area.
• We encourage the interested CEFTA Parties to ratify Pan-Euro-Mediterranean Convention as
soon as possible and after that to start with the process of amending the CEFTA Protocol on
rules of origin.
• Notwithstanding the process of ratification of the PEM Convention, we appreciate the
progress reached in the level of discussions for revising the protocol on rules of origin of the
pan-Euro-Mediterranean Convention, and encourage all CEFTA Parties to participate
constructively in the revision exercise.
• WE welcome Croatia’s conclusion of negotiations with the European Union and, taking into
account the target day for Croatia’s accession, i.e. 1 July 2013, we invite Parties to start
timely preparations on a smooth transfer of depositary responsibility as well as on
subsequent budgetary adjustments of the financing of the Secretariat.

CEFTA SECRETARIAT
 Multiannual Work Programme

• Overall Objective: The Subcommittee on Customs and Rules of Origin is

fully committed itself to emphasize in its work the importance of
simplification and facilitation of customs procedures and reduction, as
far as possible, of the formalities imposed on trade and to submit its
recommendations to the Joint Committee regarding actions that might
need to be taken by the Parties to further facilitate trade.
• Key Priorities:
1) Developing regional approach in the areas of electronic data exchange
between the CEFTA Parties to complement the on-going projects with an
aim to facilitating intra-regional trade by fully taking into account the
requirements of the EU acquis. (Customs to Customs)
2) Coordination with the Subcommittee on NTBs and TBT through
contributing to its work. (Customs to OGA)
3) Establishing transparent, efficient and effective procedures to ensure
sustainable and reliable information exchange between customs and the
regional trading community to simplify customs rules with a view to
facilitating legal trade. (Customs to Private Sector)
CEFTA SECRETARIAT
 Annual Work Programme of 2012

• Overall objective: to promote simplification of the customs procedures

with a view to facilitating trade without undermining the importance of
smooth functioning of diagonal cumulation between the CEFTA Parties.
1) Trade facilitation
- Information exchange between customs authorities
a) Interaction with SEED Project
b) CEFTA Customs Risk Analysis Experts Network Meeting (joint risk
profiling?)
- Information exchange between customs authorities and other
government agencies
a) Workshop for the preparation of Business Process Maps
- Information exchange between customs authorities and private sector
a) Workshop on AEO Programme (with an emphasis on private sector)

CEFTA SECRETARIAT
 Annual Work Programme of 2012

2) Origin (Reviewing implementation of CEFTA Origin Protocol)

- 2nd CEFTA Origin Network Meeting
- Explanatory notes of CEFTA Origin Protocol
- Following up on the developments of Pan-Euro-Mediterranean
Process

3) Training (Initiating the preparation of regional training programmes for

the CEFTA customs authorities)
- Training Need Analysis

4) Administrative cooperation (Promoting the level of strategic

administrative cooperation between the CEFTA customs authorities)
- Strategic administrative cooperation meeting of CEFTA Customs DGs

CEFTA SECRETARIAT
 Annual Work Programme of 2012

• Expected Results
1) Trade Facilitation:
• The data exchanged electronically for trade facilitation without decreasing the deterrence of customs
inspections but making them more effective
• Each CEFTA Customs Authority and SPS Authority have a better understanding of their business process
and the number of data they are requesting from operators.
- CEFTA Parties evaluate the pros and cons to establish a Regional AEO Programme

2) Origin
• Further clarification for the smooth implementation of the CEFTA Origin Protocol ensured.
• CEFTA Parties involved in the PEM Process continue to coordinate their positions with each other.

3) Training
• The CEFTA Parties become aware of the feasibility to initiate a regional training programme for their
customs authorities.

4) Administrative cooperation
• The involvement of Customs DGs ensured to increase the level of cooperation of between CEFTA Customs
Authorities is ensured.
• The CEFTA Parties have a better understanding on which areas the cooperation between the customs
authorities can be improved.

CEFTA SECRETARIAT
Annual Work Programme of 2012

CEFTA SECRETARIAT
Annual Work Programme of 2012

CEFTA SECRETARIAT
PROSPECTS FOR THE FUTURE

CEFTA SECRETARIAT
 Challenges for the years to come

• The implementation of CEFTA is now involving the domains for which

• Objectives of liberalisation are not explicitly set up by the Agreement.
• Ministries responsible for Trade might not always have a direct
mandate over these domains, thus requiring involvement of other
governmental bodies (e.g. elimination of NTBs, trade facilitation,
liberalisation of trade in services, etc.).
• These areas require technically complex discussions, as well as
coordinated efforts of both policy making Ministries and law
enforcement authorities at the same time.
• As a consequence, the projects and initiatives to support the
implementation are also getting technically demanding and increasingly
complex.
• Trade policy alone is not sufficient to optimise the impact of regional
trade liberalisation and European integration.

CEFTA SECRETARIAT
 Objectives

CEFTA 2008 - 2011 CEFTA 2012 - 2015

• All commitments and deadlines met • Strategic partnerships deepened

• Liberalisation of trade in goods • Investment
• Diagonal cumulation • Supply chains
• Opening of PP Market • Transportation channels
• TBT notification
• State Aid notification
• Focus in CEFTA implementation
• IPR review
• Liberalisation of trade in services
• Non-discrimination in Investment
• Elimination of NTBs
• CEFTA Trade Portal
• Trade Facilitation
• Transparency

CEFTA SECRETARIAT
 Assumptions

• Harmonisation efforts within CEFTA are aligned with the common

objective to join the EU
• All decisions are promoting and not in anyway jeopardising the accession
process of respective Parties
• No CEFTA specific standards or practice are introduced

CEFTA SECRETARIAT
 “CEFTA Approach”

• Analyse trade flows

• Assess existing and potential barriers to trade
• Articulate respective Parties interest
• Identify potential area of multilateral/plurilateral interest
• Cross-check with the respective EU accession priorities/plans
• Agree on the scope of CEFTA negotiations

CEFTA SECRETARIAT
 Key Success Factors
• Strategic view– understanding strategic importance of trade and strengthening
regional cooperation/partnerships
• by the Parties in the context of their economic development, regional
cooperation and accession to the EU
• by the donors in the context of the impact of trade on promoting economic
development in the Region
• Coordination – efficient coordination required
• among the Parties in the negotiations
• within respective Parties administrations to develop Parties’ positions
• between the Parties and the Secretariat to execute action
• between the Parties, the Secretariat and international partners to seek for
synergies and prevent overlapping of efforts
• Sustainability – ensuring sustainability of the process as a prerequisite to success
• discipline of all actors in programming and implementation of priorities
• regular participation and appropriate representation in official meetings
• active involvement in agreed activities
• financial discipline

CEFTA SECRETARIAT
THANK YOU.