UNMIK ON AIR

CUSTOMS IN KOSOVO

By Zoran CULAFIC

SLUG: UNMIK officials strongly rejected recent accusations raised by Bedri Shabani charging that high-level international representatives in Kosovo hide or even protect individuals or groups suspected to be involved in organized crime and corruption. But the accusations levied by Shabani, do point to the existing problem of organized crime and corruption in general in Kosovo.

UNMIK Customs Service in Kosovo has policies in place to reduce illicit business and promote legal trade in Kosovo. One way to enforce these policies is to have what can be considered a “clean” house within the Customs Department.

CUT 1 - Bedri Shabani - Kosovo is a center for narcotics and cigarettes smuggling from all sides and we must protect people in Kosovo from drug addiction. Frankly, I’m so angry these days, many of my friends are ready to work with a strong will but it does not suit some PEOPLE HERE. So, criminals and “big businessmen” in Kosovo are playing today with the fate of the people and I expect from the Kosovo authorities, particularly from Mr. Prime Minister Bayram Rexhepi to support me, and not only me, but to support all the people in this. In doing that we can achieve something.

A strong statement made by Bedri Shabani, a recently fired customs officer in Pristina, raising a familiar issue of organized crime and corruption in Kosovo.

Hello and welcome …

UNMIK officials strongly rejected recent accusations raised by Bedri Shabani charging that high-level international representatives in Kosovo hide or even protect individuals or groups suspected to be involved in organized crime and corruption. But the accusations levied by Shabani, do point to the existing problem of organized crime and corruption in general in Kosovo.

Naim Huruglica Deputy Director of Finance and Administration of UNMIK Customs details mandates within Customs enforcement aimed to track and hold officers accountable for their actions: Initially when the custom officer signs a contract of employment the officer also signs what is called a Code of Conduct which helps to ensure professional and high standards of behavior, explains Hurgulica.

CUT 2 Hurgulica - Among other measures we also have the measure of so called rotation and we do not allow for the same custom officer to remain for a long time in one custom point. This is done in order to avoid close contact or creation of close relations with importers and trade agents. We also try not to employ people who have relatives in the customs service and people who have criminal files in courts and Kosovo police.

This year the custom service also is planning to install security cameras in its branches in order to inspect the work archive tape as possible evidence for future criminal cases….

Once trained and in the field, Custom officials encounter a wide range of importers and retailers…and tobacco smuggling tends to be the most common offence custom officials come across…

A law enacted on January 15^th of this year signed by UNMIK’s SRSG regulates the import and trade of tobacco by requiring every pack of cigarettes to have a banderole as evidence of having paid an excise tax. After January 15^th of this year, every pack of cigarettes without a banderole in the Kosovo market will be considered illegal and will be subject to confiscation…. like this one late last month:

(((UP / DOWN Roll sound of cigarette seizure…)))

According to Deputy Director of UNMIK Customs-- Bujar Shatri-- over the past few months before the new banderole regulation for cigarettes was enforced, Custom officials worked closely with tobacco wholesalers and importers to be in compliance with the new laws…

Shatri says UNMIK Custom service has given 3 opportunities to licensed importers to eliminate those stocks of cigarettes without banderoles in their depots. The first option was to offer the possibility to re-export the same cigarettes, the second option was to destroy the cigarettes under the supervision of the custom service-- in which case the money paid for the excise and other taxes were returned to them. The final and third option extended to tobacco importers, was to simply pay the excise tax by the deadline and put banderoles on every pack:

Customs Service Deputy Director Bujar Shatri believes that through the implementation of the bandaroles the smuggling of cigarettes will decrease, if not disappear at all.

CUT 3 - Shatri - I have to say that some importers chose the first two options and some the third one, but we think that in a very short time-frame all those stocks in the depots of licensed importers will be eliminated and we will not have cigarettes without banderols in the market no longer.

… And as custom officials enforce these new regulations in combination with existing custom laws, the Kosovo Consolidated Budget ultimately sees the benefit of their work. The Customs Service is the main contributor to the Kosovo Consolidated Budget. In 2003, the average amount of revenue collected per custom officer is a point of pride for the department: For every Euro collected by a custom official cost the Kosovo Consolidated Budget .1 cent.

John Amos is Customs Service Deputy Director-General and he told UNMIK on AIR that custom officers did significant job in the last two-three years to establish a solid customs service based on EU standards.

CUT 4 -Amos- Last year we had very good success, the amount collected last year was 428 million Euros and that compares extremely favorably with the other countries in the region. It’s quite easy to say we probably had the best record of revenue collection in the region.

When looking at Bulgaria’s Customs service, it collected 2.5 times the amount of revenue and they have 7 times as many staff. And according to Amos, the Customs Service in Kosovo is the most modern customs service in the region aiding in its efficiency:

CUT 5 -Amos-– It’s certainly is our opinion and I’m sure that’s right. Last year we collected, and for the last three years, almost one million Euros per officer, and each year we’ve been getting closer to EU standards. We have been well advised by Customs and Fiscal Assistance Office from the EU.

and that was all for this edition of UNMIK on air...thank you for listening and stay tuned for more...