Standard Summary Project Fiche – IPA centralised and decentralised National programmes
1 Identification
Project Title / Harmonization of recovery of customs debts and repayment/remission of customs duties legislation with EUProject no. / TR 12 IB JH 04 TWL
MIPD Sector Code
The numbering is for the sake of EU statistics and does not need to correspond with the numbering in the beneficiary MIPD / 1. Justice, Home Affairs and Fundamental Rights
Indicative total cost
(VAT excluded)[1] / € 198.800
Indicative EU contribution / € 188.860
Management mode / Decentralised
EU Delegation in charge/Responsible Unit / Republic of Turkey Ministry of Customs and Trade (Turkish Customs Administration-TCA)
DG for Risk Management and Control
Contracting Authority / The CFCU will be Implementing Agency and will be responsible for all procedural aspects of the tendering process, contracting matters and financial management, including payment of project activities. The director of the CFCU will act as Programme Authorizing Officer (PAO) of the project.
Ms. Emine DOGER (Acting PAO-CFCU Director)
Central Finance and Contracting Unit
Tel: +90 312 295 49 00
Fax: +90 312 286 70 72
E-mail:
Address: EskişehirYolu 4.Km. 2.Street. (HalkbankKampüsü) No: 63 C-Blok 06580 Söğütözü/Ankara Türkiye
Management mode / Decentralised
Implementing modality / Stand-alone project
Implementation management / Sultan KİBRİTOĞLU (PL and SPO Delegate)
Head of Department
Address: Republic of Turkey Ministry of Customs and Trade, Dumlupınar Bulvarı No: 151 Eskisehir Yolu 9. Km.06530 /ANKARA
Telephone: +90 312 449 37 46
E-Mail:
Implementing modality / Stand-alone project
Project implementation type / Twinning Light
Zone benefiting from the action(s) / Turkey
2 Rationale
2.1 Summary
Despite a good level of alignment with the EU provisions, there are still significant divergence in the implementation of those regarding recovery of customs debt and repayment/remission of customs duty. As a revenue collecting agency, TCA needs to eliminate the flaws in the way recovery process and optimise the level of duty collected. Therefore TCA must improve its implementation with increased knowledge and experience of the staff and adequate secondary legislation.
With the expertise and the trainings provided by MS, Turkish Legislation and implementation will be in compliance with Union Customs Code.
2.2 Link with MIPD and National Sector Strategies
In 2013-2017 Strategic Plan of TCA, under the Strategic Axis 3, “decreasing informality and prevention tax loss and tax evasion” is stated as a priority and “simplifying International Legislation for the purpose of clarity” is stated a principle for TCA. On the other hand, in the National Development Plan, it is stated that “The main objective of tax policies is to achieve a tax system, which respects the rights of taxpayers, reduces tax losses and evasion, considers equitable and balanced distribution of the tax burden in compliance with the financial power principal, and does not distort economic efficiency while meeting public expanses.
By the virtue of this project TCA will be able to prepare simpler and effective secondary legislation on the matter of recovery and repayment/remission and to harmonize implementation of the legislation in the field of recovery of customs debts and repayment/remission of customs duties with that of EU.
2.3 Link with Accession Partnership (AP) / European Partnership (EP) / Stabilisation and Association Agreements (SAA) / Annual Progress Report
In the 2014 Progress Report for Turkey under Chapter 16, limited progress and increasing divergence with the acquis is stated. Nonetheless continuing work on strengthening the tax administration, combating the informal economy and increasing voluntary compliance is emphasized. Under Chapter 29, despite the fact that Turkey has started preparations for harmonisation with the Union Customs Code, the progress made in the field of customs legislation is found insufficient.
The report highlights that the realignment of the Turkish Tax Legislation with the commitments taken by Turkey needs to be ensured without delay. It is also stated that Turkey’s high level of alignment in Customs Union field remains high. As a tax collecting agency, TCA has a responsibility to increase compliance and to meet budget objectives as well. Moreover, it is responsible for protecting the rights of taxpayers.
2.4 Problem Analysis
Turkish Customs Law No:4458 is substantially harmonised with CCC except the issues that CCC authorizes MS to regulate on their own, such as appeals, customs representation and penalties. As a tax collecting agency, TCA has to implement the customs legislation deriving from EU Customs Legislation and national tax legislation as well. The contradiction between the provisions coming from two different sources and the translation provisions deprived of insufficient and incomprehensive secondary legislation may sometimes cause Turkish Customs Officers to mis-interpret and mis-implement the Legislation that results in unnecessary lawsuits, loss of time and money and in some cases loss of rights for economic operators.
For these reasons, TCA needs comprehensive and clear secondary legislation especially on the subjects of recovery and repayment/remission and to diminish the contradictions between the provisions coming from two different sources. At the end of this project, it is expected to have customs legislation which is simpler, more harmonized and well-informed customs officers implementing this legislation.
2.5 Complementarity of the project
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2.6 Lessons learned
The ongoing and already concluded Customs Modernization projects have given the Customs the opportunity to gain experience in the field of development and management of EU funded projects. The numbers of staff involved in project the TCA have been increased and trained to professionally handle future projects.
The administrative capacity to have a customs structure with practices in line with EU requirements has continuously improved with the other projects. The Twinning Project, for instance, has improved the administrative structure especially in the field of the legislative alignment and re-structuring of the TCA.
Considering the studies and activities in the previous projects the customs legislation was thoroughly compared to that of the EU, a Post Clearance Control System was established, legislation studies were made on the New Computerized Transit System (NCTS), Integrated Tariff Management System (ITMS). Also, projects for the establishment of NCTS and ITMS were realized. Many experts from TCA took part in the activities of these projects and gained sufficient experience for the future projects.
So, during the implementation of this new project it is certain that TCA will have available experienced staff to effectively fulfil the activities of the project together with the experts of the Project partner.
3 Description
3.1 Overall objective of the project
The overall objective of the project is modernization of customs legislation and practice in line with the EU standards for proper and effective implementation of the Union Customs Code (former Modernized Customs Code).
3.2 Specific objective(s) of the project
The overall objective of the project is to increase alignment of both Turkish Customs Legislation and implementations regarding recovery of customs debts and repayment/remission of customs duties with those of EU.
The Project aims specifically;
1. To recast secondary legislation related to recovery, repayment and remission of customs duty to align it with that of EU.
2. To improve implementation capacity of TCA through increasing knowledge and experience of the staff via;
a. training on the matters of recovery of customs debts and repayment/remission of customs duty
b. preparing handbooks and booklets.
3.3 Results
1. Officers from regional and local offices of TCA get training on the matters of revenue collection, guarantee management and refunding of an amount of duty recovered erroneously.
2. Direct and indirect customs representatives get training on the subjects of recovery, repayment and guarantee procedures (especially on the matters of using their rights, time limits, documents used, types of guarantees, payment facilities provided by TCA etc.).
3. Comprehensive and applicable secondary legislation on the subjects of recovery and repayment/remission is available.
4. The amount of customs duties and taxes recovered by TCA increased by 5 % in the year, which the project completed, compared to the previous year.
5. Handbooks and booklets are prepared and distributed local customs offices and economic operators as well.
6. Technical support/advises is provided from short –term experts for the program which enables TCA to do all recovery and repayment activities electronically.
7. TCA staff is aware of the best practices of the Member States and efficient co-operation with counterpart departments in other Member States is achieved.
3.4 Main Activities
Activity 1 contributing to result 1 to 6
1.1. To train theoretically and practically regional and local customs officers on the matters of recovery of customs debts and repayment/remission of customs duty.
1.2. To give seminars direct and indirect customs representatives on the implementation of recovery, repayment and guarantee provisions of customs legislation and also their rights and obligations.
1.3. To prepare detailed secondary legislation regarding to recovery of customs debt, and repayment/remission of duty.
1.4. To prepare handbooks for the customs officers about recovery of customs debt, and repayment/remission of duty.
Activity 2 contributing to result 7
2.1. To arrange study visits to EU MS to observe EU best practices.
2.2. To send interns to EU Customs offices to experience the implementation of recovery of customs taxes and duties and repayment/remission processes.
(Twinning Light Contract EUR 198.800 Euro, %5 of which will be co-financed with national budget)
3.5 Assessment of project impact, catalytic effect and cross border impact (where applicable)
By the realization of these project components administrative capacity of TCA will increase considerably.
The achievement of full harmonization with the EU best practices and the improvement of the administrative and technical capacity of the TCA in ensuring and collection of customs debt and repayment of customs duties will be enhanced.
3.6 Sustainability
During the implementation of the project, trainings/ study visits/internships shall be designed and implemented for participants who can have medium or long term perspective in relevant services. During and after the implementation of the project, decisions on rotation /turnover of staff shall take into account this condition for the trained staff both at central and local units.
In conformity with the activities and results of the project, to render the effects of the project sustainable TCA will maintain the training activities after the project both for the training of the newly recruited staff and for the training of the staff on relevant new developments. Also, measures (for instance, workshops, seminars, stakeholder’s gatherings, dissemination of reports/training materials on available medium, implementation of recommendations etc.) shall be taken to disseminate the knowledge and to transfer know-how into the use.
3.7 Assumptions and pre-conditions What assumptions/risks or conditions could affect the success and sustainability of the project? How can these be mitigate
4. Implementation issues
4.1 Indicative project budget
Please provide a budget breakdown in the table attached divided by Institution building (IB)(TA, grants) and Investments(IV) (works, supplies, services)
Indicative Project budget (amounts in EUR)(for decentralized management)
Decentralised management / SOURCES OF FUNDINGTOTAL EXP.RE / TOTAL PUBLIC EXP.RE / IPA CONTRIBUTION / NATIONAL PUBLIC CONTRIBUTION / PRIVATE CONTRIBUTION
IB
(1) / INV
(1) / EUR
(a)=(b)+(e) / EUR
(b)=(c)+(d) / EUR
(c) / % (2) / Total
EUR
(d)=(x)+(y)+(z) / %
(2) / Central
EUR
(x) / Regional/
Local
EUR
(y) / IFIs
EUR
(z) / EUR
(e) / %
(3)
Component 1
Contract 1.1 TWLight / X / – / 198.800 / 198.800 / 188.860 / 95 / 9.940 / 5 / 9.940 / –
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4.2 Indicative Implementation Schedule (periods broken down per quarter)
Dates indicated in the schedule cannot go beyond the contracting and execution deadlines in the financing proposal
Please align the below schedule with Financing Proposal
Contracts / Start of Tendering / Signature of contract / Project CompletionContract 1.1 / II Quarter 2015 / III Quarter 2015 / I Quarter 2016
4.3 Cross cutting issues
4.3.1 Equal Opportunities and non-discrimination
Based on the fundamental principles of promoting equality and combating discrimination, participation in the project will be guaranteed on the basis of equal access regardless of sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation.
Male and female participation in the project will be based on EU standards and assured by official announcements published to recruit the necessary staff for the project. The main criteria for recruitment will be qualifications and experience in similar projects, not sex or age. Both men and women will have equal opportunities and salaries.
4.3.2 Environment and climate change
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4.3.3 Minorities and vulnerable groups
According to the Turkish Constitutional System, the word minorities encompasses only groups of persons defined and recognized as such on the basis of multilateral or bilateral instruments to which Turkey is a party. The project will apply the policy of equal opportunities for all groups including vulnerable groups.
4.3.4 Civil Society/Stakeholder involvement
In the training projects it is planned to involve the relevant economic operators to inform them about the developments in the scope of the UCC. Activities were included in the project for their participation.
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ANNEXES
Documents to be annexed to the Project fiche
· Log frame in Standard Format
· Description of Institutional Framework
(Including composition of the project Steering Committee, Sector Monitoring Sub-Committees, and sectoral working group)
· Reference list of relevant laws and regulations only where relevant
· Specifications Required for the Project Leader and Short-Term Experts
ANNEX I: Logical framework matrix in standard format Logframe should be revised by adding measurable indicators- baseline /targets data should be provided
Harmonization of recovery of customs debts and repayment/remission of customs duties legislation with EU
Project No: TR2012/0329.06
Contracting period expires
3 years following the date of conclusion of Financing Agreement / Execution period expires
2 years following the end date for contracting
Total budget / € 198.800
IPA budget: / € 188.860
Overall objective / Objectively verifiable indicators / Sources of Verification
The overall objective of the project is to increase alignment of both Turkish Customs Legislation and implementations regarding recovery of customs debts and repayment/remission of customs duties with those of EU. / Harmonization with EU practices regarding Recovery/Repayment/Remission By The First Quarter Of 2016 / · EU Regular Progress Report on Turkey