Project Proposal
Matra Pre-accession Projects Programme (MPAP)
Project title: / Technical assistance for the implementation of pre-arrival and pre-departure declarations at Turkish Customs Administration.Submitter of the project: / Prime Ministry, Undersecretariat For Customs
Directorate General of Customs
Project beneficiary: / Prime Ministry, Undersecretariat For Customs
Directorate General of Customs
Contact details:
Contact person: Hülya ERBAY
Position: Head of Department
Telephone: +90 (312) 3068291
Email:
Contact person: Burak Serkan YAŞAR
Position: Customs Expert
Telephone: +90 (312) 3068634
Email:
Project counterpart: / Prime Ministry Undersecretariat for Customs is the beneficiary and the responsible governmental institution regarding the proposed project.
Project purpose: / Analysing and learning from the existing pre-arrival and pre-departure declarations at Dutch Customs and making use of Dutch Customs’ experience in order to reduce the number of problems that could be encountered during legislative and technical studies at Turkish Customs and during the implementation period.
EU (accession) relevance: / The Council (EC) decision of 19th March 2003 covering the principles, priorities, intermediate objectives and conditions contained in the Accession partnership with the Republic of Turkey, included the following relevant short-term priorities under the Customs Union sector:
“- Strengthen the administrative and operational capacity of the customs administration.”
Under “Chapter 29-Customs Union” of Section B.3.1 (Chapters of the acquis) of Turkey’s 2005 Progress Report (COM (2005) 561 final) dated 9 November 2005 (SEC (2005) 1426), it is stated that:
“…
Turkey’s computerised import, export and national transit entry-processing system is not yet compatible with the EU systems such as the integrated tariff (TARIC) or new computerized transit system (NCTS). The Under-secretariat of Customs does not only need to undertake these modernisation activities of IT infrastructure, but also needs to attach particular importance to strengthening its administrative structures, aligning its business procedures and improving the training quality of customs officials.”
Under “Conclusion” part of the same chapter, it is also stated that:
“Overall, the level of alignment in the area of customs is high, in particular due to the alignment in the framework of the EC-Turkey Customs Union. However, further alignment of Turkish Customs Code with that of the EC is still needed.”
and ;
“The recent automation of customs offices and modernisation of customs controls should continue. Significant modernisation efforts are required to improve the functioning of the customs administration, in order to have sufficient capacity to implement and enforce the acquis communautaire.”
Under “Chapter 29-Customs Union” (Section 4.29) of Commission Staff Working Document on Turkey’s 2006 Progress Report (COM (2006) 649 final) dated 8 November 2006 (SEC (2006) 1390), it is stated that :
“Further efforts are needed to strengthen administrative capacity, including the timely preparation for IT-interconnectivity and operating with the Community IT systems.”
2006 Accession Partnership Document for Turkey (Council Decision of 23 January 2006 on the principles, priorities and conditions contained in the Accession Partnership with Turkey (2006/35/EC)) published in the Official Journal of the European Union dated 26.01.2006 no. L 22/34, included the following short-term priorities under the 3.1 – Customs Union sector:
“strengthening the administrative and operational capacity of the customs administration and alignment of the internal procedures with the EU standards” and “preparations for the development of the necessary IT systems so as to allow for the exchange of electronic data with the EU and its Member States, beginning with transit and tariff areas”
In Electronic Customs Multi-Annual Strategic Plan (MASP Rev 7) Working Document (TAXUD/477/2004 - Rev. 7 ECG update – EN) dated 27 September 2006, under 5.1 regarding the Regulation (EC) No 648/2005, it is stated that :
“Electronic declaration and automated systems for the implementation of risk management and for the electronic exchange of data between customs offices of import, entry, export and exit, are required to be in place three years after the date of entry into force.
Concerning the other necessary IT systems, the legal obligation set under Regulation 648/2005 is that these systems must be in place three years after the implementing provisions come into force (i.e. in mid 2009); they include those for:
- electronic lodging of pre-arrival and pre-departure declarations;
- exchange of data between customs offices;
- an electronic system for risk management , both for transmission of risk information and risk selection results, to be integrated into the processing of electronic declarations.”
According to MASP Rev 7, the first stage of Automated Import System (AIS), the Import Control System (ICS), will particularly include the exchange of electronic pre-arrival declarations and risk information.
Points (4) to (11) of Article 1 of the Draft Commission Regulation amending Regulation (EEC) No 2454/93 laying down provisions for the implementation of Council Regulation (EEC) No 2913/92 establishing the Community Customs Code (TAXUD/1250/2005, REV 7 - CORR 1-FINAL-EN, 23 October 2006) lay down the provisions for entry summary declaration. The draft Article 184a in Point (11) (Time Limits), the time limits by which the entry summary declaration shall be lodged at the customs office of entry are set. And according to Point (3) of Article (3) states that these provisions shall apply from 1 July 2009.
Summary of institutional setting in your country: / Directorate General of Customs (DGC) is a law enforcement unit responsible for administration and collection of customs duties, excise duties and VAT on imports. It is also responsible for ensuring that all goods and persons entering and exiting Turkey are in accordance with relevant laws and regulations. Our mission is to promote voluntary compliance with our laws and regulations through communication, high quality service and responsible enforcement. The Undersecretariat has 18 Regional Directorates and 138 Customs Directorates under Regional Directorates.
Computerised customs transactions first began in 1998 at Atatürk Airport Customs Directorate, which was chosen as the pilot site for automation. On January 4, 2000, the contract for deployment of the computerised system was signed. The modernisation studies have continued since then and as of January 2007, 18 Regional Directorates and 109 Customs Directorates have been automated. Currently, more than 99% of all customs declarations are carried out in electronic environment.
The computerised system for customs transactions is called BILGE, which is the abbreviated form of Computerised Customs Activities in Turkish. BILGE is an easy-to-use and modular customs application software that enables the control of goods from the time they enter the customs area until the time they are released.
Education of traders and customs personnel was an important part of the automation of Turkish Customs. During the pilot implementation and deployment of BILGE system, about 15.000 traders and 4.000 customs personnel have been trained to use the BILGE system.
BILGE software is composed of four modules, which are;
detailed declaration,
cargo (summary) declaration,
accounting,
integrated tariff.
These four modules operate in an integrated manner, that is, it will not be possible to continue to the next stage if there exists a missing or inconsistent data at the previous stage. With the auto-control procedure of BILGE software, it is greatly ensured that the declarations are made with all the necessary data provided and in consistence with each other.
In order to prevent the loss of time during control of goods and in order to provide more effective customs control, the method of inspection of goods is selectively and automatically determined by BILGE software at the time the declaration is approved by the customs personnel. This selection is based on the criteria defined within the system through risk analysis.
The four methods of inspection are:
* Red (physical inspection)
* Yellow (inspection of documents)
* Blue (post-release control)
* Green (release of goods without control)
In Turkey’s computerised customs system, the traders can make their declarations through kiosks which are provided within the customs directorate buildings and from their offices through EDI (Electronic Data Interchange) or internet. The number of customs directorates in which EDI System is currently used is 94. As of January 2007, 80% of all customs declarations are submitted using EDI System.
Information from BILGE system is transferred to a data warehouse which serves as an anti-smuggling and valuation data bank. Real-time and more accurate foreign trade statistics can be produced through the data warehouse. Using data warehouse, performance analysis of customs directorates can be made and statistical bulletins can be prepared.
A software called TIR-Transit Tracking has been developed and integrated into BILGE, which enables the tracking of TIR and transit vehicles throughout the country. This system is based on the distribution of information collected as one vehicle crosses the border to other customs directorates.
About the concept of single window, the pilot implementation of the e-Document Project was started in the Customs Directorate of Gemlik and is still continuing.
General Directorates and Departments that will be involved in the implementation of the project:
-DG of Customs
-DG of Customs Enforcement
-DG of Customs Control
-Department of Data Processing and Communication
-Risk Management and Risk Analysis Units (to be established)
The principal role of the Risk Management Unit is planned to be the administration of the risk management system on behalf of The Undersecretariat. The principal role of the Risk Analysis Unit is provide analytical services to their respective Directorates.
LEGISLATIVE FRAMEWORK
1. Introduction:
Legislation relevant to Organizational Structure of DGC:
Decree Law no:485 (and 541) regarding the Organization and Duties of Undersecretariat for Customs (dated 02/07/1993)
Legislation related to the Main Duties and Responsibilities of DGC:
- Decree Law no:485 (and 541) regarding the Organization and Duties of
Undersecretariat for Customs (dated 02/07/1993)
- Customs Law no: 4458 (12/10/1999)
- Customs Regulation
2. Legislation for Organizational Structure
Decree Law no:485 (and 541) regarding the Organization and Duties of Undersecretariat for Customs (dated 02/07/1993):
- Defines the main duties and responsibilities of the Directorate General of Customs.
- DGC is one of the four main bodies of the Undersecretariat of Customs which is under the authority of a State Minister and affiliated with the Prime Ministry.
3. Legislation for Main Duties and Responsibilities:
1. Decree Law No:485 (and 541) regarding the Organization and Duties of Undersecretariat for Customs (dated 02/07/1993):
Main duties and responsibilities of DGC are stated in the 7th article:
a) To execute customs operations related to importation, conducting import regime, exchange and other legislation provisions related to customs,
b) To regulate and implement the process of customs tariff classification and determining value of commodity in accordance with international agreements to which Turkish Customs Administration is a party,
c) To implement and control transit, transhipment, bonded warehouse, temporary admission and exemption procedures,
d) To give permission to establish and operate warehouses and bonded warehouses and control them,
e) To implement export regime provisions related to export and temporary export regimes and returned goods,
f) to conduct customs operations concerning goods delivered by mail,
g) to supervise and implement of customs transactions relevant to border and coastal trade and relations,
h) to conduct the procedure of goods salvaged from the sea,
i) to prepare the analysis methods, regulate the customs laboratory operation,
j) to conduct and supervise the customs transactions in free zone,
k) to conduct the procedure regarding customs brokers and aides,
l) to fulfill the duties given by the Undersecretariat of Customs.
2. Customs Law no: 4458 (12/10/1999):
- defines the customs procedures of goods.
- fully harmonized with EU Community Customs Code with the Customs Union established in January 1st, 1996.
- defines that the Turkish customs territory covers the territory of the Republic of Turkey, including territorial waters, inland waters, and airspace (in other words, the sovereignty area) (Article 2).
- the entry and exits to Turkish Customs territory are performed through customs gates (Article 34).
- goods brought into the customs territory of Turkey shall, from the time of their entry, be subject to customs supervision. They may be subject to control by the customs authority in accordance with the provisions in force (Article 34).
HUMAN RESOURCES
We have a personnel portfolio of:
customs controllers,
customs experts,
customs officers,
data preparation and control operators,
technical personnel.
Number of personnel at HQ: 438
Number of personnel in the Regional Directorates: 4295
TRAINING
The Undersecretariat for Customs has a central Training Department in Ankara.
Training programming and strategy is determined by Training Department, based on the proposals and opinions of central and regional units.
Trainings are given both in Ankara (Training Department) and at Regional Directorates.
Trainings are categorized at two phases:
Pre-service training
In-service training
Pre-service training is only performed in Ankara.
In-service trainings are performed both in Ankara and Regional Directorates.
Pre-service Training Subjects
Customs and Smuggling Legislation
Foreign Trade Legislation
Tariff, Origin, Value
State Organization
Constitutional Law
Penal Law
Ataturk Principles and History of Reforms
Public Officers Law
Turkey EU Relations
In-service Training Subjects
Customs and Smuggling Legislation
Foreign Trade Legislation
Tariff, Origin, Value
Computer Knowledge
Computerized Customs Operations
Risk Analysis
Anti smuggling methods (narcotics, arms and ammunition, nuclear and radioactive materials, cigarettes, fueloil, alcohol, cultural goods, CITES, illegal immigration, etc.)
Public Financial Management and Control
Training of Trainers
Foreign Language: English, French
In 2007 Programming:
Training Department (Ankara)
2307 personnel
Regional Directorates (18 Region)
2266 personnel
Approximately 4000 personnel are trained each year.
Approximately 50 training seminars are arranged each year.
Description of the problem: / The Customs Union with Turkey was completed between Turkey and the EU in accordance with Decision No. 1/95 of the EC–Turkey Association Council as of 01.01.1996.
As a consequence of the Customs Union, customs legislation has been modernised accordingly and the customs tariff (codes, description of goods, chapter, heading and sub-heading) has been harmonised with the Combined Nomenclature of the EU.
The Customs Law No. 4458 (250 articles), along with customs regulations, notifications and circulars have been in force since February 2000. In May 2002, a new customs regulation consisting of 756 articles was issued, which came into force 01.07.2002.
In parallel to the recently changing economical trends, the foreign trade volume has significantly risen throughout the world. The economic trends have diversified not only the economical environment, but also the social life. Accordingly, each organization needed to review its own administrative structure. One of the organizations most affected by this change is the Customs. While the process towards the removal of the trade barriers undermined relative importance of the revenue functions of customs, it brought on the foreground the “protective” role of customs in providing the health and security of national economy, society and the environment. However, the main dilemma is the fact that while the customs administrations are expected to fulfill this protective role effectively, they also face in principle with the necessity of facilitating the goods and passengers movements in international trade. Consequently, the establishment of balance between security and trade facilitation has become a generally accepted concept.
In the context of the international trade environment Customs plays a critical role not only in meeting the goals of the governments but also in ensuring effective controls that secure revenue, compliance with national laws, ensuring security and protection of society. The efficiency and effectiveness of Customs procedures has a significant influence on the economic competitiveness of nations and in the growth of international trade and the development of the global marketplace.
The new trade environment requires traders to supply customs authorities with advance information on goods brought into, or out of, the customs territory of the European Community. This will provide for better risk analysis, but, at the same time, for quicker process and release upon arrival, resulting in a benefit for traders that should be equal to, if not exceed, any cost or disadvantage of providing information earlier than at present.
Turkey’s foreign trade volume has significantly increased, as well, in the last decade. In fact, trade volume boosted in the last year, reaching a total of more than 200 billion dollars, of which 125 billion dollars are imports. Thus, Turkish Customs has to deal with increasing number of customs transactions each year.
The purpose of this project is to contribute to the facilitation of the legal trade while at the same time aiming for more effective and timely customs controls. The Project is based on the fact that increasing work load of customs administrations originating from the increasing trade volume can be dealt with by establishing an effective pre-arrival and pre-departure declaration system.
Alignment of Turkish Customs legislation with that of the EU is mentioned both in the Accession Partnership Document and in the recent Progress Reports. Also, Turkey makes the necessary amendments in the Customs Code and Implementing Provisions in parallel to the amendments in Community Customs Code and its implementing provisions. Therefore, amendments in the Community customs legislation regarding entry summary declaration will be reflected in the customs legislation of Turkey as well.
For this purpose, a draft has been prepared which amends Customs Law No.4458 and is about to be sent to the Parliament for ratification. Article 6 of the draft amends Article 35 of the Customs Law. No.4458 and states that the summary declarations shall be lodged electronically and before the arrival of the goods at Turkish Customs Territory. However, the time limits for the lodging of summary declarations and their format and the contents will be covered in the implementing provisions.
Electronic lodging of pre-arrival and pre-departure declarations covers both legislative and technical issues. Prior to the implementation of electronic pre-arrival declarations, the necessary legislative amendments need to be made and the IT structure designed to meet the requirements. Continuation of the modernisation activities of IT infrastructure of Turkish Customs is also mentioned in the Accession Partnership Document and in the recent Progress Reports.