eu customs twinning project completed: tools developed ... · services and discussed legal...

Support to the State Revenue Committee for Strengthening ofCustoms Control Procedures and Enforcement in the Republic of Armenia

EU Twinning project AM10/ENP-PCA/FI/07 Special edition for closing of the ProjectThis project is funded by

the European Union

This Project is implemented by the Lithuanian - Finnish Consortium of two European Customs administrations.The beneficiary of the Project is the State Revenue Committee of the Republic of Armenia.

The contents of this publication are the sole responsibility of the authors and can in no way be taken to reflect the views of the European Union.

EU Customs Twinning Project Completed: Tools Developed Through the Project Implementation Become Ownership of Armenian Customs

EU Twinning Project has supported Armenian Customs Service to modernise customs legislation, improve customs control, includ-ing post-clearance control, implement international standards into customs business, including risk management and transfer EU best practices through the experience and knowledge of EU Member State partners.

All Project deliverables will be easily accessible for later use by Armenian Customs Service. All developed analysis papers, gap and need analysis reports, correlation tables of customs legislation, road maps and action plans, packages of recommendations, man-uals, user requirements for IT tools, proposals for administrative arrangements, training materials, presentations, etc. become the property of Armenian Customs Service for their further needs and activities.

Armenian Customs staff was equipped with knowledge on European standards in customs business. Arme-nian Customs is ready for the changes for the improvement of co-operation with the European Union.“The most significant result of the Project is the sustainability of its achievements because the activities under this Twinning Project have direct implications in the increased capacity of Armenian Customs Service,” said the BC Project Leader, Artur Afrikyan. “We are going to use the transferred knowledge for the further modern-ization of Armenian Customs Service,” he added.

Twinning project is about administrative co-operation in a specific field. It is not a one-way delivery of technical assistance from a Member State to a beneficiary country and is therefore a bilateral process, in which each partner takes on responsibilities: the beneficiary country commits itself to undertake and fund the reforms, while the Member State accompanies the process during the implementation of the project. A close partnership was demonstrated during the whole period of the implementation. “Two years have passed quickly, but the results accumulated during this time will last much longer. I wish to thank all the par-ticipants of the Project for their excellent cooperation based on the unique experiences we went through together in this complex Project,” EU Partner Project Leader Petras Jakavonis, said.

During the implementation of the Project the importance of cooperation between the Customs Service and its customers was revealed. “We contributed to the facilitation of trade by strengthening Armenian Customs Service,” said Junior Project Leader Pirjo Kotro. “The EU customs experts concluded that it is necessary to endorse and put in action a policy and strategies to turn the Armenian Customs administra-tion into a service authority which facilitates Armenian foreign trade and ensures effective control. This profound change is a precondition for the development of customs control process in general,” she added.

EU customs experts transferred the know-how necessary to achieve the mandatory results to the staff of Armenian Customs Service using their own theoretical and practical experience and expertise. Armenian Customs staff benefited from workshops, coaching sessions, study visits and became able to transfer their knowledge through subsequent trainings to their colleagues. “We could advise, we could assist, we could support - but decisions should be made by you,” said Resident Twinning Advisor Vida Mickienė, at the Steering Committee meeting. “We did not serve fish on a tray – we taught fishing – that was our approach,” she added.

EU customs experts have provided Armenian Customs Service with different packages of tailored recom-mendations and made more than one hundred presentations on the EU customs legislation and practic-es. “The know-how obtained during the Project has been used by drafting and updating customs legis-lation and introducing new systems in customs business,” said RTA counterpart Suren Melik-Israyelyan. “As well, we are considering the possibility of getting further assistance from the EU in order to provide the continuity of the processes started during the Project in the areas of customs activities covered by the Project Components,” he added.



the European Union



Modernization of Armenian customs legislation

Armenian Customs, with the assistance of the EU cus-toms experts, has identified the most urgent needs of the modernization of customs legislation. Afterwards, Armenian customs experts drafted the law on partial amendment of the current Customs Code of the Repub-lic of Armenia. Draft law has been approved by Govern-ment and presented to the Parliament of Armenia.

Training course on EU customs legislation

Draft structure and contents of the training course on EU customs legislation have been prepared and the Customs Training Centre has been provided with all necessary materials in order to further develop and deliver this course. The Annual Customs Training Pro-gramme for 2014 includes a course on EU customs pol-icy and legislation prepared during the Project Activity.

Certificates of origin will be issued by Customs

Assistance in implementation of Action Plan (“road map”) for the development of origin work module in Armenian Customs (readiness to issue and control preferential certificates of origin) has been provided. Armenian Customs staff was equipped by tailor-made Rules of verification of documents of origin, Guidelines on post verification of proof of origin, Rules of issuing certificates of origin and origin-related business pro-cess schemes.

Component Leader Karen Beglaryan and EU customs ex-perts Šarūnas Avižienis and Rimantas Račkauskas discuss

the futur of Armenian customs legisalation

Customs will issue preliminary decisions of goods classification

During one of the Project workshops Rules of issuing preliminary decision on classification of goods (Binding Tariff Information-BTI) were drafted and application of these decisions in the process of customs formalities was discussed. Armenian Customs is planning to intro-duce the BTI system in the nearest future. This system will help operators obtain the correct tariff classifica-tion for the goods they plan to import or export and will reduce time for customs clearance formalities.

Milestones of the Project

May 21, 2012: EUD notifies the effec-tive start of the Project;June 13, 2012: Resident Twinning Ad-visor arrives in Yerevan: the Project implementation period starts;July 7, 2012: SRC Chairman approves the Plan of the Project implementa-tion;July 16, 2012: the Project’s first work-shop starts with the arrival of three Lithuanian customs experts to start analysing customs legislation;September 7, 2012: the Kick-off meet-ing of the Project takes place in Yere-van;September 7, 2012: the first Steer-ing Committee meeting approves the composition of the Steering Commit-tee;September 2012: the first study visit of Armenian customs staff to Lithuanian Customs takes place;2012 summer – 2013 winter: customs experts analyse Armenian customs legislation, risk management system, customs control and IT systems and develop the recommendations for each area of the customs activities as well as action plans/road maps – for the improvements;November 2012: two study visits to Lithuanian Customs on administrative arrangements for implementation of customs legislation and IT issues take place;November 2012: EU experts visit Ar-menian Customs Posts (border cross-ing, airport and an inland clearance control posts) to analyse the customs control process and compare it against EU Customs practice;January - March 2013: Armenian ex-perts with the assistance of EU experts prepare Customs Valuation Manual and Manual on Classification of goods and post them on the web-site; March 12, 2013: the SRC approves the Action Plan on Risk Management Development in Armenian Customs (elaborated during Project workshops) (Order No.97; 12-03-2013), the imple-mentation of Action Plan has started; April 2013: Results of analysis of Arme-nian customs legislation are presented in the Overall Report on Comparative Analysis of customs legislation applica-ble in the European Union and in the Republic of Armenia; May 21, 2013: mid-year event – sem-inar “Modernization of Armenian customs legislation” – takes place in Erebuny Conference hall with the par-ticipation of representatives from the EUD, SRC, MoF, MoE, business societ-ies and other donor projects;

Armenian Customs Training Centre hosted Project’s workshops

Separate classroom for the Twinning Project workshops was provided at the Armenian Customs Training Centre.

In the centre - Mira Kalantar, Deputy Director of Armenian Customs Training Centre and Halina Černiauskienė, Head of

Lithuanian Customs Training Centre

Sharing best practices in EuropeThe EU funded Customs Twinning Project has orga-nized seven study visits to the Lithuanian and Finnish Customs for altogether 23 customs officials from Ar-menian Customs and one official from MoF. The par-ticipants met with the representatives of EU Customs Services and discussed legal framework, risk manage-ment, the improvement of the IT tools, post-clearance audit and other customs activities. The study visits gave an opportunity to Armenian cus-toms officials to see examples of good practice and to better understand how the relevant systems in the partner countries are functioning. These study visits significantly contributed to expanding and upgrading their professional competences in customs business relevant fields and the obtained knowledge were in-strumental in formulation of national customs policy standards.

Twinning Project assisted to step towards modern IT environment

Keeping in mind that the process of modernization of Armenian customs legislation requires modernization of Customs IT systems, the IT “Road Map” to support the modernization of Armenian customs legislation has been prepared.EU customs IT experts provided Armenian Customs IT staff with User Requirements for Extensions of the Armenian Customs Information System and Specifi-cation of technical infrastructure (hardware) needed for the implementation of these new functional re-quirements. Armenian Customs prepared Terms of Reference for the procurement of appropriate software for the de-velopment of TWM (Armenian Customs IT system) by using the above mentioned documents.

Component Leader Tigran Tigranyan, his subordinate Gayane Nalbandyan and EU customs IT experts Tautvydas Banelis and

Algirdas Everlingas after consultations on the procurement documentation



the European Union



Milestones of the ProjectMay 2013: Coaching and mentoring in rele-vant aspects of risk management in Armenian Customs takes place, assistance in the devel-opment and management of risk profiles and consultations on risk profiling is provided;July 2013: the RA ratifies the Protocol of amendment to the International Convention on the Simplification and Harmonization of Customs Procedures (Kyoto Convention) and Armenian Customs is provided with the Report on the compatibility of customs leg-islation applicable in the RA with standards of the General Annex of the revised Kyoto Convention made by EU experts;August 2013: EU experts prepare the IT “Road Map” to support the modernization of Armenian customs legislation; August-September 2013: two study visits to Lithuanian and Finnish Customs take place to view how the management of post-clearance functions are carried out;September 2013: EU experts prepare the Functional requirements including User Re-quirements for Extensions of the Armenian Customs Information System; September 2013: EU experts prepare the Specification of technical infrastructure (hardware) needed for the implementation of new functional requirements laid down in User Requirements for Extensions of the Ar-menian Customs Information System;October 2013: Coaching and mentoring in relevant aspects of Post Clearance control and Audit (PCC/PCA) are provided covering all phases of post-clearance control and audit on the basis of the WCO guidelines and EU Customs Blueprints; November 7, 2013: RA Government ap-proves 2013-2014 Plan of Customs Adminis-tration Strategy by the Government of the RA (Decision No 4616). The Strategy includes a lot of Twinning Project related areas;November 15, 2013: the SRC approves the Action Plan on Improvement of Post Clear-ance Control and Audit in Armenian Customs (No.503-A);December 2013: study visit to Finnish Cus-toms takes place to view AEO system in EU Member State;March 13, 2014: the SRC approves the list of risk criteria for persons carrying goods and the rules of their risk assessment’ (Order No 110-A); now post-clearance control and audit will be carried out according to 54 criteria and implementing rules;April 9, 2014: the SRC provides the RA Gov-ernment with the draft law on amendments of the current RA Customs Code which in-cludes provisions, related with the Project activities;

Two phases of customs control – clearance phase and post-clearance phase: towards a

proper balanceThe Customs Twinning Project elaborated an Ac-tion Plan for the Improvement of Customs Control Procedures in Armenian Customs. Measures and activities of this plan are included into Customs Administration Strategy Program for 2013-2014 and into SRC Annual Plan. Such an approach demonstrates Armenian Customs intention to im-plement the recommendations. Some of the measures of the Action Plan need legislative changes. Therefore, Armenian Customs has included some articles in the draft law on par-tial amendment of the current Customs Code of the Republic of Armenia so that later, when the law comes into force, these measures are imple-mented.

Component Leader Gevorg Saghoyan and EU customs experts Genovaitė Linkevičiūtė and Antanas

Gedgaudas discuss the implementation of the Action Plan

Finnish experts Sari Lempiainen and Paivi Maunuk-sela-Malinen

Improvement of relations with traders – Armenia introducing the system of

Authorized Economic Operators (AEO)Best practice transfer of experience and knowl-edge from EU Member State – Finnish Customs – has been carried out in all aspects of the im-provement of relations with traders and simpli-fications of customs procedures. Recommen-dations for increasing importers’, exporters’ and representative trade bodies’ involvement in de-veloping new simplified customs control proce-dures in Armenian Customs have been provided. The “Road Map” for the introduction of the AEO system was elaborated during the Project work-shop. Armenian Customs will continue the activi-ties towards the introduction of the AEO concept both on the level of legal and secondary legisla-tive acts and on the level of enforcing these acts.

Post clearance auditors discuss the process of chang-es in the performance of post-clearance control

The Action Plan on Improvement of Post Clear-ance Control and Audit in Armenian Customs was approved by the SRC Chairman on 15 November 2013 (No.503-A). Coaching and mentoring in rel-evant aspects of Post Clearance control and Audit (PCC/PCA) were provided covering all phases of post-clearance control and audit on the basis of the WCO guidelines and EU Customs Blueprints. The Order on the execution of audit-based Post Clearance Controls and the List of Risk Indicators of Economic Operators and the Rules of their As-sessment have been drafted by EU and Armenian customs experts. All necessary conditions are available in Armenian Customs to start periodic audit planning and audit-based post clearance control. According to the SRC staff, the next step will be to establish an effective system for the se-lection of operators to be audited.

Customs control based on risk management

Risk management in the modern Customs Ad-ministration is crucial for carrying out customs control. Armenian Customs risk managers con-tinue the implementation of the Action Plan on Risk Management Development in Armenian Customs elaborated during Project workshops and approved by the SRC Chairman. The Twinning Project supports the implementation of this Ac-tion Plan. Coaching as the “best practice” for pro-ducing a deep change in knowledge and practice, provided in the frame of the Project, developed self-awareness of Armenian risk managers and opened a broader perspective for them.

Head of Risk Management Division Rafael Grigoryan and EU risk manager Ilona Rožėnienė decided to con-

tinue cooperation in the area of risk management that gives added value to both Customs Services.

May 20, 2014: the RA National Assembly adopts the Law on Customs Code amend-ments;

May 2013 and 2014: the project participates in Europe Day in Yerevan.



the European Union



PROJECT STATISTICSAs the implementation of the project has taken 2 years it is almost impossible to present all the results, challenges and victories which were achieved together during the “life” of the Project. Let’s acquaint ourselves with the Project using the language of numbers. Can you feel the strong Project team spirit behind these statistics?

1- This is the first EU Twinning Project for Ar-menian Customs and Lithuanian Customs as Twinning Project Leader.

2 - The number of EU Member States which provided support to the State Revenue Committee of the Republic of Armenia. The Twinning Project is implemented by a Lithu-anian - Finnish Consortium of two European Customs administrations (The Customs De-partment under the Ministry of Finance of the Republic of Lithuania and the National Board of Customs of the Republic of Finland) and is financed by the European Union with a budget of approximately 1 Million EURO.

3 - The number of countries who joined to-gether to achieve the results of the EU Twin-ning Project. Armenia implemented the EU Twinning Project together with partners from Lithuania and Finland.

5- The number of mandatory results of the Project. They are:

• Improved Legal Framework• Strengthened Customs Control • Improved relations with traders and simpli-

fication of Customs Control Procedures• Strengthened Risk Management• Improved Post Clearance Control and Audit

6 - The number of areas of customs business covered by the Project. The Project covered customs legislation, customs control, rela-tions with business society, improvement of customs IT tools, risk management and post clearance control and audit.

7 – The number of study visits to Lithuanian and Finnish Customs to view the implemen-tation of customs legislation, customs control procedures, risk management, IT systems, post-clearance audit and AEO system.

8 – The number of the Steering Committee meetings organized and the number of quar-terly reports prepared.

13- The number of Action Plans and ‘’Road Maps’’ prepared during the Project. EU STEs have drafted 3 Action Plans (customs control, risk management and PCC&A) and developed 10 “road maps” for the medium and long term activities of the SRC related to the moderniza-tion of Armenian Customs.

23- The number of Armenian colleagues who had the chance to visit Lithuania and Finland during the Project study visits.

24 - The number of months Ms Vida Mickienė - Resident Twinning Advisor lived and worked on the Project in Yerevan.

42 – The number of participants in the Project, other than from the SRC.

45– The number of EU MS STE missions.

47 – The number of EU MS customs experts who provided support to the Armenian col-leagues.

90 – The length in pages of the most import-ant Project deliverable – consolidated version of User Requirements Specification for Exten-sions of the Armenian Customs Information System prepared by the Lithuanian customs IT experts’ team headed by the Key expert Taut-vydas Banelis.

100 - EU MS customs experts have provided Armenian Customs with different packages of recommendations and made more than one hundred presentations on the EU customs leg-islation and practices.

166 - The length in pages of the Overall report on comparative analysis of customs legislation applicable in the European Union and in the Republic of Armenia (including summary of correlation tables) prepared by the team of STE of Component No 1 guided by Key expert Šarūnas Avižienis.

222 – The number of the SRC participants in the Project.

643 – The number of EU MS customs experts’ working days in Yerevan.

For more information on Project: www.customs.am

Study visit on AEO issues at Finnish Customs

Armenian study visitors at Kybartai – Lithuanian/Russian border

Project‘s translator Lilit Drampyan and RTA assis-tant Margarit Bejanyan at the Europe Day event

in Yerevan

eu customs twinning project completed: tools developed ... · services and discussed legal...

Documents