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1
TWINNING PROJECT FICHE
LEBANESE CUSTOMS ADMINISTRATION
MODERNIZED CLEARANCE PROCESS
Glossary of Terms
AEO Authorized Economic Operators
ASYCUDA Automated System for Customs Data
ATS Advanced training Skills
BC Beneficiary Country
CB Capacity Building
CIDA Canadian International Development Agency
CVA Customs Valuation
DTI Data Transfer Interchange
ENP European Neighborhood Policy
EU European Union
GDP Gross Domestic Product
GoL Government of Lebanon
ICT Information and Communication technology
IRI Industrial research Institute
IT Information technology
KPI Key Performance Indicators
LCA Lebanese Customs Administration
LITE Lebanon International Trade Exchange
MEDSTAT Regional Programme of Statistics in the Mediterranean Region
MoET Ministry of Economy and Trade
MS Member State
2
NAJM Arabic acronym for Customs Information System
NIP National Indicative plan
NOOR NAJM Online Operation
OECD Organization for Economic Co-operation and Development
PAO Project Administration Office
PL Project Leader
ROO Rules of Origin
RTA Resident Twinning Advisor
SA Advisory Services
SME Small and Medium Enterprises
STR Support to Reforms
UNCITRAL United Nations Commission On International Trade Law
UNCTAD United Nations Conference on Trade and Development
WCO SAFE
Framework
World Customs Organization Standards to Secure and Facilitate Global Trade
Framework
WTO World Trade Organization
3
1. Basic Information
1.1 Programme: Support to Reforms III
1.2 Twinning Number: LB12/ENP-AP/FI/08
1.3 Title: Modernized Clearance Process
1.4 Sector: Finance
1.5 Beneficiary country: The Republic of Lebanon
2. Objectives
2.1 Overall Objective
To provide better conditions for economic growth through trade facilitation and expedite the
process towards WTO accession by further harmonising and simplifying customs legislation and
procedures in accordance with WTO rules and the Palermo recommendations, including
computerization with further upgrading and rolling out of the NAJM and NOOR systems to the
whole customs territory. The implementation of the NAJM (Arabic acronym for Customs
Information System) since 1997 produced significant improvements, and in particular has ensured
compliance with the Lebanese Law and regulation, reduced cost and time of clearance procedures,
and provided accurate and timely international trade statistics. NAJM, which is based on the
UNCTAD ASYCUDA++ system, was funded by the Lebanese Government, World Bank and the EU.
The NAJM system has been extended by NOOR system - which provides the trader or customs
broker with remote online access to NAJM in order to enter and track Customs declarations
improved Data Transfer Interchange –(DTI-) – and Lebanon International Trade Exchange (LITE)
system - which provides web access to public Customs information.
2.3 Project purpose
To streamline customs procedures and processes to achieve a simple and paperless environment
for customs and trade and enhance the Lebanese Customs Administration’s institutional capacity
for trade facilitation and effective customs control through
1- Looking at trade facilitation mechanisms and improving procedures and controls governing
the movement of goods so as to reduce associated cost burdens and maximize efficiency
while safeguarding legitimate regulatory objectives. Business costs may be a direct function
of collecting information and submitting declarations or an indirect consequence of border
checks in the form of delays and associated time penalties, forgone business opportunities
and reduced competitiveness. The project focuses on analyzing, streamlining and
integrating the current business processes relevant to customs clearing inside and outside
the customs administration via automating the manifest, transit, travelers halls, warehouse
4
and free zone in addition to simplifying the process of import and export declarations by
restructuring the inspection, cars’ importation, physical exit of goods via the Customs gates
and by implementing E-Government (starting by linking the Customs system with the
Industrial Research Institute and the Ministry of Economy and Trade), E-Payment ( to allow
24/7 payment, reduce physical movement to cashier, avoid counterfeited money, increase
transparency and interaction check, and improve cash management facilitation), paperless,
post clearance (auditing, look for smuggling, risk management, archive management),
single window ( through a centralized single platform) and legislation review.
2- Establishing an automated and integrated clearance process on a single platform that is
shared by all stakeholders in all international trade cycle
3- Building capacity of customs and sister administrations to operate and manage the new
integrated system
2.4 Contribution to National Development Plan / Cooperation agreement / Association
Agreement /Action Plan
The Modernized Customs Clearance process project will support a priority result defined by the
government in its Reform National plan, as presented at the Paris III conference in January 2007
and the Joint EU-Lebanon ENP Action Plan1. This document stresses the need to increase Lebanon’s
role in the free trade system, speed up the negotiations regarding Lebanon’s accession to the
World Trade Organization (WTO) and strengthen the capacity of the Lebanese administration on
international trade issues.
EU legislation will serve as a reference all along the entire Twinning project. The twinning fiche
complies with the Action Plan and EU expectations towards the Lebanese customs. In addition, it is
in line with points (a) and (b) of Article 56.2 of the Association Agreement – ‘Customs Co-
operation’:
“Cooperation will focus in particular on:
(a)the simplification of controls and procedures concerning the customs clearance of goods,
(b) the possibility of interconnection between the transit systems of the Community and of
Lebanon,
(c)the exchange of information among experts and vocational training;
(d) technical assistance where appropriate.”
The proposed project will be a logical extension of what has been accomplished, hence “further
harmonizing and simplifying customs legislation and procedures in accordance with WTO rules and
the Palermo recommendations by strengthening co-operation between customs and other agencies
to develop an Integrated Border Management Strategy2 . This will contribute to the European
Neighborhood and Partnership instrument, NIP’s 2011-2013 expected results which cite the need to
further “develop and implement trade facilitation strategies.”
1 EU- Lebanon Action Plan- 2007-2010
2 ENP, EU-Lebanon Action Plan
5
3. Description
3.1 Background and justification
Since it was launched in 1999, Lebanon's bid for World Trade Organisation (WTO) membership has
served as an underlying pillar for Lebanon's international trade policies, and as a part of the
broader goals of the Paris III Fiscal and its Economic Reform Programme in general. Lebanon's
WTO accession and the required reform efforts are considered by the Government of Lebanon
(GoL) as instrumental to boosting competitiveness and reducing the cost of doing business in the
country. Accession to WTO entails a comprehensive review of a wide range of legal and technical
matters. Having said that, new laws and amendments to existing legislation are needed in order to
create mechanisms aiming mainly to:
a) Increase predictability and certainty for exports and imports;
b) Promote Lebanese exports of goods and services;
c) Ensure protection for intellectual property rights; and
d) Take steps against unfair trade practices.
While the current automated customs procedures (NAJM/ ASYCUDA) provide a quantum leap over
the earlier bureaucratic processes, there has not been a significant reduction in clearance delays
and costs over the past 13 years.
According to the World Bank Doing Business report 2011, which is a comparative analysis on the
ease of doing business over 183 countries, Lebanon ranks 95 in terms of Trading Across Borders,
as opposed to much better figures such as Saudi Arabia standing at 18, Egypt 21, Tunisia 30 and
Bahrain 33.
In addition, it takes 26 days to export and 35 days to import to Lebanon, as opposed to only 10.9
days and 11.4 days in the OECD countries, and 20.4 days and 24.2 days in the Middle East and
North Africa.
These bottlenecks are highlighted by the fact that there is still poor sequencing and coordination
between Lebanese customs activities and other permitting government agencies, such as the
Industrial research Institute, Ministry of Economy and Trade, Ministry of Agriculture, Ministry of
Health, etc. In addition, there are still non automated and paper based phases which cannot be
tracked nor monitored (and which crucially includes the release of cargo by the port authority).
Apart from the loss of transparency and associated opportunities for malpractice, the clearance
process is not optimal in terms of port logistics movement. Inspection is positioned in mid process
and precedes final payment and release. For example in the case of Red lane declarations cargo is
physically moved from the storage to the inspection area and then returned to storage awaiting
payment by declarant/trader. This means additional cost and time in clearance.
All these hindering factors mean additional cost and time in the clearance process.
Accordingly, and knowing that the value of imports and exports represents 60 % of GDP and
generates 40% of GoL's tax revenue, this Twinning project will strive to achieve a better
streamlining, sequencing and integration of Lebanese customs and non customs procedures, so as
to achieve a reduction of clearance delays and costs.
The Twinning project’s main task will consist of establishing an automated clearance process
platform common for all parties that will allow for collaboration of distinct automated sub-systems
in different organizations via secure messaging interfaces while retaining the confidentiality of each
party. In other words, it will build on EU best experience and expertise to achieve better
sequencing, streamlining and integration of Lebanese customs and non-customs procedures, in
6
particular governmental regulatory agencies so as to achieve a significant reduction of clearance
delays and cost.
3.2 Linked activities
In the field of Customs Automation, as stated above, the implementation of the NAJM (Arabic
acronym for Customs Information System) since 1997 produced significant improvements, and in
particular has ensured compliance with Lebanese Law and regulation, reduced cost and time of
clearance procedures, and provided accurate and timely international trade statistics.
In addition, a new customs law was enacted by the Council of Ministers and which went into effect
on April 23, 2001. It introduced significant improvements to the old Customs Law. The new law is
largely based on best and modern international practices and substantially conforms to the WTO
requirements, specifically the WTO Agreement on Customs Valuation (CVA), the Agreement on
Rules of Origin (ROO), and the main principles of the General Agreement on Tariffs and Trade
(GATT 1994).
Finally, in 2006, the Ministry of Finance and Customs started a two year cooperation program with
UNCTAD for implementing ASYCUDAWORLD, the latest version of the ASYCUDA software. This
version uses state-of-art technology for automating customs clearance operations.
In order to ensure the sustainability of the modernized customs clearance process and to turn
Customs Administration into one of the most modern administrations of Lebanon, this Twinning
project would be a logical extension of the implementation of the automated customs clearance
system in Lebanon enabling technical and operational sustainability, building on the lessons learned
and best practices in advanced countries, and disseminating the acquired expertise regionally
In addition, this Twinning project consolidates a series of EU-funded support to reforms actions
under Support to Reforms STR1 and STR2. It will build upon the achievements and structures
reinforced by 2013, the EURO 16 million “Integrated Support to Small and Medium Enterprise” and
the EURO 14 million “Strengthening Quality Management, Capabilities and Infrastructures”, which
tackles trade, investment and production aspects at micro-economic level.
Complimentary Project: e-Payment gateway
The Twinning project will also benefit from an EU funded project for introduction of E-payment
services that is currently being implemented at Ministry of Finance ((the software and hardware of
this project were delivered and installed and we will go live in the near future)
Currently taxes are collected using traditional ways such as payments through the bank or Ministry
of Finance Cashiers.
With the technological evolutions and the widespread of the Internet throughout the country, these
payments are expected to be online.
By implementing the E-Payment Gateway, local authorities can not only deliver better service for
the residents, but can also make significant efficiency gains. These include staff time savings,
financial savings (for example from lower transaction charges), and more streamlined and error-
free business processes.
The E-Payment Gateway has three main objectives:
1. Creating a central secured governmental payment gateway by developing a central
electronic payment hub, controlled by the ministry of finance, and connecting government
entities (customs, cadastre, taxes, mecanique, ministry of justice and any other
governmental entity) to the Lebanese banks.
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2. Achieving cost savings for stakeholders by streamlining payments through an electronic
infrastructure, reducing elapsed time and effort spent on transactions.
3. Establishing operational transparency by defining a set of clear and transparent operational
and financial rules under standardized and automated E-Payment mechanisms.
The E-Payment Gateway should play three primary roles:
- The first role is that of a payment processor where the gateway facilitates the electronic
payment between the payee (governmental entity) and the payer (the resident). The
payment is issued by residents through their bank’s internet banking systems. The banks
insure the completion of the transactions.
- The second role is that of a payment consolidator where the hub should route all payments
to the concerned governmental entity through the ministry of finance.
- The third role is that of a payment monitor where reports and monitoring tools are provided
to the Ministry of Finance to trace the transactions.
The e-Payment project has been delivered on September 6th, 2011.Customs staff played a critical
role in aligning its concept with NAJM 2.0
In preparatory work for e-Payment at Customs, LCA received administrative and legislative
assistance (listed below) from CIDA (Canadian International Development Agency) in the form of a
short-term expert 6 weeks. The objective of this support is to map out current and existing duty
payment procedures at branch and HQ level with the aim of identifying administrative, process and
legislative changes required for roll-out of e-payment. The study titled “Revenue collection
disbursement and reconciliation processes- Transformations for an e-payment environment » was
shared with LCA relevant staff at end of the mission.
8
The following on-going projects support and compliment project objectives:
Reform
Programme
Project Title Donor Budget Project Duration
Automated
system for
Customs data -
ASYCUDAWORLD
Facilitate and
accelerate
trade
UNCTAD
(Government)
~USD
450,000
2011-2013
Enhancement of
security and
safety at the
borders and
facilitation of
trade
National
Radioprotection
Infrastructure
related to
Lebanese
Trade and
Border Control
EU EUR
2,100,000
18 months (2008-
2010- Extended until
March 2012)
Provide advice on
implementation
of e-payment of
customs duties
via commercial
banks. Review
legislation and
practice of e-
payment
processes.
Provide advice on
audit and
financial tracking
in an electronic
environment.
Financial
Management
and
Accountability
CIDA USD
80,000
2011
It is worth noting that all imports and exports should be subject to global radioprotection control
and regulations in order to establish confidence in trade and increase public health and safety.
Accordingly, the responsibility to combat illicit trafficking and the inadvertent movement of
radioactive material has been tackled in Lebanon.
Lebanese Customs was the primary Beneficiary of this € 2.1 Million project of "strengthening
National Infrastructure Related to Lebanese Trade and Border control project ". Following the
decision of Lebanese Customs to improve its overall monitoring and detection capabilities by
establishing radiation detection infrastructure at Lebanon’s borders, the International Atomic
Energy Agency (IAEA) provided training to Lebanese Customs and helped install EU-funded
radiation detection equipment at one border crossing. This project was extended untill March 2012
and currently it is successfully being implemented and running on all the Customs border offices
except in the Abboudieh office because it is currently being relocated (However, , it is expected to
be implemented in Abboudieh office in the coming month).
9
In addition, it should be noted that Customs also played an important role in the following projects
which have cross-cutting objectives:
1. World Customs Organization, January 2009. A diagnostic review of Customs Administration in
Lebanon with recommendations for short, medium and long term.
2. World Bank - International Finance Corporation - Doing Business Report for Lebanon - Latest
workshop June 2010
3. World Customs Organization - e Learning for Customs Personnel – Ongoing project since 2002
4. EU MEDSTAT project - Ongoing project since 2002 - Harmonization and standardization of
international trade statistics and improvement of quality of trade data
3.3 Results
The Modernized Customs Clearance project is expected to increase Lebanon's competitiveness in
international trade and enhance integration with global trade systems. The new proposed clearance
process is expected to reduce the processing time and cost of international trade transactions.
The project will improve the ranking of trading across borders of the Doing Business report,
currently standing at 95.
Results Description Monitorable Indicators
1 Facilitation of
Compliant
Trade
LCA should endeavor to
minimize obstacles faced
by compliant trade
operators and minimize
the cost and time of
clearance
1.1 Decrease in time for trade community for
completion of trade documentation 30%
1.2 Decrease in time for relevant government
authorities to process clearance operations 25%
1.3 Decrease in time for LCA to process clearance
operations 30%
1.4 Decrease in transaction cost for trade operators
25%
2 Enforcement
of relevant
laws and duty
collection
LCA must ensure
intelligent compliance
with Customs Law and
regulations, other
national mandated
governmental laws and
regulations, obligations
to international
agreements and
protocols. LCA within its
scope of operations must
ensure safety and
security of community
against threats such as
smuggling of drugs,
firearms, human
2.1 Increase in duty collections
2.2 Decrease in non-compliant operations 20%
10
trafficking, terrorism and
money laundering
Regarding the WCO SAFE Framework of Standards and in accordance with the Lebanese Customs
capacity and applicable laws, the following output will be achieved by the end of the project,:
- Clearance cost of Import/Export cargo: Less than 30%
- Free zone operations: Less than one day
- Warehouse operations: Few hours
- Transit operations: Less than one day
- Percent of revenue due to enforcement: more than 15 percent
- Non-compliant operations: Less than 5 percent
- Support to SME in Export operations: Increase in share of SME relative to overall exports
Annual 15%
In ensuring the delivery of the above mentioned results, this Twinning Fiche will focus on six
components:
A. Process re-engineering and electronic Customs review
Based on best practices, a suitable Information and Communication Technology system is
developed and adopted.
The implementation of the project will lead to the development of Customs procedures in addition
to a prototype of an optimized Single Window topography across all governmental agencies and
Customs Administration so as to increase efficiency through time and cost savings for traders in
their dealings with various government authorities for obtaining the relevant clearance release. The
immediate exchange of data between customs and these other authorities and agencies will also
allow for better and quicker validation of all of the data submitted by traders. In addition, it will
enable the following results:
Lower barriers to trade, which makes it possible for traders to focus on strategic and
commercial considerations as opposed to regulatory regulations. The lower barriers should
provide more opportunities specifically to SME’s involved in trade related activities. The
project aims in enabling Lebanese SME to compete in global markets by lowering their
regulatory and administrative costs and reducing “time to market” production span
Easier access to information through better co-ordination between all involved authorities
leading to time savings when looking for information and increased compliance due to better
understanding
Improved efficiency when submitting information through exchange of data between
authorities involved allowing economic operators to give the same information only once to
these authorities – faster processing, more rapid clearance, greater accuracy of data and
increased compliance; From this improved efficiency will benefit all international trade cycle
Fewer delays, less uncertainty, and more targeted inspections through better coordination
between authorities involved in international trade cycle
11
Combined with the development of simpler, standardized and harmonized information, the effective
application of an ICT can help maximize data flows, resulting in faster, easier and lower cost
international trading. The proposed ICT backbone will allow for the trader to submit electronic trade
declarations to the various controlling authorities for processing and approval in a single
application. In addition, duties and taxes will be paid electronically via the related bank resulting
from the applied ICT infrastructure. Governmental and non governmental agencies (IRI, MoET…etc)
will also benefit from processing and tracking information faster.
Based on re-engineered procedures, a system will be developed by the Customs Administration.
Prior to implementation, and in order to guarantee that the system meets the design specifications,
the system will undergo testing and validation following a detailed testing plan and based on real-
case scenarios.
B. Regulatory framework for international trade environment
A new Customs law was introduced in 2001 which included provisions for a modernized and
business-friendly operational environment. A core objective of this track “Regulatory Framework” is
to build and on this new law and to provide a comprehensive and modern legal framework as a
foundation upon which an effective Customs and trade facilitation regime is built. This track will
include a thorough review and modernization of the Customs (and other border agency) laws,
regulations, administrative guidelines and standard operating procedures so they fully support the
new requirements, procedures, systems, and controls. This legal framework benchmarking will be
based on internationally accepted standards and best practices as set out in the Revised Kyoto
Convention and allow for the implementation of related international instruments, agreements, and
standards.
The Regulatory framework track will establish the responsibilities and authorities of the Customs
service to administer and enforce Customs laws, develop supportive administrative regulations, to
adjudicate and settle cases, and take decisions on Customs administrative matters.
The new regulatory environment would promote transparency and predictability, e.g., timely
dissemination of information, advance rulings, independent audit, appeals processes, which would
provide for modernized Customs systems and procedures supporting establishment of risk-
management, post-clearance audit based controls and adequate automation;
This track would review and provide support for compliance with international commitments, e.g.,
WTO agreements; and simplify customs procedures such as simplified customs declarations and
advance lodgment of declarations. Additionally this track will provide for an environment to allow
for release of goods without all clearance formalities having been completed;
A new regulatory framework would include simplified and special procedures for authorized persons
Authorized Economic Operators as AEO as recommended by World Customs Organization
As emphasized on the outset of this Regulatory Framework track a key output is an environment
which supports the use of modern information technology and communication, including electronic
messaging, paperless declarations, electronic signatures, electronic payments, electronic
government and single window; E-Payment approach will enable a reduction in corruption,
increased transparency and efficiency of operation through increased convenience of payments. E-
Government will enable better transparency, efficiency, improved services, better accessibility of
public services, and more accountability. Finally, a Single Window approach will enable cross-
border traders to submit regulatory documents (customs declarations, applications for
import/export permits, and other supporting documents such as certificates of origin and trading
invoices) at a single location and/or single entity, hence increasing efficiency through time and cost
savings for traders in their dealings with various government authorities, for obtaining the relevant
12
clearance and permit(s) for moving cargoes across borders and though it fosters collaboration with
other Governmental administrations and border agencies involved in international trade.
C. Post- implementation monitoring capabilities
The objective of this track is to provide Customs Management and GoL at large with a methodology
and KPIs to monitor and assess the project process and in particular trade facilitation situation
regularly to determine whether the stakeholders have benefited from the solutions and trade
facilitation measures put in place.
For the private sector, the gains may be measured in terms of reduction in time and costs and
improvement of predictability, such as faster turnover time for goods, lower costs, and customer
satisfaction. This can result in enhanced trade competitiveness, leading to repeat orders and a
higher volume of trade. Some indicators that could be used in assessing the impact on private
sector include:
(i) Cost of processing trade and customs documentation,
(ii) Time taken to get trade documents approved,
(iii) Number of staff needed to process and handle trade documentation and customs,
(iv) Cargo clearance time, and
(v) Amount of stock enterprises have to carry.
For the government, benefits would include better trade compliance, correct revenue yields, and
effective deployment of resources. Relevant indicators include
(i) Number of trade officers involved in processing trade documents,
(ii) Number of enforcement officers as a ratio of trade and cargo volume,
(iii) Rate of traders’ compliance with the documentation requirements,
(iv) Accurate information in documents
D. Capacity building
Custom modernization programs should involve changes in both mindset and technology. Capacity
building programs should accompany procedural changes and target Customs employees.
Resources saved through the implementation of more efficient trade control procedures should be
used to provide technical support and information services to the trading community.
In policy reform Advisory Services (AS) projects the concept of study tours often helps to avoid
floating around, not knowing when or where to land on a “project runway.” so visualization can
help to have greater focus, can inspire, and can help build self confidence.
The Capacity Building program should also focus on internalizing training and knowledge transfer
process to/by LCA, Traditional CB approach has been of bringing international experts for delivering
diverse customs training in unstructured approach to the administration. This approach has proven
its futility.
The objective of this capacity building program is a better targeted curriculum and a customs
administration capable of developing and delivering training on its own with minimal need for
external assistance.
The outcome of Capacity Building component is to provide LCA with:
13
A core group of LCA trainers; trained and practiced in the systematic approach of training. These
trainers will undergo an Advanced Training Skills (ATS) program which will highlight modern
techniques for motivating and engaging both trainers and trainees. These skills include:
Use of Introductory Sessions.
Systematic Approach to Training.
Session Preparation.
Use and practice of Q&A sessions.
Use and practice of Buzz Group sessions or other relevant techniques
Preparation and practice of Individual Presentations.
Use and practice of Syndicate Exercises
Preparation and practice of Co-Trainer Technical Presentations.
Use of Evaluation of Sessions
Use of Feedback in Training
A core Customs Training program composed of around 15 Modules will be developed to/by LCA
core training team in collaboration with domain experts in LCA. These modules will be later on used
by LCA management as criteria for selecting staff for promotions and transfers purposes. The core
modules will be categorized into three groups:
Institutional, Legal and Conventions
Operations
Enforcement, Risk management and Valuation
E. Outreach communication plan
The outcome of this component is for LCA to develop an outreach program with the private sector,
which leads to improved dialogue with traders, as well as to behavioral changes on the part of
customs staff members.
A key factor of success in Customs reform and automation programs is providing the trade
community with a clear understanding of what needs to change, why and what are the advantages.
Regulatory procedures are those that involve interactions with government agencies and other
authorities for traders (or assigned intermediaries) to complete import and export operations in
accordance with applicable laws and regulations. These procedures are intertwined with commercial
and transport procedures. They may include applying for and obtaining an export license, a
sanitary or phytosanitary certificate, a certificate of origin, and other relevant documents before
lodging the customs export declaration. Besides customs clearance procedures, other regulatory
procedures may have to be completed to allow the passage of goods and their means of transport
across borders.
The program will include frequent communication campaigns aimed at the media, traders, and the
general public. These will be delivered in multiple channels such as:
Conferences and workshops
Printed materials such as newsletters introductory flyers, trader guides and clearance
reference materials. The project will utilize the exiting experience and expertise of MOF and
Institute of Finance in publishing their monthly newsletter and may use that newsletter as a
medium for propagating project objectives, publications and training resources.
Videos and documentaries to explain new process and its advantages
14
Enhancement of Customs website specifically the sections which target the trading
Community rights and obligations such as Customs law, tariff and duty, Circulars,
Prohibitions, governmental controls, exemptions, trade agreements, passenger allowable
A Customs Call Center / Hotline to respond to trader queries, complaints, alerts and tips.
The call-center will be manned with customs dedicated staff trained in responding to
traders’ queries. A procedure will be defined for call center staff to collect information (case
ticket) and provide pre-defined info or to escalate to relevant authority. Data collected at
call center will be organized as FAQs, user guides, trouble-shooting scenarios and other user
support material.
F. Support, accompanying and contribution to the supplies procurement
The outcome of this component is to review the ready for tendering technical equipment
specifications which will benefit relevant stakeholders, if needed, included in the process of
modernizing customs procedures in addition to providing Technical Advisory work for the Tender
Evaluation Process and Provisional Acceptance of Supplies.
3.4 Activities
The project intends to provide, through a Twinning project with a customs authority in an EU
Member State operating a modernized clearance process, a program that would be divided into six
main components with the following indicative activities:
A) Process re-engineering and electronic Customs review
B) Regulatory framework for international trade environment
C) Post-implementation monitoring capabilities
D) Capacity building
E) Outreach communication plan
F) Support, accompanying and contribution to the supplies procurement
A. Process re-engineering and electronic Customs review
A.1. Survey of “As Is” business process, gap analysis and re-engineering recommendation
of best options
Results: Mapped business processes & organizational topology
along with gap analysis and a comprehensive re-
engineering recommendation.
Deliverables:
(1)Document/presentation: Review of existing
situation and charting of existing procedures/entities
involved
(2)Document/presentation: Recommendations based
on best practices and suggested scenarios
(3)Document/presentation: Detailed training for the
whole suggested new procedure to be used for training
all the new civil service employees in Customs
administration.
Conditionality:
All deliverables should be approved by Beneficiary
(Developed in English or French, plus an Arabic
translation)
15
A.2. Import/Export simplification and cost reduction
Results: A comprehensive survey of the current import/export
process (declaration acceptance and physical exit of
goods via Customs gates) and suggestion of
enhancements along with best practices based on
similar contexts, either in the region or in type/size
economies.
Deliverables:
(1)Document/presentation: Review of existing
situation and charting of existing procedures/entities
involved
(2)Document/presentation: Recommendations based
on best practices and suggested scenarios
Conditionality:
All deliverables should be approved by Beneficiary
(Developed in English or French, plus an Arabic
translation)
A.3. Free zone analysis and recommendation of best options
Results: A comprehensive survey of the current public and
private free zone procedures and suggestion of
enhancements along with best practices based on
similar contexts, either in the region or in type/size
economies.
Deliverables:
(1)Document/presentation: Review of existing
situation and charting of existing procedures/entities
involved
(2)Document/presentation: Recommendations based
on best practices and suggested scenarios
Conditionality:
All deliverables should be approved by Beneficiary
(Developed in English or French, plus an Arabic
translation)
A.4. Warehouse analysis and recommendation of best options
Results: A comprehensive survey of all type of warehouses
(public, private, specialized, petroleum and industrial)
and suggestion of enhancements along with best
16
practices based on similar contexts, either in the
region or in type/size economies.
Deliverables:
(1)Document/presentation: Review of existing
situation and charting of existing procedures/entities
involved
(2)Document/presentation: Recommendations based
on best practices and suggested scenarios
Conditionality:
All deliverables should be approved by Beneficiary
(Developed in English or French, plus an Arabic
translation)
A.5. Manifest analysis and recommendation of best options
Results: A comprehensive survey of all kind of import and
export manifests (sea, air, land) and suggestion of
enhancements along with best practices based on
similar contexts, either in the region or in type/size
economies.
Deliverables:
(1)Document/presentation: Review of existing
situation and charting of existing procedures/entities
involved
(2)Document/presentation: Recommendations based
on best practices and suggested scenarios
Conditionality:
All deliverables should be approved by Beneficiary
(Developed in English or French, plus an Arabic
translation)
A.6. Transit analysis and recommendation of best options
Results: A comprehensive survey of all kind of transit (local and
international) and suggestion of enhancements along
with best practices based on similar contexts, either in
the region or in type/size economies.
Deliverables:
(1)Document/presentation: Review of existing
situation and charting of existing procedures/entities
involved
(2)Document/presentation: Recommendations based
on best practices and suggested scenarios
Conditionality:
All deliverables should be approved by Beneficiary
(Developed in English or French, plus an Arabic
translation)
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A.7. Travelers’ halls analysis and recommendation of best options
Results: A comprehensive survey of all travelers’ halls and
suggestion of enhancements along with best practices
based on similar contexts, either in the region or in
type/size economies.
Deliverables:
(1)Document/presentation: Review of existing
situation and charting of existing procedures/entities
involved
(2)Document/presentation: Recommendations based
on best practices and suggested scenarios
Conditionality: All deliverables should be approved by Beneficiary
(Developed in English or French, plus an Arabic
translation)
A.8. Inspection analysis and recommendation of best options
Results: A comprehensive survey of all kind of inspections and
suggestion of enhancements along with best practices
based on similar contexts, either in the region or in
type/size economies.
Deliverables:
(1)Document/presentation: Review of existing
situation and charting of existing procedures/entities
involved
(2)Document/presentation: Recommendations based
on best practices and suggested scenarios
Conditionality: All deliverables should be approved by Beneficiary
(Developed in English or French, plus an Arabic
translation)
A.9. cars analysis and recommendation of best options
Results: A comprehensive survey of cars full cycle importation
(i.e. till being registered in the ministry of interior) and
suggestion of enhancements along with best practices
based on similar contexts, either in the region or in
type/size economies.
Deliverables:
(1)Document/presentation: Review of existing
situation and charting of existing procedures/entities
involved
(2)Document/presentation: Recommendations based
on best practices and suggested scenarios
Conditionality: All deliverables should be approved by Beneficiary
(Developed in English or French, plus an Arabic
translation)
A.10. Post clearance analysis and recommendation of best options
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Results: A comprehensive survey of Post clearance (auditing,
look for smuggling, risk management, archive
management) and suggestion of enhancements along
with best practices based on similar contexts, either in
the region or in type/size economies.
Deliverables:
(1)Document/presentation: Review of existing
situation and charting of existing procedures/entities
involved
(2)Document/presentation: Recommendations based
on best practices and suggested scenarios
Conditionality:
All deliverables should be approved by Beneficiary
(Developed in English or French, plus an Arabic
translation)
A.11. Accounting analysis and electronic payment review
Results: A comprehensive survey of the current accounting
procedures (especially the online electronic payment)
and suggestion of enhancements along with best
practices based on similar contexts, either in the
region or in type/size economies.
Deliverables:
(1)Document/presentation: Review of existing
situation and charting of existing procedures/entities
involved
(2)Document/presentation: Recommendations based
on best practices and suggested scenarios
Conditionality:
Results report should be approved by Beneficiary
(Developed in English or French, plus an Arabic
translation)
A.12. Paperless and electronic government analysis and recommendation
Results: A comprehensive survey of paperless and electronic
government (especially governmental controls) and
suggestion of enhancements along with best practices
based on similar contexts, either in the region or in
type/size economies.
Deliverables:
(1)Document/presentation: Review of existing
situation and charting of existing procedures/entities
involved
(2)Document/presentation: Recommendations based
on best practices and suggested scenarios
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Conditionality:
All deliverables should be approved by Beneficiary
(Developed in English or French, plus an Arabic
translation)
A.13. Single window recommendation
Results: Overview of the single window implementation with
best practices based on similar contexts, either in the
region or in type/size economies.
Deliverables:
(1)Document/presentation: Review of existing
situation and charting of existing procedures/entities
involved
(2)Document/presentation: Recommendations based
on best practices and suggested scenarios
Conditionality:
All deliverables should be approved by Beneficiary
(Developed in English or French, plus an Arabic
translation)
A.14. IT analysis and recommendation of best options
Results: A comprehensive survey of all existing IT equipments
and network and suggestion of enhancements along
with best practices based on similar contexts, either in
the region or in type/size economies.
Deliverables:
(1)Document: Review of existing situation
(2)Document: Recommendations based on best
practices and suggested scenarios
Conditionality:
All deliverables should be approved by Beneficiary
(Developed in English or French, plus an Arabic
translation)
B. Regulatory framework for international trade environment
B.1. Survey of current legislation
Results: A comprehensive survey of the current legislative
status.
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Deliverables:
(1)Document/presentation: Review of existing
situation
(2)Document/presentation: to be used for training all
the new civil service employees in Customs
administration.
Conditionality:
All deliverables should be approved by Beneficiary
(Developed in or translated to: English, French and
Arabic)
B.2. Survey of model legislation (UNCITRAL based)
Results: Survey of model legislation developed using UNCITRAL
guidelines for similar contexts
Deliverables:
Document/presentation of preferred options
Conditionality:
All deliverables should be approved by Beneficiary
(Developed in or translated to: English, French and
Arabic)
B.3 Proposed new legislative amendments
C. Post-implementation monitoring capabilities
C.1 Building Metrics and defining KPIs
Results:
Deliverables:
Strategic and operational KPIs developed at different
levels within the organization
(1)Document/presentation: Guidelines for Performance
Management and follow-up
(2)Document/presentation: List of KPIs and
measurement methodologies to be used for trainings
Conditionality: All deliverables should be approved by Beneficiary
(Developed in English or French, plus an Arabic
translation)
Results: Amendments drafted based on proposed Model
legislation
Deliverables: (1)Document/Presentation of new legislative
amendments
(2)Document/presentation: to be used for training all
the new civil service employees in Customs
administration.
Conditionality: All deliverables should be approved by Beneficiary
(Developed in or translated to: English, French and
Arabic)
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C.2 Building consensus (government buy-in)
Results:
Deliverables:
Dissemination of the KPIs and getting government to
buy-in the system and use
(1)Document/presentation: KPI dissemination of
procedures for various levels
(2)Document/presentation: to be used for trainings
Conditionality: All deliverables should be approved by Beneficiary
(Developed in English or French, plus an Arabic
translation)
D. Capacity building (the below fields are indicative and which, during the negotiation of the
Twinning contact, they will be fine tuned together with the Member State administration which will
award the contract and will be grouped as much as possible).
D.1. Import/Export study tour
Participants: The BC Project Leader, BC RTA and 5 Customs
employees working in relevant departments.
Objectives:
Location:
Study tour that minimum covers: declaration
acceptance and gates for import and export
EU Member States customs administrations
Duration:
Conditionality:
4 man/days per expert visit – 1 trip/expert
Visit program should be approved by Beneficiary
D.2. Warehouse study tour
Participants: The BC Project Leader, BC RTA and 5 Customs
employees working in relevant departments.
Objectives:
Location:
Study tour that covers all types of warehouses (public,
private, specialized, petroleum and industrial)
EU Member States customs administrations
Duration:
Conditionality:
5 man/days per expert visit – 1 trip/expert
Visit program should be approved by Beneficiary
D.3. Manifest study tour
Participants: The BC Project Leader, BC RTA and 5 Customs
employees working in relevant departments.
Objectives:
Location:
Study tour that covers all types of manifests (land, sea
and air)
EU Member States customs administrations
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Duration:
Conditionality:
4man/days per expert visit – 1 trip/expert
Visit program should be approved by Beneficiary
D.4. Transit study tour
Participants: The BC Project Leader, BC RTA and 3 Customs
employees working in relevant departments.
Objectives:
Location:
Study tour that covers all types of transit (local and
international)
EU Member States customs administrations
Duration:
Conditionality:
5 man/days per expert visit – 1 trip/expert
Visit program should be approved by Beneficiary
D.5. Travelers’ halls study tour
Participants: The BC Project Leader, BC RTA and 2 Customs
employees working in relevant departments.
Objectives:
Location:
Study tour that covers all types of travelers’ halls
EU Member States customs administrations
Duration:
Conditionality:
3 man/days per expert visit – 1 trip/expert
Visit program should be approved by Beneficiary
D.6. Inspection study tour
Participants: The BC Project Leader, BC RTA and 2 Customs
employees working in relevant departments.
Objectives:
Location:
Study tour that covers all kind of inspections
EU Member States customs administrations
Duration:
Conditionality:
4 man/days per expert visit – 1 trip/expert
Visit program should be approved by Beneficiary
D.7. Post clearance study tour
D.8 Paperless and E-Government study tour
Participants: The BC Project Leader, BC RTA and 2 Customs
employees working in relevant departments.
Objectives:
Location:
Study tour that minimum includes the implementation
of paperless customs in addition to the E-government
approach including governmental controls
EU Member States customs administrations
Participants: The BC Project Leader, BC RTA and 3 Customs
employees working in relevant departments.
Objectives:
Location:
Study tour that minimum covers: auditing and
documentary check, look for smuggling, risk
management and archive management
EU Member States customs administrations
Duration:
Conditionality:
4 man/days per expert visit – 1 trip/expert
Visit program should be approved by Beneficiary
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Duration:
Conditionality:
3 man/days per expert visit – 1 trip/expert
Visit program should be approved by Beneficiary
D.9. Single window study tour
Participants: The BC Project Leader, BC RTA and 2 Customs
employees working in relevant departments.
Objectives:
Location:
Study tour that covers all aspects of Customs single
window
EU Member States customs administrations
Duration:
Conditionality:
4 man/days per expert visit – 1 trip/expert
Visit program should be approved by Beneficiary
D.10. IT systems and call centers study tour
Participants: The BC Project Leader, BC RTA and 2 employees
working in the relevant field.
Objectives:
Location:
Study tour that includes: Server rooms (hardware,
software, security, domain management, …) ,
communication rooms, control rooms, UPS rooms and
call centers
EU Member States customs administrations
Duration:
Conditionality:
3 man/days per expert visit – 1 trip/expert
Visit program should be approved by Beneficiary
D.11. Train the trainers
Results: Training of around 15 courses up to 65 employees (up
to 5 per course) on the design of the core curriculum
and on the delivery of the pilot courses (any training
can occur only after having the beneficiary approval of
its corresponding module deliverables).
Deliverables:
Certificates of completion, course evaluation reports
Conditionality:
Curricula should be approved by Beneficiary
E. Outreach communication plan
E.1. Communication Strategy and Action Plan
Results: Strategy and Action Plan for information dissemination
developed
Deliverables: A communication strategy document
Conditionality: All deliverables should be approved by Beneficiary
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E.2. Website improvement
Results: A Lebanese Customs Administration website further
developed and improved
Deliverables:
(1)Document/presentation: A web site design
(2) A new web site
Conditionality: After completing the components A, B and C of the 3.4
Activities paragraph;
All deliverables should be approved by Beneficiary.
E.3. Call center(s) recommendation
Results: A design for the required call center(s)
Deliverables:
Document/presentation explaining the design and
implementation of call center(s)
Conditionality:
All deliverables should be approved by Beneficiary
E.4. Rebranding
Results: Evaluate current communication tools and material and
propose alternations where needed regarding graphic and
written messages to build capacities within the LCA.
Deliverables: Document/presentation detailing the proposed material(s)
Conditionality: All deliverables should be approved by Beneficiary
E.5. workshops
Results: Organizing and implementation of a workshop
Deliverables:
Document/presentation/flyers/trader guide to acquire
stakeholders a clear understanding of the new
customs procedures and functionalities
Conditionality:
Workshops should be approved by beneficiary
F.1. Support, accompanying and contribution to the supplies procurement
Results: Review of the technical equipment specifications
(included in the process of modernizing customs
procedures) in order to successfully implement all the
suggestions of enhancements resulting from the
twinning fiche studies.
Technical Advisory work for the Tender Evaluation
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3.5 Means / Input from the MS Partner Administration
Project leader, RTA, and Short term experts would have to be identified:
The Project Leader (PL) will manage the project team of selected member state(s) and co-
ordinate the implementation of activities. The project leader will establish and maintain
links between experts from member state and beneficiary state. He/she will ensure the
timely and effective implementation of the project and achievement of results, through
proposed activities. He/she will also be responsible for modifications of the work plan in
accordance with identification of needs in the life time of the project and in this way
ensures that experts input and distribution of their working days will be used in the most
efficient and effective way.
The BC Project Leader will manage a project team at the Lebanese side and will assure that
the decision makers at the Customs level will be informed properly on the implementation
of the project. He/she will ensure close co-operation and overall steering and coordination
of the project.The Resident Twinning Advisor (RTA) must have broad/general knowledge in
all the areas of customs, which will enable him/her to organize interdisciplinary team for
successful implementation of the project. He/she should be an employee of the EU
Customs Administration. The RTA will coordinate the day to day implementation of the
project Twinning project”. The achievements of the project results will be ensured by the
two project leaders from MS and BC.
Process and Provisional Acceptance of Supplies.
Participation as Observer in the Evaluation Committee
and Provisional Acceptance of supplies.
Deliverables: Technical equipment specifications reviewed
Technical Report of the Evaluation Process to the
Evaluation Committee
Technical report on the provisional acceptance of the
goods.
Conditionality: Specifications should be approved by Beneficiary
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3.5.1 Profile of the Project Leader
Criteria for Assessment / Selection of the Project Leader
Education
- Minimum Bachelors Degree in Business Administration or
Economics, or other related areas relevant to this assignment
- Preferably Advanced University (Master’s Degree or equivalent) in
relevant discipline- business studies, Business Administration or
Management
Specific
Professional
Experience
- Minimum of 15 years of professional experience in a senior
management position in a customs administration in a Member
State
- Must have a broad knowledge of all components of the project
and good leadership skills.
- Sound knowledge of EU legislation and policies in relation to
customs control procedures
- Excellent knowledge of all processes in the area of customs
legislation and strengthening the administrative capacity of the
customs administration;
- High-ranking official with ability to call on short term experts in
support of the efficient implementation of the project;
- Overall understanding of the problems and solutions in the
sector;
- Capable of unblocking any problems at highest level;
International
Experience /
exposure
- Previous experience in management & international co-operation
will be an asset
Languages - Proficient in written & spoken English (French is a plus)
Computer Skills - Familiar with the use of Microsoft Office applications and Microsoft
Office Project
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3.5.2 Profile of the RTA
Criteria for Assessment / Selection of the RTA
Education
- Minimum Bachelors Degree in Business Administration or
Economics, or other related areas relevant to this assignment
- Preferably Advanced University (Master’s Degree or equivalent) in
relevant discipline- business studies, Business Administration or
Management
Specific
Professional
Experience
- Minimum of 10 years professional experience in the field of
customs legislation and control procedures applied to the
control of imports and exports and the enforcement of relevant
customs legislation in a MS administration
- Must be a Civil servant or equivalent and has held senior
position in a customs administration.
- Ability to manage teams of experts and co-ordinate complex
and politically sensitive activities
- Ability to coordinate and organize the project activities, monitor
the delivery of the outputs according to the agreed timetable
and ensure the proper quality of the output.
- Ability to identify and liaise effectively with international and
national institutional stakeholders
- Full working knowledge of Modernized Customs standards and
legislation, with an excellent understanding of concept of Single
Window and other relevant issues
- Ability to manage change or customs reform processes
- Ability to supervise and co-ordinate all technical aspects of
project
- Excellent presentation, communication, reporting and drafting
skills
International
Experience /
exposure
- Previous experience in management & international co-operation
will be an asset
- Previous experience in delivering technical assistance in the
MENA region would be considered an advantage
-
Languages - Proficient in written & spoken English ( French is a plus)
Computer Skills - Familiar with the use of Microsoft Office applications, Microsoft
Office Project and the overall customs automated Infrastructure
3.5.3 Profile of the short-term experts of each activity
The RTA will be assisted by a number of short term experts identified according to the activities
mentioned in the point 3.4.
The role, profile and duration of the short term experts will be defined during the negotiations of
the work plan in accordance to the activities to be undertaken by both the RTA and the MS project
Leader.
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4. Institutional Framework
The beneficiary of this project will be the Lebanese Customs Administration at the Ministry of
Finance.
The project steering committee will be chaired by the Lebanese Customs and composed of
representatives/members from the Contracting Authority in addition to a representative from the
Head of Delegation with observer status.
5. Budget
The Twinning project budget is € 2,000,000
6. Implementation Arrangements
6.1 Implementing Agency responsible for tendering, contracting and accounting
The Programme Administration Office (PAO) at the Presidency of the Council of Ministers will be in
charge of the coordination of all procurement, administrative and contractual activities in
accordance with the procedures defined in the Practical Guide to contract procedures financed from
the Practical Guide to Contract procedures for EU external actions, with the contact person being:
Mr. Mohamad Chreif
Chief Procurement Officer
Project Administration Office
Presidency of the Council of Ministers
Tallet el Serail – Beirut – Lebanon
P: +961-1-971432 ext. 127
F: +961-1-971428 ext. 123
6.2 Main counterpart in the BC
The Lebanese Customs Administration with the contact person being the BC Project Leader
Mr. Ghassan Hamzah
Director of main customs secretariat
Customs general receiver
4th floor – Arab bank building
Riyad el-Solh square – Beirut - Lebanon
P: +961-1- 972752
The Lebanese Customs Administration with the contact person being the BC Resident Technical
Advisor
29
Mr. Wassim Al-Khawand
Customs Component Manager
Customs Reform Programme
Office of the Minister of Finance
11th floor – Makassed Center
Mar Elias Street – Beirut - Lebanon
P: +961-1- 705020
6.3 Contracts
Expected number of contracts: 1 Twinning Contract
7. Execution Schedule (indicative)
7.1 Launching of the call for proposals March 2012
7.2 Start of project activities December 2012
7.3 Project completion December 2014
7.4 Duration of the execution period 24+3 months March 2015
8. Sustainability
The assistance required with this Twinning Fiche is meant to have a long term effect that will shape
the operations of the customs administrations meeting the efficiency and effectiveness criteria.
The competences built up throughout the project have to serve in long-term perspective the reform
in the customs administration and the aligning of the legal framework with the EU acquis in the
customs field. In this sense the establishment of the training unit is of utmost importance as it will
allow putting into the practice a mechanism, which ensures constant and continuous upgrade of the
skills and knowledge of the customs officers.
In addition, it is worth mentioning that this is not the first time that the LCA engages in long-term
modernization efforts. This activity has been on-going since 1993.
All capacity building activities will be established and implemented by LCA in order to ensure
continuity of the activities after the twinning expires.
30
9. Crosscutting issues
The proposed project will have a direct contribution to the principle of good governance and rule of
law among the institutional and private stakeholders through transparency of business rules and
regulations. In addition, it would minimize contact between trade and the public. The principle of
equal opportunity will be integrated into all stages of the project implementation and will provide
for equal opportunity for men and women to be treated equally despite of their race, nationality,
gender, origin, religious and political beliefs. In addition, national environmental standards will be
respected through introducing better controls of smuggling which will ultimately prevent trafficking
of hazardous and dangerous materials and thus increase environmental protection and the
emphasis on e-systems will reduce the demand for paper-based documentation within customs and
stakeholder communities. The trade community will start realizing that regulations, tariffs,
procedures, requirements and other information are more reliable, accurate and up-to-date when
retrieved electronically from its relevant source than from a paper-based version which can be out-
dated shortly after its publication.
Besides that, around 90% of the trainees are males while 70% of the calls to the Customs technical
team are female calls (this can be explained by the fact that males owe offices and are in charge of
field goods clearance while females are taking care of the IT part).
In the past, LCA’s gender balance was more in favor of males and the number of females
occupying middle management was limited. In recent recruitments, this situation improved
significantly.
This project will target both female and male customs officers for exposure to automated systems
and would provide equal opportunity for career enhancement.
10. Conditionality and sequencing
The implementation of the project requires the full commitment and participation of the senior
management of the Lebanese Customs Administration:
The Beneficiary shall:
Ensure that appropriate staff is made available to work with the EU twinning partner(s).
Counterparts for each of the objectives will be appointed to facilitate the implementation of
the respective activities of the twinning project;
Be responsible for the selection of trainees - in consultation with the EU experts - as well as
for providing the EU experts with legislation and any other documents necessary for the
implementation of the project;
Ensure that appropriate staff for training are made available, that trainees are released from
their duties during their training and that once trained they are retained in post; Shall
provide all possible assistance to solve any unforeseen problem that the EU twinning
partner(s) may face;
31
Fully support the RTA with accommodation, trainings rooms and logistical assistance.
Equally, the Twinning team, as led by the Twinning Resident Adviser must ensure full collaboration
with the counterparts at the institution. Communications should be open and consistent. The
Twinning team must carry out activities in the interest of the institution, and maintain its
involvement at all stages of activities.