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TWINNING PROJECT FICHE
Harmonization of the legislation and procedures with the acquis and EU best practice related to
excise
1. Basic Information
1.1 Publication reference: EuropeAid/ 135-344/M/ACT/MK
1.2 Programme:
Instrument for Pre-accession Assistance (IPA) - National Programme for 2010 under the IPA
Transition Assistance and Institution Building Component (TAIB)
1.3 Twinning Number: MK10 IB FI 02 R
1.4 Title:
Harmonization of the legislation and procedures with the acquis and EU best practice related
to excise
1.5 Sector:
Customs Union/Taxation
1.6 Beneficiary country:
The Beneficiary country1
2. Objectives
2.1 Overall Objective:
The overall objective of this project is further alignment of legislation with the acquis in the
area of excise, as well as strengthening the administrative and operational capacity of the
Customs Administration of the Country in the process of fulfilling the EU standards in these
areas.
2.2 Project purpose:
The purpose of this project is further approximation of the legislation in the area of excises
and procedures to the acquis; strengthening the administrative and operational capacity of the
Customs Administration in order to ensure enforcement of the excise legislation and to
ensure efficient implementation of the excise legislation; to improve the CARM’s2
organization, management and operational capacity; to facilitate trade; and to secure the
international supply chain, supported by the appropriate control mechanisms and IT systems.
1 As per Financing Agreement concerning the National Programme Transition Assistance and Institution Building – TAIB 2010 from the
Instrument for Pre-Accession Assistance under the Transition Assistance and Institution Building Component –entered into force on 1st
December 2011. 2 Customs Administration
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2.3 Contribution to National Development Plan/Cooperation agreement/Association
Agreement/Action Plan
Link with AP
The project will address the following priorities from the Accession Partnership 2008
Increase the administrative capacity to implement tax legislation and to fight fiscal
evasion;
Take structural measures urgently to reform control policy and improve control
capacity;
Increase administrative capacity to implement customs legislation and to fight cross-
border crime;
Further approximate legislation and procedures to the acquis.
Link with NPAA 2012
On medium term, the Project for Harmonization of the legislation and procedures with the
acquis and EU best practice related to excise, is expected to align the EU legislation in the
area of excises and increase significantly the capacity of the Customs Administration to
implement efficient and improved procedures especially regarding the creation of a legal
framework to introduce, implement and operate the new System for processing customs
declarations and excise documents (CDEPS) that will be compatible with the Excise
Movement Control System (ECMS) applicable in the EU. The revised national excise system
supported by the appropriate control mechanisms and IT systems (CDEPS) will enable the
Customs Administration efficiently to manage the excise declarations and other excise
documents (submission, acceptance, evidence, processing, archiving), to control the
movement of the excise goods and exchange of electronic messages as a part of the automatic
administrative operations, to efficiently control the collection and refund of excise duties,
taxes and other charges, as well as to facilitate trade and to secure the international supply
chain, in line with the EU standards.
Link with the Pre-accession Economic Programme
The beneficiary country as an EU Candidate prepares and submits to the European
Commission an annual medium-term macroeconomic and fiscal framework (Pre-accession
Economic Programme), in which the relevant authorities present the medium-term economic
programme and plans on how to comply with the economic criteria for EU membership.
Since the EU accession is a paramount country priority, the Pre-accession Economic
Programme 2013-2015 in the area of excises foresees the revision of the legislation related to
excises and alignment to the EU directives, as well as introducing a new system to process
excise documents enabling electronic submission and processing of excise documents,
accounting and collection of an excise debt, evidence of the excise goods released for free
circulation, evidence and monitoring of decisions for refund of excises duties, monitoring of
the issuing of excise control stamps, issuing and monitoring the excise licenses, permits and
their holders, as well as the monitoring of the stocks of excise goods. In regard to the
implementation of the interoperability and interconnectivity of the national with the EU
customs and excise IT systems the new CDEPS compatible with the Excise Movement
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Control System (ECMS), applicable in EU, will provide possibility to exchange data between
the economic operators and Customs, and between Customs and the other state institutions.
Link with SAA
The project will reinforce the SAA Article 68 where the country endeavors to ensure that its
laws will be gradually made compatible with those of the EU and Article 88, which refers to
achieving the approximation of the customs system of the Country to that of the Community
and to the simplification of inspections and formalities in respect of the carriage of goods and
support for introduction of modern customs information systems. Article 89 on taxation,
refers to establishing cooperation in the field of taxation including measures aiming at the
further reform of the fiscal system, the modernisation of the tax services with a view to
ensuring effectiveness of tax collection and the fight against fiscal fraud.
Link with MIPD
With regard to the Customs union, the Multi-annual Indicative Planning Document (MIPD)
2009-2011 for the country recommends that it is necessary to further align the customs
legislation and procedures with the acquis and to strengthen the customs administration in
order to ensure its proper functioning. EU assistance may support appropriate measures
which aim at establishing interconnectivity with the computerised systems of the EU.
Link with national/ sectoral investment plans
The project directly links to the following key Strategies and Action Plans in the sector:
- Strategic Plan of the Customs Administration 2013-2015;
- Training and Professional Development Strategy 2013-2015;
- Human Management Strategy 2013-2015;
- ICT Development Strategy of the Customs Administration 2013-2015;
- Strategy for Implementation of Interoperability for EU Accession 2013-2015;
3. Description
3.1 Background and justification:
Sector background
The Customs Administration (CARM) is a part of the Ministry of Finance and responsible for
the collection of customs duties and VAT on imports, excises, as well as for prevention of
illegal imports and exports. The CARM is structured in three hierarchical levels: the
Headquarters located in Skopje, five Regional Customs Houses, and 37 Customs Offices.
Each Regional Customs House is responsible for one or more of the 19 Border Crossing and
18 inland Customs Offices. The CARM employs around 1170 employees. The relevant
legislation in the area of Customs includes the Customs Code, the Law on the Customs
Administration, Implementing Regulation of the Customs Code and a number of other laws
and implementing legal acts.
Reform and Recommendations
The CARM is undergoing a reform process in accordance with its Strategic Plan, the NPAA
and is using the EC Customs Blueprints. The objective of the reforms is to reach increased
organizational and operational efficiency of the customs service, to enhance the integrity in
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the CARM, to achieve implementation of harmonised customs legislation, to introduce
transparent and efficient customs procedures, such as the “Single Window concept”, to
enhance the use of Information Technology and Electronic Working and to provide for
greater client oriented approach and better cooperation with the business community. The
Customs Administration has undertaken the management of the excises on the entire territory
of the Country from 1 January 2010. Therefore, the following laws were amended: Law on
excise, Law on Customs Administration, Law on Public Revenue Office and Law on tax
procedure. Also, the necessary amendments of the by-laws were adopted. These amendments
were in the course of enabling the Customs Administration, as a sole responsible institution,
to undertake the management of the excises on the entire territory of the Country. Further
harmonisation with the acquis especially with: the Regulations: 3649/92, 3199/93, 31/96,
684/2009; the Directives: 92/83/EEC, 92/84/EEC, 95/60/EC, 2001/224/EC, 2003/96/EC,
2008/118/EC, 2011/64/EU and their amendments; the Decisions of the Council and
Commission in this area, as well as any other legislation under preparation is considered
crucial. In this regard, further administrative and operational capacity building for proper
implementation of the legislation, introduction of new procedures and mechanisms for
surveillance and control of the movement of the excise goods is area that should be further
developed.
Implementation
The current Strategic Plan of the Customs Administration 2013-2015 defines the following
priorities: investment in the Customs Administration’s employees, simplification and
facilitation of economic activities by introducing further measures to enhance the customs
and excise procedures thus increasing the competitiveness of the national economy;
enhancement of law enforcement capacities, arrangement of the administrative support
permanently building institutional and administrative capacities, identification, revision,
regulation and computerization of the working processes and improvement of the logistic
support through development of IT systems to provide rational, purposeful and efficient use
of its resources for logistic support of the activities related to its principal responsibilities.
Modalities to reach the objectives are to improve: the system for training and professional
development of the employees, analyze and adapt the legal framework for simplification and
facilitation of economic activities, the excise administration system, law enforcement control
techniques, trade companies control, development of the information and communication
technologies and transparency and cooperation with the business community. The strategic
priorities and goals defined for the period 2013-2015, in the area of excises, shall be realized
through preparation of and proposals for amendment to the legislation for further
harmonization the acquis to the end of ensuring better efficiency in the area of excise
including detection of offences, introduction of new electronic, paperless customs
declarations and excise documents processing system, introduction of electronic control
system for excise goods movement, further regulation of the procedure of issuing
authorizations concerning excises and excises related procedures and increasing the number
of employed trainers.
The conclusions of the European Commission’s 2012 Progress Report in the area of Customs
are that, there was progress in the area of customs union, in particular on administrative and
operational capacity. Inter-agency cooperation, the fight against corruption in the customs
administration and the capacity to tackle cross-border crime continued to improve.
Preparations in the area of customs union are well on track. Concerning the customs
legislation the Report notes some progress. The 2012 customs tariff was adopted in line with
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the latest changes in the EU Combined Nomenclature. New implementing provisions were
introduced on risk management, including electronic risk management and exchange of
information, use of summary customs declarations, risk analysis, the procedure for issuing
and revoking authorisations for the simplified customs procedure, and exchange of
information between customs authorities using IT and computer networks. Preparations in
this area are advanced. It is also noted that good progress was made on administrative and
operational capacity. Cooperation with the business community intensified and exchange of
information with the customs administrations of neighboring countries continued.
Professional standards and internal control measures were implemented systematically with
the aim of preventing and fighting corruption among customs officers. Operational capacity
for customs controls was further enhanced. Further progress was made with developing the
risk management system at border crossings, in the form of more comprehensive application
of risk analysis. However, sustainable financial resources for operation and maintenance of
customs control equipment need to be secured. An Information and Communication
Technology (ICT) development strategy and a public relations strategy were adopted for
2012-2014. The national plan for implementing the New Computerised Transit System
(NCTS) was regularly updated. A new transit application, fully compatible with the NCTS,
was developed and the necessary implementing capacity was put in place. The single window
system for issuing authorizations was further upgraded. The customs administration started
developing a new Customs Declaration Processing System. Further development of staff’s
project management and quality assurance capacity is necessary in order to minimise the
risks associated with parallel implementation of a number of IT development projects and to
improve project performance in general. Preparations in this area are on track. In regard to
the area of taxation the European Commission’s 2012 Progress Report noted legislation on
excises is only partially aligned with the acquis. Report concludes that the progress has been
limited in the field of taxation and efforts are still required to harmonise the national
legislation with the acquis, to reinforce the fight against tax fraud and tax evasion Overall,
preparations in the area of taxation are moderately advanced.
CARM is aware of the importance of alignment of the national excise system with the ones
used in the EU, and one of the necessary conditions is having a state of the art computerised
system in place to facilitate its stated ambition to improve its efficiency and to bring its
operation in line with EU best practices. Accordingly, a decision has been made to take up
activities to select, obtain and implement software for setting up a new Customs Declaration
and Excises Documents Processing System (CDEPS) compatible with the Excise Movement
Control System (ECMS), applicable in the EU due to the fast changing technologies of IT
systems and standards.
CDEPS will be operating in the National Domain. Its purpose is to provide a solution to
exchange data not only between Customs authorities, but also with other governmental
organisations and economic operators. CDEPS will guarantee adaptability and a possibility
for further interconnection with the EU systems. Therefore, the country is developing an
excise control module system based on the latest functional and technical specifications
available in the EU, to ensure full compatibility and interoperability of the Customs IT
systems with the related EU Customs IT interoperability systems.
Support in the area of harmonization of the legislation in the area of excises, though the
present project will assist and support to reach the objectives of establishing an effective, up-
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to-date and sound excise management system, compatible with the EU standards, best
practices and requirements.
3.2 Linked activities
The below listed projects are complementing, and not overlapping, the activities programmed
under this Twinning Fiche:3
Title: Customs Declaration and Excises Documents Processing System (CDEPS)
Source of funding: National Budget
Duration: 2012- 2014
Description: The CARM received an EU support to further develop the User and Technical
Requirements of the new Customs Declaration Processing System (CDPS) through a
framework contract. In 2008, experts with experience in EU Customs IT systems has
reviewed the business processes, proposed its simplification, and completed the User and
Technical Requirements of the future system. Following a failure of a contract aimed at
developing a new CDPS, which was implemented between January 2009 and April 2011 and
was funded from the national budget, a repeated tender was launched in September 2011. The
new contract started in May 2012.
Considerations about the CDEPS:
The solution is fully compatible with EU requirements – all customs regimes and
procedures;
The solution covers the national part of CDPS and will be NCTS, ITE, ECS and ICS
compatible;
Modules: Import, Export, Transit, Control module Excise;
Sub-systems: TARIM, Risk Management, Guarantees and accounting management,
customs authorizations.
Title: IPA 2007 - Technical Assistance for Further Alignment of Legislation with the acquis
in the Field of Customs
Source of funding: European Union (EU0257)
Duration: 18 months completed (August 2009 – February 2011)
Description: The overall objective of the project was to support the reform process, by
achieving further alignment of the customs legislation with the acquis and strengthening the
administrative capacity of the CARM to meet the EU requirements in this area. The project
purpose was the harmonisation of the customs legislation in the beneficiary country with the
EU legislation and best practice, as the prime component of the overall objective, in order “to
establish a sound and modern legal foundation for the Customs business”. The project has
provided, drafting the procedures part of Functional and Technical System Specification for
the Excise Movement and Control System, later incorporated as part of the technical
requirements for the implementation of the Customs Declaration and Excise Document
Processing System Project (CDEPS).
Title: IPA 2007 Project for Improvement of Customs IT Systems
Source of funding: European Union (EU0269)
3 The reference numbers are listed as registered in the Central Donor Assistance Database available at
http://cdad.sep.gov.mk/EN/search.aspx.
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Duration: 18 months completed (August 2009 – January 2011)
Description: One of the deliverables of this project was the production of an Interoperability
Implementation Strategy (IIS) which describes the time schedule for IT related developments
necessary to support EU accession.
Title: IPA 2008 Project-Interoperability of the Customs Administration’s IT system with the
EU customs IT systems
Source of funding: European Union (IPA0158)
Duration: 24 months (February 2011 – February 2013)
Description: Under IPA 2008, as foreseen, upon completion of the project, in 2013, the
Customs Administration will have implemented the New Customs Transit Control System in
conformity with the Common Transit Convention (CTC), in order to assist in the control and
management of the movement of goods by the electronic exchange of transaction information
between CTC countries, and put in place the necessary organisational and procedural changes
in order to operate the systems effectively and efficiently. This is a prerequisite for EU
accession. The implementation date of CCN/CSI is not yet defined.
Title: IPA 2009-Strengthening the capacity of the Customs Administration
Source of funding: European Union
Duration: 24 months, implementation started in the third quarter 2012 (2012-2014)
Description: The overall objective of the project is compliance of the Beneficiary country
with the EU requirements concerning the Community Integrated Tariff Environment (CITE)
in order to bring the country closer to the EU market and the Customs Union. The purpose of
the project is the strengthening of the operational capacity of the CARM in accordance with
EU standards in the core Customs and Taxation business areas of the European Community
Customs tariff and to ensure full compatibility and interoperability of the Customs IT systems
with the related EU Customs IT interoperability systems. (The concerned Integrated Tariff
Environment (ITE) systems are TARIC, European Binding Tariff Information (EBTI), Quota,
Surveillance, the European Customs Inventory of Chemical Substances (ECICS).
3.3 Results:
The project shall provide advisory support to the Customs Administration as a main
beneficiary, as well as to the Tax Department of the Ministry of Finance in the area of
excises. The Twinning is aimed at further development of the capacity of the Customs
Administration to administer the excises on the whole territory of the country applying
harmonised legislation and procedures with the Acquis and EU best practice, supported by the
appropriate control mechanisms and IT systems. For all seminars and workshops delivered
the training materials should be prepared in both English and македонски language.
The mandatory results to be achieved are:
Component 1 Harmonised legislation and procedures with the acquis and EU best
practice, supported by appropriate control mechanisms and IT systems
This mandatory result shall be achieved through the achievement of the following
intermediary results:
1.1 Proposal of an Action Plan for drafting national legislation delivered;
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1.2 New Law on excises and other legal acts and/or amendments to the existing national
legislation (laws and implementing regulation) which regulate the area of excises aligned
with the EU legislation drafted. The draft legislation should be prepared in both English and
македонски language.
1.3 Correlation table showing the link between the provisions of the EU and the national
legislation, for each legal act, prepared.
1.4 Analyses of the existing guidelines, instructions and manuals regarding procedures and
working practices conducted. Analyses shall include the following procedures and working
processes:
Basic excise processes:
- Excise declaration form
- Excise control stamps
- Establishment of excise by external control
- Refund of paid excise
- Excise Licenses and Permits
- Reporting of supply of excise goods
- Registers regarding excises
- Excise movement control;
1.5 Report on the Analyses of the existing guidelines, instructions and manuals regarding
procedures and working practices, as well as control mechanisms including recommendations
delivered;
1.6 Proposal and Action Plan for designing new procedures and standards in the operations of
the CARM for the implementation of the newly developed legislation and drafting
(preparation) new/updated guidelines, instructions, manuals and control procedures in line
with the procedures and best working practices in the EU delivered;
1.7 New/updated procedures designed and introduced and guidelines, instructions and
manuals drafted in line with the procedures and working practices on the basis of actual EU
legislation in force, and existing drafts of new legislation and EU best practice. The
deliverables under this mandatory result should be prepared in both English and македонски
language.
Component 2 Strengthened administrative and operational capacities to implement the
excise legislation
This mandatory result shall be achieved through the following intermediary results:
2.1 Assessment of the current national organizational set up, management and control system
conducted and Report delivered;
2.2 Proposal for new excise movement and control management system and sub-systems and
organizational set up based upon the EU Member States current best practices and experience
in business process management in the area of excises drafted.
2.3 CARM Excise Strategy for further development of the national excise system drafted;
2.4 Assistance and guidance to the CARM in designing, drafting and implementing new
excise movement and control management system and sub-systems including national excise
computerized movement system provided.
2.5 Training Plan, Training Modules, and Training Manual related to excise for customs
officers (including those involved in monitoring, controlling and enforcing of the excise
legislation and procedures, as well as the employees of the Customs Laboratory), economic
9
operators and trainers developed and delivered; they should be prepared in both English and
македонски language;
2.6 Delivery of the Training Plan.
3.4 Activities:
The Twinning project should not be a one-way assistance from a Member State to a
Beneficiary Country. It must help to introduce and share EU wide best practices in
connection with EU legislation and specific needs of the Beneficiary Country in the field of
excises.
The set of proposed activities will be further developed with the Twinning partner when
drafting the Twinning work plan, keeping in mind that the final list of activities will be
decided with the Twinning partner. The components are closely interlinked and need to be
sequenced accordingly. The Twinning assistance will be provided in the form of know-how
transfer, and will be delivered through:
a) Advice and coaching sessions: Coaching and advice activities will be the predominant
type of activity. They will help for drafting of new Law on excises and other legal acts and/or
amendments to the existing national legislation (laws and implementing regulation) which
regulates the area of excises on the basis of the EU legislation in force and existing drafts of
new legislation on excises, further development of procedures, implementing provisions and
control mechanisms and strengthening of the administrative and operational capacities of
CARM. They shall contribute to increased effectiveness of the national excise management
and control system and its harmonisation with the EU legislation and best practice.
b) Tailor made training programme: This project will include the development and
implementation of a tailor-made training programme. The programme will take into account
the lessons learnt from the previous trainings and will be based on a training needs
assessment of the target groups. The training programme will focus on all aspects of
improving the capacities of the BC in the areas outlined above. The Beneficiary prefers on-
the-job training, where applicable.
c) Seminars, workshops and conferences: The training programme will involve the
organisation of seminars, workshops, conferences etc.
d) Analysis of Legal acts, Guidelines, Manuals, procedures and check-lists: The Twinning
partner should propose new Law on excises and other legal acts, Guidelines and Instructions
and/or amendments to existing national legislation which regulates the area of excises in line
with the acquis and EU best practice, as well as more effective procedures. This task will be
done in close cooperation and consultation with Beneficiaries.
e) Development: The Twinning partner will propose and provide assistance and guidance in
the development of a new excise movement and control management system and institutional
set up, as well as assist in improving institutional and administrative capacities and
competences to successfully enforce legislation and detect and prevent potential excise fraud.
This will be done in the course of establishing and introducing new procedures, providing
support to establishing sound training support and providing training to customs officers and
economic operators relevant to the scope of the project. This task will be done in close
cooperation and consultation with the beneficiaries.
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3.5 Means/ Input from the MS Partner Administration:
The project will be implemented in the form of a Twinning contract between the Beneficiary
Country and an EU Member State. The implementation of the project requires one Project
Leader (PL) responsible for the overall coordination of project activities, one Resident
Twinning Adviser (RTA) responsible for direct management and implementation of all
project activities and in particular under component 2, one Medium Term Expert for
Component 1, and Short-Term Experts. It is essential that the team has sufficiently broad
expertise to cover all the areas included in the project description. The interested Member
State institution shall include in its proposal the CVs of the designated Project Leader,
Resident Twinning Adviser, Medium-term Expert and the proposed Short-Term Experts and
the specific tasks to which they will be assigned to. The details of implementation of the
Twinning Project will be agreed upon/during the preparation of the work plan.
3.5.1 Profile and tasks of the Project Leader
Member State Project Leader (MS PL)
The Project Leader from the Member State must be a high-ranking public servant or
equivalent staff of a Member State administration, but preferably the Head of a Department
engaged in issues of excise procedures within the Customs and Tax Administration under the
relevant Ministry in charge of administering excise duties, with relevant working experience
of at least 8 years.
The MS Project Leader will continue to work at his/her Member State administration but will
devote some of his/her time to conceive, supervise and co-ordinate the overall thrust of the
Twinning project, and ensure the attainment of the projected outputs.
The MS Project Leader will manage the implementation of the project with the Project
Leader from the Beneficiary Country and is expected to devote a minimum of 3 days per
month to the project in his/her home administration with an on-site visit at least every 3
months. The Project Leader’s seniority will ensure his/her ability to mobilise the necessary
staff in support of the efficient implementation of the project. In addition, he/she should
coordinate, on the Member State side, the Project Steering Committee (PSC), which will
meet in Skopje at least every three months.
The Project Leader is fully responsible for co-ordination of the work of the experts. He/she
will be supported by his/her Member State administration for logistic, accounting and
administrative affairs.
Qualifications and skills
Education of at least University degree in economics or similar discipline relevant to
the project (Master's degree would be considered an asset);
Knowledge of relevant EU projects, rules and procedures;
Fluent written and spoken English.
.
Tasks:
Conceive, supervise and coordinate the overall preparation of the project;
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Coordinate and monitor the overall implementation of the project;
Co-ordinate MS experts’ work and availability;
Communicate with the beneficiary, CFCD and EUD;
Liaison with the Project Leader from the Beneficiary Institution;
Co-chairing, with the Beneficiary Country Project Leader, the regular project
implementation Steering Committee meetings;
Executing administrative issues (i.e. signing reports, side letters, etc.);
Guarantee the successful implementation of the Project’s Work Plan.
Beneficiary Country Project Leader (BC PL)
The BC Project Leader will act as the counterpart of the MS PL and will ensure close
cooperation in the overall steering, co-ordination and management of the project from the
beneficiary side. He/she will support the Twinning project team in organizational and
technical matters and will also coordinate the Project Steering Committee (PSC) on behalf of
the BC. The role of the BC PL and the MS PL are complementary.
3.5.2 Profile and tasks of the Resident Twinning Advisor (RTA)
One Resident Twinning Advisor (RTA) will be appointed, and he/she will be located in the
premises of the Customs Administration in the Beneficiary Country.
The secondment of the Resident Twinning Adviser will last 21 months, during which he/she
will be responsible for the direct implementation of the project activities on the ground, under
the overall supervision of the MS Project Leader.
He/she will come from an EU Member State to work on a full time and day-to-day basis with
the beneficiary administration. The Resident Twinning Adviser will have a key role in the
coordination of the inputs required for the successful implementation of all the project
activities and in particular for Component 2. He/she shall be supported by medium – term
expert and short – term experts.
Qualifications and skills:
be a national of a Member State of the European Union;
be a civil servant or equivalent staff seconded to work, within departments/units
related to excises in an EU Member State;
have a minimum university (Bachelor) degree in law, economy, public administration
or equivalent field (Master would be an asset)4;
have at least 3 years of professional experience in the field of excises in Customs/Tax
Administration (preferably Customs);
Experience in implementing EU relevant legislation in the field of excises;
have experience in developing and or delivering training programmes for training of
trainers;
be fluent in written and spoken English.
4 For reference on equivalent qualification see: EPSO website-Annex 1 (http://europa.eu.int/epso/on-line-
applications/pdf/guide-1242-171104_en.doc
12
Tasks:
As to the general responsibility of the day-to-day implementation of the Twinning project in
the Beneficiary Country, the Resident Twinning Adviser (RTA) tasks will include:
To provide technical advice and assist the administration or other public sector bodies
in the BC in the context of a predetermined work-plan
Coordination of all project activities and experts’ inputs in the country;
Make recommendations on the organizational structure optimization;
Providing assistance and guidance for the implementation of the Component 2;
To assist to the further development of a sustainable institutional framework (system
and mechanisms) which would ensure the efficient and effective functioning;
Ensuring day-to-day implementation of the Twinning project in the BC;
Ensuring smooth correlation between the activities, deadlines and the envisaged
results in the Work Plan;
Ensuring smooth implementation of the different activities delivered;
Assess continuously the Twinning Project in all stages and provide link to compare it
with the specified benchmarks/results and time-frame;
Prepare the material for regular monitoring and reporting.
3.5.3 Profiles and tasks of the Medium Term Expert
He/she should be an official from a MS body/mandated body and is expected to spend
minimum 120 working days during the project period in the beneficiary country. He/she is
expected in close cooperation with the RTA to provide input for the drafting of the new
excise legislation under Component 1.
Qualifications and skills:
be a national of a Member State of the European Union;
be a civil servant or equivalent staff seconded to work;
have a minimum university (Bachelor) degree in law or equivalent (Master would be
an asset)5;
have at least 3 years of professional experience in drafting regulation in the field of
excises in Customs/Tax Administration (preferably Customs);
be fluent in written and spoken English.
Tasks:
Provide technical advice, support and assist the Customs Administration in the context
of drafting new excise legislation under Component 1;
Prepare Analyses of the existing guidelines, instructions and manuals regarding
procedures and working practices;
Overview the designing, drafting and implementing new excise movement and
control management system and procedures and for drafting guidelines, instructions
5 For reference on equivalent qualification see: EPSO website-Annex 1 (http://europa.eu.int/epso/on-line-
applications/pdf/guide-1242-171104_en.doc
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and manuals regarding effective procedures, working processes and control
mechanisms.
Ensuring day-to-day linkages with the beneficiaries;
Prepare the material for regular monitoring and reporting.
Additional assets are:
Experience in implementing acquis requirements in EU Member states in practice;
3.5.3 Profile and tasks of the Short Term Experts (STE)
Other specialist staff will be made available by the Twinning Partner to support the
implementation of activities. Specific and technical matters not directly covered by the
Resident Twinning Adviser and the Medium Term Expert can be taken over by short-term
experts within the limits of the budget. CV's and proposed activities of each Short-Term
Expert should be an integral part of the MS Offer. The detailed expert input shall be
established when drawing up the twinning work-plan.
Qualifications and skills:
Short-Term Experts will:
have a University-level degree6;
be civil servants or equivalent staff seconded to work within departments/units related
to excises in an EU Member State;
have minimum 3 years experience in implementation of institutional aspects targeted
by the Twinning Contract;
have experience in organisation and implementation of training sessions organised by
Member States or by Community institutions directed towards staff members and/or
operators in the scope of the project;
be fluent in English, both oral and written.
Tasks:
Short-Term Experts will:
prepare and implement specific tasks based mainly on practical cases and experience
in compliance with their mission description and in accordance with Project activities;
provide practical expertise/advices to relevant staff for execution of different tasks
related to the project;
contribute to the project reporting, contribute to the draft notes and other documents
and report on their missions;
address cross-cutting issues.
Short-Term experts expertise will relate (but not inclusive):
Excise and revenue collection management and procedures;
6 For reference on equivalent qualification see: EPSO website-Annex 1 (http://europa.eu.int/epso/on-line-
applications/pdf/guide-1242-171104_en.doc
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Post clearance audit and enforcement of excise legislation;
Fiscal excise based controls;
Excise duty liability and refund;
Excise (business and/or IT) procedures;
EU excise legislation and practices in the field of excise collection and refund;
EU excise legislation and practices in the field of detection, prevention and combating
excise frauds and evasion;
EU practices in the field of circulation and controls of excise goods (including Excise
Movement Control System- EMCS developments);
E-controls in the field of excise system;
Excise risk management;
Laboratory analytical methods for analysis of excise goods.
3.5.4 Profile and tasks of the RTA assistants
3.5.4.1 RTA Assistant:
The RTA will be provided with a full-time RTA assistant acting as an assistant for technical
and organizational support. The assistant will be contracted according to Twinning rules and
paid from the Twinning budget. The assistant will be selected through an open call. The role
of RTA Assistant is to support the RTA in the project management. In addition, the assistant
will be responsible for organisation of meetings, seminars etc. and their logistics.
3.5.4.2 Full-time translator / interpreter:
A full-time translator / interpreter will be selected through an open call. The full-time
translator / interpreter will be involved in all necessary project activities (training sessions,
translation of project documents/reports and materials, organizational activities, etc.). The
role of the translator / interpreter will be to provide translation and editing as well as
interpretation services to the Twinning project in general.
4. Institutional Framework
4.1 Beneficiary Institution(s)
The Customs Administration is part of the Ministry of Finance and responsible for the
collection of customs duties and VAT upon importation and excises, as well as for prevention
of illegal imports and exports. The CARM is structured in three hierarchical levels: the
Headquarters located in Skopje (currently composed of seven Sectors) and five Regional
Customs Houses, and 37 Customs Offices. Each Regional Customs House is responsible for
one or more of the 19 Border Crossing and 18 inland Customs Offices.
This project will primarily be focused on capacity building of the Customs Administration as
main beneficiary. Also, the assistance will be spread to the Tax Department within the
Ministry of Finance, which will be included in the drafting of legislation and training
activities aiming to improve the knowledge and sustainability in the excise related area.
Sector for Customs System is responsible for analyses of the customs, tax and excise
legislation, building up the customs system and policy. This Sector is drafting legislation,
15
guidelines and instructions for the application and enforcement of those procedures within the
competences of CARM. The Department for customs and tax procedures, within this Sector,
is responsible for the building of a stable, comprehensive and modern excise revenue
collection system. It is dealing with the drafting of the amendments to the legislation and the
establishment and implementation of excise duty related procedures. This department is in
charge of preparation of excise permits and licenses, keeping track of excise revenue
management and collection procedures, preparing the printing and administering issuance
and payment of control stamps. It provides assistance to the other organizational units
regarding the area of excises. It also cooperates with the economic operators regarding the
procedures, when needed to initiates amendments to the legislation and keeps the economic
operators informed of the development in this area. The approximation of the national
legislation with the acquis, procedures compatible with the EU best practices, as well as
training on this area is part of description of the responsibilities.
Sector for controls and investigations with its organizational units for: Intelligence
Department, Risk Analyses Department, Operational Matters Department, Investigation
Department and Trade Companies Control Department is responsible to conduct control,
investigation and intelligence measures for the purpose of prevention, detection and
investigation of customs offences and crimes.
Customs Offices are responsible to conduct supervision and control of goods, to calculate and
collect or repay the import and export duties, excise duties, taxes and other public levies on
importation, exportation or transit of goods, and trade and movement of excise products, as
well as to conduct forcible collection of the above in accordance with law.
Tax Department, within the Ministry of Finance, performs activities pertaining to preparation
of laws and bylaws in the field of value added tax, excises, and the tax policy in general for
generating source revenues in the Budget
5. Budget
The project will be implemented through a Twinning Contract estimated at a maximum of
EUR 947,368 (out of which 95% IPA funds and 5% National co-financing).
Harmonization of the legislation and
procedures with the acquis and EU best
practice related to excise
IPA Community
Contribution
National
Co-financing TOTAL
Twinning Contract 95%
900,000 EUR
5%
47,368 EUR
947,368
EUR
The co-financing requirement foreseen under IPA will be considered fulfilled according to
the provision of the relevant Financing Agreement.
The budget for the project is based on 21 months twinning partnership.
16
In addition to the IPA and National co-financing as part of the Twinning Contract amount, as
a rule, all twinning contracts must provide additional co-financing on the side of the
Beneficiary Institution (CARM), for the purpose of covering costs not covered under the
project budget as per Twinning manual, point 5.13, as follows:
Direct and indirect cost of the Beneficiary administration, civil servants and national
private experts working for the project;
Travel by the beneficiary officials from their capitals to a MS or between MS;
Organisation of seminars/ workshops/ trainings (incl. hall rental, printing seminar
materials and other logistical support).
Facilities for the Member State experts: adequately equipped office space; telephone; e-
mail services; fax; photocopiers; computer; internet access; secretarial support; access to
information;
For the needs of the project, a full time RTA Assistant and full time translator-interpreter has
to be appointed under the project budget.
The following expenses are to be covered with the project funds:
· Visibility Cost;
· Audit certificate cost;
· One full time translator/interpreter;
· Full time assistant.
The project will be located in the premises of the Customs Administration. CARM will
ensure appropriate facilities and basic equipment for the work of the experts. This includes
administrative support, office space, telephone and fax and other necessary facilities. This
contribution should also include logistical support for various training activities, including
selection of trainees (in consultation with the Member State experts), as well as providing the
Member State experts with the documents necessary for project implementation.
The twinning partner (project beneficiary) shall provide all available assistance to solve
unforeseen problems that the Member State twinning partner(s) might face.
6. Implementation Arrangements
6.1 Implementing Agency responsible for tendering, contracting and accounting
(AO/CFCU/PAO/Commission)
The Central Financing and Contracting Department (CFCD) of the Ministry of Finance will
be responsible for tendering, contracting, payments, accounting and overall supervision of the
implementation of the project, upon conferral of management. The Head of CFCD will act as
the Programme Authorising Officer (PAO) of the project:
Ms. Radica Koceva (PAO)
Central Financing and Contracting Department
Ministry of Finance
Tel: +389-2-3106 455; Fax: +389-2- 3231 219
E-mail: [email protected]
17
6.2 Main counterpart in the BC
The following persons will be counterparts of the key personnel of the MS Partner
Administration:
BC Project Leader
Assistant Director General, Sector for Customs Systems
Customs Administration
Address: Lazar Licenoski 13, 1000 Skopje
RTA counterpart
Head of Department for Customs and Tax Procedures
Customs Administration
Address: Lazar Licenoski 13, 1000 Skopje
Mr. Ilija Janoski,
Senior Programme Officer
Customs Administration
Address: Lazar Licenoski 13, 1000 Skopje
Tel: +389-2-3293 910; Fax: +389-2-3237 832
e-mail: [email protected]
6.3 Contracts
One (1) Twinning contract is foreseen for implementation of the above mentioned activities.
7. Implementation Schedule (indicative)
7.1 Launching of the call for proposals
The estimated date for the launching of the call for proposals is: December 2013
7.2 Start of project activities
The estimated date for start of project activities is: June 2014
7.3 Project completion
The project implementation period (duration of the work plan) is 21 months after the
commencement date of the Project.
7.4 Duration of the execution period of the contract is 24 months
The overall execution period of the Twinning project is 24 months with an implementation
period of 21 months. (The execution period of the contract shall enter into force upon the date
of notification by the Contracting Authority of the contract signed by all parties, whereas it
shall end 3 months after the implementation period of the Action).
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8. Sustainability
The Beneficiary administration is fully committed to ensuring a long term impact of the
activities of this Twinning Project.The expected combined impact of this project will bring
about significant improvement in the harmonisation of the national legislation and procedures
with the acquis and EU best practice related to excises, improved excise management system
as well as improved capacities of the Customs Administration to successfully enforce
legislation and detect and prevent potential excise duty fraud. The project will have impact on
improving the systems (strategic planning documents, strategic management), skills,
practices, mechanisms, rules, by laws and strategies of the relevant institutions. An ongoing
review of key issues impacting on sustainability will start from the beginning of project
implementation, based on the results and outcomes that should be achieved over time. The
objective of this review is to facilitate the sustainable impact of outcomes beyond the end of
the project. After project completion, the key elements of the system are expected to be in
place and operational. This in turn, is expected to have a positive impact on developments in
the agricultural sector, stimulating growth, diversification and exports.
The Member State Twinning partners shall transfer their best practices and know-how
necessary to achieve the mandatory results to the Beneficiary administration. Staff benefiting
from trainings shall transfer knowledge through subsequent training to their colleagues.
Moreover and at the end of the implementation period a lesson learnt seminar will be held to
disseminate the results and the best practices acquired and to foresee future relevant
activities.
9. Crosscutting issues
The cross-cutting issues do not need to be specifically implemented by means of direct
activities of the Project, but solely need to be taken into consideration–i.e. if possible,
mainstreamed, and in any case, not breached during the preparation and implementation of
the Project.
9.6 Communication and publicity
All requirements to ensure the visibility of EU financing will be fulfilled in accordance with
Regulation (EC). N. 718/20077.
10. Conditionality and sequencing
10.1 Conditionality
Contributions expected from the Beneficiary include:
1. Timely allocation of working space and facilities by the beneficiary for technical
assistance before the launch of the tender process;
2. Participation by the beneficiary in the tender process as per EU Twinning
regulations;
3. Appointing counterpart personnel by beneficiary prior to launch of the project fiche;
7
See Article 62 and 63 of Regulation(EC) N. 718/2007
19
4. Provision of necessary authorisations for co-operation and sharing of information with
all key stakeholders, co beneficiaries and related deployed advisory resources;
5. Appointing relevant staff by the beneficiaries to participate in training activities;
6. Organisation, selection and appointment of members of working groups, steering and
coordination committees, seminars by the beneficiary as per work plan of the project;
7. Allocation of the necessary national co–financing budget for the relevant project;
8. The updated CARM Excise strategy is in place prior to the start of contracting.
10.2 Sequencing
Key milestones will be:
1) Approval of the Twinning project fiche;
2) Circulation of the Twinning Project Fiche to Member State National Contact Points;
3) Completion of the selection of the twinning partner;
4) Signature of the Twinning contract, including the Twinning Work Plan;
5) Commencement of the implementation of the twinning (inter alia, the arrival in the
country of the Resident Twinning Adviser);
6) End of the implementation period;
7) Submission of the final report.
ANNEXES TO PROJECT FICHE
1. Logical framework matrix in standard format (compulsory)
20
LOGFRAME PLANNING MATRIX FOR Project Fiche Programme name and number
Harmonisation of the legislation and
procedures with the acquis and EU best
practice related to excise
Contracting period
expires two years from
the date of the
conclusion of the
Financing Agreement
Execution period
expires two years
from the final date
for contracting
Disbursement period expires one year
from the final date for execution of
contracts
Total budget :
EUR 947, 368
IPA budget:
900.000
Overall objective Objectively verifiable indicators Sources of Verification The overall objective of this project is further
alignment of the legislation with the acquis in the
area of excise, and as well as additional
strengthening the administrative and operational
capacity of CARM in the process of fulfilling the
EU standards in these areas.
Fully harmonised national excise legislation
with EU standards.
- EC regular report;
- Annual report of the Steering Committee;
- Project reports (quarterly, annual);
- European Commission annual reports;
- Monthly monitoring progress report from
SPO to CFCD.
Project purpose Objectively verifiable indicators Sources of Verification Assumptions
The purpose of this project is further
approximation of the legislation in the area of
excises and procedures to the acquis, as well as
strengthening the administrative and operational
capacity of CARM in order to ensure efficient
implementation and enforcement of the excise
legislation, to improve CARM’s organization,
management and operational capacity, to facilitate
trade and to secure the international supply chain,
supported by the appropriate control mechanisms
and IT systems.
Improved capacity of the CARM to
implement and enforce the legislation and
procedures in the area of excises in line with
the acquis and best EU practice
- Regular Customs Administrative and
Operational Capacity Reports;
- Customs statistics;
- Trade reports.
- Government maintains consistent
policy and commitment to the EU
accession;
- Willingness and capacity of
Customs high-level management to
introduce changes and innovation
into practical management;
- Successful implementation of other
EU financed customs projects.
21
Results Objectively verifiable indicators Sources of Verification Assumptions
Component 1 Harmonised legislation and
procedures with the acquis and EU best
practice, supported by appropriate control
mechanisms and IT systems
This mandatory result shall be achieved through
the achievement of the following intermediary
results:
1.1 Proposal of an Action Plan for drafting national
legislation delivered;
1.2 New Law on excises and other legal acts and/or
amendments to the existing national legislation
(laws and implementing regulation) which regulate
the area of excises aligned with the EU legislation
drafted. The draft legislation should be prepared in
both English and македонски language.
1.3 Correlation table showing the link between the
provisions of the EU and the national legislation,
for each legal act, prepared.
1.4 Analyses of the existing guidelines, instructions
and manuals regarding procedures and working
practices conducted. Analyses shall include the
following procedures and working processes:
Basic excise processes:
-Excise declaration form
-Excise control stamps
-Establishment of excise by external control
-Refund of paid excise
-Excise Licenses and Permits
-Reporting of supply of excise goods
-Registers regarding excises
-Excise movement control;
1.5 Report on the Analyses of the existing
guidelines, instructions and manuals regarding
procedures and working practices, as well as
control mechanisms including recommendations
delivered;
1.6 Proposal and Action Plan for designing new
procedures and standards in the operations of the
Component 1 Harmonised legislation and
procedures with the acquis and EU best
practice, supported by appropriate control
mechanisms and IT systems
Proposal of an Action Plan for drafting
national legislation delivered and agreed
upon;
New Law on excises and other legal acts
and/or amendments to the existing
national legislation (laws and
implementing regulation) which
regulates the area of excises aligned with
the EU legislation in accordance with
the Action plan drafted in both English
and македонски language.
Correlation table showing the link
between the provisions of the EU and
the national legislation, for each legal
act, prepared. Analyses of the existing guidelines,
instructions and manuals regarding
procedures and working practices
conducted.
Report on the Analyses of the existing
guidelines, instructions and manuals
regarding procedures and working
practices, as well as control mechanisms
including recommendations delivered;
Proposal and Action Plan for designing
new procedures and standards in the
operations of the CARM for the
implementation of the newly developed
legislation and drafting (preparation)
new/updated guidelines, instructions,
Reports on the realisation of the Action plans
Adopted manuals, guidelines and instructions
Strategy for further development of the
national excise system
New procedures introduced
Full commitment of the parties involved.
Continuing adherence to agreed policy
objectives
Good and continuous interaction
between the stakeholders relevant to the
economic sector
22
CARM for the implementation of the newly
developed legislation and drafting (preparation)
new/updated guidelines, instructions, manuals and
control procedures in line with the procedures and
best working practices in the EU delivered;
1.7 New/updated procedures designed and
introduced and guidelines, instructions and
manuals drafted in line with the procedures and
working practices on the basis of actual EU
legislation in force, and existing drafts of new
legislation and EU best practice. The deliverables
under this mandatory result should be prepared in
both English and македонски language
Component 2 Strengthened administrative and
operational capacities to implement the excise
legislation
This mandatory result shall be achieved through
the following intermediary results:
2.1 Assessment of the current national
organizational set up, management and control
system conducted and Report delivered;
2.2 Proposal for new excise movement and control
management system and sub-systems and
organizational set up based upon the EU Member
States current best practices and experience in
business process management in the area of excises
drafted.
2.3 Customs Administration Strategy for further
development of the excise system drafted;
2.4 Assistance and guidance to the CARM in
designing, drafting and implementing new excise
movement and control management system and
sub-systems including national excise
computerized movement system provided.
2.5 Training Plan, Training Modules, and Training
Manual related to excise for customs officers
(including those involved in monitoring,
controlling and enforcing of the excise legislation
manuals and control procedures in line
with the procedures and best working
practices in the EU delivered and agreed
upon;
New/updated procedures designed and
introduced and guidelines, instructions
and manuals in accordance with the
Action Plan in line with the procedures
and working practices on the basis of
actual EU legislation in force, and
existing drafts of new legislation and EU
best practiced drafted and prepared in
both English and македонски language.
Component 2 Strengthened administrative
and operational capacities to implement
the excise legislation
Assessment Report of current national
organizational set up, management and
control system delivered;
Proposal on new excise movement and
control management system and sub-
systems and organizational set up based
upon the EU Member States current best
practices and experience in business
process management in the area of
excises drafted.
Customs Administration Strategy for
further development of the excise system
drafted and adopted;
New excise movement and control
management system and sub-systems
including national excise computerized
movement system designed, drafted and
implemented.
Training Plan, Training Modules, and
Training Manual related to excise for
customs officers (including those
23
and procedures, as well as the employees of the
Customs Laboratory), economic operators and
trainers developed and delivered; They should be
prepared in both English and македонски
language;
2.6 Delivery of Training Plan.
involved in monitoring, controlling and
enforcing of the excise legislation and
procedures, as well as the employees of
the customs laboratory), economic
operators and trainers developed in both
English and македонски language;
Number of advice and coaching sessions
delivered;
Tailor made training programme
delivered;
Number of Seminars, workshops and
conferences delivered:
Number of trained officers and traders
Activities Means Costs Assumptions
The Twinning assistance will be provided in the
form of know-how transfer, and will be delivered
through:
- Advice and coaching sessions;
- Tailor made training programme;
- Seminars, workshops and conferences:
- Drafting Legal acts, Guidelines, Manuals,
procedures:
- Development, testing and adjustment;
One Twinning contract
One Member State Project Leader;
One Member State Resident Twinning
Adviser;
A Medium Term Expert for Component 1
A pool of short-term experts.
Total budget:
EUR 947,368
IPA budget:
EUR 900,000
Input from EU MS partner
Continuing commitment of staff and
management
