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									                STANDARD TWINNING PROJECT FICHE



1. Basic Information

1.1 Programme:                IPA National Programme 2008

1.2 Twinning Number:          SR 08 IB FI 01

1.3 Title:                    Harmonization of the Serbian Customs Enforcement
                              Division with the standards, organization and operational
                              methodology of EU enforcement agencies: Component 3 –
                              Risk Analysis and Risk Management and Post Clearance
                              Audit

1.4 Sector:                   Ministry of Finance/Customs Administration

1.5 Beneficiary country: Republic of Serbia

2. Objectives

2.1 Overall Objective(s):

The project aims to support and build up the capacity of the Customs Administration of Serbia
(CAS) by strengthening institution capacity in order to improve the efficiency and effectiveness
of border and inland controls and tax, VAT and customs duties collection in the customs
procedures.

2.2 Project purposes:

Component 1- Risk Analysis and Risk Management (RARM)
To develop appropriate techniques for systematic risk identification and implementation to
limit exposure to risks in accordance with national strategies and based on EU best practices
and

Component 2 – Post Clearance Audit (PCA)
To set up an effective system of post-clearance control and audit service that allows the
customs administration to better implement its tasks (clearance and control of goods, revenue
collection) and to facilitate balancing increasingly free trade with an efficient customs control
system.

2.3   Contribution     to   National     Development                       Plan/Cooperation
Agreement/Association Agreement/Action Plan

SAA

Enhancement of the CAS Risk Analysis and Risk Management along with Post Clearance
Audit will have impact on decrease of customs frauds and irregularities, on the one hand, and
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increase of the volume of collected import duties and number of discovered offences, on the
other hand.
The EU and Serbia, as the SAA parties …”underline their commitment to combat irregularities
and fraud in customs and related matters” (Article 46). Furthermore, in Article 99, it has been
stated that the parties shall establish cooperation to achieve the approximation of the customs
systems of Serbia to those of the Community.

Also, there is an obvious direct link between the effective implementation of the SAA and the
work of the Customs Administration regarding Article 3 (establishment of an effective system
of national export controls of weapons for mass destruction and dual-use goods) Article 18
(establishment of a free trade area between the EU and Serbia) or Articles 84, 85, 86 and 87
(effective and efficient combat and prevention of organized crime and other illegal cross-
border activities such as terrorism, drug trafficking, smuggling, tax evasion, piracy and
counterfeiting and financial crime) and an indirect link regarding Article 9 (conformity with the
WTO provisions, in particular GATT 1994 and GATS). Consequently, a solid implementation
of the Interim Agreement, as well as the implementation of all trade-related parts of the SAA,
very much depends on the overall proper functioning and efficiency of the Serbian Customs
Administration.

The Council of EU – European Partnership for 2008

The European Partnership for 2008 in short-term priorities for the CAS recommended
strengthening the capacity of the customs administration to fight corruption, cross-border
crime and fiscal evasion and strengthen enforcement capacity, especially in the areas of risk
analysis and post-clearance control. As defined by medium-term priorities it is necessary to
ensure continued approximation of customs and taxation as well as other fiscal legislation to
the acquis, and continue to strengthen the administrative capacity to implement this legislation
and to fight corruption, cross-border crime and fiscal evasion.

European Commission - Serbia 2008 Progress Report

”A Risk Management Strategy has been adopted. By using risk analysis, the Customs
Administration achieved good results, especially in the seizure of narcotics and counterfeited
goods. Overall, Serbia is already well advanced in terms of meeting the SAA requirements
and remains committed to reforms in the area of customs. There has been improved IT
support for audit and risk analysis. The enforcement capacity of the Serbian Customs
Administration has improved. However, Serbia's customs infrastructure, customs procedures
and human capital need to be further strengthened. Audits, post clearance controls and
general management need to be based more on mid-term strategies and annual plans, in
order to enhance performance and to ensure consistency in their application.”

IBM National Strategy

In order to help implement the SAA successfully, the Republic of Serbia has adopted the IBM
Strategy (published in the Official Gazette of the Republic of Serbia No. 11/06). This strategy
stipulates the following:

“…The concept of the European Union as regards integrated border management implies that
the borders are to be open for trade and flow of people, for regional cooperation, both within a
region and between regions and the European Union. Regular trans-border communication
helps to facilitate economic development of the whole region and contributes to diminishment
of poverty. At the same time, borders should be closed for criminal and other activities that
jeopardize stability and security in the region. The whole region has to fight against organized

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crime, terrorism, illegal migration and human trafficking, particularly at border crossings”
(Page 6).

“…The integrated border management system will be in accordance with the rules, standards
and recommendations of the European Union for external borders” (Page 25).

Implementation of IBM means strengthening regional security and at the same time identifying
Serbia as a reliable partner to the EU in carrying out its border controls. Again, the role of the
customs administration as one of the four IBM agencies in all this is of the outmost
importance.

Enhancing the Risk Analysis and Risk Management and Post Clearance Audit in the Serbian
Customs Administration will enable customs officers to inspect only targeted shipments at
borders and inland, which will directly contribute to the main objective of the IBM Strategy –
establishment of open but secure borders.

3. Description

3.1 Background and justification:

The Customs Administration of the Republic of Serbia is an administrative body within the
Ministry of Finance. The Customs Law (Official Gazette of the Republic of Serbia No. 73 of
July 18, 2003; 61/05) has been applied since January 1st, 2004 and it was harmonized with
the EU blueprints and the World Trade Organization norms and requirements to a large extent
at that time. According to the Customs Law (Article 252), the Customs Administration is
responsible for:

1. Performing the customs supervision and control of the customs goods determined by this
law and other regulations;
2. Conducting of the customs procedures;
3. calculating, collecting and enforced collecting of import duties and other charges, excise
and turnover taxes, and other charges applicable to imported goods or, where provided for by
special regulations, those applicable to exported goods;
4. Conducting preventive and post-clearance control;
5. issuing of general information on the application of the customs regulations, binding tariff
information and binging origin information, as well as the information on other laws enforced
within the powers of the customs authority;
6. Conducting procedure prescribed by the Law for the purpose of detecting customs
offences, economic offences and crimes;
7. Conducting the administrative procedure in the first and second instances;
8. Conducting the offence procedure in the first instance for offences prescribed by this Law
and other regulation;
9. Conducting the currency control in the international passenger traffic and frontier traffic with
foreign countries;
10. Conducting the control of importation, exportation and transit of goods subject to safety
measures, measures to protect life and health of humans, animals and plants, the
environment, the national heritage, property of historical, artistic or archaeological value and
intellectual or industrial property rights, etc.;
11. Keeping records within the scope of its work;
12. Processing and monitoring of statistic data on imports and exports;
13. Other activities in accordance with the law and other regulations.



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Strengthening the capacity of the CAS will have a direct impact on the prevention and
combating all forms of illegal activities in the Republic of Serbia and across the border. Due to
the fact that Serbia has a very sensitive geopolitical position and represents a transit route for
smuggling different types of goods and persons towards Europe, the project realization will
have a comparable, although indirect, impact on the EU as well.
Considering the anti-fraud activities in relation to the post clearance audit and customs
investigations, it is clear that the results will lead primarily to raising the level of economic
development in the Republic of Serbia, and subsequently in the whole region.
Accession to the EU is a strategic goal for Serbia, which, among many fields, entails
acceptance of the EU system of values and standards in the fields of protection of internal
market’s financial interests and efficient external border controls.
The reforms in Serbia regarding the customs began in 2002 when the EU CAFAO mission
started to provide support for the modernization process, which was intensified in 2005 by
taking part in the Columbus Programme of the World Customs Organization in the process of
implementing standards of modern Customs of the 21st century.
Continuous investments in all areas of the customs operations towards harmonization and
acceptance of the EU best practice and standards resulted in conducting Gap Analysis of the
EU Customs Blueprints - the roadmap for all efficient and effective customs and the situation
in the CAS. The Gap Analysis was prepared in 2008. Furthermore, the Draft of new Customs
Law has been prepared in order to improve the existing procedures and secure higher level of
compliance with the EU legislation. It provides broader and more precise provisions regarding
customs supervision, control and risk analysis. Draft Law is adopted by the Government and it
is passed to Serbian Parliament for adoption. It is expected to be adopted in the first half of
2010.
However, at the national level, Serbia does not have either Single Window or Single
Electronic Window concepts which would significantly increase efficiency and accelerate
procedures for transit, export and import of goods at the border and within the territory of the
Republic of Serbia. Still, with the aim of getting closer to this concept, the CAS is actively
involved in Integrated and Border Management process.

The CAS possesses the most important asset an administration can have; those are high
education, motivation and dedication of the customs officers who are ready to work towards
reaching the common Customs goals and strategies.

Considering global trends in doing business today, the goal of all modern customs authorities
operations is not only to collect duties, but also to facilitate and speed up legal cross-border
flows and at the same time to prevent and combat all illegal cross-border activities. To do this
the capacity of the CAS departments for risk analysis and risk management and post
clearance audit is crucial, founded upon its well trained staff and appropriate, up-to-date
equipment.

According to the Serbian Customs Law the role of the CAS, among others, is to prevent
human trafficking, illegal trade in arms, ammunition or explosive material, unauthorized
production and circulation of narcotics, money forgery and laundering and smuggling of
cultural heritage items, currency and goods. Considering this area as one of the important
elements of EU accession process, European Commission and Serbian Government included
in 2008 IPA National programme for Serbia, project: “Harmonization of the Serbian Customs
Enforcement Division with the standards, organization and operational methodology of EU
enforcement agencies”

Taking into account that the Customs RARM and PCA are specific customs areas, which
require sound knowledge of all Customs procedures, it is necessary that expertise is provided

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by the public sector of MS. This project is envisaged to be implemented through twinning
agreement and not as technical assistance, because it is conceived as an instrument for
strengthening the administrative capacities of the CAS to implement the Community
legislation in the above mentioned areas.

This Twinning fiche includes only one component of entire project funded through IPA 2008
budget in total amount of 8.9 million Euros. Other project components are:

       Training of Enforcement Division officers by - Direct GA with UNODC
       Supply of equipment for special use (such as mobile scanners, mobile X Ray vehicles,
       stationary ionization monitors, narcotics and explosives detectors)
       Twinning for customs officers’ collection of excises and VAT in the course of import of
       goods.

Aiming at effective project implementation, this Twinning fiche has been divided into two
components:

Component 1 – Risk Analysis and Risk Management (RARM) and
Component 2 – Post Clearance Audit (PCA)

All project components are complementary and this Twinning is closely related to the training
activities to be provided by the UNODC through another contract.

Risk Analysis and Management

The institute of Risk Analysis was introduced into the Serbian customs system at the end of
2003 through cooperation with the EU CAFAO (Customs and Fiscal Assistance Office). In that
period, Belgrade Airport BCP, Horgos BCP and Kelebija BCP were chosen to start applying
the selective examination based on identified risk indicators. RARM was gradually developed,
but within a few years it became obvious that it wasn’t any more in accordance with the
modern safety and security requirements and that it is not flexible enough for modern Risk
Analysis standards. This was also confirmed by the Diagnostic Mission recommendations
which focused seriously on this area as one of the four key elements of the WCO Framework
of Standards.

First in 2004 within the CAS, Risk Analysis Commission was set up and afterwards in 2005
Risk Analysis Group was established within the Audit, Internal Control and Analytics Division.
Since 2008, as per the latest HR plan RARM Department was integrated into the Enforcement
Division alongside with other 4 Departments: Anti-smuggling, Customs Investigations,
Intellectual Property Rights and Intelligence.

The project of introduction of risk analysis into the CAS activities in all operational units
started jointly with the application of the new Customs Law on January 1, 2004. In that period,
only the random selection criterion was used, when the percentage of examination of all
documents was set to 50. That year, the overall number of checked customs documents for
all types of imports and exports was 64% (50% random selection + 14% Customs Officer’s
decision). Introduction of “Smart Criteria” into the Information System of Serbian Customs
Administration (hereinafter the CAS IS) – “Consignee”, “Consignor”, “Declarant”, “Tariff”,
“Country of Origin” and “Combined”. Percentage of examination set by Random Criterion was
reduced, thus in the period from 2005 to 2007 the overall percentage of examinations of
documents for the transit procedures was around 9 and for all other customs procedures
(import, export, re-export, transit, warehousing, temporary admission, inward and outward
processing, release of goods for free circulation and other procedures) was around 18. By
using criterion “Consignee” through the CAS Information System it was only possible to send
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messages (78 characters long) to Customs Officers describing risk type or giving instructions
for further communication. In 2008 the percentage of examinations was 19. Still RARM needs
to develop a database on stakeholders of customs procedure and high-risk goods. Overall IT
support is main constraint for successful implementation of risk management process taking
into account all necessary conditions.

According to the EU Customs Strategy the development of risk management is a prerequisite
for addressing new challenge, achieving progress on security level and to achieve
equivalence in the application of customs controls. Risk management is the key to the overall
reconciliation of the requirements of enforcement, security and facilitation.

Identification, analysis, evaluation, treatment, monitoring and reviewing of risks affects all
customs areas. Front-line control, enforcement units, intelligence capabilities and supporting
infrastructure including legal, IT and training services benefit from efficient risk management
system. RARM actively cooperates and exchanges strategic, regional and local information
with all relevant CAS departments on regular basis. Clear indicators that should be set out
throughout this project will lead to a successful post clearance audit activity while the
feedback information from PCA will confirm the accuracy of previously determined risk
profiles.

From the legal perspective, RARM was introduced according to the Serbian Customs Law
which has been in force since 2004. This law also envisaged that customs procedures had to
be implemented in compliance with the risk analysis and management principle.

Due to lack of experience and being a modern and new customs area, RARM institute in the
CAS still seeks a lot of development. So far, development directions of risk analysis and
management and all measures to be undertaken, are created by using the best practice
applied in the European Union - the EU Blueprints, Pathways to Modern Customs and taking
into account all circumstances and obstacles to this development.

Thus the GAP analysis of the EU Customs Blueprints and RARM in the CAS has been
prepared. In this respect, on the basis of compared key indicators of the Risk Management
written in the EU Customs Blueprints and the current situation in the CAS RARM all
deficiencies are identified. Furthermore, the RARM Department prepared the Risk Analysis
and Risk Management Strategy, adopted by the CAS in September, 2008.

The Framework of the CAS RARM Strategy is based on the following documents: the National
Strategy for the Accession of Serbia to the European Union, the Principles, Priorities and
Conditions contained in the European Partnership with Serbia, the Integrated Border
Management National Strategy and the WCO SAFE Framework of Standards to secure and
facilitate global trade.

The strategic orientation of the CAS needs to be directed to further enhancement of the risk
analysis and management system, which is the most important tool of the Customs service at
all stages of customs procedure, enabling the rational allocation of the available resources
with the best possible impact. Considering the new measures, working standards and data
exchange at the EU level, the CAS needs to make adjustments to the national system of risk
analysis and management (treatment of common profiles of risks and messages). Special
attention has to be paid to the high-risk goods and goods subject to certain restrictions.
Moreover, the RARM in the CAS has to have stronger IT support than it has at the moment.

There is IT Division within the CAS, which is involved in the process of development of the IT
support for RARM, but the capacities are limited and it cannot provide proper tools for quality
processing of available data.
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During the above mentioned Diagnostic Mission in the CAS, the WCO experts recognized
insufficient IT support for RARM on the one hand and all IT Division’s limits on the other hand,
and recommended:

       •   introduction of a brand new Risk Analysis IT system
       •   to update the current CAS Risk Analysis IT system as much as it is feasible and
           cost effective, at the mean time.

IT Division developed RARM module within the Information System of the Serbian Customs.
Previously IBM CSP was used. Presently, the complete source is migrated to VAGEN and it
works on IBM ZOS and AS 400 i series. It is intended to migrate furthermore in EGL.

As above mentioned, IT module for RARM provides the possibility to target all national
documents: transit documents and documents for other customs procedures, using 6 criteria
Due to the limited data set processed in the CAS IS, TIR carnets may be treated through 2
parameters (country and vehicle registration plates). Currently, introduction of new criterion
(“Combined II”) is being tested. Besides, IT programme for RARM has been upgraded
regarding the messages for examination, creation reports on findings. There are not any
technical possibilities for its further development. However, RARM requires as much
automation of risk analysis and management as possible. That is why it is expected from the
Twining partner to prepare the proposal of characteristics and performances of the RARM
new, state-of-art software in line with improved procedures and trends in RARM.

                                Risk Analysis Module in CSIS
                                                                  JCI
                                                                  SAD
                       SAD
                                                                                            Acceptance of
                                                                                            the Declaration
                       Acceptance of Declaration
                                                                                           Risk
                       Risk Analysis                            Type of                    Analysis
                                                                Examination

                       Type of examination
                                                                    Creation of
                                                                    the Report on
                       Creation of the report                       Examination


                                                                                               Calculation
                       Report                                     Report on                    of Taxes
                                                                  Examination

                       Offence procedure                                                       Invoice
                                                                   Offence
                       Release of customs goods                    Procedure
                                                                                    Release of goods into
                                                                                    free circulation


                                                Risk Analysis




Adoption and strengthening of risk management and its real integration into the working
culture of the customs service as an organizational philosophy is essential since it provides
quantifiable improvements in the effectiveness and efficiency of the administration.



Post Clearance Audit
The concept of post clearance audit allows faster clearance of the goods with the audit
examination being performed subsequently at the importers' premises (traditionally, customs
documentary checking and physical examination connected with importations and
exportations takes place before the goods are released). The amount of importations selected
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for audit will depend on the customs resources available with the main effort directed at
known areas of risk. The overall aim is to cover the activities of all major importers over a
reasonable period of time. Where irregularities are discovered the audit can be extended to
include all the importations made by the particular importer under examination.

The PCA institute in the CAS started developing at the end of 2006, when the PCA team of 4
people was established. The team closely cooperated with the CAFAO experts on
establishment of the PCA Department till May 2008, when it became operational. During that
period the guide “PCA Introduction” was written. Since the CAFAO mission was completed in
Serbia in 2007, cooperation in this field continued with the EU technical assistance TACTA.
Roles and responsibilities of the CAS PCA, laid down in the Post Clearance Audit Rulebook,
are:

   •   control of import after release of goods for free circulation,
   •   control of special procedures (transit, customs warehousing, inward processing,
       outward processing, processing under customs control and temporary admission)
   •   pre-control of legal persons in order to approve their favorable treatment (AEO, in-
       house clearance, export control of dual use goods)

Legislation concernig PCA, as it has been laid down in the Serbian Customs Law, is
harmonized with relevant EU legislation in all crucial elements. However, it is important to
point out that PCA in Serbia may take place within the period of 5 years from the date of
acceptance of the declaration according to Article 105 of Customs Law.

In the first quarter of 2009, the total number of conducted post clearance controls was 101.

The CAS PCA prepared GAP analysis of its current state and the EU Customs Blueprints for
Post Clearance Control and Audit using the same principle as the RARM Department..

The PCA Department closely cooperates with other departments which are also part of the
Tariffs Affairs Division (Customs Value Department, Origin of Goods Department, Customs
Tariff Department), as well as with Department/Units for Administrative and Offence
Procedures and all Customs Houses and related Customs Posts.

Development of the IT programme for the purposes of post clearance audit began during
2008. The programme is designed to enable daily communication between the PCA
Department and regional centers and for the creation of annual post clearance audit plan. The
programme was created by the CAS PCA Department and developed by Microsoft, with the
assistance of the CAS IT Department.

The basic programme’s functions are: selection of companies for the post clearance audit,
creation of the companies’ files which were subject to post clearance audit, recording the job
performance of each auditor, recording data on all conducted post clearance controls, that is,
reporting on the findings of post clearance controls and automatic assignment of work orders
for carrying out particular post clearance controls.

Currently, the programme is in the testing phase and the data available for the operational
work refer to the year 2008. The training for application of the programme has already been
held, while the preparation of the user manual is underway.

By the time the Twinning project is to be implemented, the programme testing phase will be
over and its possible shortcomings and oversights will be identified. The short-term and
medium-term experts are expected to support CAS PCA experts to further enhance the
programme.
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In Serbia, there is a legal basis necessary to conduct PCA. However, Serbia is in
development phase of the PCA and therefore the CAS still doesn’t have a sufficient number of
well-trained and experienced staff in this field. It is also expected that the current legislative
ground will eventually change in the process of approximation of Serbian customs legislation
to the modernised EU Customs Code from June 2008, requiring additional skills and
knowledge and additional alignment of national procedures for the PCA. For these reasons,
the CAS would need to devote substantial efforts in order to train its PCA staff in a number of
different sub-PCA areas. This would require devising of the relevant PCA training modules
(basic and specialised), conducting the training (especially in the areas of IT business
systems of biggest companies, accounting, customs value, foreign trade and foreign currency
transactions of companies) and revision of the legislation.

Regarding the PCA, Serbia is in a critical phase, due to the reduction of number of customs
controls at the borders as well as inland and insufficient number of employees in the PCA
units. On a positive side, specialised organisational PCA units within the CAS exist now.

However, PCA in the CAS needs to be strengthened just as it has been stressed in the EU
Progress Report for Serbia 2008 (page 2 of the Fiche). PCA should be strategically guided by
a separate audit strategy, as a part of an overall CAS strategy that would include the risk
analysis (i.e. selectivity approach), strengthening of the support of the CAS IS in order to
computerise PCA controls, as it has been recommended by the Report. This project will draw
special attention to these issues.

Bearing in mind the EU best practices, project activities of this Twinning are defined in
accordance with the EU Customs Blueprints for risk analysis and management and post
clearance audit.

All Customs administrations of MS have an equal opportunity to become twinning partner of
the CAS in this project, in an open and transparent selection process. The best expertise and
commitment towards achieving mandatory results will be considered and valued based on
objective criteria. For implementation of the twinning project the CAS is also open for the
possibility of having MS consortium as a twinning partner.
3.2 Linked activities (other international and national initiatives):

In the previous period Republic of Serbia benefited from the EU-funded CARDS programme
that supported regional actions such as the promotion of integrated border management,
development of modern customs procedures and building the capacities of State institutions.
So far CAS received following assistance:

CAFAO, through the EU funding, assisted the CAS in its modernization process from 2002 to
2008. CAFAO assistance has been particularly useful in introducing new institutes (such as
RARM and PCA) and operational methods.

The CAS is active participant of the River Information System (RIS) which is in charge of
continuous surveillance of the movement of all vessels on the Danube in real time. The RIS
project has impact on the RARM process.

In the area of cooperation with the World Customs Organization (WCO), since 2006 The CAS
has participated in the Columbus Programme for capacity building, with the aim to implement
the Framework of Standards to Secure and Facilitate Trade (WCO SAFE FoS). The WCO
Diagnostic Missions were carried out, Action Plan for Realization of Recommendations was
prepared and Recommendations on Risk Management, Risk Analysis and Information
Technology Support were integrated into the CAS RARM Strategy.


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In the area of risk management, since 2006 the CAS participates in the EU Cooperation under
the Long Term Project (LTP)- Assistance in RARM Strategy and export control of Dual-use
Goods, implemented by Stockholm International Peace Research Institute (SIPRI) and
Federal Office of Economics and Export Control (BAFA). Furthermore, RARM are included
into Project on Export Controls of Arms, Military Equipment and Dual-use Goods and Project
on Investigating and Prosecuting Export Control Violations, implemented by SIPRI and Export
Control and Related Border Security Programme (EXBS).

Since 2007 the CAS is engaged within the Project on Risk Assessment for Customs in
Western Balkans (RACWeB) which aims to improve the Western Balkans and EU countries’
customs efficiency and transparency in risk assessment- inward processing by enhancing the
identification of risk profiles through the utilization of data mining techniques and by
developing an advanced, web-based risk assessment service in customs declarations. Such a
service clearly does not intend to replace, but to complement current and future national
customs systems.

In order to meet challenges and threats in a rapidly changing customs environment it is
necessary to optimize the existing tools. Therefore, the CAS is involved in the WCO Global
Information and Intelligence Strategy Project Group by developing the Standardized Risk
Assessments document. The advantages of Customs Enforcement Network (CEN),
CENCOMM and future nCEN instruments are also used by the CAS.

Since May 2008 in connection with RARM activities the implementation of South-East Europe
Messaging System (SEMS) project, South-East European Customs and Taxation Project
(SEECAT) and Systematic Electronic Exchange of Data (SEED) which are funded by the
European Commission and managed by the I.T.A.C.A. (International Technical Assistance to
Customs and Tax Administrations) consortium, provides positive results.

In September 2008 a TAIEX workshop was organized concerning cooperation between
Customs- Risk Analysis Department and inspection agencies.

The CAFAO assisted the CAS in establishing the PCA Department and writing the Guide on
Introduction of PCA and afterwards TACTA, as an EU-funded project, proceeded to develop
PCA. Beside the above mentioned Guide, the CAFAO organized study visits to Hungarian
and Lithuanian Customs PCA units for 10 people.

In 2008, when the PCA Department was established, the following training took place:

       •   Introduction of PCA delivered by the TACTA; all employees – 35; 5 working days
       •   Work on PCs with basic software packages delivered by the TACTA; all employees
           (35); 2 working days.

Also, as a regional initiative, TACTA organized 2 days benchmarking meetings for 5 Customs
Administrations in the Western Balkans (Customs of Serbia, Montenegro, Bosnia and
Herzegovina, Albania and UNMIK-Kosovo), where PCA Departments of the above mentioned
Customs Administrations exchanged the experience in recent achievements in this area.

Тhe CAS PCA Department organized 2 seminars on their own, engaging customs officers,
who previously worked in the business sector, as lecturers for the basic training on accounting
and instruments of international payment operations, and customs officer, who previously
worked in the Origin of Goods Department to give a lecture on origin of goods. Both seminars
lasted all together 4 working days and all PCA staff participated in them. Bearing in mind that
insufficient attention was devoted to the on-the-job training of PCA auditors in previous time
period, this activity will be specially highlighted through this Twinning project.
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Within IPA 2007 national programme for Serbia, Ministry of Interior will implement project
“Improving Border Control Standards“. The purpos of this project is to introduce EU standards
of Border Security and Management at Serbian borders and enhance the flow of commerce,
trade and persons and reduce criminal activities. The project will be implemented throug one
twinning and one supples contract.

The CAS is at the early stage of implementation of the IPA 2007 project - New Computerized
Transit System of the European Union (NCTS), in total amount of 1,500,000 €, which is
related to the application of RARM system.

Overlaps with the previous linked projects are avoided because this twinning is rational
continuation of the previous coherent introduction and modernization projects of RARM and
PCA, mostly assisted by CAFAO. Moreover, there are no overlaps with the ongoing projects
which involve RARM and PCA because those projects do not impose further development
neither of RARM nor PCA crucially. Additionally, financial resources for modernization of
RARM and PCA are not sought from other donors.

3.3 Results:

Component 1 – RARM

1.1. Existing legislation in force reviewed and new national customs by-laws drafted in line with
     international legislation blueprint based on the results of gap analysis of current legislation.
    Indicators:
    Gap analysis prepared and adopted
    New/amended bylaws prepared and in the procedure for adoption

1.2. Harmonized Model of Risk Management within CAS established in accordance with
     international standards
    Indicators:
    Multi-level review conducted and risk areas defined on all levels
    Proposal of characteristics and performances of the new state-of-art software prepared
    Common priority areas are developed and implemented
    Advance analytical and intelligence techniques for risk treatment are prepared
    Local risk profiles are prepared
    Analytical and monitoring mechanisms are in place on all organizational levels of CAS

1.3. Communication and coordination between the intelligence functions within CAS and with
     relevant national agencies is enhanced
     Indicators:
    Contact points for interagency cooperation are appointed and have regular cooperation
    Contact points for internal exchange of information are appointed
    Internal and external data exchange procedures prepared

1.4. Cooperation between CAS and trade organizations is transparent, formalized and
     contributes to effectiveness of RARM
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   Indicators:
   Memorandum of Understanding signed with trade organizations
   Contact point for business sector appointed within CAS
   Base for the implementation of AEO prepared

1.5. Knowledge, skills and experiences of CAS employees in implementation of RARM is
     enhanced
   Indicators:
   New training modules within the Vocational Training Centre established
   20 staff of RARM trained
   30 staff from other departments trained
   ToT conducted
   Gained knowledge and experience from study visits and internships transferred through
   the presentations and training

Component 2 – PCA

2.1. Serbian PCA strategy prepared and legislative and organizational framework improved
   Indicators:
   Draft of PCA strategy prepared
     Necessary bylaws drafted
2.2. External auditors and their managers have enough organizational and technical
    capacities to carry out their duties in PCA with the maximum efficiency and effectiveness
   Indicators:
   Internal rule book for external auditors prepared
   Long and short term plans for PCA prepared and implemented
   Protocols for horizontal and vertical coordination in place
   Necessary improvements of IT system proposed and implemented according to capacities
   available

2.3. Knowledge, skills and experiences of CAS employees in implementation of PCA is
    enhanced

    Indicators:
   All PCA auditors trained in specific PCA areas
    5 PCA auditors (1 from PCA HQ Department + 4 from PCA Regional Centers) trained for
   creation of PCA plans
   PCA trainers selected
   Exchange of experience through study tours and internships secured
   Long-term and medium-term training programmes prepared
   Gained knowledge and experience from study visits and internships transferred through
   the presentations and training

                                                                                           12
Fulfillment of defined results is joint obligation of the CAS and twinning partner.

3.4 Activities:

For the Results of the Project Component 1 - Efficient and effective RARM developed -
perform the following activities:

Activities for Result 1.1.

1.1.1. Conduct review of the current normative framework for RARM, it’s compliance with EU
standards and give recommendations
1.1.2. Prepare gap analysis of the capacities of CAS to implement EU standards and best
practices in daily operations
1.1.3. Prepare drafts/amendment of necessary customs bylaws, (The Regulation on Cargo
Inspection, Amendment to the Regulation on the Layout, Content and the way of submitting
and filling in of the Declaration and other Documents used in the Customs Procedure,
Instructions on Contents and the Risk Analysis and Management Modes within the CAS,
Instructions for Customs Procedures at the Border Crossing Points, Instruction for the
Customs Procedures on the submitted declarations)

Activities for Result 1.2.

1.2.1. Conduct multi-level review of all available information for operational purposes, areas
with potential to avoid or evade the customs enforcement efforts and potential deficiencies
within the CAS in this respect
1.2.2. Review of the structure of the CAS IS and the current state of the RARM programme in
the CAS IS
1.2.3. Prepare proposal of characteristics and performances of the RARM new modernised
software in line with improved procedures and trends in RARM
1.2.4. Design a Harmonized Model of Risk Management that will include the minimum
standards of control, based on specific indicators in order to ensure that passengers and
traders are treated uniformly and develop and implement common priority control areas, joint
risk analysis and uniform profiles on the central level
1.2.5. Prepare and implement local risk profiles for each location taking into account economic
and other specifics of the region concerned
1.2.6. Develop and implement techniques for risk treatment in order to prevent the risks from
occurring or to minimize the consequences
1.2.7. Prepare and implement proper analysis mechanism which enables correct selection of
consignments for customs examination
1.2.8. Preparation of a monitoring and review mechanisms of the performance, effectiveness
and efficiency of risk management system and changes that might affect it
Activities for Result 1.3.

1.3.1. Assessment of internal and external coordination and communication mechanisms and
protocols with key institutions and agencies
1.3.2. Establishment of consultation mechanisms for improvement of external information flow
with key institutions
1.3.3. Preparation of new protocols and procedures for internal and external data exchange
1.3.4. Introduction of institutional framework and definition of procedures regarding joint and
coordinated controls and operations based on common risk analysis process

Activities for Result 1.4.


                                                                                            13
1.4.1. Based on gap analyses, upgrade capacities for the receipt of relevant information from
the business community as a priority of the WCO SAFE FoS customs - business
1.4.2. Establish consultation and coordination mechanism with representatives of trade
organizations, prepare and implement new MoU regarding access to trade information
1.4.3. Preparation of solid base for the implementation of Authorized Economic Operator

Activities for Result 1.5.

1.5.1. Preparation of new training module on RARM and course materials in order to include it
in the curriculum of the CAS Vocational Training Centre
1.5.2. Organize series of seminars, workshops, courses and on-the-job trainings based on
prepared training module
1.5.3. Conduct Train the Trainers course and prepare the ToT Handbook
1.5.4. Organize study visit for group of employees involved in RARM to MS customs
administration
1.5.5. Organize internship for selected trainees in Customs Administration of MS


For the Results of the Project Component 2 - Efficient and effective PCA developed -
perform the following activities:

Activities for Result 2.1.

2.1.1. Review current normative framework for implementation of PCA comparing it with the
EU legislation framework in the area of PCA and draft necessary provisions concerning PCA
2.1.2. Prepare PCA implementation gap analysis from the perspective of institutional,
organizational, HRM and communication improvement on the basis of existing gap analysis of
the EU Blueprints and PCA in the CAS
2.1.3. Create Serbian PCA strategy;
.
Activities for Result 2.2.

2.2.1. Prepare the external auditors’ internal rule book;
2.2.2. Provide practical assistance in performing post clearance controls and audits based on
the prepared PCA implementation gap analysis
2.2.3. Create the long and short term plans for PCA
2.2.4. Establish a coordination mechanism with all relevant CAS departments and other
relevant institutions and agencies (e.g. Tax Administration) and prepare relevant protocol of
horizontal and vertical communication regarding the flow of information
2.2.5. Prepare proposals and support necessary upgrade of current IT system in line with
improved procedures and trends in PCA;

Activities for Result 2.3.

2.3.1. Create the long-term and medium-term training programmes for external auditors
2.3.2. Organize series of training events, workshops, seminars and on-the-job trainings
(especially in the area of contemporary IT business systems of the biggest companies,
accounting, customs value, foreign trade and foreign currency transactions of companies);
2.3.3 Select and train CAS PCA long-term trainers
2.3.4. Organize study visits to the EU Customs Administrations in order to gain practical
experience on conducting PCA controls in the EU Member States
2.3.5. Organise internship for selected trainees in Customs Administration of MS


                                                                                          14
The implementation of the project will follow the framework of the Work plan that will be
developed in close cooperation and consultation between MS, BC and the EC.
It is expected that MS twinning partner team of experts will be involved in the activities on the
central level of CAS departments as well as for the field visits of CAS units. They will be
involved in wide range of training/coaching activities. MS twinning partner will also carry out
preparatory activities for study visits and internships envisaged for both of the components of
this twinning.

The BC CAS administration will ensure that sufficient time and other resources are allocated
for its staff to be involved in implementation of agreed activities. It will also facilitate
coordination and communication within all departments of CAS and other institutions and
organizations regarding smooth implementation of project activities. Existing capacities of
CAS will be available for implementation of training activities (premises, accommodation and
additional travel expenses)

3.5 Means/ Input from the MS Partner Administration:

3.5.1 Profile and tasks of the Project Leader

MS Project Leader:

The Project Leader 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, trough proposed activities. He will
also be responsible for modifications of Work plan in accordance with identification of needs in
the life time of the Project and in this way ensure, that experts input and distribution of their
working days will be used in the most efficient and effective way.

The Project Leader will have the following profile:

•   High-ranking official with ability to call on short term experts in support of the efficient
    implementation of the project;
•   University degree
•   Experiences in management and control and good leadership and organizational skills:
    managing or assisting in management in at least 2 projects.
•   Familiar with twinning rules and procedures
•   Minimum of 7 years of professional experience in Customs Administration of selected MS
    is requested;
•   Experiences in work in international and multicultural environment (involvement in at least
    2 EU funded projects is required).
•   Familiar with the relevant EU legislation in the field of customs
•   Capable of unblocking any problems at highest level
•   Excellent knowledge of all processes in the area of customs legislation and strengthening
    the administrative capacity of the customs administration;
•   Overall understanding of the problems and solutions in the sector;
•   Fluency in English

BC Project Leader:

The BC Project Leader will manage a project team at the Serbian side and will assure that the
decision makers at the Ministry 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
                                                                                              15
project. He/she will be also responsible for drafting reports and other documents, related to
project management at the Serbian side and will chair Steering Committee meetings.

3.5.2 Profile and tasks of the RTA

RTA must have broad/general knowledge in the area of customs- risk analysis and post
clearance audit, which will enable him/her to organise interdisciplinary team for successful
implementation of the project. He/she should be an employee of the EU Customs
Administration. The duration of her/his secondment will last at least 12 consecutive months.

His/her tasks will also include:
• Project management and coordination of the activities of the team members in line with
    the agreed work programme to enable timely completion of project results;
• Nomination, mobilization and supervision of the short-term experts, together with the
    Project Leader;
• Facilitation of the contacts with peer institutions in EU member states in order to stimulate
    a proper exchange of information and data;
• Assisting in the preparation of all strategic project documents and provision of advisory
    services in project fields;
• Coordinating and organization of the project activities, monitoring the delivery of the
    outputs according to the agreed timetable and ensuring the proper quality of the outputs;
• Preparation of the meetings of the Project Steering Committee and reporting on the
    project progress;
• Preparation of the project progress reports and supervision of the preparation and
    production of tasks reports
• Identifying and reporting to the Contracting authority, at early stage, all difficulties that may
    jeopardize the implementation of the project and the achievement of its results.

Minimum qualifications required:

•   At least seven (7) years working in Customs Administration of selected Member state
•   University degree (BSc.) is an advantage
•   Experience in similar technical and legal assistance assignments will be considered as
    asset
•   Experiences in work in international and multicultural environment
•   Comparative knowledge of other MS systems
•   Excellent knowledge of English, since the working language will be English.
•   Skills: good communication and coordination skills.



3.5.3 Profile and tasks of the short-term and medium-term experts

Short- term and medium-term experts

Team of short- term and medium-term experts should be comprised of the experts from the
following areas:
     - customs affairs
     - enforcement
     - customs legislation and procedures
     - risk analysis and management
     - post clearance audit
     - accounting
                                                                                                16
   -   foreign currency transactions
   -   customs value
   -   functioning/operation of commercial ERP IT systems
   -   IT

Minimum qualifications required:
• Excellent knowledge of English, since the working language will be English
• Knowledge of the Serbian language could be an asset
• University degree is an advantage
• Experience in the EU Customs Blueprints
• Experience in organizing and providing training, consultancy, needs and capacity
   assessment
• Proven contractual relation to public administration or mandated body

4. Institutional Framework

The CAS is the administration within the Ministry of Finance. The CAS is organized at central
- Headquarters and regional/local level - Customs Houses, customs posts and it consists of 6
following divisions: Customs Affairs and International Customs Cooperation, Tariff Affairs, HR
and General Affairs, Investments, Financial and Legal Affairs, Enforcement and IT and 13
regional customs houses covering the whole territory of Serbia.
The detailed organizational scheme of the CAS attached within this Fiche as per Annex V.
The CAS employs 2689 customs officers. The CAS customs officers operate at 76 border
crossing points and 72 customs posts protecting 2114 km of land and river border. The CAS
enforces the Customs Law and all other relevant laws (as specified in Annex IV) at the border
and inland.
Performing their duties customs officers closely cooperate with representatives of:
     1. the Ministry of Finance (such as Tax Administration, Anti-money Laundering
         Administration, Foreign Exchange Inspectorate, Free Zones Administration),
     2. the Ministry of Interior, especially Border Police, Service for combating organize
         crime, Crime Police.
     3. the Ministry of Agriculture, Forestry and Water Management (Vet and Phyto
         Inspection Agencies)
     4. the Ministry of Health (Sanitary Inspection Agency, Sector for Drugs and Medical
         Devices)
     5. the Ministry of Trade and Services (Trade Inspection Agency)
     6. the Ministry of Environment and Spatial Planning (Control and Supervision Sector)
     7. the Ministry of Economy and Regional Development
     8. the Institute of Intellectual Property Rights
The risk management in the CAS is performed at three levels: national – the Headquarters;
regional – Customs Houses and local – Customs Posts/Units. The entry of criteria by higher
levels has stronger power, because it refers to the whole country, the lower levels can treat
more specific criteria (risk profiles).

 The total number of employees within RARM Department (the CAS HQ and regional
coordinators) is 20 and 8 of them work as customs analysts in HQ and 12 as regional
coordinators in Customs Houses. At local level, chiefs of Customs Posts/Units perform risk
analysis and management along with their daily duties and according to the HR structure, they
are positioned within related Customs House and not to the RARM Department. This number
of RARM customs officers is insufficient for complex duties and assignments that need to be
carried out. Moreover, restructuring of the department and introduction of a new
organizational unit within the department is planned.

                                                                                           17
The PCA has been established as a Department in the CAS HQ at central level, within the
Tariff Affairs Division. However, it also performs its tasks in 4 regional centers: Beograd, Novi
Sad, Kraljevo and Nis, which are functionally related to the PCA Department. According to the
HR plan, all PCA units should employ 54 officers, but currently there are 34.

Concerning the relation between the PCA Department and the Risk Analysis and
Management Department, it has been in the phase of establishing the closer operative
cooperation.

5. Budget

The maximum total budget for the twinning covenant is 1.4 million EUR.


6. Implementation Arrangements

6.1 Implementing Agency

       Delegation of the European Commission to the Republic of Serbia
       Contact person:
       Mr. Gianluca Vannini, Project Manager – Operations I
       Good Governance and Civil Society
       Address: Vladimira Popovića 40
       Tel.: +381 11 3083 298
       Fax.: +381 11 3083 201
       E-mail: gianluca.vannini@ec.europa.eu


6.2 Main counterpart in the BC
Main Counterpart in the BC:

       BC Project Leader
       Mr. Milorad ðaković
       Head of PCA Department
       Serbian Custom Administration
       Address: Boul. Zorana ðinñića 155a
       Tel.: +381 11 201 58 31
       Fax.: +381 11 2699 722
       E-mail: djakovicm@carina.rs

       RTA counterpart- Component 1- RARM
       Ms. Dijana Zdravković
       Head of Projects Group
       Serbian Customs Administration
       Address: Boul. Zorana ðinñića 155a
       Tel.: +381 11 201 58 49
       Fax.: +381 11 2695 218
       E-mail: zdravkovicd@carina.rs

       RTA counterpart- Component 2- PCA
       Mr. Ljubomir Karan

                                                                                              18
       Post Clearance Auditor
       Serbian Customs Administration
       Address: Boul. Zorana ðinñića 155a
       Tel.: +381 11 201 59 71
       Fax.: + 381 11 2699 722
       E-mail: karanlj@carina.rs

A Project Steering Committee (PSC) will be established for the direct control and supervision
of the project implementation. The PSC will be responsible for the overall quality of project
implementation and provide strategic direction. The Committee will ensure that the project
outputs and goals are met in time, approve work plans and reports, offer guidance and advise
on project activities. The Committee will meet on quarterly basis.

Members of the PSC will be representatives of all CAS divisions, since the CAS gives high
priority to this Project. Mainly the PSC will be composed of the representatives of the CAS key
Departments for the Project implementation – RARM and PCA. EC Delegation will be invited
as an observer. The EC Delegation should provide guidance on project monitoring and
evaluation respectively. The PSC will be chaired by the BC Project Leader.

6.3 Contracts
One Twinning Contract

7. Implementation Schedule (indicative)

7.1 Launching of the call for proposals: September 2009
7.2 Start of project activities: June 2010
7.3 Project completion: January 2012
7.4 Duration of the implementation period: 21 months; 18 months for the
implementation of the activities and 3 months for the starting up and closure of the Action.
8. Sustainability

By this project, administrative capacities of the CAS will be enhanced in the sense of
strengthening the ability of the CAS to apply EU standards and to perform its tasks in
accordance with the EU best practice, especially in the area of risk analysis and risk
management and post clearance audit.
The competence built up throughout this project is in the long-term function of approximation
of the Serbian customs system to the EU customs systems.
Sustainability, after project completion, especially for the CAS RARM and PCA, is ensured by:
    • Implementation of created PCA strategy, which are foreseen to be written taking into
        account the EU standard for this areas;
    • Conducting the tasks in line with PCA internal rule book and or amended RARM
        bylaws, which are to be prepared during the project implementation;
    • Maintaining the IT programme which is to be upgraded;
    • Selection of the CAS trainers whose roles will be to update gained knowledge on a
        permanent basis and to transfer/share them with other customs officers;
    • Performing PCA audits according to developed plans.

Regarding recurrent cost implications there are not any upon the implementation of project.

9. Crosscutting issues

Equal Opportunity
                                                                                               19
Participation in the project will require professional qualifications and competence in the
particular area and will allow an equal opportunity for women and men to participate in
implementation of the project. For example, the selection of the CAS trainers will not be based
upon gender criteria, but according to their knowledge, experience and capability to train other
customs officers.

The CAS has an equal opportunity policy with respect to recruitment and promotion. This is
demonstrated by the fact that in the CAS HQ 225 women are employed within the total of 448
staff. Also, within the CAS many positions at all levels of management are held by female
staff.

Environment

Project implementation will have no harmful effect on the environment. Generally, introducing
better controls of illicit trade and smuggling will prevent trafficking of hazardous and
dangerous materials and thus increase environmental protection. More specifically, education
and training activities will also address the growing presence of organized crime in the area of
environment through, for example, illegal import and export of waste; disposal of hazardous
waste and movement of ozone depleting substances. The project emphasizes environmental
protection and will endeavour to ensure that proper safety standards are secured through
tighter control of these substances at the borders. Also, the project team will use electronic
method of communication, the printing will be reduced and recycled paper will be used.
Therefore, the project takes due cognizance to environmental issues.

Minority and vulnerable groups

Customs procedures, whether conducted at borders or inland of the territory of Serbia, are
performed equally for all participants in customs procedures. Furthermore, in the case of
discovering any discrepancies in them, Serbian customs officers act according to the Customs
Law and other relevant legislation, which do not recognize belonging to any group (minority,
majority). Simply said, person who brakes any legislation regarding performance of customs
duties and tasks is treated in line with the conducted violations, regardless of her/his personal
characteristics and/or belonging to any group.

Concerning the vulnerable groups, it needs to be stressed that enhancing the CAS capacities
leads to stronger controls at BCPs and inland, which will improve combating human
trafficking. It is known that vulnerable people in every sense (e.g. women and children) are
most often being targeted as victims of human trafficking.

Bearing all this in mind, it is clear that non-discriminatory principles will be fully observed
throughout implementation of the project.

10. Conditionality and sequencing

The Government of the Republic of Serbia continues to demonstrate its commitment to adopt
and implement the EU acquis and standards in the field of customs. Capacity building in the
CAS requires permanent and strategic commitment of the Government to invest significantly
into the CAS resources and expertise.

Sufficient political will is necessary to create the best possible conditions for the
implementation of the EU standards defined in relevant fields.

                                                                                              20
Achieving mandatory results of the project depends on readiness and willingness of other
involved Serbian governmental agencies to cooperate and work together with the CAS on the
project. It is important that governmental agencies dedicate their human resources in order to
bring concrete operational results of the twinning.

The success of the project also depends on the CAS commitment by timely provision of
expert staff, adequate office space and ensuring inter-department cooperation during its
implementation. The CAS is entirely responsible and will provide to the Twinning partner
adequate staff and other required resources such as appropriate working space and
equipment necessary for effective work. The BC top management and counterpart team at the
CAS will be fully committed and involved in the development and implementation of the
policies required to deliver the project results and transparently co-operate with external
project experts and participate in project activities. In the event that conditionality is not met,
suspension or cancellation of the project or a part of it will be considered.

The project will be implemented through one twinning contract to cover all specified activities.
No particular requirement regarding the contract sequencing will be applied; however it has to
be taken into account that some activities have to be done before others.

As above mentioned this Project is closely related to the UNODC training and Twinning on
collection of excise and VAT at importation of goods.

In order to start the delivery of UNODC training in September 2009, all needed conditions
have been already met. At the end of 2009 it is anticipated the circulation of Twinning Fiche
on collection of excise and VAT at importation of goods.

Technical specification for the equipment to be procured from the EU IPA budget is planned to
be written in the last quarter of 2009.
Annex to the Project Fiche

1. Logical framework matrix in standard format
2. Implementation chart
3. Contracting and disbursement schedule by quarter for full duration of programme
4. List of relevant Laws and Regulations
5. Organizational chart of Serbian Customs Administration




                                                                                                21
ANNEX I Logical Framework Matrix
                                                                                                              Programme name and number
                                                                                                              Harmonization of the Serbian Customs Enforcement Division with the
                   ANNEX 1. LOGFRAME PLANNING MATRIX FOR Project Fiche                                        standards, organization and operational methodology of EU enforcement
                                                                                                              agencies: Component 3 - Risk Analysis and Risk Management and Post
                                                                                                              Clearance Audit
                                                                                                              Contracting period expires: Disbursement period expires:
                                                                                                              2 years after the signing        1 year after the execution of contracts
                                                                                                              of FA
                                                                                                              Total budget :                   IPA budget:
                                                                                                              1,400,000.00 €                   1,400.000.00 €


                        Overall objective                               Objectively verifiable indicators       Sources of Verification
The project aims to support and build up the capacity of the • Positive evaluation of                         • Annual report of European
Customs Administration of Serbia (CAS) by strengthening        harmonization with EU standards                  Commission on progress
institution capacity in order to improve the efficiency and    in the sector of customs and IBM                 of Serbia in the integration
effectiveness of border and inland controls and tax, VAT and                                                    process
customs duties collection in the customs procedures

                        Project purpose                                 Objectively verifiable indicators       Sources of Verification                          Assumptions

Component 1 – RARM                                                                                                                             Sufficient political will to create the best possible
To develop appropriate techniques for systematic risk • Detection of all customs offences                      • Annual report of the          conditions for the implementation of the EU
identification and implementation to limit exposure to risks in (smuggled narcotics, other goods,                Serbian Customs               standards defined in relevant fields
accordance with national strategies and based on EU best        counterfeit, radiation materials)                Administration to the
practices and                                                   increased by at least 5% by                      Ministry of Finance
                                                                project completion                             • Annual report of the
                                                                                                                 Enforcement Division to
Component 2 – PCA                                                                                                the DG
To set up an effective system of post-clearance control and            • Increase of initiated duty collection • PCA Department’ s report
audit service that allows the customs administration to better           as a result of PCA performance by       to the Assistant DG of the
implement its tasks (clearance and control of goods, revenue             10 %, one year upon completion          Customs Tariff Division
collection) and to facilitate balancing increasingly free trade with     of project in comparison with the
an efficient customs control system.                                     previous year
                             Results                                    Objectively verifiable indicators        Sources of Verification                         Assumptions
Component 1 – RARM

1.1.        Existing legislation in force reviewed and new • Gap analysis prepared and                        • Gap analyses document
national customs by-laws drafted in line with international     adopted                                       • Documents of drafted
legislation blueprint based on the results of gap analysis of • New/amended bylaws prepared                     bylaws
current legislation.                                            and in the procedure for adoption

                                                         • Multi-level review conducted and                   • Documents of review and
1.2.      Harmonized Model of Risk Management within CAS   risk areas defined on all levels                     risk profiles
established in accordance with international standards   • Proposal of characteristics and                    • IT system assessment
                                                           performances of the new state-of-                    report and proposal of
                                                           art software prepared                                brand new software



                                                                                                                                                                                          22
                                                             • Common priority areas are          • Regular project
                                                               developed and implemented            implementation reports
                                                             • Advance analytical and             • Document on advance
                                                               intelligence techniques for risk     analytical techniques
                                                               treatment are prepared             • Monthly and periodic
                                                             • Local risk profiles are prepared     Reports of RARM to the
                                                             • Analytical and monitoring            CAS DG
                                                               mechanisms are in place on all     • Interviews with staff
                                                               organizational levels of CAS
                                                             • Contact points for interagency     • Cooperation protocols
                                                               cooperation are appointed and      • Interviews with CAS staff
                                                               have regular cooperation             and employees of other
1.3.       Communication and coordination between the • Contact points for internal                 institutions
                                                                                                                              Support and readiness of all relevant state
intelligence functions within CAS and with relevant national   exchange of information are        • Copy of documents on      agencies to cooperate
agencies is enhanced                                           appointed                            data exchange procedures
                                                             • Internal and external data
                                                                exchange procedures prepared


                                                                                                  • MoU document
                                                             • Memorandum of Understanding        • Decision on appointment
                                                               signed with trade organizations      of contact point
                                                                                                                               Support from business community and the
1.4.     Cooperation between CAS and trade organizations is • Contact point for business sector   • Monthly and periodic       Serbian
transparent, formalized, and contributes to effectiveness of   appointed within CAS                 Reports of RARM to the     Chamber of Commerce
RARM                                                         • Base for the implementation of       CAS DG
                                                               AEO prepared


                                                                                                  • Copy of drafted
                                                            • New training modules within the
                                                                                                    amendment of Directive
                                                              Vocational Training Centre
                                                                                                    on the way of taking
                                                              established
                                                                                                    expert examination
                                                            • 20 staff of RARM trained
                                                                                                  • Reports on conducted
                                                            • 30 staff from other departments
                                                                                                    training
                                                              trained
1.5.     Knowledge, skills and experiences of CAS employees                                       • Regular project            Adequate selection of trainers in the CAS
in implementation of RARM is enhanced                       • ToT conducted
                                                                                                    implementation reports
                                                            • Gained knowledge and
                                                                                                  • Monthly and periodic
                                                              experience from study visits and
                                                                                                    Reports of RARM to the
                                                              internships transferred through the
                                                                                                    CAS DG
                                                              presentations and training
                                                                                                  • Presentations and report
                                                                                                    on training

Component 2 – PCA

                                                                                                  • Copies of drafted
                                                                                                    documents
                                                                                                  • Regular project
2.1.Serbian PCA strategy prepared and legislative and
                                                      • Draft of PCA strategy prepared              implementation reports
organizational framework improved
                                                      • Necessary bylaws drafted                  • Monthly and periodic
                                                                                                    Reports of PCA to the
                                                                                                    CAS DG




                                                                                                                                                                      23
                                                                  • Internal rule book for external         • Document of internal rule
                                                                    auditors prepared                         book
                                                                  • Long and short term plans for PCA       • PCA plans
2.2     External auditors and their managers have enough
                                                                    prepared and implemented                • Regular project
organizational and technical capacities to carry out their duties                                                                           Support and readiness of all relevant state
                                                                  • Protocols for horizontal and vertical     implementation reports
in PCA with the maximum efficiency and effectiveness                                                                                        agencies to cooperate
                                                                    coordination in place                   • Monthly and periodic
                                                                  • Necessary improvements of IT              Reports of PCA to the
                                                                    system proposed and implemented           CAS DG
                                                                    according to capacities available

                                                          • All PCA auditors trained in specific            • Training reports and
                                                             PCA areas                                        evaluations
                                                          • 5 PCA auditors (1 from PCA HQ                   • Regular project
                                                            Department + 4 from PCA Regional                  implementation reports
                                                            Centers) trained for creation of                • Monthly and periodic
                                                            PCA plans                                         Reports of PCA to the
                                                          • PCA trainers selected                             CAS DG
2.3 Knowledge, skills and experiences of CAS employees in • Exchange of experience through                  • Interviews with
implementation of PCA is enhanced                           study tours and internships                       participants of study tours
                                                            secured                                           and internships
                                                          • Long-term and medium-term                       • Copy of documents on
                                                            training programmes prepared                      training programmes
                                                          •Gained knowledge and experience                  • Presentations and report
                                                            from study visits and internships                 on training
                                                            transferred through the
                                                            presentations and training

                                               Activities
                                                                                                                       Means                                 Assumptions
Component 1- RARM
                                                                                                     • Medium term and short
Activities for Result 1.1.                                                                             term experts
 1.1.1.Conduct review of the current normative framework for RARM, it’s compliance with EU • Organization of
 standards and give recommendations                                                                    consultative meetings and
 1.1.2.Prepare gap analysis of the capacities of CAS to implement EU standards and best practices in   workshops
 daily operations
1.1.3.Prepare drafts/amendment of necessary customs bylaws, (The Regulation on Cargo Inspection,
Amendment to the Regulation on the Layout, Content and the way of submitting and filling in of the
Declaration and other Documents used in the Customs Procedure, Instructions on Contents and the
Risk Analysis and Management Modes within the CAS, Instructions for Customs Procedures at the
Border Crossing Points, Instruction for the Customs Procedures on the submitted declarations)


Activities for Result 1.2.                                                                             • Medium term and short
                                                                                                         term experts
 1.2.1. Conduct multi-level review of all available information for operational purposes, areas with • Organization of
 potential to avoid or evade the customs enforcement efforts and potential deficiencies within the CAS   consultative meetings and
 in this respect                                                                                         workshops
 1.2.2 Review of the structure of the CAS IS and the current state of the RARM programme in the CAS • Preparation of manuals
 IS                                                                                                      and rulebooks



                                                                                                                                                                                   24
 1.2.3 Prepare proposal of characteristics and performances of the RARM new modernised software
 in line with improved procedures and trends in RARM
 1.2.4. Design a Harmonized Model of Risk Management that will include the minimum standards of
 control, based on specific indicators in order to ensure that passengers and traders are treated
 uniformly and develop and implement common priority control areas, joint risk analysis and uniform
 profiles on the central level
 1.2.5. Prepare and implement local risk profiles for each location taking into account economic and
 other specifics of the region concerned
 1.2.6. Develop and implement techniques for risk treatment in order to prevent the risks from
 occurring or to minimize the consequences
 1.2.7. Prepare and implement proper analysis mechanism which enables correct selection of
 consignments for customs examination
 1.2.8. Preparation of a monitoring and review mechanisms of the performance, effectiveness and
 efficiency of risk management system and changes that might affect it

Activities for Result 1.3.                                                                         • Medium term and short
                                                                                                     term experts
 1.3.1.Assesment of internal and external coordination and communication mechanisms and • Organization of
 protocols with key institutions and agencies                                                        consultative meetings,
 1.3.2. Establishment of consultation mechanisms for improvement of external information flow with   workshop, conferences
 key institutions
 1.3.3. Preparation of new protocols and procedures for internal and external data exchange
 1.3.4.Introduction of institutional framework and definition of procedures regarding joint and
 coordinated controls and operations based on common risk analysis process

Activities for Result 1.4.                                                                            • Medium term and short
                                                                                                        term experts
 1.4.1. Based on gap analyses, upgrade capacities for the receipt of relevant information from the • Organization of
 business community as a priority of the WCO SAFE FoS customs – business                                consultative meetings,
 1.4.2.Establish consultation and coordination mechanism with representatives of trade organizations,   workshop, conferences
 prepare and implement new MoU regarding access to trade information                                  • Preparation and printing of
 1.4.3.Preparation of solid base for the implementation of Authorized Economic Operator                 manuals and rulebooks

Activities for Result 1.5.                                                                            • Medium term and short
                                                                                                        term experts/trainers
 1.5.1. Preparation of new training module on RARM and course materials in order to include it in the • Organization and delivery
 curriculum of the CAS Vocational Training Centre                                                       of seminars/trainings
 1.5.2.Organize series of seminars, workshops, courses and on-the-job trainings based on prepared • Preparation and printing of
 training module                                                                                        handbooks
  1.5.3.Conduct Train the Trainers course and prepare the ToT Handbook                                • Organization of study visit
 1.5.4. Organize study visit for group of employees involved in RARM to MS customs administration     • Organization of internships
 1.5.5. Organize internship engagement for selected trained participants in MS CAS

Component 2 – PCA




                                                                                                                                      25
                                                                                                          • Medium term and short
Activities for Result 2.1.                                                                                  term experts
                                                                                                          • Organization of
    2.1.1.Review current normative framework for implementation of PCA comparing it with the EU             consultative meetings and
    legislation framework in the area of PCA and draft necessary provisions concerning PCA                  workshops
     2.1.2.Prepare PCA implementation gap analysis from the perspective of institutional, organizational,
    HRM and communication improvement on the basis of existing gap analysis of the EU Blueprints and
    PCA in the CAS
    2.1.3.Prepare draft of Serbian PCA strategy;
.

Activities for Result 2.2.                                                                              • Medium term and short
                                                                                                          term experts
    2.2.1.Prepare the external auditors’ internal rule book;                                            • Organization of
    2.2.2.Provide practical assistance in performing post clearance controls and audits based on the      consultative meetings and
    prepared PCA implementation gap analysis                                                              workshops
    2.2.3.Create the long and short term plans for PCA                                                  • Preparation of manuals
    2.2.4.Establish a coordination mechanism with all relevant CAS departments and other relevant         and rulebooks
    institutions and agencies (e.g. Tax Administration) and prepare relevant protocol of horizontal and
    vertical communication regarding the flow of information
    2.2.5. Prepare proposals and support necessary upgrade of current IT system in line with improved
    procedures and trends in PCA;

                                                                                                          • Medium term and short
Activities for Result 2.3.                                                                                  term experts/trainers
                                                                                                          • Organization and delivery
    2.3.1.Creat the long-term and medium-term training programmes for external auditors                     of seminars/trainings
    2.3.2.Organise series of training events, workshops, seminars and on the job trainings (especially in • Preparation and printing of
    the area of contemporary IT business systems of the biggest companies, accounting, customs value,       handbooks
    foreign trade and foreign currency transactions of companies);                                        • Organization of study visit
    2.3.3 Select and train CAS PCA long-term trainers                                                     • Organization of internships
    2.3.4. Organize study visits to the EU Customs Administrations in order to gain practical experience
    on conducting PCA controls in the EU Member States
    2.3.5. Organise internship for selected trainees in MS CAS




                                                                                                                                          26
ANNEX II: Implementation chart

                     Implementation activities by quarters:   Q1   Q2   Q3   Q4   Q5    Q6
Component 1- RARM
Activities for Result 1.1.

Activities for Result 1.2.

Activities for Result 1.3.

Activities for Result 1.4.

Activities for Result 1.5.

Component 1- PCA
Activities for Result 2.1.

Activities for Result 2.2.

Activities for Result 2.3.

Project management activities
Project Steering Comity meetings
Preparation of regular project reports




                                                                                   27
ANNEX III: Contracting and disbursement schedule


Contracted               Q1         Q2         Q3        Q4       Q5         Q6      Total

Twinning Contract    1,400,000.00                                                 1,400,000.00

Cumulated            1,400,000.00                                                 1,400,000.00

Disbursed

Twinning Contract     450,000.00            450,000.00        500,000.00          1,400,000.00

Cumulated             450,000.00            900,000.00        1,400,000.00        1,400,000.00




                                                                                      28
ANNEX IV: List of relevant Laws and Regulations

Customs procedures carried out by customs officers are set up by the Customs Law and by
the Regulation on customs approved treatment of customs goods, release of customs goods
and collection of customs debt, being implemented from January 1, 2004.

All the systematic laws, being implemented by the Customs administration, that were passed
after 2004, have been significantly harmonized with EU legislation (Customs Law, Law on
Customs Tariff, Law on Foreign Trade Activities, Law on VAT, Law on Foreign Currency
Operations, Law on Foreign Trade in Arms, Military Equipment and Dual Use Products.)

The customs system is based on the following legislation:

   The Customs Law ("Official Gazette of the Republic of Serbia" No. 73 of July 18, 2003,
   61/05, 85/05, 62/06 and 63/06);
   Customs Tariffs Law ("Official Gazette of the Republic of Serbia" 62/05, 61/07 and 05/09)

Apart from the above mentioned laws, the CAS follows the following regulations:

   Law on Foreign Trade ("Official Gazette of the Republic of Serbia", No. 36/09 of May 15,
   2009);
   Law on Value Added Tax ("Official Gazette of the Republic of Serbia", No. 84 of July 24,
   2004, 86/04, 61/05 and 61/07);
   Law on Foreign Currency Transactions ("Official Gazette of the Republic of Serbia", No.
   62/06);
   Law on General Administrative Procedure ("Official Gazette of the FRY", No. 33/97,
   31/01);
   Law on Ionization Radiation Protection, (“Official Journal of FRY” no. 46/96 and the
   “Official Gazette of RS” no. 85/2005 and 101/2005)
   Offence Law ("Official Gazette of the Socialist Republic of Serbia", No. 44/89 and the
   "Official Gazette of the Republic of Serbia", No. 21/90, 11/92, 6/93, 20/93, 53/93, 67/93,
   28/94, 16/97, 37/97, 36/98, 44/98, 65/01,55/04 and new Offence Law ("Official Gazette of
   the Republic of Serbia", No. 101/05 and 116/08);
   Law on Foreign Trade in Arms, Military Equipment and Dual – use Goods (“Official
   Gazette of Serbia and Montenegro”, No. 7/05 and 8/05);
   Regulation on Customs Approved Procedure with Customs Goods, Release of Customs
   Goods and Collection of Customs Dues ("Official Gazette of the Republic of Serbia", No.
   127 of December 23, 2003, 20/04, 24/04, 63/04, 104/04, 44/05, 71/05, 76/05, 106/05,
   05/06, 47/06, 86/06, 10/07, 25/07, 80/07, 09/09, 26/09 and 28/09);
   Regulation on Special Conditions for the Trade in Goods with the Autonomous Province of
   Kosovo and Metohija ("Official Gazette of the Republic of Serbia", No. 139 of December
   30, 2004, 8/2005, 15/2005 and 91/2006);
   Rulebook on the Form, Content and Manner of Submission and Filling in the Declaration
   and other Forms in the Customs Procedure ("Official Gazette of the Republic of Serbia",
   No. 129 of December 29, 2003, 53/04,137/04, 11/05, 23/05, 65/05, 117/05, 114/06, 74/07,
   02/08, 33/08, 50/08, 08/09 and 25/09 );
   Rulebook on the Duties of Customs Authorities in Foreign Trade in Arms, Military
   Equipment and Dual – use Goods ( “Official Gazette of the Republic of Serbia”, No. 67/05);
   Rulebook on the Request Form for Permit Issuance, the Form of the Permit and Other
   Forms of Documents accompanying the Foreign Trade in Controlled Goods (“Official
   Gazette of the Republic of Serbia”, No. 96/07);
   As well as other laws and bylaws.


                                                                                          29
Customs administration also passed a number of special instructions concerning border
operations, aiming to improve the procedures at borders and to heighten efficiency. The
instructions are as follows:

   Instructions on customs posts operations on border crossings – passed in 2005
   Instructions on importation of motor vehicles and on establishment of their customs value
   – passed in 2004
   Instructions on control of goods in customs border area – passed in 2005
   Instructions on return of goods abroad in passenger traffic – passed in 2005
   Handbook on procedure in passenger traffic – passed in 2005
   List of tariff classified goods which are subject to veterinary-sanitary control on imports,
   exports and in transit – passed in 2005
   List of tariff classified goods, which are subject to phyto-sanitary control on imports,
   exports and in transit – passed in 2005
   Instructions regarding TIR System implementation – passed in 2001
   Instructions on customs procedure regarding temporary importation and exportation of
   goods based on ATA carnet – passed in 2004
   Instructions regarding CEMT Resolution implementation – passed in 2005
   Methodological instructions regarding implementation of the Law on VAT in customs
   approved procedures – passed in 2004
   Instructions on supplying ships, yachts and boats – passed in 2004
   Instructions on supplying aircrafts – passed in 2004
   Instructions on how to carry out the transit procedure in customs posts at border crossings
   – passed in 2006
   Instructions on exchange of customs information list in road traffic – passed in 2007.

Reference list of international standards

Regarding the implementation of international standards in the trade facilitation area, we
would like to emphasize the fact that CEFTA (Agreement on Free Trade in Central Europe)
has been implemented from October 2007, as well as the Agreement on Trade in Textile
Products, concluded in 2005, between the EU and Serbia.

As far as implementation of international standards is concerned, it should be pointed out that,
from the total of 12, Serbia has signed the following seven WCO conventions:

· Convention on the Harmonized Commodity Description and Coding System
· Customs Convention on the temporary importation of packings
· Customs Convention on the temporary importation of professional equipment
· Customs Convention concerning facilities for the importation of goods for display or use at
exhibitions, fairs, meetings or similar events
· Customs Convention on the ATA carnet for the temporary admission of goods (ATA
Convention)
· Customs Convention concerning welfare material for seafarers
· International Convention on the simplification and harmonization of Customs procedures
(Kyoto Convention) as amended.

Since the CAS is already cooperating with the International Association of World Carriers and
with UNECE, it is also engaged in monitoring the implementation of conventions, passed
under UN auspicies:



                                                                                                30
· Customs Convention on the international transport of goods under cover of TIR carnets –
TIR Convention;
· Customs Convention on containers;
· Convention concerning customs facilities for touring;
· Customs Convention on the temporary importation of private road vehicles;
· Customs Convention on the importation of commercial road vehicles;
· International Convention on the harmonization of frontier controls of goods (Geneva);
· European Convention on customs treatment of pallets used in international transport;
· Customs Convention on the temporary importation for private use of aircraft and pleasure
boats;
· Convention regarding the regime of navigation on the Danube;
· Convention on the Contract for the international carriage of goods by road (CMR);
· Convention on the means of prohibiting and preventing the illicit import, export and transfer
of ownership of cultural property;
· UN Convention against illicit traffic in narcotic drugs and psychotropic substances;
· Single Convention on narcotic drugs;
· Convention on psychotropic substances;
· Convention on international trade in endangered species of wild fauna and flora (CITES);
· Basel Convention on the control of transboundary movements of hazardous wastes and their
disposal;
· Convention on the prohibition of the development, production, stockpiling and use of
chemical weapons and on their destruction;
· Vienna Convention (The Montreal Protocol) on substances that deplete the ozone layer;




                                                                                            31
                   ANNEX V: Organisation of Serbian Customs Administration

                                          HEADQUARTER OF THE CUSTOMS ADMINISTRATION OF SERBIA

                                                                                                                                  Director General                                                                   Work Accuracy            Group for        Prevention and
                                            Public Relations Section                                                                                                                                                 and Regularity          Cooper ation       Investigation
                                                                                                                                                                                 Audit Department
                                                                                                                                                                                                                     Control Section          with Other           Group
                                                                                     Bureau of Director                                                                                                                                      State Bodies
                                                                                          General
                                               Group for Projects
                                                                                                                                 Assistant Director -
                                                                                                                                                                         Internal Control Department
                                                                                                                                    Coordinator




 CUSTOMS AFFAIRS                                                                                                                                                                                                                                                                 CUSTOMS
AND INTERNATIONAL                         T ARIFF AFFAIRS                                     HUMAN                                   INVESTMENTS,                                                                               INFORMATION
                                                                                          RESOURCES AND                                                                            ENFORCEMENT                                                                                   HOU SES
     CUSTOMS                                  DIVISION                                                                               FINANCIAL AND                                                                              TECHNOLOGIES
   COOPERATION                                                                               GENERAL                                 LEGAL AFFAIRS                                    DIVISION                                      DIVISION
     DIVISION                                                                                AFFAIRS
                                                                                                                                         DIVISION
                                                                                             DIVISION


                                                                                                               Group f or
                                                                                                              Organization                                                                              Anti-smuggling                                       Design and
                      Customs and                                    Analysis and                                 and                                      Investments                                     Sections                                         Programming
                     Legal Aff airs for                             Classification of                        Development of                                   Section                                                                                          Section
                     Legal Persons                                   Reproduction                                                                                                                       - Beograd
                                                                                                                Customs
                        Section                                     and Consumer                                Service                                                              Anti- sm uggling   - Novi Sad
                                                                    Goods Section                                                       Inve stmen ts                                 Depa rtment       - Subotica
                                                                                                                                         and Facilit y                                                                                    Design,                                 Beograd
                                                                                                                                                                                                        - Vršac                                                Software
                                                                                                                                                           Investment                                                                  Progra mming
                                                                                                                                        Ma inte nance                                                   - Kraljevo                                             Support
                                                                                                             Labor Relation             D epart me nt      Maintenance                                  - Niš                          and Statist ics
                      Customs and                                                                                                                            Section                                                                    De partme nt           Section
                                                                                                               Issues and
   C ustoms and      Legal Aff airs for                              Analysis and
                                                                                                                 Human                                                               Water Transport
   Legal Affairs     Natural Persons        Customs Tariff          Classification of                           Resource                                                                                                                                     Statistics and
                                                                                                                                                                                                                                                                                   Šabac
                         Group                                      Equipment and                                                                                                    Customs Contr ol
    Depa rtment                              D epartment                                                      Management                                                                 Section                                                               Reporting
                                                                        Other
                                                                                                Hu man           Section                                   Procurement                                                                                          Section
                                                                      T echnical
                                                                                              R esources                                                      Group
                                                                    Goods Section
                                                                                              Dep artment                                                                                                                                                                         Kladovo
                        Customs                                                                                  Labor                                                                Inte llectual                                                            Central
                        Transport                                                                               Relation                Procureme nt      Implementation                Pro perty                                                              Platform
                       Issues and                                      Customs                                  Disputes                                    of Contracts                                                                                       System
                                                                                                                                          and Sale                                       Rig hts
                         Border                                      Nomenclature                                Group                                        and Sale                                                                                         Support
                                                                                                                                        Coordina tion                                 Depa rtment                                                                               Dimitrovgrad
                       Formalities                                      Group                                                                              Coordination                                                                                        Section
                                                                                                                                        D epart me nt          Section
                         Section
                                                                                                                                                                                                                                     IT System
                                                                       Group for                                                                                                                           Customs                  Supp ort and
                                                                       Analytical                              Disciplinary                                                                             Investigations             Developement             Local Servers         Kraljevo
                                                                     Monitoring of                             Procedure                                   Budget Planning                                Sections-                 De partme nt              System
                                                                                                                                                            and Analysis                                                                                      Support
  C ustoms and                                                       Customs and                                 Group                      Budget                                                         Groups
                                               Orig in of            Foreign Trade                                                                             Section                                                                                        Section
  Administrative                                                                                                                         D epart me nt
                                                Go ods                 Protection              Vocation al                                                                                              - Beograd
      Af fairs                               D epartment              Instruments                                                                                                                       - Novi Sad                                                                  Ni š
   Depa rtment                                                                                  Tr ain ing                                                  Financial
                                                                                                                                                           Control and                                  - Niš                      Communications
                                                                                                 Cen ter                                                                                                - Kraljevo                    Section
                                                                                                                                                            Payment                     C ust oms                                                                ‘RS’
                                                                                                                                         Accounting and      Section                 In vestigations                                                           Platform
                                              Customs                                                                                      Reporting                                                                                                           System           Kragujevac
                                                                                                                                                                                       Depa rtment
                       International            Value                                                                                       Section                                                                                                            Support
                                             D epartment                                                                                                                                                Data Analysis
                         Customs                                                                                                                            Reimbursement                                                                                      Section
                                                                                                                 Office                                                                                 and Customs                     IT System
                       Cooperation                                                                                                                        Litigation and State
   International                                                                                              Management                                                                                Investigations                 Security and
                          Section                                                                                                                         Property Protection         Risk Ana lysis
     C ustoms                                                                                                 and Catering                                       Section
                                                                                                                                                                                                        Coor dination                   Prot ection                              Novi Sad
                                             Post-Clearance                                                  Service Section               Proper ty                                       and             Group
   Coo perat ion                                                                                                                                                                      Ma nagemen t                                        Gro up
  and European                                    Audit                                                                                   and Legal                                                                                                           Technical
                                              Department                                                                                    Affairs                                    Depa rtment                                                             Support
    Integratio n                                                                                                                                                                                           Analytics                                           Section
   Depa rtment           European                                                                                                        D epart me nt                                                      Section                                                               Sombor
                        Integration
                          Section                                   Classification of                          Technical                                     Contract
                                                                    Goods Section              Genera l       Maintenance                                 Obligations and                                                                                   Customer Care
                                               Customs                                          Af fairs                                                     Property                                                                                          Section
                                              Labo ratory                                                       Section                                                                                     Local
                                                                                              Dep artment                                                    Evidence                 Int ellig ence                                    Technical
                                                                                                                                                              Group
                                                                                                                                                                                                         Intelligence                                                              Vršac
                                                                       Analytics                                                                                                      Depa rtment          Section                     Supp ort and
                                                                        Group                                                                                                                                                          Coordina tion          Computer
                                                                                                                                                                                                                                       De partme nt           Inventory
                                                                                                                Staff and                                                                                                                                   Control Section
                                             T ARIC Gr oup                                                                                                 Customs Debt                                                                                                          Zrenjanin
                                                                                                             Facility Security            Revenue         Collection Section                            Documentation
                                                                                                              and Protection              C ollection                                                   and Informatics
                                                                                                                 Section                 D epartment                                                         Group
                                                                                                                                                                                                                                                  IT Systems Coordination
                                                                                                                                                             Mandatory
                                                                                                                                                                                                                                                          Sections:              Subotica
                                               Group f or                                                                                                                                                                                        - North
                                                                                                                                                          Remuneration and                                                                       - South
                                            t axe s, accises                                                                                              Reimbursement of                                                                       - Center
                                                a nd fees                                                                                                   Import Duties
                                                                                                                                                                                                                                                 - West
                                                                                                                                                               Section                                                                                                            Priština



                                                                                                                                                                                                                                                                                               32

								
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