Macedonian Customs Administration

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Customs Reform Project

Improving the Customs IT system with the aim to increase the operational efficiency, decrease corruption and achieve full compliance, in particular interconnectivity, with the EU’s standards.

Candidate country preparations

• Business and IT developments together, for CTC and EU accession

• Funding requirements – IPA• Organisational preparations (national point, training)• CTC accession request, procedures

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DG TAXUD Recommendations- May 2007

Firstly, a decision has to be taken on the Customs Declaration Processing System to use in the future.

CDPS – recent and present activities

- Considering the current system – Asycuda ++, the has MCA decided to change it.

- Requested services (EAR/EC FWC – PPF): Technical Assistance for drawing up User and Technical Requirements for the CDPS

- Technical and functional specification produced

- Tender is launched September 2008 – agreement expected December 2008, start of works January 2009, new system in production Q1-Q2 2010

CDPS - Most important Implementation of National Customs

Declaration Processing System Choice of already implemented EU-

compatible CDPS will help MCA to step over several checks done by DG TAXUD

The accepted solution will be in line with the User and Technical Requirements described by consultants engaged by EC

Considerations about new CDPS

Such a solution will be fully compatible with EU requirements – all customs regimes and procedures

Expected financial investment is done through national budget

Solution will be translated and adopted The solution covers the national part of CDPS and

will be NCTS, ITE, ECS and ICS ready Modules: Import, Export, Transit, Control modules Sub-systems: TARIM, Risk Manag., Guarantees and

accounting managements, customs authorizations External + governmental domains (at national

level)

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DG TAXUD Recommendations- May 2007

Secondly, it is essential that adequate human resources are allocated to reinforce the different sectors involved (ICT Sector).

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DG TAXUD Recommendations- May 2007

Thirdly, it is necessary to identify the Administration that will be responsible for the CCN gateway

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- Government decision – MCA shall be responsible for CCN/CSI gateway

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EU Support to the ICT

Commission Decision C(2007) 1853 of 30/04/2007 on a Multi-annual Indicative Planning Document (MIPD) 2007-2009

EU assistance may support appropriate measures which aim at establishing interconnectivity with the computerised systems of the EU.

- IPA 2007, IPA 2008, IPA 2009.

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EC 2007 Progress Report, Chapter 29:

…Despite of the substantial progress over the reporting period, much remains to be done to develop IT systems in order to allow interconnectivity with the Community IT systems. Improvement in IT and other equipment, including a comprehensive IT strategy addressing interconnectivity issues, is necessary in order to allow the customs administration properly to manage and enforce the implementation of the acquis.

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EC 2008 Progress Report, Chapter 29:… In preparation for setting up a "single-window“ system

at border crossings, an IT system for issuing authorisations and transit records has been developed. However, a comprehensive IT strategy and a strategy for interconnectivity with the Community IT systems have yet to be developed…

… The country was granted observer status on the EFTA committees for the Convention on common transit and on simplification of formalities in trade in goods. Cooperation was enhanced with a number of State institutions and also with trading and freight forwarding companies ...

… Administrative and operational capacity has improved significantly and the fight against corruption has led to tangible results.

Indicative planning – MCA IT projects

C-Tendering and Contracting I-Implementation X-Closure

IPA 2007 - TECHNICAL ASSISTANCE FORIMPROVEMENT OF THE MACEDONIAN CUSTOMS IT

SYSTEM Overall objective

The overall objective of the project of which this contract will be a part is as follows:

To achieve further alignment of the acquis in the area of customs, and to strengthen the administrative capacity of the Macedonian Customs Administration (MCA) and its capacity to meet the EU requirements in this area.

IPA 2007 - Activities Assist the MCA in managing and tracking progress on the

implementation of the new Customs Declaration Processing System (CDPS) through providing Quality Assurance, Quality Control, Project and Contract Management advice.

Assist the MCA in the creation of documents preceding new IT projects to be financed under IPA assistance (NCTS and TARIC/ITMS)

Support to the preparation of implementation of NCTS-compatible automated transit system. This project will be focused on providing assistance related to the preparation of the Terms of Reference for the NCTS, based on the new CDPS for the NCTS implementation, including as a minimum Project Initiation Document, including Project Plan, general hardware requirements, as part of the ToR

This project has to provide support to the preparation of implementation of ITMS - assistance to the preparation of the implementation of the Terms of Reference for the ITMS, including as a minimum Project Initiation Document, including Project Plan and general hardware requirement.

IPA 2007 - …Activities Assistance to the MCA in the introduction of Authorised

Economic Operator. Assist the MCA in updating the ICT strategy and support the

drafting of Action Plan to the ICT Strategy, covering organizational, methodological and technical aspects.

Support the MCA in Drafting IIS Strategy and Action Plan Support in improving the exchange of information between the

MCA and traders. Support the MCA to elaborate and agree a Memorandum of

Understanding for data exchange with the relevant institutions - to develop data dictionaries, data structures and models, classification systems and data exchange standards as integral part of the MoU. The terms and conditions for data provision have to be included in the MoU. Some inter-institutional activities-process and data harmonization and standardization have already started and have to be considered.

IPA 2007 …Activities Review/Updating MCA ICT Sector functional characteristics and

organisational structure, if needed. Based on the agreed Structure of the MCA ICT Sector, as part of the ICT Strategy, the consultant has to review and propose amendments, if necessary, to the job descriptions and position requirements.

Drafting Technical Specifications for the IPA 2007 IT supply component;

Provide the requested Technical Training courses and manage the performance of the training in co-ordination with the MCA ICT Director. Technical Training courses for an average of 5 trainees for technical beneficiary staff to cover the indicative areas below. The final training programme will be agreed during the inception phase after an examination of the requirements. The tuition fees of technical training courses will be covered under the Incidental expenditures.

Provide Methodology related training Introduction of and training on TEMPO (Taxud's Electronic Management of Projects Online).

IPA 2007 - …Activities Perform an on-going review of development reports and

plans. Assist the MCA in liaising with other parties affected by or

involved with the Customs Computerization process, such as the European Commission, the EU Delegation to Republic of Macedonia, the MoF, the Traders and other sectors as proved necessary.

Assist/advice IT Sector (skills transfer, capacity building) in the periodical reporting to the Steering Committee.

Organising two Study visits of the beneficiary team of experts (5 experts from ICT Sector plus an interpreter) to two EU MS, related respectively to the to the ITMS & NCTS implementation;

IPA 2007 - …Activities Support the establishment of IT Projects Management

Structure, including of Steering Committee and Project Director. The TA assistance team will provide the necessary training to different levels of the IT management structure to assure better understanding of their roles and responsibilities.

Organisation of at least two conferences for presentation of the updated IT Strategy and Action Plan, the IIS Strategy and presentation of the new IT System to the customs officers, donors and to the public.

Design and provision of awareness materials – leaflets, brochures, booklets (following EU visibility guidelines).

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IPA 2007 - Results to be achieved… Updated and approved ICT strategy. Drafted Action Plan for the ICT Strategy implementation Drafted Interoperability Implementation Strategy (IIS) and Action

Plan; Drafted Projects Proposals for Financing under EU/ other donors to

support the ICT Strategy and IIS Strategy implementation; Preparation of NCTS and ITMS projects. Drafted ToRs and Initiated

computerisation projects, expressed under the next requests for EU financing (NCTS & ITMS development compatible to EU requests);

ICT Sector organisation improved, as per the ICT Strategy and staff trained to cover the new requirements with sufficient capacity to define, prepare and manage accession-essential IT, related projects;

TEMPO methodology introduced and staff trained; Established IT Management Structure and working Reporting

mechanism on place;

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IPA 2007…Results to be achieved Organised two conferences to present the updated IT Strategy and

Action Plan, the IIS Strategy and presentation of the new IT System to the customs officers, donors and to the public.

Number of awareness materials produced and distributed – leaflets, brochures, booklets;

Developed Memorandum of Understanding for data exchange - including data dictionaries, data structures and models, classification systems and data exchange standards as integral part of the MoU. The terms and the conditions for data provision included in the MoU. The involved parties defined; Ensured production of quality messages and exchange of data both, at government to government level and business to government level;

Drafted Technical Specifications for supply of HW and other equipment. Equipment delivered, installed and fully operational;

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ICT Strategy Main Sections

Section 1: Organization (Who?)

Section 2: Management and Methodology Policy (How?)

Section 3: Applications and Technical Environment (What and

where?)

Annexes: Implementation Plans (When)

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ICT Department Organization

Central MCA IT structureDevelopment/Methodology Support

UnitApplications Support UnitTechnical Support Unit

Local IT structureProvide coordination on applications

and technical environment

Section 1: Organization (who?)

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Section 2: Management & Methodology (how)

User support PolicyApplications Development Management

PolicyTechnical Environment Development

Management PolicyProduction support (Operations and

Maintenance) Management PolicySpecific contracts (security, User

training, etc.) Management Policy IT Sector Development Policy

Know-how transfer and Training policyWorking standards and guidelines

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Section 2: Management and Methodology Application Projects ManagementSteering Committee

Program Director

Director of IT Directorate

Heads of Business Depts Head of ASU

Business PMsApplication Support Unit

PMsBusiness Experts

IT experts(Technical Support Unit)

(Methodology Support Unit)

Technical Assistance(when applicable)

Contractor's PM

Contractor's PMContractor's PM

Contractor's Project Teams

National/Private ExternalBodies

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Section 2: Management and Methodology Tech. Env. Projects Management

Steering Committee

Program Director

Director of IT Directorate

Head of TSU.

IT PM(Technical Support Unit)

Technical Assistance(when applicable)

Contractor's PM

Contractor's PM

Contractor's PM

Contractor's Project Teams

National/Private ExternalBodies

IT experts(Methodology Support Unit)

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Section 3: Applications and Technical Environment (what & where)

Technical Platform Applications and Technical

Environment plans

Help needed from DG TAXUD

Considering the fact that the MCA is fully committed to its ICT modernization and EU interconnectivity and interoperability, response with regard to IPA funding decisions is still expected.

IPA 2008 – NCTS (+CCN/CSI)

Overall Objective To support the country in the process

of fulfilling the EU pre-accession requirements, concerning accessing the Common Transit Convention, including support to the implementation of the National Customs Transit System (NCTS) and Common Communication Network and Common System Interface (CCN/CSI)

IPA 2008 - Activities

The project consists of three components:

Component 1: Management Support to the NCTS Implementation

Component 2: NCTS Implementation (a) Upgrade of the National Transit Application, and (b) Software development

Component 3: Implementation of CCN/CSI

IPA 2008 – Expected results

CARM is endowed with the necessary capacity:○ To use and manage the NCTS and CCN/CSI

application, including database administration; ○ To perform the Help Desk support and systems

maintenance;○ To provide advice to the trade community.

The required modules and functionalities of the current system are adapted/developed in line with NCTS requirements and tested.

The connection of CARM and Public Revenue Office (PRO) Network with the CCN/CSI system is established and operational.

Use of a coherent method of access by the applications operated between the Commission and the Government under CCN/CSI.

IPA 2008 – Measurable indicators

The Customs Administration, business and IT staff trained, and subsequently competent, in using NCTS, measured through number of requests to the Help Desk for support.

Operational IT-equipment installed, tested and operational

Phase 4 or further implemented excluding the Trader module

NCTS implemented and fully operational;CCN/CSI infrastructure deployed.EU standards and formats for information exchange

implemented.NCTS data integrated in the national control system.

IPA 2009 - ITE Overall Objective

Compliance of the Republic of Macedonia with the EU requirements concerning the Community Integrated Tariff Environment .

The concerned systems are TARIC, European Binding Tariff Information (EBTI), Quota, Surveillance, the European Customs Inventory of Chemical Substances (ECICS)

IPA 2009 – Main componentsThe project consists of 3 components: Component 1: ITE Management

Support Component 2: ITE Development –

Software Development Service Contract

Component3: Supplies of necessary equipment

IPA 2009 – Results expected The Customs Administration of the Republic of

Macedonian supported in project management for the national ITE System, on tariff-related business change management and in the preparations for TARIC, European Binding Tariff Information (EBTI), Quota, Surveillance, the European Customs Inventory of Chemical Substances (ECICS).

The TARIC-compatible data base adapted/developed: Modules: Skeletons (GUI, Report Layout …); Loader and merger; Tariff Management; Calculation / CDPS Interface.

The necessary hardware system is implemented and ready to support operation of the ITE system.

Upgrade of existing modules and development of supplementary modules in line with TARIC requirements

IPA 2009 – Measurable indicators CARM in full compliance with the accession requirements

and the nationally Interoperability implementation strategy provided by the EC.

Macedonian Master Tariff System (TARIC, European Binding Tariff Information (EBTI), Quota, Surveillance, the European Customs Inventory of Chemical Substances (ECICS) implemented, tested and operational;

Customs and IT staff trained in ITE (particularly TARIC) TARIC DB running TARIC modules in accordance with interoperability

strategy in place Necessary equipment obtained and hardware platform is

operational ITE environment is operational

Indicative planning – MCA IT projects

C-Tendering and Contracting I-Implementation X-Closure

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Questions, Answers and Recommendations