MINISTRY OF FINANCE NATIONAL CUSTOMS AGENCY

Seminar “Addressing the links between Organized Crime and Corruption”

27 February – 1 March 2013, Blagoevgrad

Plamen Velkov – chief expert,

Customs Intelligence and Investigation Directorate, National Customs Agency

The prevention of and counteraction to the corruption and the maintenance

of highly professional standards and integrity of the customs officers is a priority

objective of the National Customs Agency.

In this respect the Agency follows a zero tolerance policy towards any acts of

corruption or any other illegal actions of the officers. The measures applied along

these lines cover all aspects of the administration’s activity – from the selection

and appointment of new officers, initial and subsequent training, the control

carried out by the managers at all levels in the Agency on the activity of their

subordinate officers, to carrying out internal inspections and conducting

disciplinary proceedings.

PREVENTION OF AND COUNTERACTION TO CORRUPTION

ORGANIZATION AND CONTROL OF LEGAL REQUIREMENTS FULFILLMENT

According to Article 10, par. 6 of the Customs Act upon their appointment,

discharge and annually until 31. May the customs officers are obliged to

declare the properties owned by them and the properties owned by their

family’s members.

Upon their appointment the customs officers shall lodge a declaration

regarding the circumstances under Article 10, par. 1 and 2 of the Customs

Act /the customs officers are not allowed to act as sole traders, to sign

additional employment agreements, to have a hierarchical relation of

management and control with their husband or wife or direct line of descent

relatives/.

The customs officers shall also lodge a declaration according to the Conflict of

Interest Prevention and Ascertainment Act.

Upon their appointment the customs officers shall sign a declaration providing

that they are aware of the standards of the Customs Officer behavior Code

/approved by the Minister of finance/ and in case of non-observance of the

standards the officers bear disciplinary responsibility.

STRUCTURAL REFORM

As a result of the reform carried out in the period 2009 - 2012 the structure of the

National Customs Agency was optimized as the number of customs officers

appointed was reduced from 4003 to 3337.

A whole level of the structure was removed – the Regional Customs Directorates.

The number of Customs Houses was reduces from 17 to 10.

In order to improve the management of human resources and to prevent and

counteract to corruption 2 new departments were created in Organization and

Management of Human Resources Directorate, Central Customs Directorate –

Methodology, Selection and Career Development Department and Professional

Standards and Internal Investigation Department which took over the functions of

the Inspectorate of the National Customs Agency closed since 1. September 2010.

This structural changes had a double effect – the distance between the management

of the Agency and the executive officers was shortened and the available financial

resources were used for the purpose of increase of the individual salary of the

officers in order to ensure higher life standard as an additional anti-corruption

measure.

OPERATIONAL MEASURES

In the middle of 2010 HCS Integrity Check was introduced for selection of the staff in the National Customs Agency in order to limit the corruption practices in the system. This check could identify if a job applicant or an official tends to commit insignificant or serious offences of the regulations and the discipline.

The training course of the newly appointed officials includes a module related to the prevention of and counteraction to corruption and other illegal actions of the staff, as well as conflict of interest. Training in this matter is also organized for the rest of the staff, also by the Institute of Public Administration.

New Guidelines for establishment of disciplinary offences and conducting of

disciplinary proceedings in the National Customs Agency are elaborated and introduced.

OPERATIONAL MEASURES

Internal verifications and investigations are carried out regarding alerts for possible irregularities committed by customs officers received in the Agency;

Disciplinary proceedings are started and conducted against officers who have committed disciplinary offences. Where data on offences committed by customs officers is established, competent authorities shall be informed;

Internal verifications on the property of customs officers are carried out;

The activity of customs officers is subject of a daily control;

Constantly, working meetings on prevention of and counteraction to corruption are organized in all Customs Houses with the participation of officials from Professional Standards and Internal Investigations Department at the Organization and Management of the Human Resources Directorate, Central Customs Directorate.

OPERATIONAL MEASURES

Anonymous inquiries are being carried out on travelers and carriers crossing

through the Border Crossing Points, as well as on business sector

representatives (also representatives of NGO’s take part to the inquiries – e.g.

Transparency International - Bulgaria). The purpose is to obtain information

regarding the activities of the customs administration, including if any

corruption practices.

An electronic Work Place Determination System was introduced at the Customs

Border Crossing Points. The system rotates the operational customs officers at

different work places – monthly the officer’s shift changes and at the beginning

of each shift the officers are being randomly allocated at different work places.

On the web site of the Agency there is a “hotline” and e-mail indicated in order

to receive alerts related to possible illegal acts of customs officers. Post boxes

for alerts and recommendations are located at visible place in each Customs

Office.

RESULTS ACHIEVED

During 2012 a total number of 139 controls and internal investigations were carried out. As

a result 60 disciplinary punishments were imposed on customs officers including 22

dismissals.

Incompatibility with regard to Article 10 of the Customs Act was established regarding 14

customs officers. The employment relationships/contracts with them were respectively

terminated.

Property checks of 16 customs officers were carried out. In one of the cases the National

Revenue Agency was approached in order the relevant verification to be carried out.

Regarding one of the files the Commission for Prevention and Ascertainment of Conflict of

Interests was approached. Providing for that there was data available about committed

crimes, 9 alerts were sent to the Prosecutors Office as the customs authorities have no

powers to investigate crimes related to Criminal Code when the crime has been committed

by an official in direct connection with the customs service.

Natural and legal persons sent 28 messages about customs officers illegal acts by the

“hotline” for receiving of alerts. In all of the cases the relevant actions were undertaken.

During 2012 a total number of 232 persons crossing through the

customs points Lesovo and Malko Tarnovo were inquired for the

purposes of completion of the tasks laid down in the six-months

Schedules of government’s and judicial authorities’ urgent measures

and activities on covering the progress criteria in the areas of judicial

reforms, fight against corruption and organized crime. The results of

these inquiries give reasons to be considered that at the customs

points there are no corruption practices associated with the activity of

the customs administration, but it is necessary the relevant managers

– heads of customs points and shift leaders to carry out constant

control on the activities of their subordinates.

RESULTS ACHIEVED

LEGISLATIVE, ADMINISTRATIVE AND ORGANIZATIONAL MEASURES ENSURING

PARTICULAR RESULTS

During the last several years significant investments were made in order

to ensure the necessary technical equipment and modernize the available

technical means;

Two fixed systems for container scanning were bought for Varna and

Burgas ports;

Two of the available x-ray systems allocated at the EU external land

frontiers were modernized;

6 high energy mobile x-ray systems were provided. Two of them are

located at EU external borders and 4 are located on the main roads in the

country;

Location of X-RAY systems by Customs Houses

HCVMHCVM

Cab 2000A

THSCAN MT1213DE

HCVM

HCVP

HCVP

SScan M300

ZBV

SScan M300

HCVM THSCAN MT1213DE

Cab 2000A

In relation to the investigating customs inspectors activities 10 specialized

mini-busses were bought and for the purposes of the operational control at the

Customs Houses 30 high road-ability vehicles were provided;

Six customs dogs were trained to detect tobacco products at the Customs

Canine training school in town Balchik;

24/7 coordination centers were created at central and territorial level, as well

as “X-ray systems” units where officers with technical education had been

appointed;

Customs Intelligence and Investigation divisions are equipped with modern

means for surveillance and control. The operational units are provided with

GPS devices and the coordination centers carry out real time surveillance.

LEGISLATIVE, ADMINISTRATIVE AND ORGANIZATIONAL MEASURES ENSURING

PARTICULAR RESULTS

Technical equipment and customs dogs.

The newly appointed officer undergo a seven-months training course, as well

as different specific trainings depending on the tasks performed by them /X-

Ray systems courses, work in operational teams, sample taking etc.

As of April 2013 a new information system will be functional – Bulgarian

Centralized Excise Information System. It combines the functionalities of all

existing systems in the excise area and allows automation of all business

processes and enhances the electronic exchange with the trade sector.

The human factor will be significantly reduced by achieving high level of

automation of the administration and control of the excise goods related

activities. This is an important condition for the limitation of the corruption

pressure on the business.

LEGISLATIVE, ADMINISTRATIVE AND ORGANIZATIONAL MEASURES ENSURING

PARTICULAR RESULTS

EXAMPLES OF SIGNIFICANT CASES

AND SOME CONCEALMENT METHODS

WITHIN EU INTERNAL BORDERS

USING ROAD/RAILWAY TRANSPORT

Vidin ferry - On 12/02/2011 seized quantity of

cigarettes

450 000 pcs - Transported goods: flour, napkins,

sugar products and perfumes.

Border check point Kulata on 03/05/2012 – seized

quantity

of cigarettes 980 000 pcs. Transported goods

Reinforcing steel.

Border check point

Ilinden

on 14.03.2011 - seized

quantity of cigarettes

3 930 000 pcs.

Border check point Kulata

on 11.05.2011 - seized quantity of cigarettes

2 400 000 pcs. Transported goods -

snails

Border check point Kulata

01.05.2012 - seized

quantity of cigarettes

4 850 000 pcs.

Transported goods - lentils

Border check point

Kulata

on 29.11.2010 - seized

quantity of cigarettes

3 030 000 pcs.

Border check point Kulata

02.11.2010 - seized quantity

of cigarettes - 5 155 000

pcs. Transported goods

Insulating panels

Railway station Border

check point Kulata

22.04.2012 seized

quantity of cigarettes –

4 000 000 pcs.

Transported goods –

perlite of marble

Railway station Border check

point Kulata on 26.06.2011

seized quantity of cigarettes –

9 800 000 pcs. Transported

goods – perlite of marble

Customs office Ruse - 65.751 kg cocaine seized on 06.05.2012 concealed in a metal box with

35mm wall thickness fitted inside the combine.

4 202 kg hashish – Vidin Ferry on

01.07.2012 - the largest quantity of

narcotics, seized by Bulgarian

Customs Officers for the last 15

years.

Customs Administration seizes contraband cigarettes and packages for their illegal

production.

THANK YOU FOR YOUR ATTENTION !