Annual progress report 2015 albanian contribution – input I september 2014 – may 2015 table of contents
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- Economic and social aspects
- Inter-agency Cooperation
- International Cooperation
- Internal Investigation and Anticorruption Directorate
- CHAPTER 30: EXTERNAL RELATIONS Key achievements
- 30.2 Development Cooperation and Humanitarian Aid
- Political dialogue EU-Albania
- CFSP/CSDP Albania continues to actively support the objectives of EU foreign, security and defence policy (CFSP)
- Engagement of Albania in the international initiatives
- Relations between EU and Albania
- CHAPTER 32: FINANCIAL CONTROL
Key achievements Progress has been made in approximation with the EU Customs Legislation through approval of the Decision of Council of Ministers DCM No. 919 date 29.12.2014 “On implementing provisions of law No. 102/2014, date 31.07.2014 “The Customs Code of the Republic of Albania”, related to the Authorized Economic Operators, Simplified Procedures and Import Duties Exemptions, which approximate partly EU legal acts. These disposals simplify customs procedures, reduce costs, increase legal security of the economic operators, etc. Law approximation During the reporting period are approved the following acts: On January 2015 entered into force the Decision of Council of Ministers DCM No. 919 date 29.12.2014 “On implementing provisions of law No. 102/2014, date 31.07.2014 “The Customs Code of the Republic of Albania”, related to the Authorized Economic Operators, Simplified Procedures and Import Duties Exemptions, which approximate partly EU Regulation no.2454/93, amended, Regulation no.1186/2009, Directive 2007/74/EC. This decision has made applicable the provisions of the new Customs Code foreseen to enter into force on 1st January 2015. These disposals simplify customs procedures, reduce costs, increase legal security of the economic operators, etc. By the approval of implementing provisions of Regulation No.952/2013 “Union Customs Code”. Albania will start the alignment of the respective implementing provisions. Law no. 142/2014, date 23.10.2014 and law no. 158/2014, date 27.11.2014 have changed the law no. 61/2012 “For excises in Republic of Albania”, amended. Through Law no.142/2014 are interlaced fiscal policy measures in the review of the rates of excise levels of some products and proposals for administrative improvements of the procedures of products which pay excise, are regulated the administrative measures taken in the case of customs offenses in the field of excise, progressive increase in cigarette excise level to approximate the minimum level according to the EU, etc. Through Law No. 158/2014, is foreseen that energy drinks are not excise products due to difficulties that customs administration has had to implement this tax as well as the negative effect that this tax brought in domestic production, increasing its cost, which becomes higher than imported products. Decision no.30, dated 14.01.2015 "On some additions and amendments to the Decision no. 612, dated 09.05.2012, of the Council of Ministers, "On implementing provisions of the law" On excises "amended"; Law no. 159/2014, dated 27.11.2014 “For an amendments in the law no. 9981, dated 8.9.2008, “For the approval of customs tariff levels”, amended. On 13th of February 2015 was approved by the Parlament of the Republic of Albania the project-law “For a change in the law no. 8449, date 27.01.1999 “The Customs Code of the Republic of Albania” by which is aimed to expand the variety of customs warehouses of the type “duty free shops”, foreseeing in this way, the possibility of setting up these shops in the land and maritime border crossing points. On 1st of January 2015 became effective the DCM no. 920, date 29.12.2014 “On approval and official publication of the Combined Nomenclature of Goods 2015”, which is in accordance with CN 2015 of the EU. It has entered into force law No.184 / 2014 dated 12.24.2014 between the European Union and the Council of Ministers of the Republic of Albania on the participation of the Republic of Albania in the Customs Union Program "Customs 2020". Decision of the Council of Ministers no.921 dated 12.29.2014 "On the customs administration personnel". Decision of the Council of Ministers no. 72, dated 01.28.2015 "On declaring the economic zone, with the status of "Free Zone" in Spitallë, Durres, and for a change in decision no. 391, dated 21.2.2008, of the Council of Ministers, "On Declaring" Economic Zone "in Spitallë, Durres; The Albanian customs legislation on customs valuation of the goods is in line with World Trade Organisation (WTO) and World Customs Organisation (WCO) acts. In this framework, Article 70 of the new Law No 102/2014 of 31.07.2014 “Customs Code of Republic of Albania” is in compliance with article VII of the General Agreement on Tariff and Trade (GATT Agreement) of WTO. Customs valuation of the goods by the “Available Data File” is the latest method in the customs valuation methodology and is updated regularly. This file serves for the revaluation of goods after there are used other methods of customs valuation, as well as a tool for risk analyses. The rate of transaction value use is increased, but it still remains low according to the EU standards. Institutional framework Customs – Prosecution Office co-operation has been functional at the same level regarding penal proceedings of customs fraud / smuggling cases. Economic and social aspects Authorized Economic Operators implementing regulations are functional and IT system provides the necessary capacities to proceed with clearance of commodities. The “green channel” is created, tested and is functional in Customs IT clearance system, but, as it is still considered to be in pilot stage, the percentage of customs declarations in “green channel” is very low (less than 1 %). Administrative capacity The following trainings for new employees of customs administration took place during the reporting period:
Inter-agency Cooperation Institutional co-operation has continued with all law enforcement and other agencies: exchange of information has continued with Police, FIU, Export Control Authority, Institute of Applied Nuclear Physics, Radiation Protection Office, Prosecution Office, etc.. Customs and Export Control Authority jointly organized training activities for customs field officers and other HQ staff (from Sept. to Dec. 2014). Customs representatives have participated in several activities organized by Ministry of Environment and TAIEX on chemicals control (Jan. and March 2015).
International Cooperation DCM no.244, dated 03.18.2015 approved in principle the Protocol between the Government of the Republic of Albania and the Republic of Kosovo "On the implementation of the framework agreement on cooperation in the promotion and facilitation of trade". Decision 253, dated 03.25.2015 approved the agreement with the Government of the Arab Republic of Egypt "On customs cooperation and mutual assistance." Decision 254, dated 03.25.2015 approved the agreement with the Government of the Republic of Serbia "For mutual assistance for the prevention, investigation and punishment of customs offenses". Customs Service has continued to co-operate with the Export Control and Related Border Security (EXBS) Program concerning law enforcement trainings of customs personnel: motor vehicles inspections (Nov. 2014), x-ray images analyzing (Feb. 2015), non-proliferation of WMD (Jan. and March 2015), equipment usage in border controls (April 2015), etc.. EXBS Program donated to Customs Service anti-smuggling control equipments and two motor vehicles (Feb. 2015). Customs Service has extended its access to WCO Container Comm platform and contact points are re-established at Balkan Info system, both actions aiming to improve performance in customs anti-smuggling and anti-trafficking controls. The on-going IAEA / Customs project is further developed by concluding the three-lateral contract among IAEA, Customs Service and the supplier of radioactivity detection and other equipments and services for 3 BCPs (Dec. 2014). EU CBRN CoE projects activities have been supported and attended by Customs in an effort to improve capacities in identifying needs and planning measures to improve control procedures and effectiveness. Customs Service / Crown Agents co-operation has continued to produce positive effects in identifying and penalising customs regulations violations. Internal Investigation and Anticorruption Directorate The Internal Investigation and Anticorruption Directorate have represented to the GDC a program on prevention and fight against corruption. Based on this program, the cooperation of the Internal Investigation and Anticorruption Directory with the Investigation Directorate, Internal Audit Directorate and Intelligence Directorate, under Crown Agents assistance, has been successful and with good results in prevention and identification of corruptive cases. Also, weekly reports of denounced cases are submitted to the Ministry of Finance. Concerning the work that the customs branches shall carry out in the fight against corruption, the Internal Investigation and Anticorruption Directory has set certain priorities:
CHAPTER 30: EXTERNAL RELATIONS Key achievements Council of Ministers approved the Decision of the EU-Albania SA Council to replace Protocol 4 to the SAA concerning the definitions for “originating products” and “methods of administrative cooperation” (DCMNo 255 of 25.3.2015). 30.1 Commercial policy Albania’s post-Bali work proceeded smoothly in close consultation EU Delegation(s)in Geneva and Tirana, in the light of efforts to align trade policy with EU Commercial policy and attaching particular attention to international trade agreements. In this context, Albania is following its internal legal procedure for the acceptance of the Protocol of Amendment (Protocol) to insert the Trade Facilitation Agreement into Annex 1A of the WTO Agreement Albania has advanced smoothly with the implementation of all FTAs during the reporting period. Albaniahas participated actively in CEFTA meetings and activities. With the current focus on further liberalisation of trade in services, the Albanian negotiating team held its second meeting on 7 November 2014 and the thirdon28February 2015.Albania is preparing the technical position for the next round of negotiations. The Joint Committee under the FTAs with Turkey held its second meeting on 17 December 2014 in Tirana. Stakeholders discussed on liberalization of trade in services and investments, particularly on amendments to rules of origin, intended to make them complaint with PEM Convention. Approval of Decision 1/2014 of the Joint Committee concerning amendments to Protocol II is under approval procedure. The Council of Ministers approved the Decision No 255 of 25.3.2015 “On the approval in principal of the Decision of the EU-Albania Stabilisation and Association Council replacing Protocol 4 to the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Albania, of the other part, concerning the definition of the concept of 'originating products' and 'methods of administrative cooperation'. The aim is to make the SAA rules of origin compliant with the PEM Convention.The draft law is submitted to the Parliamentfor adoption. It is already agreed that amendments will become effectiveas of 1 May 2015. FTA with EFTA is being amended to introduce a new chapter on Trade and Sustainable Development, and proposed changes are under approval procedure. Albania ispursuing the same approach with EFTA States with regard to amendments to the rules of origin, though there is still a pending decision from EFTA States. Developments in bilateral cooperation during the reporting period include:
Capacity building for trade policy formulation and coordination remainsa top priority, with frequent training events on this topic delivered with the support of the Albanian School of Public Administration. Training events earmarked for 2014 took place in the second of 2014. Four daily training events took place in October-December 2014, two on EU Common Commercial Policy and WTO Law and two on trade in services and GATS rules. The last two training events were dedicated to the negotiating team for liberalisation of trade in services under CEFTA. Albania is working to establish a National Committee responsible for coordination and formulation of Trade Policy. It will also cover trade facilitation aspects as required by the WTO Trade Facilitation Agreement. Private sector representatives will be invited to participate in this Committee to ensure timely consultation on new trade policies. In the area of dual-use goods, amendments to Law No 9707 of 5.04.2007 “On State control overimport-export of military goods and dual-use goods and technologies“ are in progress. These aim at harmonisation with the Council Regulation (EC) No 428/2009 of 5 May 2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items. In accordance with NPEI, adoption is due in Q4 2015 and entry into force in Q1 of 2016. The Albanian State Export Control Authority prepared the updated list of dual-use goods in line with the Regulation (EU) No 388/2012 of the European Parliament and of the Council of 19 April 2012 amending Council Regulation (EC) No 428/2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items. This list is distributed to line ministries for approval and is expected to be passed by the Council of Ministers by May 2015. 30.2 Development Cooperation and Humanitarian Aid Albania provided relief assistance to Bosnia and Herzegovina and Serbia to cope with the aftermath of the flooding in May 2014 (100,000 EUR respectively). CHAPTER 31: FOREIGN, SECURITY AND DEFENSE POLICY Albania’s objective is to open accession negotiations with the European Union as soon as possible. The Albanian government is fully committed to the implementation of reforms. Albania has continued to actively support the strategic objectives of the EU’s foreign, security and defence policy. Albanian considers itself to be an important strategic partner of the EU with respect to addressing key foreign policy and security challenges which are faced within Europe. Albania has strongly supported the EU’s actions in the fight against terrorism.. Albanian policy is guided by respect for human rights and fundamental freedoms, effective implementation of law and international cooperation. Albania has continued to actively participate in regional initiatives and plays an important role in the reconciliation process in the region. Political dialogue EU-Albania The Albanian government is fully committed to the implementation of political reforms, with particular focus on public administration and judiciary. Central to this strategy is the fight against corruption and organized crime and the protection of fundamental rights. Progress in the fulfilment of the 5 Key Priorities for the opening of accession talks is assessed in a High Level Dialogue (HLD) with the European Commission. CFSP/CSDP Albania continues to actively support the objectives of EU foreign, security and defence policy (CFSP). Albania has sought to politically align itself, with relevant EU declarations and Council decisions which express EU CFSP policy. (Please refer to Annex III.31.1 - List of alignments with EU statements) In 2014, Albania aligned itself with and implemented restrictive measures introduced by Council decisions, including EU restrictive measures in the context of Russia’s illegal annexation of Crimea and events in eastern Ukraine. (Please refer to Annex III.31.2 - List of alignments on restrictive measures) The Albanian Government has identified that one of the main threats for the country’s security, economic and social development is the surplus stockpiled ammunition and the small arms and light weapons, existing within the country. The destruction of surplus conventional ammunition is a priority for the Albanian government and progress continues to be made towards the objective of restricting the availability of such weapons. Pursuant to the Defence Directive for 2015 and to the “Action Plan for the demolition/alienation of surplus ammunition in 2015", the Ministry of Defence objectives on the process of industrial demolition and blasting in open polygons, are to be completed within October 2015 and the process of alienation through the sale to be completed by the end of 2016. In the field of export control of military goods and equipment, the State Control Authority for Exports in the Ministry of Defence, has prepared an updated Military List in accordance with the Common Military List of the European Union (adopted by the Council on March 17, 2014) (equipment covered by Council common Position 2008/944/CFSP on defining common rules governing control of exports of military technology and equipment). Albania plans to formally adopt this list in 2015. Furthermore, in the context of Albania`s membership to Human Rights Councils, for the period 2015-2017 Albania has joined the EU and other Western countries efforts, providing its contribution to adequately address the protection of human rights in countries such as in Iran, the Democratic People's Republic of Korea and Myanmar Engagement of Albania in the international initiatives As regards the OSCE Missions in Ukraine, Albania deployed 3 observers in the Special Monitory Mission and 1 observer in the Observation Mission. In addition, Albania deployed 2 OSCE observers to assist in the monitoring of the parliamentary elections in Ukraine (October 2014) and 2 OSCE observers to monitor the parliamentary elections in Tajikistan (March 2015). On March 25, 2015, Albania was among the first signatory countries of the Council of Europe Convention against trafficking of human organs. As regards security measures, the security agreement with the EU on the exchange and mutual protection of classified information is still in the process of negotiation. Albania continues to participate in civil and military crisis management operations under the common security and defence policy (CSDP). Albania continues to take part in the EUFOR ALTHEA military mission in Bosnia and Herzegovina (contributing one officer). In January 2015 the Albanian Ministry of Defence declared the readiness of the Albanian Armed Forces to start the contribution in th EUTM in Mali in May 2015. Albania’s offer is being currently assessed by the EUTM Mali Mission Commander and the European Union Military Committee (EUMC). Relations between EU and Albania Albania participates in the Stabilisation and Association Process and continues to implement its obligations Regular political and economic dialogue between the EU and Albania has continued through the SAA structures. The Stabilisation and Association Committee and Council met in March and May 2015, respectively. Meetings of six subcommittees and of the special group on public administration reform were held. Albania participated in the multilateral economic dialogue with the Commission and the EU Member States to prepare the country for participation in multilateral surveillance and economic policy coordination under the EU’s Economic and Monetary Union. On 24 March 2015, Prime Minister of Albania, co-chaired the 5th Meeting of the High Level Dialogue (HLD) on the Key Priorities between Albania and the European Commission. It was preceded by a meeting of the 5 Joint Working Groups in February 2015. Albania has continued to actively participate in regional initiatives and plays an important role in the reconciliation process in the region. Albania participates in the South-East European Cooperation Process (SEECP), the Central European Initiative, the Regional Cooperation Council, the Energy Community Treaty and the Central European Free Trade Agreement. Albania, as a chairman of the SEECP for the period June 2014 - June 2015, paid special attention to the deepening of cooperation in the region, strengthening the regional role of SEECP and its sectorial consolidation, in order to accelerate regional integration as a prerequisite integration into Euro-Atlantic structures. In this context, in the calendar of activities of the Albanian Chairmanship of the SEECP, 40 events are scheduled, out of which 5 are at a ministerial level. Through the tight schedule of the Presidency, Albania promotes cooperation in a number of areas such as energy, tourism, culture, agriculture, security and justice, statistics and infrastructure. In the context of the Berlin Conference it has begun an important process of regional cooperation. Albania is undertaking maximum efforts with all countries of the region in identifying common projects. "Blue Highway" which connects Albania, Montenegro and Croatia, but extends beyond these countries, is just one example of a project that will begin implementation quickly and marks the beginning of the implementation of projects that connect the region closer to reality but also brings it closer to the EU. The Process of Berlin is an initiative that aims at turning the WB countries into an integrated region in economic terms. An integrated region, functioning according to EU standards and legislation, would limit the influence of other factors in the region – radicalism, etc., among others. As such, on my opinion, it is in line with the CFSP objectives, as it fosters internal cohesion within the WB and also enables the EU to exert a positive influence in our countries. Overall, Albania has continued to act as a constructive partner in the region, further developing bilateral relations with other enlargement countries and neighbouring EU Member States. 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