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TULLI TULL CUSTOMS. Introduction Jari Forsblom Head of Procurement National Board of Customs.

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Presentation on theme: "TULLI TULL CUSTOMS. Introduction Jari Forsblom Head of Procurement National Board of Customs."— Presentation transcript:


2 Introduction Jari Forsblom Head of Procurement National Board of Customs

3 3 Content of my presentation 1. Short overview – Finnish Customs Service 2. Purchasing strategy – Ministry of Finance 3. Purchasing strategy – National Board of Customs 4. Our purchasing process 5. Our organisation for purchases 6. Hansel Ltd. – Finnish Public Procurement Company 7. Purchasing development pilots by Ministry of Finance 8. Public Procurement at EU countries

4 4 AdministrationAdministration Foreign tradeForeign trade EnforcementEnforcement TaxationTaxation Organization of the Finnish Customs Service Ministry of Finance Advisory Committee of Customs Director General Board of Customs Customs Districts (5) Customs Laboratory General Staff

5 5 Raja-Jooseppi Raja-Jooseppi Salla Salla Kuusamo Kuusamo Vartius Vartius Niirala Niirala Uukuniemi Uukuniemi Parikkala Parikkala Imatra Imatra Nuijamaa Nuijamaa Vainikkala Vainikkala Vaalimaa Vaalimaa Total length of the border 1269 kilometres Finnish customs posts on the EU-Russian border

6 6 CUSTOMS DISTRICTS Aland Customs District Southern Customs District Western Customs District Eastern Customs District Northern Customs District

7 7 Personnel 2003 Total 2500 Regional administration 2098 Regional administration 2098 National Board of Customs 326 National Board of Customs 326 Customs Laboratory 76 Customs Laboratory 76

8 8 Staff 31.12.2003 Total 2500 personnel Southern Customs District Eastern Customs District Western Customs District National Board of Customs Northern Customs District Laboratory 1000 900 800 700 600 500 400 300 200 100 Aland Customs District


10 10 Finnish Customs is an operatively independent government agency under the Ministry of Finance. The resources and the key areas of activities are laid down in an annual result agreement between the Ministry and the National Board of Customs Management system of Finnish Customs

11 11 Purchasing Strategy – Ministry Of Finance issued at 15.10.2004 it is based on the idea of ABC Product Strategy Categories the main target is: to increase productivity and efficiency the main ways to reach this target are: to have better co-operation inside the ministry and between other ministries and offices to have better planning of purchases to carry out them by more efficient way to concentrate into core purchasing areas to utilise more the services and experience of our public procurement company Hansel Ltd.

12 12 Purchasing strategy: National Board of Customs it is based on the purchasing strategy of Ministry of Finance, which is more responsible over the development of purchasing processes in order to get cost savings following also the other guidelines issued by Ministry of Trade and Industry, which is more responsible over the legislation on public procurement, like developing General Terms of Public Procurement for Finland

13 13 Purchasing strategy II the key element is own ABC Product Category classification, which determines that who will take care of the purchase the possibilities are: to carry the purchase out by ourselves at a) National Board of Customs –level or at b) Customs District/Laboratory –level to carry it out a) with the co-operation of some other ministries or b) by public procurement company Hansel Ltd. when we take care of the purchase ? if the product is classified at A Product Category

14 14 Purchasing Strategy III the value of purchase is remarkable, if it is over 40.000 Euros and classified as A product for us, so National Board of Customs takes always care of the purchasing process, for we have more competence and resources than our districts we have already organised the competition and have the contract in place with the suppliers(s) the product(s) are technically complicated and we have the technical knowledge inside the office it is generally agreed that we will organise Customs Service wide procurement competition the purchase of B Category products are partly taken care by ourselves or partly by Hansel Ltd. / other governmental office, Hansel Ltd. takes always care of C Category products

15 15 Purchasing Strategy continues Price Purchasing decision Transport Storage Environment Quality Planning Administration Freight Finance Handling Order

16 16 ABC Product Categories A Product Class Expert and research services provided for our purposes only ICT (HW & SW) systems with specific requirements Internal telecommunications networks Specific law enforcement security systems Measurement equipment for Customs Laboratory Special designed patrol boats Official and protection clothing Guns with accessories B Product Class Travel management (centralised by Hansel)

17 17 ABC Product Categories II Telecommunication services (phones etc.) Cleaning and facility management services Facility surveillance and guarding Printing matters (envelopes, forms, leaflets, books) Occupational health care services Training services IT repair services PCs, laptops with normal office SW Normal IT servers for emailing, www-pages etc. Banking services

18 18 ABC Product Categories III C Product Class Office furniture Office supplies Books, newspapers, magazines etc. Office machines for copying, faxes, printers etc. Mobile phones Cars and other vehicles Fuel and lubricant Energy (electricity, heating, water) Transport services Postal services

19 19 Our purchasing process Specified at our rule book of financial administration, which tells that how budgetting of purchases is done, how the book-keeping of fixed assets is organised and how they are written off or exterminated from accounting The rest is specified more closely at the rule book of material management (the newest version is issued at 7.11.2003) The resources and the key areas of activities are laid down in an annual result agreement between the Ministry and the National Board of Customs The resources and the key areas of activities are laid down in an annual result agreement between the Ministry and the National Board of Customs

20 20 Our purchasing process Budgetting 31.12., for items 2.000,- Euros and more Proposal for purchase signed by the owner of Cost Center or his boss(es) To the Materials Management Unit or purchasing person at district

21 21 Our purchasing process Materials Management Unit or trained purchasing person at the district makes the decision, if the proposal for purchase is justified or not He or she will also make the decision of the right purchasing method (ABC Product Categories): to use the existing procurement agreement or to use one of the procedures mentioned at Public Procurement Act 1992, if the value is under EU threshold or to use Open/Restricted//Negotiated Procedure according to EU Directives, if the value is over EU threshod (154.014,- €)

22 22 Purchasing volumes 2003, TOP 8 Areas, Totally 29,8 Million Euros

23 23 Our organisation for purchases Materials Management Unit Procurement Facility Management Security & Transportation

24 24 Procurement – 7 persons directly and the rest at 5 districts / laboratory 1. Facility management, bigger law enforcement cases 2. Travel mgnt, official clothing, measuring equipment 3. Office furniture, supplies, machinery, books etc. 4. Vehicles, guns, digital cameras, printing matters etc. 5. ICT HW & SW, mobile phones, consulting etc. 6. Telecommunication networks, telephone switches 7. Internal security devices, environment issues etc. 8. Buyers at 5 districts and laboratory

25 25 Purchasing process A. B. C. D. E. F. G. H. I. J. K. L. M. N. 1.VISION The principles and goals of the organisation and its PP sector 2. Steering and monitoring 3. Development A.Market analysis B.Planning of the purchase C.Chosing the right method for the purchase D.Drafting the Invitation to tender E.Planning the award criteria F.Sending procurement notice and / or invitation to tender G.Receival of the tenders H.Qualification of the tenderer, tender form and the contents of the tender I.Evaluating the tenders J.Decision making K.Informing L.Remedies M.Contract and/or order N.Monitoring the contract and delivery 5. Document management 4. Purchase process 5.

26 26 One practical thing Because the tendering process takes so long time, e.g. 52 days for the cases, where the value goes over the threshold mentioned at EU Directive, so it is really important to have technical experts and knowledge of the products inside the office in order to save time ! Often purchasing person starts to look for the possible suppliers, to whom the invitation for tenders could be sent and then we are losing lots of time and the quality of tenders could be poor because of missing technical criterias.

27 27 Hansel Ltd. – Public Procurement Company Founded at 1941, non-profit making company C. 60 employees Serving all governmental offices, but not counties/cities The estimated purchase volume for government 4,5 billion Euros, of which Hansel Ltd. tries to get as big part as possible (nowadays close to 10 %) 8 service portfolios making the contracts Vehicles Consumables and investment products

28 28 Hansel Ltd. continues ICT HW & SW Travel management Fuel and energy Financing services Office products Facility management Hansel Ltd. is nowadays more important partner for us so that we can concrete to our core procurement areas and utilise their contracts as much as possible

29 29 Purchasing developments projects Ministry of Finance has launched 4 governmental wide purchasing development projects on 8.10.2004 National Board of Customs is participating in 3 projects The projects are: To organise and steer better the purchases Strengthening the co-operation in the field of procurement Better materialising of service type of purchases Effectiviness of purchasing process and the usage of IT

30 30 Public Procurement at EU countries A study was made at Helsinki School of Business and Administration on behalf of Hansel Ltd. during summer 2004 Around 20 of EU countries answered to the questionnaire Some good www-links for finding best practices: Belgium: Irland: and UK: and and Austria: and

31 LABAI DEKUI ! Klausimais ??? Email:

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