1. Customs Index with the support of the InMind research company EBA Customs INDEX Based on I/II quarter 2011 Conducted by EBA with the support of InMind research company July 2011

2. Customs Index with the support of the InMind research company 2 Project methodology (1) The presented results of the EBA Customs Index are based on the 3 rd wave of expert poll conducted among the EBA Customs Committee members. Methodology: The EBA Customs Index is the set of 5 indicators of customs procedures evaluations by the companies that interacted with the customs: Average number of days spent for customs clearance of one shipment Rate of goods physical inspections (%) Customs classification: rate of goods classification that was changed by customs (%) Customs value: total number of rejections to apply 1st customs valuation method (share of total customs declarations number, %) Average number of documents per one shipment Additionally companies’ experience with customs audits/inspection and perception of corruption are analyzed.

3. Customs Index with the support of the InMind research company 3 Project methodology (2) The results are presented by each of 5 indicators separately as the average value for each indicator (mean) reflected also in the charts the numeric value separating the higher half of a sample, from the lower half (median) The results are also split by:  Company type: a) only import/export produced goods, b) companies import/export goods and also have local production  Company size: a) small/medium business; b) major business Participants: 40 representatives of EBA members companies, Customs Committee members Timing: Data collected in the 2 nd half of 2011 and reflect situation in the 1 st half of 2011 Survey Implementation: the Survey was conducted by EBA, analytical support provided by InMind research company

4. Customs Index with the support of the InMind research company 4 Key findings 1 st half of 2010 2 nd half of 2010 1 st half of 2011 Average number of days spent for customs clearance of one shipment 2,42,02,5 Rate of goods physical inspections (%)55%52%26% Customs classification (%)N/A6%8% Customs Value: Total number of rejections to apply 1st customs valuation method (%) 34%38%27% Average number of documents per one shipment 10,810,99,8

5. Customs Index with the support of the InMind research company 5 EBA Customs Index: Components

6. Customs Index with the support of the InMind research company 6 Average number of days spent for customs clearance of one shipment Average number of days spent for customs clearance constitutes 2.5 days, which did not vary either among importers /exporters and companies with local production or among companies of different size. Compared to the previous wave the average number of days practically has not changes (2.5 versus 2.0 days). Mean level = 2,5 days Median = 2,0 days

7. Customs Index with the support of the InMind research company 7 Rate of goods physical inspections (%) Rate of goods physical inspection has decreased compared to the 2 nd half of 2010 for all types of companies. While respondents have declared over 50% of goods underwent physical inspection in 2010 the average number of inspections in 2011 have dropped to 26% on average. Mean level = 26,2% Median = 10,0%

8. Customs Index with the support of the InMind research company 8 Customs Classification: rate of goods classification that was changed by customs (%) An insignificant trend to increased rate of goods classification that was changed by the customs was noted by respondents (from 6% to 8%), although it remained comparatively low with slightly higher rate for importers and exporters compared to companies that have local production Mean level = 8,1% Median = 2,5%

9. Customs Index with the support of the InMind research company 9 Total number of rejections to apply 1st customs valuation method (share of total customs declarations number) % The total number of rejections to apply 1 st customs valuation method has shown a trend to decrease in the 1 st half of 2011 (27% in 2011 versus 38% in 2010). Differences between various types of companies are insignificant. Mean level = 27,2 % Median = 10,0 %

10. Customs Index with the support of the InMind research company 10 Average number of documents per one shipment Average number of documents to be submitted per one shipment is reported as 10 on average (compared to 11 documents in 2010). The median statistic (10 documents) remained unchanged indicating no changes by this indicator. Mean level = 9,8 documents Median = 10,0 documents

11. Customs Index with the support of the InMind research company 11 Audits/inspections experienced during the period Among all survey participants 40% has experienced customs audit or inspections during the 1 st half of 2011. While half of the companies out of this number reported only 1 inspections, the rest underwent between 2 and 5 inspections showing a trend to overall increase in audits and inspections during the correspondent period The duration of customs audits/inspections varied from 1 to 30 days whereas majority took up to 5 days and only 3 inspections took over 20 days.

12. Customs Index with the support of the InMind research company 12 Corruption perception in the customs service Only 15% assumed the corruption has recently decreased, while every fourth company reported further worsening of the situation From 62% of participants’ recent experience / view corruption in the customs service remained the same compared with the previous 6 months when respondents were reporting significant increase in corruption

13. Customs Index with the support of the InMind research company +38 044 496 06 01 office@eba.com.ua www.eba.com.ua