1. Based on results of III/IV quarters of 2012
EBA Customs INDEX
Based on results of III/IV quarters of 2012
Conducted by EBA
with support of
InMind research company
February 2013

2. Project Design
The represented results of EBA Customs Index are based on data of expert survey conducted among EBA members.
EBA Customs Index
It represents evaluation of 5 factors characterizing customs procedures, being undergone by companies while interacting with customs. Calculation of the customs index is based on weighted means of each factor.
Factors and weight coefficients
Evaluation of procedures of customs clearance of one supply (25%)
duration of customs clearance of one supply(12,5%)
share of goods chosen for physical inspection (10%)
share of goods, classification code of which has been changed by customs authorities (2,5%)
Evaluation of customs value identification procedure (25%)
Amount of paperwork (25%)
Number (5%) and duration (5%) of inspections
Professional level of customs authorities (15%)
Additional information
In addition to expert evaluation of factors, survey includes measures of each factor indexes de-facto.
As additional information for customs procedures the survey also regarded:
Usage of electronic declaration practice
Evaluation of change in corruption level of customs authorities
Evaluation of usage practice of the new Customs Code

3. Report Comment
The results are based on data of the 5th wave of expert survey regarding real experience of companies. The expert evaluations of factors characterizing customs procedures and calculation of the integral index are conducted for the first time.
The report is structured by information regarding each factor and contains the following data:
Measures of central tendencies of expert evaluations of each factor (mean and median)
Distribution of expert evaluations of each factor by 5-point scale
Mean values of indexes characterizing each factor (in dynamics)
The results are also segmented by company size: small/medium and big business
Participants: 52 representatives of EBA companies-members and participants of the Customs Committee
Timeframes: data collected in February 2013 and reflect the situation of the 2nd half 2012
Conducted: The research is conducted by EBA,
analytical support: InMind research company

4. Overall results: customs index
Scale from 1 to 5, where:
1 – minimum/negative index value
3 – average/neutral index value
4 – maximum/positive index value
1st half
2012
2nd
half 2012
CUSTOMS INDEX
(integral index)
2,84
3,06
Customs clearance of one supply:
3,15
3,28
- duration of customs clearance
3,16
3,02
- share of goods chosen for physical inspections
3,30
3,74
- share of goods, classification code of which was changed
2,50
2,74
Customs value
3,13
3,44
Amount of paperwork
2,11
2,27
Inspections
3,46
- number of inspections
4,91
4,92
- duration of inspections
1,98
2,00
Professional level
2,63
3,12 4

5. Overall results: experience of companies
1st half 2010
2nd half 2010
1st half 2011
2nd half 2011
1st half 2012
2nd half 2012
Average number of days spent on custom clearance procedures for one supply
2,4
2,0
2,5
2,8
2,7
Share of goods chosen for physical inspections (%)
55%
52%
26%
41%
22%
14%
Customs classification (%)
N/A 6% 8% 9%
Customs value: overall number of customs authority refusals (%)
34%
38%
27%
33%
24%
Average number of documents demanded for customs clearance of one supply
10,8
10,9
9,8
10,6
8,0
10,2
Average share of companies, which experienced inspections after customs clearance
40%
23% 3% 4% 5

6. EBA Customs INDEX:
Components

7. Duration of customs clearance of one supply
Scale from 1 to 5, where:
1 – minimum/negative index value
3 – average/neutral index value
5 – maximum/positive index value
Average Index
of duration of customs clearance
of one supply
Average number of days, spent on customs clearance of one supply:
from the moment of the border control start to the moment of customs clearance finish in the destination customs
Average number of hours, spent on authorization of one customs declaration:
from the moment of application of customs declaration to a customs authority to the moment of its authorization completed
HALF OF THE YEAR
Results by detailed scale of the index (from 1 to 5)
Negative value
Positive value
Duration of customs clearance of one supply is NOT reasonable and NOT acceptable for our company
Duration of customs clearance of one supply is completely reasonable and acceptable for our company

8. Share of goods chosen for physical inspections
Average Index
of reasonability of share of goods
chosen for physical inspection
Scale from 1 to 5, where:
1 – minimum/negative index value
3 – average/neutral index value
5 – maximum/positive index value
Average share of goods chosen for physical inspection
Comparing to total number of supplies in %: number of physical inspections / total number of supplies* 100%
HALF OF THE YEAR
Results by detailed scale of the index (from 1 to 5)
The share of goods chosen for physical inspection is NOT reasonable regarding the total number of supplies in our company
Negative value
Positive value
The share of goods chosen for physical inspection is completely reasonable regarding the total number of supplies in our company

9. Share of goods, classification code of which has been changed
Average Index of
customs classification conclusion
Scale from 1 to 5, where:
1 – minimum/negative index value
3 – average/neutral index value
5 – maximum/positive index value
Average share of goods, classification code of which has been changed by customs authorities,
comparing to the total number of goods (%): number of goods, classification code of which has been changed / total number of goods * 100
HALF OF THE YEAR
Results by detailed scale of the index (from 1 to 5)
Negative value
Positive value
In majority of cases I DO NOT agree with the customs classification conclusion
In majority of cases I agree with the customs classification conclusion

10. Customs value Average Index of
reasonability of refusals to acknowledge
the customs value
Scale from 1 to 5, where:
1 – minimum/negative index value
3 – average/neutral index value
5 – maximum/positive index value
Average number of customs authority refusals to apply the first method for identification of the customs value
(i.e. by agreed value, share of total number of custom declarations)
HALF OF THE YEAR
Results by detailed scale of the index (from 1 to 5)
Occurrences of unreasonable refusals to acknowledge the customs value are systematic (more than 4 times a month)
Negative value
Positive value
There are no occurrences of unreasonable refusals to acknowledge the customs value, or such occurrences are sporadic
Did you receive any written explanations of the reasons for refusal to apply the first method?
Yes, 27%
Has it ever happened that custom authorities invoked using indicative prices without application of methods 2-5?
No, 65%

11. Amount of paperwork Average Index of
paperwork onerousness for company business-processes
Scale from 1 to 5, where:
1 – minimum/negative index value
3 – average/neutral index value
5 – maximum/positive index value
Average number of documents, application of which to customs authority and other inspections was demanded for customs clearance of one supply:
(sanitary, phytosanitary, epidemiological, etc.)
HALF OF THE YEAR
Results by detailed scale of the index (from 1 to 5)
Negative value
Positive value
The number of documents is large and oppressive for business-processes
The number of documents is reasonable and NOT oppressive for business-processes

12. Checks Average Index of number and duration of inspections
Scale from 1 to 5, where:
1 – minimum/negative index value
3 – average/neutral index value
5 – maximum/positive index value
Average share of companies, which have experienced inspections after customs clearance is completed
Average duration of customs inspection: number of days
HALF OF THE YEAR

13. Professional level of customs authorities
Average Index of
professional level
of customs authorities
Scale from 1 to 5, where:
1 – minimum/negative index value
3 – average/neutral index value
5 – maximum/positive index value
HALF OF THE YEAR
Results by detailed scale of the index (from 1 to 5)
Negative value
Positive value
Professional level of customs authorities is mostly low
Customs authorities mainly own high level of professionalism

14. EBA Customs INDEX:
Additional results

15. Electronic declaration
Does your company use electronic customs declarations/electronic pre-alert declarations in its business activity?
Yes (+40%) No
Average share of pre-alert declarations, which are applied electronically
92% (+14%)
Average share of customs declarations, which are applied electronically
78% (+44%)
Electronic declaring doesn’t lead to simplification and acceleration of the cargo customs clearance process
Negative value
Positive value
Electronic declaring really simplifies and accelerates the cargo customs clearance process

16. Corruption level
From your point of view, during the last 6 months, corruption in customs authorities:
Decreased – 27% (+2%)
Increased – 13% (-3%)

17. The New Customs Code
Is adoption of new edition of the Customs Code a positive event for your company?

18. Changes of the Customs Code in use
In order of loss of usage frequency :
Simplified electronic declaration
Choosing Customs: Customs clearance of goods beyond the place of registration
Confirmation of customs value
4 hours for customs clearance

19. Changes of the new Customs Code which still remain inaccessible
In order of loss of usage frequency:
Customs evaluation with the use of the 1st method, automatic evaluation
AEO status
Return of extra customs payments from the budget
Impossibility to declare goods without them entering the customs territory of Ukraine
Declaration of goods with the use of a previous declaration
Clearance of a large nomenclature of goods by one code, temporary declaration
4 hours spent for the customs clearance
Customs clearance out of the accreditation place