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By Victor Nechayev, consultant for the Institute of International Economic Relations and Customs
New
priorities have been set for international rights, leading the customs legislation
in Latvia to experience substantial change. Customs cooperation in the Baltic
States poses as a good example for other post-Soviet countries and the Baltics
have clearly defined their positions in regard to foreign economic relations,
as global economic developments now demand countries to put their historical
experience in regional cooperation to use.
A ceremonial meeting held in January 2001 marking the anniversary of Latvia's customs service, was attended by Michel Danet, Secretary General of the World Customs Organization, who delivered a speech emphasizing the priorities that should be implemented in the next century to further develop the Latvian Customs service. These priorities include the following:
These above mentioned priorities are in compliance with the
following processes already ongoing in other countries: geographical expansion
of market economies with the number of countries implementing corresponding
economic policies on the rise, the active search for new markets by private
and also transnational corporations, capital placement, movement of labor forces,
expanding use of new technologies and the modernization of cargo processing
facilities (Internet trade, electronic documentation and data exchange).
Having these characteristics of developing global economic relations common
for the entire Northern European region (The Northern Dimension), the
historical experience of co-operation between the countries of the Baltic Sea
region (Germany, Denmark, Sweden, Finland, Russia, Estonia, Latvia, Lithuania
and Poland) dating back to the period of the Hansaetic League is what emphasizes
the importance of joint efforts in developing the underlying potential of this
region. Of course, it is no secret that the whole Baltic Sea region is relatively
small when compared to the global market; however, it possesses favorable advantages
of permanent nature that attract the attention of major global players doing
business in cargo shipping, advantages such as:
Nevertheless, only after having worked out common and indisputable
laws (clear of any sign of selfish interests and/or corruption) on the relationship
between countries on all levels (on international, national, department of state
and municipal levels) can the Baltic region then expect a change in the direction
of cargo flows and benefit from its advantages. Common policy is a substantial
precondition for implementing tax and tariff policies, the common use of services
provided by transportation, warehousing, forwarding and other facilities, as
well as efficient co-operation in the sphere of customs clearance procedures
and customs control.
Besides all this, by establishing joint customs control points (on Estonian-Latvian
and Lithuanian-Latvian borders) and carrying out joint programs on risk analysis
for potential customs offences and smuggling - with special attention devoted
to the carriage of goods such as alcohol and tobacco, the Baltic region sets
a good example for other Post-Soviet countries.
By joining the General Agreement on Tariffs and Trade (GATT),
followed by the accession to the Marrakech Agreement establishing the
World Trade Organization (WTO) and ratification of various international
conventions and agreements providing for foreign trade turnover, the Republic
of Latvia has clearly defined its position in regards to foreign economic relations
(including customs policies) - choosing the course towards economic integration:
trade liberalization, free movement of capital and so on.
In the sphere of customs it implies being in conformity with the requirements
stipulated by the principle of the most-favored nation treatment - according
to the conclusions made during the Uruguayan round of WTO talks (1988-1994)
this means striving for restrictions on imposition customs duties, the introduction
of non-tariff barriers, including different limits on the import and export
of goods, reduction quota use and negotiating more favorable licensing terms.
Nevertheless, liberalization of government regulations in regards to customs
procedures should not be understood as only an attempt to eliminate the above-mentioned
international trade barriers - it is also very essential to expand the possibilities
of the legal policymaking providing for both the use of state-of-art technologies
in customs clearance procedures and the implementation of world standards proven
to be effective in reducing the number of conflict situations.
Today, for instance, persons transporting goods may use the services rendered
by customs declaration and brokerage agencies, which submit the information
on goods stated in the declaration electronically, sending it to the customs
authority for further processing by computer. For these purposes ASYCUDA - the
automated system for customs data - is used by Latvian customs authorities for
analysis of information in customs declarations. The system's Software can ensure
the accounting of different customs payments, and also includes an assessment
of compliance to regulations by use of certain customs settings and risk analysis.
The use of this automated system helps to avoid conflict situations caused by
human factors - cases of subjective dislike between customs representatives,
who consider themselves being cheated, and persons declaring goods, which, in
turn, find that customs officials bicker unnecessarily.
Amendments made in the Customs Law of the Republic of Latvia in April 2001 serve
as another example, particularly when taking into consideration the current
global situation. Regulations stipulating the import of goods into free customs
zones or into free customs warehouses have now been adopted - thus when these
amendments take effect, the owner of goods will not be obliged to submit guarantees
to customs authorities concerning customs debt or any possible discharge.
Latvia has also joined the protocol of amendments to the International Convention
on the Simplification and Harmonization of Customs Procedures, passed in Brussels
on June 26, 1999. The positive aspects of joining this particular protocol are,
for instance, softer formulation of the corpus delicti for common customs
offences like submitting doubtful information to customs authorities or the
declaration of goods under another person's name (offences of this kind are
mentioned in the Codex of Administrative Offences (CAO)). The point of
the matter is that, according to the standard 3.39, set by the above-mentioned
convention, customs administrations may not really impose any penalties in regard
to the specified offences, in case they are of accidental nature (offences committed
due to inattentiveness) or as a result of technical failures - of course, the
presence of strong evidence is required. The given conditions were not particularly
highlighted in the previous versions of the CAO, thus widening the possibilities
of a formal approach to reviewing similar customs offence cases. Amendments
made to the Customs Law give basis to believe that positive changes in the relations
between the customs administration and private entrepreneurs are soon to come.
Fulfillment of these above-mentioned priorities means that businessmen and their
representatives in the future will less frequently come across red-taped obstacles.
It is considered that computerized processing of information and documents,
adopting analytical methods in everyday customs procedures and the establishment
of customer service offices free of like and/or dislike attitudes reminds us
that the 21st century has set in.
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