BizCLIR

The team did not assess the trade environment, but prior familiarity with customs programs, plus a number of comments from respondents, provided some noteworthy observations.

A multi-donor effort is currently underway to assist customs officials in reducing the flow of smuggled goods and enforcing customs laws equitable. USAID-supported efforts were reported by a number of non-USAID respondents to be making substantial progress. However, much work is still needed.

The business community expressed frustration with the new system of customs evaluation in which reference prices are used to determine whether the stated value of a shipment is within established commercial pricing for similar shipments. Reference values have been employed due to the high degree of undervaluation on invoices. Respondents working in this area felt that there is insufficient information flow between the public and private sectors on the system, why it is employed, and how it works. There appears to be a clear need for additional information and communication in this area.

Unequal application of customs duties was cited as a problem, providing competitive advantages to those who are able to smuggle or understate the value of their goods. One respondent expressed hope that the situation was improving, citing the integrity of the new director of customs and the positive reaction of the customs service when he complained of problems at a specific post. The existing customs programs should continue to make progress in improving the application of duties, but it might still be worthwhile to assist with increasing public awareness of the customs laws, and the economic impact of thwarting the law.