“The Importance of Customs Digitalization – the Case of the Republic of North Macedonia”

Abstract

The Customs administration, as an authority in charge for all international trade flows of goods - import, export and transit - nowadays is facing the challenge of full digitalization of customs procedures thus providing paperless environment. The aim of this paper is to put an emphasis on the impact from the rapid development of information technology upon the need of full digitalization of customs procedures and formalities and implementing paperless environment. Facing the challenge, the Customs Administration of the RN of Macedonia put special effort and installed several electronic platforms: the Customs Declarations and Excise Documents Processing System (CDEPS), the New Computerized Transit System (NCTS), the Integrated Tariff Environment (ITE) and the Single Window for Licenses and Tariff Quotas (EXIM). Another aspect of the process of full digitalization of customs procedures and formalities for the Macedonian Customs Administration is the process of transforming the free trade area established among the CEFTA-2006 countries, of which the country is a part, into higher level of economic integration by the establishment of the regional economic area. The process of deepening the economic integration among the member-states is based on enhancing cooperation among their Customs administrations through full digitalization. As part of the agenda on digitalization and paperless environment, the CEFTA – 2006 Agreement was amended with incorporation of additional protocols: Protocol 5 on liberalization of trade in goods; Protocol 6 on liberalization of trade in services and Protocol 7 on trade dispute settlement mechanisms. Protocol 5 sets forth requirements for higher level of regional cooperation and integration through customs digitalization and enhanced level of data exchange. The paper is making overview of the current state of the implemented electronic platforms providing customs digitalization by the Customs Administration of the Republic of North Macedonia, as well as their performance up-to-date. It provides an overview of similar measures undertaken by other CEFTA Parties. The paper provides recommendations on the necessity for a synchronized and uniformed implementation of Customs digitalization processes, as well as of the implementation of interoperable interfaces and electronic platforms for processing of all documents and data for Customs purposes at regional level. Implementing the processes of Customs digitalization and paperless environment with different pace in different member-states instead of providing deeper trade integration and trade facilitation might be a source for enacting new barriers in the trade exchange of goods within the regional economic area, which is already evident on the example of the Macedonian Customs.