DTIS, Volume I - Enhanced Integrated Framework (EIF)
DTIS, Volume I - Enhanced Integrated Framework (EIF) DTIS, Volume I - Enhanced Integrated Framework (EIF)
The main user groups of customs services are composed of the public and private sector importers and exporters. Only registered importers/exporters and transport providers are allowed to process cargo declarations at customs. A fairly substantial group of individual and small companies provides maritime and air transport – the latter handles only limited amounts of goods as virtually all transport of goods to and from the Maldives and within the country is by sea. There are six shipping agents responsible for providing services and facilities to aircraft and cargoes. They also provide air inward and outward manifests for customs clearance formalities. A similar number of direct trader input agents, one of which is government owned, are responsible for processing import and export declarations (cargo goods and passenger carrying items subject to duty). Two government-owned corporate companies play key roles in import and transport. The State Trade Organization (STO) is responsible for the import of strategic goods such as basic food items, petrol and a vast number of other merchandise. The STO owns and operates several warehouses in Male’ and the atolls. It holds almost monopoly rights regarding the import of engines for the fishing and other privet sector transport vessels. The main player in inter- and intra-atoll maritime transport is the Maldives Transport and Contracting Company (MTCC), which are partially privatized. MTCC also imports most of the construction material and transport equipment and carries out major construction activities. Small-scale operators provide inter-atoll transport. III. Issues for Customs Services Reform Transaction costs are lower when customs procedures are carried out efficiently. The DTIS research confirmed that there is a perception among private sector users that customs procedures are not applied in a uniform and customary way across the country. Malpractice is alleged arising from face-to-face contact between clients and customs officers. But the overall assessment of the DTIS team is that customs procedures are satisfactory although there is room for improvement. A. IMPORTS Goods at import must go through four main stages before they are cleared from Customs control: • Valuation • Documentation • Payment to Cashier • Examination & Release These procedures comply with international standards and are generally performed according to the manuals developed by MCS at a satisfactory level. The cashier collects 79
the correct amount of customs duty using ASYCUDA++ software. But there are concerns arising from valuation and invoice amounts. Table 6.1 below indicates the level of fraudulent invoicing. Standard procedures for appeal are in operation. Table 6.1: Invoice corrections period Jan-June 2005 (no of invoices) Month Price accepted Price uplifted Total invoices Uplifted % scrutinised January 1,849 533 2,382 22% February 1,609 427 2,036 21% March 2,133 579 2,712 21% April 1,862 503 2,365 21% May 2,137 537 2,674 20% June 1,944 490 2,434 20% Source: Maldives Customs Service - 2005 B. EXPORTS Goods for export go through the following control procedures: • Export License • Export Declaration • Examination & Release • Documentation Again, internationally accepted procedures are followed at a satisfactory level. C. ISSUES FOR REFORM The Maldivian MCS has come a long way in terms of carrying out its duties, and the organization appears to be relatively efficient. Management and staff appear to be resilient and committed to carrying out the services under their responsibility. Accountability is satisfactory for meeting agreed revenue targets. A code of conduct has been issued to all customs staff, and this greatly assists the establishment of a high degree of integrity within the organization. The facilities available, rooms and equipment are generally modern and spacious. Notwithstanding the foregoing, weaknesses were observed. These include the fact that although the MCS is computerized and officers have received training in operating such tools and facilities, there are still gaps at the technical level hindering an optimal use of the technology and IT software systems available. For example, the ASYCUDA++ is not fully utilized and all potential application towards more efficient use has not been explored. In addition, current operational systems and procedures in the cargo control area impede the movement of goods and do not meet the set objective of obtaining maximum revenue at minimum cost. There is also a lack of effective communication and coordination among customs services, the trading community and other agencies (port authority, aviation services, clearing agents, coast guard or police), which adversely affects the efficiency of processes relating to the movement of goods. 80
- Page 51 and 52: on goods deemed luxury goods (e.g.
- Page 53 and 54: the Japan and USA markets. 11 Fish
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- Page 57 and 58: emoved. However, in order to provid
- Page 59 and 60: EBA. Appropriate transition arrange
- Page 61 and 62: Several provisions such as Article
- Page 63 and 64: CHAPTER 4 POVERTY REDUCTION AND HUM
- Page 65 and 66: Table 4.2: Poverty Gap Ratios per R
- Page 67 and 68: produced locally and are readily av
- Page 69 and 70: commerce, information and communica
- Page 71 and 72: Table 4.3: Fishery Sector employmen
- Page 73 and 74: This also requires policies that ta
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- Page 81 and 82: K. PRIVATE SECTOR STAKEHOLDERS Priv
- Page 83 and 84: Overall, it is estimated that the c
- Page 85 and 86: The cash is held and disbursed by t
- Page 87 and 88: difficult to reach given the except
- Page 89 and 90: system of micro-credit intermediari
- Page 91 and 92: F. LAND, RAW MATERIALS AND SUPPLIES
- Page 93 and 94: B. LABOUR MARKET REFORM About 44 pe
- Page 95 and 96: Appendix The mixed record of the Ma
- Page 97 and 98: legislation incorporates the initia
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- Page 101: Maldives Port Authority • Respons
- Page 105 and 106: suspense procedures, thus eliminati
- Page 107 and 108: A new domestic terminal at MIA will
- Page 109 and 110: There is need to clarify MAC’s na
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- Page 113 and 114: Significant improvements have been
- Page 115 and 116: CHAPTER 7 THE TOURISM SECTOR Chapte
- Page 117 and 118: British market in 2001. In 2004, be
- Page 119 and 120: Similarly, considerable demand was
- Page 121 and 122: for imports of support infrastructu
- Page 123 and 124: government revenues from the supply
- Page 125 and 126: number of trainees that have been t
- Page 127 and 128: established as a quality tourism de
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- Page 131 and 132: The Faculty works very closely with
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- Page 137 and 138: D. ESTABLISH AN ENABLING BUSINESS E
- Page 139 and 140: Main Recommendation No. 5: review a
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- Page 145 and 146: processing under-performing more th
- Page 147 and 148: per cent - see Table 8.4. The secto
- Page 149 and 150: In the light of these market trends
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The main user groups of customs services are composed of the public and private sector<br />
importers and exporters. Only registered importers/exporters and transport providers are<br />
allowed to process cargo declarations at customs. A fairly substantial group of individual<br />
and small companies provides maritime and air transport – the latter handles only limited<br />
amounts of goods as virtually all transport of goods to and from the Maldives and within<br />
the country is by sea.<br />
There are six shipping agents responsible for providing services and facilities to aircraft<br />
and cargoes. They also provide air inward and outward manifests for customs clearance<br />
formalities. A similar number of direct trader input agents, one of which is government<br />
owned, are responsible for processing import and export declarations (cargo goods and<br />
passenger carrying items subject to duty).<br />
Two government-owned corporate companies play key roles in import and transport. The<br />
State Trade Organization (STO) is responsible for the import of strategic goods such as<br />
basic food items, petrol and a vast number of other merchandise. The STO owns and<br />
operates several warehouses in Male’ and the atolls. It holds almost monopoly rights<br />
regarding the import of engines for the fishing and other privet sector transport vessels.<br />
The main player in inter- and intra-atoll maritime transport is the Maldives Transport and<br />
Contracting Company (MTCC), which are partially privatized. MTCC also imports most<br />
of the construction material and transport equipment and carries out major construction<br />
activities. Small-scale operators provide inter-atoll transport.<br />
III. Issues for Customs Services Reform<br />
Transaction costs are lower when customs procedures are carried out efficiently. The<br />
<strong>DTIS</strong> research confirmed that there is a perception among private sector users that<br />
customs procedures are not applied in a uniform and customary way across the country.<br />
Malpractice is alleged arising from face-to-face contact between clients and customs<br />
officers. But the overall assessment of the <strong>DTIS</strong> team is that customs procedures are<br />
satisfactory although there is room for improvement.<br />
A. IMPORTS<br />
Goods at import must go through four main stages before they are cleared from Customs<br />
control:<br />
• Valuation<br />
• Documentation<br />
• Payment to Cashier<br />
• Examination & Release<br />
These procedures comply with international standards and are generally performed<br />
according to the manuals developed by MCS at a satisfactory level. The cashier collects<br />
79
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