Customs Development Model

Customs DEVELOPMENT model 

Against the background of large-scale economic reforms underway in our country, the Customs Service carries on its activities based on the “Customs DEVELOPMENT model” with a view to achieving timely and high-quality performance of the tasks assigned to it. The ideological explanation of the DEVELOPMENT model is to move in the right direction, be innovative, focus on quality, act diligently and develop transparent, simple and useful customs solutions for citizens and business entities.

"Customs DEVELOPMENT model" consists of 7 main components:

Direction – this component represents movement in the right direction. Thus, the solutions and achievements obtained as a result of determining the most appropriate, optimal and shortest paths leading to DEVELOPMENT, contribute to the identification of priority issues based on the social needs of society.

Innovator - this component represents the development of completely new solutions, with the extensive use in the customs system of tools and mechanisms, worked out based on the latest achievements in the application of high technologies meeting the requirements of the modern times.

Quality - this component reflects the improvement of initiated projects by excluding quantitative indicators and focusing more on quality indicators.

Diligent – this component includes the involvement of human resources that promote team spirit, honesty and result-oriented activities, determine the parameters of motivation for career growth and evaluate the carried out work by indicators.

Transparent – this component characterizes the provision of a fully transparent and accessible service for both citizens and business entities at the same level.

Simple – this component implies the introduction of user-oriented, user-friendly and time-saving solutions and tools for citizens and business entities.

Beneficial – this component characterizes the development and implementation of proven and result-oriented solutions and tools for citizens and business entities. 

In order to achieve the ultimate objectives of the "Customs DEVELOPMENT model", arising from its basic essence in society, “Work Program of the Customs Service” - a strategic planning document, which defines short-term and medium-term prospective goals, priority directions and tasks of the State Customs Committee has been developed. The Work Program defines important issues in the administration of customs, the solution of which is necessary in accordance with the direction component of the DEVELOPMENT model. These issues are grouped into 4 categories:

1. Customs value and payments:

1.1. Improving the work on customs valuation and its adaptation to international practice; 

1.2. Application of customs duty rates and customs fees, classification of goods; 

2. Border crossing:

2.1.  Border crossing of vehicles and commercial goods;

2.2. Crossing of the customs border by physical persons and clearance of non-commercial goods and vehicles brought by them, including international postal deliveries;

2.3.   Providing customs clearance service prior to arrival at the customs border crossing points;

3. Process and procedures:

3.1.  Application of customs legislation; 

3.2.  Improvement of customs clearance business processes and special customs procedures (storage, inward processing, temporary import);

3.3.   Implementation of administrative and legal measures (not returning into the country the currency received for exported goods, etc.);

3.4.   Distribution of powers and workload;

4. System and tools:

4.1.   Improvement of electronic services;

4.2.   Personal account page for customs operations;

4.3.  Customs representatives and warehouses; 

4.4.   Key performance indicators (KPI);

4.5.   Customer Relationship Management (CRM);        

4.6.   Information exchange and coordination with external partners and other agencies; 

4.7.   Voluntary compliance and security of the trade-supply chain (Authorized Economic Operators, Advance Rulings);

The indicated issues have been classified depending on their difficulty and simplicity to apply, as well as the size of effect according to the quality component of the "Customs DEVELOPMENT model".

Then, in line with the diligent component of the DEVELOPMENT model, working groups were set up to apply a team approach to solving problems and these problems began to be addressed in groups. 

During the functioning of the working groups, a number of transparent, simple and beneficial projects have been implemented for citizens and business entities. Some of these projects have already been completed, others are ongoing.

Completed projects:

- E-account page;

- Issuing the notification for adjustment of customs value within 24 hours;

- Enabling release of goods based on a guarantee after issuing the notification;

- Use of advance rulings;

- Establishing a unified database for expert opinions;

- Electronic queue system for cargo vehicles at the border;

- Issuing Euro-4 certificate in electronic form;

- Determination of the guarantee in the initial amount of 5,000 AZN for the registry of goods containing objects of intellectual property rights;

- Enabling the calculation of the customs payments through an online calculator;

- Implementation of the Authorized Economic Operator Program.

Ongoing projects:

- Development of a new Customs Code in line with international standards;

- Implementation of customs control and clearance of goods and vehicles on the basis of AI-based Automated Risk Analysis System (ARAS);

- Improvement of the customs portal and "Smart Customs" mobile application;

- Explanatory notes on customs valuation methods;

- Establishment of a transit customs portal using the "Single Window" principle along the Middle Corridor;

- Development of the institute of representation by assessing the performance of customs representatives.

Planned projects:

- Establishment of a Single Import-Export Window (VIP) ensuring the regulation of foreign trade activities from one point in real time;

- Application of New Computerized Transit System (NCTS);

- Implementing a fully centralized Customs Decision Making System by developing the "ÖzüNET" mobile application; 

- Establishing a system enabling the submission of a customs declaration and making customs payments before goods are brought into the customs territory of the country, as well as payment of border fees at the customs point of destination and release of goods into free circulation through a two-step release system; 

- Automatic calculation of late fees on the e-account page by the system through a unified approach rather than manually by staff, as well as automatic calculation and collection of customs payments in the special customs procedure of temporary import.

Implementation of the "Customs DEVELOPMENT model", including other important issues identified as necessary to address in the administration of customs is our main priority ahead.