UNECE Steering Committee on Trade Capacity and Standards

Evaluation methodology Desk research and face-to-face interviews Desk study Previous studies Laws, policy documents

Scope Geographic coverage Albanian enterprises by location (2014) Berat 4% 5% 3% 3% 3%

Scope Sectors Strategic non-resource sectors. Listed using the Standard International Trade Classification (SITC) Revision

Scope Surveyed enterprises target markets Exports 40% 35% 30% 25% 20% 38% 15% 20%

Scope Surveyed enterprises supply sources 4% 5% 16% 46% 16% 6% Imports 8% ©

Highlights and priority needs Documentary requirements q. Some documents are difficult to obtain Importers

Highlights and priority needs Documentary requirements: Main recommendations § Address instances of repetitive submission

Highlights and priority needs At the border control Overreliance on physical inspection Burdensome payment

Highlights and priority needs Transport and logistical services § Improve facilities at BCPs and

Highlights and priority needs Transparency 38 percent of the traders reported relying on international

Highlights and priority needs Technical regulations and standardization Implementing the harmonized technical regulations is

Highlights and priority needs Conformity assessment § Establish a single centralized inventory of conformity

Highlights and priority needs Metrology § Harmonize national legislation with EU requirements § Strengthen

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UNECE Steering Committee on Trade Capacity and Standards High-Level Segment Regulatory and Procedural Barriers to Trade in the Republic of Albania: Needs Assessment Geneva, Switzerland 26 May 2016 Mr. Mika Vepsäläinen, Chief, Market Access © Copyright 2015 United Nations Economic Commission for Europe. .

Evaluation methodology Desk research and face-to-face interviews Desk study Previous studies Laws, policy documents and government decisions Development plans 2 © Copyright 2015 United Nations Economic Commission for Europe. . Face-to-face interviews: representatives of Government & trade support institutions Face-to-Face interviews: traders Line Ministries and State agencies Logistics service providers, transport operators, trade and enterprise support associations 78 traders from priority sectors

Scope Geographic coverage Albanian enterprises by location (2014) Berat 4% 5% 3% 3% 3% 13% 9% 10% 39% Dibër 4% 2% Elbasan 9% Fieri Durrës 9% 7% Gjirokaster Fier Korça Kukes 9% 44% 2% 5% 1% 3% Kukës Lezhë Shkodër Saranda Tiranë Tepelene Vlorë Tirana-Durrës highway Vlorë © Copyright 2015 United Nations Economic Commission for Europe. . 6% Pogradec Puke Gjirokastër Korçë Lushnje Permet 4% 1% 3% 1% Elbasan Source: Albanian Institute of Statistics

Scope Sectors Strategic non-resource sectors. Listed using the Standard International Trade Classification (SITC) Revision 3 (top level), these include: Breakdown of surveyed enterprises by activity § Food and live animals § Beverages § Animal and vegetable oils, fats § Chemicals and related products § Manufactured goods classified chiefly by material § Machinery and transport equipment § Miscellaneous manufactured articles © Copyright 2015 United Nations Economic Commission for Europe. . 27% 4% 9% 4% 37% Animal and vegetable oils, fats and waxes Beverages and tobacco 14% Chemicals and related products Crude materials, indedible 6% Food and live animals Manufactured goods classified chiefly by material Miscellaneous manufactured articles

Scope Surveyed enterprises target markets Exports 40% 35% 30% 25% 20% 38% 15% 20% 4% FYRM Serbia Montenegro Kosovo Italy Hungary Greece Germany France Russian Federation 4% 3% England Bosnia and Herzegovina China 0% 10% 4% Cyprus 5% United Arab Emirates United States of America 10% Reported country of Products destination Bosnia and Herzegovina Banana China Chrome, lemon and tomatoes Cyprus Pallets England Beer France Thyme Germany Sage and beer Greece Beer, furniture, herbs, pallet and spices Hungary Watermelon Italy Pallet and beer Kosovo Electrical equipment (alarm systems, sound systems, fire protection systems and switches, laptops, printers, servers), banana, dried fruit, herbs, honey, dairy products (fresh milk and cheese), fresh sausage, beer, raw materials for industrial butter, plastic water bottles, carton packaging and varnishes. Montenegro Banana and medicine Russian Federation Cucumber, peppers and tomatoes Serbia FYRM All references to Kosovo in the present document should be understood in full compliance with United Nations Security Council resolution 1244 and without prejudice to the status of the country © Copyright 2015 United Nations Economic Commission for Europe. . Banana Electric equipment (alarm systems, sound systems, switches, laptops, printers, servers), beer and spices United Arab Emirates USA Pallets Sage

Scope Surveyed enterprises supply sources 4% 5% 16% 46% 16% 6% Imports 8% © Copyright 2015 United Nations Economic Commission for Europe. . Austria China Greece Italy FYRM Turkey Others 27% 4% 9% 4% 37% Animal and vegetable oils, fats and waxes Beverages and tobacco 14% Chemicals and related products Crude materials, indedible 6% Food and live animals Manufactured goods classified chiefly by material Miscellaneous manufactured articles

Highlights and priority needs Documentary requirements q. Some documents are difficult to obtain Importers − EUR 1 Movement Certificate (for importers) − Import permits (medicine) Exporters − Certificate of analysis − Phytosanitary certificate − Veterinary certificate q. More needs be done to promote the use of electronic documents. Although importers and exporters are allowed to submit their declaration transactions online, the majority elect to use the services of customs brokers © Copyright 2015 United Nations Economic Commission for Europe. .

Highlights and priority needs Documentary requirements: Main recommendations § Address instances of repetitive submission of similar or identical information § Address the lack of clarity over documentary requirements § Establish a strategic framework for ensuring greater use of electronic documents § Create a proper system for regulating customs brokers § Improve the overall institutional set-up for regulating trade in pharmaceutical products © Copyright 2015 United Nations Economic Commission for Europe. .

Highlights and priority needs At the border control Overreliance on physical inspection Burdensome payment requirements Clearance is complicated by disagreements over customs valuation Main recommendations § Consolidate risk based control management systems and techniques § Improve inter/intra-agency coordination at the operational level § Reduce the financial burden of traders © Copyright 2015 United Nations Economic Commission for Europe. .

Highlights and priority needs Transport and logistical services § Improve facilities at BCPs and inland terminals The reconstruction or refurbishment of BCPs should feature special focus on basic infrastructure for clearing perishable goods, including (i) adequate facilities for physical inspection of cargo; and (ii) refrigeration points for perishable cargo; and (iii) quarantine facilities at or close to BCPs. In addition, proper office accommodation (rather than portacabins) should also be provided for NFA officials. § Improve the bargaining position of Albanian shippers Consider establishing a national shippers council to assume the function of negotiating favourable rates with international transport operators © Copyright 2015 United Nations Economic Commission for Europe. .

Highlights and priority needs Transparency 38 percent of the traders reported relying on international sources, particularly partner country chambers of commerce and international buyers/suppliers, to keep abreast of regulatory requirements. Main recommendations § Up-to-date information on trade-related rules and administrative procedures and their implication § Support services to enable the business community to fulfil EU regulatory requirements § Establish a trade training facility § Establish the National Trade Facilitation Council/Committee equipped with a permanent secretariat © Copyright 2015 United Nations Economic Commission for Europe. .

Highlights and priority needs Technical regulations and standardization Implementing the harmonized technical regulations is complicated by the lack of experienced staff with intimate knowledge of the different aspects of the EU directives and their implication for the Albanian economy Key recommendations § Build a core team of experts in the field of technical regulations in relevant line Ministries and State agencies. § Ensure proper implementation of existing and draft technical regulations § Improve existing coordination and oversight mechanisms § Ensure broad participation of business community § Strengthen the country’s standard-setting function 12 © Copyright 2015 United Nations Economic Commission for Europe. .

Highlights and priority needs Conformity assessment § Establish a single centralized inventory of conformity assessment bodies (CABs). § Assist testing laboratories implement ISO 17025. § Establish testing laboratories for heavy metals, including in air and water § Consolidate existing testing laboratories with the required expertise skills and equipment § Complement the draft national strategy on consumer protection and market surveillance for the period 2014 -2020 with a risk assessment methodology; policy statement on the principles underpinning market surveillance activities; and internal guidelines defining the scope of interagency coordination and procedures for facilitating such coordination 13 © Copyright 2015 United Nations Economic Commission for Europe. .

Highlights and priority needs Metrology § Harmonize national legislation with EU requirements § Strengthen existing laboratories with the necessary requirements to obtain international recognition § Improve the control function for pre-packaged goods 14 © Copyright 2015 United Nations Economic Commission for Europe. .