Port of Rijeka FTZ: an Overview

PORT OF RIJEKA

•Generallay about Port of Rijeka from customs prospective•Organization and working processes in the Port of Rijeka•Generally about Free zone•Advantages and disadvantages in a free zone in Rijeka port•Conclusions

Natalia Fraćin , Regional Customs Office Rijeka

Generally about port of Rijeka

- Due to geographical position, port of Rijeka enables the quickest way between mid european countries and far East and vice versa.

- Port of Rijeka has a special significance for non maritime countries in the region (Hungary, Austria,Slovakia,Czech R.,Serbia and BiH).

- Northadriatic traffic direction has a huge advantage for ships arriving through Suez canal:- More than 2000 nautical miles closer then north EU ports- Shortened duration of navigation is 5-7 days in relation to north EU

ports. - Decreases transport costs.

- Port of Rijeka accepts diferent kind of cargo on its diferent locations.

Port of Rijeka – geostrategical position

- Port of Rijeka has 5 terminals on 5 different locations

- (4 locations are situated in a free zone)

PORT TERMINALS

Rijeka-Žabica AGCT Bakar Bršica Škrljevo

Gen.cargo

Wheat,soybean

reefer wood containerterminal

Steel, coal

cattlewood

backgroundterminal

- Port of Rijeka company

- specialized for handling general cargo

- operates on the basis of the concession contract signed up till

2042.

- Port of Rijeka company is the largest dry cargo operater in Croatia (more than 4 milion of tons realoded cargo on a yearly basis)

- 4 terminals (Žabica, Bakar , Škrljevo, Bršica)

AGCT company

- main container terminal in Rijeka

- concession contract till 2041.

- ongoing efforts to raise the level of service

Free zone concessionaires

FRIGO STORAGE

ANNUAL CAPACITY: 100.000 tBASIC ACTIVITY:Manipulation with tropical fruit, frozen meat and perishable goods

SiloANNUAL CAPACITY 1000,000 tBASIC ACTIVITY:reloading and storage of oilseeds

TERMINAL BAKAR bulk cargo

ANNUAL CAPACITY:4 .000.000 tBASIC ACTIVITY: Manipulation with coalCan accept Panamax and Capesize category of ships

TERMINAL Škrljevo

Warehouses:28.160 m2Open space: 130.000 m2Multimodal terminal with direct access to thehighway and rail

AGCT container terminal

Annual capacity: 600.000 TEU Lenght of mooring 1 - 300 m; Sea depth - 11,7 m; Lenght of mooring 2 - 326 m; Sea depth - 14,5 m.

Ownership structure of AGCT-a:• 51% - ICTS Inc.,international cont terminal services (global operater of

cont terminals from Filipines)• 49% - Port of Rijeka company

Installed equipment: – 2 Panamax cont crans; – 2 post Panamax cont crans; – 6 RTG (storage transhipment bridges); – 2 RMG (rail transhipment bridges) BIP (border inspection point)-phytosanitary inspection station

Adriatic Gate Container Terminal

Container traffic -2011.....130 052 TEU

-2012....126 680TEU

-2013.....131 310 TEU

- 2014 ....149 000 TEU

-2015.....161.883 TEU

-2016.......177.134 TEU

AGCT container terminal

-IT system NAVIS for monitoring unloaded cont in which customs officers have an access-the biggest ship on cont terminal was 367 m long with capacity of 10 150 TEU

Shipping companies Representatives of the shipping lines

CMA CGM CMA CGM CROATIA

COSCO DRAGON MARITIME ADRIA d.o.o.

CSCL Intereuropa d.o.o., Agency officeRijeka

EVERGREEN TRADEWAYS d.o.o., Koper

HAPAG LOYD ADRIATIKAGENT

MAERSK LINE Maersk Croatia d.o.o.

MSC MSC CROATIA d.o.o.

NYK LINE N-LOGISTIKA Ltd.

SAFEMARINE Safmarine

SAEGO LINE East Adriatic Sales Seago Line

UASC Interliner Agencies

YANG MING GATE EXPRESS d.o.o.

CONTAINER SHIPPING LINES IN THE

PORT OF RIJEKA

CARGO

- dispatching the cargo- mostly by road (highway Rijeka-Zagreb enabled better road connection)

- dispatching by rail – insufficient investments in railway infrastructure hampers the development of the port

- CENTRAL OFFICE (DIRECTORATE)

- 4 REGIONAL CUSTOMS OFFICES (ZAGREB,RIJEKA,OSIJEK ,SPLIT)

- 18 CUSTOMS OFFICES

- 10 BORDER CUSTOMS OFFICES

ORGANIZATION OF CROATIANCUSTOMS ADMINISTRATION

LEGAL BASIS

-Law on free zone-Instructions 17/2016 presents implementation of customs control measures under the goods incoming and outgoing from free zone and specific procedures for goods outgoing via sea ports-Law on implementation of EU customs legislation-Regulation 952/2013 of Eu parliament and Eu Council- Regulation 2446/2015 and 2447/2015

FREE ZONE

- It is a part of teritory of the Republic of Croatia which is specially fenced and where economic activities are carried out under special condition and customs surveillance

- Free zones can be established in the area of a seaport , riverport,airport and at any other area where there are conditions for it

- On the basis of concession contract, concession forestablishing the free zone is provided by government

- Activities within the free zone: production of goods,storage of- goods,wholesale trade, refining of goods- The applicant for the establishment of a FZ must state the economic and- financal justification of the request- Carrying in and out of the goods and storage of the goods in a FZ are carried out with

the customs provisions

FREE ZONE

ADVANTAGES

- goods can be stored for an unlimited time (duration of stay can be controlled by customs through the system)

- Concessionaries do not need to have bank guarantee for the possible customs debt like for customs warehouses

- Easy access to concessionaires IT system by customs (very

- good control mechanism)

- Easier way for submitting customs documents (only

- through the system)

PORT OF RIJEKA FREE ZONE

DISADVANTAGES- In a case of Rijeka port FZ we have 4 different - locations- we have dispersity of the zone and when there is

a need of relocation cont in between the locations – there is an extra paper work to be done- T1 –transit doc.

- There are no tax exemptions (that is why there is no- production of goods inside FTZ)- previous legislation on FZ

had tax exmption (concessionaires were not obliged to pay tax for their equipment and production was exempted from certain taxes)

- -

PORT OF RIJEKA FREE ZONE

- incoming goods must be submitted in safety entry declaration through IT system only ina case when port of Rijeka is the first port of entry in EU

- cargo agents send to customs cargo manifests 24 hours before the ships arrival

- upon ships arrival shipping agents must submit incoming manifest

-cargo agents submit storage documents only through the system

INCOMING GOODS IN THE FZIN MARITIME TRAFFIC

-outgoing goods must be submitted in safety exit declaration in IT system

-prior to loading cont on the ship, at least one hour in advance, shipping agent submit outgoing manifest with all necessary atachments (cargo manifests, export SAD, T1..)

-customs officers check in compliance of the data with submitted documents

OUTGOING GOODS FROM FZ INMARITIME TRAFFIC

- TRANSPARENCY in economic activities in FZ of Rijeka port is provided by keeping records of the goods by concessionaire acording Union customs code and Law on FZ

Records must be available to the customs autorithies for the purpose of identifying the goods

In the same time customs runs simplified documentation of the goods in the IT system and use it as a tool to control concessionaires records

CONCLUSIONS

Port of Rijeka is a transit port

Most of the incoming shipments in maritime traffic are transported to the inland customs offices, other MS or to the third countries (Serbia an BiH) by trucks (70 % of shipments), 20% is transported by rail, 10% is cleared in Rijeka

Most of outgoing shipments in maritime traffic are EU goods cleared for export

Transhipment is very rare

CONCLUSIONS

-CUSTOMS MONITOR the follow up of shipments, regardless in which procedure shipment will be put in FZ (transit or clearance procedure)

-that is how we prevent the MISUSE of FZ to commit illicit trade

-customs enforce REGULATORY FRAMEWORKS with correct apply prescribed procedures ,provisions and laws

-perform physical controls

-try to avoid enforcment gaps

CONCLUSIONS

- CUSTOMS enforce legislation and give recommendation for changes if we notice iregularityor enforcment gap (customsis not a policymaker)

-FTZ may be a complicating factor in risk profiling if we have a doubt about shipment and cantf follow up the shipment , if we dont know the POL (in some FZ goods are reloaded so we cant trace the shipment)

-sometimes we dont know if the port from which goods come is established as FZ

CONCLUSIONS

SIGNIFICANT SEIZURES

Containers with counterfeit goods

Over 250.000 pcs of counterfeit goods seized

SIGNIFICANT SEIZURES

10,200,000 pcs of BRASS Cigarettes

Declared goods: 383 packs of roll compressed and flatpacked mattresses (formerly known as cover load)

Consignee - Newly established small Hungarian company

Consignee address - the law firm in Budapest

First shipment for the consignee

SIGNIFICANT SEIZURES

10,200,000 pcs of BRASS Cigarettes

X-ray examination indicated cigarettes

The cover load was not found

Thank you for your attention

Natalia Fraćin