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TRANSCRIPT
UNIVERSITY OF ST ,,CLIMENT OHRIDSKI,, – BITOLA
FACULTY OF TOURISM AND HOSPITALITY - OHRID
CUSTOMS PROTECTION OF AGRICULTURAL FOOD SECTOR IN THE
REPUBLIC OF MACEDONIA
(AUTO SUMMARY OF DOCTORAL DISSERTATION)
Candidate: M. Ljube Nikolovski Mentor: Prof. Dr. Gordana Reckoska
1.Of the customs protection
Customs protection incorporates, on its basis, nominal customs protection, which can be simple and pondered with nominal customs protection, as well as real and effective customs protection.
When measuring the effects of tariff rates from the customs tariff, it is necessary to say that it is difficult to measure the effect of customs rates in the capacity of barriers between countries. It is clear that the way the demand for imports corresponds to changes in customs rates will depend on various factors. This includes the reaction of producers and consumers to the change in prices, the share of imports in domestic production and consumption, and the interchangeability of imports for domestic products.
The reaction at the level of the customs rate varies from country to country, and from goods to goods. Thus, the amount of the tariff rate from the customs tariff does not necessarily determine its restrictive effect. Usually, such comparisons relate only to products for which customs duty rates are the main protector. This is usually the case for non-productive sectors in developed countries (other strategies, such as import quotas, are a common means of protecting agricultural products). Although the tariff rate for imported raw materials will protect domestic producers of such goods, such a rate will also increase the cost of domestic producers using those raw materials. These conditions require a distinction between nominal and effective protection rates.
With the introduction of customs, efforts are made to equalize the difference in productivity, and hence the prices of domestic and imported goods. In this way, the import goods become more expensive for the introduced customs and at the same time non-competitive on the domestic market, which on the other hand enables the sale of domestic goods, and thus the development and expansion of domestic production.
The protective effects of customs are perceived through their impact on the increase in domestic production. Domestic production will increase because import duties will affect the increase in the price of the imported product, which reduces the possibilities for placement of foreign products, and on the other hand domestic producers are allowed to sell products on the domestic market. By balancing the prices of the imported and domestic product on the domestic market with the introduced customs, the domestic producer protects and encourages the sale of the domestic product and maintenance of the level of production.
Customs must not be determined at a high level, since they will prevent the import of foreign goods, that is, will prevent the creation of relations of competition on the domestic market.
Import duties do not always affect the increase in domestic production. They may have adverse effects on domestic production, especially in cases of customs protection of import inputs in import-dependent branches, as well as in cases of protection of final products.
In cases where customs protection is very high in the long term there are negative effects that are manifested by reducing productivity and other quality factors such as economy and cost-effectiveness.
From the above, the question is raised about determining the optimal level of customs protection, which is obtained through calculating and economic interpretation of the rates of nominal and real customs protection through an appropriate methodology.
Bearing in mind the above-mentioned knowledge about the importance of the rates of simple, weighted nominal and real customs protection, the starting point of the research is the following: "Customs protection of the agricultural food sector in the Republic of Macedonia"
The intention of the research is to empirically calculate and analyze the rates of simple and weighted nominal customs protection, as well as the rates of real customs protection, in order to determine the impact of customs protection in the agricultural food sector on the import of agricultural products, as well as on the structure of the domestic agricultural production.
The established issues and its definition of the previously set topic, as well as the scientific contribution expected from the research of this doctoral dissertation determines the aims of this research, which are:
1. The impact of the customs protection of the agricultural food sector on the import of agricultural products will be determined.
2. The change in the structure of the import of certain agricultural food products and their substitution with domestic products will be approximated.
Analogous to the actuality of the topic is the possibility of providing a scientific contribution from the realization of this research:
- Precise the application of customs protection which should be rational, ie be properly dosed to enable the development of domestic agricultural production.
- Elaboration of the process of customs protection of the agro-food sector.
- The doctoral dissertation will have a significant contribution in the dynamic analysis of the import of the agro-food sector.
- A fundamental contribution to this doctoral dissertation would be its practical application in the overall customs policy of the Republic of Macedonia in the field of agriculture.
On the basis of the set goals of the topic of this doctoral dissertation based on the mentioned arguments, the paper will answer a number of previously asked questions:
1. What is the level of nominal customs protection of the agricultural food sector in the Republic of Macedonia?
2. What is the level of real customs protection of the agricultural food sector?
3. How does the impact of customs protection affect the import of agricultural products in the Republic of Macedonia?
4. How does the customs protection of the agricultural food sector affect the volume and structure of the domestic agricultural production?
5. Do the customs rates for raw materials and final products from the agricultural food sector have a positive or negative effect on the domestic agricultural production?
6. What food safety standards should meet the products from the agri-food sector?
The material that is processed in the doctoral dissertation under the title customs protection of the agricultural food sector is a conceptual whole consisting of introduction, theoretical part, empirical research and conclusion that are covered in two parts and eight chapters:
The first chapter focuses on the concept of customs protection. Customs protection explains the basic concepts of nominal, real and effective customs protection, their importance in the economy, the calculation procedure and the factors that need to be put in the relationship before quantifying the data. The nominal customs protection, as the starting point for calculating net effective customs protection, is the import duty on finished products which expresses the customs rate to the existing customs tariff on the value of the import of goods.
This chapter explains the rates of nominal, realistic and effective customs protection. The level of the real customs protection rates is determined on the basis of the value of the collected customs duties and the value of the total import realized. The rate of prostate nominal customs protection is calculated when the sum of the customs rates is divided by the number of tariff paragraphs. The weighted nominal customs protection represents the import duty on finished products which expresses the customs rate to the existing customs tariff on the value of the import of goods. Effective customs protection starts from the concept of added value, that is, from the protection of the part of the value of the goods added to a particular stage of production in a particular sector. Therefore, the rates of effective customs
protection are still referred to as value added rates. In its general formulation, the nominal duty rate is the duty rate on the value of the imported final product (such as the ad valorem tariff). Nominal customs protection is important from a consumer perspective, because the nominal duty rate affects the price of the final goods that consumers eventually consume.
Since each type of goods does not have the same meaning for the economy of a national economy, the legislator differentiates the customs rate according to needs, thereby indirectly determining the level of protection of a particular product.
The average nominal duty rate is obtained in such a way that the amount of customs duty rates is divided by the number assigned. The weighted nominal duty rate is obtained in such a way that the amount of the customs rates per item does not multiply with the value of the import for the given product, then it is divided by the amount of the import value per item.
The weighted nominal duty rate is calculated when each individual nominal duty rate is multiplied by the individual weight of the weight for each type of goods in the group, and then the sum of the obtained products is divided by the total value of the weight in the group.
For purposes of the analysis of customs protection, it is necessary to determine in addition to the nominal rates and the rates of real customs protection. In practice, the rates of real customs protection are lower than the corresponding average simple and weighted nominal duty rates, which take as the weight the total value of the imports of products.
The level of the real customs protection rates is determined on the basis of the value of the collected customs duties and the realized import. When the result of a real customs protection of a product comes to a conclusion, the level of protection of a sector or product is inevitable. The obtained data shows us at which customs rate the total import realized is actually cleared.
The effective customs rate is the percentage increase in the value added per unit of product in a single sector in terms of customs in relation to a customs-free situation but at the same exchange rate.
In the economy, the effective protection rate is a measure of the overall effect of the entire customs structure on the value added per unit of production in each industry, when raw materials are processed for further processing and final consumption goods. These statistics are used by economists to measure the actual amount of protection afforded to a particular industry through import duties, tariffs, or other trade restrictions.
The effective protection rate is calculated on the value of the new added products that are subject to further processing that takes place in the country. According to the concept of effective protection, one sector is more secure if its nominal rate of duty is higher, as well as its effective customs rate.
Effective customs protection starts from the value aded concept, that is, from the protection of part of the value of the goods added to a particular stage of production in a particular sector. Therefore, the rates of effective protection are still called the rates of protection of valueadded.
The second chapter elaborates the basic concepts and benefits of trade liberalization of goods and services. Each market-oriented country involved in economic relations is pursuing a policy of protecting the domestic economy by determining the customs of goods and services. The concept of foreign trade liberalization is precisely the reduction and abolition of customs and non-tariff restrictions on trade. The Common Agricultural Policy aims to provide competitive agriculture and food production, and certainly has its own impact on the liberalization of agricultural products. External triangular liberalization in the direction and purpose of cooperation and cooperation, the so-called. wide liberalization is implemented in cases where the country reduces or abolishes customs and other restrictions in exchange with all countries. Commercial liberalization can also work on a selective basis, but in this case, equity and equity with other countries are being violated. This means the reduction or abolition of customs and other restrictions only in exchange with one or with certain inter partes countries (only between those countries).
Regionalism as a process of forming regional economic integration is an example of foreign trade liberalization conducted on a discriminatory basis, as integration states abolish customs and other instruments of protection in their mutual exchange, on the one hand, retaining national or introducing common instruments and measures of foreign trade protection in the exchange with countries outside of integration, on the other. Within the integration, the more expensive production of the domestic producer is replaced by imports from the more efficient producer from the member state of integration, which increases the benefits from the formed integration (the effect of creation of trade-trade creation efect). The retention of protection in the trade with third countries affects reverse, ie instead of being imported from the more efficient producer from a non-member country, more expensive products from the less efficient producer from the country of integration are imported (turnover effect of trade diversion efect).
The aim of the Common Agricultural Policy of the European Union is to provide competitive agriculture and produce healthy foods. A large part of the European Union budget is spent on agricultural policy. Agriculture, forestry and rural development are of great importance for land use and for managing natural resources in European rural areas. Strengthening European Development and Rural Policy is a priority for the European Union. The Common Agricultural Policy was proposed by the European Commission in the 1960s and is aimed at providing a coherent, appropriate offer, increasing productivity and ensuring that consumers and producers receive an equal share of the market.
Over time, the priorities in agriculture have changed, so the problem of environmental protection has become a priority. In 2003, the common agricultural policy underwent significant reform changes, aimed at transforming the production-oriented concept with direct subsidies into a market-oriented concept of the common agricultural policy.
The market-oriented concept is based on separating the financial support of farmers from production, and funding also depends on food safety, seed quality and environmental protection.
In 2007, the problem was aimed at prices, expressed as a rise in inflation, which opened up the food issue. A committee of agriculture, a body within the European Commission in 2007, carried out a quantitative method of research and by means of a survey, the public opinion on the circumstance "importance of agriculture and rural areas" was examined. To this end, the answers to all questions are systematically analyzed, with additional classification of the variables.
The research examines the importance that has been passed on by the citizens of the European Union for agriculture and rural areas. Rural areas are particularly significant for lands with 91% land in 27 countries that make up the European Union. These areas together account for more than half (56%) of the population in the European Union and provide 55% of employment in the European Union. This statistics shows the importance of rural areas and agriculture in the economy, demography and geography of the European Union. This meaning is clearly reflected in public opinion, as evidence of this research.
The third chapter is dedicated to the place and role of the agricultural food sector in the tariff tariff nomenclature. The customs nomenclature is defined as a list of products that are classified according to certain principles and systems. In accordance with the technical and technological process and the development of the world trade, the harmonized system is regularly adapted and upgraded in order to meet the needs of most countries in the world, enabling its wide application. Products from the agro-food sector in the customs tariff are allocated from 01-24 chapter, sections I-IV. In this chapter, agricultural food products and their customs rate regulated in accordance with the Law on Customs Tariff of the Republic of Macedonia, Fig. Journal of the Republic of Macedonia. The customs nomenclature is defined as a list of products that are classified according to certain principles and systems. In accordance with the technical and technological process and the development of world trade, the Harmonized System is regularly adapted and upgraded in order to meet the needs of most countries in the world, enabling it to be widely used.
The products from the agricultural food sector in the Customs Tariff are allocated from 01 to 24 chapter, respectively from I-IV section
Agricultural products in the customs tariff set in the first four departments. In the first Section, Live Animals and Products of Animal Origin cover 4 (four) chapters. The products from the agricultural food sector in the Customs Tariff are allocated from 01 to 24 chapter, respectively from I-IV section
With the customs tariff of 1996, a significant reduction in customs protection was made for most product groups. All products that were not produced in the country and which were certain that they would not be produced in due course, were placed under the regime "free", so that for them, no customs duties were paid for them. However, customs rates for raw materials and equipment that were produced in the country or which were not in
sufficient quantities were still retained. Such a solution can not be justified by the expectation that this type of production should have been alive in the country, because at that time the competent institutions and bodies did not prepare or implement any investment projects that would justify such expectations.
Apart from the fiscal function, which was performed successfully with the introduction and application of such rates, no other positive economic or development effect was achieved. On the contrary, such solutions were detrimental, because they additionally complicated and increased the import of modern equipment that could not be manufactured in the country, which only exacerbated the low technical and technological level of production. Import duties, however, of raw materials that were not produced or lacked in sufficient quantities in the country only additionally exacerbated the lack of competitiveness of Macedonian exports, as they produced additional price increases for the final products. As a rule, dependent import and technologically backward economies should not introduce such rates.
The customs rates provided for consumer goods were considerably higher than those for raw materials and equipment produced in the country and ranged from 15 to 35%. Especially high customs protection was foreseen for food and agricultural products, where customs rates could range up to 60%. For the import of agricultural and food products in accordance with the Law on special duties for import of agricultural and food products, the possibility was foreseen that, in addition to collecting the anticipated rate of duty, additional levies should be collected. The license was charged if the Customs Tariff included the mark (+ Q) in the Customs Tariff for the name of the customs rate for the specific type of product. The levies were foreseen to be levied on the import of milk and dairy products as an additional measure to cancel the effect of export and other subsidies that foreign partners commonly used for this type of products. The high customs quota in the last group of products was introduced in response to the overcrowding of European Union markets, this type of products and the pronounced protectionism of the Common Agricultural Policy of the Union.
The 1996 customs tariff envisaged the possibility of prescribing customs contingents. Customs contingents were defined as relief agreed on a bilateral principle of goods subject to the customs regime in foreign trade. If such goods were not available in sufficient quantities of domestic production, in order to facilitate their import to a certain extent, these goods could have been imported without the payment of a regular customs duty or with a reduced rate of duty. As soon as the customs contingent was exhausted, the further import was effected by the collection of the normal customs duty.
It has been envisaged that the rates from the Customs Tariff Act from 1996 will apply to goods originating from countries with which the Republic of Macedonia had concluded trade agreements with a key for the highest preference or, for trading partners who have treated our goods when importing them on this principle. According to this clause, the Law provided for goods imported from countries with which the Republic of Macedonia did not conclude an agreement with a maximum incentive clause or who did not apply such an
advance for Macedonian goods, the import to customs with a customs rate increased by 70% of the rate envisaged in the Customs Tariff. Such a rate, however, has never been applied
The fourth chapter of the doctoral dissertation refers to the foreign trade with agricultural products of the Republic of Macedonia. This chapter provides statistical indicators on the value of the import of agricultural food products in the Republic of Macedonia for the period 2014-2017. Firstly, values obtained by collecting customs duties from importing agricultural products for the specified period are given. In addition, the fluctuations of each product individually for the specified period are detailed in detail: fruits, meal of citrus or melons and watermelons (08), vegetables, roots and eggs (07), coffee, tea, maté and spices (09), various food products, milk and milk products, poultry eggs, natural honey, edible products of animal origin, not mentioned or covered elsewhere (04), sugar and sugar products (12) fish, crustaceans and molluscs or other aquatic invertebrates (16), meat and other slaughter products leading edible (02), tobacco and manufactured tobacco substitutes (24). The research examines the importance that has been passed on by the citizens of the European Union for agriculture and rural areas. Rural areas are particularly significant for lands with 91% land in 27 countries that make up the European Union. These areas together account for more than half (56%) of the population in the European Union and provide 55% of employment in the European Union. This statistics shows the importance of rural areas and agriculture in the economy, demography and geography of the European Union. This meaning is clearly reflected in public opinion, as evidence of this research.
The performance of the economy is also affected by the trade in agri-food products. In the period 2013-2017, the import of agricultural food products accounts for 13 percent of the country's total imports.
Liberalization, especially expressed in the agricultural food sector, resulted in higher imports from exports.
Continuing balance sheet for the period of 2005. until 2012. characterizes Macedonia as an import-oriented country in terms of trade in agricultural foodstuffs. The overall trade in the agricultural sector is growing, but imports are rising faster than exports, resulting in a larger trade deficit for the entire period. The trade deficit reached its highest value in 2012 (about 2013 million euros).
According to the official data of the State Statistical Office of the Republic of Macedonia, the import of agricultural products in 2017 is significantly increased compared to 2016. In 2016, on the basis of customs revenue for imported agricultural products, the Republic of Macedonia realized income of Denar 1,700.0 million, while in 2017 the realized income increased to Denar 1,903.5 million. In 2015, the income on the basis of customs duties for forgery products was MKD 1,655.3 million. In 2013, the income on the basis of customs duties amounted to MKD 1,897.1 million.
Taking into account the half-yearly five years, it can be concluded that the import of agricultural products of the Republic of Macedonia is in constant growth and of course there are implications in both increasing the competitiveness of the producers and the quality of
food and thus in the economy as a whole. The increase in the import of agricultural food products is due primarily to the liberalization of the foreign trade of the Republic of Macedonia with third countries, especially with Germany, Great Britain, Greece, Serbia and Bulgaria, with which the Republic of Macedonia mostly traded. It is worth noting that 2014 income from import of agricultural products amounted to MKD 1,745.4 million, something that is more sharply compared to 2015.
According to the State Statistical Office data, the total value of imported food and live animals in the period January-December 2017 is 37,251,922 million denars. The total value of beverages and tobacco in 2017 is 4, 607,814 million denars.
The fifth chapter of the doctoral dissertation refers to food safety. An integral approach to the quality of products designated as ISO standards has been introduced in the work of agricultural enterprises in the Republic of Macedonia.
The HACCP system is mandatory and has an obligation to implement all food producers, while ISO standards, BRC and IFC standards are optional and dependent on the will and food operators. The fourth part also elaborates the quality of the primary raw materials that express the relation of the cost - quality of the primary raw materials, among the products, the criteria for stabilization of the finished products, the internal control, the labels of the goods and the packaging. This section also elaborates in detail the ISO standards, the IFS standards, the standards for good agricultural practice, the BIO standards and the surveillance chain control system. In order to ensure food safety, various food safety systems have been introduced, such as the HACCP system, ISO standards, (ISO-9001, ISO-22000), BRC, IFS and other well-known and recognized standards in various countries of the world. In the Republic of Macedonia, the legal obligation is to implement the HACCP system, while other standards can be implemented according to the wishes and possibilities of the food operators.
The HACCP system has been introduced and focuses on food safety in the long food chain. from "field to table". It relies on a system of steps and procedures, rather than individual efforts or mistakes. This step-by-step approach to the system helps to identify and analyze all segments of the food chain, which is longer and more complex today and is a preventive maintenance of the security system, rather than its repair for an eventual food shortage.
When it comes to the microbiological hazard of pathogenic microorganisms in food, the appearance, smell and taste are not a sufficient indicator of the correctness of it and from a safety aspect.
It is therefore necessary to have control over the whole process of raw materials, the environment, human factor, methods and equipment, and as far as possible from the beginning of the field through the barn to the industrial or manual traditional processing of raw materials, and further through packaging and placement of the finished product, transport and distribution to the table of the consumer.
The measures to be taken by this economic activity consist of the following seven main postings:
1. Develop a rules of procedure for product safety and an appropriate working procedure;
2. Apply the positive and valid regulations listed in a separate procedure;
3. Appointment of responsible persons who will be responsible for monitoring the safety and quality of food, that is, which will monitor the potential risks that are dangerous to the health of consumers;
4. Conducting special care for the products, for the technological process from the receipt of raw materials to the placement of finished products and their distribution;
5. Regular inspections of the production facilities and premises in which the semi-finished and finished products and the hygiene of the means of transport and the drivers for which they are distributed are produced, packed and placed;
6. Implement training programs for personal hygiene of employees and hygiene of products and facilities;
7. The firm should pay special attention to the employees during the training in the direction of their permanent understanding of the meaning of the buyer, respect for his legal rights, buying safe food, meeting his requirements and satisfying his expressed and unspecified expectations ;
The HACCP system aims to identify specific hazards and to develop preventive and remedial measures to deal with them in order to eliminate or reduce risk at a tolerable level during the manufacturing process. Therefore, the HACCP plan provides:
- promotion of the existing condition and safety of food products;
- eliminating or reducing the opportunities for foodborne diseases;
- identification and documentation of the necessary preventive and corrective actions;
- a thorough rehearsal of the procedures and setting up of controls where necessary;
The sixth chapter refers to the structure of the agricultural food sector in the Republic of Macedonia. By using the data from the State Statistical Office of the Republic of Macedonia, the percentage rate of citizens dealing with agriculture from the total number of employees is determined, the percentage participation in the agro-food products of the total "cake" of products that are in circulation of import - export, the number of small, as opposed to the number of large agricultural holdings and harvested areas are presented in a graph, in order to see the presence of each culture separately. In 2009, the Republic of Macedonia faced the negative consequences of the global recession. Despite the set of fiscal and monetary measures for maintaining macroeconomic stability, the impact of the economic crisis resulted in a decline in GDP in 2009 (- 0.9%) and in 2012 (- 0.4%). In 2013, the macroeconomic
indicators show accelerated recovery of the economy and increase of industrial production and investment investments in fixed assets.
GDP growth rates in 2013 are positive and are estimated at 2.9% by the end of 2013. Only agriculture (including forestry and fisheries) is estimated to account for 8.9% of GDP in 2013. As in most economies, small and medium-sized enterprises are predominant in the structure of economic actors. According to the State Statistical Office data, the number of active business entities in the Republic of Macedonia in 2013 is 71,290 out of which 96% are small and medium enterprises. Small and medium-sized enterprises are also important in terms of job creation, as on average over 80% of the total employment in the country is in small and medium-sized enterprises. According to the number of employees, 92% of employed persons in 2013 were employed in small and medium enterprises, of which about 85% are with the number of employees between 1-9. The average number of enterprises per thousand inhabitants in rural municipalities (village-based municipalities) is 18 compared to 36 in urban municipalities (city-based). What can be said with certainty about the production of agricultural products in Macedonia is that there is a lot of space for upgrading and improvement.
Agriculture is one of the most important sectors for the Macedonian economy with significant contribution to the country's economy and social stability. The importance of agriculture for the Macedonian economy is confirmed by the fact that in the agricultural sector, 19 percent of the total active population.
The processed agricultural products accounted for 30.9% of the total import of agricultural food products and 14.1% of the total export of agricultural and food products. According to the available data from the State Statistical Office of the Republic of Macedonia, the most important export products are lamb, wafers, biscuits and processed vegetables. Out of a total of 7,918.00 active registered companies for processing in 2013, 445 were registered as operators or processing of agricultural products and food of plant and animal origin and placing food on the market. The largest percentage of the total number of food processing belongs to the category of small and medium enterprises.
Part II Empirical research contains two parts. One part of the research concerns the level of customs protection of the agro-food sector, and one part of the research refers to the realized yields for agricultural crops
The seventh chapter contains its own research and calculations on the level of customs protection in the agro-food sector in the Republic of Macedonia
The given calculations show that the rates of simple and weighted nominal customs protection are higher than the rates of real customs protection in the agricultural food sector. From the obtained data for simple and weighted nominal customs rate it can be seen that the weighted nominal rate is lower than the simple nominal customs rate, which indicates that in the period 2014 - 2017 in the Republic of Macedonia the value of the import of goods from the tariff rates of the customs tariff with lower customs rates is higher than the value of the import of goods classified in tariff items for which a higher customs rate is prescribed. The
period from 2014 to 2017 was analyzed. On the basis of these data, the nominal weighted customs rate, nominal simple customs rate and real customs rate, per head and compartments for all products from 01-24, are calculated, as well as for all of them in the frames of one year. Based on this, with the correct application of the formula for calculation, a result is systematized in Table 5 and based on this, it is confirmed which sector is more secure and the other conclusions deriving from it.
Table no. 1 - Rates of simple nominal customs protection, weighted nominal customs protection and real customs protection
2014 2015 2016 2017
Simple
nomina
l c.p.
Pond
ered
nomi
nal
c.p.
Rea
l c.p
Simpl
e
nomin
al c.p.
Pondere
d
nominal
c.p.
Rea
l c.p
Simple
nominal
c.p.
Ponde
red
nomin
al c.p.
Rea
l
c.p
Simple
nomina
l c.p.
Ponder
ed
nomina
l c.p.
Real c.p
Section 1 18.37 5.41 6.2
8
18.37 4,82 6.3
8
18.37 12.34 6.3
1
18.37 4.79 6.10
Chapter 1 10.85 17.33 0.4
9
10.85 27.25 0.2
0
10.85 12.43 0.1
0
10.85 35.82 0.96
Chapter 2 20.04 5.34 8.1
6
20.04 4,90 8.0
1
20.04 4.21 7.4
0
20.04 4.80 7.52
Chapter 3 20.88 34.52 0.3
1
20.88 103,65 0.4
3
20.88 72.43 0.2
2
20.88 70.73 0.20
Chapter 4 37.75 4.43 3.9
2
37.75 3,49 4.5
5
37.75 3.41 6.1
9
37.75 3.53 5.00
Chapter 5 35.77 2.73 0.0
0
35.77 0,00 0.0
0
35.77 0.00 0.0
0
35.77 0.00 0.00
Section 2 19.53 7.49 3.1
8
19.53 4,76 3.0
4
19.53 10.64 3.2
0
19.53 4.93 3.36
Chapter 6 0.22 37.01 1.3
1
0.22 18,01 1.4
3
0.22 10.64 1.3
1
0.22 14.69 1.16
Chapter 7 52.60 3.87 13.
40
52.60 2,59 12.
33
52.60 45.56 12.
60
52.60 2.74 10.99
Chapter 8 10,00 1.94 4.3
5
10,00 8,60 3.9
5
10,00 6.31 3.9
0
10,00 8.46 4.30
Chapter 9 0.00 4.76 4.1
2
0.00 10.89 4.3
8
0.00 11.09 4.1
9
0.00 10.64 3.99
Chapter 10 18.92 9.3 0.4
3
18.92 2.20 0.1
5
18.92 5.85 0.1
7
18.92 2.58 0.16
Chapter 11 29.83 3.70 0.1
4
29.83 3.10 0.1
3
29.83 41.70 0.1
7
29.83 2.98 0.21
Chapter 12 0.00 16.63 1.4
8
0.00 49.99 1.6
7
0.00 59.33 1.7
6
0.00 48.46 1.70
Chapter 13 2.00 8.90 0.0
0
2.00 0.00 0.0
0
2.00 0.00 0.0
0
2.00 0,00 0.00
Chapter 14 0.00 23.63 0.0
0
0.00 0.00 0.0
0
0.00 0.00 0.0
0
0.00 0.00 0.00
Section 3 24.70 9.60 0.5
3
24.70 12.34 0.2
8
24.70 22.99 0.3
4
24.70 24.94 0.49
Chapter 15 24.70 9.60 0.5
3
24.70 12.34 0.2
8
24.70 22.99 0.3
4
24.70 24.94 0.49
Section 4 32.89 5.44 5.1
6
32.89 4.62 4.4
0
32.89 4.66 4.8
4
32.89 4.69 4.81
Chapter16 29.14 14.23 1.7
2
29.14 6.55 0.1
4
29.14 6.34 3.8
1
29.14 6.04 3.23
Chapter17 14.44 66.28 2.7
4
14.44 15.12 3.2
5
14.44 9.73 4.7
0
14.44 19.44 4.19
Chapter18 27.64 6.02 5.4
7
27.64 4.18 34.
16
27.64 4.26 5.1
6
27.64 4.16 5.79
Chapter19 31.33 3.34 8.1
2
31.33 3.48 7.4
0
31.33 3.41 8.1
5
31.33 3.99 8.57
Chapter20 26.93 2.54 6.3
3
26.93 3.55 6.3
8
26.93 3.37 6.8
3
26.93 2.98 7.76
Chapter21 39.17 3.64 3.2
7
39.17 4.48 2.5
7
39.17 4.54 2.9
8
39.17 5.10 2.24
Chapter22 45.00 4.99 2.9
1
45.00 9.84 2.7
6
45.00 4.64 3.0
3
45.00 4.41 3.06
Chapter23 0.00 32.01 0.1
1
0.00 46.74 0.1
2
0.00 27.02 0.1
0
0.00 30.06 0.08
Chapter 24 20.00 6.17 18.
77
20.00 2.39 16,
78
20.00 3.20 12.
74
20.00 2.45 10.97
Agricultura
l products
26.97 6.24 4.6
5
26.97 4.94 4.1
9
26.97 5.33 4.4
2
26.97 5.04 4.47
(Source: Own calculations of rates of simple, weighted nominal and real customs protection, for the period 2014-2017)
The analysis of the data takes into account the maximum customs rates. Since the
customs protection of the agricultural food sector is a complex issue, this paper is processed
comprehensively from a theoretical and empirical point of view.
The given calculations show that the rates of simple nominal customs protection are
higher than the rates of real customs protection in the agro-food sector. The highest level of
real customs protection is in 2014 compared to 2015, 2016 and 2017, which means that the
products from the agricultural food sector were actually the most protected in 2014, then in
2017, then in 2016 and finally the lowest rate of real customs protection in the agro-food
sector was in 2015. The rates of real customs protection for the agricultural food sector are
4.65% in 2014, 4.19% in 2015, 4.42% in 2016 and 4.47% in 2017.
According to the rates of real customs protection, the agricultural food sector in 2014
was more secure compared to 2015, and in 2017 it was more secure compared to 2016.
The highest level of simple nominal customs protection in the period 2014-2017 is in
the fourth department of the agricultural food sector, and it is 32.89%, then in the third
department, which is 24.70%, followed by the second department, where the simple nominal
customs rate is 19.53% and finally the lowest nominal customs rate in the agricultural food
sector is in the first section and it is 18.37%.
The simple nominal duty rate for the period 2014 to 2017 in the agricultural food
sector is 26.97%.
The weighted nominal customs rate in the agricultural food sector was the highest in
2014 and it was 6.24%, followed by 2016 when the weighted nominal rate of customs duty
was 5.33%, in 2017, the weighted nominal duty rate was 5.04%, while in 2015 the adjusted
nominal customs rate was 4,94%.
Compared to departments, the highest weighted nominal duty rate is in the third
section, respectively in Chapter 15, when the weighted nominal duty rate was 24.94%, then in
the first section of the customs tariff, where the weighted nominal customs rate was the
highest in 2016 and it was 12 , 34%, followed by the second division when the weighted
nominal customs rate in 2016 was 10.64%, and at the end the lowest weighted nominal
customs duty rate was in the fourth department, and in 2017 it was 4.69%.
From the obtained data on the simple and weighted customs rate, it is seen that the
weighted nominal duty rate is lower than the simple nominal duty rate, which points to the
fact that in the period from 2014 to 2017 in the Republic of Macedonia the value of the import
of goods from the tariff items at the customs tariff with lower customs rates are higher than
the value of the import of goods classified in tariff items for which a higher customs rate is
prescribed.
In 2014, collected revenues amounted to 1,940,000.00 million denars, and in 2015
they amounted to 1,845,000.00 million denars, 2016 1,980,000.00 million denars, and in 2017
2,100,000 million denars, from which to conclude that with the exception of 2015, the import
of agricultural products, and thus the collection of customs due to increase of quantity and
value of imports, is increasing.
Nominal and real customs protection affect the import of agricultural products in such
a way that their imports increase agricultural products and vice versa. The level of the
nominal duty rates should primarily reflect the protective and development functions on the
domestic economy.
In cases where prostate rates and the weighted nominal and real customs protection in
the agricultural food sector are higher in a given year compared to another year, this means
that in that year the agricultural and food sector was more protected compared to the
comparable year.
If the weighted average nominal rate in the agricultural and food sector is greater than
the simple average nominal rate, this means that the value of the imports of goods classified in
tariff paragraphs for which a higher rate of customs is prescribed is greater than the value of
the imports of goods classified in tariff paragraphs for which a lower customs rate is
prescribed and vice versa.
As a rule, the rates of weighted nominal customs protection are always higher than the
rates of real customs protection that is proven by the calculated calculation given in the table
below.
Namely, the rate of weighted nominal customs protection in the agricultural food
sector in 2014 was 6.24%, while the real customs protection rate was 4.65%. In 2015, the rate
of weighted nominal customs protection is 4.94%, while the rate of real customs protection is
4.19%. In 2016, the rate of weighted nominal customs protection is 5.33%, while the rate of
real customs protection is 4.42%. The same is the situation with 2017 when the rate of
weighted nominal customs protection is 5.44%, while the rate of real customs protection is
4.47%.
From the data presented in the table attached to the customs rates per head as the main
recommendation that can be adopted is that the customs rates of raw materials from the
agricultural food sector should in the future be positioned at a lower level than the customs
rates of the final products from the agricultural food sector in which those raw materials are
the main input. Data from the State Statistical Office for the yield per hectare of agricultural
products for the given period have been analyzed. . Accordingly, average yields per hectare of
more important crops are monitored, which indicate the trend and direction of movement of
yields in the last ten years.
The eighth chapter contains the research on the yields for agricultural crops.
According to the obtained data it is evident that the yield of crops in the period 2006-2016
increased in most of the crops, including wheat, rice, sunflower, tobacco, tomato, peppers and
grapes, and in the other crops such as corn and sugar beet stagnated the yield per hectare.
From the obtained data it can be concluded that the yield of agricultural products tends to
increase every year starting from 2006 onwards.
According to the obtained data from the State Statistical Office of the Republic of
Macedonia, it is evident that the yield, in general, of the crops is increased. For wheat, rice,
sunflower, tobacco, tomato, peppers and grapes, starting from 2006 until 2016, the yield has a
tendency to increase. In the other crops, such as corn and sugar beet stagnates the yield per
hectare. From the above, we can conclude that, in general, the crop yield per hectare in the
crops is growing, which does not lead to the conclusion that the agricultural food sector is in
progress. If we consider that the customs protection of the agro-food sector in the Republic of
Macedonia has not been reduced, from 2014 to 2017, it is indisputable that this affects the
increase in the domestic agricultural production.
Concluding observations
From the above, it can be determined that the yield of agricultural products tends to
increase each year according to the data given above in the table. In the function of
investigating the problem covered in the hypothetical framework, primary and secondary
sources of data were used. By analyzing the content of the statistical data from the State
Statistical Office of the Republic of Macedonia and the Customs Administration of the
Republic of Macedonia, the impact of the customs protection on the import of agricultural
producers is determined.
According to the results obtained from the given calculations it can be seen that:
1. the rates of simple nominal customs protection are higher than the rates of real
customs protection in the agricultural food sector. The highest level of real customs protection
is in 2014 compared to 2015, 2016 and 2017, which means that the products from the
agricultural food sector were actually the most protected in 2014, then in 2017, then in 2016,
and finally the lowest rate of real customs protection in the agro-food sector was in 2015.
2. The rates of real customs protection of the agricultural food sector are 4.65% in
2014, 4.19% in 2015, 4.42% in 2016 and 4.47% in 2017.
According to the rates of real customs protection, the agricultural food sector in 2014
was more secure compared to 2015, and in 2017 it was more secure compared to 2016.
3. The highest level of simple nominal customs protection in the period 2014-2017 is
in the fourth section of the agricultural food sector and it is 32.89%, then in the third
department, which is 24.70%, followed by the second section, where the prostate nominal
customs rate is 19.53% and in the end the lowest nominal customs rate in the agro-food sector
is in the first section and it is 18.37%.
4. The simple nominal duty rate for the period 2014 to 2017 in the agri-food sector is
26.97%.
5. The weighted nominal customs rate in the agricultural food sector was the highest in
2014 and it was 6.24%, followed by 2016 when the weighted nominal rate of customs duty
was 5.33%, in 2017, the weighted nominal duty rate was 5.04% , while in 2015 the nominal
customs duty rate was 4,94%.
Compared to departments, the highest weighted nominal duty rate is in the third
section, respectively in Chapter 15, when the weighted nominal duty rate was 24.94%, then in
the first section of the customs tariff, where the weighted nominal customs rate was the
highest in 2016 and it was 12 , 34%, followed by the second division when the weighted
nominal customs rate in 2016 was 10.64% and at the end the lowest weighted nominal
customs duty rate was in the fourth division, and in 2017 it was 4.69% .
From the obtained data on the simple and weighted customs rate it can be seen that the
weighted nominal duty rate is lower than the simple nominal duty rate, which points to the
fact that in the period from 2014 to 2017 in the Republic of Macedonia the value of the import
of the goods from the tariff rates at the customs tariff with lower customs rates is higher than
the value of the import of goods classified in tariff items for which a higher customs rate is
prescribed.
In 2014, collected customs duties amounted to 1,940,000.00 million denars, and in
2015 they amounted to 1,845,000.00 million denars, 2016 1,980,000.00 million denars and in
2017 2,100,000 million denars, from which can be concluded that with the exception of 2015
the import of agricultural products, and thus the collection of customs due to increase in
quantity and value of imports is increasing.
The level of customs protection of the agricultural food sector in the Republic of
Macedonia has a positive impact on the increase of the domestic agricultural production and
this is of great importance on the microeconomic and macroeconomic plan.
Nominal and real customs protection affect the import of agricultural products in such
a way that their imports increase agricultural products and vice versa. The level of the
nominal duty rates should primarily reflect the protective and development functions on the
domestic economy.
In cases where prostate rates and the weighted nominal and real customs protection in
the agricultural food sector are higher in a given year compared to another year, this means
that in that year the agricultural and food sector was more protected compared to the
comparable year.
If the weighted average nominal rate in the agricultural and food sector is greater than
the simple average nominal rate, this means that the value of the imports of goods classified in
tariff paragraphs for which a higher rate of customs is prescribed is greater than the value of
the imports of goods classified in tariff paragraphs for which a lower customs rate is
prescribed and vice versa.
Namely, in this paper, the liberalization of the import of agricultural products is
considered to act in the direction of increasing the productivity, that is, the manufactured
products per unit time, their quality and make the production process more adaptable to the
economic, that is, market shocks.
In this respect, the Republic of Macedonia, by setting a preferential rate of DD of 5%
of agricultural products, made a clear revision of the Law in terms of liberalization. The
import procedures themselves are accelerated, which directly influence the incentive of
farmers to more often and more confidently reach after purchasing modern products and
materials that they will use in agricultural production
Namely, in the analyzes of this paper, it is clearly perceived that the domestic
production is not protected against corn and wheat, where the imported flour from the
neighboring countries is imported, while the domestic producers' receipts remain unused,
which is dissuasive in them, but also negatively affects the economy, ie the trade deficit,
because money flows to another country, and our gross domestic product stagnates or even
goes down.
This paper confirms the significant influence of the comparative analysis of the import
of the agricultural food sector. First of all, as mentioned above, these data are extremely
important for formulating strategies in the future, as well as adjusting and amending the
legislation in this context in order to improve the effect of imports.
Namely, as the text above indicates the import of food is important in several aspects.
One very important aspect is the competition that foreign products create on the domestic
market, forcing the domestic to maintain it, but also to consistently work on increasing the
quality of products while offering them at affordable and competitive prices, otherwise they
would lose their position on the market and would be "swallowed" by competitors.
As an important aspect when importing agricultural products from the perspective of
customers, it has led to an increase in the product diversity, that is, the range of client choice
has increased, so the client's quality of life has become richer because it can choose.
Another aspect is that export entails export costs for exporters who vice versa exported
revenues that flow into the state treasury, through customs and other duties.
The proposal is therefore to raise the collected funds and then allocate them to invest
in modernizing and modernizing the process of agricultural production, primarily through
new types of agricultural products.
The most significant effect of this doctoral dissertation, ie the analysis of all
theoretical, dynamic analyzes, and later empirical analyzes, is the applicative application of
the obtained results to the reality, ie this paper, through the knowledge obtained through the
methodological framework of the same, produces results that are directly applicable to the
national strategies and legislation, primarily refers to the Customs Law and the Customs
Tariff in respect of the parts related to agricultural products, the process of agricultural
production in, the import of the same as the import of agricultural food products.
This paper contributes to understanding the need for creating a more flexible, softer,
regulation and strategy that will be on the side of the creation of preconditions for a
continuous process of monitoring the latest trends in agricultural production by importing the
most modern trends in agricultural production through the import of agricultural products, in
order to provide competitive production through reduced costs, increased quality and greater
adaptability to market shocks.
From the obtained data on the simple and weighted customs rate it can be seen that the
weighted nominal duty rate is lower than the simple nominal duty rate, which points to the
fact that in the period from 2014 to 2017 in the Republic of Macedonia the value of the import
of the goods from the tariff rates at the customs tariff with lower customs rates is higher than
the value of the import of goods classified in tariff items for which a higher customs rate is
prescribed.
In 2014, collected revenues amounted to 1,940,000.00 million denars, and in 2015
they amounted to 1,845,000.00 million denars, 2016 1,980,000.00 million denars, and in 2017
2,100,000 million denars, from which to conclude that with the exception of 2015, the import
of agricultural products, and thus the collection of customs due to increase of quantity and
value of imports, is increasing.
Namely, the rate of weighted nominal customs protection in the agricultural food
sector in 2014 was 6.24%, while the real customs protection rate was 4.65%. In 2015, the rate
of weighted nominal customs protection is 4.94%, while the rate of real customs protection is
4.19%. In 2016, the rate of weighted nominal customs protection is 5.33%, while the rate of
real customs protection is 4.42%. The same is the situation with 2017 when the rate of
weighted nominal customs protection is 5.44%, while the rate of real customs protection is
4.47%.
From the given data in the table no. 2 for customs rates per head as the main
recommendation that can be adopted is that the customs rates of raw materials from the
agricultural food sector should in the future be positioned at a lower level than the customs
rates of the final products from the agricultural food sector in which those raw materials are
the main input .
According to the conducted research results were obtained indicating that the customs
protection of the agricultural food sector affects the import of agricultural products and thus
confirms the hypothesis set in this paper and the following: The customs protection of the
agricultural food sector is a dimensional category that can suffer changes and is related to the
category of imports of agricultural products, and therefore it can be fully stated that the
customs protection of the agricultural food sector affects the the train of agricultural products,
which is a hypothesis of labor, and as a chain reaction, the hypothesis that the customs
protection of the agricultural food sector affects the structure of the domestic agricultural
production.
The results of this research have shown that some of the raw materials in the
agricultural food sector have a higher level of protection than products with a higher degree of
finalization in this sector. This shows that this level of customs protection adversely affects
the competitiveness of domestic products from the agro-food sector with a higher degree of
finalization. These findings must be taken into consideration when creating the commercial,
customs and agricultural policies in our country in order to improve the competitiveness of
the domestic business entities in this sector of the economy.
A fundamental contribution to this doctoral dissertation would be its practical
application in the overall customs policy of the Republic of Macedonia in the field of
agriculture and food sector.