Analysis of application of inward and outward processing customs procedures in Lithuan companies dealing with import and export
| Date Issued |
|---|
2006 |
The article analyses the situation and application of customs procedures with an economic impact in Lithuania. The author presents detailed analyses of the application of inward processing and outward processing customs procedures by sector, origin and export destination. For the purposes of estimating the efficiency of inward processing, the author uses the coefficient of efficiency of inward processing Kip The highest coefficient efficiency of inward processing in Lithuania was for imported goods classified in HS Section X-Textiles and Textile Articles. The author analyses the application of inward processing and outward processing customs procedures after Lithuania’s accession to the EU, when the foreign trade regime and trade statistics systems changed. A new tendency can be observed with appearance of new trade partners for application of inward and outward processing. There is a considerable increase in imports for inward processing from the USA, Switzerland, Belarus and China in 2005 as compared to 2003. Export under outward processing to Belarus increased 9.5 times, to Ukraine 11.7 times, and to Mexico 2.7 times. These facts highlight a new tendency in foreign trade in Lithuania – the export of goods for outward processing to countries in which the production and marketing costs are lower. This activity by Lithuania’s businessmen helps them to lower production costs and promote exports to third countries.