Old Roads, New Challenges - Montenegrin Forwarders Propose Solutions for Faster Customs Procedures

Companies operating in the logistics and forwarding sectors face numerous challenges, and waiting at the border and complicated customs procedures are just some of them. When it comes to Montenegro, there is also the issue of poor traffic infrastructure. However, despite numerous challenges, these sectors have significant potential for growth and development, and efficiency becomes a key factor that can significantly shape the competitiveness and economic stability of the economy.

- Logistics and forwarding represent key sectors in modern economies, playing a vital role in facilitating trade flows, linking markets and optimizing supply. In the modern global environment, where the flow of goods and services is taking place rapidly, efficiency in the logistics and forwarding sectors becomes a key factor that can significantly shape the competitiveness and economic stability of the economy - Vujović said.

As he stated, the realization of foreign trade deals faces numerous challenges, particularly during the summer tourist season. The increased influx of tourists and the growth of imports creates congestion at border crossings, which puts an additional burden on border posts and terminals. Also, insufficient infrastructural capacities, slow roads and an outdated railway network lead to non-competitive transport prices from the port of Bar to the interior, thus the port itself is losing pace with the competition from the region.

- Infrastructure as a key link in the supply chain has a direct impact on the efficiency of the logistics and forwarding sector and has a significant impact on the further growth and development of the sector. Inadequately developed transport infrastructure makes fast transport difficult, which leads to additional delays and increased transport costs - our interlocutor points out.

- The logistics and forwarding sector faces many challenges, but at the same time has significant potential for growth and development, especially with the support of process modernization, international cooperation and entry into the EU, which will further raise standards and facilitate work. Improving the infrastructure, simplifying regulations, investing in staff training and applying modern technologies are key steps towards strengthening this sector - Vujović said.

Given the fact that companies operating in this sector are often faced with hours-long waits and delays at the border, which further causes higher costs, but also numerous other problems in business, the introduction of joint border crossings is certainly one of the more significant measures.

As our interlocutor explains, joint border crossings are important points for the flow of people and goods and imply that customs and border procedures are carried out in one location, which significantly speeds up the flow of goods traffic.

Montenegro currently has three common border crossings for road traffic, which operate according to the principle of joint border control with neighboring countries - with BiH (Vraćenovići - Deleuša) and (Sitnica-Zupci), as well as with Albania (Sukobin - Murićani). In order to shorten the travel time of freight trains, Montenegro and Serbia opened a common railway crossing in Bijelo Polje last year.

- The opening of new joint border crossings or the reconstruction of existing ones depends on bilateral agreements with neighboring states, as well as from European integration and technical infrastructure equipment. Additional improvements are planned, primarily through the digitization of processes and the strengthening of the capacities of existing common points, especially in the context of preparations for Montenegro`s future entry into the EU. Currently, the plan is to open two more joint crossings, Šćepan polje - Hum and Cijevna Zarijebačka - Grabom - Vujović tells us.

- Single inspection of documents and goods means that controls are performed at one point,

which significantly speeds up border crossing. Also, efficiency is increased and costs are reduced. Namely, less time spent at the border results in lower operating costs for carriers and forwarders - he points out.

Another benefit is an increase in transparency and security, since joint supervision enables a more efficient fight against smuggling, as well as better control over the flow of goods. All of this ultimately leads to an increase in the competitiveness of the economy.

- Faster transport of goods contributes to a more competitive business environment. Freight forwarders from Montenegro and the region definitely feel the benefits of this system, especially at traffic crossings. However, many point out that further progress would require better technical equipment and digital connectivity between the services of both countries at the border - our interlocutor says.

In addition to joined border crossings, companies operating in the transport and logistics sectors

they also have the possibility to acquire the status of Authorized Economic Entity (AEO). This, our interlocutor explains, represents an internationally recognized trust mark in the customs system.

which confirms that a certain business entity operates in accordance with applicable laws, safety rules and has a proven orderly business. In Montenegro, ten companies currently have the status of Authorized Business Entity, i.e. AEO status (AEOS and AEOC), and three more applications for acquiring that designation are in the process.

Border crossings with EU member states, such as the Debeli Brijeg - Karasovići crossing with Croatia, represent the entry point to the Schengen area. Precisely because of this, says our interlocutor, controls have been additionally strengthened in accordance with the standards of the European Union.

However, he adds, from the freight forwarder`s point of view, this also means the need for greater readiness, more precise documentation and regular harmonization with EU regulations.

- The application of conventions also ensures the conditions for strengthening the fight against customs violations and preventing corruption, because most of the implementation of customs formalities is done automatically - he adds.

Common border crossings and the acquisition of AEO status certainly make it easier for freight forwarders. This is not enough, however, because the delays at the borders are still present. According to our interlocutor, the final solution to this problem requires a combination of legal, infrastructural, technical and organizational measures.