Customs Agency director Emil Dimitrov did not allow reporters to be present at a discussion on customs control measures, organized by the American Chamber of Commerce in Bulgaria on Monday.

He said that the discussion was very confidential, and preferred to talk behind close doors. Eradication of corruption at border checkpoints and improved collection of custom and excise duties were the topics on the agenda.

However, in his opening speech, which was open to journalists, Dimitrov briefed the members of AmCham on the new government's policy to streamline customs control, fight smuggling and corruption among customs officials and improve the collection of customs and excise duties.

Dimitrov told the businessmen that the only institution that has lent its support in the initial stages of the customs reform is the Interior Ministry but that he expects the other government institutions, the prosecuting authorities and business organizations, to join the effort as well.

The customs chief outlined the new structure of the customs administration. It will have an inspectorate and six directorates - customs intelligence, customs investigation, drug traffic intelligence and investigation, internal operations and security, and continuous control. Nine mobile units have been in operation for a month now. "Three of them are anti-drug units, another three fight contraband trade and the rest are given operative tasks," Dimitrov said.

"Instead of entering the country through the thousand or so customs offices, risk commodities will be cleared for entrance at six to seven border customs offices," he said.

Due to the transition to minimum or zero customs duties in the process of EU integration, the focus will shift to the collection of VAT and excise duties and to preventing smuggling and customs fraud.

Dimitrov said that the most serious problems that would have to be solved are organized smuggling channels, money laundering, the shadow economy and the existing mechanisms for customs fraud which received government protection.

He admitted his reform efforts met with fierce resistance from companies and organizations trying to preserve the status quo. Nevertheless, revenue has jumped by 31 per cent compared to August 2001 when the new customs management team was appointed.

International institutions are very interested in the work of the Bulgarian customs administration. The IMF has just checked the operation of the Customs Agency and it is about to be scrutinized by the World Bank, Dimitrov announced. He described the checks as useful since they allow the progress of the reform to be tracked.

In his view, in order for the government's tenure program to be implemented successfully, some two billion leva in shadow economy activity needs to be taxed which would ensure a revenue of 600 million leva for the state budget.