Phase I evaluation report : customs component of the public finance administration project no. 263-0209, Egypt

The component has been implemented through a PASA with the U.S. Customs Service (USCS). The evaluation covers the period 3/90-3/92. The component had a slow start which undermined relations with ECA. Delays were due to difficulties in securing accommodations for the two-person USCS team, as well as to problems in meeting A.I.D. procurement requirements. To make matters worse, USCS undertook two minor initiatives meant to be confidence-building activities but which proved to be failures. The Alexandria Filing Project was handicapped by procurement problems that reduced the value of the product, and the Export Documentation Project had a lack of response. The ECA became increasingly impatient and requested a new implementing agency, while the Ministry of Finance subsequently requested project termination. USCS, on the other hand, was frustrated by the ECA's failure to respond positively to recommendations. If implemented, these recommendations could benefit both Egypt and the international trading community. They would probably form the basis of the approach of any TA team, and would enable ECA to move toward a risk-based system of customs control. However, ECA has not shown full commitment to implementing the recommendations. The ECA has also tended to give inaccurate or partial information. Difficulty in obtaining passes to wharves, for example, has been particularly vexatious. After some negotiation, the ECA agreed to proceed with the project with a revised focus that accords more fully with the economic liberalization underway. However, it is recommended that a new implementing agency be engaged, since the current one has lost ECA's confidence.