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S-1835-0025-0007-00001 C.Tif EUROPEAN COMMISSION DIRECTORATE GENERAL XXl CUSTOMS AND INDIRECT TAXATION SAMCOMM Brussels, 26 October 1995 RESTRICTED DISTRIBUTION • United Nations sanctions against the Federal Republic of Yugoslavia (Serbia and Montenegro) EU/OSCE Sanctions Assistance Missions (SAM) Thirty-second SAMCOMM situation report (period 7 September to 23 October 1995) SUMMARY Overall the sanctions are still being implemented effectively, especially since the Romanian authorities have taken extremely efficient action against the·fuel smuggling on the Danube and have succeeded in eradicating these sanctions violations. There continues to be heavy traffic of goods into and out of Serbia across the country's border to Fonner Yugoslav Republic of Macedonia. During the reporting period a number of consignments of foreign-made cigarettes have been exported to Serbia. In the other direction, approximately 10 000 tons of frozen fruits have been exported from Serbia to Fonner Yugoslav Republic of Macedonia. The frozen fruits are considered to be destined for reexport. They provide a large financial resource for F.R.Y. in violation of the sanctions. The EU/OSCE Sanctions Co-ordinator has addressed a letter to the FYROM Government congratulating them on the re-opening of the FYROM-Greek border and asking for full implementation of the sanctions regime. There is a need to eliminate the risks of violation of financial sanctions by off-shore companies in Cyprus which may be owned and controlled by businessmen resident and operating in F.R.Y. The smuggling into Montenegro of fuel products from the north of Albania continues in spite of the efforts of the authorities and SAM Albania. SAM Albania need more staff The EU/OSCE Sanctions Co-ordinator has addressed the Albanian authorities with suggestions for better implementation of the sanctions Rue de la Loi 200, B-1049 Brussels. Belgium - Office: MOB 4135A . Telephone: elCchange (•32-2)299.11 11, direct line +322 296.30.09 Fax· +322 295 44 60. Telex: COMEU B 21877. Telegraphic address: COMEUR Brussels. 7 2 DETAILS Meetings and missions The EU/OSCE Sanctions Liaison Group met under the chairmanship of EU/OSCE Sanctions Co-ordinator Ambassador Antonio Napolitano in Vienna on 8 September 1995. The meeting was preceded by a meeting of the Heads of the SAMs chaired by SAMCOMM Director Richardt Vork. • On I I September 1995 EU/OSCE Sanctions Co-ordinator Ambassador Antonio Napolitano and SAMCOM Director Richardt Vork met with the EU and WEU Presidency in Madrid for talks regarding the implementation of the UN sanctions against F .R Yugoslavia (Serbia and Montenegro) and those areas of Bosnia-Herzegovina held by Bosnian Serb forces. The meeting was held with Mr. Jorge Dezcallar, Political Director in the Ministry of Foreign Affairs, accompanied by the Director for European Affairs Mr. Rodriguez-Spiteri and other officials. On 15 September 1995 EU/OSCE Sanctions Co-ordinator Ambassador Antonio Napolitano and SAMCOM Director Richardt Vork met in Bern with the Swiss authorities in their capacity of corning Chairman-in-Office of the OSCE. We met Secretary of State Mr. J. Kellenberger, Head of the OSCE-Co-ordination Ambassador R. Kunz, and Head of the OSCE-Service Mr. Martin Dahinden for the Ministry of Foreign Affairs; we also met Director General Rudolf Dietrich from the Federal Customs Service. On 21 September 199 5 EU/OSCE Sanctions Co-ordinator Ambassador Antonio Napolitano and SAMCOM Director Richardt Vork met with the Greek authorities in Athens for talks regarding the improvement of the oil pre-verification system for fuel exports to Albania. The meeting was held with Mr. George Christofis, President of the Greek Committee for Sanctions, Ministry of Foreign Affairs, accompanied by Mr. N . Glentzis, Greek Customs Service, and other officials. The measures that we proposed were agreed. After the meeting we met Ambassador Evangelides, Director General for Political Affairs in the Ministry of Foreign Affairs. From 12 to 1 S October 1995 EU/OSCE Sanctions Co-ordinator Ambassador Antonio Napolitano and SAMCOM Director Richardt Vork participated in the Conference Crans Montana Forum in Malta. Ambassador Napolitano hosted a breakfast meeting and was the moderator of a panel session with the title "Economic and political impacts of international sanctions". Mr. Sainovic, Deputy Prime Minister of the Federal Republic of Yugoslavia (Serbia and Montenegro), Mr. Sacirbey, Minister of Foreign Affairs of Bosnia-Herzegovina, Dr. Hend A. Siala, Ambassador of Libya, and Mr. Loukov, Political Director in the Ministry of Foreign Affairs, Russia, together with many others participated in the debate. From 17 to 23 October 1995 EU/OSC Sanctions Co-ordinator Ambassador Antonio Napolitano, SAMCOMM Director Richardt Vork, and Deputy Director Richard Stone visited Washington and New York for talks with the US Government and United Nations authorities and certain delegations on the topic of the U.N. sanctions against the Federal Republic of Yugoslavia (Serbia and Montenegro) and those areas of Bosnia-Herzegovina held by Bosnian Serb forces. We also participated in the 13 l st meeting of the Sanctions Committee on Yugoslavia. SAMCOMM Liaison Officer Charles Dunbavand participated in the meetings in New York. From 9 to 11 September SAMCOMM Assistant Director Patricia McCauley visited Bulgaria for talks with the Head of SAJvf Bulgaria 3 From 19 September to 5 October 1995 SAMCOMM Assistant Director Allan Jensen visited SAM AJbania in order to assist the Head of SAM AJbania with reorganising the management structure and the working strategy of the mission. SAMCOMM Financial Officer Patricia Connolly visited the SAMCOMM procurement agent in London from 18 to 20 September 1995. The SAM COMM information technology support teams have visited several of the SAMs in order to maintain the computer equipment and software. The US repair and communication teams have visited several SAMs to repair cars and upgrade radio communication equipment. Enforcement results The Dutch Customs and Economic Control Service have confiscated 62 million duty-free cigarettes that were about to be exported to Montenegro although they had been declared for export by aircraft to Romania. The crew of the aircraft was arrested, and the aircraft detained, but were later released. On the basis of referrals from SAM Hungary, the German authorities have established that a German company in 1992 and 1993 had exported raw material for the production of shoes and imported the finished shoes. The production of the shoes took place in Serbia, but the company declared that the raw materials were sent to FYROM and that the finished shoes were ofFYROM origin as certified by genuine EUR 1 certificates issued by the Economic Chamber in Skopje. One person was sentenced to two years imprisonment, on probation, and a fine of 450 000 DEM, plus the payment of 254 612 DEM evaded duties; two other persons were sentenced to one years and 18 months imprisonment, on probation, and a fine of respectively 50 000 DEM and 250 000 DEM, plus the payment of 254 612 DEM evaded duties. A further four persons were.fined 5400 DEM, 9000 DEM, 4800 DEM and 4800 DEM. The value of the raw materials was 3.4 million DEM, whereas the value of the finished shoes was 8 million DEM. SAMCOMM and SAMS The updated list of the work relating to suspect shipments is attached as Annex 1. SAMCOMM has now made 12.998 requests for investigations and has received 4.821 replies. SAMCOtvfM is awaiting replies in 8.177 cases. 2.582 of the requests without reply are more than a year old. SAMCOMM has issued reminders, and would be grateful to the countries concerned for receiving the replies as soon as possible. For further details please consult the statistics in Annex 1. The SAM and SAMCOMM staff situation is shown in Annex 2. SAM Albania has an urgent need for more staff The backlog facing the Secretariat of the United Nations Yugoslav Sanctions Committee had been eliminated by the end of September 1995 . The situation reports of the SAM teams are attached as Annex 3. They can be summarised as follows (infonnation available to SA.MCOMM from other sources is mentioned under the relevant SAM) : 4 SAM ALBANIA The cooperation between the authorities and SAM Albania is good. A new procedure has been introduced in order to monitor the quantities of fuel that are imported into Albania and the quantities of fuel that are sent to North Albania. In mid-October 1995 the oil pre­ verification system (OPVS) that covers fuel imports from Greece and Italy has been extended to cover Malta. Under this new procedure the customs/financial police operates a check point in Lezhe 42 km south of Shkoder in order to register all consignments of fuel products that pass the check point northbound. SAM Albania does not have the staff necessary to assist the customs/financial police at the check point on a 24 hour basis. SAM Albania has reported that many more tanker trucks pass through the check point than are registered. It is therefore not possible for the moment to indicate how much fuel has passed the check point. The blatant fu el smuggling continues, especially at night across the lake of Shkoder and the Buna river. SAM Albania has reported that several new smuggling sites have been constructed and put into use_ It is reported that smugglers have said that the smuggled fuel products come not only from imports of fuel but also from the national production. The Albanian authorities have reported a successful enforcement action resulting in the seizure of 285 tons of fuel.. An incident occurred on 16 October 1995 when six police officers in civilian clothes, one of them armed with a rifle, entered the apartment in Shkoder of a SAM officer in spite of the SAM officer's protests.
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