The States (the "Parties") which are parties to this Memorandum of Understanding (the "MoU"),

DESIRING to strengthen their mutual co-operation and to exchange information on trade and transport-related issues with a view to facilitating trade and transport in Southeast Europe;

ACKNOWLEDGING their common aim to reduce the cost of trade and transport at their borders, to reduce smuggling and corruption at border crossings, and to strengthen regional partnerships and the expansion of regional trade;

STRESSING their commitment to a regional trade and transport facilitation program (the "Regional Program"), to be partially financed by the International Bank for Reconstruction and Development, the International Development Association, and other lenders and donors;

HAVE AGREED on the following MoU:

Article I - OBJECTIVE

The objective of this MoU is to facilitate the successful implementation of the various projects included in the Regional Program.

Article II - GENERAL OBLIGATIONS

Each party agrees to co-operate in good faith with, and promptly inform, other Parties with respect to the implementation of any project included in the Regional Program.

Article III - REGIONAL STEERING COMMITTEE

The Parties agree to establish a Regional Steering Committee for the purpose of overseeing overall implementation of the Regional Program and comprising one high level official selected by each Party.

The Parties agree that the Regional Steering Committee shall perform the following specific functions:

(a) consider information submitted by the representative of each Party on a regular basis on the status of all the border crossings of each Party and any bilateral or multilateral agreements on trade facilitation entered into by the Parties;

(b) review and consider any obstacles to or delays in trade and transit in the territories of the Parties;

(c) provide a forum for the sharing of results in implementing the Regional Program in the territory of each Party;

(d) monitor the results of pilot projects and the activities of any bilateral customs committees established by the Parties;

(e) cooperate with national and regional trade professional committees ("Pro-Committees") established by the Parties;

(f) consider policies and measures for the regulation of customs service personnel in accordance with international standards including, without limitation, the guidelines established under the L9 Declaration of the World Customs Organisation (Customs Co-operation Council), Arusha, 1993, commonly known as the Arusha Declaration of July 1993;

(g) exchange information among the Parties to the MoU on the classification of border crossings and on bilateral agreements concerning border crossings;

(h) exchange information among the Parties about national strategies to improve border crossing, including national customs reforms strategies and action plans for their implementation and periodic reporting on progress achieved; and

(i) consider new applications for accession to this MoU by other States.

The Regional Steering Committee shall meet at regular intervals not exceeding three months. It shall establish its own rules of procedure.

Representatives of the lenders and grantors for the Regional Program may attend the meetings of the Regional Steering Committee. Other interested governments, institutions, and bodies may be invited to the meetings of the Regional Steering Committee, as appropriate. Only Parties to the MoU will have a vote. Each Party’s representative shall exercise authority only with respect to the activities in the country which he or she represents.

Article IV - DURATION

All activities under the Regional Program shall be completed by June 30, 2007. This MoU is concluded for seven years. Its duration will automatically be extended for a further seven years if none of the Parties objects at the latest one year before the expiration of the first seven year period.

Article V - FINAL PROVISIONS

This MoU shall enter into force upon signature by at least three Parties. In the case when an approval from Parliament is required, the MoU shall become binding concerning that country, upon its ratification.

A request for the revision of this MoU may be made at any time by any Party, by means of a notification in writing addressed to the other Parties. The Parties shall decide upon the steps, if any, to be taken in respect of such request.

This MoU, drawn up in a single copy in English, shall be deposited with the archives of the Ministry of Finance of the Republic of Macedonia.