Road map to improving customs administration

On 23 May 2012, in the Russian Managers Association’s conference hall, a session was held of the Committee on Cross-Border Trade. Chaired by Galina Balandina, a partner and the head of customs law and foreign trade regulation at Pepeliaev Group, it was devoted to the topic: ‘A road map to improving customs regulation. Can major improvements be made in the customs sector?’

In May, Vladimir Putin supported the proposals of business people that were put together in the form of the Road Map of the Strategic Initiatives Agency. After the proposals are agreed with the federal authorities affected, a plan of action should appear, aimed at major improvements in customs administration.

During the session, there was an airing of topical questions in relation to the content of the new Road Map, and proposals were discussed that had been put forward by federal officials involved in the process of drafting the new programme of improvements in the customs sector.

Galina Balandina, in her role chairing the Committee, spoke about the principal idea of the Road Map as being to put back the time at which customs payments are made until after goods are released. This will allow customs formalities to be speeded up considerably when goods are imported into Russia. “The new model of customs administration requires the institution of a general financial guarantee to be adopted and special conditions for bank guarantees to be developed,” believes Ms Balandina. In addition, the system of customs control needs to be improved, being based on an analysis of risks; there needs to be a transition to electronic document management when all administrative procedures are carried out in relation to goods being moved across the border; and the institution of customs representatives (brokers) needs to be developed. In Ms Balandina’s view, attention should be given to the system of assessing the effectiveness of customs control in relation to the volume of ‘grey’ imports circulating on the Russian market and to an examination of fair measures of liability for violations of customs rules.

Sergey Dmitriev, head of projects at the Department for Developing a Partnership Network and chairman of the Strategic Initiatives Agency, acquainted committee members with the process of preparing the Road Map. He noted that this is an important topic for improving the investment climate in Russia, along with other business initiatives.

Those taking an active role in the discussion of the Road Map included Nariman Kutlubaev (TRANSAERO), Valery Rodionov (AvtoVAZ), Marina Lyakisheva (DLA Piper), Galina Dontsova (Ernst & Young) and others involved in cross-border trade in many sectors of the Russian economy from retail (IKEA) to manufacturing (Avtoframos). Those present were unanimous in noting the need for improvements in customs administration, the need to ensure quick release times, and for a significant increase in the salaries of officers of the customs authorities.

Present at the Committee’s session were representatives of the Ministry of Economic Development, Mikhail Antipov and Konstantin Evstiukhin, who gave detailed replies to numerous questions from members of the Committee. Mr Antipov noted with particular emphasis the fact that “a new era is now being born”, in which business gives a strategic system, and interconnected proposals that change the course of events, which are, moreover, negotiated with the state. Along with questions, those present also gave voice to many proposals, including in relation to adjusting customs value and key elements of the system. The representatives of the Ministry also told the meeting about the survey they have arranged for business people on the topic of possible ways to implement the proposal to put back the time at which customs payments are made. An invitation to the discussion has been placed on the Ministry’s cross-border trade portal at: http://bit.ly/KO6trv

It has been decided to devote the Committee’s next session (provisionally scheduled for September) to Russia’s accession to the WTO. Those wishing to take part in the session are invited to put forward specific questions on this topic on the Committee’s Facebook page: http://www.facebook.com/groups/paladiev