November 1998
POST OF ORIGIN: ST. PETERSBURG
AUTHOR: MIKHAIL MINKEVICH
INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 1998. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.
Summary: On October 2 1998, the Russian State Customs Committee Board visited St. Petersburg to discuss the improvement of customs clearance and customs check procedures in developing increased trade and economic cooperation between the Russian Federation and the European Union. On October 28, Northwest Customs officials met with representatives of the Foreign Consulates in St. Petersburg to discuss the results of the Russian State Customs Committee Board's visit and the current situation in the Northwest Customs. It was announced that Northwest Russia will serve as a test site for new Customs programs aimed at streamlining trade with the EU. Several specific programs to facilitate increased trade were announced. End Summary.
The Northwest region is an important Customs area for two reasons: 1) the level of goods coming into the region, and 2) it is the only region in Russia which has a border with the EU. As the Northwest Customs Commissioner reported, over 9,400 customs officers, working in 22 Customs offices and 78 Customs Posts, process 42 percent of all cargo crossing Russian borders. Over 70 percent of this cargo goes to the Moscow region as transit cargo. Due to the financial and economic crisis, October's volume of imported goods passing through Northwest Customs decreased by 210 percent compared to July 1998. However, the situation is showing improvement. In October 1998 the volume of imported goods increased by 20 percent compared to September, and by 60 percent compared to August. Moreover, Northwest Customs analysts predict that by mid November, the volume of imported goods will have significantly increased. Conversely, the current crisis has had a positive effect on exports. In October the volume of exported goods increased by 18 percent compared to July 1998, which is traditionally a top month for exports.
The Russian State Customs Committee Board has chosen Northwest Customs as a location for the development and experimental testing of new, up to date customs check and clearance technologies, which should facilitate the execution of the Partnership and Cooperation Agreement between Russia and the European Union. After experimental testing, these new technologies will be extended to all of Russia's Customs.
According to the plan, the following measures will be undertaken to implement the project:
--To develop a plan to adopt the Russian Harmonized System (HS)codes to the EU HS, and submit it to the Russian Government in November 1998 for approval;
--To modify the system of goods classification in 1999 to the first six digits of the code used in accordance with European standards;
--To speed up the process of establishing a Russian Customs Representative office in EU;
--To speed up negotiations with the EU regarding the mutual recognition of cargo customs declarations;
--To develop and approve the Free Customs Warehouse regulations by the end of 1998.
The program will also implement a system of electronic declaration with the use of electronic digital signature in the second half of 1999. In 1999-2000, the St. Petersburg Sea Port, Baltic Customs and Vyborg Customs, located on the Russian-Finnish border, will be equipped with special X-Ray systems for examining large cargos. Due to the importance of the Vyborg gateway for the further development of trade and economic relations between Russia and the EU, there are also plans this year to allocate State funds to complete the International Customs Check Point for Vehicles at "Brusnichnoye" place.
The Russian State Customs Committee Board also recommended that Northwest Customs continue their work in attracting foreign investment to develop the customs infrastructure in the region during 1998-2000.
Contact information:
Oleg Markov
Head of External Relations Department
Northwest Customs
Kutuzov Emb. 20
191187 St. Petersburg, Russia
Tel.: (7-812)-275-0235
Fax: (7-812)-275-0541
Northwest Russia Customs Home Page (currently available only in Russian): http://spbro.customs.ru
This report is provided courtesy of the Business Information Service for the Newly Independent States (BISNIS)