# RFE CUSTOMS UPDATE

FEBRUARY 2000

 

AUTHOR: IRINAKONSTANTINOVA, Commercial Assistant, US & Foreign Commercial Service (FCS),US Consulate Vladivostok. 

APPROVING OFFICER:Principal RICHARD STEFFENS, Commercial Officer, US Consulate Vladivostok. 

 

INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIALSERVICE AND THE U.S. DEPARTMENT OF STATE, 2000.  ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

 

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Summary

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1.  This cableprovides an update on RFE Customs development.  End summary.

 

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CLEAR-PAC 

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2.  CLEAR‑PAC(Customs Link Entry/Exit American Russian‑Pacific) is a system for electroniccustoms clearance.  CLEAR‑PAC isadministered by the Foundation for Russian American Economic Cooperation(FRAEC) through a cooperative agreement with the U.S. Department ofCommerce.  Initial shipments usingCLEAR-PAC have saved U.S. exporters an average of $30 per cargo ton.  CLEAR-PAC now operates in Vladivostokand Sakhalin ports.  The nextstages of CLEAR-PAC are inclusion of Russian certificate procedures and theRussian Customs Code amendment.

 

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East by West Corridor Project

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3.  TheTrans-Siberian railroad provides several accesses to the sea: Vladivostok,Nakhodka, ports of Vostochy, Posyet, and Zarubino.  These transportation hubs provide access from Primorsky Kraito China, the U.S., Japan, South Korea, and Asia Pacific countries via bordercheckpoints and seaports. Northwest China has no access to the sea.  The distance from the U.S. West Coast to Harbin (China) viaPrimorsky Krai ports is 1,800 km shorter than the distance via Pusan (SouthKorea) and over 2,500 km shorter than via Kobe (Japan).  The transportation sector of the AD HOCworking group developed the project "East to West Corridor".  The project envisages the creation of anew trade link between the U.S. West coast and the Northern China provinces viathe RFE ports.  In 1999, a pilotshipment passed through this route. 

 

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The "Black Corridor" Problem

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4.   Since1997, the RFE ports and the Trans-Siberian railroad have been subject todelayed reforms, strikes, government and customs inconsistency, and rail tariffgrowth.  Though the Russiangovernment sets uniform customs levels for all products, some individuals andcompanies in the Western Russia get customs privileges.  (For example, customs value of 1 ton ofmeat is $1.3 U.S. in Vladivostok vs. to $0.8 U.S. in Moscow.)  Local companies have set uprepresentation offices in Moscow and St. Petersburg to seek these privileges aswell.  This resulted in decrease ofRFE port and the Trans-Siberian railroad transit cargo volumes.  Over past nine years, theTrans-Siberian railroad volumes declined from 139,000 containers/year to 20,000containers/year.

 

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RFE Customs Brokers Association

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5.  The CustomsBrokers Regulation was adopted in January 1999.  By the end of last year the RFE Customs Brokers Associationwas set up.  The founders are fivecompanies providing customs broker services, customs warehouses, customsshipments in Primorsky Krai.  TheAssociation is involved in the new Russian Federation Customs Law drafting andin the customs clearance facilitation. Each customs broker must have a license and is controlled by governmentstructures - even by the Specialized Militia Detachment (OMON).  Customs brokers offer the customsclearance procedure transparency, tax and payment collection, time and costsavings.

Currently eight customs brokers in Vladivostok process 3% ofthe international trade cargo; in Sakhalin - customs brokers process 27% ofcargo.  The FCS office inVladivostok has a list of the RFE customs brokers.

 

Key Contacts

 

U.S. & Foreign Commercial Service

American Consulate General

32 Pushkinskaya street

Vladivostok, Russia

Tel: (7 4232) 300 093

Fax: (7 4232) 300 092

e-mail: 

web-site: 

Contact: Richard Steffens, Principal Commercial Officer

 

CLEAR‑PAC U.S.

c/o Foundation for Russian American Economic Cooperation

(FRAEC)

1932 First Avenue, Suite 803

Seattle,WA, USA 98101

Tel: (206) 443‑1935, 

Fax: (206) 443‑0954

e‑mail: [email protected]

Contact: Carol Vipperman, President

 

Far East Customs Department

Tel: (7 4232) 412 034, 412 714

Contact: Vitaly Kirsanov, Head

 

RFE Customs Brokers Association

37 Bestuzheva street, Vladivostok, Russia

Tel: (7 4232) 515 753, 414 776

e-mail: 

web-site: www.dvratb.roof.ru

Contact: Evgeny Verkhozin, Chairman

 

Primorsky Krai Administration

Shipping, sea ports, communications and transportationcommittee

22 Svetlanskaya street, Vladivostok, Russia

Tel/fax: (7 4232) 227 930

Contact: Ivan Nadein, Chairman

Alexander Lashin, Deputy Chairman