Customs News from Northwest Russia

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 November 1998
POST OF ORIGIN:               ST. PETERSBURG
AUTHOR:                       MIKHAIL MINKEVICH
INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE ANDU.S. DEPARTMENT OF STATE, 1998.  ALL RIGHTS RESERVED OUTSIDE OFTHE UNITED STATES.
Summary: On October 2 1998, the Russian State Customs CommitteeBoard visited St. Petersburg to discuss the improvement ofcustoms clearance and customs check procedures in developingincreased trade and economic cooperation between the RussianFederation and the European Union.  On October 28, NorthwestCustoms officials met with representatives of the ForeignConsulates in St. Petersburg to discuss the results of theRussian State Customs Committee Board's visit and the currentsituation in the Northwest Customs.  It was announced that Northwest Russia will serve as a test site for new Customsprograms aimed at streamlining trade with the EU.  Severalspecific programs to facilitate increased trade were announced.End Summary.  
The Northwest region is an important Customs area for tworeasons: 1) the level of goods coming into the region, and 2) itis the only region in Russia which has a border with the EU.As the Northwest Customs Commissioner reported, over 9,400customs officers, working in 22 Customs offices and 78 CustomsPosts, process 42 percent of all cargo crossing Russian borders. Over 70 percent of this cargo goes to the Moscow region astransit cargo.  Due to the financial and economic crisis,October's volume of imported goods passing through NorthwestCustoms decreased by 210 percent compared to July 1998.  However,the situation is showing improvement.  In October 1998 the volumeof imported goods increased by 20 percent compared to September,and by 60 percent compared to August.  Moreover, NorthwestCustoms analysts predict that by mid November, the volume ofimported goods will have significantly increased.  Conversely,the current crisis has had a positive effect on exports.  InOctober the volume of exported goods increased by 18 percentcompared to July 1998, which is traditionally a top month forexports.  
The Russian State Customs Committee Board has chosen NorthwestCustoms as a location for the development and experimentaltesting of new, up to date customs check and clearancetechnologies, which should facilitate the execution of thePartnership and Cooperation Agreement between Russia and theEuropean Union.  After experimental testing, these newtechnologies will be extended to all of Russia's Customs.  
According to the plan, the following measures will be undertakento 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 Governmentin November 1998 for approval;  
--To modify the system of goods classification in 1999 to thefirst six digits of the code used in accordance with Europeanstandards; 
--To speed up the process of establishing a Russian CustomsRepresentative office in EU;
--To speed up negotiations with the EU regarding the mutualrecognition of cargo customs declarations;
--To develop and approve the Free Customs Warehouse regulationsby the end of 1998.
The program will also implement a system of electronicdeclaration with the use of electronic digital signature in thesecond half of 1999.  In 1999-2000, the St. Petersburg Sea Port,Baltic Customs and Vyborg Customs, located on the Russian-Finnishborder, will be equipped with special X-Ray systems for examininglarge cargos.  Due to the importance of the Vyborg gateway forthe further development of trade and economic relations betweenRussia and the EU, there are also plans this year to allocateState funds to complete the International Customs Check Point forVehicles at "Brusnichnoye" place. 
The Russian State Customs Committee Board also recommended thatNorthwest Customs continue their work in attracting foreigninvestment to develop the customs infrastructure in the regionduring 1998-2000.  
Contact information:
Oleg Markov