Customs takes the go-ahead
Participants of the foreign trade activities should not expect remissions from the customs. Experts are sure the customs as it is today is not able to respond adequately to alterations in the economic situation. Part of its functions is handed over to tax authorities. Changes are to come to the market of services related to customs clearance: large transport companies are likely to start creation of their own customs brokers.
About the negative
“Corruption has become systematic at the customs,” Aleksandr Puchkov, retired Major General of Customs, told at the seminar Taxes and Customs arranged by Vedomosti. According to him, to break the corruption chain it is necessary to develop preliminary electronic declaring having handed over this function to tax authorities. Thecustoms should only check the cargo. The Federal Customs Service should focus primarily on struggle with illegal flow of arms and drugs via the border. “Such measures would kill the practice of registering cargo as that of fly-by-night companies,” the expert thinks. As of today, the customs; activities are too multidirectional, the seminar participants believe. It often aggravates corruption and creates extra barriers for foreign trade participants.
However, there is certain positive progress caused by the reform of the customs service. In particular, in the middle of 2008, FTS started simplification of customs procedures for containerized cargo in hinterland ports. In February 2009 a corresponding concept appeared to introduce certain remission though a sharp decline of container turnover caused by the global crisis suspended its implementation.
Broker’s movements
“Only flew types of cargo – tea, coffee and bicycles – are not under total customs control in Russia today. All the rest goods are under its control being carried out to the owner’s cost,” tells Vladimir Yakovlev, Director General of Trans-Business Broker. According to him, in western countries such a control is carried out on a sample basis at state expense. “That is why customs risks are very high in Russia. Losses caused by cargo demurrage are sometimes comparable with the volume of customs payments to the budget, Vladimir Yakovlev says.
Lack of responsibility of customs authorities for demurrage results in FTS focus on implementation of internal planned tasks. Business interests are nottaken into consideration. “So one should not expect any remissions from the customs,” the expert says. According to him, minimization of customs risks by 50% is possible today through rejection of ‘grey procedures’ when registering cargo at the customs; the rest 50% could only be overcome through fighting the officials’ abuse of power.
At the same time, in the context of the economic recession and falling cargo flow, certain changes are to come to the market of customs brokers. The existing companies are to consolidate. As of the beginning of the current year there were 504 customs brokers registered in Russia. “We are likely to see how large transport companies create their own brokers,” Aleksandr Puchkov thinks.
Creation of optimal environment for the business development is especially acute in the context of the economic recession. The country’s heads name fighting corruption to be one of their priorities. The business community itself is quite decided about this – amid the global crisis it is hardly admissible to permit administrative abuse of power and bureaucratic mess. Probably, combination of these factors will lead to alteration of the state approach to the customs.