• 2010 October 14

    Waiting for customs to get the go-ahead

    There is no sense to talk about boosting the competitiveness of Russian ports without improving the legislation related to of the currently effective procedure of vessel inspection, including a border and customs control commission on board, customs routine causing delays of ships en route Russia’s inland waterways. The Russian Ministry of Transport has triggered changes in the current legislation. The process of harmonization of the draft amendments by the scores of governmental agencies can take a long time.

    Passing through inland waterways
     
    Russia is working on opening its waterway for foreign-flagged vessels. The Russian Transport Ministry has developed amendments to the Code of inland waterway transport, which is planned to be introduced to the Russian Government in November 2010. This should stimulate the development of intermodal transport, building crosscutting logistics schemes.

    Meanwhile, the current procedure of ship inspection at the harbor border crossing points, such as a river-sea going container carrier en route from Europe to Russia and further on the country’s inland waterways, will lead to additional costs. For example, customs officers may decide to pick for inspection a bottom box in the containers row, so you’ll have to offload the entire cargo.
     
    The officials of Northwest Customs Directorate of the Federal Customs Service of Russia (SZTU) told the PortNews correspondent that the decision about the necessity of the inspection is taken on the basis of "risk profiles". So, there is no guarantee that the cargo carrier won’t be asked to discharge cargo during the inspection. As Eugene Bespalov, Chief of the SZTU’s Department of checkpoints operations told in an interview with the agency, practically, it happens regularly, but the problem could be resolved when a system of information in advance is launched.

    Volga-Baltic Logistics company also told PortNews, to unload a container costs at least $100. Of course, customs inspection is not the only problem for international transportation through the country’s inland waterways, but in contrast to the seasonal factor, the problem is subjective and can be solved if there is a political will.

    Fortunately, there is an example at hand, in the neighboring Finland. Customs there has all information, 2-3 days before the ship arrives, if there are risk factors, which call for a spot check. Most of the Finnish customs documents are prepared and submitted by a representative of the cargo owner in electronic form. All export cargoes registration is executed in electronic submissions. It takes just a few minutes to pass the customs procedure, if all documents are in order. "We're doing some spot checks,” says the chief of Kotka Customs office Esko Nordlund. “Most of the work falls on the analysis of risk factors”. According to the officer, when, for example, representatives of Japanese and Korean enterprises are working out a new route for its products, they must first learn all details about different customs legislation in the countries where the cargo will be cleared. "Far Eastern suppliers are working with huge volumes. They do not want to face the risk of demurrage," said Esko Nordlund. Fast customs clearance procedure in Finland is an obvious advantage over Russian terminals.

    Development of the customs legislation in Russia has been complicated due to the new Customs Union. To change something in customs legislation, one will have to wait for the decision of the three countries’ supranational body - the Customs Committee of the Customs Union.

    Commissioners on board

    Another problem that has already become the talk of the town is not customs only, but other supervisory authorities as well. We are talking about inspection by a commission of officers aboard the ship. According to shipping agents, the idle time of vessels waiting until commission completes its work on board reaches an average 8-10 hours. For large vessels, this means huge losses that are not refunded.

    Nevertheless, the Russian Transport Ministry is trying to facilitate the work of participants of foreign trade. The Ministry has prepared draft amendments to the law on Russian state border, offering, in particular, the removal of inspection of vessels by such commissions. However, the routine of changes of federal law is not easy – the amendments should be agreed upon in the federal executive authorities, reviewed and approved by the Russian government, introduced to the State Duma, to pass the parliamentary hearings and be signed by the Russian President. So, as of now, the Transport Ministry has drafted amendments to the model scheme for the border crossing procedure, which will make possible loading and unloading operations simultaneously with the commission work.

    As Alexei Klyavin, the director of Transport Ministry’s department of state policy in maritime and river transport, comments on the initiative of the Ministry, “the changes we propose are aimed at the abolition of our current commission procedure of processing of vessels, as well as for permission to carry out loading and unloading operations immediately after a ship arrives at the port before the border and customs controls are over, in order to minimize the idle time of ship, waiting until the commission gets aboard." According to Alexei Klyavin, the vessel must be processed immediately upon arrival, and the authorities will conduct their obligations in accordance with a specific scheme. The new technology of state control will be based, inter alia, on the basis of the random inspection of vessel, which is to be decided on the analysis of preliminary information.

    "Currently we are at the stage of harmonization of this order with the state regulatory authorities. In general, the proposed changes are supported by all federal authorities. When such an order will be enacted, we can seriously facilitate the work of ports and ship owners", said Alexei Klyavin.

    Vitaly Chernov.