TODAY IS SUNDAY, DECEMBER 17, 2017, 4:45:02 PM
VISUALLY VERSION

bulavinvi_eng Vladimir Ivanovich Bulavin
 Head of the Federal Customs Service of the Russian Federation
The Board of the FCS of Russia has summed up the results of 2005 and chalked out the action plan for 2006

       The enlarged session of the Board of the Federal Customs Service took place on February 16th, 2006. The session of the Board was attended by German Gref, Minister of the Ministry of Economic Development and Trade of the Russian Federation, representatives of the Administration of the President, of the State Duma, the Federation Council, Ministries and Agencies.
   Alexander Zherikhov, Head of the FCS of Russia, made the main report. 
   He noted, that the last 2005 will be remembered in the history of customs service of Russia as a year of systematic, in-depth analysis of the activity of customs, working out and adoption of the Concept of development of customs authorities of the Russian Federation.

         The Russian customs has met new 2006 with a clear, proven action program of setting up in Russia of a competitive customs service which is to meet all the international standards.
 At the session of the Board of the Ministry of Economical Development and Trade, conducted on February 3rd, 2006, there were considered the measures on implementation of the Concept of development of customs authorities, which, after additional improvement and consensus building, will be presented for consideration of the Government of the Russian Federation.
 The measures in the enlarged form are united into five groups: border development and integrated control at the border; counteraction to unauthentic declaring, diminishing of customs value, declaring of unauthentic information regarding the country of origin; stage-by-stage harmonization of customs legislation of the Russian Federation and the European Union; implementation of new information technologies of customs administration and preliminary informing;  alteration of methods of dealing with human resources of customs service, upgrading of professionalism of executive officers and counteraction to corrupt practices.

       “These tasks are of complex character; in many ways these tasks are new, and are not to be resolved using old approaches and methods; consequently, we are to find new approaches and new forms of work on improvement of customs administration” said Alexander Zherikhov.
       The master vector of activity of customs authorities in 2005 was the requirement of the President of Russian Federation, outlined in his Annual Address to the Federation Council that the customs and tax authorities were to strictly comply with the laws and that control over compliance with legislation was to be further strengthened. This remains the priority for customs authorities in 2006.
       One of the key tasks to be resolved in this year is counteraction to unauthentic declaring. The activity of a head of a customs terminal, personal role of each customs officer and of customs authority on the whole will be evaluated by the end results of work in this direction. Household appliances, electronic equipment, mobile phones, computers and other goods of Groups 84-85, the goods imported from the countries of the South-East Asia, China and Turkey, “umbrella” goods, and other high-risks goods remain in the center of attention.    Organization of work on preventing unauthentic declaring should be based on meaningful and professionally competent application of the system of risks management.
     Resolving of such issues, as setting up of unified standards and requirements to the development of the border, technical equipment of customs check-points with modern scanning devices, weighing equipment, and inspectorial-supervision complexes are in the line of measures targeted to counteract unauthentic declaring.
   

    Control of customs value remains one of the most important tasks for customs authorities. It is necessary to set up the complex system of information analytical support of works on customs value control. The Common data base of reference prices for goods and services and using of this information by an inspector at a customs terminal in automatic mode using relevant software facilities will be the core of the system.
     The work on setting up of the Common data base and filling it up with information is to start in this year; and it will include outsourcing on competition basis of independent international companies to participate in it.
 At the same time, using of reference information from the data base is not relieving heads of Regional Customs Administrations and customs authorities from exercising strict control over adherence by senior officers to the prescribed actions in full compliance with regulatory framework and the law on customs tariff.
    The collectability of customs charges still remains one of the major directions of customs service activity, and it is to be based not on “money at all costs” principle, but on accurate following of letter and intent of law.

       The results of customs charges collectability in 2005 were record breaking in the last 15 years of operation of customs service of Russia.  There were collected and transferred to the budget 2.1 trillion rubles or 74.4 billion United States dollars. It was by 882.7 billion rubles or 31.9 billion United States dollars more than in 2004. The payments of importation duty in 2005 amounted to 750.3 billion rubles or 26.5 billion United States dollars, which was by 186.4 billion rubles more than in 2004.
   The assignment, envisaged by the legislative budget for the year of 2006, is equally difficult and it amounts to 2 trillion 136 billion rubles, inclusive of 839 billion of rubles of importation duty charges. The importation customs duty component in the structure of customs payments becomes the main part in evaluating of work of any customs authority in the current year.

   The assignment is not just to achieve the set target, but to overachieve the assignment by mobilizing all the existing reserves.  
       Another task of 2006 is to drastically alter the situation in fighting the so called “fly-by-night” companies. This work is to be carried out in close cooperation with tax authorities, law enforcing structures and business circles.
    

   Detecting and preventing of violation of the rights of intellectual property is another important task of this year. The current legislation of the Russian Federation in province of the protection of the intellectual property rights sets a reliable barrier on the way of counterfeit goods. However, the efficiency of law enforcing practice remains low. Customs authorities work on protection of the intellectual property rights in this year will be administered as much as possible, since this is one of the most vulnerable positions in negotiating process of entry of Russia in the World Trade Organization.
   The quantity of the goods identified by customs authorities and recognized as counterfeit goods by a court decision will be a simple and objective way of evaluating the efficiency of counteraction to conveyance of counterfeit goods. 

   The implementation of new technologies of customs administration, electronic declaring and preliminary informing will be an important task for customs authorities in 2006.
 86 customs offices in 2005 had sufficient technical equipment for using of electronic declaring. It was by 23% more than it had been earlier planned for 2005. The target for the year of 2006 is to make the number of technically equipped offices for electronic declaring 130; and at that these customs offices are to be spread in all the regions of the country, rather than in the Central region. Currently, the system of electronic declaring in the majority of cases is applied only to importation. Exportation component has been so far neglected. Our task is to make exportation customs processing easier. 
 

   In the current year it is planned to start, at first as an experiment, realizing the agreements on joint customs control with customs authorities of countries neighboring with Russia. Realizing of a pilot project will show the advantages of joint control using a specific example.
In 2006 it is necessary to complete works on harmonization of the requirements to customs clearance and transit of goods in Russia with the requirements of the Single Administrative document, and start using it from 2007 onwards.

      Maintaining at steadily low level of the percentage of failed delivery of goods will remain in 2006 a main working task for customs authorities in this direction.  For this purpose it will be necessary to significantly upgrade customs transit control arrangements, to continue work on designing of a new automated system of customs transit control in view of the necessity of integration with New computerized transit system (NCTS).

        Russia is a major potential transit country and it might get significant economical benefits of this situation. The Federal Customs Service is prepared to do what is required to simplify the procedures used now during transit transportation, as long as our customs authorities receive authentic information about the conveyed commodities. It is necessary to set up in 2006 a single organizational structure on construction, operation and maintaining of the check-points since there are still many problems with underdeveloped railroad customs check-points, and handling operations.
  

      An important aspect in strengthening control over compliance with customs legislation is in unified and universal application of such legislation all over the customs territory of the Russian Federation. Equal understanding and equal enforcement of law in all customs territory of the Russian Federation is obligatory. 
      The task is also in specifying in more detail, at all levels, from the FCS of Russia to a common customs office, of work on provision of uniform application of law enforcement  practices in cooperation with courts and other law enforcement authorities. Ambiguous interpretation by public prosecutors and courts in various parts of the Russian Federation and taking in similar cases of polar decisions sometimes brings about unjustified release of offenders from responsibility for their wrong doing.
     The major goal for the activity of law enforcement departments of customs authorities in 2006 will be provision of compliance with the general legal principle of the necessity of punishment for the committed violations in customs sphere.

     It is necessary to resolve a number of problems in order reach this goal. One of the most important problems is empowerment of customs authorities with the right of preliminary investigation.
 “We are beginning our full scale work on realizing the Concept of development of customs authorities, and the year of 2006 is the starting point of this work. We have a wonderful chance to change the situation in the service, to change ourselves, to create a modern, new customs service. We have no right to lose this chance and we are obliged to do everything possible in order to fully meet the current requirements”, said A.Zherikhov, Head of the FCS of Russia.

 

       The enlarged session of the Board of the Federal Customs Service took place on February 16th, 2006. The session of the Board was attended by German Gref, Minister of the Ministry of Economic Development and Trade of the Russian Federation, representatives of the Administration of the President, of the State Duma, the Federation Council, Ministries and Agencies.
   Alexander Zherikhov, Head of the FCS of Russia, made the main report. 
   He noted, that the last 2005 will be remembered in the history of customs service of Russia as a year of systematic, in-depth analysis of the activity of customs, working out and adoption of the Concept of development of customs authorities of the Russian Federation.

         The Russian customs has met new 2006 with a clear, proven action program of setting up in Russia of a competitive customs service which is to meet all the international standards.
 At the session of the Board of the Ministry of Economical Development and Trade, conducted on February 3rd, 2006, there were considered the measures on implementation of the Concept of development of customs authorities, which, after additional improvement and consensus building, will be presented for consideration of the Government of the Russian Federation.
 The measures in the enlarged form are united into five groups: border development and integrated control at the border; counteraction to unauthentic declaring, diminishing of customs value, declaring of unauthentic information regarding the country of origin; stage-by-stage harmonization of customs legislation of the Russian Federation and the European Union; implementation of new information technologies of customs administration and preliminary informing;  alteration of methods of dealing with human resources of customs service, upgrading of professionalism of executive officers and counteraction to corrupt practices.

       “These tasks are of complex character; in many ways these tasks are new, and are not to be resolved using old approaches and methods; consequently, we are to find new approaches and new forms of work on improvement of customs administration” said Alexander Zherikhov.
       The master vector of activity of customs authorities in 2005 was the requirement of the President of Russian Federation, outlined in his Annual Address to the Federation Council that the customs and tax authorities were to strictly comply with the laws and that control over compliance with legislation was to be further strengthened. This remains the priority for customs authorities in 2006.
       One of the key tasks to be resolved in this year is counteraction to unauthentic declaring. The activity of a head of a customs terminal, personal role of each customs officer and of customs authority on the whole will be evaluated by the end results of work in this direction. Household appliances, electronic equipment, mobile phones, computers and other goods of Groups 84-85, the goods imported from the countries of the South-East Asia, China and Turkey, “umbrella” goods, and other high-risks goods remain in the center of attention.    Organization of work on preventing unauthentic declaring should be based on meaningful and professionally competent application of the system of risks management.
     Resolving of such issues, as setting up of unified standards and requirements to the development of the border, technical equipment of customs check-points with modern scanning devices, weighing equipment, and inspectorial-supervision complexes are in the line of measures targeted to counteract unauthentic declaring.
   

    Control of customs value remains one of the most important tasks for customs authorities. It is necessary to set up the complex system of information analytical support of works on customs value control. The Common data base of reference prices for goods and services and using of this information by an inspector at a customs terminal in automatic mode using relevant software facilities will be the core of the system.
     The work on setting up of the Common data base and filling it up with information is to start in this year; and it will include outsourcing on competition basis of independent international companies to participate in it.
 At the same time, using of reference information from the data base is not relieving heads of Regional Customs Administrations and customs authorities from exercising strict control over adherence by senior officers to the prescribed actions in full compliance with regulatory framework and the law on customs tariff.
    The collectability of customs charges still remains one of the major directions of customs service activity, and it is to be based not on “money at all costs” principle, but on accurate following of letter and intent of law.

       The results of customs charges collectability in 2005 were record breaking in the last 15 years of operation of customs service of Russia.  There were collected and transferred to the budget 2.1 trillion rubles or 74.4 billion United States dollars. It was by 882.7 billion rubles or 31.9 billion United States dollars more than in 2004. The payments of importation duty in 2005 amounted to 750.3 billion rubles or 26.5 billion United States dollars, which was by 186.4 billion rubles more than in 2004.
   The assignment, envisaged by the legislative budget for the year of 2006, is equally difficult and it amounts to 2 trillion 136 billion rubles, inclusive of 839 billion of rubles of importation duty charges. The importation customs duty component in the structure of customs payments becomes the main part in evaluating of work of any customs authority in the current year.

   The assignment is not just to achieve the set target, but to overachieve the assignment by mobilizing all the existing reserves.  
       Another task of 2006 is to drastically alter the situation in fighting the so called “fly-by-night” companies. This work is to be carried out in close cooperation with tax authorities, law enforcing structures and business circles.
    

   Detecting and preventing of violation of the rights of intellectual property is another important task of this year. The current legislation of the Russian Federation in province of the protection of the intellectual property rights sets a reliable barrier on the way of counterfeit goods. However, the efficiency of law enforcing practice remains low. Customs authorities work on protection of the intellectual property rights in this year will be administered as much as possible, since this is one of the most vulnerable positions in negotiating process of entry of Russia in the World Trade Organization.
   The quantity of the goods identified by customs authorities and recognized as counterfeit goods by a court decision will be a simple and objective way of evaluating the efficiency of counteraction to conveyance of counterfeit goods. 

   The implementation of new technologies of customs administration, electronic declaring and preliminary informing will be an important task for customs authorities in 2006.
 86 customs offices in 2005 had sufficient technical equipment for using of electronic declaring. It was by 23% more than it had been earlier planned for 2005. The target for the year of 2006 is to make the number of technically equipped offices for electronic declaring 130; and at that these customs offices are to be spread in all the regions of the country, rather than in the Central region. Currently, the system of electronic declaring in the majority of cases is applied only to importation. Exportation component has been so far neglected. Our task is to make exportation customs processing easier. 
 

   In the current year it is planned to start, at first as an experiment, realizing the agreements on joint customs control with customs authorities of countries neighboring with Russia. Realizing of a pilot project will show the advantages of joint control using a specific example.
In 2006 it is necessary to complete works on harmonization of the requirements to customs clearance and transit of goods in Russia with the requirements of the Single Administrative document, and start using it from 2007 onwards.

      Maintaining at steadily low level of the percentage of failed delivery of goods will remain in 2006 a main working task for customs authorities in this direction.  For this purpose it will be necessary to significantly upgrade customs transit control arrangements, to continue work on designing of a new automated system of customs transit control in view of the necessity of integration with New computerized transit system (NCTS).

        Russia is a major potential transit country and it might get significant economical benefits of this situation. The Federal Customs Service is prepared to do what is required to simplify the procedures used now during transit transportation, as long as our customs authorities receive authentic information about the conveyed commodities. It is necessary to set up in 2006 a single organizational structure on construction, operation and maintaining of the check-points since there are still many problems with underdeveloped railroad customs check-points, and handling operations.
  

      An important aspect in strengthening control over compliance with customs legislation is in unified and universal application of such legislation all over the customs territory of the Russian Federation. Equal understanding and equal enforcement of law in all customs territory of the Russian Federation is obligatory. 
      The task is also in specifying in more detail, at all levels, from the FCS of Russia to a common customs office, of work on provision of uniform application of law enforcement  practices in cooperation with courts and other law enforcement authorities. Ambiguous interpretation by public prosecutors and courts in various parts of the Russian Federation and taking in similar cases of polar decisions sometimes brings about unjustified release of offenders from responsibility for their wrong doing.
     The major goal for the activity of law enforcement departments of customs authorities in 2006 will be provision of compliance with the general legal principle of the necessity of punishment for the committed violations in customs sphere.

     It is necessary to resolve a number of problems in order reach this goal. One of the most important problems is empowerment of customs authorities with the right of preliminary investigation.
 “We are beginning our full scale work on realizing the Concept of development of customs authorities, and the year of 2006 is the starting point of this work. We have a wonderful chance to change the situation in the service, to change ourselves, to create a modern, new customs service. We have no right to lose this chance and we are obliged to do everything possible in order to fully meet the current requirements”, said A.Zherikhov, Head of the FCS of Russia.