FCS of Russia in 2011: Numbers and Facts

 Revenues of the Revenue Side of the Federal Budget


In 2011 (according to the data of 27 December) the Customs Services provided the receipts of 5845,7 bln rubles to the Russian Federation Budget. It is 1 tln 546 bln rubles more than last year. The forecasted sum of the budget income, administrated by the Customs Services, was set at the level of 5826,5 bln rubles, thus the plan was fulfilled 100,3%. As a comparison, in 2010 FCS of Russia provided the revenues of the Russian Federation Budget in the volume of 4329,8 bln rubles. Thus, in 2011 FCS of Russia overpassed the level of last year more than three times on this index.


The collection of the customs payment was provided by the Customs Services by means of the effectively organized payment administration. It includes the payment by goods import, VAT payment, import customs fees, excise taxes and customs duties, done by persons. Daily, the average customs payments of 25,6 bln rubles were transferred to the Federal Budget. At average, each customs officer in 2011 provided more than 90 bln rubles of the budget revenue.


Development of Integration Processes

In 2011 the active collaboration of the Customs Services of Russia, Belarus and Kazakhstan continued, aiming to model the Customs Union.


Profound work has been carried out to improve the customs legislation in the frames of the Customs Union. More than 200 suggestions on the revision of the Customs Code have been collected from FCS departments, ministries and agencies of the Russian Federation as well as from the representatives of business. 125 revisions have been prepared for approval, which are designed to eliminate the collisions in law principles, simplify the customs procedures and provide the further unification of the States’ Legislations.


Accomplishment of the legislation database buildup in the sphere of law enforcement activities has become an important result.


The Agreement about United panel of Customs Services of Customs Union state-members, that was signed on 22 June, 2011, was designed with the participation of Russian FCS. This institution will be coordinating the Customs Services’ activities under the condition of passing to the unified principles of Customs administration, monitoring the application of the customs procedures and rules, performing as the basis for discussions of mutually admissible unified solutions and quick response to the problems.


The Agreement about collaboration and mutual assistance in customs activities on the issues of operation of the representative offices of the Customs Union state-members was worked out. The Agreement allows representatives of the customs services to be present as surveyors by customs control in the checkpoints, located on the external border of the Customs Union.


FCS of Russia has started statistics data collection on the mutual trade with Belarus and Kazakhstan since 1 June, according to Decree of the Russian Government No. 40 dated 29 January, 2011 “About organization of statistics tracking of mutual trade of the Russian Federation with Customs Union state-members in the frames of EurAsEC”.


Customs Control Iimprovement

On 29 June, 2011 the Customs Authorities have started to exercise additional power on transport control, as well as document sanitary-quarantine, phyto-sanitary quarantine and veterinary control in the checkpoints of the Russian Federation state border. The legal and regulatory framework for carrying out of state control at the checkpoints has been revised in collaboration with the Ministry of Transportation, the Ministry of Agriculture, the Ministry of Public Health and Social Development of Russia, as well as with Russian Transport Control, Russian Agriculture Control and Consumer Rights Protection agencies.


There is completely revised legal and regulatory framework, controlling the activity of post holders by carrying out of customs operations, directed to the goods, transported by sea, air, automobile and railway means of transport. Non-commission registration of sea-crafts, e-document flow, as well as combination of cargo and control operations of the Customs Aauthorities is being deployed.


The system of customs control of bulky cargo and vehicles with the use of inspection-checking complexes (ICC) is being successfully implemented. The use of the complexes enables to preclude illegal weapon, drugs and concealed goods turnover, and to achieve the overall preventive effect. 550 thousand vehicles and transport containers have passed the customs control with ICC. According to the results of their use , the decision to carry out 3,3 thousand checks was taken, 1,4 thousand administrative and 15 criminal cases were initiated, 201 decisions about the prohibition of goods importation to the Russian Federation territory were taken. The importation of more than 190 radiation dangerous objects, contaminated during the accident on Atomic Power Station “Fukusima-1” was precluded.


FCS of Russia continued to improve the procedure of customs transit and the technology of computer-aided control of customs goods transit under the conditions of intensive integration processes. Starting from 1st January, the unified procedures of customs transit on the basis of Temporary technology of informational network among Customs Authorities of the Customs Union member-states by transportation control of the goods, transported according to the procedure of customs transit, has been employed. Revision of the procedure of filling in of a transit entry, a certificate form of the vehicle eligibility for the international transit of goods sealed and stamped by Customs, as well as the procedure of issue and use of this entry, approved by the decision of Customs Union Committee has been done, having taken into account the offers of the participants of Foreign Economic Activity.


The technology of acceptance-transmission of the escorted vehicles, shipping the goods, for the international transit, and the documentation for them, among the Customs Services of Belarus, Kazakhstan and Russia has been accepted. The customs authorities of Russia have carried out the control of transit of more than 1,6 mln goods deliveries as the departure customs authorities and more than 2,2 mln goods deliveries as destination customs authorities. Non-delivery was less than 0,01 %.


The list of stations on the customs territory of Customs Union, as well as departure points, where the system of “red” and “green” channels is used, has been enlarged. There are 49 such checkpoints.


Speedup and Simplification of Customs Procedures


One of the main goals, set by the Government of the Russian Federation for the Customs Authorities, is speedup of the customs procedures, including arrangement of conditions to decrease the goods release time.


In 2011 the customs information technologies were actively developing. Quantitative indices of electronic goods declaration have been growing with high speed: 2,85 mln entries have been submitted via the Internet for 11 months, that constitutes 77% of the total number of entries. During the first quarter of the current year, 64% of the goods were released in the e-form, however this index achieved 90% by the end of the current year.


Soon the institute of authorized economic operators will start to work in Russia. FCS of Russia will already begin to receive the applications for including the authorized economic operators (AEO) into the register in January 2012. Purchasing the AEO status, a Russian legal entity, carrying out import-export operations, will be able to apply special simplifications, providing temporary storage of the goods in its warehouses (open grounds and other areas), and goods release before submitting a customs entry and others. State service for including the authorized economic operators into the register is free of charge and available for all the Russian legal entities.


The activity of Russian Customs Authorities, directed to the quality increase of services provided and decrease of the expenditures of Foreign Economic Activity participants, allowed to shorten the customs procedure time period to 18,3 minutes (planned value is 19) on the automobile checkpoints and increase the share of entries up to 99,2% from the total for the goods, which release time period is less than one week day, following the registration day of the customs entry.


2 665 preliminary decisions about the goods classification according to TN VED TS were taken during 11 months of 2011. With the aim of vast informing of Foreign Economic Activity participants the Collected Book of preliminary decisions about the goods classification is posted in the official website of the Federal Customs Service of Russia. Today it contains the information on 19 thousand preliminary decisions.


Implementation of higher priority national projects and grant programs, aimed in particular to develop and re-equip technologically the national industry, incites the import of technological equipment, its components and raw material. FCS of Russia has worked out the procedure of bulky, high-tech equipment transportation, that is delivered in a dismantled state and during a long period. Such goods are classified with the unified code according to TN VED. 796 such classification decisions were issued during 11 months of 2011.


Due to a large number of applications for receiving the preliminary decisions about the goods classification and for purposes of decreasing of their preparation terms, regional customs departments are vested with power to take such decisions. In 2012 the transition to render the state service for taking of preliminary decisions about the goods classification according to TN VED in electronic form will be finished.


Preliminary informing


The technology of preliminary informing of Customs Authorities about the goods and vehicles, before their crossing of the customs border, was developed in 2011. The technology enables to speed up significantly the customs processes at the checkpoint and shorten queues on the borders, as well as to minimize the expenditures of careful Foreign Economic Activity participants.


The number of messages with preliminary information about the goods, imported by vehicles to the customs territory of the Customs Union increased. The customs authorities received more than 422 thousand messages with preliminary information via the Internet, more than 350 thousand of which were used by the registration of arrival of goods, imported to the Customs Union territory by railway and automobile means of transport.


The portal of Russian FCS “Electronic Data Submission” ( has become the most easy way of preliminary information and a transit entry submission for Foreign Economic Activity participants. Approximately140 thousand messages with preliminary information were submitted to the Portal starting from the beginning of 2010. 115 thousand of them were used by the registration of goods arrival.


Electronic messages, received from 13 European Union member states, are the additional source of preliminary information about the goods, imported to the Customs Union territory by vehicles. The customs authorities CTU, SZTU and YTU have analyzed about 200 thousand messages with the preliminary information about the goods.


The system TIR EPD, implemented by the International Road and Transport Union (IRU), is also regarded as one more means of preliminary information transmission. The customs authorities are discussing the implementation of this system together with the IRU specialists.


Compulsory preliminary informing in regard of the goods, transported to the Customs Union territory by vehicles, will be deployed in 2012. The possibility of the Compulsory preliminary informing deployment is described by Paragraph 3 Article 42 of Customs Code.


  1. Implementation of the Concept of Customs Registration and Customs Control of the Goods in the Places, in the Vicinity of the State Border of the Russian Federation


FCS of Russia is gradually implementing the Concept of customs registration and customs control of the goods in the places, in the vicinity of the state border of the Russian Federation. The duration of the customs procedures, connected with the practical control, is decreased inside the country, but increased in the places, in the vicinity of the state border. Modern technologies, that enable to improve customs administration and create favorable conditions for doing business, are implemented. Development of the electronic declaration has become the basis for implementation of the technology of the remote issue of goods and was largely supported by the business community. There are more and more Foreign Economic Activity participants, who use this way of declaring. 13 Centers of electronic declaration started to work from the beginning of 2011. It made possible to provide the pass of goods and transport with minimal time spent without the full cycle registration of a goods item, fixed to one registration place.


The near-border support services are being developed. The infrastructure for customs declaration and customs goods control in the places in the vicinity of the state border of the Russian Federation has been created in 30 checkpoints out of 50, where it was considered viable to create customs and logistics terminals. Reorganization of the customs authorities has been continued in the frames of the Concept. 96 customs stations were suppressed, while 43 were created. 5 Customs stations were reorganized in the way of affiliation.


3 sessions of the Russian FCS Committee on the Concept implementation took place in 2011. As the result, 16 suggestions of Foreign Economic Activity participants for creation of customs and logistics terminals were reviewed. 11 projects of customs and logistics terminals were acknowledged as compliant with the Concept and 5 as non-compliant.


It can be concluded that the Concept proves its value, in regard to the goods, transferred across the border by vehicles. Thus, the average time, spent on the customs operations from the moment of entry submission to the release of goods, was decreased from 26 to 12 hours for the goods, imported to Russia by vehicles.


Planned activities and the course of Concept implementation, as well as the information on the improvement of customs authorities structure, are promptly posted on the official website of FCS of the Russian Federation.


Law enforcement activities, including drug smuggling enforcement


More than 3,9 thousand criminal cases were initiated by the Customs Authorities of the Russian Federation during the period of January-October 2011. It is 12,3% more, than for the same period of 2010. The price of the goods and vehicles, transferred illegally across the customs border, was 16,4 bln rubles (8,4 bln rubles for the same period of last year). The sum of the duties unpaid was 611,4 mln rubles (450,5 mln rub for the same period of last year). 82,5 bln rubles in foreign currency was detected as non-returned from foreign countries (75,3 bln rubles for the same period last year).


944 criminal and 103 administrative violation cases were initiated, basing on the facts of drug, psychoactive and drastic substances smuggling during the period of 11 months of 2011. More than 430 kg of drugs, psychoactive and drastic substances, including 121 kg of heroine, 21 kg of cocaine, 174 kg of hashish and more than 37 kg of marihuana was confiscated.


Let us remind you about several high-profile cases of 2011. The Customs of Sebezh initiated a criminal case on the fact of 131 kg hashish smuggling by a Latvia citizen. The drugs were hidden in the floor niches and wheel arches, as well as under the seats of a car. The criminal case was submitted to the investigating authorities. The court sentenced the accused person to 3 years of custody. The Siberian Operational Customs initiated a criminal case in regard to the citizen of Kyrgyzstan on the fact of 65kg heroine smuggling. The drugs were transported in the containers, being apple mockups and hidden among fruit.


Far Eastern Operational Customs initiated a criminal case in connection with smuggle transporting of trepang in a boiled-dried state, weighing 390 kg, by a PRC citizen. The assessed value of the confiscated cargo is more than 22 mln rubles. The Court sentenced the PRC citizen to 1 year 3 months of penal colony settlement. The Customs of Bryansk initiated a criminal case on the fact of illegal transportation by a Ukrainian citizen of foreign currency, in the total of 2 492 994,7 euros (about 100 mln rubles), hidden in the trunk of a UAZ car. The Court inflicted the penalty of 200 thousand rubles to the violator in May 2011.


Customs Authorities initiated more than 60 thousand cases of administrative responsibility along the line of administrative investigations from January to October, 2011. Their scrutiny resulted in 73,6 bln rubles of penalty inflicted


Countermeasures to Corrupt Practices


The absolute majority of corruption nature crimes, committed in the customs sphere, are detected by the departments of Customs Authorities for Сorruption Сountermeasures (the departments of inherent security). This index is currently 92%.


390 criminal cases were initiated, based on the material of the mentioned departments during the period of 11 months of 2011. It’s necessary to mention, that the cases of grave and especially grave crimes, according to Criminal Procedure Legislation, are initiated by Investigating Authority. In particular, 75 criminal cases according to Article 290 of Criminal Code of Russia (“taking bribe”), 50 cases according to Article 285 of Criminal Code of Russia (“abuse of power”), 38 cases according to Article 286 of Criminal Code of Russia (“excess of power”) were initiated by the Investigating authorities, based on the material of the Departments for Corruption Counteraction during the period of 11 months of 2011. 233 criminal cases were initiated in regard of 137 officials for the crimes against the state service interests or committed with abuse of power, including 219 criminal cases of the corruption nature in regard of 122 officials.


Customs officers play a major part in the detection of law violations. Official regulations and instructions for customs officers contain the compulsory requirement to inform chiefs about the cases of bribe taking inducement. Bribe-givers are usually unfair Foreign Economic Activity participants. The head office of the Customs Authorities received 178 such notifications during the period of 2010-2011, and such facts were proved in 80 cases. Criminal cases according to Article 291 of Criminal Code of Russia (“giving bribe”) were initiated in regard of 33 bribe-givers during the period of 11 months of 2011.


Department for Corruption Counteraction was established in the structure of FCS of Russia on 1st August 2011. The measures taken are provided in Long-term plan of the Federal Customs Service for corruption counteraction in Customs Authorities of 2010-2012.


There are also cases, when people who are somehow connected with criminal structures, try to penetrate into Customs Authorities. 13 thousand Service applicants were checked during the period of 9 months of 2011, and 214 applications were rejected.


56 Customs officials and 18 bribe-givers were convicted for crimes, including the crimes of corruption nature (during 11months of 2011). In comparison, 100 Customs officials and 17 bribe-givers were convicted in 2010.


The work of Committees on compliance with the requirements of state officials service behavior and settling down of conflicts of interests was activated. 677 meetings of the Committees took place during the period of 9 months 2011 (267 for the same period of last year). The quantity of revised material increased 5 times as much (1901 items in comparison with 344) and the number of checked officials rose more than 3 times as much (3475 in comparison with 1060).


Service audits are conducted for all the cases of violation of official duties, disciplinary measures are taken to eliminate the causes and conditions that favor such violations. 534 service audits were done during the period of 11 months 2011, caused by the Departments for Corruption Counteraction (the departments of inherent security) during the period of 11 months 2011. As the result, 366 officials were brought to disciplinary responsibility and 6 people were dismissed.


Intellectual Property Protection


Customs Service is constantly improving intellectual property rights protection. About 10 mln items of counterfeit goods were detected by Customs Authorities during the period of 11 months 2011. The objects of violation are mostly clothes, alcohol production and confectionery. 850 cases of administrative violations were initiated by customs authorities during the period of 9 months 2011, including 824 cases, based on Article 14.10 of Administrative Violations Code of the Russian Federation (illegal trademark use) and 26 cases, according to Article 7.12 Part 1 of Administrative Violations Code of the Russian Federation (copyright and allied rights abuse).


The Federal Customs Service keeps the customs register of the intellectual property objects, based on the applications of copyright holders. This register currently contains 2238 objects that belong to Russian and Foreign companies.

FCS of Russia places special emphasis to collaboration with federal agencies of executive power, public and international organizations, and Customs services of foreign countries, as well as with the representatives of copyright holders. Meetings of joint work groups with Rospatent, NP “RusBrand” and other partners are held. The Customs Authorities carry out activities to provide Olympic and Paralympic symbols protection, in the frames of the Agreement in power between FCS of Russia and Steering Committee “Sochi 2014” about the basis of collaboration by organization and holding of the XXII Winter Olympic Games and XI Paralympic Winter Games in Sochi in 2014. More than 31 thousand items in 75 cases were detected by Customs Authorities.


The Project of collaboration in this domain is being implemented with Chief Customs Office of PRC. The collaboration with other foreign Customs Services is ongoing, as well as collaboration along the line with Customs Union and EurAsEC, WTO, World Intellectual Property Organization, Asia-Pacific Economic Cooperation, EU and CIS.


International Customs Collaboration


The formation of Customs Union enforced the collaboration of FCS of Russia with Customs Services of Belarus and Kazakhstan.


In the frames of bilateral cooperation on the territory of CIS, the most actively and dynamically developing contacts were with Ukraine. The Customs Control on the terminal stations, without stop on the state border at night was organized for the comfort of passengers, crossing the Russian-Ukrainian border by trains No. 1/2 “Moscow-Kiev-Moscow”. Russian and Ukrainian Customs Services set up for joint work on customs formalities simplification on the Russian-Ukrainian border during the period of the European Football Championship-2012 in the run up to this event that will be held in Ukraine.


The collaboration of Russian FCS is being developed with the Customs Services of Armenia, Kyrgyzstan, Moldova and Tajikistan. FCS of Russia regularly provides counseling assistance to the Customs Services of Abkhazia and Southern Ossetia on the questions of customs registration and customs control organization, as well as on the improvement of national Legislations.


Collaboration with the Customs Services of non-CIS states is being also gradually developed. One of high priority directions is collaboration with Customs authorities of Asia-Pacific Economic Cooperation states, primarily with China, as well as with other Asia region states, such as India, Mongolia, Vietnam, and the Republic of Korea. FCS of Russia responded to the request for training of Vietnam and Mongolia Customs Services officials on the base of the Russian Customs Academy. From September 2011, Mongolian Customs officers are trained in the RCA, including its affiliate in Vladivostok.


One more promising direction is Latin America states. The Agreement between the Russian Federation Government and the Government of the Peru Republic about collaboration and mutual assistance in customs activities was signed. FCS of Russia signed the Protocol with the National Customs Service of Ecuador about data sharing, characterizing customs price of goods and vehicles, circulating between Russian and the Republic of Ecuador. The collaboration between FCS of Russia and Customs Services of the Republic of Paraguay and Eastern Republic of Uruguay was established.


Collaboration with Customs Services of European states is being carried out in the frames of Russia-EU projects on the bilateral basis. Intensive bilateral contacts with Customs Services of Germany, Latvia, Finland, France, and the Netherlands were carried out in 2011. The Memorandum about high priority directions of collaboration between FCS of Russia and State Customs Office of Finland for 2011-2012 was signed in May.


Customs Collaboration between Russia and USA is aimed to study the American experience in such domains as, customs control for fissionable and radioactive substances, intellectual property rights protection, risk analysis and functioning of border checkpoints. In 2011, the implementation of “Second Protection Line” program, in the frames of which 383 objects of Customs infrastructure of Russia are newly equipped.


FCS of Russia has its representatives in 17 countries: Belarus, Kazakhstan, Kyrgyzstan, Ukraine, Tajikistan, Abkhazia, South Ossetia, Belgium, Brazil, Germany, China, the Republic of Korea, India, Latvia, Turkey, Finland and Japan.