Advisory Council Agenda: Modification in Conditions of TIR Procedure Application from 14 August, 2013

The Customs Policy Advisory Council affiliated with the North-West Customs Department (NWCD) held a session. The meeting was organized in the NWCD office and was attended by NWCD and Customs Authorities Heads, as well as foreign trade participants of the North-West Federal District.

The main issue that was discussed at the meeting was the alternation of the conditions of placement of goods under the customs transit procedure with the use of TIR Carnet, starting from August 14, 2013.

During the meeting it was emphasized that the Customs Authorities were informing foreign traders, members of The Association of International Road Transport Carriers (ASMAP), about upcoming changes that had been introduced by the Federal Customs Service because of repeated cases of non-delivery of goods that are transported with the use of TIR Carnet and the non-fulfilment of the ASMAP liability on customs duties payment.

In the letter № 01-11/28474 of the Federal Customs Service of Russia dated July 4, 2013 «About International transportation via use of TIR Carnets», it is stated that these measures have been taken subsequent to the fact that the problem of the non-fulfilment of obligations of the International Road Carriers Association to pay customs duties to the Customs Authorities still remains unsolved. As of June 1, 2013, the amount of this debt exceeds 20 billion roubles, i.e. 41% of the total amount of foreign traders’ debt to the Customs Authorities.

As it was noted at the meeting, the situation in the North-West region is even more serious. The amount of ASMAP debt reaches about 7 billion roubles and constitutes 57%. In comparison, the debt with regard to undelivered transit goods registered without TIR Carnet is only 1.73%.

It was emphasized during the meeting that the submission of the goods for customs transit procedures with the use of TIR Carnets will be conducted with the application of measures that are stipulated in Paragraph 1 of Article 217 of the Customs Code of the Customs Union. It shall be done in order to ensure compliance with the Customs Legislation of the Customs Union and to enable full and timely payments of customs fees to the Federal Budget from August 14, 2013.

In order to prevent formation of long waiting lines of vehicles in front of checkpoints, as well as to ensure full and timely payments of customs fees by carriers’ representatives to the Federal Budget, the owners of temporary storage warehouses were proposed to use other ways, such as suretyship, customs escort, and others, to provide compliance with the customs transit procedure.

The procedure of application of the aforementioned measures is governed by the following regulations: Order № 917 of the Federal Customs Service dated 25 July, 2008 "On the application by the Customs Authorities of Surety Agreements that are concluded within the framework of General Agreements between the Russian Federal Customs Service and sureties as a measure to ensure execution of the Customs Legislation of the Russian Federation for domestic and international transit" at those customs checkpoints, where customs representatives work with Addenda to Surety Agreements.

As one of the means, it is required to use Addenda to Surety Agreement in accordance with Order No. 245 of the Federal Customs Service, dated February 10, 2012 "On enactment of the Operational Procedure for customs officials if dealing with Sureties on fulfillment of obligations for several individuals by customs transit of goods".

Besides, it is recommended to apply the Order № 1179 of the Federal Customs Service of Russia dated 15 June, 2012 “On enactment of the Operational Procedure for customs officials when using customs duties and taxes, which are paid during the preliminary customs declaration of goods, as a means to provide payments of customs duties and taxes for the goods transportation”, and the Order No. 2351, dated November 17, 2011" On enactment of the Procedure of carrying out of customs operations when goods are transported by vehicles from the place of arrival to the Customs Union territory to temporary storage warehouses, which are located in the immediate vicinity of the Russian Federation State Border checkpoints”.

The participants of the session paid a special attention to the fact that Security Certificates for payment of customs fees and taxes were applied even earlier by those foreign traders who did not accept the TIR Carnet procedure.

During the meeting it was told that the letter of the Federal Customs Service of Russia «About International transportation via use of TIR Carnets» would be forwarded to the Customs Authorities of neighboring countries in order to coordinate joint actions, as it had already been done for the Customs Authorities of Finland and Estonia.