Export supervision procedure is in bad need of improvement

20 september 2017

Experts with the Marketing Analytics Center* have drafted a second report on non-raw materials exports. The new report focuses on the exports supervision of dual-use goods and ways to overcome the potential barriers in this area. The goal of the analysts is to help increase Russia's non-raw materials exports, including, by means of identifying and resolving key problems encountered when conducting foreign business.

The material that went into the report takes into account the opinions of entrepreneurs: exporters, representatives of the state authorities and the expert community that the Marketing Analytics Center held a number of expert meetings with. So what are the main barriers that are holding back exporters and how can the business environment be improved? For a detailed answer see the Report Export Supervision of Dual-Use Goods: Potential Barriers for Exports and Ways to Overcome them.

The report looks at the range of products subject to export supervision, the procedure whereby special permits must be obtained to conduct international business transactions involving the supervised goods and technologies as well as customs supervision procedures used for these categories of goods and technologies. The section on the requirements for international business transactions involving the supervised goods and technologies will probably be of special interest for exporters as it reviews all the types of permits that exist today; how each one is different from all the others, their validity period, the stage agencies that issue each of them, the time they take to review applications and the fees they charge.

As the Marketing Analytics Center was preparing expert meetings, it conducted a series of online surveys of representatives of various industries, including metal production, petrochemical, processing, oil and IT. These allowed the Marketing Analytics Center to identify the key problems that exporters were encountering with using the export supervision procedure. These include the long periods of time it takes to prepare all the necessary documents and the high cost charged by various middlemen; excessive supervision over exports of some types of products; lack of awareness among companies involved in international business transactions of the fact that exports of some dual-use goods are subject to supervision and a number of others.

The authors of the report note that during the discussion representatives of exporters noted the need for additional training of customs service employees in order to eliminate excessive supervision and demands for documentation that is not mandatory.

The report includes an overview of how exports of dual use goods are monitored in other countries and compares the performance of the Russian export supervision system with those of the leading foreign nations. In addition, there is also an overview of the existing international agreements grouped by topic.

Picture from open sources

*The Marketing Analytics Center is a central competence center for the analysis of Russian non-commodity exports and prospects for their growth and diversification. Its main objective is to provide information and analytical support to exporters and to promote the growth of non-commodity and non-energy exports. For companies, the center is a source of relevant and reliable information on global and individual markets, as well as the prospects and barriers for entry into these markets. For the government, this is a center for analysis and forecast of Russian foreign trade development and for formulating recommendations to reduce trade barriers.