The mechanism for removing regulatory barriers will be tested in pilot projects

19 december 2018

An exhaustive list of mandatory requirements controlled through state inspection and supervision as well as organizations certification procedure are planned to be elaborated as part of the pilot projects implementation.

"While designing a sustainable economic growth roadmap, we've chosen 4 sectors of the economy out of 9 where the regulatory burden most severely limits business development. These are the hospitality industry, agricultural sector, instrument engineering, medical equipment manufacturing and pharmaceuticals. For each of the sectors, we plan to launch pilot projects to abolish excessive requirements with reference to territories," explained Anastasia Alekhnovich, Head of the Expert Center of the Presidential Commissioner for the Entrepreneurs' Rights, as she opened a meeting of the subgroup for improving the competitiveness of Russian jurisdiction.

To reduce the redundant requirements, an alternative mechanism will be developed based on the form of economic activity rather than on the type of control and supervision, explained Nikita Medlev, Lead lawyer at the Economic Growth Institute.

"Pilot projects will be implemented in the milk production industry, in crop raising, winemaking and pharmacology.  Full  technological cycles based on the "from field to counter" principle will be formed. Each stage of the technological cycle will have as a standards the best samples of foreign regulation - requirements and methods for monitoring and supervision activities, checklists, guidelines," Medlev added.

The authors of the project plan to calculate the business costs of meeting each mandatory requirement that is currently in force, and then identify excessive requirements by comparing them with the best examples of foreign regulation.

The second focus of pilot projects is certification which is one of the key challenges to exports today, experts said. "Certificates issued by accredited bodies do not always indicate the quality and safety of products, the problem of laboratories and certification centers that do not carry out the necessary research and testing has not been resolved," said Leonid Anuchin, Advisor to the Presidential Commissioner for the Entrepreneurs' Rights.

According to him in order to level the situation it is necessary to proceed to turning the laboratories and certification centers of state companies into "national leaders" and later recognize them as international centers of certification and research. It is also necessary to authorize Russian laboratories through foreign countries certification systems, to establish diplomatic support for export-oriented companies from Russian trade missions and the Ministry of Foreign Affairs. In addition, as part of the pilot project, it is planned to prepare instructions for entrepreneurs on the procedure for undergoing laboratory control and certification of products in foreign countries and harmonize the existing Russian technical regulation with the international one.

However, the elaboration of a standardization system should not harm the interests of the domestic market, highlighted Andrei Lotsmanov, First Deputy Chairman of the Technical Regulation, Standardization and Conformity Assessment Committee of the Russian Union of Industrialists and Entrepreneurs. "Standardization and conformity assessment are two-edged weapons. On the one hand, this is how we help to bring products to market, on the other hand, we protect the national market. This is a subtle, but powerful tool to support business, but also protect the market from counterfeit," Lotsmanov said.

Leveling redundant requirements and harmonization of the certification system should concern both traditional sectors of the economy, and focus on new, fast-growing markets, added Yuri Simachev, HSE Economic Policy Director.

"Any exporter practices on the domestic market before entering the world market.  And he'd better practise on normal standards that are compatible with international ones. The current system does not provide quality, but still creates administrative barriers. Economic sectors issues are matters of priority for us, and we will not have a roadmap until we fully address them. And the quality of life of the population depends on this among other things," Alekhnovich summed up.