Businesses claim customs regulations excessive and non-transparent

1 august 2019

Experts and business community held a discussion on customs regulations during the meeting of the thematic subgroup of the Interdepartmental Work Group on elimination of systemic problems that hinder the development of the non-resource sector of economy. The meeting took place at the Analytical Center.

According to the public representative of the person in charge of matters related to the protection of entrepreneurs' rights with regards to customs, Vitaliy Survillo, the main problem that businesses have with the existing customs regulations is the excessive number of risk profiles–over 50 thousand, and the lack of control over their application. Experts believe that such policy does nothing to combat the legal vulnerability of the members of foreign economic activity to dishonest use of risk management system on behalf of the customs authorities.

Business community suggests that cost-related risk profiles are separated into a dedicated group and that a more modern control procedure is established for such risks. "Given the digitalization of the Federal Tax Service, the system can be made more transparent for the members of foreign economic activity. It has to ensure that vehicles and products are not detained at customs for several days which has a negative effect on business operations", – said Anastasia Alekhnovich, the Head of the Expert Center of the Authorized Representative of the Russian President for the Protection of the Rights of Entrepreneurs.

Entrepreneurs also believe that the policy which allows customs authorities to change the customs fees and introduce additional control procedures is unlawful and causes businesses to lose large sums of money.

Members of the round table also pointed out that companies have to deal with unreasonable price levels set by temporary storage facilities, including storage of goods that are retained due to administrative infractions. Another unjustified practice is that customs authorities charge the disposal fee on vehicles that are brought into Russia temporarily.

The Interdepartmental Work Group is holding a series of sessions at the instruction of the Russian President to look into the issues contained in the registry of systemic problems of Russian business.