New Customs Code in Russia

Introduction

The draft Customs Code (the "draft") has been passed by the Upper House and is due for signature by Putin in the near future (a date has not yet been specified). The draft is intended to replace the existing Customs Code (which dates back to 1993) and aims to:

• develop customs procedures according to WTO standards;
• make regulation of foreign trade easier - foreign trade is currently regulated by more than 2,300 subordinate acts of the State Customs Committee;
• ensure that the Customs Code complies with the current customs legislation of the Russian Federation.

Main provisions

1. The draft more specifically defines the basis, procedures and forms of the various customs control bodies, theoretically giving the parties to foreign trade more opportunity to protect their rights.

2. The new Customs Code regulates customs activities only. Thus, violations of customs procedures will remain subject to the Administrative Code only and customs crimes to the Criminal Code.

3. One of the principal issues addressed by the Code is the creation of a practical system for customs procedures in place of the current system with its inherent difficulties, thereby simplifying and accelerating the customs process. Thus, the draft defines customs payments (including fines) in detail and identifies those responsible for collecting them.

4. The time that the goods declaration process should take has been reduced from ten days to three days.

5. The draft repeals the licenses for so-called “customs-associated activities” such as opening duty-free shops and opening warehouses for the storage of goods. At present, such activities are regulated by the State Customs Committee.

6. The Code also regulates, in greater detail than at present, the relationship between the State Customs Committee and customs brokers and other expert organisations.

7. Finally, the draft allows free competition in these so-called “customs-associated activities” enabling independent parties to become involved in them.

In conclusion, the draft is intended to simplify the customs process, reduces customs fees and accelerate most of the customs procedures.