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Trade Facilitation Changes in Russia
In 2005, ninety-five member countries of the World Customs Organization approved in writing the SAFE security frame standards that aim to promote international trade, economic activity and minimize the effect of modern technological challenges to supply chain, including risks imposed by terrorism. Specifically, the SAFE Framework establishes standards that provide supply chain security, integrate and harmonize supply chain management for all modes, enhance local Customs capabilities and functions, strengthen customs/business co-operation and promote seamless movement of goods. To that end Russia has recently begun taking steps that further align their Customs and trade facilitation with the principles of SAFE and are predicted to accelerate customs clearance and reduce corruption.
Electronic Processing through Single Window
The SAFE framework promotes the use of a “single window environment” by member states that streamlines communication between Customs and other agencies and aids in customs clearance. Russia currently utilizes a single window environment, but is implementing processing centers whereby customs agents will process single window customs declarations via a computer rather than physical examination of goods. Additionally, the Russian Federal Customs Service will expand the three-tier shipper classification structure so that shippers in the lowest-tier ranking will experience accelerated customs clearance.
Benefits of Electronic Processing
Aside from speedy customs clearance, placing more agents behind computer screens is expected to significantly reduce corruption that may take place during inspection. Additionally, the Russian Federal Customs Service hopes the change will allow agents to more efficiently track cargo through the Eurasian Economic Union and eliminate customs tax evasion and misclassification of cargo.
Danielle Brazil Hudson, LCB
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Resources:
i The SAFE Framework of Standards, World Customs Organization, http://www.wcoomd.org/~/media/WCO/Public/Global/PDF/Topics/Facilitation/Instruments%20and%20Tools/Tools/Safe%20Package/SAFE_Framework_2012_en.ashx?db=web