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N on-governmental environment external economic activity Areas for improvement

Explore challenges faced by NIPK Electron Co. in Russia's customs system. Learn about areas for improvement and suggestions to streamline import/export processes, reducing delays and costs, to better integrate into the global economy.

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N on-governmental environment external economic activity Areas for improvement

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  1. Non-governmental environment external economic activity Areas for improvement Alexander Elinson, CEO NIPK Electron Co., St.Petersburg

  2. Russia in Global Economy • Russia and Globalization • Cooperation with the World market • Direction change of product flow • Toughening competitive environment • Integration into the World Economy • Internal Market reform Customs union • Absence of trade barriers • Reduction of customs duty costs • Optimization of customs clearance procedure • Tax-free transportation of locally manufactured and imported goods

  3. Information on NIPK ElectronCo. • Innovative activity: more than 20 years • Number of employees: 600 people • Research department employees: 135 people • Manufacturing: 1700 pcs/year • Market share in Russia 28% • Salesin over 50 RF regions • Supplier within the National Projects “Health” and “Modernization” • Exportto over 30 countries around the world • The world’s second manufacturer for range of products

  4. Product line of NIPK Electron Co. Radiography/Radioscopy Interventional surgery Computed tomography* SPECT Digital imaging systems Information systems & SW * Created within the framework of Philips-Electron full-cycle innovative partnership

  5. Customs legislation in Russia Customs union legislation ! Incomplete fulfillment of current legislation requirements by Federal customs Federal Law «About customs regulation in RF»

  6. Examples from NIPK Electron Co. experience Taxation Supplementary requirements for the VAT concessional taxation for medical equipment components • Customs clearance Significantly delayed customs clearance while crossing the border, excessive documentary demands: • Difficult declaration procedure • Excessive customs control procedure • Export control time– up to 1,5 months • Repeated export control at shipping the same product • Customs requirements uniformity are not adhered • Significant delays at spare parts and components shipping for equipment repairs

  7. Examples from NIPK Electron Co. experience ICTInefficient procedures of the goods electronic declaration system Problem: The e-customs system fails to specify automatically a registration number of customs declaration Impact to business: Significant delay of customs clearance procedure !

  8. Close cooperation of the state and business • Areas for improvement • Customs operations and procedures improvement: • simpler - faster - transparent - cheaper • Increase of customs control efficiency • Modern IT technologies application • Shift of customs control focus to post-production stage Mission Russian investment climate improvement and following incoming investment flow rise and life level growth жизни Objective Improvement of import/export procedures in terms of time consumption, cost efficiency and complexity

  9. Roadmap Customs administration improvement Activities • Reduction of customs control period during declaration and customs clearance procedure • Customs control form and methods Improvement • Development of institute of customs representatives (i.e. customs brokers) • Expansion of easement list for authorized economic operator • Motivation conditions development for customs officers motivation • Development of proposals about change of foreign economic activity participant’s responsibility for customs administrative violations Reduction of documents quantity for customs clearance procedure Import Export Reduction of customs control period during declaration and customs clearance procedure Import Export Documents preparation costs decrease for customs declaring and clearance procedure Import Export current figures trend forecast target figures *The rating is actual for the beginning of 2012 The source: World Bank Group, BCG

  10. THANK YOU FOR YOUR ATTENTION

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