Report of the Head of Analytical Department V.V. Ivin

1. Report of the Head of Analytical Department V.V. Ivin “On the Main Goals of the Customs Bodies of the Russian Federation in 2010 in Conditions of Formation of the Customs Union of the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation”

2. 1 STAGES OF THE CUSTOMS UNION FORMATION Introduction of the unified customs and tariff regulation and non-tariff regulation 01.01.2010 Testing of the mechanism of accepting and distributing of import customs duties and excise taxes 01.04.2010 Formation of the unified customs territory of the Customs Union of the Republic of Belarus, Republic of Kazakhstan and the Russian Federation Entrance into power of the Customs Code of the Customs Union of the Republic of Belarus, Republic of Kazakhstan and the Russian Federation 01.07.2010 Entrance into power of the mechanism of accepting and distributing of import customs duties and excise taxes Cancellation of the customs procedures related to the goods originating from the third countries and released for free circulation on the territory of Belarus, Kazakhstan and Russia transported within the customs territory of these countries

3. 2 STAGES OF ENTERING INTO POWER OF THE CUSTOMS CODE OF THE CUSTOMS UNION Approval of the Agreement on the Customs Code of the Customs Union November 27, 2009 Approval by the Commission of the Customs Union of the draft protocol on introduction of changes to the Agreement on the Customs Code of the Customs Union February 26, 2010 Handling of necessary state procedures required for approval of the draft protocol on introduction of changes to the Agreement on the Customs Code of the Customs Union till April 10, 2010 Signing of the Protocol on introduction of changes to the Agreement on the Customs Code of the Customs Union April 2010 Handling of ratification procedures required for entrance into power of the Agreement on the Customs Code of the Customs Union and the Protocol on introduction of changes to the Agreement on the Customs Code of the Customs Union May 2010 Decision of the Inter-Country Council of the Eurasian Economic Commonwealth (EvrAzES) on entering into power of the Agreement on the Customs Code of the Customs Union and the Protocol on introduction of changes to the Agreement on the Customs Code of the Customs Union till June 1, 2010

4. 3 MEASURES FOR ENTERING INTO POWER OF THE CUSTOMS CODE OF THE CUSTOMS UNION Development of 16 international agreements stipulated by the Customs Code of the Customs Union till 25.03.2010 Russian Federation is the main developer of 11 international agreements FCS of Russia is the main developer of 8 international agreements FCS of Russia additionally initiates development of 2 international agreements Development of 17 draft decisions of the Commission of the Customs Union stipulated by the Customs Code of the Customs Union till 25.03.2010 FCS of Russia is the main developer of 10 draft decisions FCS of Russia additionally initiates the development of 1 draft decision of the Commission of the Customs Union

5. 4 INNOVATIONS IN THE CUSTOMS CODE OF THE CUSTOMS UNION • 1. Concept changes: • customs broker is replaced with customs representative; • containers are considered to be a transportation vehicle; • a new concept of “express-cargo” is introduced; • such concepts as “free circulation”, “status of goods and transportation vehicles for customs purposes”, “customs clearance” are excluded. • 2. Introduction of new forms of the customs control: • records of goods under the customs control; • control of the systems of record of goods and reporting; • customs check (at the office and in the field) instead of the customs revision. • 3. New regulations of the goods detention are introduced. • 4. Aural and implied forms of declaration are excluded. • 5. List of documents required for declaration of goods placed under the export customs procedures is reduced. • 6. The Commission of the Customs Union determined the above-nation risk areas.

6. 5 INNOVATIONS OF THE CUSTOMS CODE OF THE CUSTOMS UNION IN REGARDS TO THE TERMS AND DURATION • Terms are prolonged for: • payment of the customs duties and taxes from 15 days to 4 months; • post-control from 1 to 3 years; • demonstration of goods in case of preliminary declaration from 15 to 30 days; • processing of goods on the customs territory from 2 to 3 years; • placement under the customs procedure of re-export of goods earlier placed under the procedure of release for domestic use from 6 months to 1 year. • Terms are shortened for: • release of goods from 3 to 2 days; • release of exported goods not subject to customs duties to 4 hours; • registration of the transit declaration from 2 to 1 hour. Terms are established for: • organization of the customs support within 24 hours from the moment the decision was made; • registration or rejection of the declaration registration – no longer than 2 hours from the moment of the declaration acceptance; • handling of operations of cargo carrier in the place of arrival/shipment – 3 hours from the moment of the goods demonstration; • parking of transportation vehicles in the locations of transit of goods: automobile, railway, air transport – 3 hours, water transport - hours.

7. 6 INNOVATIONS OF THE CUSTOMS CODE OF THE CUSTOMS UNION. TRANSPORTATION OF GOODS • Abolishment of the procedure of the domestic customs transit. • Placement of goods transported on the customs territory including those transported from one domestic customs body to another domestic customs body under the regime (procedure) of the customs transit. • 2. Transportation from the customs border to the immediate location of the receiving side. • Non-usage of the transit procedure in relation to the cargo carriers including customs cargo carriers on the territory of each country-member of the Customs Union. • 3. Release of the railway cargo carrier from the allocation of funds as a guarantee of the successful cargo delivery. • 4.Simultaneous placement of goods under two customs procedures – customs transit and re-export (in-case of the obligation to re-export the goods) or the customs transit and export (in cases determined by the Commission of the Customs Union).

8. INNOVATIONS OF THE CUSTOMS CODE OF THE CUSTOMS UNION. MAINTENACE OF THE REGISTER 7 1. Introduction of the national register of the objects of the intellectual property and a unified customs register of such objects (additionally to the national registers) is stipulated. 2. Registers of entities acting in the customs-related area : - are maintained by the customs bodies of each country-member of the Customs Union; - Commission of the Customs Union forms unified registers based on the national registers. 3. A possibility for suspension and resumption of activity of entities working in the customs-related area is stipulated. 4. An institution of authorized economic operator is introduced. Instead of “special simplified procedures” additional simplifications are stipulated for this institution: release of goods prior to delivery of the customs declaration with payments at the moment of the declaration delivery; transit of goods without the allocation of funds guaranteeing the payment of the customs duties. The condition for receiving of the status of the authorized economic operator is the allocation of guarantees in the amount of 1 million Euros or 150,000 Euros if the entity complies with the criteria established by the Commission of the Customs Union.