Friday, August 20, 2010

Russia plans revamp of over-bureaucratic customs service

Russia plans to reform its customs administration after President Dmitry Medvedev admitted that the current flawed system was putting off investors.

Lengthy delays, fluctuating costs and over-bureaucratic procedures were stifling trade, said Medvedev, according to Prime-Tass news agency. Customs officers physically inspect some 44% of shipments moved across Russia’s borders – a process that on average takes five days. This compares with just 3% of shipments physically inspected in the US and Germany, and less than 2% in the UK.

“Expenses related to crossing the border are sometimes unpredictable, and lead to refusal of placing new manufacturing in Russia,” Medvedev added. “These problems also concern domestic manufacturers, including potential exporters of hi-tech products. All this puts us into a very grave environment.” He called for the creation of a “green channel” to speed up the movement of hi-tech goods.

Russia is ranked 120 out of 183 countries in this year’s Ease of Doing Business survey by the World Bank. Its performance in the Trading Across Borders index was even worse, ranking a lowly 162nd. The World Bank found that import and export procedures in Russia for a standard shipment – including document preparation, customs clearance, port handling and inland transport – on average takes 36 days and costs $1,850.

Source: IFW

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