The staff of the NO “Fund for the Development of Economics and Direct Investments of the Chukotka Autonomous Region” took part in the meeting of the Consultative Council on Work with Participants of Foreign Economic Activities under the Far Eastern Customs Administration in the mode of videoconference

September 27, 2016 in Vladivostok a meeting of the Consultative Council on work with participants of foreign economic activities at the Far Eastern Technical University was held. Olga Plotnikova, Director of the Fund for Development of Economics and Direct Investments of the Chukotka Autonomous Region, spoke about the results and expectations of the meeting.

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“The expectations of the Chukotka Development Fund from the meeting of the Consultative Council are in the sphere of searching for solutions to the applicability of customs privileges for investors realizing their projects in the difficult conditions of the Arctic and the Far North. In preparation for the meeting, the Foundation carried out preliminary work individually with each investor in the territory of advanced development “Beringovsky” in order to identify the bottlenecks in the legislation formed during the implementation of the mechanisms of the free customs zone within the Chukotka Autonomous Region”, Olga Plotnikova commented.

The meeting of the Advisory Council held with the participation of management of the Far Eastern Customs Administration, including the first deputy and deputy head of Customs of economic activities, the largest participants of foreign trade in the Far East, residents of the territories of priority development and the territory of the free port of Vladivostok, with the participation of potential investors, as well as representatives of regional mass media (television, radio, news agencies, online publications and print publications).

On the first issue of the agenda on the implementation of federal laws of July 13, 2015 №212-ФЗ “On the free port of Vladivostok” of December 29, 2014 № 473-FZ “On the territories of advanced social and economic development in the Russian Federation”, incl. On the issues of application of the customs procedure of the free customs zone (STZ), the presenters heard a report by Svetlana Aleksandrovna Utyasheva, deputy director of the Department for Priority Development Area (PDA) and Infrastructure of the Ministry of the Russian Federation.

The second and most significant speaker for residents and potential investors of the Bering Sea and free port of Vladivostok in the part of the Pevek city district was Lyudmila Pulina, Deputy Director of the Development Department for Advanced Development Territories and the Free Port of Vladivostok, JSC Far East Development Corporation. The main theme of her report identified problem issues for investors implementing their projects in the Arctic and the Far North. Severe natural and climatic conditions, characterized by extremely low temperatures, unstable weather conditions, strong winds, geographically distant and local location of settlements or industrial facilities – all these factors do not allow to fulfill the necessary volume of requirements of the customs legislation on the arrangement of customs control zones. And non-compliance with the norms of the law, in turn, prevents residents from receiving customs preferences. A number of requirements within the Arctic and the Far North are not simply not technically feasible, but excessive and ineffective in territories located outside of civilization, for example, fencing customs control zones for coal-producing or gold companies. For such territories, it is necessary to work out individual requirements for the equipment and arrangement of free customs zones and customs control zones, adapted to the real operating conditions. A plan of work aimed at developing proposals for amendments to the legislation in the form of a separate item for foreign economic entities located in the Arctic and the Far North is outlined. Ms. Pulina emphasized the need for detailed study of the justification of the initiated changes with the aim of achieving success in the difficult task set. At the same time, simplification of the requirements for arrangement should not reduce the level of customs control in the FCZ. Residents of PDA Beringovsky supported a promising undertaking. In the course of the dialogue with the colleagues of the customs administration, Ms. Pulina also announced the need to remove the excessive regis- tration currently applied to traders in the form of compulsory application of the customs transit procedure for goods from the point of other storage in the territory, for example, the seaport to the place of operation by residents in the territory of the STZ. This mechanism is obligatory for today even if the participants of foreign trade activities send customs declarations to customs authorities.

Reports were also made by the staff of the Far Eastern Customs Administration. Including First Deputy Head of the Far Eastern Customs Administration Sergey Viktorovich Fedorov spoke about the positive experience in the territory of the Far East of implementing mechanisms of the free customs zone. So, one customs checkpoint, six customs and border control points of the sea type, fourteen checkpoints on the territory of the free port of Vladivostok for cars, trucks and individuals were organized. Gleb Aleksandrovich Kicha, Head of the Customs Control Service of the Far Eastern Customs Administration, informed the participants about the details of the requirements for the organization of customs control points and the need to equip them not only with checkpoints but also with equipment designed for weighing vehicles, as well as, among other things, car signs on vehicles in all weather conditions. Sergei Valerievich Pankratov in his report spoke about the planned changes in the customs legislation in the near future, incl. On the draft legislative acts, which are at the stage of discussion and consideration. For example, a change is planned regarding the application of the norms of customs legislation in the coastal waters. We also discussed some features of the withdrawal of the STZ status. For example, the withdrawal of the STZ status in respect of real estate can only be applied at the same time as the termination of the status of the PDA resident.

The second item on the agenda of the meeting of the Consultative Council on Work with Participants in Foreign Economic Affairs of the DVTU touched upon the implementation of new information customs technologies in the Far Eastern Federal District. The report of Oksana Nikolayevna Dolgikh, the head of the department for the introduction of advanced customs technologies for the customs control service of the Far Eastern Customs Administration, introduced the participants to the meeting with innovations. So, now there is an opportunity of remote examination of the imported goods with application of new software complexes. Electronic digital signature functions are available today to all participants of foreign trade activities and are low-cost both financially and in time. In the near future, automated accounting will be introduced for all participants in foreign economic activity of the territories of priority development and the free port of Vladivostok. In the long term, such accounting will replace existing requirements for the development of customs control zones and significantly minimize the costs of investors directed to meet the requirements of regulatory authorities. These changes are planned to apply to the territories of port and logistics sites. For today, they pass the coordination of the Ministry of Justice and the Ministry of Finance.

In the final part of the meeting, special attention was paid to the issues of the residents of the PDA and the free port of Vladivostok to the representatives of the customs regulatory bodies that monitor the implementation of legislation and the application of the benefits of customs legislation. Residents proposed to refine the mechanism of individual allowances for the arrangement of the STZ in terms of a one-time opportunity for its use. At the time of application of repeated imports for goods or equipment organized by the FCZ or vehicles, individual measures of preferential treatment for today are canceled, which is not relevant.

Summing up the results of the meeting, the colleagues of the customs administration discussed the possibility of navigation on regulatory documents of the Customs legislation, preferential procedures for the application of certain norms, the availability of visualized material in free Internet access, incl. On the website of the Far Eastern Customs Administration and the Federal Customs Service of the Russian Federation. In addition, there is an urgent need for additional training by customs officials for residents of the PDA and the free port of Vladivostok and the possibility of holding it for interested persons through VCS in the short term.

Fund87, 28.09.2016