European Commission / Taxation and Customs Union 4/25/2020

Pilot project on EU-Russia exchanges of advance customs information

By Marko Lätti, European Commission, Directorate-General of Taxation and Customs Union 25 June 2009

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European Commission / Taxation and Customs Union

Context: traffic at the EU-Russian border

• Problem: congestion at the EU-Russian border • Long queues of lorries, particularly in Finland, Estonia, Latvia • Negative effects on trade flows, environment • Discussions in EU-Russia Summits since 2006, high-level agreement on need for action • Result: approval of a joint border congestion strategy in April 2007 4/25/2020

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European Commission / Taxation and Customs Union

EU-Russia strategy on border congestion

• Strategy based on three parallel priorities for action: - reform of Russian customs/border procedures - exchanges of advance information, pilot project - infrastructure • All three elements should be implemented simultaneously • Strategy agreed by the EU-Russia Customs Sub-Committee 4/25/2020

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European Commission / Taxation and Customs Union

Implementation of the strategy

• Working Group: Commission (DG TAXUD), Federal Customs Service, EU Member States on a voluntary basis: 13 at this moment (AT, BE, CZ, DE, EE, FI, HU, IT, LT, LV, PL, SK, SV) • Working Group in charge of follow-up and monitoring of strategy implementation • Quarterly meetings, alternately Brussels / Moscow 4/25/2020

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European Commission / Taxation and Customs Union

Priority 1: Russian reforms

• Law 266 of 30.12.2006, implementation underway • Reduction in number of border agencies • Two agencies: Customs, Border Guards • Other initiatives: border clearance concept, containers • Long-term process 4/25/2020

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European Commission / Taxation and Customs Union

Priority 2: Information exchanges

• Pilot project implemented as of 1 January 2009 • Technical implementation successful, approximately 3.000 messages/day, 120.000 messages as of 31.05.09

• Nine Member States sending messages today, the rest from July 2009 • Contents of message: transit information (NCTS/TIR) • Message sent when TIR movement created in participating Member State 4/25/2020

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European Commission / Taxation and Customs Union

Priority 2: Information exchanges

• Message sent via SPEED platform by Member State • SPEED applies necessary filters and forwards to Russian Customs headquarters • Risk analysis, message transmitted to border-crossing point • Quicker procedure if information sent in advance • Implementation still in early phase, reduced trade 4/25/2020

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European Commission / Taxation and Customs Union

Priority 3: Infrastructure

• Useful discussions on respective plans, priorities • In the recent past EU-financed projects on Russia’s border with Finland, Lithuania, Poland • Room for improvement in infrastructure • Not main obstacle to smooth EU-Russia trade flows 4/25/2020

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European Commission / Taxation and Customs Union

Current situation / the way ahead

• Continue to work on parellel implementation of the three priorities • Main challenge: slow pace of Russian reforms • Current crisis also represents an opportunity • Meetings of the Working Group, Customs Sub Committee • Evaluation of results, decision on follow-up 4/25/2020

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