ELECTRONIC CUSTOMS IN DIGITAL ECONOMY V ELECTRONIC CUSTOMS IN DIGITAL ECONOMY V. Bulavin SEPTEMBER 6, 2018 MOSCOW

Convenience Facilitation Efficiency Security Complex Development programme of the fcs of Russia for the period up to 2020 Convenience Facilitation Efficiency Security Electronic transit Auto-Registration of declarations Auto-Clearance of goods Centralized accounting for payments Automated risk analysis Less types of control Less time needed for customs formalities Focus on goods declaration in Centers for electronic declaration Personal «Electronic office» Implementation of Single Window mechanism Single mechanism for administration of customs and tax payments Ensuring effectiveness of customs control Ensuring achievement of target figures for collection of customs payments Traceability of goods movement Development of system for prevention of law offences Strengthening of law enforcement

AUTOMATION OF CUSTOMS PROCEDURES 2009 2012 2014 2015 2016 2017 Single financial account Electronic declaration of goods Remote clearance of goods Auto-release of exported goods Electronic transit Advanced information Auto-registration of export declarations Auto-registration of import declarations Auto-release of imported goods Security deposits in electronic form

Customs organizational reform Centers for electronic declaration 8 regional electronic customs with Centers for electronic declaration 7 Centers for electronic declaration in Baltic, Novorossiysk and Vladivostok customs offices, Central excise customs office, Central energetic customs office, Moscow regional customs office and Kaliningrad regional customs office 1 electronic air customs office in the Moscow aviation zone Enhance management of customs offices Increase efficiency and effectiveness of customs control Ensure comprehensive and fair revenue collection Saint-Petersburg Kaliningrad Reduce costs for traders Moscow Ensure user-friendly environment and conditions for fair competitiveness Nizhniy Novgorod Rostov-on-Don Ekaterinburg Decrease corruption risks Novorossiysk Novosibirsk Mineralnye Vody Vladivostok Rationalize workload, structure, staffing and expenses for customs office maintenance

AUTOMATION OF CUSTOMS PROCEDURES Number of automatically registered declarations Number of automatically released declarations - export - import Target indicators for 2018 of the 2020 Complex Development Programme of the FCS of Russia Export Import Target figures Achieved Share of automatically registered declarations, % 60 73,8 30 29,5 Share of automatically released declarations**, % 40 35,5 25 11,4 * For the period up to August 31, 2018 ** for traders with low risk profile

Customs code of the Eurasian economic union, federal law «on customs regulation» Priority for electronic customs declaration Auto-registration of declarations and auto-release of goods Time for release of goods not more than 4 hours Submitting of supporting documents for goods declaration is not necessary Mechanism for categorization of economic operators within risk management system Further development of advanced information exchange Single Window mechanism New approaches in collection of customs payments Fundamental modernization of AEO programmes

Programme for customs it systems development for the period up to 2020 Modernization of software Hardware equipment of electronic customs offices and Centers for electronic declaration Equipment of communication hubs, establishment of communication channels Ensuring security for IT systems Electricity supply, air-conditioning and fire protection

«Personal office» for traders 32 electronic services 175.000 traders Request for information through «Personal office» Providing of requested information in electronic format

channels for information exchange electronic declaration massages daily electronic declaration Unified Automated Information System of Customs Authorities (UAIS) data bases 67 81 software solutions Unified Automated Information System of Customs Authorities 2000 30 mln 100% interaction mode online UAIS – federal state information system (Electronic passport №FS – 77110152 from October 7th, 2011)

 ? ! GOODS RELEASE The subject-oriented risk management system Control after release of goods More than 8000 traders have low risk profile Primary application of documentary control Documentary and actual control before the release of goods  GOODS RELEASE ? ! Low risk profile Medium risk profile High risk profile 10 10

Cooperation with the FTS of Russia AREAS of cooperation with the federal tax service of the Russian federation (FTS of Russia) Cooperation with the FTS of Russia 1 2 3 Information exchange between FTS of Russia and FCS of Russia in respect of operators under control Joint control activities Development of a national system for goods traceability

Results of verification activities of customs authorities conducted in cooperation with tax authorities 6 months of 2017 6 months of 2018 Dynamics - 15% Number of verification activities 434 367 74% + Additional payments Charged (million rubles) 1 646 2 867 44% + 790 1 136 - 29% Instituted proceedings for administrative offences Instituted criminal proceedings 686 488 - 38% 56 35

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