1. Four Areas of State Customs Committees Activity Effective Human Resources policy Development of customs infrastructure Bringing customs legislation into line with international norms Development and implementation of customs technologies

2. Problems of customs formalities caused by a large number of regulatory documents of the SCC of Russia, Regional Customs and frequent changers in them Current system of customs control and clearance shortcomings Taking decision on goods release –clearance with the higher customs body (Customs Offices, Regional Customs, the SCC of Russia) A number of uncoordinated steps in Customs control strengthening, causing unjustified financial and downtime costs of the foreign trade participants Absence of straight feedback between Customs control and methodology Insufficient development of the customs broker institution Customs bodies are not provided with information technologies and hardware to meet the modern requirements and planned development The current post clearance control (customs audit )procedures do not meet the present-day requirements

3. Trade facilitation using selective application of the forms of customs control Providing efficient customs control of goods crossing the customs border of the Russian Federation Ample collection of customs payments and duties to the budget of the Russian Federation «Triune» task

4. PROJECT OBJECTIVES (а) Adopting Customs standards that facilitate processing of transactions while improving the detection and prevention of contraband; (b) Facilitating international commerce and accession of the Russian federation to the World Trade Organization; (c) Fostering a stronger partnership between Customs and participants of foreign economic activities; (d) Orientation to facilitating legitimate international commerce; (e) Implementing improved automated business processes designed to increase efficiency and reduce opportunities for rent seeking behavior; (f) Modernizing the Information Technology infrastructure of the Customs bodies, and adopting paperless (electronic) filing of declarations and information interaction with the trade community.

5. PHILOSOPHY OF THE ORGANIZATION OF CUSTOMS CONTROL IN THE RUSSIAN FEDERATION Advance information from the customs services of foreign states Border of the Russian Federation Customs control Post-audit (monitoring after release) Release of goods under the declared customs regime Information from enterprises of the customs infrastructure of business associations Association of International Auto Carriers Association of Russian Banks National Assoc. of Customs Brokers Others Ministry of Finance Ministry of Internal Affairs Ministry for Econ. Development Others Information from government and administrative bodies

6. Major Deliverables of the Project Implementation Indicator20062008 Reduce the number of declarations selected for inspection of goods using the risk analysis: - import declarations -export declarations to no more than 23 % to no more than 12 % to no more than 10 % to no more than 8 % Reduce the average time taken for clearance at the border posts 7 % by 7 % by 10 % Reduce the average time taken for major customs clearance of imports 25 % by 25 % by 50 % Reduce the compliance gap measured by the following ratio: value of the EU exports to Russia and value of imports from EU 5 % by 5 % by 10 % Increased enforced compliance in the collection of customs fees to 1,5 % to 3 % (the EU average)