1. Wybrich de Haan General Manager VAT Moscow wybrich.dehaan@vatlogistics.nl

2. Logistics in Russia AGENDA Russia is… Logistics market Developments & constraints Customs regulation Incoterms - DDP Russia Q & A Session

3. Russia is......bureaucracy vs market

4. Russia is......a country of extremes

5. Russia is......bureaucracy vs market...a country of extremes flexibility & patience

6. Europe to Russia - Direct trucking - Sea freight combined with inland trucking <1000 km - Rail freight to far locations Logistics market

7. Rail versus Ocean Freight - Asian land connection - Trans Siberian route - Time saver

8. Logistics market Rail versus Ocean Freight - Local charges and check ups - Capacity problem Better service/price level ocean freight

9. Developments & constraints Land bridge Europe and Asia? - Depends on investments - Alternatives

10. Customs regulation - Invoice and packing list - Bill of lading / Way bill - Technical data sheet or brochure - Contract buyer and seller - Certificates & licenses

11. Incoterms - DDP Russia “The seller […] has an obligation to clear the goods […], to pay any duty for both export and import and to carry out all customs formalities.” (Incoterms® 2010)...not in Russia

12. SenderReceiverCustoms Money Goods Only RU legal entities can pay RU customs Logistics company

13. SenderReceiverCustoms Money Goods Logistics company Distributor Receiver on docs = customs responsibility

14. SenderReceiverCustoms Money Goods Logistics company Distributor Money flow = Goods flow

15. SenderReceiverCustoms Money Goods Logistics company Distributor

16. But why DDP? - Receiver has no experience in CC - Policy to buy in local contracts (RUB) - Local stock of customs cleared goods - Clients expect service for guarantee parts

17. Thank you for your attention! Download this presentation and handout: http://www.vatlogistics.nl/en/wca