The North Chamber of Commerce and Industry (Murmansk Region, Russia) in cooperation with the Finnmark Chamber of Commerce (Kirkenes, Norway)  and Norwegian-Russian Chamber of Commerce have implemented the joint project ”How to make the border-crossing point Storskog/Borisoglebsk competitive compared with other border-crossing points between Finland and Russia”. Official representatives of the Murmansk Customs and Northern Customs District of Norway were participating in the project. The project was implemented with the financial support from  the Barents Secretariat, Finnmark County Municipality and the Government of the Murmansk Region.

During the  project period the North CCI and Finnmark CC has arranged the questionnaires of the export-related companies in Finnmark and Troms Counties, Murmansk Oblast and in the Vyborg District of Leningrad Region with the main task to document the concrete problems experienced by the exporters. Based on the data resulting from the questionnaires some recommendations were made regarding what measures should be taken to address them.

 It was stipulated by the project to analyze how process of  the customs clearance is organized at border-crossing station Borisoglebsk/ Storskog compared with three border-crossing points on the border between Russia and Finland in the area of ​​operations of the Vyborg Customs to identify the most effective.                                                                                                                                                 

In 2008/2009 Finnmark Chamber of Commerce (FCC) and North Chamber of Commerce and Industry (NCCI) carried out a project aiming at  how to simplify and make customs clearance more effective both on the Russian and the Norwegian side at the border-crossing point Borisoglebsk/ Storskog. In the end of the project a number of recommendations was lined up.                                    

As a result of this project, based on experiences and inputs from companies both in Norway and in Russia, the issues of customs clearance became a part of the joint declaration between the two Ministers of Foreign Affairs  of the Russian Federation and Norway, Mr. Lavrov and Mr. Gahr Støre, as well as the subsequent work-plan that was made in order to create favorable legal, trade, economic and other conditions for strengthening the Norwegian-Russian cross-border cooperation, for the period 2011-2015.

As there had been no reports of improving conditions regarding customs clearance at Borisoglebsk/ Storskog from the users of the border-crossing stations, FCC and NCCI launched an extended customs project not limited to documentation of the experiences from the exporting companies but also to make concrete comparisons between Borisoglebsk and other border-crossing stations between Finland and Russia.

The main objective of the project was to identify how to make the border-crossing point Storskog/Borisoglebsk competitive compared with other border-crossing points between Finland and Russia using the best practices.

During implementation of the project other goals raise, such as:

• to make the process of the customs clearance of goods at Borisoglebsk/ Storskog more simplified and more effective

• to improve the level of service at the border-crossing station Borisoglebsk/ Storskog

 

The main tasks that were performed to achieve the project objectives:

• It was found that at border-crossing station Borisoglebsk / Storskog the modern technical equipment and  technologies are used to control the process and to ensure communication between the two customs points

• In April 2012 a seminar regarding ATA Carnet has been arranged in Murmansk with the participation of the Chamber of Commerce and Industry of the Russian Federation, Murmansk Customs, Ministry of Economic Development of the Murmansk Region, Finnmark Chamber of Commerce,  North CCI and representatives of Russian exporting companies.

• A brochure regarding how to apply and use ATA Carnet was prepared and published for Russian and Norwegian companies – participants of foreign economic activity

•  During the projects period a constant work was undertaken to prepare recommendations for the participants of foreign economic activity based on the comparison of the processes of customs clearance of different goods at checkpoints on the border between Russia and Norway, Russia and Finland.

All these activities are intended to make clearance of goods at the border-crossing station  Borisoglebsk/ Storskog more efficient and less time consuming for the exporting companies, and the process of crossing the border should become convenient for all citizens of Russia and Norway. Finally, this will contribute to further growth and increasing of trade between Russia and Norway, and to  transformation of the Murmansk region into attractive for foreign investors and foreign business region.

Based on the information we have gathered and on input from different sources, we presume that we have a good background for giving the following main recommendations regarding the customs services at Borisoglebsk:

  • The fact that only 27 % of the respondents are satisfied with the general service level at Borisoglebsk is a very alarming signal which should be given the highest attention by the leadership of the Murmansk Customs authorities
  • 65 % of the respondents of the border-crossing station are of the opinion that the qualifications of the customs officers should be improved. This is also an important advice to the Murmansk Customs
  • Only 31 % of the respondents  have never/almost never used personal acquaintances and contacts to solve problems. That is a signal that also should be taken very seriously. That means that 69 % at special occasions have had to use personal acquaintances or contacts to solve problems
  • There also seems to be a higher demand at Borisoglebsk for translation of documents issued in English or other foreign language into Russian comparing with the Vyborg district. That is probably also a signal about the need for increasing the general competence of the customs officers
  • It is also quite alarming that 38 % of the respondents  claim that they often experience economic losses or breeches/defaults due to the clearance process at Borisoglebsk. In Vyborg only 15 % of the respondents claim the same. This is another indication of the need to increase the general competence
  • There is also a clear demand for improved information materials, also in English

Thus the recommendations can be summarized with five main points regarding:

  • Improvement of the general competence
  • Improvement of the general service
  • Improvement of the information to the users of the customs services at Borisoglebsk
  • The Norwegian border crossing station at Storskog must also focus on learning by best practice, quality and to improve the information given to the exporters. The situation is similar at the Russian side of the border
  • Improvement of the use of modern technology and infrastructure at Borisoglebsk and Storskog

Resulting from the implementation of the Customs project  the parties deem it necessary to request the Federal Customs Service of Russia to consider closely the following concrete measures:

  • Exporters  consider necessary to give back to the  border-crossing station Borisoglebsk the right to declare goods in accordance with the Nomenclature of goods which was in force before (comparing with existing List/Nomenclature of goods), to undertake urgent measures aiming at reducing time losses for customs clearance of trucks at Borisoglebsk    
  • Amend the Order № 40 dd. 15.01.2013 of the Federal Customs Service of Russia with the provisions to execute the customs clearance of fish of Russian origin delivered by trucks to Russia  across the Russian land border in accordance with the conditions of the above  mentioned Order;
  • Declare pallets on which the goods are imported to Russia as transport packaging without additional declaring them as separate goods;
  • Restrict the customs clearance for importing spare parts only by referring to the catalog number of the equipment and presenting a commitment (with further confirmation) of installing/ replacing them instead of the damaged /out-of-order units

 

  • Issue binding instructions to customs officers at the border-crossing stations to follow strictly (without any broad subjective interpretation) the lists of documents that are required during the procedure of  customs clearance of goods
  • Officials of the Russian customs authorities should make an English translation of the list of required documentation, which is available on the official website of the Federal Customs Service of Russia

To avoid arbitrariness the Russian customs could do, among other measures, the following:

o   To inform on a regular basis, local customs authorities (customs officers) about current practice (including court practice) and interpretations of customs regulations

o   Encourage (pay bonus to) those customs officers, who have received the fewest complaints, and whose decisions have been supported in the court

In order to increase the competence of the customs officers, Russian customs authorities should organize regular trainings for customs officers and meetings with the representatives of business to exchange experience on customs issues

  • The customs officers should be better trained to reduce the time required for determination of the customs value of goods
  • To reduce language problems and to avoid problems related to cultural differences and thus increasing the service level, the Russian customs authorities should among other measures consider the following:

o   Employ and encourage (pay bonus to) officers who know English or other foreign languages

o   Promote the idea that the work of the customs officers is a state service paid for by the tax-payers and therefore, such service should be rendered properly

o   Organize trainings about the service culture (customer-oriented service)

§  As Borisoglebsk is having the status as an international border-crossing station, it should also be able to perform the necessary formalities on customs clearance of heavy transport equipment. We therefore request that the Russian customs will provide Borisoglebsk with the necessary infrastructure, staff and equipment required to perform such functions

§  There should be issued information leaflets in English about  goods which are not allowed for importation to Russia and about goods which need  special  permits  for importation 

§  Finally the Russian and Norwegian custom authorities should continue to organize at least the annual seminar/workshop together aiming to exchange experience and best practice, and focus on learning elements.  Exporters who apply for the border crossing services at Borisoglebsk/Storskog must be invited to this seminar/workshop

§  Considering the fact that from the 1st of January, 2014 a compulsory electronic declaration  is put into force, the information for the Russian Customs must be presented in Russian, because paperwork in Russia is done in the mother language.

                                                                                                  

Murmansk, Russia             

North Chamber of Commerce & Industry

International Department