The 2016: Customs and Treasury

The 2016: Customs and Treasury

Moscow. 22 Dec. This year marked the most ambitious reforms of the Russian customs authorities for more than a decade. And all this occurred against a background of continuing decline in budget revenues administered by the customs authorities.

At the beginning of the year, the Federal customs service went under the wing of the Ministry of Finance and began to integrate with the tax. Then followed the loud firing seemingly unsinkable Andrei Belyaninov, in a biography that was not only children’s role in the popular movie, but more solid lines of service in the GDR in the 1980s, and then joint work with Sergey Chemezov in the “Rosoboronexport”.

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Along with “revolutionary” steps were made a number of systemic as well as point measures, as in the first half, when Belyaninova and after when lead custom started by his successor Vladimir Bulavin, in the past also the security officer. Main question: will it be possible to restore enumeration to the Treasury in customs duties, which have traditionally accounted for about half of budget revenues? With magnitude more than 7 trillion rubles by the end of 2014 this year they will probably drop to a much more modest 4.4 trillion rubles.

The integration of FNS and FCS

Integration of the FCS and the Federal tax service under the Ministry of Finance will reduce the number of violations of economic, Belyaninov said at the end of January. “It seems to me that the integration of our information systems, primarily, will allow you to do end-to-end analysis end-to-end verification from the time, for example, the arrival of imported goods to Russia before the sale all this is retail,” he said.

The official noted that there was a gap between the moments when the goods have received customs clearance and when he was in the wholesale and retail network. As a result, according to Belyaninov, “break down the invoices through one-day firms, there is a change in the cost, there is a change of the country of origin.” End-to-end control, in his opinion, would allow to avoid many violations.

A few days before that, the Kremlin website reported that the Federal customs service and Federal service for alcohol market regulation is administered by the Ministry of Finance. Still both agencies are subordinated to the government directly. In addition to the two new accountable authorities in charge of the Ministry of Finance was already on and the Federal Treasury.

Business in anger

Closer to spring went and specific actions that could not be troubled by the business. FCS, which is always complained about the difficulties, but never disappointed the authorities in the task of annual revenues to the budget, often simply “twisting the screws”, undertook the solution of the problem in new ways.

In mid-February, the Agency sent out a teletype to chiefs of customs, and similar to it in content order, on 16 February, signed Belyaninov. Formally, these documents did not make any changes to the regulation, but it significantly changed the actual situation at customs. The order was given a number of instructions aimed at increasing the efficiency of customs control, prevention of violations of the established procedure when adopting decisions on customs value of imported goods, providing a uniform approach when implementing customs control and increased personal responsibility.

“It’s hard to imagine how the customs authorities after the recent staff reductions will be able to analyze each customs Declaration price is lower than adjusted import in the Russian Federation, because such declarations are a huge number. This clearly will lead to a huge series of directions in the functional departments of the customs, and so today, decisions are made for a long time”, – said the employee of the Federal customs representative.

“From experience we can predict that without payment on account of customs security covering the difference in the payments, release of goods for free circulation will not be made. Not all shops can afford to freeze huge amounts in the accounts of the customs for a long time”, – said the Agency interlocutor. The discontent of those who earns on customs operations, can be explained by direct personal interest, but soon the issue was raised already at the highest level.

“Now affects a very interesting situation, on which we four Union (RSPP, CCI, OPORA and Delovaya Rossiya) is going to write a letter to the President”, – said the owner “Severstal” Alexey Mordashov, speaking in April at the public Council of the Federal customs service.

“The situation that is associated with the mass complaints of traders at a sharp aggravation of the situation due to the fact that the custom has become to question the customs value of all goods which suppress the border”, – said the businessman.

However, the head of the FCS reported that the effect of measures on strengthening of control of customs value of imported goods may have already exceeded 30 billion rubles. “Now they say that our unified approach across the country have caused damage to some segment of the business. Let’s see who complained. Complain, as a rule, more of all those to whom more all questions in this part,” Belyaninov said in an interview “Kommersant”. Imported such traders goods, according to the former head of the FCS, although it’s hard to call smuggling in its pure form, but we are talking about the “border situation”.

In June, the Agency said, and all that tension about tightening control over customs value of sleep. “We meet (with the business) is constantly on this occasion, the tension fell. Our colleagues in foreign economic activity saw anything in excess of the legal field we do not require. Understand what you need to care about the content of the budget that was dictated by our order,” – said Belyaninov on the sidelines of the St. Petersburg international economic forum.

Two views

The head of the FCS, using “punitive” measures at customs, could not too apprehensive about the nervous reaction of big business and his complaints to the President: Belyaninov quite a long time he wanted to leave TCF and to engage Central Asian issues (for example, at the head of the EDB). However, personnel decisions at this level is always a chain of permutations, loop which can be long. But the question was solved suddenly and quickly.

At the end of July it became known that the Investigative Committee raided of the head of the Federal customs service and two of his deputies. The searches were held within the framework of the investigation of the smuggling of alcohol, initiated against the CEO of the holding company “Forum” Dmitry Mikhalchenko, said the official representative of the TFR.

“During the carried-out searches Belianinov seized 9.5 million rubles, $390 thousand and 350 thousand euros. In addition, seized jewelry,” – said later the source Agency in law enforcement. He noted that the investigation will be checked the sources of these funds. The head of the FCS, according to the source, explained the presence of large amounts of personal savings. Investigative actions were accompanied with the demonstration of photos from the event, which was immediately perceived as a “black mark” – now that is shown to the public, so the helper does not expect anything good.

But the Kremlin the next day reported that the head of the FCS isn’t accused of anything and has the status of a witness in the case about the smuggling of alcohol. Another day later, Prime Minister Dmitry Medvedev dismissed from the post Belyaninov with a neutral wording “at his request”. Subsequently, the senior officials said that the “show” around searches Belyaninov took place without the necessary in such cases are blessings, and that this situation has become the subject of a “serious discussion”.

At the same time the Prime Minister has appointed to head the Federal customs service, Vladimir Bulavin, who before the decree of President Vladimir Putin was released from the post of Plenipotentiary representative of the President in Severo-the Western Federal district. And the resignation and appointment were held in a festive atmosphere: an outcast Andrei Belyaninov itself clearly felt. Deputy Prime Minister Arkady Dvorkovich expressed his gratitude on behalf of the President and government “over the difficult work at the head of the FCS”. They both participated in the presentation to the staff of FCS of the new head.

The continued strengthening of the vertical of Finance

For the uninitiated, at first, any changes in the customs after the change of leadership does not occur – except that two months after the appointment Bulavin government order was dismissed the first Deputy head of the FCS Vladimir Malinin. The Deputy head of the customs Department Ruslan Davydov and Andrey Strukov, which along with Belyaninov were searched in July, their positions retained. In addition, to remain in office, and the Deputy head of the service Tatiana Galendeev.

Once a quarter of journalists was invited to open Board of TCF. One of them, in October, Vladimir Bulavin, said he sees the reserves collection of customs payments to the budget in the improvement of departmental risk management system (RMS).

Application of new customs technologies implies a significant upgrade SUR, stated the head of the Russian customs. “One of the Central places in the choice of objects of control in accordance with the implemented FCS algorithms is categorization. Subject-oriented approach allows to apply differentiated measures to minimize the risks traders,” – said Bulavin.

In the near future, customs plans to move to a three-tier model of categorization, involving high, medium and low risk levels. This, according to Bulavin, will allow more precisely to select the objects control and increase its effectiveness.

“The FCS today have an understanding of priority directions of development of services in close cooperation with the other under the Ministry of Finance by the Executive authorities. Over the next months, as has been reported on a meeting with the Minister of Finance, we plan with the Ministry of Finance, colleagues, businesses and public organizations to flesh out this understanding in a single document – the integrated development programme of customs service of the Russian Federation”, – concluded the head of the customs Department.

“We need to make a unified risk management system. Actually, this is not a new topic, and in a number of countries have a unified approach risk management system for customs and tax administration”, – noted in turn, Finance Minister Anton Siluanov, was also present at the Board meeting. This will increase the efficiency of the agencies and simplify the business of honest taxpayers, he said. In addition, the Minister urged FCS to accelerate the liberalization of cooperation with the business that can both increase budget revenues and improve the business climate.

Also Siluanov during a speech at the Collegium of the customs service addressed the issue of creating a mechanism for full traceability of goods in the territory of the Russian Federation. He recalled the decision of the Eurasian intergovernmental Council, providing for February 1, 2018, the pilot project on introduction of the mechanism of traceability of products, and during 2018 – operation of the system on an ongoing basis, based on the results of the pilot project.

Siluanov noted the importance of enhanced coordination between customs and tax authorities, particularly in terms of joint PostController events, exchange of data on taxpayers and the participants of foreign economic activities, accounting data in risk management systems.

And budget revenues fall

Despite the reports on the implementation of the old and the outline of the new initiatives at the end of October it became known about reduction of planned transfers in the budget for FCS in 2016 from 4.73 to 4.36 trillion in Exactly a month Bulavin said that customs “is in the schedule 100% implementation of the forecast plan”. Speaking at another, this time final this year – the College authorities, he stressed that for the first time in recent years, revenues from import of goods exceeded the income from energy exports. Share of import payments reached 53% in the total amount of revenues administered by the customs service.

“Customs duties and taxes levied on imported goods, collected more than 2 trillion roubles, which is 6.6% higher than in the same period of 2015”, – said the head of the FCS.

In late December, he stated that “to date, in budget revenues transferred to 4 trillion 238 billion rubles, or more than 97% of the control tasks, which we have from the Ministry of Finance”. However, the plan for fees of funds in the budget for 2016 of more than 11 percent less than the actual fees last year amounted to about 4,92 trln RUB. In turn, for a record in 2014, while the economic crisis has not yet erupted in full force, custom was transferred to the budget of 7.1 trillion rubles.