Russia’s internal regulations and certification systems are gradually replaced by the technical regulations of the Customs Union (CU TR).
New Regulations are tightening the requirements for product quality and system of control. Now with certification of imported products to the territory of the CU the applicant can only be a resident of the country of that territory. This applies to the declaration of compliance of imported products of mass production.
Also, new regulations require certification of products unveiled
activities such as the obligatory departure for production to its analysis and implementation of periodic inspection control of production.
WHAT DOES THIS MEAN
for foreign manufacturing company, delivering products
To comply with new technical regulations foreign company are obliged to organize a branch in Russia – a legal person, resident of the Russian Federation – which will carry out the importation and certification of products and be responsible for its quality.
For a large international company that is not a problem.
But for the medium and small companies that would require large financial costs – for the maintenance of the branch, payment certification activities (analysis of production and inspection control).
Especially difficult will be the position of the companies, who bring in small amounts of Russian goods. For example, suppliers of industrial equipment in single units to perform warranty. The need to carry a lot of overhead costs of the branch and certification activities will make such a small supply of extremely unprofitable.
How to deal with this situation?
Now many companies that supply products to Russia, in order to minimize their financial costs – not quite legal (“gray”) -, apply different clearance schemes. This entails the risk of conflict with the law. Especially considering that the fight against such schemes in Russia is constantly increasing.
The best solution for this situation which will allow companies to import their products in Russia is legal without violating of the Russian law and in compliance with all the requirements of technical regulations, and save considerable funds.
Sercons Europe OFFERS a solution
A residents inside the Russian Federation through our company.
1. Economy funds:
no need to open Russia your own branch office in Russia.
No need to pay for the rental and maintenance of office, to keep accounts, to remunerate staff.
2. Financial savings on Product certification
There is no need to incur the costs of paying visits of experts to analyze the production and periodic surveillance.
3. legal activity, no problems with the law
Our branch officially imports products to Russia, holds its customs clearance takes custody products. Eliminates the need for importation of illegal schemes that were in conflict with the law, reduced logistics costs.
4. Facilitated the fight against counterfeit products
No one else has the right to import goods into the territory of the Russian Federation under the TM data. This makes it possible to efficiently track and prevent attempts to import counterfeit goods. This increases the profit of the company and the manufacturer from selling legal goods.
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Such cooperation is expected on the basis of mutually agreed upon monthly/yearly payment.
The Customs Union made 24 new technical regulations, 7 of them will come into force in 2012.
15 projects of technical regulations are in the process of internal coordination and seven completed a public discussion. “The work being done on the development of technical regulations – it is a progressive way. We go out on a single document, uniform conformity assessment procedures, this process involves all of the services – Gosstandart, the Ministry of Health, Ministry of Agriculture, concerns. Requirements that are currently being implemented in the Customs Union including sanitary, veterinary, state standards are quite high. And most of our companies ensure compliance with these requirements, “- said the chairman of the State Standardization Committee of Belarus V.Nazarenko.
The introduction of technical regulations of the Customs Union will remove artificial barriers in the supply of goods and admission to the market. “We hope that our colleagues from other CIS countries will examine closely the experience of the Customs Union, and also connect us to go to the common rules, common documents and requirements. This will provide in the safety of products, promote open competition” – the chairman of the State Standard.
Deputy Foreign Minister Alexander Guryanov said that “the introduction of the single currency in the Customs Union is possible provided a deeper integration of its member countries.”
According to the deputy minister, is a question of medium-or long-term perspective, when the country’s vehicle will move to a deeper level of integration. In this case it is not necessary that the single currency will be the Russian ruble. It is likely that this will be a different currency. “It could be the Russian ruble, and may not be when the time comes and will issue a single currency might be invented a new currency,” – he said.
“We have this issue has not yet discussed, and at the political level, it was indicated that the introduction of the single currency – is a distant prospect”, – explained A.Guryanov. To introduce the single currency, you must first equalize economic conditions in the countries of the Customs Union.
On the whole, Belarus considers the discussion on the introduction of a common currency with Russia to be premature, although it supports the idea.
Discuss this subject is premature, but refuse to consider such a prospect as a whole – is short-sighted “- added, in turn, Head of Information – spokesman for the Foreign Ministry Andrei Savinykh
In November, Moldova could be held the referendum on accession of Moldova to the Customs Union. With this initiative was the Social Democratic Party of the Republic.
Prior to that, the idea of joining the Customs Union of Moldova was supported by the party “Patriots of Moldova”, after the accession encouraged other community organizations and political parties. According to surveys, the respondents also supported the politicians.
Chairman of the Social Democratic Party of Moldova V.Shelin previously stated that “upon entry into the Customs Union of Moldova lives of citizens of the republic would be better, but the younger generation of the country will receive future economic development in the East and create a European standard of living in Moldova”.
The initiators of the referendum argue that it is primarily focused on the interests of the representatives of the trade sector, as in the Customs Union of Moldovan entrepreneurs are always able to buy cheaper selling price. In addition to the revised steel TC ‘freedom of movement of people, common energy and transport systems, languages spoken, the stocks of raw materials and markets. ”
On appeal of the idea and said the president of Transdniestria E. Shevchuk: “Only by combining the economic potential of the CIS countries can adequately respond to new risks of economic instability in the XXI century”.
Kazakhstan intends to join the Customs Union.
The Eurasian Economic Commission for Europe (ECE) has recently started to consider the application of Kazakhstan to join the Customs Union. For information about this published 29th of February by Russian Internet media, referring to the Minister of Trade of the Eurasian Economic Commission for Andrei Slepnev.
“It was agreed that a working group is initiated for the inclusion of Kazakhstan in de Customs Union. However, this work is now in the beginning. “- said Andrei Slepnev.
“At the same time, there is an understanding that this road should pass, since the Customs Union was formed as part of the Eurasian Economic Community (EEC), and is a member of the CD.”
“Eurasian Economic Community was created originally for the purpose of forming the Customs Union. In this regard, the application of Kazakhstan is a consistent step towards this goal “, – said Andrei Slepnev.
Recall that official Bishkek announced his intention to join the Customs Union and the preparation of the whole procedure of entry into it, which is today a member of the Russian Federation, Kazakhstan and Belarus, in the spring of last year.
Sercons Europe wishes everybody a good christmas and all the best Wishes for the New Year!
On 15 december 2011 at the Regards hotel near Rotterdam Airport a workshop Customs and Logistics in Russia (Douane en Logistieke zaken in Rusland) will be held. Our Certification expert Paul de Nijs will be ready to present and share his knowledge and experience about the certification process.
If you want to hear about his knowledge and experience about Russia, Ukraine and Kazakhstan please be present at:
Rotterdam Airport Hotel Regardz
Adres: Vliegveldweg 59-61
3043 NT Rotterdam
Be advised that this workshop is held in the Dutch language.
Russia, Kazakhstan and Belorussia decided to change the Import Tariffs to an uniform system because of the Customs Union between the three countries.
More information from website http://www.globaltrade.net:
“Russia continues to maintain a number of barriers with respect to imports, including tariffs and tariff-rate quotas, discriminatory and prohibitive charges and fees, and discriminatory licensing, registration and certification regimes. For more detailed information concerning tariffs, please refer to the “Customs Regulations and Contact Information” section below. The following is a selection of tariff ranges for popular U.S. goods entering Russia.
Changes in the Commodity Schedule were implemented in 2004 in accordance with the international obligations of the Russian government to comply with HS codes and Russia’s intention to enter the WTO. The new customs tariff schedule changed rates for 140 categories of commodities, lowering the tariff ceiling for 90% of the categories. Notable changes included lowering import tariffs for audio- and video- equipment and components from 20% to 15%, for fruits and vegetables from 10% to 5% and for sewing machines from 25% to 20%. Certain commodities continue to be regulated through seasonal duties and quotas.
In addition to tariffs, there are two other charges applied to imports: The ubiquitous Value Added Tax (VAT) and selective excise taxes. The universal VAT rate was reduced from 20% to 18% effective January 1, 2004 (with the exception of foodstuffs, pharmaceuticals and medical supplies for which VAT is 10%) and is applied to the import price, tariff, and excise tax combined. There are some exemptions from VAT. For example, resolution No.19 of January 17, 2001 provides a list of vitally essential medical equipment to which no VAT is applied. The excise tax applies to a number of luxury goods, alcohol and cigarettes, and varies from 20% to 570%.
From December 2008 through February 2009, the Russian government announced a series of significant duty increases on cars, harvesters, certain steel products (including pipes, tube and rebar), and certain agricultural products (including butter, milk and soy meal). These duty increases, which will be in effect for a temporary period of nine months, will likely be a hindrance to U.S. exports to Russia. After the initial nine-month period, the Russian government will make a determination whether to maintain the duty increases or to let them expire.
The duties on imported vehicles increased by as much as 20% for new cars, and increased to a prohibitive level for used cars older than four years. U.S. automobile makers already manufacturing in Russia will be less affected because the duty increases will only impact their imported vehicles and will not apply to their cars produced or assembled at Russian plants. The duty rates for harvesters were increased dramatically by at least 200%. The duty increases will likely contribute to sales declines in Russia for the major U.S. and EU producers of agriculture equipment, as will other factors, including the strengthening of the dollar and Euro against the ruble and the current difficulties in securing financing within Russia for the purchase of foreign agricultural equipment. The duty increases for butter and milk were also substantial, while the duty increase for soy meal (used as a protein supplement in animal feed) was more modest.
It appears that the Russian government imposed these measures mainly to protect domestic producers from competing imports during the global economic crisis. The duty increases for soy meal were also likely intended as a revenue collection measure. As Russian companies continue to struggle with the crisis, it is possible that the Russian government will impose additional duty increases on other imported goods.
In addition to duty increases, the Russian Ministry of Industry and Trade is currently conducting global safeguards investigations of harvesters and of certain steel products. Those trade investigations, which will likely conclude in February and March 2009, could result in the imposition of additional duties or import quotas on those products.”
Dear Clients and visitors,
The first movie we uploaded is about Sercons Europe and shows our activities. In the near future we want to upload video’s that tell about certification. Please stay tuned!
Movie about Sercons Europe
There is a new movement going on in Russia, Kazakhstan and Belarus. These countries are now working towards a Customs Union. This started with the Eurasec (Eurasian Economic Community). Eurasec was formed by five of the CIS countries. In July 2010 Russia, Kazakhstan and Belarus decided to form a Customs Union (CU). They wanted to introduce free movement of goods. In Europe this process took over 30 years to unionize all the countries. Russia, Kazakhstan and Belarus want to do this within a few years.
They already introduced:
“ Customs Union certificate of Conformity with National Standards”.
On the first of January of 2012 they want to introduce:
“ Customs Union certificate of Conformity with Customs Unions Technical Regulations”.
The Customs Union has already introduced a list of products that need to have the Customs Unions certificate. This is a preliminary list, the final list will be published in December 2011.
As you can see in a previous blog, Sercons Europe is already accredited for the Customs Union Certification.
Question & Answer:
- What is the definitive list of product for Customs Unions?
This is not known.
- Will all certificates become invalid with the introduction of the Customs Union certificate?
We think that the Gost R certificates that are now replaced by the Technical Regulations will become invalid. You can always check with our company if your certificate becomes invalid.
- When will it be possible to obtain a Customs Unions certificate?
This is already possible for a small number of products. We still do not know when we know more, but probably in December 2011.