Green Customs Channel: Simple customs clearance in Russia thanks to digital signatures

When goods are imported into Russia, the customs authorities there primarily have one goal. They want to ensure that the goods reach the territory of the Russian Federation with the same attributes as they had when they left the European Union – for example, their price, quantity and weight. Customs checks consist of two components: physical checks of the freight and the certificates of origin. The complexity of providing customs clearance for imports creates high costs, takes a great deal of time and sometimes leads to delays in deliveries.

The main risks related to imports are associated with preparing the certificates: as original copies of the COOs have to be presented, the importer normally hands them over to the drivers. This poses a risk, particularly with unreliable drivers who may lose or destroy the document. Alternative methods of sending them can also be problematic as many Russian customs offices are located at remote places which do not have any direct link to courier services. It is often the case that the original document is not directly available because issuing it can take quite some time due to the various factors that need to be considered such as countries, shipments or chambers of commerce. During this time, the truck is at a standstill and this causes further costs. The additional freight inspections are also very complicated: the goods have to be unloaded, put into intermediate storage, weighed, photographed and then placed back on the vehicle.

Even if the document makes it to the destination, further delays can still occur. The customs inspector examines all the requirements such as the legibility and the authenticity of the signature and the stamp. He or she may reject the goods if the document contains spelling mistakes or the watermark has been damaged. If the COO is not provided on time, so-called compensatory anti-dumping payments are incurred in addition to the regular customs duties. It may be possible to reclaim these costs at a later date, but the refund can normally take up to 12 months. Once the goods finally arrive at the customer’s site, the company risks a complaint because it has failed to comply with the delivery date.

The enormous time and financial expenditure related to COO logistics could be reduced by introducing digital customs clearance. A pilot project being organised by the German-Russian Chamber of Foreign Trade is called the Green Customs Channel. With the aim of having a cross-border electronic flow of documents, the current export declaration procedure used by European customs authorities is transferred to the Russian import customs procedure. However, there is a challenge here: the Eurasian Economic Union (EAEU) regulates the current legal basis for customs clearance in Russia, Belarus, Kazakhstan, Kyrgyzstan and Armenia. According to Decision No. 49, it accepts electronically issued certificates of origin, but only with certain restrictions. The Chamber of Commerce must give the responsible customs inspector access to the database. This enables him or her to ensure that the certificate was actually issued and whether it contains all the necessary information.

Digitalised customs clearance accelerates the whole process. Steps involving a great deal of work and other delays caused by human errors related to COO logistics are then a thing of the past. The flow of documents takes place within the central system and, as a result, it is possible to make savings in terms of the costs for logistics and storage. The complete process is also paperless and more transparent: the customs authorities have immediate access to the information that they need. This enables faster trading practices, which in turn generates higher customs duty payments for the importing country. Both trading partners benefit from the advantages of a digital solution.