May 25, 2010: RBC: Expert Say Customs Reform Causes Changes to Logistics Worth Millions

St. Petersburg governor Valentina Matvienko also claims that starting from the moment the optimization concept of the Northwest Customs structure was approved, “the city has been facing serious problems.” At her recent press conference, she said that “it’s that very case when one wants better, but does like always.”

“The new rules caused huge lines of trucks all around the city, she said. From March, we’ve been sending piles of letters and cables to the Federal Customs Services requesting that it solve the issue.” She was very unhappy saying that “there were days when a thousand trucks were lining up along the city streets. We’ll be insisting on opening new posts, solving the issue.”

It was the Federal Customs Service’s decision to shut down the Vyborgsky and Piskarevsky customs posts in St. Petersburg that has caused all the troubles. To compensate the closure, FCS suggested a specialized post in Shushary for car manufacturers. In mid-May, however, they were reported to abandon the idea. At the moment, they are discussing opening posts directly at the factories.

The business community describe what’s happening as a collapse. AmCham St. Petersburg executive director Maria Chernobrovkina points at the very serious consequences of the simultaneous closure of the biggest posts. “Trucks with both components for manufacturers and imported consumer goods are lining up to the terminals. It jeopardizes manufacturing processes, especially those of the conveyor type — in fact, it’s the case with most modern manufacturers in the region.”

“So St. Petersburg enterprises waste a lot of money to change logistics, increase stocks, use third-parties’ terminals, etc., Chernobrovkina continues. One can’t say exactly what the total losses are, but we’re talking about millions of dollars, she assures. It has virtually stopped several production lines, certain important investment projects could be disrupted.”

Chernobrovkina believes that the hottest customs issues for both foreign and Russian investors who are carrying out big projects are tremendous changes to customs clearance technologies and administration, as well as attempts to administratively regulate logistic flows, implemented without any preliminary discussion or coordination with the business community.

“We can’t say customs authorities do nothing. They have been trying to find out a way to normalize the situation, such as the idea of a specialized post for car factories, she admits. Yet, the idea is far from well-thought-of. Firstly, there’s no way to limit a post competence to a single kind of importers. Secondly, a post for car factories wouldn’t be a comprehensive solution, as their suppliers, component manufacturers, are excluded.”

The Northwest Customs Directorate says that the above-mentioned changes are results of the Conception of Customs Clearance and Control Relocation Towards the National Border that has been implemented in the region from July 2009.

The Directorate’s press service says that within the Conception, “in March-April, taking into account the significance of normal operations of car and component manufacturers for the economy, the Directorate in coordination with FCS were considering creating a specialized post for imported components.” On April 21, the Baltic Customs opened a new post, Pushkinsky. The Directorate stresses that the Conception don’t require significant changes to the current customs clearance procedures in sea ports that have all the necessary infrastructure.

According to the customs authorities, it’s the sea transportation that is used to import car components. Their statistics show that as little as ten percent crosses the border on board trucks. As a result, it was decided to open the Pushkinsky post to all kinds of imported goods carried by all kinds of transport.

Yet, no agreement has been reached with the business community, and another post is going to be closed early in July.