The new rules have led to the following consequences:
- mass cancellation of previously signed contracts between manufacturers and suppliers;
- significant reduction in the volume of imported goods;
- problems with working capital for Kyrgyz exporters, who have found themselves in a difficult financial situation.
In response to questions about how and when the situation might change, as well as the possibilities for compensating losses for carriers, Alexey Kostin, an associate professor at the Department of Taxes and Tax Administration of the Financial University under the Government of Russia, provided answers.
According to him, in recent years, there has been a significant increase in the need to identify counterfeit and other goods that have been imported in violation of customs regulations, especially within the framework of the Eurasian Economic Union (EAEU). The member countries are striving to unify and harmonize not only the rules for the movement of goods but also all related operations, such as certification and risk management.
“Russia and Belarus have already joined forces to combat major customs risks by creating an interstate center in 2022 to coordinate risk management efforts. The main goal is to ensure the economic security of both countries and minimize risks for businesses. In 2024, the center will focus on monitoring violations related to the movement of goods that have a high risk of undervaluation and incorrect classification, which has already allowed for the reassessment of about 60 million rubles into budgets,” Kostin reported.
The question of involving the customs services of Kazakhstan and Kyrgyzstan in joint risk management efforts remains open, as these countries are not yet participating in similar initiatives.
“Customs authorities face the challenging task of identifying illegally imported goods, especially counterfeit products that threaten consumer safety. The increase in cases of such goods being imported from EAEU states into Russia has led to measures being taken by the government. In response to the import of goods from the sanctions list, mobile groups of the Federal Customs Service (FCS) were created. Currently, a decree from the President of the Russian Federation ‘On the Features of Customs Regulation at the Russian-Kazakh Border’ has been adopted, aimed at legalizing already imported goods and focusing on high-risk operations,” the expert added.
In the context of budget deficits and growing competition between shadow imports and more expensive local products, such activities are likely to develop with increased intensity through interagency coordination,” Kostin noted.
The main goal is to ensure control over the timely and complete payment of all mandatory payments by all importers in accordance with the legislation.
The expert believes that Kazakhstan and Kyrgyzstan should follow Belarus's example and create working groups to discuss customs risk management issues. In the context of forming a new, more organized market, the main burden of adaptation lies with businesses, which must find new working models in the changed conditions.
The formation of an organized market depends on the rapid and quality adaptation of the business community. Those who transition faster from the role of a simple carrier or intermediary to a full-fledged participant in regulated foreign economic activity will be successful.
It is worth noting that earlier Kyrgyzstan and Kazakhstan expressed protest against the expansion of the pilot project for customs inspections of clothing and footwear, which concerns not only their cost and quantity but also characteristics, trademarks, and countries of origin, including control over specific brands.
