 In early 2005, the Russian business community rated the Federal Customs Service (FCS) as the best government agency in terms of openness and transparency.
 In 2003, as part of its efforts to gain membership in the World Trade Organization (WTO), the Russian Federation was determined to achieve internationally-acceptable practices in customs administration in order to facilitate the flow of trade and the processing of imports and exports. The Government also aimed to improve the integrity and professional skills of customs’ staff and reduce systemic weaknesses that had allowed corruption to flourish.  Later that year, the Government obtained a US$140 million loan from the World Bank and launched the six-year Customs Development Project to modernize operations in the 800+ customs posts manned by the 62,000 staff.  One of the immediate tasks was to modernize the infrastructure for clearing goods. Under a pilot project in 24 offices and 11 regions, staff are learning to use modern telecommunications, computerized systems, and specialized equipment such as cargo scanners.  By the end of 2004, the implementation of a new Customs Code had reduced the processing time inland customs offices from 10 days to 3 days, for 98 percent of the declarations. In general, the project is supporting Russia's implementation of the revised international Kyoto Convention on Harmonization of Customs Procedures.
The project also aims to increase taxpayer compliance and reduce corruption in part by automating customs procedures, but also by fostering cooperation between the FCS and the trading community. The agency has introduced e-filing in 26 customs offices to be rapidly extended to other posts.  Performance data are posted on the FCS website and periodic surveys provide feedback from the trading community. At the same time, the project is supporting efforts to strengthen enforcement through the use of risk-based clearance procedures and post audit.  The FCS is committed to achieving the conversion of the Russian customs administration into a model facilitator of international trade. |
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