Jul. 28 – President Dmitry Medvedev agreed to allow the transportation of goods through the Russian border without a “transaction passport” if costs do not exceed US$100,000.
Yesterday, during the presidential commission on economic modernization, the head of state-run Russian Venture Company Igor Agamirzjan enumerated the problems that disturb venture investments and what needs to be done to solve them.
Dmitry Medvedev agreed with the speaker, saying that the export regulation is too complicated, and the whole system is “absolutely opaque.”
Among others, RVC has offered two measures. The first is to lift the limit on foreign trade transactions which required co-called “transaction passports” from US$5,000 to US$100,000.
Under current Russian currency law, a resident lessee must wield a “transaction passport” to be able to make payments to a foreign lessor under a lease agreement. Transaction passports are necessary for accounting and reporting purposes in any event, but are indispensable for making foreign currency payments for goods or services. Transaction passports are prepared on the basis of the supporting documents for the transaction, which include the lease agreement.
Without the passport, it is impossible to pay out. The bank simply has no right to transfer the money.
“Under the instruction of the Central Bank, the passport registration should not exceed three days, but for this purpose it is necessary to provide the bank with the contract signed by the parties first,” Galina Balandina of Pepeljaev Groups explains to the Russian daily Vedomosti.
“The foreigners are not used to making such contracts and, as a result, passport registration is stretching out.”
The second measure being offered by RVC is to release customs bodies from their control over currency transactions. The customs officers now duplicate tax officials’ duties by checking every export contract to be sure it meets the currency legislation.
“As a result, goods are being stuck at the border for weeks making delivery terms unpredictable and it very much complicates work between Russian companies and foreign partners,” Balandina said.
According to the newly established Customs Union Code, which commenced July 1st, the registration of goods should be completed within four hours.
“Fewer duties for customs officers will give them a better chance to meet deadlines,” Balandina considers.
