Sunday, March 31, 2019

Who is Customs Broker in Russia

1. A customs broker (agent) is defined as a Russian juridical person included in the Register of Customs Brokers (Proxies). A state entity may not be certified as a customs broker (agent).

2. A customs broker (agent) acts as an agent for a declarant or of another interested person performing a customs operation pursuant to the terms and conditions set forth by Russian Customs Code.

3. A customs broker (agent) has the right to confine the sphere of its activities to customs operations with specific kinds of merchandise as pursuant to the Nomenclature of Goods subject to Foreign Trade, or to customs operations with the goods and commodities conveyed across the customs border by specific means of transport, or to individual customs operations, or to the customs operations limited by the framework of a region covered by one (several) customs office (customs offices).

4. The relationships between a customs broker (agent), the declarants and other interested persons are established on a contractual basis. A customs broker (agent) is not permitted to refuse to conclude a contract for a service or an operation if it has requisite facilities for providing such service or for carrying out such operation.

Terms of Entry onto the Register of Customs Brokers

The terms of entry onto the Register of Customs brokers are as follows:

1. Availability in the applicable staff of a minimum of two certified specialists in customs clearance in possession of the relevant qualification licenses;

2. Availability of complete original authorized (equity) capital, authorized investment fund or of the applicant's share therein;

3. Guarantee of dutiable payments;

4. Availability of the applicant's civil liability insurance policy, which may occur as a result of damage, caused to the property relating to represented persons or due to a breach by the customs broker of its agreements with such persons. The minimal insurance premium thereto should amount to 20 million roubles.

The Rights of a Customs Broker (agent)

1. In carrying out customs operations a customs broker (agent) shall have the same rights as the juridical person that has empowered the customs broker (agent) to represent its interests in its relations with the customs authorities.

2. A customs broker (agent) has the right to a warrant of the customs authority, on behalf of the person it representations, fulfillment of the obligations assumed by said person with regard to guaranteed payment of customs duties and taxes if provisions of Russian Customs Code require a guarantee for such payments.

3. A customs broker (agent) has the right to demand that the person he represents furnishing the documents and the information that may be required for fulfilling customs clearance procedures including the documents containing sensitive information constituting commercial, banking and other securities protected by law or any other requisite confidential information and to obtain such documents and such information within the prescribed time limits ensuring observance of the provisions of Russian Customs Code.

4. At the instance of signing a contract with the person to be represented the customs broker (agent) has the right:

- to offer various discounts with regard to remuneration of its services and provide privileges for specific categories of persons it represents;

- to demand, as a precondition for concluding a contract with said person, that the latter abide by its commitments in accordance with the Civil Code of the Russian Federation.

Obligations and Responsibilities of a Customs Broker (agent)

1. In the process of customs registration / clearance procedures, obligations of a customs broker (agent) are predicated on the terms and conditions set forth by Russian Customs Code with regard to the customs operations, which may be required for subjecting goods to one or another customs control procedure. The fact of fulfillment of such operations by a customs broker (agent) does not oblige the latter to carry out any other operations, such as completion of a customs procedure.

2. A customs broker (agent) shall pay requisite customs duties and taxes for the declared goods if the terms of the goods customs procedure requires such payment. At the instance of declaring goods, the customs broker (agent) in accordance with Russian Customs Code bears the same responsibility for the disbursement of customs duties and taxes as the declarant.

3. Any information obtained by a customs broker (agent) from the persons he represents constituating commercial, banking and other securities protected by law or any other requisite confidential information may not be made public, or used by the customs broker (agent) and / or its employees for their personal goals, or disclosed to other persons except for the cases stipulated by federal law.

4. A customs broker (agent) shall be obliged to keep a record of the goods subjected to customs operations and submit reports thereof to customs authorities.

5. The customs broker's (agent) obligations and accountability before the customs authorities shall prevail over his contract with the person he represents.