An important link in the transport chain
Customs regulation is always at the intersection of the interests of the state and business. It is important for government agencies to ensure economic security. Businesses need simple and understandable customs regulation, selective and predictable customs control, and the absence of unjustified financial costs. The further development of customs regulation is more or less connected with the introduction of modern electronic technologies, the displacement of paper document flow, and the maximum digitalization of all processes. The creation in the EAEU of a mechanism for tracking the transportation of goods through the territory of the EAEU using navigation seals is a clear example of this. It will be used for the transportation of goods under customs control, as well as those transported in mutual trade between the five countries. To create a legal basis for the functioning of the tracking mechanism using such devices when transporting goods across the territory of the EAEU, a corresponding agreement has been developed. It came into force on April 3 of this year. And recently, the EEC Council has defined a list of uniform requirements to be met by navigation seals used to track the transportation of goods across the territories of two or more countries of the Eurasian Economic Union. Sergey Vladimirova, Director of the Department of Customs Legislation and Law Enforcement Practice of the Eurasian Economic Commission, was asked how this mechanism will work in practice and what benefits carriers will receive.
To help the carrier
— Sergey Valentinovich, first tell us, please: what is a navigation seal?
— A navigation seal is a technical device that includes a sealing element and an electronic unit that ensures the functioning of this device based on the technologies of navigation satellite systems and the transmission of information about the transportation of goods to the information system of the national operator in which this navigation seal is registered. All information about the transportation of goods will be available to the controlling authorities of the Member States in whose territories they are carried out. In case of unauthorized opening or rupture of the locking cable, loss of communication, battery discharge, the seal records this event and sends an alarm signal to the national operator.
— And what are they for?
— On the one hand, the mechanism of using navigation seals should ensure the transparency of the transportation of goods through the territory of the Union and the legality of the turnover of goods in our countries. And on the other hand, to minimize the implementation of control measures along the route of goods. Thus, the Agreement on the Use of Navigation Seals in the EAEU for tracking shipments explicitly provides that the use of customs escort is not allowed in the case of the use of navigation seals, with the exception of a number of goods specified in it.
— What economic effect will the use of navigation seals for tracking traffic give the EAEU?
— In general, the implementation of the agreement will simplify and speed up the procedure of cargo delivery to the recipient, including by excluding cargo inspections during transportation — on internal sections of borders. Reducing control measures along the route of goods will certainly reduce the overhead costs of the business and reduce the time for the delivery of goods.
At the same time, the use of navigation seals will ensure a reduction in the share of gray, shadow trade turnover in the union, from which bona fide producers and consumers suffer.
Today’s realities indicate that a new modern control tool meets the interests of both regulatory authorities and foreign trade entities.
Point on the map
— How does the mechanism for tracking traffic using navigation seals work?
— There are two main elements used in the mechanism of tracking the transportation of goods. This is the navigation seal itself and the information system of the national operator in which this seal is registered. The navigation seal for the tracking period performs the function of storing information about transportation. Using geo-positioning technology, the navigation seal transmits information about its location and condition online to the information system of the national operator.
The information system of the national operator, which provides monitoring of the transportation of goods using navigation seals, is a specialized technological complex that collects, processes, stores and transmits data to the supervisory authority and interested parties.
The system uses cloud technologies, which allows you to scale it in terms of performance, the number of users and the amount of information processed. The technologies used allow many users to work together on different devices.
— How will the implementation of this system take place?
— This mechanism is planned to be launched in early 2024 in three stages. At the first stage, sanctions and certain types of excisable goods (alcohol/tobacco) transported by road and (or) rail in accordance with customs transit and export procedures and transported between Member States within the framework of mutual trade will be monitored, as well as categories of goods such as clothing, shoes, equipment transported by road in accordance with the customs transit procedure.
At the second stage, six months after the start date of tracking, other categories of goods transported by road in accordance with the customs transit procedure, as well as certain categories of goods (clothing, shoes, equipment) transported by rail in accordance with the customs transit procedure will fall under the use of navigation seals.
Well, at the last, third stage (approximately from May 2025), the use of navigation seals will be extended to the transportation of goods carried out by rail in accordance with the customs transit procedure.
In order to prepare for the practical implementation of the agreement, orders were adopted by the Council of the Commission and the Eurasian Intergovernmental Council on conducting two experiments on the use of navigation seals in relation to certain categories of goods placed under the customs procedure of export and goods transported within the framework of mutual trade.
The participants of one experiment are Belarus and Russia, the other is the Republic of Kazakhstan, the Kyrgyz Republic and the Russian Federation.
The experiment between Belarus and Russia is carried out in relation to timber and woodworking products placed under the customs procedure of export in Belarus and departing from the territory of the Russian Federation.
The experiment was launched on February 13 of this year. Initially, it was planned to be held until June, but on the initiative of Belarus, taking into account the received effect, it was extended until the end of the year.
As part of the experiment, as of June 2023, navigation seals were applied to 363 cargo shipments of timber and woodworking products placed under the customs export procedure in Belarus. 354 vehicles passed through the territory of the Russian Federation. When removing the navigation seals and leaving the territory of Russia, there were no problematic issues. At the same time, navigation seals of both Belarus and Russia are used during the experiment.
Tasks for tomorrow
— Who will be engaged in tracking traffic?
— Tracking of transportation on the territory of the EAEU along the entire route will be carried out by the national operator of the member state on whose territory such tracking begins. It will ensure the transfer of the necessary information to the national operators of other countries through whose territory the transportation will be carried out, as well as to the supervisory authorities of the Member States.
— What are the medium-term prospects for the use of navigation seals?
— The agreement on the use of navigation seals in the EAEU for tracking traffic in the future will become an integral part of the unified customs transit system in the Union, which is currently being worked on. A draft agreement on a single transit system of the Eurasian Economic Union has already been sent to the member States for internal coordination.
One of the most important tasks in this direction is to ensure the openness of the EAEU transit system, which will allow interested countries (non-members of the Union) to join it. It is assumed that it is possible to use one customs document along the entire route of goods and actually create one transit space for all participants of the transit system of the Union.
The Union is a “bridge” between Europe and Asia in terms of trade operations, therefore, ensuring a transit system that is transparent and as simple as possible for participants in foreign trade activities will contribute to the investment attractiveness of the “five” as a whole and the member states of the integration association, and will also contribute to the development of their economies.
