International-Trade.doc

The general situation of Russian foreign trade Recent years
According to the Russian central bank data, total foreign trade of Russia in 2012 is $578200000000, which has increased 123.4% comparing 2011. Of which exports amounted to $355200000000; imports amounted to $223100000000; Through the analysis of the 2010 Russia since December monthly foreign trade data (see photo), expect foreign trade growth rate in 2011 January was slightly lower than in 2011 and 2012, the Russian import and export have generally maintained a momentum of rapid increase; From 2011 September, export growth rate began to lower than import growth and its import rate to maintain a rapid growth momentum.

Component

To be aware of the Russian trade, first let's clear about Russia's export and import composition.
The main commodities of Russia's foreign trade in 2012
Increasing the amount of import and export products is the direct reflection of the total foreign trade. In 2012 Russia exports amounted to $352473000000, which increased17% (see Table 1). In 2012 the total imports from Russia is $199708000000, which increased 44.9% (see Table 2). This is directly reflected in the Russian trade surplus change.

Table 1 : The main commodities Russian exports

In the aspect of the main export products, fuel energy products and metals are still dominant. In 2012 the export fuel energy products accounted for the 64% proportion of total exports, slightly below the 2011’s level, which is mainly due to natural gas exports accounted for the proportion of total exports decreased 1.9 percentage points; exports of metals and their products accounted for the proportion of total exports increased 1.5 percentage points. Viewing other major commodity, the Russian exports of food and agricultural raw material exports increased 41.7% in 2012, wood and paper products, chemicals and rubber products export increased but equipment and means of transport exports decreased 16%.
Food and agricultural production of raw materials has been occupied an important position in Russia's foreign trade. The products are directly related to the Russian residents living conditions. The proportion of food and agricultural production materials in Russia in 2012 was 2.6% of the total export volume.
In 2012 the food and agricultural production of raw materials exports are 46174000 tons, which increased 24%. And the imports are 26269000 tons, which increase 5.1% (see Table 3).
Table 3 : The import and export of Russian grain commodity

Skill
Why 2012 became a boundary?Ever since“Russia In The WTO: The Launch Forum”had held at the year 2011. Russia joined WTO in the end of 2011.“It is important, in our view, that the Russian private sector and business institutions use this room for maneuver as a window of opportunity to empower the private sector and, in particular, to ‘muscle-up’ exporting SME,”An officials from economic sector said.

Since Russia has joined the WTO nearly 2012, then the SME access opportunities for market. Thus , Russia’s SME have been learning new skills to obtain the necessary trade tools that will help them rise up to international standards. For example, we all know that machinery manufactured goods are primary part in Russia export components.Thus, new trade skill to meet international standard in machinery manufactured goods are as follow:
Promote reliability of production ,reduce downtime and increase the working life to fit international standards.
Trade legally and competitive fairly, guarantee the after-sale service and regulate sales channels.
Protect intellectual property rights,prevent infringement so as to damage international trade.
Own international standard certification and or so.
Because of these new techniques, Russia's trade is gradually growing mature.

Partner
Since 2012 is one of the fastest growing years between China and Russia’s trade after the disintegration of the Soviet Union, according to the latest statistical data, China has become the third largest trade partner of Russia, Russia has become China's seventh largest trading partner.

However, in Russia ,EU-15 still is Russia's largest trading partner, exports and imports in Russia respectively accounted for 41.4% and 35.9%.Among them, the Holland, Germany and Italy is Russia's main trading partner in the EU.
Under the influence that the Russian federal government is vigorously promoting the diversification of foreign trade strategy,the proportion that Asian countries in Russia's foreign trade is gradually increased.From January to June,APEC members account for 14.9% in Russia's export trade,account for 31.9% in Russia's import.China is Russia's largest trading partner in Asia.At the same time,the quantity that Russia imports from Japan and Korea is rapid growth,Japan and Korea has respectively become Russia's fourth,fifth largest source of imports.The 10 ASEAN countries and Russia's trade also develop rapidly,From January to June,the export Russia to the 10 ASEAN countries growth of 27.6%,the import Russia from the 10 ASEAN countries growth of 55.2%.The United States is Russia's largest trading partner in America,From January to June,the import Russia from the USA growth of 62.1%.
In the CIS the Ukraine is still the largest trading partner of Russia.From January to June,The Russia Ukraine trade amounted to 126.7 Billion us dollars,accounted for 6.3% of the total foreign trade in Russia.Kazakhstan is the second largest trade partner of russia,the trade amounted to 70.9 Billon us dollars,accounted for 3.5%.

Policy
More prosperous trade is , more in need of legal norms.
Here are some Russia's foreign trade policies and regulations
1. Customs Valuation
Tariff should be in accordance customs valuation paid by ruble through hard currency or the prevailing exchange rate.
2. Free Trade Area / Warehousing
In Russian there is no real sense of free trade area. There are several free economic zone intended to encourage investment in special area. There are also several free customs zones and free cargo warehouses, in the above two areas no need to pay customs tariffs.
3. Temporary entry
Temporary imports can free from customs duty, but must be carried out under the supervision of Customs. Temporary import costs 1000 rubles.
4. Export Control
On May 23, 1994, a presidential decree decision from July 1, 1994 to abolish all export quotas and licensing requirements. In theory, some products export are open to all registered companies, but in fact to enter their systems, such as oil pipelines and other export products will continue to encounter many restrictions.
5. Import licensing
For a number of different types of products imported, including radioactive materials such as uranium waste, toxic and narcotic, precious metals, alloys and precious stones, etc., required to apply for permission to import.
6. Tariffs and import taxes
Along with the general liberalization of import controls in 1992, Russia began to implement import tax or customs duty system. Apart from import tax, for imports of products there is another two rates: excise duty and VAT. Consumption tax is for some "luxury" goods, such as alcohol, cigarettes, and cars and so on. The tax rate is in the 10-250% range. VAT rate of 23%, which is based on the collection of import price plus import duty plus consumption tax.

Custom
Now, let's talk about trade policy in detail to the customs section.
Customs clearance in Russia
Customs clearance procedures are longwinded and complicated. Clearance can only be completed by the consignee who must be a company registered in Russia. All duties and VAT have to be paid to Customs prior to release of goods. Payment of VAT/duty on some items must be paid in advance to Customs before the container/trailer is allowed to cross the border. This particularly applies to items such as spirits and tobacco.
Customs duties
Customs duties are levied according to the type of goods imported and their origin. Duties are normally expressed as a percentage of the value of the goods imported. However, they may also be expressed as a set amount of euros per unit or kilogram or as a combination (the greater of the two). A customs processing fee of 0.15% of the cost is also levied. Customs duties are payable in rubles at the current exchange rate. According to customs regulations, processing should take no longer than 3 days. If goods are refused entry by Russian Customs, regulations call for their return to the country of origin.
Customs clearance procedures
Customs clearance procedures are the essential part of International transportations. Arivist offers a complex of services in customs clearance assistance for import, export and transit shipments dispatched by all means of transport.
Customs Tariffs
Customs Tariffs are the tariff codes nominated by the Customs Department to each and every different moveable product imported or exported. The Customs Tariff Classification of a product is applied in terms of legal principles of tariff interpretation and determines the rate of duty applicable. Due to advanced technology and the increasing number of new and sophisticated products being traded internationally, the classification of products under their correct tariff headings have also become more complex. Importers and Exporters generally do not have the required technical knowledge of the customs tariff to classify their goods correctly, resulting in either overpayment of duties or underpayments of duties. An incorrect tariff classification of a product may have serious financial implications for the manufacturer, importer or exporter.
Declaration of goods
The declaration of goods is effected through submission to the customs authorities of information pertaining to goods and their customs procedural status, as well as of any other information, which may be required for customs clearance purposes, in a customs declaration or by any other method stipulated by this Customs Code in a written, verbal, electronic, or contracting form. Declaration of goods may be effected either by a declarant or by a customs broker (agent) at the declarant’s discretion. The scope of information to be entered in a customs declaration is limited to the details which are required for calculating and levying dutiable payments, gathering customs statistics, and applying the customs legislation of the Russian Federation.
Temporary importation
Temporary importation constitutes a customs procedure under which foreign goods are utilised in the customs territory of the Russian Federation within a designated period of time (goods processing period) with complete or partial conditional exemption from customs duties and without subjecting such goods to any economic restrictions of prohibitions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities.