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Non-governmental environment external economic activity Areas for improvement Alexander Elinson, CEO NIPK Electron Co., St. Petersburg

Non-governmental environment external economic activity Areas for improvement Alexander Elinson, CEO NIPK Electron Co., St. Petersburg

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Page 1: Non-governmental environment external economic activity Areas for improvement Alexander Elinson, CEO NIPK Electron Co., St. Petersburg

Non-governmental environment external

economic activity

Areas for improvement

Alexander Elinson, CEONIPK Electron Co., St. Petersburg

Page 2: Non-governmental environment external economic activity Areas for improvement Alexander Elinson, CEO NIPK Electron Co., St. Petersburg

Russia and Globalization

Cooperation with the World market

Direction change of product flow

Toughening competitive environment

Integration into the World Economy

Internal Market reform

Customs union

Absence of trade barriers

Reduction of customs duty costs

Optimization of customs clearance procedure

Tax-free transportation of locally manufactured

and imported goods

Russia in Global Economy

Page 3: Non-governmental environment external economic activity Areas for improvement Alexander Elinson, CEO NIPK Electron Co., St. Petersburg

Innovative activity: more than 20 years

Number of employees: 600 people

Research department employees: 135 people

Manufacturing: 1700 pcs/year

Market share in Russia 28%

Sales in over 50 RF regions

Supplier within the National Projects “Health”

and “Modernization”

Export to over 30 countries around the world

The world’s second manufacturer for range of products

Information on NIPK Electron Co.

Page 4: Non-governmental environment external economic activity Areas for improvement Alexander Elinson, CEO NIPK Electron Co., St. Petersburg

Radiography/Radioscopy Interventional surgery

Information systems & SW

Computed tomography*

* Created within the framework of Philips-Electron full-cycle innovative partnership

Product line of NIPK Electron Co.

SPECT Digital imaging systems

Page 5: Non-governmental environment external economic activity Areas for improvement Alexander Elinson, CEO NIPK Electron Co., St. Petersburg

Customs union legislation

Federal Law «About customs regulation in RF»

Customs legislation in Russia

Incomplete fulfillment of current legislation

requirements by Federal customs

!

Page 6: Non-governmental environment external economic activity Areas for improvement Alexander Elinson, CEO NIPK Electron Co., St. Petersburg

Customs clearance

Significantly delayed customs clearance while crossing the border, excessive documentary demands:

Difficult declaration procedure Excessive customs control procedure Export control time – up to 1,5 months Repeated export control at shipping the same

product Customs requirements uniformity are not adhered Significant delays at spare parts and components

shipping for equipment repairs

Taxation

Supplementary requirements for the VAT concessional taxation for medical equipment components

Examples from NIPK Electron Co. experience

Page 7: Non-governmental environment external economic activity Areas for improvement Alexander Elinson, CEO NIPK Electron Co., St. Petersburg

ICT

Inefficient procedures of the goods electronic declaration system

Problem: The e-customs

system fails to specify automatically

a registration number of customs declaration

!

Impact to business:

Significant delay of customs clearance procedure

Examples from NIPK Electron Co. experience

Page 8: Non-governmental environment external economic activity Areas for improvement Alexander Elinson, CEO NIPK Electron Co., St. Petersburg

Areas for improvement

Customs operations and procedures improvement:

simpler - faster - transparent - cheaper

Increase of customs control efficiency

Modern IT technologies application

Shift of customs control focus to post-production

stage

Mission

Russian investment climate improvement and following incoming investment flow rise and life level growthжизни

Objective

Improvement of import/export procedures in terms of time consumption, cost efficiency and complexity

Close cooperation of the state and business

Page 9: Non-governmental environment external economic activity Areas for improvement Alexander Elinson, CEO NIPK Electron Co., St. Petersburg

Activities

Reduction of customs control period during declaration and customs clearance procedure

Customs control form and methods Improvement

Development of institute of customs representatives (i.e. customs brokers)

Expansion of easement list for authorized economic operator

Motivation conditions development for customs officers motivation

Development of proposals about change of foreign economic activity participant’s responsibility for customs administrative violations

RoadmapCustoms administration improvement

Reduction of documents quantity for customs clearance procedure

Reduction of customs control period during declaration and customs clearance procedure

Documents preparation costs decrease for customs declaring and clearance procedure

current figures trend forecast target figures

* The rating is actual for the beginning of 2012 The source: World Bank Group, BCG

Import Export

Import Export

Import Export

Page 10: Non-governmental environment external economic activity Areas for improvement Alexander Elinson, CEO NIPK Electron Co., St. Petersburg

THANK YOU FOR YOUR ATTENTION