FAS: unlawful customs restrictions for import of flowers must be abolished

On 12 August 2016, the Federal Antimonopoly Service (FAS Russia) warned the Federal Customs Service (FCS Russia) to stop actions that have elements of breaching Part 1 Article 15 of the Federal Law “On Protection of Competition”.

The grounds for intervention of the antimonopoly body were a petition from the “K” Department of the Federal Security Service. According to the information available to the law enforcement body, FCS Russia sent telex messages, restricting the number of customs stations in the Central and North-Western Federal Districts, where customs operations are allowed with 06 TN VED (1) goods, transported by road.

According to the telex messages, customs operations with the goods included in the above group should be performed only by the Customs Clearance and Control Unit of No. 2 Kronshtadt Customs Station, the Baltic Customs Office; the Customs Clearance and Control Unit of No. 2 Kiev Customs Station; Mozhaisk Customs Station, Moscow Regional Customs; and the Leningrad Customs Station, Moscow Regional Customs Office of the Central Customs Department.

According to the information obtained by the antimonopoly authority, such restrictions necessitated changes in the logistical flows for participants of foreign economic activities. The unlawful customs restrictions considerably increased the costs incurred by importers who were forced to completely terminate importing flowers to the Russian Federation.

To execute FAS warning, TCS Russia must withdraw the telex messages and notify the specialized participants of foreign economic activities (importers/ exporters) by 12 September 2016.

Reference:

1. TN VED (Commodity Classifier for Foreign Economic Activity) – the goods classifier used by the customs bodies and participants of foreign economic activities for the purposes of customs operations. Under Section II of the EAEU decision, the 06 TN VED Group includes live trees and other plants; bulbs, roots and other similar parts of plants; cut flowers and decorative garden-stuff.

2. Part 1 Article 15 of the Federal Law “On Protection of Competition” prohibits federal executive bodies to adopt acts and (or) exercise actions (omissions) that lead or can lead to preventing, restricting, eliminating competition.