WHAT IS CUSTOMS CARD

Customs Card is a dedicated interbank electronic payment system using plastic smart cards (customs cards). The system was developed on the initiative of the National Association of Customs Brokers (NACB). The customs card is issued by lending institutions and is a tool providing access to the account maintained by the customs payer with the issuing bank. The card allows the payer to make payments to the customs directly at the customs office at the time of completing customs formalities. The application of the card is regulated by the payment technology guidelines, approved by Directive 757 dated August 3, 2001, which was registered with the Russian Ministry of Justice on 10 August 2001, registration number 2865.

Customs Card is an international payment system. Members of the Eurasian Economic Community (EAEC), including the Russian Federation, Republic of Belarus, Republic of Kazakhstan, Republic of Tajikistan and Kyrgyz Republic have ratified agreements on the use of customs cards in the transit of goods on the territory of the EAEC Members. Further development of Customs Card as an international payment system is connected with the introduction of a shared information system which would interconnect the customs authorities of the EAEC Members.

ADVANTAGES
MAKING ANY CUSTOMS PAYMENTS AT ANY CUSTOMS OFFICE IN RUSSIA 24 HOURS A DAY, 7 DAYS A WEEK The State Customs Committee of Russia (GTK) requires availability of card processing equipment from all customs offices without any exception. All customs payment transactions using customs cards are handled by customs officials. Today there are over 350 electronic terminals within the Customs Card payment system, and their number is steadily increasing. EASIER AND FASTER CUSTOMS CLEARANCE (General Advantages) No need to make advance payments to the customs The customs card eliminates the need for the payer to remit customs payments with their breakdown by types to the customs' bank account several days prior to the clearance commencement. A customs official debits the payer's account at the time of submitting the customs declaration. Therefore, the customs card provides an "instant" transfer of customs payments. Clearing goods without advance planning The card allows the payer to complete customs formalities at several customs offices at a time without scheduling the particular customs office, the goods to be cleared and the scope of customs formalities in advance.

ADVANTAGES
Prompt additional payments If necessary (e.g. due to the customs value adjustment), additional payment of the outstanding amount can be made promptly and without interrupting the customs clearance procedure. No need to adjust overpayments Payment by customs card directly at the customs point or at the payment office rules out any possibility of overpayment and thus permits the payer to avoid financial losses. SIMPLER AND CHEAPER EXCISE STAMP RECEIPT PROCEDURE Securing importer's obligations When an importer receives excise stamps, an authorized customs official reserves money on the card account as a security of the importer's obligations. In this case the importer does not need to divert financial resources to deposit the money with the customs' account or issue a bank guarantee. The money remains in the importer's bank account. Making customs payments without using any additional financial resources At the importer's discretion, the duties payable on the excisable goods declared under the regime for release of the goods into free circulation may be deducted from the reserved amount using the customs card. CUSTOMS PAYMENTS FOR TRANSIT AND SHIPMENT OF GOODS PLACED UNDER CUSTOMS CONTROL The customs card eliminates the need to deposit money with the customs' account in advance or to issue a bank guarantee as a security of the liability to pay the duty. The guarantee of future customs payments is the sum reserved on the customs card account. The reservation is made by a customs official. MORE EFFICIENT FINANCIAL MONITORING AND CUSTOMS PAYMENTS CONTROL Availability of detailed payment information reflected in payment documents The payer using the customs card for customs payments receives a statement of his special card account, which contains information about the amount, purpose and date of payment, strictly specific to the customs which effected clearance of the goods Structuring of payment procedure to exclude any possibility of fraud or misuse The customs card can be only used to make customs payments to the accounts maintained by customs offices with the Federal Treasury. Any other payments are blocked by the customs card chip. Thus, any money in the bank account of an entity participating in foreign economic activity cannot be misused. Even if the customs card is lost, no unauthorized person is able to use the money for personal purposes.