RU

3.

INFRASTRUCTURE DEVELOPMENT


The REC Group is a single institution that acts as an agent integrating the various functions of the state related to export support and development. As the agent of the Russian government, the REC Group oversees the subsidies and participates in separate public functions and the provision of public services.

167

export licenses were issued to the participants of foreign economic activities in 2016 through the regional network of the REC Group

3.1

Agent of the Russian government

Extending the agent’s functions of the REC Group will make it possible to improve the support coverage and to increase the amount of exports supported. Meanwhile, REC’s participation in the selection, structuring, analysis and subsequent monitoring of state-subsidized projects will allow for efficient use of allocated funds.

In the future, the possibility will be explored of ensuring greater participation of the REC in the functions performed and services provided by the state, as well the issue on new introducing new types of subsidies for the exporters. These issues will be considered together with the interested federal agencies of the Russian Federation.

The current activities of the REC Group in terms of subsidies provision include managing the recovery of expenses for the following:

  • Certification, homologation and transportation of automobile industry and agricultural engineering products;
  • Registration of intellectual property items in the foreign markets;
  • Promoting high tech and innovative products and/or services in the external markets;
  • Exhibition and trade fair activities.

For certain state functions, the REC conducts expert reviews required for issuing export licenses to Russian companies. In 2016, due to the efforts of the regional network of the REC, a total of 167 licenses were issued to the participants of foreign economic activities.

The results of the REC in terms of its agency functions in 2016

Decree of the of the Russian government Number of
organizations
Total amount
of subsidies, million RUB
Volume of exports
supported, million RUB
Decree 905 of 10 September 2016 “On the allocation of subsidies from the federal budget to automobile manufacturers to compensate for part of the expenses for transportation, homologation and verification of the products’ conformity to international standards, as well as for participation in international organizations” 25 2,058 23,900
Decree 957 of 23 September 2016 “On the allocation of subsidies from the federal budget to agricultural engineering organizations to compensate for part of the expenses for transportation, homologation and verification of the products’ conformity to international standards” 7 175 2,799
Decree 1388 of 17 December 2016 “On the allocation of subsidies from the federal budget to the manufacturers of high tech products to compensate for part of the expenses for transportation, homologation and verification of the products’ conformity to international standards” 32 132 764 [i]
Decree 1368 of 17 December 2016 “On the allocation of subsidies from the federal budget to the Russian manufacturers to finance part of the expenses for the registration of intellectual property items in the external markets” 6 41 нет данных

3.2

Legislation improvement

The key objective of the REC as the headquarters of the priority program “International cooperation and export” is to create the legal basis for state export support.

As a single institution for the support and development of non-commodity exports, the REC is responsible for coordinating the efforts on creating a favorable export-oriented environment. The REC coordinates two priority projects — “System measures for the development of international cooperation and export” and “International cooperation and export in industry”, and has actively participated in another project titled “Exports of agricultural products”.

Another priority of the REC in terms of the said function is to reduce excessive administrative barriers and, consequently, improve exporter satisfaction with the exporting rules.

The efforts of the REC Group in these areas are aimed at increasing the following indicators by 2019:

  • Reducing the costs incurred by the exporter at seaports;
  • Reducing the number of customs documents required the clearance of goods at seaports;
  • Reducing customs clearance time and the time of preparing the documents for customs clearance at seaports.

An important focus area in the activities of the REC Group is the development of proposals on updating and improving the regulatory and legal framework in the sphere of export support. In 2016 a total of 36 regulatory legal acts in the sphere of export controls were passed with the participation of the REC Group, including legal acts on the allocation of subsidies to compensate for a part of the costs related to transportation and homologation of products, and on the provision of subsidized loans for high tech export-oriented enterprises, etc.

KEY FOCUS AREAS IN REDUCING EXCESSIVE ADMINISTRA

1

Providing analytical and methodological foundations for the reduction of excessive administrative barriers

2

Improving customs clearance procedures

3

Improving the procedure of verifying the applicability of zero rate and VAT refund

4

Improving the exchange control procedure

5

Improving the procedure of executing exports documentation

6

Streamlining the procedures for state regulation of exports

7

Eliminating excessive charges for crossing border checkpoints

36
regulatory legal acts in the sphere of exports regulation drafted with the participation of the REC Group were passed in 2016

The REC has also participated in the development of the “International cooperation and export in industry” priority program [i], consolidating the agenda of the Russian government in terms of initiatives aimed to increase exports.

In addition, the REC Group has contributed to:

  • Lightening the taxation (reduced number of documents to be submitted, export exemption from excise tax, Decree 1205 of the Russian government of 7 November 2015);
  • Relaxing exchange controls (lifting restrictions on the access of exporters to international factoring services, Federal Law 181-FZ of 29 June 2015);
  • Simplifying the customs regime (exemption from customs duties for customs operations with items free of customs duties, Federal Law 150- FZ of 8 June 2015);
  • Simplifying customs procedures (the possibility of duplicating document requests to exporters was excluded, Order 155-R of the Federal Tax Service of 27 May 2015).

3.3

Regional network expansion

In the context of geographical remoteness and concentration of export-oriented enterprises in different regions of Russia, REC Group faces the need to expand its regional network. Regional offices will help set up smooth liaison between REC Group’s head office and clients, lower the load on the head front office by processing the requests locally and, as a result, speed up the request processing.

The concept of REC Group’s regional development contemplates establishment of own and partner points of presence in the regions of Russia. 11 REC Group’s own regional unites were opened in 2016 on the base of local authorities of the Russian Ministry of Industry and Trade. The expansion of presence in other regions is planned to be carried out by signing partnership agreements with regional export support centers, local chambers of commerce and industry, regional units of public organizations and business associations. In 2017, REC Group plans to create partner points of presence in 15 regions of the Russian Federation. By the end of 2018, it is planned to create at least 35 points of presence in 25 regions.

Key tasks for the partners:

  • expand the client base by promoting REC Group’s services in the region of presence and assist clients in receipt of the services;
  • implement joint programs, including render services to REC Group’s clients using own resources: prepare presentations, translation, assist in e-commerce, ensure functioning of REC Educational Project’s operator;
  • search for the Russian supplier, including process requests for search of Russian manufacturers of goods (works or services) from foreign contractors.

REC GROUP’S NETWORK OF REGIONAL OFFICES AT THE END OF 2016

Kaliningrad St. Petersburg Nizhny Novgorod Voronezh Rostov-on-Don Yekaterinburg Samara Krasnoyarsk Khabarovsk Vladivostok Novosibirsk

11
regional offices of the REC Group were established in 2016 as part of the agencies of the Russian Ministry of Industry and Trade

REC Group’s own regional units not only give advice the clients can pick from REC Group’s product catalog, but also conduct due diligence of documents as may be necessary to obtain the export licenses for certain goods under the agreement with the Russian Ministry of Industry and Trade. Such regional offices liaise with the regional executive authorities and business community on the matters of exports development and exporter support.

Companies exporting certain goods now have an opportunity to file the application for the export license and the relevant package of documents through REC Group and its regional units. The regional offices conduct the due diligence of the documents send the expert report through the automated information system to the Russian Ministry of Industry and Trade. Once the decision is made to issue the license, the REC Group’s regional office issues the license on paper. Since their creation (November–December 2016), REC Group’s regional offices have assisted the exporters with obtaining 167 licenses for exports of certain types of goods.

3.4

Educational Project

The development of non-financial support is critical to unlock the export potential of Russian companies. Among the most significant tasks in this area are:

1

to raise awareness of potential and existing exporters of opportunities and features of exports operations;

2

to improve the qualification of employees of the regional export support infrastructure and representatives of the relevant governmental authorities.

In order to fulfill this task, REC launched in April 2016 the educational project for small and medium-sized businesses who are interested in developing their export potential. The training program combines the best practices from leading Russian experts in foreign economic activity and international experience.

In order for the knowledge system to be formed consistently, the educational program is divided into courses and offers a modular educational format. A participant of REC’s Educational Project can undergo the training across the whole program or study separate courses divided into topical units. Further, the trainees can choose an educational format which suits them best — on-site or distance training. Today, the training is offered on a free-of-charge basis.

Specialized educational portal www.ExportEdu. ru was launched for the sake of convenience. It solves three key tasks: information sharing, education and liaison.

The REC’s training program covers all spheres of export operations and includes studies of real export cases, clarifications of the legislative framework and state support measures.

The project is based on such key principles as relevance of the offered content which is generated from continuous work with leading experts and high quality of education maintained owing to the feedback from the trainees.

REC’S EDUCATIONAL PROJECT

REC
  • Develops the training program
  • Engages federal experts
REC
  • Trains the representatives of regional infrastructures
  • Uses them as coaches
COACHES
  • Train SMEs in the regions under REC’s training programs

TRAINING COURSES

1

Introduction to exports: export project lifecycle. State support to export-oriented enterprises

2

Effective marketing for exporters

3

Business communications in exports

4

Legal support of exports

5

Financial management
for exporters

6

Document support of exports

7

Customs clearance of exports

8

Logistics in exports

The project is being delivered in the regions of the Russian Federation, thus enabling the potential exporters to receive the required knowledge in place. In 2016, the on-site training was available to the learners from 13 regions of Russia: Volgograd Region, Nizhny Novgorod Region, Rostov Region, Samara Region, Sverdlovsk Region, Ulyanovsk Region and Chelyabinsk Region, Krasnoyarsk Krai and Khabarovsk Krai, Republics of Bashkortostan and Tatarstan, as well as Saint Petersburg and Khanty-Mansi Autonomous Area. In 2017, the number of member regions of REC’s Educational Project will grow to 30.

Key events in 2016 around promotion and expansion of REC’s Educational Project:

  • involvement in the task force of the Russian Chamber of Industry and Commerce for development of the professional standard “Foreign Economic Activity Manager”;
  • signing agreements with:
    • Plekhanov Russian University of Economics for joint development and implementation of the professional development program for master students and public officers;
    • International Institute of Management of Business Associations for cooperation to develop training courses and conduct training for businessmen;
  • Far East Forum of Businessmen “Business at the Far East: Development Strategy” (30 export-oriented enterprises from the Khabarovsk Krai);
  • “Made in Russia” International Export Forum (more than 60 export-oriented enterprises);
  • 4th International Conference “Foreign Economic Activity as the Driver of Efficient Development of Small and Medium-sized Businesses in Regions of the Russian Federation” in Omsk (35 export-oriented enterprises and export support organizations of the Siberian Federal District).

2016 KEY RESULTS

8
training courses are available to trainees
23
federal authors and experts
45
regional coaches
1,182
on-site trainees
3,400
remote trainees
4,88 OUT OF 5
is the average score of trainees’ feedback

2016 Project KPIs

Information and educational support Plan Actual Completed, %
On-site training
Number of developed export training courses 8 8 100 %
Number of conducted export training courses 8 8 100 %
Number of attested trainees 20 45 225 %
Number of SMEs representatives trained by coaches in regions under REC’s training courses 720 1,182 164 %
Distance training
Number of developed training courses 8 8 100 %
Number of remote trainees for the period 2,000 3,400 170 %