Problems relating to Trade and Investment on Russia
23. Inefficient administrative procedures, regimes and practices |
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Issue |
Issue details |
Requests |
Reference |
| (1) Vexatiously Complex Licences and Approval Procedures and Frequent Changes | - Procedures are complex on Licences and Approvals as multiple documents are required. The response varies by each governmental personnel at the window, so that the confirmation process is required each time. Especially on taxation, the required volume of documents is quite substantial, so that a greater number of accounting staff must be deployed for the GOR issues. Example: Implementation of import procedures; the requisite documents differ at each point of customs clearance. - Seaport development is severely obstructed by the complex and time consuming procedures for acquisition of licences and permits. In effect, an applicant has no alternative but to work jointly with enterprises already granted with licences and permits. |
- It is requested that GOR: -- clearly identifies the requisite documents at its homepage, etc., and -- promotes electronic filing of application. - It is further requested that GOR simplifies and makes possible electronic filing of taxation documents. - It is requested that GOR provides of One-Stop-Service. |
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| (2) Complex Procedures for Establishment, etc. of Legal Entity | - Extreme complexities accompany establishment or closure of company, branch office, and representative office. In addition to the need for advancing procedures with plural competent authorities in parallel, insufficient dissemination into local areas of the central federal government's policies adds fuel to the fire. Even large legal consulting firms are unable to grasp the requisite local requirements. | - It is requested that GOR takes steps to streamline and clarify the procedures for establishment or closure of legal entities. | |
| (3) Confusions by Jurisdictional Change of Office Registration Supervisory Service | - Change in ministries and agencies for registration of branches/representative offices: Since January 2015, jurisdictional change has taken place from state registration service to federal taxation service. However, in lieu of transferring the existing registration documents by the Russian governmental services, Federal Taxation Service (FTS) requires renewed registration for opening the office. FTS's instructions are extremely ambiguous, while FTS does not accept the registration documents newly prepared. Extreme confusions continue. | - It is requested that GOR takes step to rectify the problems as soon as possible. | |
| (4) Russian Language Requirement on Procedural Issues | - Compulsory use of the Russian Language serves as steep entry barriers on business to foreign funded enterprises in major procedural documents including documents for filing tax return. | - It is requested that GOR accepts the use of English in parallel as an alternate acceptable language. | |
| (5) Inadequate Postal Service | - For the purpose of receiving dividends from an Ukranian company, it has taken more than 30-days for SCER just to receive the certificate that SCER is a legal entity, duly incorporated under the law of the Russian Federation. The certificate was issued and mailed via Russian Post by the Russian federal tax service. | - It is requested that the Russian federal tax service enables the receipt of the certificate directly at its office, as the postal service does not function properly. | |
| (6) Dual Regulations on Vehicle Drivers | - While the labour law compels vehicle drivers to have periodic health examination, at the same time, Federal Law on traffic safety requires health examination every morning. This is a dual restriction. | - It is requested that GOR takes steps to remove the relevant provisions from Federal Law on traffic safety, or clearly identifies persons subject to this provision. (Taxi company, etc.) | - Article 20, 23 of Federal Law No.196 of December 10, 1995 On traffic safety |
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