Compliance Pitfalls in Communications with the Russian Customs: Overview of Anti-corruption Regulations and Enforcement Trends

Abstract

Interactions with Russian customs authorities may be associated with corruption-related risks that need to be observed and managed from the outset should a company consider engaging in the import operations through the Russian border. This article focuses on reviewing the Russian legal framework, statistics and the enforcement practice concerning the most widespread corruption offenses related to the interactions with the customs officials, as well as the recent developments in anti-corruption customs legislation. It covers the legal foundation of the anti-corruption regime in Russia and analyses its basic institutions for the best understanding of the applicable legal mechanisms. The article also contains recommendations for international companies, regardless of their legal presence in Russia, how to manage their relations with Russian partners and local subsidiaries to minimize the risks of unnecessary attention from the Russian customs authorities, as well as Russian and foreign enforcement authorities specializing on the corruption-related matters. These recommendations include, among others, the adoption and control of compliance policies by nonlocal supervisors and maintaining relations with the Russian customs authorities by joining the Charter of the Bona Fide Participants of the Foreign Trade. Offense, Prosecution, Compliance, Corruption, Anti-Corruption, Bribery, Officials, Prohibition, Review of Legislation, Customs, Criminal Liability, Administrative Liability, Federal Customs Service of the Russian Federation, Russia