CURRENCY CONTROL REQUIREMENTS FOR TRAVELERS TO RUSSIA

Summary: In December 2001, CS Russia issued a report about currency and customs regulations governing carrying in and bringing out of Russia currency and equivalents by foreign travelers. Unfortunately, cases when U.S. and other foreign citizens fail to comply with the regulations and consequently experience problems with Customs authorities continue to occur. Such failures can result in fines, detention, or arrest. This report is an additional attempt to increase awareness of U.S. travelers about proper currency registration with Customs authorities. End Summary.

U.S. and other foreign travelers coming to Russia should be aware of the following important rules of currency registration.

When Entering Russia

When entering Russia, American travelers should complete a Russian Customs declaration form indicating the amount of all currency and financial instruments, including travelers' checks being brought into Russia. Although Customs does not require the form be filled out on arrival in order to bring amounts under 10,000 U.S. dollars into Russia, travelers cannot take foreign currency out of Russia unless they can show via a stamped Customs declaration form that they had declared it upon arrival. Therefore, it is recommended that every traveler over 16 years old fills out a customs declaration.

Following is the detailed explanation of steps that should be taken upon arrival:

1) Filling out a declaration: Copies of the declarations are distributed on board the plane or available upon arrival after immigration services. In the declaration, please pay specific attention to field 3.1 (National and other currency in cash, currency valuables, articles made of precious stones in any form and condition). In this table, clearly state all currencies (US $, DM, Euro, etc) and use a separate line for each type of currency (to see the two-page sample declaration please refer to http://www.buyusa.gov/russia/en)

The traveler shall be liable for the information presented in the document. All amounts must be declared. Note that in case money is not declared, such amounts may legally be confiscated by the state officials.

2) Personally signing the declaration: Once all data is input and both sides of the declaration are filled out, the traveler must sign the declaration.

3) Pass through Immigration: The first check point you go through once you are off the plane is immigration. At the immigration services (row of glass booths after you get to the airport premises) present only your passport and visa. Do not submit your customs declaration to the immigration officer.

4 ) Obtaining a stamp at the Customs: After you pass through immigration services and pick up you luggage, you need to pass through customs.

A declaration form is not valid unless a Customs official stamps it upon entry into Russia, therefore make sure that you:

a) walk through the "Red Corridor" (watch for "Red Zone" signage) and do not pass through the "Green-Nothing to Declare" lane. b) present the filled out and signed customs declaration to a customs officer in a green uniform.

The customs officer stamps the declaration and makes notes in field 3.1.

When in Russia

Keep the declaration throughout your visit in Russia and present it to the customs officials upon departure from the country.

When Exiting Russia

Upon departure, travelers should present the stamped, incoming declaration form to the customs officer at the Red Corridor along with a completed, outgoing declaration form. Travelers need to declare any and all currency and financial instruments, including travelers' checks, being exported.

If the amount exceeds that shown on the original, declaration form, you are required to furnish proof that the excess amount originated from a non-Russian source and was obtained legally. Acceptable documents include a receipt proving either purchase of the cash or cash equivalents in Russia (obtained at the bank upon purchase of TC or foreign currency) or a wire-transfer of cash from abroad to the recipient in Russia.

Unfortunately, Customs does not consider an ATM receipt as sufficient proof of this. Dollars obtained through Embassy check cashing services are technically not considered legal for export, because the Embassy cashier is not considered a registered bank.

Penalties In Case of Failure To Comply

Failure to comply with Customs regulations can result in fines, detention, and/or arrest. If the amount of the currency equals or exceeds a certain sum (which at this point is just under 5,000 dollars and varies with exchange rate fluctuations), the infraction is considered a criminal case. The money will be confiscated, and the traveler may be arrested and prosecuted.

Potential Future Improvement Of The Regulations

Unlike foreigners who need to provide the above mentioned documentation in order to be able to carry any amount of money out of the country, Russian nationals may legally export up to US $1,500 without a declaration.

The American Chamber of Commerce in Russia (AmCham) is advocating for equal treatment under currency control laws for foreign nationals. In March 2002, AmCham President Andrew Somers reported that a high-ranking official confirmed the Government's intention to favorably resolve this issue in a draft currency control law. The Chamber has also asked the Russian Union of Industrialists and Entrepreneurs, an active participant of the Russian American Business Dialogue, to support its efforts in resolving of the problem. For more information about this and other topics related to Russia please do not hesitate to contact Oganes Sarkisov