Russian Customs to Appraise Market Value of Seized Merchandise

MOSCOW, Oct 20 (Prime-Tass) -- Russia's Federal Customs Service is expected to appraise the market value of seized merchandise before transferring it to other governmental bodies for further sale, the service said in a regulation obtained by Prime-Tass Friday.

The customs has ordered that one of its divisions sets up a system for appraisal of the seized merchandise.

Following the appraisal, the merchandise is transferred to the Russian Federal Property Fund, Federal Court Bailiff Service or units of the Interior Ministry, the customs service said.

The move is aimed at creating a single database of seized merchandise and at establishing efficient control over income from the seized merchandise sales, the service said.

Seized merchandise is believed to be a major source of income for corrupted law enfrocement officials in Russia.

Market observers alleged that in numerous instances corrupted officials initiated transfers of customs-seized merchandise at deeply discounted prices to little-known companies, which later re-sold it at a profit but still at below-market prices.

Mobile handset retailers were first alleged victims of the practice, initially having their merchandise seized and then their profit margins squeezed by dumping.

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Posted to the site on 20th October 2006