Biryulin K.N.
FSMTC of Russia Deputy Director

In the conditions of tougher competition in the world market of arms and combat materiel, the military and technical cooperation between the Russian Federation and foreign states (MTC) is to continuously adapt to its new techniques, including technologies and information.

Therefore, to further improve the MTC system, it is necessary, first of all, to satisfy fair requirements of foreign customers (consumers) of export military purpose products (MPP), and counteract practice of mispresenting data about products of Russian manufacturers through the centralised control and coordination of efforts of federal authorities and companies of the military-industrial complex (MIC) as actors of the international cooperation.

That being said, a high level of governance centralisation in the Russian MTC system does not interfere with effective application of its market mechanisms.

In these conditions, the cataloguing system of export MPP is to provide not only improved information support for product operations at all stages of their life cycle, but also their higher competitiveness.

In view of general tendencies of strengthening a role of the state in governing MTC, application of the international cataloguing system as information and methodological mainstay to control deliveries of export products will enable to improve coordinated measures for deliveries of export MPP and exclude unnecessary competition between Russian MPP exporters.

Further, there are plans to establish a full cycle system of information support for after-sales service based on the international codification system, in which case, our task is to do justice to ourselves.

Such system based on the international cataloguing system will enable to raise manageability of information support processes for after-sales service of export MPP.

Besides, it will promote to a greater extent satisfaction of requirements of foreign customers to information support for MPP deliveries, making possible continuous monitoring of foreign and mutual trade operations, and development of electronic business in MTC.

Developing a general approach to elimination of legal barriers to the use of electronic documents in international and mutual trade at accession to WTO and within the single customs territory of the Customs Union, FSMTC of Russia together with Rosoboronexport OAO signed the Agreement for Transition to Tier 2 Sponsorship level of participation in the NATO cataloguing system, in fact, recognized as the international system, in respect of export-import operations within MIC.

Transition to Tier 2 Sponsorship level of participation of Russia in the international cataloguing system in respect of export-import operations within MIC allowed the Center for cataloguing of the state customer on export-import transactions within MTC (TsCGZ) to receive the status of the National Cataloguing Bureau (NCB) of Russia.

As a result, today the Cataloguing Center is a unique point of access to the catalogue information of Cataloguing Centres of the countries of foreign customers delivered on requests through NMBS e-mail within the data telecommunication exchange.

Works are underway to harmonize the Federal System for Cataloguing Products (FSCP) and the NATO Cataloguing System, including improvement of information technology for cataloguing export MPP according to the international standards.

This area of developing FSCP has been supported by the Defence Ministry of Russia, FSMTC of Russia, the Industry and Trade Ministry of Russia, and Rosoboronexport OAO.

Solution to regulating legal relations in respect of cataloguing export (import) MPP will make it possible to reduce the amount and cost of works on cataloguing export supply items through the centralised management of cataloguing works carried out by MTC affiliated entities, and building of a single information resource – the summary catalogue of export MPP.

Development of electronic business in MTC has become possible because cataloguing as recognised market mechanism is considered as objective tool for information support of the system of electronic auctions for purchase of goods, works and services to meet federal and regional requirements, formulate (based on relevant regulatory documents of the international cataloguing system) tender and contract requirements to cataloguing by foreign customers. Cataloguing per se is the only mechanism recognised worldwide to give electronic description of goods, works and services for their order, enabling to define and compare them by the set of stock parametres.

Stock number of the supply item assigned in the cataloguing system is the means for end-to-end management of processes of delivery of assets, beginning from formation and processing of requests for delivery of spare parts, issue of consignment notes and ending with recording and distribution of assets to a foreign customer.

As all supply items are assigned electronic digital codes, processing of all information can be automated.

Participation of Russia in such information system is our common success enabling to provide reliability of information about export MPP and suppliers, included in the NATO catalogue and applied to purchases of MPP by operators of countries of foreign customers in the international arms market.

At present, this market is highly volatile and requires quick response and new approaches to business. To retain lead positions in such complex conditions, it is necessary to analyze and capitalize on all advanced business techniques. Use of electronic communications becomes a key driver for survival of the companies in tough competition environment.

In general, growing interest to electronic communications and electronic commerce in the last years is in many respects connected with efforts to simplify and facilitate process of transactions. Losses suffered, for example, by foreign trade companies because of delays of consignment of goods on the border, poor automation level in processing requests of foreign customers can often reduce competitive appeal of national products in the international arms market.

This tendency of current trade continues to develop. For this reason, today, investments in electronic business are a priority for many organisations.

Development of information technology changes ways of conducting business. Electronic information exchange between the enterprises enables to essentially raise efficiency and effectiveness of their operations through decrease in communication expenses, exclusion of possible errors committed by the personnel, reduced transaction time, and provides speed and accuracy of information receipt.

In simple words, electronic business can be defined as implementation of orders, payment and deliveries of goods and services with use of standard information exchange technologies.

Automation of international exchange of catalogue information about export MPP creates the precondition for round-the-clock electronic business functioning. Thus, a number of potential customers for goods and services of an enterprise can be increased, as taking into account global and exterritorial nature of the information system, always there will be customers for whom those or other Russian goods (services) are necessary right now.

In view of mutual interest in development of foreign (mutual) trade relying on the application of information technologies and increase in their efficiency and effectiveness through acceptance of unified rules for automated exchange of the catalogue data, Russia pursues policy for updating legislative, regulatory and methodological base of cataloguing, developing and introducing automated systems and their software.

Transition to Tier 2 Sponsorship level of participation in NCS will enable Russian MIC affiliated entities:

To carry out DEP deliveries in full conformity with internationally recognised requirements on codifying of items of supply and their integrated logistics support;

To independently include in the NCS Master Catalogue (involving NCC DEP capabilities) the information about exported items of supply specifying Russian Stock numbers and suppliers of these products;

To monitor reliability of information about suppliers of spare parts to DEP of Russian/Soviet origin included in the NATO Master Catalogue by other NCS participating countries, and, if necessary, modify the same excluding any possibility to place in this catalogue any false information about suppliers of such DEP; and

To obtain from the NATO Master Catalogue necessary information about supply items.

Date of publication: 25.09.2012




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