Russian Import & Export Permits: EAEU Legal Guide

April 30, 2023

BRACE Law Firm ©

The regulatory permit procedure for importing and exporting goods enables the regulation of export and import trade turnover in various economic and political situations within the country and globally. Special economic measures of the Russian Federation were adopted in response to the actions of the United States and the foreign states and international organizations that joined them.

Federal Law No. 281-FZ dated December 30, 2006, On Special Economic Measures and Compulsory Measures [1] (the "Law No. 281-FZ") determines the composition of special economic measures. Simultaneously, to ensure the security of the Russian Federation and the uninterrupted operation of industry, the President of the Russian Federation signed Decree No. 100 dated March 8, 2022, On the Application of Special Economic Measures in the Sphere of Foreign Economic Activity to Ensure the Security of the Russian Federation (the "Decree No. 100"). This Decree established the possibility of restricting the export of products and raw materials outside of Russia and their import into the Russian Federation according to lists determined by the Government of the Russian Federation.

To implement Decree No. 100 regarding restrictions on the export of products and raw materials, the Russian Government adopted Resolution No. 312 dated March 9, 2022, On the Introduction on a Temporary Basis of a Permit Procedure for the Export of Certain Types of Goods Outside the Territory of the Russian Federation (the "Resolution No. 312") and Resolution No. 311 dated March 9, 2022, On Measures for the Implementation of Decree of the President of the Russian Federation No. 100 dated March 8, 2022 (the "Resolution No. 311").

Permit Procedure for the Import and Export of Goods Into and Out of the Russian Federation

Resolution No. 312 established a permit procedure for the export of certain types of agricultural machinery and parts thereto, specific types of vehicles, their parts and components, various industrial products, specific types of telecommunications equipment, parts and materials, certain types of laboratory, mining, geological exploration, and geophysical equipment and parts thereto, and certain types of medical devices to EAEU member states through December 31, 2023.

The export permit procedure is implemented by issuing export permits:

• For certain types of agricultural machinery [2] and parts thereto by the Ministry of Agriculture of the Russian Federation; [3]
• For certain types of vehicles [4], their parts, and components by the Ministry of Transport of the Russian Federation;
• For certain types of industrial products [5] by the Ministry of Industry and Trade of the Russian Federation;
• For certain types of telecommunications equipment[6], parts, and materials by the Ministry of Digital Development, Communications and Mass Media of the Russian Federation;
• For certain types of laboratory, mining, geological exploration, and geophysical equipment [7] and parts thereto by the Ministry of Natural Resources and Environment of the Russian Federation;
• For goods included in Appendix No. 6 [8] of Resolution No. 312 by Roszdravnadzor.

The respective ministries have established recommended permit application forms in the orders approving the procedures for issuing such permits.

Resolution of the Government of the Russian Federation No. 850 dated May 11, 2022, On Amending Certain Acts of the Government of the Russian Federation introduced significant changes to the lists of goods subject to the export permit procedure.

The Federal Customs Service, the Ministry of Internal Affairs of the Russian Federation, the Border Service of the Federal Security Service of the Russian Federation, and the Federal Service of the National Guard Troops of the Russian Federation exercise control over the export permit procedure within their respective competencies.

Foreign trade participants are subject to administrative liability for violating the requirements of Resolution No. 312, for example:

• Resolution of the Dzerzhinsky District Court of the city of Orenburg dated October 27, 2022, No. 12-468/2022, On the Annulment of Acts on Administrative Liability under Article 16.3 of the CAO RF (non-compliance with prohibitions and restrictions on the import of goods into the customs territory of the Customs Union or the Russian Federation and their export);
• Resolution of the Kuibyshevsky District Court of the city of Omsk dated September 2, 2022, in Case No. 5-1886/2022, On Administrative Liability under Article 16.3 of the CAO RF (non-compliance with prohibitions and restrictions on the import of goods into the customs territory of the Customs Union or the Russian Federation and their export);
• Resolution of the Saratov Regional Court dated April 3, 2023, in Case No. 12-34/2023(5-3-2/2022), On Administrative Liability under Article 16.3 of the CAO RF (non-compliance with prohibitions and restrictions on the import of goods into the customs territory of the Customs Union or the Russian Federation and their export).

Pursuant to Clause 2 of Resolution No. 312, the permit procedure for exporting goods outside the Russian Federation to EAEU member states does not apply to:

• Goods originating from the Russian Federation accompanied by a certificate of origin in the ST-1 form [9] or another certificate confirming the Russian origin of the goods;
• Goods exported from the Russian Federation as part of international transit shipments that begin and end outside of the Russian Federation;
• Goods moved between parts of the Russian Federation through the territories of foreign states or between Russian ports without entering foreign ports;
• Goods exported from the Russian Federation to support the activities of Russian military formations located in foreign states;
• Goods exported under licenses from the Federal Service for Technical and Export Control, licenses and lists from the Federal Service for Military-Technical Cooperation, lists approved by the Ministry of Defense of the Russian Federation, lists from the Ministry of Industry and Trade of the Russian Federation within the framework of intergovernmental agreements on production and scientific-technical cooperation of defense industry enterprises, or permits from the Export Control Commission of the Russian Federation;
• Goods (regardless of origin) exported to the Donetsk People's Republic, the Lugansk People's Republic, the Republic of Abkhazia, and the Republic of South Ossetia;
• Goods exported from the Russian Federation to the Republic of Belarus within the framework of the Union State;
• Goods exported from the Russian Federation to support the activities of Russian organizations located in Baikonur (Republic of Kazakhstan) and within the Baikonur complex;
• International transport vehicles;
• Goods produced (manufactured, obtained) in special economic zones, specific economic zones, or equivalent territories located in the Russian Federation using foreign goods placed under the free customs zone procedure;
• Goods produced (manufactured, obtained) at free warehouses located in the Russian Federation using goods placed under the free warehouse procedure;
• Goods exported by the State Atomic Energy Corporation Rosatom or its organizations;
• Goods exported from the Russian Federation to support the activities of vessels, structures, and installations over which the Russian Federation has exclusive jurisdiction;
• Goods exported from the Russian Federation as supplies;
• Spare parts and special equipment exported from the Russian Federation intended for the processing or protection of cargo, or the maintenance, repair, and/or operation of international transport vehicles;
• Reusable packaging (wooden, metal, glass, plastic, special, etc.) placed under the re-export procedure to complete a temporary admission procedure or under the temporary export procedure;
• Equipment moved by media representatives of EAEU member states, sports teams of EAEU member states, or Russian foreign trade participants to organize displays at exhibition and fair events abroad;
• Goods exported by individuals for personal use;
• Goods originating from the Donetsk People's Republic and the Lugansk People's Republic accompanied by a certificate of origin issued by the authorized bodies (organizations) of the Donetsk People's Republic and the Lugansk People's Republic;
• Goods exported by Rospotrebnadzor, its subordinate research organizations, and suppliers (contractors) under contracts concluded to implement Russian Government orders on providing assistance to foreign states, according to lists approved by Rospotrebnadzor;
• Goods exported outside the Russian Federation to support the activities of Russian diplomatic missions and consular offices;
• Goods exported outside the Russian Federation to support the activities of Russian trade missions in foreign states and for the repair and/or construction of real estate used by such trade missions, according to lists from the Ministry of Industry and Trade of the Russian Federation;
• Goods exported outside the territory of the Russian Federation that were temporarily imported after Resolution No. 312 came into force for international exhibitions (fairs) in the Russian Federation;
• Goods exported to support activities in the Antarctic and Arctic intended for research work in the interests of the Russian Federation or to support Russian research expeditions, according to lists approved by the Federal Service for Hydrometeorology and Environmental Monitoring.

Certain types of goods are also subject to temporary quantitative export restrictions regulated by relevant regulatory documents, such as:

• Resolution of the Government of the Russian Federation No. 2353 dated December 20, 2022, On the Introduction of a Temporary Quantitative Restriction on the Export of Certain Types of Fertilizers;
• Resolution of the Government of the Russian Federation No. 1392 dated August 6, 2022, On the Introduction of a Temporary Quantitative Restriction on the Export of Certain Types of Sulfur and Amending Certain Acts of the Government of the Russian Federation;
• Resolution of the Government of the Russian Federation No. 2535 dated December 30, 2022, On the Specifics of Establishing and Distributing Tariff Quotas, Establishing Export Customs Duty Rates for the Export of Certain Types of Agricultural Products from the Territories of the Donetsk People's Republic, the Lugansk People's Republic, the Zaporozhye Region, and the Kherson Region and Amending Clause 2 of Resolution of the Government of the Russian Federation No. 1580 dated September 8, 2022;
• Resolution of the Government of the Russian Federation No. 1358 dated July 30, 2022, On the Introduction of a Tariff Quota for the Export of Ferrous Metal Waste and Scrap Outside the Territory of the Russian Federation to States that Are Not Members of the Eurasian Economic Union and Amending the Export Customs Duty Rates for Goods Exported from the Russian Federation Outside the Customs Territory of the Eurasian Economic Union, etc.

In accordance with Resolution No. 311, a ban on the export of goods listed in Appendix No. 1 of Resolution No. 311 is in effect until December 31, 2023. Such goods include, for example:

• Sterile surgical catgut, similar sterile suture materials, and sterile adhesive tissues for surgical wound closure;
• Dental cements and other dental filling materials;
• Bone reconstruction cements;
• Photographic plates and flat sensitized unexposed films made of any material other than paper, cardboard, or textiles; X-ray films;
• Articles used for surgical, medical, or hygienic purposes, not packaged for retail sale, made of paper pulp, paper, cellulose wadding, or webs of cellulose fibers;
• Disposable gowns used by patients and medical personnel during surgical operations;
• Reservoirs, tanks, vats, and similar containers made of ferrous metals for any substance (other than compressed or liquefied gas) with a capacity exceeding 300 liters;
• Nuclear reactors;
• Unirradiated fuel elements (fuel rods) for nuclear reactors;
• Equipment and devices for isotope separation, etc.

Furthermore, goods specified in Appendix No. 2 of Resolution of the Government of the Russian Federation No. 311 dated March 9, 2022, On Measures for the Implementation of Decree of the President of the Russian Federation No. 100 dated March 8, 2022, are exported outside the Russian Federation until December 31, 2023, by decision of the Chairman of the Government of the Russian Federation, the First Deputy Chairman, a Deputy Chairman, or the Deputy Chairman — Ministry of Industry and Trade of the Russian Federation, based on proposals from the Ministry of Industry and Trade of the Russian Federation.

For goods specified in Appendix No. 2 of Resolution of the Government of the Russian Federation No. 313 dated March 9, 2022, On Measures for the Implementation of Decree of the President of the Russian Federation No. 100 dated March 8, 2022, an export ban is in effect until December 31, 2023, provided that such goods are exported outside the Russian Federation under foreign trade contracts concluded with persons registered in foreign jurisdictions.

Permits and Licenses for the Import and Export of Goods

Sub-clause 5 of Clause 1 of Article 46 of the Treaty on the Eurasian Economic Union[10] establishes a permit procedure for the import and/or export of goods as a non-tariff regulation measure. Non-tariff regulation measures are defined by the Decision of the Board of the Eurasian Economic Commission No. 30 dated April 21, 2015, On Non-Tariff Regulation Measures (the "Decision No. 30"), which also includes the permit procedure for importing goods into the EAEU customs territory and/or exporting them from the EAEU customs territory.

The permit procedure is implemented through licensing and other administrative measures for regulating foreign trade activity, established in accordance with the provisions defined in the appendices to Decision No. 30 regarding:

• The import into and export from the EAEU customs territory of human organs and tissues, blood and its components, and samples of human biological materials;
• The export of mineral raw materials from the EAEU customs territory;
• The export of wild live animals, aquatic biological resources, certain wild plants, and wild medicinal raw materials from the EAEU customs territory;
• The export from the EAEU customs territory of rare and endangered species of wild live animals and wild plants included in the red books of EAEU member states;
• The import into and export from the EAEU customs territory of hazardous waste;
• The export from the EAEU customs territory of cultural valuables, national archive fund documents, and original archival documents;
• The import into and export from the EAEU customs territory of encryption (cryptographic) means;
• The import into and export from the EAEU customs territory of narcotic drugs, psychotropic substances, and their precursors;
• The import into the EAEU customs territory of plant protection products (pesticides);
• The export from the EAEU customs territory of collection materials on mineralogy, paleontology, and fossil animal bones;
• The import into and export from the EAEU customs territory of precious stones;
• The import into and export from the EAEU customs territory of precious metals and raw materials containing precious metals;
• The import into the EAEU customs territory of civil-use radio-electronic means and high-frequency devices, including those built-in or included in other goods;
• The import into and export from the EAEU customs territory of special technical means intended for the secret acquisition of information;
• The import into and export from the EAEU customs territory of civil and service weapons, their main (component) parts, and ammunition; [11]
• The export from the EAEU customs territory of information on subsoil by regions and deposits of fuel, energy, and mineral raw materials;
• The import into the EAEU customs territory of poisonous substances that are not precursors of narcotic drugs and psychotropic substances;
• The import into and export from the EAEU customs territory of ozone-depleting substances and products containing them;
• The import into the EAEU customs territory of medicinal products;
• The import into the EAEU customs territory of plant protection products and other persistent organic pollutants for use in laboratory-scale research or as a reference standard.

The export and import of goods included in the unified list of goods [12] subject to non-tariff regulation measures in trade with third countries are carried out on the basis of licenses and permits. The rules for the issuance of these documents are defined in the appendix to the Protocol on Non-Tariff Regulation Measures in Relation to Third Countries. [13] The application for a license and the issuance of the license itself are performed in accordance with the instructions approved by the Commission. [14]

The validity period of a single-use license cannot exceed one year from its effective date. The validity of a single-use license may be limited by the term of the foreign trade contract or the term of the document serving as the basis for the license issuance. For goods subject to quantitative export and/or import restrictions, or an import quota as a special safeguard measure, or tariff quotas, the license validity ends within the calendar year for which the quota is established.

To obtain a license, the applicant must submit the following documents and information:

• An application for a license, completed and formatted in accordance with the instructions for issuing an export and/or import license for certain types of goods;
• An electronic copy of the application in the format approved by the Commission (or according to member state legislation prior to such approval);
• A copy of the foreign trade agreement (contract), its appendices, and/or supplements (for a single-use license), or, in the absence of a contract, a copy of another document confirming the intentions of the parties;
• A copy of the document (or information, if provided for by member state legislation) regarding tax registration or state registration;
• A copy of the license for the licensed type of activity or information regarding its existence (if provided for by member state legislation), if such activity is related to the circulation of goods subject to licensing within the EAEU customs territory;
• Other documents (information) if specified by the Commission's decision introducing the licensing for the corresponding goods.

The suspension or termination of a license is carried out in accordance with the Decision of the Board of the Eurasian Economic Commission No. 34 dated April 19, 2016, On the Application of Non-Tariff Regulation Measures.

Permits are issued in accordance with the instructions for issuing permits for the export and/or import of certain types of goods. Permits are issued without restrictions to any foreign trade participants based on the following submitted documents:

• A written application;
• A draft permit in hard copy;
• An electronic copy of the draft permit in the format approved by the Commission (or according to member state legislation prior to such approval).

The validity period of a permit is limited to the calendar year in which it was issued. Before customs declaration, the foreign trade participant must submit the original permit to the customs authority, which, upon placing the permit under control, issues a copy with a mark indicating it has been placed under control. If the authorized body issued the permit as an electronic document, the participant is not required to submit a hard copy original to the customs authority of their state. The Decision of the Board of the Eurasian Economic Commission No. 45 dated May 16, 2012, On a Unified Form of a Conclusion (Permit Document) for the Import, Export, and Transit of Certain Goods Included in the Unified List of Goods Subject to Non-Tariff Regulation Measures in Trade with Third Countries and Methodological Instructions for Completing It defines the form and completing instructions.

Information interaction regarding issued conclusions (permit documents) is carried out in accordance with the Recommendation of the Board of the Eurasian Economic Commission No. 43 dated November 22, 2022, On Approaches to Information Interaction Between State Authorities of Member States of the Eurasian Economic Union Regarding Issued Conclusions (Permit Documents).

Furthermore, to accelerate customs operations and optimize customs control when moving goods across the EAEU customs border, foreign trade participants provide preliminary information about the goods [15] in accordance with the procedures established for air transport, [16] road transport, [17] rail transport, [18] and water transport. [19]

Information interaction between the authorities of EAEU member states is a key element for implementing the general process of regulating foreign and mutual trade. Customs authorities obtain information from export and import licenses and permits during customs operations by request within the integrated information system of the EAEU.[20] The use of document databases for regulating foreign and mutual trade is carried out in accordance with the Decision of the Board of the Eurasian Economic Commission No. 136 dated August 21, 2018, On Approval of the Rules for Implementing the General Process 'Use of Databases of Documents Formed by Authorized Bodies of Member States of the Eurasian Economic Union in Regulating Foreign and Mutual Trade, Including Those Submitted During Customs Operations to Confirm Compliance with Prohibitions and Restrictions'.

Liability for Non-Compliance with the Permit Procedure

Violation of the established prohibitions and restrictions on moving goods across the EAEU or Russian border may result in administrative [21] or criminal liability [22].

Non-compliance with the prohibitions and restrictions on the import of goods into the EAEU or the Russian Federation and/or the export of goods from the EAEU or the Russian Federation established by international treaties, EAEU decisions, or Russian regulatory acts entails an administrative fine:

• On citizens: from 1,000 to 2,500 rubles, with or without confiscation of the goods that were the objects of the administrative offense, or confiscation of the objects of the administrative offense;
• On officials: from 5,000 to 20,000 rubles;
• On legal entities: from 50,000 to 300,000 rubles, with or without confiscation of the goods that were the objects of the administrative offense, or confiscation of the objects of the administrative offense.

Administrative liability is the most common category of cases related to non-compliance with established prohibitions and restrictions, for example:

• Resolution of the Arbitration Court of the Yaroslavl Region dated January 13, 2023, in Case No. A82-18513/2022, On Contesting Administrative Liability under Article 16.3 of the CAO RF. Ruling: The claim was denied.
• Resolution of the Ninth Arbitration Appellate Court dated December 24, 2022, No. 09AP-73964/2022, in Case No. A40-163856/2022, On the Annulment of a Resolution on Liability under Article 16.3 of the CAO RF for Non-Compliance with Export Prohibitions and Restrictions. During declaration, the society submitted a conclusion on the origin of the goods, which is not a document granting the right to export goods from the Russian Federation. The procedure and statute of limitations for liability were observed. Ruling: The claim was denied.
• Resolution of the Twelfth Arbitration Appellate Court dated December 8, 2022, No. 12AP-9776/2022, in Case No. A06-5890/2022, On Declaring Unlawful and Annulling a Resolution on Administrative Liability under Part 1 of Article 16.3 of the CAO RF. Ruling: The claim was denied.

The illegal movement across the EAEU customs border or the Russian state border with EAEU member states of potent, poisonous, toxic, explosive, or radioactive substances, radiation sources, nuclear materials, firearms, their main parts (barrel, bolt, cylinder, frame, receiver), explosive devices, ammunition, other weaponry, military equipment, or raw materials, materials, equipment, technologies, or intellectual property results that could be used to create weapons or military equipment—as well as strategically important goods, resources, or cultural valuables in large amounts, or highly valuable wild animals and aquatic biological resources of species listed in the Red Book of the Russian Federation and/or protected by international treaties, their parts and derivatives — is punishable by imprisonment for a term of 3 to 7 years. This may include a fine of up to one million rubles (or the amount of the convict's income for up to 5 years) and restriction of liberty for up to one year.

Given the current political and economic circumstances, the permit procedure for importing/exporting goods enables the regulation of trade for various groups of goods based on the need for control and the prevailing foreign economic conditions. Generally, once the circumstances necessitating the permit procedure cease or the situation stabilizes, export and import controls are terminated.

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References

1. Sub-clause 4 of Clause 2 of Article 3 of the Law No. 281-FZ.
2. Order of the Ministry of Agriculture of Russia No. 142 dated March 13, 2022, On Approval of the Procedure for Issuing Permits for the Export from the Russian Federation of Certain Types of Agricultural Machinery and Parts Thereto Specified in Appendix No. 1 to Resolution of the Government of the Russian Federation No. 312 dated March 9, 2022.
3. Resolution of the Second Arbitration Appellate Court dated April 6, 2023, No. 02AP-1221/2023, in Case No. A82-19213/2022, On the Annulment of Acts on Administrative Liability under Article 16.3 of the CAO RF. Ruling: The claim was denied.
4. Order of the Ministry of Transport of Russia No. 99 dated March 24, 2022, On Approval of the Procedure for Issuing Permits for the Export Outside the Territory of the Russian Federation of Certain Types of Vehicles, Their Parts and Components According to the List in Appendix No. 2 to Resolution of the Government of the Russian Federation No. 312 dated March 9, 2022.
5. Order of the Ministry of Industry and Trade of Russia No. 797 dated March 14, 2022, On Approval of the Procedure for Issuing Permits for the Export Outside the Territory of the Russian Federation of Certain Types of Industrial Products According to the List in Appendix No. 3 to Resolution of the Government of the Russian Federation No. 312 dated March 9, 2022.
6. Order of the Ministry of Digital Development, Communications and Mass Media of Russia No. 641 dated September 2, 2022, On Approval of the Procedure for Issuing Permits for the Export Outside the Territory of the Russian Federation of Certain Types of Goods According to the List in Appendix No. 4 to Resolution of the Government of the Russian Federation No. 312 dated March 9, 2022.
7. Order of the Ministry of Natural Resources and Environment of Russia No. 185 dated March 14, 2022, On Approval of the Procedure for Issuing Permits for the Export from the Russian Federation of Certain Types of Laboratory, Mining, Geological Exploration, and Geophysical Equipment and Parts Thereto Included in Appendix No. 5 to Resolution of the Government of the Russian Federation No. 312 dated March 9, 2022.
8. Draft Order of Roszdravnadzor, On Approval of the Procedure for Issuing Permits for the Export Outside the Territory of the Russian Federation of Certain Types of Medical Devices According to the List in Appendix No. 6 to Resolution of the Government of the Russian Federation No. 312 dated March 9, 2022 (not signed and not applicable).
9. Agreement on Rules for Determining the Country of Origin of Goods in the Commonwealth of Independent States, concluded in Yalta on November 20, 2009.
10. Treaty on the Eurasian Economic Union, signed in Astana on May 29, 2014.
11. Resolution of the Arbitration Court of the Moscow District dated March 22, 2023, No. Ф05-3903/2023, in Case No. A40-131901/2022, On Declaring Unlawful the Refusal to Release Goods. Under a contract, the applicant planned to supply hunting cartridges. Release was refused based on an inspection. The claim was denied as the goods fell under export prohibitions to unfriendly countries.
12. Appendix No. 1 to the Decision of the Board of the Eurasian Economic Commission No. 134 dated August 16, 2012, On Regulatory Legal Acts in the Field of Non-Tariff Regulation.
13. Treaty on the Eurasian Economic Union.
14. Decision of the Board of the Eurasian Economic Commission No. 199 dated November 6, 2014, On the Instructions for Completing the Application for an Export and/or Import License for Certain Types of Goods and the Instructions for Issuing Permits.
15. Article 11 of the EAEU Customs Code.
16. Decision of the Board of the Eurasian Economic Commission No. 62 dated April 24, 2018, On Approval of the Procedure for Submitting Preliminary Information on Goods to Be Imported Into the EAEU Customs Territory by Air Transport.
17. Decision of the Board of the Eurasian Economic Commission No. 56 dated April 17, 2018, On Approval of the Procedure for Submitting Preliminary Information on Goods to Be Imported Into the EAEU Customs Territory by Road Transport.
18. Decision of the Board of the Eurasian Economic Commission No. 56 dated April 17, 2018, On Approval of the Procedure for Submitting Preliminary Information on Goods to Be Imported Into the EAEU Customs Territory by Road Transport.
19. Decision of the Board of the Eurasian Economic Commission No. 51 dated April 10, 2018, On Approval of the Procedure for Submitting Preliminary Information on Goods to Be Imported Into the EAEU Customs Territory by Water Transport.
20. Decision of the Board of the Eurasian Economic Commission No. 129 dated August 6, 2019, On the Composition of Information from Export and/or Import Licenses, Permits, and Conclusions which May Be Obtained by Customs Authorities.
21. Article 16.3 of the CAO RF.
22. Article 226.1 of the Criminal Code of the Russian Federation.