31 May 2024

Criminal Liability for Violation of Foreign Trade and Customs Legislation

May 31, 2024.

BRACE Law Firm ©

International trade (the "VED") and customs legislation are inextricably linked.

Pursuant to Article 1 of Federal Law No. 183-FZ dated July 18, 1999, On Export Control (the "Law No. 183-FZ" or the "Export Control Law"), international trade constitutes:

Foreign trade, which involves transactions in the field of foreign trade in goods, services, information, and intellectual property;[1]
Investment activity, which involves making investments and performing practical actions to obtain profit and (or) achieve another beneficial effect;[2]
Other activities, including industrial cooperation, in the field of international exchange of goods, information, works, services, and results of intellectual activity (rights thereto).

Customs legislation consists of legal norms regulated by the following regulations:

Treaty on the Eurasian Economic Union;[3]
Customs Code of the Eurasian Economic Union;
Federal Law No. 289-FZ dated August 3, 2018, On Customs Regulation in the Russian Federation and on Amending Certain Legislative Acts of the Russian Federation, and other bylaws.

In addition to administrative liability, the law provides for criminal liability for violating legal norms regulating international trade and customs activities.

The Treaty on the Specifics of Criminal and Administrative Liability for Violations of the Customs Legislation of the Customs Union and the Member States of the Customs Union[4] (the "Treaty on the Specifics of Criminal and Administrative Liability") establishes that offenses in this area are recognized as violations of the customs legislation of the Customs Union and the legislation of the Parties, the control over which is assigned to the customs authorities, and for which criminal liability is provided for by the legislation of the Parties.

The Treaty on the Specifics of Criminal and Administrative Liability stipulates[5] that a criminal case shall be initiated and investigated at the place where the crime was committed, or if it is impossible to determine the place of commission, at the place where the crime was detected. Furthermore, if a person being prosecuted by the competent authority of one Party is a citizen of another Party that does not extradite them, the criminal case may be sent to that other Party for prosecution.

However, if a person commits a crime in several countries, the place of commission is considered the territory of the country where the last criminal act was committed. If a person commits crimes in different countries, the criminal case may be investigated in the country where most of the crimes or the most serious of them were committed. Additionally, each Party, in accordance with its legislation, may initiate and investigate criminal cases for crimes committed in other countries that are directed against its interests. The preliminary investigation of a criminal case is conducted in accordance with the criminal procedure legislation of the Party in whose territory the case is being investigated.

It should also be noted that a person against whom a sentence or other judicial decision in a criminal case has entered into legal force in one Party cannot be held criminally liable for the same act by another Party.[6]

Production, Acquisition, Storage, Transportation for Sale, or Sale of Goods and Products Without Labeling

The sale of goods under foreign trade contracts must comply with established labeling rules.[7] Article 171.1 of the Criminal Code of the Russian Federation (the "CC RF") establishes criminal liability for violating these rules. Specifically, the production, acquisition, storage, transportation for sale, or sale of goods and products without the labeling and information required by Russian legislation (where such labeling and information are mandatory), or the same acts involving goods using knowingly forged identification means for labeling, if committed on a large scale, shall be penalized by:

A fine of up to 300,000 rubles or the amount of the salary or other income of the convicted person for a period of up to 2 years;
Forced labor for a term of up to 3 years;
Imprisonment for a term of up to 3 years[8] with a fine of up to 80,000 rubles or the amount of the salary or other income of the convicted person for a period of up to 6 months.

The same acts committed by a group of persons by prior conspiracy shall be penalized by:

A fine in the amount of 100,000 to 300,000 rubles or the amount of the salary or other income of the convicted person for a period of 1 to 3 years;
Forced labor for a term of up to 4 years;
Imprisonment for the same term with a fine of up to 100,000 rubles or the amount of the salary or other income of the convicted person for a period of up to 1 year, or without such a fine.

Article 171.1 contains several parts regulating liability for acts committed on a large scale, an especially large scale, by a group of persons, etc. For Parts 3 and 4 of this Article, a large scale is recognized as the value of unlabeled food products exceeding 400,000 rubles, and an especially large scale is exceeding 1,500,000 rubles. Meanwhile, for Parts 5[9] and 6 of the Article, a large scale is recognized as the value of unlabeled alcohol products and (or) unlabeled tobacco products exceeding 100,000 rubles, and an especially large scale is exceeding 1 million rubles.

Illegal Use of Means of Individualization of Goods (Works, Services)

Pursuant to the civil legislation of the Russian Federation, means of individualization of goods (works, services) include:

Commercial name;[10]
Trademark and service mark;[11]
Geographical indication and appellation of origin of goods.[12]

The illegal use of another's trademark, service mark, appellation of origin of goods, or similar designations for homogeneous goods, if committed repeatedly or causing large-scale damage, shall be penalized by:[13]

A fine[14] in the amount of 100,000 to 300,000 rubles or the amount of the salary or other income of the convicted person for a period of 1 to 2 years;
Compulsory labor for a term of up to 480 hours;
Correctional labor for a term of up to 2 years;
Forced labor for a term of up to 2 years;
Imprisonment for a term of up to 2 years[15] with a fine of up to 80,000 rubles or the amount of the salary or other income of the convicted person for a period of up to 6 months.

The Article provides for two additional parts establishing criminal liability for committing the unlawful act by a group of persons by prior conspiracy or by an organized group. For this Article, large-scale damage is recognized as damage in an amount exceeding 400,000 rubles.

Illegal Export from Russia or Transfer of Goods or Technologies, Armaments or Military Equipment, Illegal Performance of Works, or Illegal Provision of Services Subject to Export Control [16]

The export customs procedure applies to EAEU goods, whereby such goods are exported from the EAEU customs territory for permanent stay outside its borders.[17] Pursuant to Federal Law No. 183-FZ dated July 18, 1999, On Export Control (the "Law No. 183-FZ" or the "Export Control Law"), export control is a set of measures ensuring the implementation of the procedure established by the Export Control Law and other federal laws and regulations for international trade in goods, information, works, services, and results of intellectual activity (rights thereto) that may be used to create weapons of mass destruction, their delivery vehicles, other types of armaments and military equipment, or in the preparation and (or) commission of terrorist acts.

Furthermore, controlled goods and technologies under Law No. 183-FZ include raw materials, materials, equipment, scientific and technical information, works, services, and results of intellectual activity (rights thereto) which, by virtue of their characteristics and properties, may significantly contribute to the creation of weapons of mass destruction, their delivery vehicles, other types of armaments and military equipment, as well as products that are particularly dangerous in terms of the preparation and (or) commission of terrorist acts.

The illegal export from Russia or transfer to a foreign person or their representative of goods or technologies, armaments, or military equipment, the illegal performance of work for a foreign person or their representative, or the illegal provision of services to a foreign person or their representative, which the perpetrator knows are subject to export control, shall be penalized by imprisonment for a term of 3[18] to 7 years with a fine of up to 1 million rubles or the amount of the salary or other income of the convicted person for a period of up to 5 years (or without such a fine) and with a restriction of liberty for a term of up to 1 year (or without such a restriction). Parts 2 and 3 of this Article provide for liability for such offenses committed by a group of persons by prior conspiracy, by a person using their official position, or involving weapons of mass destruction or their delivery vehicles, as well as offenses committed by an organized group.

Evasion of Obligations to Repatriate Funds in Foreign or Russian Currency [19]

Repatriation of foreign and Russian currency by residents is regulated by Article 19 of Federal Law No. 173-FZ dated December 10, 2003, On Currency Regulation and Currency Control (the "Law No. 173-FZ" or the "Currency Regulation Law") and Decree of the President of the Russian Federation No. 430 dated July 5, 2022, On the Repatriation by Residents – Participants in International Trade of Foreign Currency and the Currency of the Russian Federation. Repatriation is the obligation to ensure, within the terms provided for by foreign trade agreements (contracts) and (or) loan agreements:

The receipt from non-residents into their bank accounts at authorized banks of foreign currency or Russian currency due under such agreements (contracts) for goods transferred to non-residents, work performed for them, services rendered to them, or information and results of intellectual activity transferred to them, including exclusive rights thereto;
The return to Russia of funds paid to non-residents for goods not imported into the Russian Federation, work not performed, services not rendered, or information and results of intellectual activity not transferred, including exclusive rights thereto;
The receipt from non-residents into their bank accounts at authorized banks of foreign currency or Russian currency due under loan agreements.

Violating currency legislation requirements regarding repatriation shall be penalized by:

A fine in the amount of 200,000 to 500,000 rubles or the amount of the salary or other income of the convicted person for a period of 1 to 3 years;
Forced labor for a term of up to 3 years;
Imprisonment for a term of up to 3 years.

Acts committed:

On an especially large scale;
By a group of persons by prior conspiracy or by an organized group;
Using a knowingly forged document;
Using a legal entity created for the commission of one or more crimes related to financial transactions and other deals involving funds or other property, shall be penalized by imprisonment for a term of up to 5 years with a fine of up to 1 million rubles or the amount of the salary or other income of the convicted person for a period of up to 5 years, or without such a fine.

Acts under this Article are recognized as committed on a large scale if the amount of non-credited or non-returned funds in foreign or Russian currency for currency transactions conducted once or repeatedly within one year exceeds 100 million rubles, and on an especially large scale if it exceeds 150 million rubles.

In this context, it is also necessary to note the liability for currency transactions involving the transfer of funds in foreign or Russian currency to the accounts of non-residents using forged documents. [20] This is penalized by a fine in the amount of 200,000 to 500,000 rubles, or the amount of the salary or other income of the convicted person for a period of 1 to 3 years, or forced labor for a term of up to 3 years, or imprisonment for a term of up to 3 years. Parts 2 and 3 of this Article also provide for liability for acts committed on a large scale, by a group of persons by prior conspiracy, using a legal entity created for one or more crimes, on an especially large scale, or by an organized group.

Acts under this Article are recognized as committed on a large scale if the amount of illegally transferred funds exceeds 13.5 million rubles within one year, and on an especially large scale if it exceeds 65 million rubles.

Evasion of Customs Payments, Special, Antidumping, and (or) Countervailing Duties Levied on an Organization or Individual [21]

Customs payments include: [22]

Import customs duty;
Export customs duty;
Value-added tax levied upon the import of goods into the EAEU customs territory;
Excise taxes (excise tax or excise duty) levied upon the import of goods into the EAEU customs territory;
Customs fees.

Evasion of customs payments, special, antidumping, and (or) countervailing duties levied on an organization or individual, if committed on a large scale, shall be penalized by:

A fine in the amount of 100,000[23] to 500,000 rubles or the amount of the salary or other income of the convicted person for a period of 1 to 3 years;
Compulsory labor for a term of up to 480 hours;
Forced labor for a term of up to 2 years;
Imprisonment for a term of up to 2 years.

Evasion of customs payments or duties is recognized as committed on a large scale if the amount of unpaid payments for goods moved across the EAEU customs border, including in one or more shipments, exceeds 2 million rubles, and on an especially large scale if it exceeds 6 million rubles.

The Article also provides for liability for acts committed by a group of persons by prior conspiracy, on an especially large scale, by an official using their official position, or using violence against a person exercising customs or border control.

The CC RF establishes the possibility of releasing a person from criminal liability[24] upon detection of acts committed before January 1, 2015, or before January 1, 2018, containing elements of crimes provided for by Article 193 (Evasion of Obligations to Repatriate Funds in Foreign or Russian Currency) and Parts 1 and 2 of Article 194 (Evasion of Customs Payments Levied on an Organization or Individual). This release is limited to conditions where the person is a declarant or a person whose information is contained in a corresponding special declaration filed in accordance with Federal Law No. 140-FZ dated June 8, 2015, On the Voluntary Declaration by Individuals of Assets and Accounts (Deposits) in Banks and on Amending Certain Legislative Acts of the Russian Federation, and if such acts are related to the acquisition, use, or disposal of property and (or) controlled foreign companies, or the opening and (or) crediting of funds to accounts (deposits) disclosed in such a special declaration.[25]

Smuggling

1. Cash and (or) Monetary Instruments [26].

The illegal movement of goods or other items across the customs border means moving them outside established places or business hours of customs authorities, with concealment from customs control, with unreliable declaration or non-declaration, or using documents containing unreliable information, and (or) using forged identification means or those belonging to other goods.[27]

The illegal movement of cash and (or) monetary instruments[28] across the EAEU customs border, committed on a large scale, shall be penalized by a fine in the amount of three to ten times the amount of the illegally moved cash and (or) the value of the monetary instruments, or in the amount of the salary or other income of the convicted person for a period of up to 2 years, or by restriction of liberty for a term of up to 2 years,[29] or by forced labor for a term of up to 2 years.

The Article also provides for liability for acts committed on an especially large scale or by a group of persons. An act is recognized as committed on a large scale if the amount of illegally moved cash and (or) the value of monetary instruments exceeds twice the amount of cash and (or) the value of traveler's checks permitted by EAEU law for movement without written declaration.

When calculating the amount, the portion permitted for movement without declaration or that was actually declared shall be excluded from the total amount of illegally moved cash and (or) monetary instruments.

Furthermore, a person who voluntarily surrenders cash and (or) monetary instruments is released from criminal liability if their actions do not contain elements of another crime. The discovery of cash and (or) instruments during customs control, their seizure during detention, or during investigative actions shall not be recognized as voluntary surrender.

Monetary instruments include traveler's checks, promissory notes, checks (bank checks), and securities in documentary form certifying the issuer's (debtor's) obligation to pay funds in which the payee is not specified.

2. Potent, Poisonous, Toxic, Explosive, Radioactive Substances, Radiation Sources, Nuclear Materials, Firearms or Their Main Parts, Explosive Devices, Ammunition, Other Armaments, Other Military Equipment, as well as Raw Materials, Materials, Equipment, Technologies, Scientific and Technical Information, or Results of Intellectual Activity That Can Be Used to Create Armaments or Military Equipment, as well as Strategically Important Goods and Resources or Cultural Values, or Especially Valuable Wild Animals, Aquatic Biological Resources, Plants, and Fungi [30].

The illegal movement across the EAEU customs border or the State Border of the Russian Federation with EAEU member states of strategically important goods and resources[31] or cultural values on a large scale, or especially valuable wild animals, aquatic biological resources, plants, and fungi belonging to species listed in the Red Data Book of the Russian Federation and (or) protected by international treaties of the Russian Federation, their parts and derivatives, shall be penalized by a fine in the amount of 300,000 to 1 million rubles or the amount of the salary or other income of the convicted person for a period of 1 to 3 years, or by forced labor for a term of up to 5 years, or by imprisonment for the same term.

Federal Law No. 43-FZ dated March 11, 2024, On Amending the Criminal Code of the Russian Federation and the Criminal Procedure Code of the Russian Federation, added Part 1.1 to this Article, regulating liability for the illegal movement across the EAEU customs border or the State Border of the Russian Federation with EAEU member states of potent, poisonous, toxic, explosive, radioactive substances, radiation sources, nuclear materials, firearms, their main parts (barrel, bolt, drum, frame, receiver), explosive devices, ammunition, other armaments, other military equipment, as well as raw materials, materials, equipment, technologies, scientific and technical information, or results of intellectual activity that can be used to create armaments or military equipment. The sanction for such acts is imprisonment for a term of 3 to 7 years with a fine of up to 1 million rubles or the amount of the salary or other income of the convicted person for a period of up to 5 years (or without such a fine) and with a restriction of liberty for a term of up to 1 year (or without such a restriction).

Criminal liability is also provided for acts committed by a person using their official position, using violence against a person exercising customs or border control, by a group of persons by prior conspiracy, involving weapons of mass destruction or their delivery vehicles, or by an organized group.

The list of strategically important goods and resources was approved by Decree of the Government of the Russian Federation No. 923 dated September 13, 2012.

The value of strategically important goods and resources exceeding 1 million rubles is recognized as a large scale. for certain types of strategically important goods and resources determined by the Government of the Russian Federation, the value exceeding 100,000 rubles is recognized as a large scale.

The list of especially valuable wild animals, aquatic biological resources, plants, and fungi for the purposes of this Article, as well as Articles 258.1 and 260.1, was approved by Decree of the Government of the Russian Federation No. 978 dated October 31, 2013.

Additionally, the value of cultural values exceeding 100,000 rubles is recognized as a large scale.

It is also important to note that, taking into account the provisions of Paragraph 2 of Article 101 of the EAEU Treaty, the terms "customs border of the Customs Union within the EurAsEC" and "State Border of the Russian Federation with member states of the Customs Union within the EurAsEC" used in Articles 200.1, 226.1, and 229.1 of the CC RF should be understood as the "customs border of the Eurasian Economic Union" and the "State Border of the Russian Federation with member states of the Eurasian Economic Union," respectively.[32]

Smuggling of Narcotic Drugs, Psychotropic Substances, Their Precursors or Analogs, Plants Containing Narcotic Drugs, Psychotropic Substances, or Their Precursors, or Their Parts Containing Narcotic Drugs, Psychotropic Substances, or Their Precursors, Instruments or Equipment Under Special Control and Used for the Manufacture of Narcotic Drugs or Psychotropic Substances [33]

Narcotic drugs[34] are recognized as substances of synthetic or natural origin, preparations included in the List[35] of narcotic drugs, psychotropic substances, and their precursors subject to control in the Russian Federation, in accordance with Russian legislation and international treaties of the Russian Federation, including the Single Convention on Narcotic Drugs of 1961.[36]

Psychotropic substances are considered substances of synthetic or natural origin, preparations, and natural materials included in the List of narcotic drugs, psychotropic substances, and their precursors subject to control in the Russian Federation, in accordance with Russian legislation and international treaties of the Russian Federation, including the Convention on Psychotropic Substances of 1971.[37]

Precursors of narcotic drugs and psychotropic substances include substances frequently used in the production, manufacture, and processing of narcotic drugs and psychotropic substances included in the List of narcotic drugs, psychotropic substances, and their precursors subject to control in the Russian Federation, in accordance with Russian legislation and international treaties of the Russian Federation, including the United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances of 1988.[38]

The illegal movement across the EAEU customs border or the State Border of the Russian Federation with EAEU member states of narcotic drugs, psychotropic substances, their precursors or analogs, plants containing them, or instruments and equipment[39] under special control used for their manufacture, shall be penalized by imprisonment for a term of 3 to 7 years with a fine of up to 1 million rubles or the amount of the salary or other income of the convicted person for a period of up to 5 years (or without such a fine) and with a restriction of liberty for a term of up to 1 year (or without such a restriction).

The Article also contains parts providing for criminal liability for acts committed:

By a group of persons by prior conspiracy;
By an official using their official position;
In relation to narcotic drugs, psychotropic substances, their analogs, or plants containing them, in a significant amount;
On a large scale;
By an organized group;
In relation to narcotic drugs, psychotropic substances, their precursors or analogs, or plants containing them, on an especially large scale;
Using violence against a person exercising customs or border control.

Significant, large, and especially large scales are determined by the Government of the Russian Federation. [40]

________________________

References

[1] Paragraph 4 of Article 2 of Federal Law No. 164-FZ dated December 8, 2003, On the Fundamentals of State Regulation of Foreign Trade Activity.

[2] Article 1 of Federal Law No. 39-FZ dated February 25, 1999, On Investment Activity in the Russian Federation Conducted in the Form of Capital Investments.

[3] Signed in Astana on May 29, 2014.

[4] Signed in Astana on July 5, 2010.

[5] Article 5 of the Treaty on the Specifics of Criminal and Administrative Liability.

[6] Paragraph 1 of Article 7 of the Treaty on the Specifics of Criminal and Administrative Liability.

[7] Decree of the Government of the Russian Federation No. 515 dated April 26, 2019, On the System for Labeling Goods with Identification Means and Traceability of the Movement of Goods.

[8] Judgment of the Slavgorod City Court of the Altai Territory dated May 4, 2017, in Case No. 1-34/2017, charges under sub-paragraph "b" of Part 6 of Article 171.1 of the CC RF (production, acquisition, storage, transportation, or sale of goods and products without labeling and (or) application of information). In a certain period, D. developed a criminal intent directed at the transportation for sale of unlabeled alcohol products subject to mandatory labeling with excise marks or federal special marks, on an especially large scale. Thus, D., knowing that alcohol products produced in the Republic of Kazakhstan, not labeled with excise marks or federal special marks of the Russian Federation, have a low cost due to the non-payment of mandatory fees to the budget of the Russian Federation and are in great demand among the population, and realizing that compliance with the legal procedure for alcohol circulation would increase financial costs and prevent him from obtaining the desired material benefit, decided to purchase and transport alcohol products from the Republic of Kazakhstan without Russian excise marks, intending to sell them by exchanging them for inventory items. Defendant D. fully admitted guilt, explaining that he agreed with an acquaintance (Witness No. 3) to exchange Kazakh vodka for timber. After crossing the border between the Republic of Kazakhstan and the Russian Federation, he was detained by police officers for transporting alcohol products without Russian labeling. The court, in determining the element of "especially large scale," proceeded from the minimum price for vodka. The court qualified D.'s actions under Clause "b" of Part 6 of Article 171.1 of the CC RF as the transportation for sale of unlabeled alcohol products on an especially large scale. The court found D. guilty and sentenced him to 1 year and 6 months of imprisonment in a maximum-security correctional colony.

[9] Judgment of the Tsivilsk District Court of the Chuvash Republic dated April 1, 2024, in Case No. 1-9/2024. Charge: Under Part 5 of Article 171.1 of the CC RF (production, acquisition, storage, transportation, or sale of goods and products without labeling and (or) application of information). P., acting intentionally and realizing the public danger of her actions, acquired and stored for sale unlabeled tobacco products subject to mandatory labeling with special (excise) marks of the Russian Federation for an amount that constitutes a large scale. In July 2021, P. found an advertisement on a website for the sale of cigarettes and purchased them for personal consumption; the seller brought the cigarettes to her workplace at a wholesale depot, and she unloaded them into a warehouse. She had no receipts or consignment notes for these cigarettes. Payment was made in cash. A technical and forensic examination established that the special marks on the cigarette packs were not produced by JSC Goznak. A guilty verdict was issued.

[10] Article 1473 of the Civil Code.

[11] Article 1477 of the Civil Code.

[12] Article 1516 of the Civil Code.

[13] Article 180 of the CC RF.

[14] Judgment of the Mordovsky District Court of the Tambov Region dated April 26, 2024, in Case No. 1-13/2024. Charge under Part 1 of Article 180 of the CC RF (illegal use of means of individualization of goods (works, services)). The nature of the defendant's actions, the method of committing the crimes, and the consequences allowed the court to qualify the defendant's actions under Part 1 of Article 180 of the CC RF as the illegal use of another's trademark, appellation of origin of goods, or similar designations for homogeneous goods, committed repeatedly. A guilty verdict was issued.

[15] Judgment of the Satka City Court of the Chelyabinsk Region dated April 18, 2024, in Case No. 1-118/2024, on charges under Article 180 of the CC RF (illegal use of means of individualization of goods (works, services)). M.M. and M.D., acting as a group by prior conspiracy, engaged in illegal activities related to the acquisition, storage, and transportation for sale of unlabeled alcohol products. Knowing the demand for original "Stary Kenigsberg" brandy produced by Alliance-1892 Winery LLC, and seeking material benefit, they conspired with unidentified persons to purchase a batch of counterfeit alcohol products using another's trademarks, thereby violating the exclusive rights of Alliance-1892 Winery LLC. M.D. transported the counterfeit batch to a garage box for storage and subsequent sale. M.M., being aware of the circumstances and the prices (which were below the minimum cost and did not include VAT or excise taxes), sought consumers while ensuring secrecy. The court found M.M. and M.D. guilty under Part 3 of Article 180 of the CC RF and sentenced each to 1 year and 6 months of imprisonment.

[16] Article 189 of the CC RF.

[17] Paragraph 1 of Article 139 of the EAEU Customs Code.

[18] Judgment of the Lyubertsy City Court of the Moscow Region dated August 21, 2023, No. 1-624/2023, on charges under Article 189 of the CC RF (illegal export from Russia or transfer of goods or technologies, armaments or military equipment, illegal performance of work, or illegal provision of services subject to export control). S.N.V. committed the illegal transfer to a representative of a foreign organization of materials which the perpetrator knew could be used to create weapons of mass destruction or their delivery vehicles and which are subject to export control. S.N.V., motivated by greed, developed a criminal intent to transfer AK6 grade aluminum rods with a diameter exceeding 75 mm. She purchased the rods from a LLC, and a representative of the foreign organization VED Partner LLP received 91 kg of the rods at a warehouse for delivery to the Republic of Kazakhstan. S.N.V. realized the public danger of her actions and intended to infringe upon the state's interests in the sphere of normal economic activity. She pleaded guilty and stated she knew a license from the FSTEC of Russia was required for the export of such dual-use materials. The court found S.N.V. guilty under Part 3 of Article 189 of the CC RF and sentenced her to 3 years of imprisonment with a fine of 200,000 rubles.

[19] Article 193 of the CC RF.

[20] Article 193.1 of the CC RF.

[21] Article 194 of the CC RF.

[22] Paragraph 1 of Article 46 of the EAEU Customs Code.

[23] Judgment of the Frunzensky District Court of Vladivostok dated October 3, 2023, No. 1-385/2023, on charges under Article 194 of the CC RF (evasion of customs payments, special, antidumping, and (or) countervailing duties). S.D., having sufficient experience and knowledge of customs legislation, organized the import of various goods on behalf of a LLC under a foreign trade contract with a foreign company. Due to financial difficulties, S.D. decided to save on customs payments by not declaring part of the goods. This significantly reduced the amount of duties, making the goods more competitive and generating profit for the LLC and benefit for S.D. The court found S.D. guilty under Part 1 of Article 194 of the CC RF and sentenced him to a fine of 100,000 rubles, and ordered the recovery of 3,266,397.55 rubles in favor of the state represented by the Vladivostok Customs.

[24] Paragraph 3 of Article 76.1 of the CC RF.

[25] Letter of the Ministry of Finance of Russia No. 03-04-05/34418 dated May 22, 2018.

[26] Article 200.1 of the CC RF.

[27] Paragraph 5 of the Resolution of the Plenum of the Supreme Court of the Russian Federation No. 12 dated April 27, 2017, On Judicial Practice in Cases of Smuggling.

[28] Cassation Ruling of the Third Cassation Court of General Jurisdiction dated April 16, 2024, in Case No. 77-916/2024, regarding a sentence under Part 1 of Article 200.1 of the CC RF (smuggling of cash and (or) monetary instruments). The guilt of the convicted person was confirmed by the evidence collected and was not contested in the cassation appeal. The evidence was examined during the trial and properly evaluated by the court. The sentence was left unchanged.

[29] Judgment of the Solntsevo District Court of Moscow dated March 2, 2022, in Case No. 1-56/2022, on charges under Part 1 of Article 200.1 of the CC RF (smuggling of cash and (or) monetary instruments). Y., intending to illegally move a large amount of cash across the EurAsEC customs border, flew from the Republic of Uzbekistan to the Russian Federation and arrived at Vnukovo International Airport. Y. proceeded to the "green" corridor, intended for individuals moving goods for personal use that are not subject to written declaration. The cash was discovered during a customs inspection, which, pursuant to Note 4 to Article 200.1 of the CC RF, is not recognized as voluntary surrender. The court found Y. guilty and sentenced him to 6 months of restriction of liberty.

[30] Article 226.1 of the CC RF.

[31] Judgment of the Verkh-Isetsky District Court of Yekaterinburg dated May 21, 2024, No. 1-137/2024, on charges under Part 1 of Article 226.1 of the CC RF (smuggling of potent, poisonous, toxic, explosive, radioactive substances, radiation sources...). R.M. committed smuggling by illegally moving strategically important resources—timber on a large scale — from the Russian Federation to the Republic of Uzbekistan via unreliable customs declaration. Motivated by greed, R.M. used a previously found foreign counterparty in Uzbekistan. He purchased pine timber without proper documentation confirming its legal origin, which was processed by unidentified persons into sawed timber categorized as strategically important resources under Government Decree No. 923. The court found R.M. guilty and sentenced him to a fine of 350,000 rubles.

[32] Paragraph 1 of the Resolution of the Plenum of the Supreme Court of the Russian Federation No. 12 dated April 27, 2017, On Judicial Practice in Cases of Smuggling.

[33] Article 229.1 of the CC RF.

[34] Article 1 of Federal Law No. 3-FZ dated January 8, 1998, On Narcotic Drugs and Psychotropic Substances.

[35] Decree of the Government of the Russian Federation No. 681 dated June 30, 1998, On the Approval of the List of Narcotic Drugs, Psychotropic Substances, and Their Precursors Subject to Control in the Russian Federation.

[36] Single Convention on Narcotic Drugs of 1961, as amended by the 1972 Protocol. Concluded in New York on March 30, 1961.

[37] Convention on Psychotropic Substances. Concluded in Vienna on February 21, 1971. Ratified by Decree of the Presidium of the Supreme Soviet of the USSR No. 8282-IX dated October 23, 1978.

[38] United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances. Concluded in Vienna on December 20, 1988. Ratified by Resolution of the Supreme Soviet of the USSR No. 1711-I dated October 9, 1990.

[39] Decree of the Government of the Russian Federation No. 2126 dated November 30, 2021, On the Approval of the List of Instruments and Equipment Under Special Control and Used for the Production and Manufacture of Narcotic Drugs and Psychotropic Substances...

[40] Decree of the Government of the Russian Federation No. 1002 dated October 1, 2012, On the Approval of Significant, Large, and Especially Large Scales of Narcotic Drugs and Psychotropic Substances... for the Purposes of Articles 228, 228.1, 229, and 229.1 of the Criminal Code of the Russian Federation.