The following key regulatory changes in foreign economic activity and international trade occurred during the first quarter of 2023:

1. The Eurasian Economic Commission finalized the structural requirements for unique tracking numbers assigned to shipments monitored via electronic navigation seals.
2. Regulators approved the Procedure for ensuring the traceability of regulated product consignments imported into and transported across the customs territory of the Eurasian Economic Union (EAEU).
3. The Commission enacted a comprehensive Methodology for identifying market barriers within the internal market of the Eurasian Economic Union and validating their remediation.
4. Authorities defined the specific data fields from statistical cargo declaration forms to be transmitted to the Bank of Russia and authorized banks effective January 1, 2024.
5. The Ministry of Economic Development established the calculation methodology for tariff-rate quotas applicable to beef and poultry imports effective April 4, 2023.
6. The Russian Government amended the current export quota allocations for mineral fertilizers effective March 27, 2023.
7. Customs authorities finalized classification standards under the EAEU Commodity Nomenclature for multivitamins, vitamin preparations, and vitamin complexes.
8. Beginning July 1, 2023, federal agencies will conduct state control over the safe handling of pesticides and agrochemicals directly at temporary storage warehouses.
9. The Russian Government launched a pilot program from April 3, 2023, to November 1, 2024, to test customs monitoring systems designed to detect violations of EAEU law and Russian customs regulations.
10. A temporary export ban on precious metal scrap and waste vital to the domestic market took effect from March 20 to September 20, 2023.
11. The Russian Government introduced a draft resolution to include the Republic of Tatarstan in the pilot program for labeling imported alcoholic beverages placed under the customs warehouse procedure.

1. Statutory and Regulatory Developments, Legal News

 

1.1. Eurasian Economic Commission Finalizes Structure for Unique Navigation Seal Tracking Numbers

Decision of the Board of the Eurasian Economic Commission No. 40 dated March 28, 2023, "On the Structure of the Unique Tracking Number for Monitored Objects Transported via Navigation Seals"

The unique tracking number for objects monitored via electronic navigation seals will utilize a 36-character identifier generated in compliance with the implementation of the UUID (Universally Unique IDentifier) standard.

The Decision shall enter into force on April 30, 2023.

1.2. Eurasian Economic Commission Adopts New Methodology for Remediating EAEU Internal Market Barriers

Decision of the Board of the Eurasian Economic Commission No. 41 dated March 28, 2023, "On the Approval of the Methodology for Identifying Market Barriers Within the Internal Market of the Eurasian Economic Union and Validating Their Remediation"

Pursuant to the Board's decision, Decision of the Board of the Eurasian Economic Commission No. 10 dated February 2, 2021, which previously governed these legal relations, is repealed.

Market barriers and trade restrictions recorded in the respective registers prior to the effective date of this Decision shall be deemed remediated in accordance with the procedure established by the new Methodology approved by Decision No. 41 dated March 28, 2023.

The document shall enter into force on April 30, 2023.

1.3. Traceability Protocols Enacted for Regulated High-Phytosanitary-Risk Products Within the EAEU

Decision of the Board of the Eurasian Economic Commission No. 43 dated March 28, 2023, "On Approval of the Procedure for Tracking Consignments of Regulated Products (Regulated Cargo, Regulated Materials, Regulated Goods) Imported into and Transported Across the Customs Territory of the Eurasian Economic Union"

The Procedure outlines the operational workflow for ensuring the traceability of high-phytosanitary-risk regulated products (including regulated cargo, materials, and goods specified in the attached annex) imported from third countries or moved between member states. This framework operates within the quarantine phytosanitary control system to safeguard the phytosanitary security of the EAEU customs territory.

The Decision shall enter into force 12 months after its official publication, save for specific provisions subject to alternative effective dates.

1.4. Presidential Decree Establishes Special Foreign Exchange Settlement Rules for Residents Engaged in International Trade

Decree of the President of the Russian Federation No. 72 dated February 6, 2023, "On the Special Procedure for Settlements Between Certain Resident Legal Entities Engaged in Foreign Economic Activity"

Resident entities may transfer foreign currency proceeds received from non-residents under international trade contracts directly to subcontractors or suppliers' accounts without undergoing mandatory currency conversion or sale. If the received currency differs from the currency specified in the underlying supply contract, the resident may only execute the transfer to the supplier with the supplier's prior express consent.

Should the settlement currency deviate from the terms of the supply agreement, executing the transfer requires the supplier's prior approval. Where currency conversion is required, funds may be transferred without mandatory foreign currency sale only if the Russian supplier explicitly consents to the specific terms, rates, and conditions of the conversion process.

The decree became effective on February 6, 2023.

1.5. Customs Authorities Mandated to Streamline Trade Data Transmission to the Central Bank of Russia

Resolution of the Government of the Russian Federation No. 499 dated March 29, 2023, "On Amending Resolution of the Government of the Russian Federation No. 1459 dated December 28, 2012"

The resolution defines the specific data sets from statistical cargo movement reporting forms that customs authorities must transmit to the Central Bank of Russia (Bank of Russia) and authorized commercial banks.

Customs authorities must transmit this data electronically within three business days following the date the trade participant submitted the reporting form.

The Resolution shall enter into force on January 1, 2024.

1.6. Ministry of Economic Development Specifies Tariff-Rate Quota Allocation Formulas for Beef and Poultry Imports

Order of the Ministry of Economic Development of the Russian Federation No. 11 dated January 16, 2023, "On the Procedure for Calculating the Volumes of Tariff-Rate Quotas Established for Cattle Meat and Poultry Meat by Decision of the Board of the Eurasian Economic Commission No. 119 dated August 23, 2022 'On Establishing Tariff-Rate Quotas for Certain Types of Agricultural Goods Imported into the Customs Territory of the Eurasian Economic Union for 2023, as well as the Volumes of Tariff-Rate Quotas for These Goods Imported into the Territories of the Member States of the Eurasian Economic Union'"

While Board Decision No. 119 established the baseline import quotas, Ministry Order No. 11 distributes these tariff-rate quotas among international trade participants using the mathematical formulas set forth in the order.

The document entered into force on April 4, 2023.

1.7. Russian Government Authorizes Additional Export Quotas for Mineral Fertilizers

Resolution of the Government of the Russian Federation No. 477 dated March 27, 2023, "On Amending Resolution of the Government of the Russian Federation No. 2353 dated December 20, 2022"

The government established an additional quantitative export restriction of 65,000 tons for mineral fertilizers under EAEU HS codes 3102 30 100 0 and 3102 30 900 0, applicable through March 31, 2023.

From April 1 through May 31, 2023, inclusive, an additional quantitative restriction of 235,000 tons applies to exports of fertilizers under EAEU HS codes 3102 30 100 0 and 3102 30 900 0 shipped outside the EAEU customs territory to non-member states.

The Resolution entered into force on March 27, 2023.

1.8. New EAEU Customs Classification Standards Issued for Multivitamins and Vitamin Complexes

Decision of the Board of the Eurasian Economic Commission No. 44 dated March 28, 2023, "On the Classification of Multivitamin and Vitamin Preparations and Multivitamin Complexes in Accordance with the Unified Commodity Nomenclature of Foreign Economic Activity of the Eurasian Economic Union"

Preparations consisting of mixed or unmixed products containing a vitamin or a mixture of vitamins as an active ingredient, along with excipients, put up in measured doses or in forms or packings for retail sale, intended for the treatment or prevention of specific vitamin-deficiency disorders, where the daily dose contains at least one active ingredient exceeding the tolerable upper intake level for adults established in Annex 5 to Section 1 of Chapter II of the Unified Sanitary-Epidemiological and Hygienic Requirements for Products Subject to Sanitary-Epidemiological Surveillance (approved by Decision of the Customs Union Commission No. 299 dated May 28, 2010), shall be classified under subheading 3004 50 000 of the Unified EAEU Commodity Nomenclature, pursuant to General Rules for the Interpretation (GRI) of the Commodity Nomenclature 1 and 6.

Topical preparations intended for skincare that contain a vitamin derivative as the active ingredient along with excipients shall be classified under subheading 3304 99 000 0 of the Unified EAEU Commodity Nomenclature, in accordance with General Rules for the Interpretation of the Commodity Nomenclature 1 and 6.

1.9. Federal Agro-Chemical Safety Inspections Expanded to Temporary Storage Warehouses

Federal Law No. 100-FZ dated April 3, 2023, "On Amending the Federal Law 'On the Safe Handling of Pesticides and Agrochemicals' and Article 2 of the Federal Law 'On State Control (Supervision) and Municipal Control in the Russian Federation'"

Competent authorities must execute federal state supervision over the safe handling of pesticides and agrochemicals at temporary storage warehouses within 72 hours from the moment the goods arrive at the facility.

The Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor), in coordination with the Federal Customs Service (FCS) of Russia, shall designate the authorized list of warehouse facilities.

The Law shall enter into force on July 1, 2023.

1.10. Russia Launches Pilot Program Implementing Advanced Automated Customs Monitoring System

Resolution of the Government of the Russian Federation No. 240 dated February 16, 2023, "On Conducting a Pilot Project for Customs Authorities to Monitor Information At Their Disposal and Data Received from Inventory Accounting Systems of Entities Participating in the Project"

The pilot program aims to test automated customs monitoring frameworks to proactively identify non-compliance risks under EAEU international treaties, Union acts regulating customs relations, and Russian federal customs laws. The initiative seeks to mitigate adverse legal consequences while allowing corporate participants to perform self-assessments based on the monitoring data.

The Resolution entered into force on February 28, 2023.

1.11. Electronic Navigation Seal Pilot Program Extended to Belarusian Timber Exports Transiting Russia

Resolution of the Government of the Russian Federation No. 150 dated February 2, 2023, "On Conducting a Pilot Project on the Use of Navigation Seals for Timber and Wood Products Placed Under the Export Customs Procedure in the Republic of Belarus and Transported Across the Territory of the Russian Federation by Road for Subsequent Exit from the Customs Territory of the Eurasian Economic Union"

The pilot project implements Directive of the Council of the Eurasian Economic Commission No. 29 dated October 17, 2022, "On the Execution of a Pilot Project by the Republic of Belarus and the Russian Federation on the Application of Navigation Seals to Certain Categories of Goods Placed Under the Export Customs Procedure". It serves to refine cargo tracking mechanisms across the EAEU trade corridors.

The Resolution entered into force on February 10, 2023. The operational duration of the pilot program is limited through June 1, 2023.

1.12. Russian Authorities Impose Temporary Export Ban on Precious Metal Scrap and Waste

Resolution of the Government of the Russian Federation No. 403 dated March 17, 2023, "On Introducing a Temporary Export Ban from the Russian Federation on Waste and Scrap of Precious Metals or Metals Clad with Precious Metals, and Other Waste and Scrap Containing Precious Metals or Precious Metal Compounds Used Principally for the Recovery of Precious Metals"

The trade restriction targets scrap and waste from precious metals, metals clad with precious metals, and electrical or electronic scrap utilized primarily for precious metal recovery, which hold critical strategic value for the Russian domestic market.

The temporary prohibition remains in effect from March 20 through September 20, 2023, inclusive.

1.13. Statutory Revisions Narrow Scope of Regulated Goods Subject to Mandatory Traceability Systems

Resolution of the Government of the Russian Federation No. 345 dated March 4, 2023, "On Amending the List of Goods Subject to Traceability"

The amendment exempts specific categories of goods produced in the Republic of Belarus and subsequently imported into the Russian Federation from mandatory traceability compliance frameworks.

The Resolution entered into force on March 6, 2023.

1.14. Ministry of Energy Implements Structured Price Monitoring Architecture for Crude Oil Exports

Order of the Ministry of Energy of the Russian Federation No. 95 dated February 22, 2023, "On Approval of the Price Monitoring Procedure for Russian Crude Oil Supplied for Export"

The price monitoring mechanism aggregates market data regarding Russian crude oil and benchmark global blends from three principal streams: data provided by JSC St. Petersburg International Mercantile Exchange (SPIMEX); daily publications by the international price reporting agency Argus Media Limited; and records transmitted directly by the Federal Customs Service to the Ministry of Energy.

The regulatory tracking mechanism became operational on March 4, 2023.

1.15. Federal Resolution Restricts Ferrous Metal Scrap Exports to Designated Seaports

Resolution of the Government of the Russian Federation No. 303 dated February 22, 2023, "On Defining Checkpoints Across the State Border of the Russian Federation for the Export of Ferrous Metal Scrap and Waste Outside the Customs Territory of the Eurasian Economic Union"

Exporters may route ferrous metal scrap and waste classified under specified EAEU HS codes exclusively through the following authorized maritime checkpoints: Arkhangelsk, Big Port of St. Petersburg, Vladivostok, Dudinka, Kaliningrad, Korsakov, Magadan, Murmansk, and Petropavlovsk-Kamchatsky.

The Resolution entered into force on February 24, 2023. The validity of this measure is restricted through December 31, 2023.

1.16. Kani-Kurgan Designated as Specialized Border Crossing Checkpoint on Russia-China Frontier

Resolution of the Government of the Russian Federation No. 175 dated February 8, 2023, "On Amending the Annex to Resolution of the Government of the Russian Federation No. 557 dated July 7, 2011"

The government added the Kani-Kurgan checkpoint to the authorized schedule of border crossings along the Russia-China frontier designated for importing livestock, animal products, animal feed, veterinary pharmaceutical products, and phytosanitary-regulated commodities.

The Resolution entered into force on February 17, 2023.

1.17. Inter-Agency Data Sharing Protocol Mandated for Customs and Federal Treasury Valuation Controls

Resolution of the Government of the Russian Federation No. 347 dated March 4, 2023, "On the Procedure for Customs Authorities to Electronically Transmit Data Concerning Registered Cargo Declarations and Statistical Reporting Forms Established by the Government of the Russian Federation Pursuant to Article 278 of the Federal Law 'On Customs Regulation in the Russian Federation and on Amending Certain Legislative Acts of the Russian Federation' to the Federal Treasury, and on Amending Annex No. 2 to the Rules for Maintaining Statistics on Mutual Trade in Goods Between the Russian Federation and Member States of the Eurasian Economic Union"

The framework delineates the specific technical data packages for registered goods declarations and statistical cargo flow tracking forms to be shared between agencies.

The Federal Customs Service must engineer and finalize data exchange schemas, as well as electronic acknowledgment/rejection messaging formats with the Federal Treasury by July 1, 2023.

The inter-agency protocol takes effect on January 1, 2024, save for certain implementation provisions.

2. Draft Legislation and Legislative Initiatives

2.1. Legislative Proposal Expanding Special Customs Warehouse Alcohol Labeling Pilot to Republic of Tatarstan

Draft Resolution of the Government of the Russian Federation "On Amending the Regulation on Conducting a Pilot Project from June 1, 2021, to May 31, 2024, on the Labeling of Imported Alcoholic Products Placed Under the Customs Warehouse Procedure with Special Federal Stamps"

From June 1, 2021, to May 31, 2024, regional authorities have been running a pilot labeling program for alcoholic beverages under the customs warehouse procedure across Moscow, St. Petersburg, Krasnodar Krai, and the Bryansk, Vladimir, Kaliningrad, Leningrad, Moscow, and Smolensk regions. The draft resolution officially expands this geographic scope to include the Republic of Tatarstan.

Where logistics require transshipment or cross-docking from one vehicle to another during transit, operators may execute such movements only after providing prior notification to the intermediate customs station. Under the draft rules, carriers must transport the goods in sealed containers, allowing transshipment without breaking or tampering with the official customs seals applied upon initial entry into the Russian Federation.

The pilot program strictly excludes entities whose statutory licenses for procurement, storage, and wholesale supply of alcohol have been suspended or revoked. Furthermore, operators of customs warehouses or temporary storage facilities automatically forfeit their eligibility to participate in the project upon removal from the respective official registers.

3. Judicial Precedents and Enforcement Landscape

3.1. Improper Customs Classification Resulting in Financial Damages Recoverable Against the State Treasury

Resolution of the Arbitration Court of the Northwestern District dated March 29, 2023, in Case No. A56-53077/2022

A commercial enterprise filed an action in the commercial (arbitration) court seeking to recover damages from the Federal Customs Service to be paid out of the Treasury of the Russian Federation.

The court found that an unlawful customs classification ruling issued by the customs authority directly caused the company to sustain losses due to subsequent wrongful administrative prosecution. The court granted the plaintiff's claim, ruling that the administrative fines paid as a result of the erroneous citation constitute actual damages directly recoverable by the company.

3.2. Commercial Court Strikes Down Customs Demand and Invalidates Goods Declaration Alteration Rules

Resolution of the Arbitration Court of the Moscow District dated April 5, 2023, in Case No. A40-123996/2022

Courts of multiple instances reviewed a corporate plaintiff's suit seeking to invalidate a customs decision that unilaterally amended its goods declaration. Following an origin verification audit, the customs office ruled that the non-preferential certificates of origin failed to comply with mandatory formal specifications, rendering the country of origin unverified.

The court ruled in favor of the importer, holding that the customs authority’s demand—requiring certificates of origin to explicitly cite the reference numbers of supporting origin documents issued within the manufacturing country—lacked any basis under applicable customs legislation.

3.3. Recovery of Statutory Interest Over Overcharged Customs Duties Confirmed by Appellate Review

Resolution of the Arbitration Court of the Volga District dated February 8, 2023, in Case No. A57-3009/2022

A corporate trader brought an action to recover statutory interest accrued on overcharged customs duties. The plaintiff cited unlawful agency omission, demonstrating that the customs body failed to proactively calculate and disburse interest on the over-collected funds.

Pursuant to Paragraph 35 of Resolution of the Plenum of the Supreme Court of the Russian Federation No. 49 dated November 26, 2019, "On Certain Issues Arising in Judicial Practice in Connection with the Entry into Force of the Customs Code of the Eurasian Economic Union," the law mandates the payment of interest on over-collected customs duties and taxes to compensate foreign trade participants for economic losses inflicted by the unlawful seizure of their liquid assets.

The court granted the importer's claims, having established the agency's failure to act and verified the accuracy of the plaintiff's interest calculations.

3.4. Importer Deemed Entitled to Restitution of Overpaid Duties Due to Deficient Customs Classification Evidence

Resolution of the Arbitration Court of the Central District dated March 15, 2023, in Case No. A08-6792/2021

A company filed a petition seeking to invalidate a customs classification ruling and compel the refund of overpaid customs duties.

Following a post-clearance audit, the customs authority claimed that the importer had misclassified its goods under the selected EAEU Commodity Nomenclature code, subsequently issuing a reclassification decision assigning an alternative code carrying higher duty rates.

The court ruled in favor of the plaintiff and ordered a full refund, finding that the customs office failed to meet its burden of proof to demonstrate that the company's original declaration code was legally incorrect.

3.5. EAEU Court Appeals Chamber Affirms Invalidation of Tariff Reclassification for Mining Machinery

Decision of the Appeals Chamber of the Court of the Eurasian Economic Union dated March 14, 2023

The Appeals Chamber upheld the lower court's findings that the Eurasian Economic Commission (EEC) violated established product descriptions, chapter notes, and explanatory guidelines, failing to observe structural consistency when drafting and positioning the contested subheading within the EAEU Commodity Nomenclature.

The Commission's defense rested on the theory that narrow-web shearers could not be classified under any existing EAEU HS code other than subheading 8430 50 000 2, asserting that such specialized machinery was neither explicitly named nor covered by any alternative tariff line.

The court reaffirmed that the objective structural characteristics, technical properties, and functional purpose of a commodity govern its classification for customs purposes, which operators must assess against the literal text of tariff headings and relevant section or chapter legal notes.

3.6. Administrative Fines Set Aside Due to Failure of Proof Regarding Sanitary-Epidemiological Inspection Requirements

Resolution of the Arbitration Court of the Northwestern District dated March 21, 2023, in Case No. A56-87577/2021

The court sustained a petition to set aside a customs penalty issued under Article 16.3 of the Russian Code of Administrative Offenses for alleged non-compliance with statutory import restrictions (specifically, the absence of a sanitary-epidemiological clearance stamp on the bill of lading). The court ruled that the agency failed to establish the elements of the alleged offense, noting that the customs authority could not prove that the specific cargo consignment was subject to mandatory sanitary-quarantine inspections.

The judicial benches emphasized that Order No. 299 and Rules No. 500, read in conjunction with the EAEU Customs Code, mandate a three-tier compliance verification architecture tracking goods at arrival, declaration submission, and customs release phases. Prior to vessel berthing, the ocean carrier transmitted preliminary manifest data to the customs post detailing the cargo specifications, including the bill of lading numbers, commercial description, quantities, weight metrics, HS classification codes, and container identification numbers.

The courts concluded that the customs authority possessed comprehensive datasets concerning the cargo, transport documents, and commercial papers before the physical arrival of the goods at the discharge port. Consequently, the agency maintained an adequate opportunity to assess risk metrics and designate appropriate control measures for the containerized cargo.

3.7. Appellate Court Rejects Arbitrary Customs Valuation and Strikes Down Reserve Method Valuation Adjustments

Resolution of the Arbitration Court of the North Caucasus District dated March 15, 2023, in Case No. A32-4112/2022

An individual entrepreneur filed suit to invalidate customs valuation adjustments and compel the agency to remedy the resulting regulatory violations.

The customs office adjusted the declared customs value by applying the sixth (reserve) method, relying arbitrarily on historical transactional data from previously declared homogeneous goods.

The court granted the relief, finding that the transaction documentation produced by the merchant was fully sufficient to verify the transaction value. The judicial review confirmed that the entrepreneur's supporting documents—including comprehensive manufacturer price lists and export declarations—perfectly aligned with the commercial realities of the underlying transaction, containing verified data on nomenclature, volume metrics, delivery terms, and payment structures.

Upon analyzing the underlying international trade contract and technical specifications, the courts correctly deemed the agency’s benchmark data inapplicable to the disputed declarations. The historical valuation metrics utilized by customs involved industrial engines featuring higher power outputs and completely distinct technical configurations, variables that inherently escalate market costs.

The courts ruled that relying strictly on aggregated customs value indices rather than the exact unit price of identical or homogeneous goods is legally impermissible. The transaction value of the specialized equipment in question is dictated not by raw weight metrics, but by specific manufacturing brands, precise model configurations, technical properties, and accessory packages.

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