Individual permit to export goods in light of retaliatory export restrictions imposed by Russia

The export ban covers goods pertaining to a wide range of industries, such as industrial and telecommunications equipment, agricultural machinery, and many others.

A detailed list of goods is contained in Appendix No. 1 to Government Decree No. 311 in the form of a table stating the EAEU TN VED (product nomenclature) code and the product description. We should point out that only the EAEU TN VED code is significant for the purposes of applying the list; the product description is provided for the sake of convenience.

Government Decree No. 311 provides a fairly extensive list of exclusions, according to which the export ban does not apply to:

• Goods exported to EAEU member states
• Goods originating in the territory of Russia which are accompanied by an ST-1 certificate of origin or another certificate confirming the Russian origin of the goods
• Goods produced in the territory of special economic zones and free warehouses
• Goods taken out by individuals for their personal use
• Goods taken out as stores of a vessel or aircraft
• Goods being taken out of Russia which were previously brought in under an ATA carnet, and others

If the above exclusions do not apply, there is a scenario under which goods listed in Appendix No. 1 to Government Decree No. 311 can be exported to third-party countries.

According to clause 1.1 of Government Decree No. 311, cross-border traders can apply for a temporary individual permit to export a limited quantity of goods (“Temporary Permit”).

A Temporary Permit is issued to an exporter by decision of the Chairman, First Deputy Chairman or Deputy Chairman of the Government of Russia (in accordance with the division of responsibilities) on the basis of recommendations from the Ministry of Industry and Trade of Russia.

We should point out that the procedure and timeframe for the receipt of a Temporary Permit are not currently laid down in law, which may also give rise to questions or uncertainty among cross-border traders.

Obtaining a Temporary Permit involves multiple stages (set out below), and our experience shows that it takes 3 to 4 months.

1. A reasoned application with a legal position is submitted to the Ministry of Industry and Trade.
2. The reasoned application is considered by the Department for International Cooperation and Licensing in the Area of Foreign Trade of the Ministry of Industry and Trade.
3. The application is referred for approval by relevant departments of the Ministry of Industry and Trade.
4. A Report with an appendix (detailing the characteristics of the product requested for export), addressed to the Chairman of the Government, is drafted and sent to competent federal executive bodies for approval.
5. The Report approved by the federal executive bodies is endorsed by departments of the Ministry of Industry and Trade and the Report is signed at the level of the Ministry of Industry and Trade and then forwarded to the Government (for the receipt of a resolution from the Deputy Chairman of the Government / the Minister of Industry and Trade of Russia). The Report with the appendix is sent to the Federal Customs Service (the details of the resolution are entered by the Consignor / Exporter in Box 44 of the goods declaration).

Given that the procedure for obtaining a Temporary Permit is not laid down in law, our experience indicates that it is essential to consider the following in dealing with the Ministry of Industry and Trade:

• When considering the application, the Ministry of Industry and Trade may make additional inquiries to verify that there is good reason for the goods to be exported. For example, it may inquire whether talks were held with Russian enterprises or potential buyers from EAEU states on purchasing the goods.
• Given that the timeframes are not laid down in law, inquiries of this kind from the Ministry of Industry and Trade should be answered as promptly as possible.
• When preparing an application and responses to inquiries from the Ministry of Industry and Trade, it is essential to provide relevant and specific information and to take a thorough approach to preparing the application. This includes providing detailed information on the goods concerned, including identifying marks, country of destination / origin, and quantity, and explaining why they need to be exported.

It should also be noted that, before applying to the Ministry of Industry and Trade, a preliminary check should be made as to whether it is necessary to obtain clarifications/positions from other state bodies. One of our clients had a situation where goods had already been sold to a foreign counterparty but were still physically located in Russia. In light of this, an application was first made to the Federal Customs Service to confirm that the foreign entity could act as the declarant. This is extremely important given that details of the Temporary Permit have to be provided for customs clearance.

In our view, given the lack of any specific regulations governing the receipt of a Temporary Permit, it is essential to enter into active communication with the Ministry of Industry and Trade and to provide as detailed explanations as possible of the reasons for exporting goods as well as detailed information about the goods themselves.

• Assessing the applicability of export bans and restrictions established by Government Decrees No. 311, No. 312 and No. 313 of 09.03.2022
• Lobbying your company’s interests in terms of providing practical support in seeking amendments to Government Decrees No. 311, No. 312 and No. 313 of 09.03.2022
• Providing practical support in obtaining an individual temporary permit to export goods in accordance with Government Decree No. 311
• Providing practical support in obtaining authorization documents needed to export goods from Russia