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The Eurasian Economic Union (EAEU) is an economic union of states located in central and northern Asia and Eastern Europe. The Treaty on the Eurasian Economic Union came into force on 1 January 2015. Today the members are Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia.

The Eurasian Economic Union has an integrated single market of 183 million people and a gross domestic product of over 4 trillion U.S. dollars (2017) (PPP). The EAEU introduces the free movement of goods, capital, services and people and provides for common policies in the macroeconomic sphere, transport, industry and agriculture, energy, foreign trade and investment, customs, technical regulation, competition and antitrust regulation.

146.8 mio. (2018)[1]



[1] GTAI „WIRTSCHAFTSDATEN KOMPAKT Russland“ November 2018

January 01. New Year

January 07. Russian Orthodox Christmas Day.

February 23. Defender of the Fatherland Day

March 08. International Women´s Day

May 01. Labour Day

May 09. Victory Day

June 12. Day of Russia

November 04. National Unity Day

In all these holidays, if the holiday lands on a weekend, the days will be reimbursed before or after the weekend.

Russian Orthodox (40-75%), Atheists (25-35%), Agnostics (20-25%), Muslims (7-15%)

42,298.00 (RUB, gross, Monthly wage, annual average 2018) [1]



[1] GTAI „WIRTSCHAFTSDATEN KOMPAKT Russland“ November 2018

USD 1,576.00 bn. (2018)[1]



[1] GTAI „WIRTSCHAFTSDATEN KOMPAKT Russland“ November 2018

GDP compostion by sectors (2016, %) [1]

(2016, %)[2]: Mining / Industry 25.6; Trading/Restaurants/Hotels 17.6; Transport/Logistic/Communication 7.9; Construction 6.8; Agriculture/Forestry/Fishing 4.7; Other 37.3



[1] GTAI „WIRTSCHAFTSDATEN KOMPAKT Russland“ November 2018

[2] GTAI „WIRTSCHAFTSDATEN KOMPAKT Russland“ November 2018

(2017, in% of the total import) [1]: Machinery 17.2; Chemical Products 14.2; Food 9.5; Elektronics 9.2; Motor Vehicles and Parts 9.2; Electrical Engineering 5.4; Textiles / Clothings 4.6; Other vehicles 4.4; Raw Materials (except fuels) 3.6; Metallic Goods 3.2; Other 19.5



[1] GTAI „WIRTSCHAFTSDATEN KOMPAKT Russland“ November 2018

(2017, in% of the total export) [1]: Mineral Oil 26.0; Petrochemistry 16.2; Naturals Gas 12.1; Iron and Steel 5.5; Chemical Products 5.2; Non-Iron Metalls 4.7; Food 4.5; Raw Materials (except fuels) 4.4; Coal 4.0; Machinery 2.3; Other 15.1



[1] GTAI „WIRTSCHAFTSDATEN KOMPAKT Russland“ November 2018

(2017, share in %)[1]

People`s Republic of China (21.2)

Federal Republic of Germany (10.0)

United States of America (5.5)

Republic of Belarus (4.7)

Italy (4.3)

France (4.0)

Japan (3.4)

Other countries (46.9)



[1] GTAI „WIRTSCHAFTSDATEN KOMPAKT Russland“ November 2018

(2017, share in %)[1]

People`s Republic of China (10.4)

Netherlands (9.6)

Republic of Belarus (4.3)

Federal Republic of Germany (4.3)

Turkey (3.6)

Republic of Korea (3.4)

Republic of Kazakhstan (3.3)

Other countries (61.1)



[1] GTAI „WIRTSCHAFTSDATEN KOMPAKT Russland“ November 2018

Product Group Export to the Hashemite Kingdom of Jordan (USD Thousand) [1] Import from the Hashemite Kingdom of Jordan(USD Thousand) [2]
All Products 126028,79 22983,55
Capital goods 1530,8 84
Consumer goods 17196,33 18350,87
Intermediate goods 41637,09 2078,25
Raw materials 65664,57 2470,43
Chemicals 6129,02 17087,45
Food Products 11928,96 455,35
Mach and Elec 1352,9 85,6
Metals 21202,51 45,73
Minerals 0 21,81
Miscellaneous 1917,8 26,17
Stone and Glass 69,47 0,32
Textiles and Clothing 616,45 2777,83
Transportation 360,07 0,11
Vegetable 72362,94 2483,1
Wood 6361,25 0,08

1. Production in Russia 2018 (Selection, Unit 1,000 pcs) [1]

Manufacture of electric domestic appliances
Household refrigerators and freezers 3,420.382
Household washing machines 4,634.296

There is no production of Air-Conditioning machines in Russia. The market is covered by imports.

2. Import of air-conditioning machines, refrigerators, freezers and washing machines to Russia 2017 (Unit USD) [2]

Import of air-conditioning machines
HS Code 8415
Air-conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated 837,231,898
Import of refrigerators and freezers
HS Code 8418000000
Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps other than air-conditioning machines of heading 802,207,865
Import of washing machines
HS Code 8450
Household or laundry-type washing machines, including machines which both wash and dry 242,057,617

The main supplier country of Air-conditioning machines is China, followed by Czech Republic, Thailand, Italy and Germany.

The main supplier country of refrigerators and freezers is China, followed by Belarus, Italy, Germany and Poland.

The main supplier country of washing machines is China, followed by Italy, Poland, Germany and Korea.

3. Export of air-conditioning machines, refrigerators, freezers and washing machines from Russia 2017 (Unit USD) [3]

Export of air-conditioning machines
HS Code 8415
Air-conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated 47,031,134
Export of refrigerators and freezers
HS Code 8418000000
Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps other than air-conditioning machines of heading 282,905,912
Export of washing machines
HS Code 8450
Household or laundry-type washing machines, including machines which both wash and dry 322,351,614

The main partner for Russian exports of air-conditioning machines is Ukraine, followed by Belarus, Kazakhstan, France and Armenia. It can be assumed that these exports are re-exports of previously imported goods.

The main partner for Russian exports of refrigerators and freezers is Kazakhstan, followed by Belarus, Ukraine, Poland and Georgia.

The main partner for Russian exports of washing machines is Kazakhstan, followed by Poland, Ukraine, Belarus and Italy.

4. Electric domestic appliances fairs in Russia

An overview of all trade fairs taking place in Russia can be found on the website of the AUMA - Association of the German Trade Fair Industry under the link https://www.auma.de/en. The AUMA service also includes the provision of the organisator and project team account information. The selection of Electric domestic appliances fairs in Russia is exemplary and by no means exhaustive.

HOUSEHOLD EXPO

Moscow / Russia (International specialized Household Goods Exhibition, twice a year)

http://hhexpo.ru/

Power, Electrical Engineering Energy And Resource Saving

Nizhny Novgorod / Russia (annual)

https://10times.com/energy-electrical-engineering-energy-and-resource-saving

International exhibition of power industry & electrical engineering

Saint Petersburg / Russia (e nergy, electrical industry, power industry, automation and lighting equipment and technologies, annual)

https://10times.com/energetika-elektrotekhnika

Purchase law and choice of law

Russia has been a member of the United Nations Convention on Contracts for the International Sale of Goods (CISG) signed April 11, 1980, since 1.9.1991. It should be noted that Russia made use of the permissible written form according to the UN Sales Convention. Thus, international purchase contracts, offer and acceptance as well as other commercial declarations of intent absolutely require the written form.

The validity of the UN Sales Convention in foreign-Russian legal transactions means that its standards for cross-border purchase contracts have priority over the national regulations. Thus, the UN sales law is in principle also applicable in the case of a choice of law clause in favor of "foreign law" or "Russian law". National laws only intervene in foreign-Russian purchase contracts if the UN Sales Convention does not regulate a particular area (for example, statute of limitations) or if the validity of the UN Sales Convention was expressly excluded in the contract.

Moreover, Russian law allows the free choice of law with regard to cross-border contracts in Article 1210 of the Civil Code. Without choice of law, the law of the country, in which the seller has his seat, applies.

Terms of delivery, INCOTERMS

It is advisable to clarify the terms of delivery according to the rules of the International Chamber of Commerce on the interpretation of trade terms - INCOTERMS 2000. This clarifies who has to deliver when and where, when to pass the risks of loss and who bears what costs. The advantage of such an agreement is the clarity of the regulations, which require no further interpretation in the case of dispute.

Retention of title

The Russian Civil Code regulates a possible retention of title. Article 491 of the Russian Civil Code provides for the possibility of a simple retention of title prohibiting the purchaser from selling or otherwise dispose of the goods before the transfer of ownership. Further differentiations, such as "extended" or "expanded" retention of title, are unknown to Russian law.

Means of security

Prior to signing the contract, it is recommended to examine the business partner by means of an extract from the Commercial Register (Unitary State Register of Legal Entities), the possibility of involvement in legal proceedings by means of a freely available database on the Internet, and possible insolvency or foreclosure proceedings. Furthermore, it is advisable to check the authority of the negotiating partner (appointment as managing director, power of attorney, etc.).

The basic rules of the Russian credit security law can be found in the Russian Civil Code.

The legal types of security include:

a. contractual penalty

b. pledge

The creditor can satisfy itself according to Russian civil law primarily from the value of the pledged property. The pledge clause in the main or sub-contract must be in writing. In the case of a pledge of company shares, a notarial certification of the pledge agreement and an entry in the commercial register are required.

c. right of retention

d. security

A security can also be used to secure later liabilities. Security contracts must be in writing. As long as no subsidiary liability of the sponsor has been explicitly agreed, the debtor and the sponsor shall be jointly and severally liable in the event of non-performance or improper fulfillment of the secured liability. Securities are accessory, i.e. they are dependent on their existence from the existence of the main obligation. In practice, securities are often granted by the parent or group company of the Russian customer.

e. guarantee

Until 01.06.2015, under Russian law guarantees could only be taken over by banks. According to the new legal situation (Articles 368 - 379 of the Russian Civil Code), independent guarantees are also possible, which can be taken over by credit institutions as well as by commercial organizations. Unless otherwise provided by the guarantee, it can not be revoked or transferred.

f. security provisions

Since 01.06.2015, Russian law (Article 381.1 of the Russian Civil Code) also provides for a security. This serves to hedge liabilities (also future) by means of a cash payment. By contrast, chattel mortgage is not known as a security transfer by the Russian law.

In addition, other legal and contractual security options are permitted.

Payment transaction

The processing of payments in Russia is handled very conservatively. As can be heard from foreign business circles, the usual payment period is between 30 and 45 days. Depending on the industry, up to 60 days are granted. For special projects, individual payment terms are negotiated.

The contract is usually preceded by a due diligence audit of the customer. The principle of payment in advance is still widespread. German companies, for example, are aiming for a down payment of about 50 percent on conclusion of the contract and the remainder on delivery. Russian companies want to make the lowest possible advance payment. Usually the compromise is about 20 to 25 percent of the invoice value.

Foreign entrepreneurs generally rate the payment behavior in Russia as good. However, since the default risk is relatively high compared to other countries, foreign companies should check their business partners thoroughly before concluding a contract to prevent unpleasant surprises. Many still insist on a down payment and timely term of payment for the balance. There may be delays around holidays when the directors are on vacation and can not release the payments.

In most cases, the creditor can speed up the process by repeatedly reminding the late payment and thus get his money in a timely manner. A structured dunning procedure makes it easier to work with debtors. In case of disputes, the case usually ends up in front of a state economic court or an international arbitral tribunal. However, this is the exception because the process is lengthy and associated with additional costs. In case of dispute, all payment entitlements must be evidenced by documents. Testimonies have little probative value. The communication should be precisely regulated in the contract - with which contact and via which telephone and fax number or e-mail address.

In view of the risk situation and costs, exporters in contracts like to rely on so-called "non-documentary" terms of payment: advance payments (against advance payment guarantee of the exporter's bank) as well as initial and interim payments to be made according to production, delivery and assembly progress, release the exporter from the risk of payment. Whereby in contrast, delivery contract credits that set a payment target for the importer carry the risk that the exporter, in the case of any justified default, will then remain without security on his claim. In Russia, letters of credit and guarantees of various types and orientations, less frequently bank-confirmed bills, are common instruments in the settlement of foreign trade financing. These are issued by the importer's bank and include a promise of payment made by the Russian bank to the exporter, which is redeemed when it submits, by mutual agreement, documents proving the performance of its services. This transfers the risk of payment default from the importer to his Russian bank.

Like a bank guarantee, the so-called letter of credit offers foreign creditors protection against non-performance. The parties agree, for example, that upon presentation of a request for payment, an invoice and transport documents, the bank must pay the creditor the purchase price, without the Bank being able to raise objections from the collateral transaction.

Warranty

The purchase warrant is standardized in the second part of the Russian Civil Code.

The purchase contract has been largely aligned with the UN Convention on the International Sale of Goods. The buyer is therefore - in case of loss of his claims for defects - obliged to timely notice of defects. If the parties have not agreed a longer period, defects must have been discovered within a reasonable period of time, but at the latest within two years of delivery of the goods. The liability of the seller occurs when the buyer proves that the defect arose prior to the delivery of the goods to him or is due to the circumstances prior to the transfer.

If the seller has not reserved any defects, the buyer has the following warranty claims in accordance with Article 475 ZGB:

– appropriate reduction

– free removal of defects within a reasonable period

– reimbursement for self-improvement

– In the case of substantial defects (for example, defects which can not be remedied and defects which can not be remedied within a reasonable time or with unreasonable financial and time expenditure, or in the case of repeating defects), the buyer may also exercise the right of withdrawal or demand the exchange of goods.

At the same time, in addition to the warranty claims, there is a claim for damages which is determined by the general provisions of Articles 15, 393 ff. of the Civil Code.

Manufacturer liability

Russian consumer protection law is primarily included in the Civil Code and Federal Law No. 2300-I "On Consumer Protection".

For the relationship Civil Code / Federal Law "On Consumer Protection" the following applies:

The Federal Law "On Consumer Protection" applies when

– this is explicitly provided for in the Civil Code,

– the Civil Code does not contain such a notice, but the Federal Law "On Consumer Protection" completes or substantiates requirements of the Civil Code,

– the Civil Code does not contain any regulations on this subject

– the Federal Law "On Consumer Protection" contains provisions diverging from the Civil Code - in cases where the Civil Code permits otherwise.

The focus of the Federal Law "On Consumer Protection" is mainly the right of consumers to safe goods, works and services, the appropriate information obligations of producers and sellers. The liability for defects of the goods or inadequate information extends to manufacturers and sellers as well as to the importer. Contract terms that violate the minimum legal standards of consumer protection are ineffective under Article 400 (2) of the Civil Code in combination with Article 16 (1) of the Federal Law on Consumer Protection.

The Russian Civil Code and the Federal Law "On Consumer Protection" standardize the no-fault product liability regime. To enforce these claims, a contractual relationship between the injurer and the victim is not required. The claims can be directed against the seller in addition to the producer. Liability shall not apply in circumstances of higher force (force majeure) and in case of violation of the rules of product use and storage by the injured party. Product liability claims are possible under Article 1097 of the Russian Civil Code in combination with Article 14 (3) Federal Law "On Consumer Protection" within the period of use and useful life specified by the manufacturer, otherwise within ten years after delivery of the product. In certain cases, indefinite assertion is permissible, for example if the legally required period of use and useful life have not been determined, or there are inadequate or incorrect consumer information about it. There might also be intangible damage to be replaced.

Prosecution

Contractual settlement of dispute clause and enforcement of foreign court decisions

Russian procedural law binds the recognition and enforcement of foreign court decisions on business and other economic disputes to a corresponding regulation in an international treaty. No such agreements between the Hashemite Kingdom of Jordan and the Russian Federation are known. As a result, Jordanian court decisions are not enforceable in Russia. In this context, a contractual choice of court agreement in favor of a foreign court and a legal action in the exporter's home country only appear to be appropriate if the Russian business partner is recognized and enforced in the exporter's country of residence or in a country where court judgments of the exporter's country of domicile are recognized.

Mediation

As a result, an arbitration agreement is recommended if one does not want to be dependent on prosecution before Russian state courts. In contrast to decisions of state courts, the recognition and enforcement of foreign arbitration awards by the New York Convention of 10.6.1958, to which more than 150 states have joined, is legally secured. It is advisable to use the standard arbitration clause of one of the reputed arbitration institutions to avoid misunderstandings.

These include, for example, the International Arbitration Court of the International Chamber of Commerce in Paris (ICC), the Arbitration Institute of the Stockholm Chamber of Commerce, the German Institution of Arbitration (DIS), the London Court of International Arbitration (LCIA), the International Arbitration Court of the Austrian Federal Economic Chamber, Vienna and the International Court of Arbitration at the Chamber of Commerce and Industry of the Russian Federation (MKAS).

In view of the current sanctions regime between the EU and Russia and the possible difficulties in administering arbitration with Russian parties in Europe, arbitration centers in Asia have also come into focus as possible dispute settlement forums in recent months. These include the Dubai International Arbitration Center, the Hong Kong International Arbitration Center, the Kuala Lumpur Regional Center for Arbitration and the Singapore International Arbitration Center.

All references given here are from public sources. Among others, the source used is "Recht kompakt Russland" (GTAI). It is expressly pointed out that all information given in the legal matters section is not legally binding information. These are general recommendations. Before concluding contracts, a lawyer should always be called in.

Harmonised System and EAEU external tariff classification [1]

The Harmonised System or 'HS' (Harmonised Commodity Description and Coding System) is a nomenclature developed by the World Customs Organisation (WCO) which comprises about 5 000 commodity groups, organised by Sections, Chapters (2 digit), Headings (4 digits) and Sub-headings (6 digits). The logic of the products classification relies on a hierarchical structure. In order to facilitate a uniform interpretation, the HS is supported by implementation rules and explanatory notes.

It is an important tool in foreign trade, as it allows the products to be exported to be accurately classified and specified according to internationally accepted definitions and standards. This classification makes it easy to determine the requirements applicable to the product in the destination country.

On 1 July 2010, the Customs Union (Union) between Russia, Belarus and Kazakhstan entered into force through the application of a common customs code and external tariff. On 1 July 2011 customs controls at the internal borders were abolished. On 1 January 2015, the Eurasian Economic Union (EAEU) came into force, which also includes the Customs Union. Member States are Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan. So, when the term customs union is used below, it is synonymous with EAEU, since all 5 members of the EAEU are also members of the Customs Union. In 1 July 2017, a new Eurasian Economic Union Customs Code (EAEU) entered into force

The EAEU external tariff classification corresponds to the Harmonized System or 'HS' (Harmonized Commodity Description and Coding System). It largely corresponds to the Combined Nomenclature (CN) of the European Union's coding system for classifying products. Up to the 8th number, the EAEU HS codes are identical to those of the EU, as shown in the example below.

HS Code EU Product HS Code EAEU
(Код ТН ВЭД)
Product Name in Russian
64 Footwear, gaiters and the like; parts of such articles (HS Chapter) 64 Обувь, гетры и аналогичные изделия; их детали
6403 Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather (HS Heading) 6403 Обувь с подошвой из резины, пластмассы, натуральной или композиционной кожи и с верхом из натуральной кожи
640391 covering the ankle (HS Subheading) 640391 закрывающая лодыжку
64039105 Made on a base or platform of wood, not having an inner sole (CN Code) 64039105 Прочая обувь, закрывающая лодыжку, с основанием или платформой из дерева, без внутренней стельки
6403910510 Handmade (Taric code) non-existent non-existent
6403910590 Other (Taric code) non-existent non-existent

This is important because, unlike the EU and China, there is no English-language platform for determining customs duties during export to the EAEU.

You use theEU Trade Helpdesk [1] to determine the CN code of the product, you want to export.

You can then enter the identified CN code in the EAEU's online platform to obtain an overview of the customs duties and, if necessary, the circumstances to be observed.

The EU Trade Helpdesk has identified the CN code for "Footwear, made on a base or platform of wood, not having an inner sole". It is 64039105.

When searching for CN code 64039105 in the EAEU database, you will receive the following information:

Russian text translation Russian text translation
Код товара CN Code 6403910500 6403910500
Единица измерения unit of measurement Килограмм (дополнительная: Пара) Kilogram (optional: Pair)
Наименование товара Product Name Прочая обувь, закрывающая лодыжку, с основанием или платформой из дерева, без внутренней стельки Made on a base or platform of wood, not having an inner sole
Импортная пошлина Import duty основная: 1.5 Евро / Пара basic fee: 1.5 Euro / Pair
Согласно документа According to the document
Импортные пошлины с истёкшим или не наступившим сроком Import duties with expired or not due date
Ввозные пошлины по странам: Import duties by country Вьетнам Vietnam (FTA with EAEU)
Товар входит в перечень МНР ТС, ЕАЭС * This product is included in the list of standards of EAEU
Требуется лицензия на экспорт [срок истёк] Export license required [expired]
Требуется сертификация [срок истёк] Certification required [expired]
Продукция подтверждаемая декларацией о соответствии [срок истёк] Product must be confirmed by a declaration of conformity [expired]
Подлежит санитарному контролю (СНГ) [1] * Subject to sanitary control (CIS) [1]
Входит в Перечень отечественных товаров, по которым частично возмещаются затраты на экспорт [срок истёк] Included in the list of domestic goods, which are partially reimbursed for export costs [expired]

* Highlighted Fields “Товар входит в перечень МНР ТС, ЕАЭС“(This product is included in the list of standards of EAEU) and „Подлежит санитарному контролю (СНГ) [1]“ (Subject to sanitary control (CIS) [1]) : Under this links you will find the appropriate documents, which regulate the necessary steps.

All three further described documents, if needed for export to the EAEU, should be requested in the member country to which it is to be exported. The documents then apply to all other EAEU member countries

1. Registration

The certificate of state registration confirms the conformity of the products with the sanitary- hygienic regulations of the EAEU. It was introduced on 1 July 2010 and is thus a replacement for the former hygienic certificates. Since then, the state hygienic registration has replaced the national systems of hygienic certification. This introduced a uniform procedure in the Customs Union. It confirms the safety of the products for human health and the compliance with the requirements of the state sanitary-epidemiological production regulations.

Legal situation

In accordance with the Customs Union Resolution № 299 of 28 May 2010 " On the application of sanitary measures in the Customs Union "[1] in the area of ​​the Customs Union, uniform sanitary-epidemiological and hygienic requirements were introduced for goods subject to sanitary-epidemiological surveillance.

The resolution contains a uniformed list of goods subject to sanitary-epidemic control prior to their entry into the EAEU.

Without the certificate of state registration, it is impossible to apply for an EAC certificate or an EAC declaration. The goods can not be imported into EAEU.

The issuing of certificates of state registration is the responsibility of accredited certification bodies in the EAEU member states. The registration procedure includes both an analysis of the manufacturer's documentation and laboratory tests and, in some cases, an inspection of the production. All state registration certificates are entered in a special register and kept there. The certificate of state registration of products is valid indefinitely within the Customs Union.

The certificate of state registration can be requested by the importer or the manufacturer.

Application area

The state registration of products is subject to all products listed in Commission Decision No. 299 of 28 May 2010.

Without registration, samples may be imported for exhibitions and promotional purposes, as well as for the registration procedure. Without registration may be imported souvenirs or second-hand goods.

Regarding the decision of the EACU № 299 of 28.05.2010 the following products are subject to registration:

  • Beverages
  • Cosmetics
  • Products of body hygiene
  • Household chemicals
  • Paints, varnishes, putty, primers, etc.
  • Clothing for children
  • Products for children under 3 years
  • Special food including baby food, food for pregnant women, dietary food, food for sportsmen
  • Food from genetically modified organisms
  • Food supplements

The goods, which are subject to uniform sanitary-epidemiological and hygienic requirements in the customs territory of EAEU, are divided into three product groups:

I. goods subject to supervision or control;

II. Goods that must be registered by the state;

III. Registration free goods.

Goods from Section II are subject to stricter controls and can only be imported into the customs territory upon proof of state sanitary registration.

Amongst other things, the following products that are the subject of this study are affected:

HS Code Product name
3304 Beauty or make-up preparations and preparations for the care of the skin (other than medicaments), including sunscreen or suntan preparations; manicure or pedicure preparations
6107 Affected by this position: Underpants, panties, nightgowns, pajamas, bathrobes, dressing gowns and similar articles knitted or crocheted for boys
6108 Affected by this position: Combinations, petticoats, pants, trousers, nightgowns, pajamas, peignoirs, bathrobes, dressing gowns and similar items, knitted or crocheted
6109 Affected by this position: T-shirts, sweatshirts with sleeves and other worn jerseys knitted or crocheted for boys and girls
6115 Affected by this position: Panty hoses, stockings, stockings, socks and followers and other hosiery and shoes without soles, knitted or crocheted for boys and girls
94 Furniture
8415 Air-conditioning machines
64 Affected by this position: footwear for children

Required documents

The following documents are required to apply for the certificate of state registration:

  • Application for registration
  • SDS Safety Data Sheet
  • Detailed product description, user manual
  • Data sheet
  • Copies of the labels with information for consumers
  • Information about the manufacturer and his address
  • Composition of products (in percentages)
  • Existing certificates: ISO, DIN, CE, CB
  • Product samples

Depending on the type of certified products, additional documents and certificates may be required. All documents must be translated into Russian and notarized. After analyzing all documentation and test reports in a notified body, the results are evaluated. If the product meets the requirements, a certificate of the state hygienic registration is handed over and the product is entered into the uniform register. If the product meets the requirements, a certificate of state registration will be issued and the product will be entered in the register.

2. Certification

The certification of goods before import into member countries of the EAEU is one of the essential control methods of the quality of products and their conformity with the state standards. The products must at least ensure the protection and safety of the consumer.

Conformity certificates from other countries are not accepted in the EAEU. For this reason, companies planning to export to the EAEU should check the obligation to assess the conformity of products during the offer phase.

EAC Certificate

The Customs Union EAC certificate is official proof that the products comply with the harmonized technical regulations (TR TS) of the participating EAEU countries. The Russian TR certification procedure was used as a model for the new joint certification system.

The products whose conformity with the technical requirements is certified by the customs union certificate may be moved and sold freely across the customs territory of all EAEU member states.

The Customs Union certificates may be issued after quality control by an independent certification body accredited in a Member State of the Customs Union.

Legal Situation

The legal basis for the EAC certification involves the board decision of the EAEU commission No. 319 from 18.06.2010 “Technical regulation in the Customs Union[2], the agreement on common principles and rules of technical regulation in the Republic of Belarus, Republic of Kazakhstan and the Russian Federation from 18.11.2010[3], and the decision of the board of the customs union commission No. 620 from 07.04.2011[4]Unified list of products subject to mandatory conformity assessment (confirmation) within the framework of the Customs Union

As a result of the harmonization of national safety standards, the previous national rules of technical regulation as well as Russian GOST and TR certification were gradually phased out and replaced by the new technical regulations of the Customs Union - TR TS in each industry sector.

Moreover, the Customs Union also introduced EAC declaration as a simpler and cheaper way of assessing conformity.

The certification process is uniform for all Member States of the Customs Union. The Customs Union certificate has a uniform form and application rules in accordance with the decision of the Customs Union Commission No. 896 [5] of 09.12.2011.

Application area

Mandatory certification or compulsory declaration is required for all products that are covered by the Unified list of products subject to conformity assessment (confirmation) within the framework of the Customs Union. For the products not included in this list, the national certification requirements continue to apply to import and distribution.

According to this list, the following products which are the subject of this market study are affected by the mandatory certification or the obligation to declare.

Product name in English Product name in Russian HS Code
Low voltage equipment Низковольтное оборудование
Refrigerators, freezers 1 холодильники, морозильники 1 8418 10
8418 21
8418 29 000 0
8418 30
8418 40
Air-conditioning machines 1 Кондиционеры 1 8415 10
Household or laundry-type washing machines, including machines which both wash and dry 1 машины стиральные, включая машины, оснащенные отжимным устройством, устройством для отжима и сушки белья1 8450
Light industry products Товары Легкой Промышленности
Special shoes (work shoes and similar) with uppers of leather 1 обувь специальная с кожаным верхом 1 6403
6405
Special shoes (work shoes and similar) with uppers of polymer 1 обувь специальная из полимерных материалов 1 6401
6402
Light industry products for children Изделия легкой промышленности для детей
Knitted underwear products for infants, toddlers and preschool children 1 изделия трикотажные бельевые для детей новорожденных, ясельного и дошкольного возраста 1 6107
6108
6109
6111
knitted underwear products for boys and girls, including sport- and swimwear 1 изделия трикотажные бельевые для мальчиков и девочек, в том числе спортивные и купальные 1 6107
6108
6109
6111
6112
knitted upper products 1 изделия трикотажные верхние, за исключением изготавливаемых предприятиями бытового обслуживания 1 6101
6102
6103
6104
6105
6106
6110
6111
6112
rubber boots and shoes, rubber-textile glued boots and shoes 1 ботики, сапожки и туфли резиновые и резинотекстильные клееные 1 6401
6402
shoes with textile uppers with rubber preformed cuffs and soles 1 обувь с текстильным верхом с резиновыми приформованными обсоюзками и подошвами 1 6404
rubber sports footwear and rubber-textile sports footwear 1 обувь спортивная резиновая и резинотекстильная 1 6402
6404
shoes made of genuine, artificial and synthetic leather, textile materials and with a combined top 1 обувь из натуральной, искусственной и синтетической кожи, текстильных материалов и с комбинированным верхом 1 6402
6403
6404
6405
carpet slippers and street shoes1 обувь домашняя и дорожная 1 6404
6405
outdoor footwear 1 обувь для активного отдыха 1 6403
6404
6405
Outerwear (gowns, blouses) for girls 1 Одежда верхняя платьевоблузочного ассортимента для девочек 1 6204
6206
6211
upper shirts for boys 1 Сорочки верхние для мальчиков 1 6205
Other light industry products Изделия легкой промышленности прочие
knitted underwear products for men and women, including swimwear, with the exception of sports products, designed to equip sports teams 2 изделия трикотажные бельевые для мужчин и женщин, в том числе купальные, за исключением изделий спортивных, предназначенных для экипировки спортивных команд 2 6107
6108
6109
6112 31
6112 39
6112 41
6112 49
Furniture Мебель
furniture for preschool institutions 2 мебель для дошкольных учреждений 2 9401
9403
furniture for educational institutions 2 мебель для учебных заведений 2 9401
9403
household furniture (tables, cabinet) 2 мебель бытовая (столы, корпусная) 2 9403
household furniture for sitting and lying 2 мебель бытовая для сидения и лежания 2 9401
9403
Packaging Упаковочные средства
metal covers for sealing glass containers of types II and III 3 крышки металлические для укупоривания стеклянной тары с венчиком горловины типов II и III 3 8309 90 900
Perfume and cosmetic products Парфюмерно- косметическая продукци
Liquid cosmetic products 2 Изделия косметические жидкие 2 3304
3305
3307
Products of decorative cosmetics on emulsion base 2 Изделия декоративной косметики на эмульсионной основе 2 3304
Products of decorative cosmetics based on fat wax 2 Изделия декоративной косметики на жировосковой основе 2 3304
Cosmetic creams 2 Кремыкосметические 2 3304
3305
3307
Cosmetic products (powder and compact) 2 Изделия косметические порошкообразные и компактные 2 3304
Cosmetic hygiene products 2 Изделия косметические гигиенические моющие 2 3305
3307
3401

1) Certification

2) Declaration of conformity based on evidence obtained with the participation of a third party

3) Declaration of conformity on the basis of own evidence

Required documents

The following documents are required to apply for the Customs Union certificate:

  • Detailed product information
  • Product name
  • Customs tariff number
  • Technical passport
  • Safety justification
  • Technical drawings and pictures
  • Technical data sheet
  • Operating Manuals
  • Test reports
  • Already available certificates: ISO, DIN, CE, CB certificates

Depending on the type of certified products, other additional documents may be required.

If the goods submitted for certification are also subject to sanitary or hygienic control, appropriate proof of issuance of the Customs Union certificate is needed.

EAC certification process

The EAC certification procedure consists of the following steps:

1. Application to an accredited certification body in the EAEU

2. The certification body checks your documents

3. Classification of the product and selection of samples

4. Testing and analysis

5. Production audit (if provided in the technical regulations)

6. Issue of the certificate

7. Monitoring of certified products (if provided)

The application for a certificate can be carried out according to different procedures: for individual deliveries, for series deliveries, and for series productions.

Included information

The Customs Union Certificate includes the following information:

  • Address and name of the manufacturer
  • Names of certified products
  • Customs tariff number
  • Applied standards of Technical Regulation
  • Data about the testing center
  • Period of validity
  • Registration number
  • Data on the notified body

The EAC certificates of the EAEU apply in all member states within the EAEU and are valid for up to 5 years. The issued EAC certificates are registered in the uniform register of the EAEU.

3. Declaration

EAC Declaration of Conformity to Technical Regulations of the EAEU is evidence that the products meet the minimum requirements of the Technical Regulation of the Eurasian Economic Union (EAEU). This ensures that products are safe both for consumers and the environment.

The EAC declaration must be registered in the EAEU's uniform register by a notified body accredited in the member state of the EAEU. An EAC declaration registered in the member state of the EAEU applies to the entire union.

The existence of an EAC declaration registered in the unified register of the EAEU is a prerequisite for placing products on the market in Russia, Belarus, Kyrgyzstan, Kazakhstan and Armenia.

Legal Situation

The legal basis for the EAC certification involves the board decision of the EAEU commission No. 319 from 18.06.2010 “Technical regulation in the Customs Union[6], the agreement on common principles and rules of technical regulation in the Republic of Belarus, Republic of Kazakhstan and the Russian Federation from 18.11.2010[7], and the decision of the board of the customs union commission No. 620 from 07.04.2011[8]Unified list of products subject to mandatory conformity assessment (confirmation) within the framework of the Customs Union

Application area

The products subject to declaration according to the decision of the Customs Union Commission №620 of 07.04.2011 are listed in the consolidated list .

Required documents

Each TR TS has different requirements for documentation. Typically these are:

  • Product name
  • Detailed product information
  • Customs tariff number
  • Technical passport
  • Operating Manuals
  • Safety justification
  • Technical drawings and pictures
  • Technical data sheet
  • Test reports
  • Already available certificates: ISO, DIN, CE, CB certificates

The certificate and the declaration have the same validity. The products subject to conformity, which are listed in the resolution of the Commission of the Customs Union № 620 of 07.04.2011, must therefore either be certified or declared.

EAC declaration procedure

In general, the EAC declaration procedure consists of the following steps:

1. You must define which technical standards your product must meet.

2. Now select the scheme according to which the conformity assessment procedure should run.

3. Carry out tests and log properly.

4. If the results are positive, you can prepare the necessary documents. The required documents are listed in the relevant technical regulations.

5. Issuing of the declaration

6. Send declaration and documents to an accredited certification body in the EAEU

7. The declaration will be entered in the single register of the EAEU.

Included information:

  • Address and name of the manufacturer
  • Name of the declared products
  • Customs tariff number
  • Applied standards of Technical Regulation
  • Data about the testing center
  • Period of validity
  • Registration number
  • Data on the notified body

Requirements and standards for refrigerators, freezers, washing machines and Air-Conditioning machines intended for export to the EAEU are regulated by the document " Safety requirements for low-voltage equipment “ (TR TS 004/2011), confirmed by Decision No. 768 of the Council of the Eurasian Economic Commission of 16.08.2011 [1].

TR TS 004/2011 represents the minimum safety requirements for electrical equipment in order to protect life, health, property, and environmental as well as protecting consumers against misleading information.

According to TR TS 004/2011, electrical devices shall be designed and manufactured in such a way that when used as intended they protect against the following:

- Electric shock

- Overheating

- Fire

- Mechanical injuries

The products must comply with the requirements of TR TS 004/2011in order to be placed on the Russian and Eurasian market.

Although the requirements of the technical regulation TR CU 004/2011 have been coordinated with the requirements of the Low Voltage Directive 2014/35/EU, they are not identical.

The compliance with the requirements of the technical regulation TR TS 004/2011 is a prerequisite for the admission and marketing of goods within the customs union. In addition, the products are subject to the compulsory conformity assessment procedure and shall be marked with the uniform EAC marking of the Eurasian Economic Union.

TR TS 004/2011 extends to the following products:

- Household electrical appliances

- Personal electronic computer machinery

- Devices that can be connected to electronic computer equipment

- Electric tools

- Electronic musical instruments

- Power cables

- Automatic and safety switches

- Devices for power distribution

- Electrical control units

- All low-voltage devices, not listed in other lists of certification-required devices

TR TS 004/2011 is not applied to:

- Explosion-proof equipment

- Medical technology

- Electrical equipment of elevators

- Military technology

- Control units for electric fences

- Electrical equipment for use in Air-, water- and ground vehicles

- Electrical equipment for safety systems of nuclear power plants / reactor plants

Note: Irrespective of whether products are subject to conformity assessment according to TR TS 004/2011 or not, they may also be required to comply with other directives. These are, for example, TR TS 037/2016 “On the restriction of the use of certain hazardous substances in electrical and electronic equipment"[2], TR TS 010/2011 "On safety of machinery and equipment"[3] or TR TS 020/2011 "On electromagnetic compatibility of technical devices"[4] may be subject to compliance.

Release for free circulation in the EAEU

Low-voltage equipment is released into circulation on the market when it complies with these technical regulations of the Customs Union, as well as other technical regulations of the Customs Union, which are applicable to it and when it has passed the confirmation of compliance in accordance with Article 7 of these Technical Regulations of the Customs Union, as well as in accordance with other technical regulations of the Customs Union which are applicable to it.

Low-voltage equipment, the compliance of which with the requirements of this technical regulation of the Customs Union has not been confirmed, should not be marked with a single circulation mark of products on the market of the Customs Union member states and is not allowed to be released into circulation on the market.

Low-voltage equipment not marked with a single circulation mark on the market of the Customs Union member states is not allowed to be released into circulation on the market.

Safety Requirements

According to TR TS 004/2011 low-voltage equipment should be manufactured in such a way that it meets the requirements of the safety for low-voltage equipment.

These requirements include for low-voltage equipment, amongst other things: [5]

Article 4. Security Requirements

Low-voltage equipment must be designed and manufactured in such a way that when it is used for its intended purpose and fulfilling the requirements for installation, operation (use), storage, transportation (transportation) and maintenance, this equipment provides:

Required level of protection against direct or indirect impact of electric current;

Absence of unacceptable risks of high temperatures or other discharges or radiation that may cause hazards;

Necessary level of protection from injury by rotating and fixed parts of low-voltage equipment;

Necessary level of protection against the danger of non-electric origin arising during the use of low-voltage equipment, including those caused by physical, chemical or biological factors;

Necessary level of insulation;

Required level of mechanical and switching wear resistance;

Required level of resistance to external influencing factors, including non-mechanical nature, under appropriate climatic conditions;

Absence of unacceptable risks in case of overloads, emergency conditions and failures caused by the influence of external and internal factors;

Absence of unacceptable risks during connection and (or) installation.

Low-voltage equipment must be designed and manufactured in such a way that it can not be the source of fire in normal and emergency working conditions. The required level of information must be provided to the consumer (user) for the safe use of low-voltage equipment for the intended purpose.

Compliance with safety regulations

The accordance of the low-voltage equipment with TR TS 004/2011 is ensured by fulfilling its safety requirements directly or by meeting the requirements of the standards included in the List of standards, as a result of which voluntary compliance with the requirements of the technical regulations of the Customs Union is ensured.

Research methods (tests) and measurements of low-voltage equipment are established in the standards included in the List of standards containing the rules and methods of research (tests) and measurements, including sampling rules necessary for the application and execution of the requirements of the technical regulations of the Customs Union and implementation evaluation (confirmation) of product compliance.

TR TS 004/2011 also specifies the labelling of Low-voltage equipment to be imported.

Article 5. Requirements for labelling and operational documents [1]

1. Name and (or) designation of low-voltage equipment (type, brand, model), its main parameters and characteristics affecting safety, the name and / or trademark of the manufacturer, the name of the country where the low-voltage equipment is manufactured, must be applied to low-voltage equipment and are listed in the accompanying operational documents.

In this case the manufacturer name and (or) his trademark, name and designation of low-voltage equipment (type, brand, model) must also be applied on the packaging.

2. If the information provided in clause 1 of this article cannot be applied direct to the low-voltage equipment, then it may be indicated only in the operational documents attached to this equipment.

In this case the manufacturer name and (or) his trademark, the name and designation of low-voltage equipment (type, brand, model (if any)) should be applied to the package.

3. The marking of low-voltage equipment must be legible, easily readable and applied to low-voltage equipment in an accessible place for inspection without disassembly using the tool.

4. Operational documents for low-voltage equipment should contain:

- Information listed in clause 1 of this article;

- Information about the designation of low-voltage equipment;

- Characteristics and parameters;

- Terms and conditions of safe operation (use);

- Terms and conditions of installation, storage, transportation,

implementation and disposal (if necessary - setting requirements for

them);

- Information on measures to be taken when a failure of this equipment is

detected;

- Name and location of the manufacturer (or a person authorized by the

manufacturer), the importer, necessary contact information;

- Month and year of manufacture of low-voltage equipment and (or)

information about the place of applying and the method for determining

the year of manufacturing.

5. Operating instructions have to be executed in Russian and in the state language (s) of the EAEU - Member State, if there are relevant requirements in the legislation (s) of the State (s) of the EAEU Member (s).

The operating instructions must be in printed form.

A set of operating instructions on electronic media can be attached to them.

EAC-Marking (see article 8 of TR TS 004/2011)

Low-voltage equipment complying with the safety requirements of this technical regulation of the Customs Union and having passed confirmation of conformity in accordance with Article 7 of this technical regulation of the Customs Union shall be marked with the mark EAC.

EAC - Mark is carried out before the release of low-voltage equipment into circulation on the market.

EAC-Mark has to be applied to each unit of low-voltage equipment in any way that provides a clear and clear image throughout the life of the low-voltage equipment, and is also provided in the operational documents attached to it.

It is allowed to apply the EAC-Mark only on the package and in the operational documents attached to it, if it cannot be applied directly to low-voltage equipment.

Packaging

Special requirements for the packaging of products are not included in TR TS 004/2011.

In case of doubt, the regulations of TR TS 005/2011[2] apply. Further information can be found there.

Article 1 of TR TS 005/2011 states in relation to the import of packaged goods into the EAEU:

“All types of packaging … packaged during the production of such products released into circulation in the customs territory of the Customs Union are subject to the requirements of only Articles 2, 4, 5, clauses 1,2 of Article 6, Article 9 of this technical regulation.”



[1] The overview is exemplary; the current wording of TR TS 004/2011 applies.

TR TS 004/2011 also regulates the standards for low-voltage equipment. A related Russian-language list (“Перечни стандартов“) is available online [1] .

On 12 January 2019, Council Decision No 49 of the Eurasian Economic Commission entered into force and is now being increasingly implemented by the customs offices of the states of the Eurasian Economic Union (EAEU). According to this, when issuing certificates of origin for the importation of certain goods into the EAEU member states, notes on proofs that underlies the origin determination must also be provided in addition to the country of origin. Decision No. 49 [1] is available in English on the Eurasian Economic Union website.

The decision contains provisions on rules of origin and proof of origin in the area of ​​non-preferential origin of goods for imports into EAEU Member States.

The requirements on the rules of origin apply to all goods.

The requirements for the proof of origin provide the company with an option (see point 23, resolution no. 49). Proof of origin may be either in the form of an origin declaration (of the exporter) or of a certificate of origin (possibly of a local chamber of commerce).

For certain goods, however, this option does not exist. Here proof of origin is required in the form of a certificate of origin. This obligation to produce a certificate of origin applies primarily to goods for which domestic market protection measures are applied under the EAEU Agreement for example, goods whose import is limited in quantity by quotas or other non-tariff arrangements). [2]

Producer and supply chain requirements[1]

There are obviously no uniform regulations on this topic in the EAEU.

The Eurasian Commission works in various committees with the OECD and is guided by the principles of the OECD, but it has not come to a proper formulation of requirements for producers and supply chain requirements in the EAEU so far.

The following documents of the Eurasian Commission are the closest to such requirements:

1. Commission Decision No 77 of 03.11.2016: "On the confirmation of the EAEU proper (fair) production practices” [2]

However, these are very product-specific regulations for the pharmaceutical industry in the EAEU, but are explicitly based on the regulations for GMP (Good Manufacturing Practice).

2. “Decree to establish and maintain a unified register of products which are subjected to minimum requirements in the EAEU“ [3]

3. “Decree to establish and confirm a register of international and regional (transnational) standards, in the absence of such standards of national (state) standards, which comply with the requirements of the EAEU technical regulations. Decree to establish and confirm a register of international and regional (transnational) standards, in the absence of such standards of national (state) standards, which contain rules and methods of tests and measurements, including rules for the selection of samples suitable for demonstrating compliance with the requirements of the EAEU Technical Code and for assessing the conformity of the objects.”[4]

However, documents 2 and 3 were still in the discussion stage at the time of preparing this market analysis. At the present time, therefore, the already described EAEU TR TS are the standards that apply to corresponding products.

Despite this, people are aware of the fact that there must be regulations for their products which go beyond purely technical requirements.

First and foremost, these are environmental requirements, as they play the most important role in the consciousness of consumers.

In the media, questions of ecology and sustainability of all products which are subject of this market study are widely discussed.

Consumers are increasingly paying attention to sustainably produced goods - if they can afford it financially.

For example, in the Russian Federation an Environmental Management Certificate is awarded. The certificate of environmental management is a confirmation that the environmental management system of an enterprise meets the existing requirements of ISO 14001.

So far, however, it is not yet possible in the EAEU to use its own other labels in addition to the markings specified in the corresponding TR TS.

Additional labels are required above all by manufacturers who want to point out sustainable production, environmental compatibility etc. with the help of certain labels. Corresponding regulations are discussed in the bodies of the EAEU, but a final decision has not yet been made. [5]

EAEU Import procedures - introduction

On 1 July 2010, the Customs Union (Union) between Russia, Belarus and Kazakhstan entered into force through the application of a common customs code and external tariff. On 1 July 2011 customs controls at the internal borders were abolished. On 1 January 2015, the Eurasian Economic Union (EAEU) came into force, which also includes the Customs Union. Member States are Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan. On 1 July 2017, a new EAEU Customs Code came into force. [1]

(Under the link above, there is also an English version of the Customs Code, expressly designated as unofficial)

EAEU customs declaration [2]

Goods are subject to the customs declaration when they are subjected to the customs procedure. Goods for personal use are also subject to the customs declaration. Vehicles for international transport are also subject to the customs declaration. Customs declaration is carried out in electronic form.

A customs declaration in paper form is permitted:

1) When placing goods under the customs procedure of customs transit;

2) For goods for personal use;

3) For goods sent by international mail;

4) For international transport vehicles;

5) If transport-, commercial or other documents are used as a customs declaration, including those laid down in international treaties of the Member States with a third party;

6) In other cases determined by the Eurasian Commission or the member states.

A customs declaration in paper form is also possible if the customs body is for technical reasons unable to process an electronic customs declaration.

Types of customs declaration:

1. The goods declaration is used when placing goods under customs procedures (except for the customs procedure of customs transit) and in some cases in the customs declaration of supplies

2. Transit declaration is used when placing goods under the customs procedure of customs transit

3. Passenger customs declaration is used for the declaration of goods for personal use, and when placing goods for personal use under the customs procedure of customs transit

4. The vehicle declaration is used for the customs declaration of vehicles of international transport and in some cases for the customs declaration of supplies

An overview of all forms of customs declaration and corresponding templates (in Russian) can be found under this link.[3]

EAEU Customs Procedures [4]

Depending on the purposes of the location and use of goods in the customs territory of the Union, their removal from the customs territory of the Union and (or) location and use outside the customs territory of the Union, the following customs procedures are applied. It is a selection, a complete list can be found under this link[5] in Russian.

​Release for free circulation

​ The release for free circulation may already take place at the border of the EAEU or at the customs office of destination inland.

Import duties such as customs duties, customs clearance fees, import sales tax and, if applicable, excise duties are payable. In addition, trade policy rules such as prohibitions and quantitative restrictions, licensing requirements and certification must be observed. The products released for free circulation receive the customs status of EAEU goods and can be used freely in the customs territory of the Russian Federation and in other EAEU member countries without any restrictions. ​

​Export

​This customs procedure applied to the goods are exported from the customs territory of the Union for permanent stay outside.

Customs transit

​Customs procedure for goods which are transported from the customs body of departure to the customs body of destination without paying customs duties, taxes, special, anti-dumping, countervailing duties under the conditions for placing goods under this customs procedure

Customs warehouse

​Customs procedure for foreign goods, which are stored in a customs warehouse without paying import duties, taxes, special, anti-dumping, countervailing duties, subject to the conditions for placing goods under this customs procedure and using them in accordance with this customs procedures.

Processing in the customs territory

​ Customs procedures for foreign goods processed in the customs territory of the Union. The aim is to obtain the necessary documents needed for subsequent export from the customs territory of the Union, without paying import duties, taxes, special, anti-dumping and countervailing duties on these foreign goods.

​Processing for domestic consumption

​Customs procedures for foreign products processed in the Customs Union for sale and use after processing in the Customs Union

Free customs zone

​Customs procedures for foreign goods and goods of the Union which are placed in the Free Customs Zone or part of it, without having to pay any customs duties, taxes, special, anti-dumping and countervailing duties.

Free warehouse

​Customs procedures applicable to foreign goods and goods of the Union which are put into the free warehouse and used there without having to pay customs duties, taxes, special, anti-dumping and countervailing duties.

​Temporary importation

​Customs procedures for foreign goods temporarily located and used in the customs territory of the Union

​Free trade

​Customs procedures for foreign goods and Union goods sold in duty-free shops

Special customs procedure

​​ Customs procedures for certain categories of foreign goods and goods of the Union, transported across the customs border of the Union, and (or) used in the customs territory of the Union or outside the Union, without paying any customs duties, taxes, special and anti-dumping duties, countervailing duties.

Import duties Russian Federation

Imports of goods into the customs territory of the Russian Federation are subject to import duties: Customs duties, customs clearance fees, import turnover tax and, where applicable excise duties.

The basis of the customs value is the transaction value of the goods, ie the price at which the goods were actually sold, increased by expenses incurred in connection with the delivery to the Russian border (transport, insurance, packaging, commissions, etc.), but these are not part of the contractually agreed price (CIF value).

Imported goods are subject to import duty tax in addition to customs.

The basis of assessment for the import turnover tax is the sum of the customs value, the customs amount and, if applicable, excise duties. The standard rate of the import turnover tax is 20 percent since 1 January 2019. The reduced rate of 10 percent applies to many foods, children's products and printed matter. (except promotional materials)

Import procedures Russian Federation [1]

Customs clearance in Russia does not necessarily have to be carried out with the help of a customs agent if the importer is established in the Russian Federation.

However, if a customs agent will be used, itmust be a Russian legal or natural person who is authorized to clear customs on behalf of the importer. The customs agent must be registered with the Russian customs.

The background to this rule is that, according to the Customs Code, the declarant may only be a resident of the respective country of the Eurasian Economic Union, for example the Russian contractor.

He is tax and customs debtor and responsible for compliance with non-tariff measures.

The customs declaration may be lodged by the importer himself or by the customs representative at the competent customs office.

The accompanying documents distinguish between the documents which must generally be kept for customs control and those which have to be submitted with the electronic customs declaration.

For the electronic customs declaration, only the following accompanying documents must be submitted:

- Power of attorney of the declarant

- Purchase contract

- Commercial invoice, pro forma invoice

- Packing and loading lists - one signed original and four copies

- transport / freight documents (CMR, CIM consignment note, bill of lading, air waybill)

- If applicable, preference proof or certificate of origin for goods subject to protective measures such as anti-dumping

When using the electronic customs declaration, all documents can be submitted in electronic form; this includes scanned originals.

The exemption from the submission of documents, such as the proof of conformity, does not release the importer from obtaining and maintaining such documents. The customs declaration also contains fields in electronic form in which the registration numbers of such documents, such as proof of conformity, must be entered.

In general, the following documents must be available, depending on the type of goods:

- Conformity certificates and declarations

- Animal health and phytosanitary certificates

- State registration certificates and licenses

For customs value determination according to the transaction value, the following documents are required:

- Founding documents of the company of the buyer

- Sales contract together with all attachments;

- Commercial invoice;

- Bank statements or other certificates of payment of the purchase price;

- All contracts and invoices for insurance, transport, packaging of the goods, but also all evidence of licensing and other fees and brokerage and agency activities that are incurred for the delivery of goods to the border.

1. A basic requirement for an export success - in addition to a suitable and demanded product as well as good sales or trading partners - is an honest and self-critical assessment of your company. Ask yourself these questions below and discuss them with your business partners and family. We tried to answer some questions at least partially. But first and foremost, your knowledge and initiative is important.

Is the product suitable for export?

Is there enough time available for company management and employees for foreign activities?

Does the company have enough employees for additional activities?

Is the know-how of the employees sufficient?

Are your language skills and / the language skills or of the employees sufficient?

Is there enough capacity to meet an increasing demand if the start was good?

Do other business areas (e.g. product development, other marketing activities) need to be limited to save time and money?

Do you need to build up additional capacities (e.g. production, logistics, accounting, sales, marketing)?

2. Choosing the right target market is also very important. The fact that you are convinced of your product does not automatically mean that it is also the potential customers of the chosen target market.

Is the new foreign market different from the markets you know?

Which specific customer groups do you want to address?

Which (other) needs do the customers have?

How do your products cover these needs?

What prices are paid for comparable products?

How do you want to fit into this price structure?

Are special labeling requirements for your product to be observed?

What financial options do the customers have you want to address?

Which distribution channels you can use to reach these customers?

Which competitors are there in the target market?

Are you familiar with the customs (payment methods, traditional delivery and insurance conditions, cultural features) of the target market?

Is your target market really the right one?

3. Sales abroad - at least in the start-up phase - will be unsuccessful without reliable partners in the target market.

How do you find customers or business partners in the target market?

How do you plan your customer and business partner relationship management?

How can you distribute your products successfully in the target market?

What should you pay attention to during business talks?

4. It's always about the money. Before you make money with the export, you first have to spend money. Check your budget, to make an honest decision: can you even afford the export?

What financial resources are available to you?

Which budget do you plan for your export activities (a budget set in advance makes the step abroad financially calculable even in the case of a failure)?

Are you liquid enough to finance the foreign engagement?

Can you use or finance unused capacity in the event of a sluggish course (e.g. in the start-up phase)?

Do you need to translate, print and distribute promotional materials?

Do you have to pay for consultants and interpreters?

5. No risk, no fun, as it is jokingly called, but a risk assessment is indispensable.

Are there any financial sponsorship programs or special export promotion programs for your products?

Are there any insurance policies that reduce the risk of exports?

How will export affect the financial situation of your company?

Some (in any case incomplete) answers

Is the new foreign market different from the markets you know? How do you find customers or business partners in the target market?

There are different possibilities.

Attend international fairs in your country that are relevant to your product - you probably do that anyway.

Go to Russian exhibitors and get in touch.

Check which trade fairs take place in the Russian Federation that are relevant to your product - for example, via the AUMA.[1] Consider whether it is worth visiting. You should not immediately think about presenting yourself as an exhibitor (these are unnecessary costs in the first step). See such trade shows as an opportunity to engage with potential distributors and get to know potential competitors. Incidentally, you can also easily get an idea about the offer and prices in the relevant stores of the target market.

Good sources of information are also bilateral chambers in your country or other foreign business organizations. If there is no chamber representation of the Russian Federation in your country, look for contact with the Russian embassy in your country. As a rule, there is an economic officer in every embassy who will gladly advise you. Apart from that, contacts to the embassy of the destination country are always worthwhile...

Maintain contacts to companies from the Russian Federation, located in your country - also via chambers and trade associations. Even if they have nothing to do with your product at first glance: Relationships only harm those who have none. You get first-hand information about the Russian market and who knows, maybe the person you are talking to will have interesting contacts in your industry.

How do you plan your customer and business partner relationship management?

Making contacts is relatively easy; maintaining business contacts over a longer period of time is much more difficult. But doing business with an existing client is much easier and cheaper than constantly recruiting. The following tips make it easier to maintain contacts:

Information: Inform your customers about changes - new contact persons or direct dial numbers, new products and locations, new distribution channels or export successes. It also encourages customers to share similar information with you. So you stay up to date. Also inform foreign customers about changed funding opportunities or new export regulations. You show that you do not just want to do current business: In the sense of a holistic customer relationship you have the well-being of the customer in mind.

Personal: Do not hesitate to collect personal information about your most important business partners: birthdays, family, hobbies, etc. This gives you the opportunity to stay in contact outside the business relationship - on a very personal level.

Invitations: Invite customers over and over again when there is something new or when you are presenting at a trade fair or similar.

Cultural features: If you have foreign customers, it is important to know the customs of the exporting country more closely. When are holidays? Which gifts are usual? Take advantage of these opportunities to be remembered as an attentive business partner.

Spontaneity: Do not be afraid to call "spontaneously" if, for example, an important intermediate step has been reached in order processing. Your customer will be grateful to you, because he always feels sufficiently informed.

Business environment: Maintain contacts not only with your actual business partners, but also with your Business environment. Secretary, assistant or important employees are decisive multipliers for future orders.

Business meetings and negotiations in Russia[1] [2]

Knowledge of the English language is common, but you will do well if you have an accomplished Russian interpreter with you. Your host will usually feel better, which is very important for the conversation. Russians appreciate an interest from foreigners in the Russian language, so an attempt to learn or at least partially speak with them in their language is a good idea.

For men, suit and tie are required. Women should wear skirt or costume.

Punctual appearance is expected of you, which does not mean that the host must also be punctual. The higher his rank, the more likely it is that you have to wait a few minutes beyond the agreed time.

For greetings – shake hands firmly and maintain direct eye contact. If you meet a man in a business meeting – a firm handshake is mandatory, if there are several people in a room – handshakes with all the men in the room are mandatory. In some Russian companies women might be not used to handshakes. If you see that women do not extend their hands for a handshake – you can just say hello, acknowledge them and maybe bow a bit.

You should definitely have bilingual business cards (English / Russian) in sufficient numbers and quality.

(When ordering business cards, make sure that the Russian translation is correct and error-free.)

As for the business cards exchange – no rituals in Russia. Most likely people at the meeting will just pass you their business cards and you should do the same. Nobody will pay attention at how you handle business cards (with one hand or both hands). Business cards are just a convenient way to exchange contact info. Some people will not even have cards with them because of various reasons (new to the company etc.)

You will be offered tea or coffee in any office meeting. Choose what you want and accept with brief thanks. If you do not drink instant coffee and are outside of the capital – choosing tea is your best bet – it will be a good brewed tea since tea culture is prominent here.

When served tea or coffee, it is a good time to mention how much you value Russian hospitality. But in the same time – make sure that the small talk lasts no longer than 3-4 min. Russians are very direct, so you can talk freely about your goals and expectations.

You better stay serious, when talking business. No need to smile much. Russians tend to approach business meetings seriously, too many smiles may ruin their perception of you and make them wonder whether you have serious intentions. On the other hand: If you will be able to connect to them on the emotional level – next time they see you – they will smile because they know you and like you and that will be a sign of appreciation, not the smile “out of custom”. So, try to make an emotional connection with your audience. To do that well – observe what you see around.

Never use first names unless invited to do so, as it important to respect authority and formality. You can use ‘Gospodin’ (Mr.) or ‘Gospozha’ (Mrs.) plus their surname. However, if you know the person’s full name, it would be more appreciated if you use a combination of name and patronymic.

Patience is important with Russians, negotiations can often be slow. As the Russian proverb states, do not ‘hurry to reply’, but ‘hurry to listen’.

Avoid hard selling techniques and any sort of conflict or confrontation. It is insulting to summon someone with the forefinger. Instead, turn your hand so that the palm faces down and motion inward with all four fingers at once.

Russians don’t usually make an immediate decision in a meeting; usually a certain amount of deliberation is done in private afterwards.

It is difficult to do business in Russia without the help from a local “connection”. To help with this, gifts are often a good idea when doing business in Russia. Presents symbolising the stature of your company and the importance of the impending business deal, preferably an item characteristic of your local area or one that displays the company logo. So gifts are common, but they are usually exchanged at the end of the meeting. Don’t be alarmed if the recipient protests before taking a gift — for Russians it is not polite to accept gifts straight away. The host will present to his guest an appropriate gift. Companions of the guest usually get no gift and if, then only a small one. So you should be prepared to have some smaller gifts with you, which can then be presented to the host's companions. However, you should only do this if your companions have previously received a gift.

Invitation to a restaurant

After the business is done, you will see that your hosts are more prone to chat than before. That is a great time to talk about almost any subject. It is quite possible that your host will invite you for lunch or dinner after the meeting. Agree! You will have a great time and will be able to get to know these people. Relax about not being allowed to pay for your meal and drinks. Hosts will always pay, it is part of their hospitality, so do not insist. Try to avoid business talks at the dinner table (talking about business at lunch is acceptable).

You do not have to drink vodka or drink any alcohol if you do not wish to do so. Just say that you cannot drink due to religious or some health issues and there will be no questions asked.

Be a good listener, most stories will be long, bear with that. If your host tells a joke – laugh or smile even if it does not sound funny. Tell your own long stories, your host will listen to you attentively. And, what is most important – relax and have fun! Russian people may look unapproachable from a first glance, but if you make a connection with them, especially if you share a meal – you might be surprised how warm they are.

Russians do not drink alcohol without first making a toast. Even if you are not drinking alcohol, be prepared to make a toast over the course of the evening, praising Russia and your hosts for their hospitality.

Are there any financial sponsorship programs or special export promotion programs for your products?

Here you should talk with banks from the Russian Federation, if they are represented in your country and of course with your house bank. Chambers and business associations are other good contacts. It is important to have contact with international development cooperation organizations. These can provide information on ongoing projects in your industry and related funding opportunities. Use the discussions with the international development cooperation organizations to obtain information on other organizations, such as foreign foundations, where further information on potential export subsidies is available.

Agency for Small and Medium-Sized Enterprises (Agency MSP)

State agency for the development of the middle class; Search and development of local suppliers

www.corpmsp.ru

Arbitration Institute at the Stockholm Chamber of Commerce

http://www.sccinstitute.com

Chamber of Commerce and Industry of the Russian Federation (CCI of Russia)

https://tpprf.ru/en/

Dubai International Arbitration Centre

http://www.diac.ae

Embassy of the Hashemite Kingdom of Jordan in Moscow

http://jordanembassyru.org/

Federal Agency for the Management of Special Economic Zones

http://eng.russez.ru/

Federal Customs Service

http://eng.customs.ru/

German Institution of Arbitration (DIS)

http://www.disarb.org/en/

Hong Kong International Arbitration Centre

http://www.hkiac.org

International Arbitration Court of the Austrian Federal Economic Chamber, Vienna

http://www.viac.eu

International Court of Arbitration at the Chamber of Commerce and Industry of the Russian Federation (MKAS)

http://mkas.tpprf.ru/en/

International Court of Arbitration of the International Chamber of Commerce in Paris (ICC)

http://www.iccarbitration.org

Kuala Lumpur Regional Centre for Arbitration

https://www.aiac.world/

London Court of International Arbitration (LCIA)

http://www.lcia.org

Ministry of Economic Development

http://economy.gov.ru/en/home

Ministry of Industry and Trade

http://minpromtorg.gov.ru/en/

Online map of the clusters, industrial and technoparks of the Ministry of Industry

www.gisip.ru

Russian investment agency

Funding Agency for Foreign Direct Investment in Russia

http://invest-rf.com/

Singapore International Arbitration Centre

http://www.siac.org.sg