We will help you to avoid the potential risks and challenges of working with Russia, assisting you to comply with the local and the US regulations

CONSULTING SERVICE:

 

The US based office of SANCTIONS ADVISER will assist you with consulting services and developing an Export Plan for compliant & legal expansion to Russia-Kazakhstan-Belarus Customs Union (CU):

  • Import Requirements and Documentation, Certification GOST

  • Labeling/Marking Requirements

  • Standards for Trade and Regulatory pathway

  • Customs Regulations

  • Intellectual property protection

  • Due Diligence

  • eCommerce. Selling US Products & Services

  • Distribution and Sales Channels

 

  • Temporary Entry

  • Prohibited & Restricted Imports

  • Trade Agreements

  • Licensing & Requirements for Professional Services

  • Selling to the Public Sector

  • Trade Barriers and Import Tariffs

  • U.S. Export Controls

  • Import Requirements and Documentation, Certification GOST

SA will assist you with import documentation in Russia-Kazakhstan-Belarus Customs Union (CU) and other requirements for both the U.S. exporter and foreign importer.

 

  • Labeling/Marking Requirements

Support in different labeling and marking requirements, including any restrictive advertising or labeling practices 

Additional labeling and marking requirements have generally been harmonized across the Eurasian Economic Union (EAEU) member states for products entering the territory, according to Technical Regulations (TR) for each product category.  Where required, the official certification mark logo (“EAC” – sometimes referred to as “conformity mark”) should be applied to each production unit, packaging

 

  • Standards for Trade and Regulatory pathway

Russia has a unique system of standards, which uses a combination of various international standards, but relies mostly on product testing as a key element of the product approval process. Russia does not have an association agreement with the EU or the United States and does not recognize internationally recognized certificates, such as the EU’s CE mark or U.S. Food & Drug Administration certificates. Such certificates can often be part of an application file submitted to the relevant Russian government agencies, but additional tests would have to be carried out in Russia.

The main Russian standards body is the Federal Agency for Technical Regulations and Metrology (Rosstandart). In the late 1990s, the Agency was responsible for developing the Russian GOST-R standards (state standards for Russia), similar to GOST standards (state standards) in the former Soviet Union. The regulatory document for which the company applied was called the GOST-R certificate and it indicated that the products conformed to the requirements of these standards.

Currently Russia uses a combination of 47 Russian and EAEU technical regulations. Once EAEU Technical Regulations come into force, they prevail over the relevant Russian technical regulations for the same products.

Russia is a member of the International Organization for Standardization (ISO), the International Electrotechnical Commission (IEC) and many other standards organizations, the list of which can be found on Rosstandart’s website.

Testing, Inspection and Certification

the Federal Service on Accreditation (RosAccreditation) is responsible for the establishment of the Unified National System of Accreditation.  It controls all legal entities and entrepreneurs accredited as testing laboratories and issues certificates to organizations.

SA is the US partner of Megregiontest is an official certification body that has all the necessary licenses, technical, human and other resources to perform a set of works for the issuance of various permits, quality confirmation certificates, product safety, etc. With our support, you can certify products and services for compliance with the requirements of GOST R, the Customs Union, ISO.

Standards

Now there are two sets of documents dedicated to TR and Sanitary Regulations.

1)      Technical Regulations (Certificate of Conformity/Declaration of Conformity)

Any U.S. exporter planning to enter the Russian market should check to see whether its products are included in the “Unified list of products and are subject to mandatory conformity and issuance of a Certificate of Conformity or Declaration of Conformity”.

2)      Sanitary Regulation (Certificate of State Registration)

 

Customs Regulations

SA will assist you with The Customs regulations of Russia-Kazakhstan-Belarus Customs Union (CU)

We can assist you with communication and regulatory standards key government standards organizations in Russia:

 

Federal Agency for Technical Regulations and Metrology (Rosstandart)

Federal Service for Surveillance in Healthcare (Roszdravnadzor)

Federal Service for Surveillance on Consumer Rights Protection and Human Wellbeing (Rospotrebnadzor)

Federal Environmental, Industrial and Nuclear Supervision Service (Rostechnadzor)

Federal Communication Agency (Rossvyaz)

Federal Service for Accreditation (RosAccreditation)

 

  • Intellectual property protection

SA provides advice and support in IPR protection, including information on the registration of patents and trademarks.

U.S. firms should take proactive steps to protect their intellectual property in Russia, including registering their trademarks with the Federal Service for Intellectual Property (Rospatent) and having the patents recorded in the Russian Federal Customs Service’s IP Register.

IP is protected differently in Russia than in the United States.  Stemming from this, companies need to ensure that their IP is registered in Russia for their rights to be enforceable under Russian law.

 

  • Due Diligence

Russia can be a challenging market which means U.S. companies need to take time to learn about the business environment and select local partners wisely.  Taking shortcuts when evaluating business opportunities and selecting local partners is not advisable.  Occasionally, basic information about regulations, company ownership and credit worthiness is not readily accessible, and the market’s regulatory framework continues to evolve, requiring companies to closely monitor changes. 

We can help U.S. firms conducting business in Russia to perform careful due diligence when vetting potential transactions and counterparties

 

  • eCommerce. Selling US Products & Services

Describes what a company needs to know to take advantage of e-commerce in the local market and covers prominent B2B websites.

Local eCommerce Sales Rules & Regulations support

Entering the Russian e-Commerce market is possible through the leading Russian on-line shops (B2C) Lamoda (fashion), Ozon, and Wildberries, as well as the social network VK which now works with AliExpress. A new cross-border support platform was also established by Yandex, called “Bringly”

 

Distribution and Sales Channels

Help in creating a distribution network from how products enter to final destination, including reliability of distribution systems, distribution centers, ports, etc.

Support in choosing an Agent or Distributor

1) Distributors

The most common market entry strategy is to select a well-established distributor or several distributors, depending on the product.  U.S. companies may consider a variety of national, regional, and local distribution alternatives.  In some product categories (e.g., apparel, cosmetics, packaged foods, alcoholic beverages, consumer electronics, and household appliances), foreign suppliers can choose from a growing number of established distributors.

2) Representative and Branch Offices

Some foreign manufacturers have established their own representative offices in addition to using distributors.  The major advantages of opening a representative office include a greater degree of direct contact with end-users and control over the promotion and distribution of products, the organization of certification

3) Foreign Subsidiaries

Some foreign manufacturers, particularly in the cosmetics, pharmaceutical, consumer appliances, durables, and industrial products sectors, have registered wholly owned subsidiaries in Russia.  These companies can sell products directly to their own subsidiary companies registered in Russia that import for their own account.  This approach provides full control to the supplier over distribution and further reduces possible risks from the false invoicing and other billing irregularities sometimes committed by independent importers and distributors. 

4) Agents

In Russia, distributors or representative offices of foreign companies often employ agents in Russian regions to promote their products.

U.S. exporters are advised to cultivate personal relationships with their Russian representatives and clients

  • Temporary Entry

Help with requirements for products entering the country/economy temporarily. Includes information on warranty and non-warranty items shipped for repairs.

  • Prohibited & Restricted Imports

We will assist you in analysis of the goods that are prohibited from being exported to the country or are otherwise restricted.

Russia has maintained a ban on the importation of nearly all U.S. as well as most European food products since August 2014 in response to Ukraine-related sanctions. Specifically, Russia imposed a ban on imports of certain agricultural and food products (covering about 52 specified HS classifications) originating from the United States, European Union, Canada, Australia, and Norway. 

Trade Agreements

Describes trade agreements this country is a party to. Includes resources where U.S. companies can get information on how to take advantage of these agreements.

Russia joined the WTO in 2012

As part of WTO accession, Russia signed the General Agreement on Trade in Services (GATS) that provides a legal framework for addressing barriers affecting trade in professional service

Russia, Belarus, Ukraine, Moldova, Tajikistan, Armenia, Kazakhstan, and Kyrgyzstan from the Commonwealth of Independent States (CIS) signed and then in the following years ratified a Free Trade Agreement (FTA), which provides the free movement of goods within the territory of the member states

 

  • Licensing & Requirements for Professional Services

 

Certain types of business activity need a special activity license issued by an authorized licensing body.  These include:

- Surveying;

- Encryption-capable IT or telecommunication systems;

- Pharmaceutical activities or the production of medicines;

- Development, production, repair, sales or trade of weapons and military equipment;

- Overseas and inland waterway passenger and freight transportation;

- Use of highly explosive or hazardous objects for production;

- Production, storage, usage or distribution of explosive materials for an industrial assignment; and

- Educational activities.

 

 

  • Selling to the Public Sector

 

The Russian government and state-owned-enterprises (SOEs) play an outsized role in the economy, with the Russian government controlling the oil and gas sector and maintaining major equity stakes in enterprises in a range of other natural resource, manufacturing and technology industries

In Russia, procurement programs, called “tenders,” are defined as competitive bidding, during which suppliers of goods and services are selected. If the company chooses to sell to both state and municipal customers then their actions are governed by Federal Law 44 

 

  • Trade Barriers and Import Tariffs

We will navigate you on the barriers (tariff and non-tariff) that U.S. companies face when exporting to this country.

Import Tariffs consulting Includes information on average tariff rates and types that U.S. firms should be aware of when exporting to the market.

 

 

  • U.S. Export Controls

 

the U.S. government export control rules that companies need to abide by when exporting to this country. Export Administration Regulations (EAR) and the implementation of risk management check with a list of “red flags” BIS has developed , or warning signs, and “Know Your Customer” guidance intended to aid exporters in identifying possible violations of the EAR

U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the Department of Commerce’s Bureau of Industry and Security requirements.

We will help you to exclude the potential risks and challenges of working in Russia, assisting you to comply with the local and the US regulations

Do you have any questions? Don’t hesitate to contact us!