Over the past year, large-scale sanctions were imposed against Russia by a number of states and organizations. Export bans on the supply of key and necessary goods, as well as geopolitical measures of a financial and economic nature have led to the rupture of the usual supply chains from abroad and the withdrawal of many companies from the Russian market. Taking into account the new global and political reality, parallel imports were legalized.
Parallel import is the process of importing goods to Russia produced in other countries without the official permission of the copyright holder.
In order to develop new markets, stabilize and protect the Russian economy, and prevent shortages of important goods, the Federal Law No. 213-FZ of 06/28/2022 was adopted, legalizing parallel imports. Goods, that can be imported without the permission of the copyright holder, are provided in the list of the Ministry of Industry and Trade.
Parallel imports have become a significant share in the total trade turnover of Russia with other countries of the world, especially in the Asian regions.
In 2022, the trade turnover between Russia and China increased by 29,3% in annual terms. At the end of the year, the figure was a record 190,27 billion USD. This was reported by news agencies with reference to the data of the Main Customs Administration of the People's Republic of China. The trade turnover with India in 2022 increased by 130% in annual terms and reached 31 billion USD. Also, according to the statement of Denis Manturov, the Minister of the Ministry of Industry and Trade of the Russian Federation, in 2022 the trade turnover between Russia and the UAE increased by 68% compared to 2021 and reached 9 billion USD.
Official data confirm the turn of the global Russian economy to the East, and such a significant increase in trade turnover with Asian countries shows a significant restructuring of business in a new direction.
Building new partnerships with counterparties allows not only to establish import supply chains of goods and technologies, but also to promote domestic products to foreign markets.
However, without due diligence and deep analysis of the counterparty, cooperation with foreign companies is associated with the risks of financial losses. There is a risk of entering into transactions with an unreliable company, the risk of supplying counterfeit or defective goods.
Foreign company reports
Using Information and Analytical system Globas you can check counteparties around the globe. Companies registered in Kazakhstan, Kyrgyzstan, Belarus, Moldavia, Tajikistan, Latvia and Ukraine are included in the subscription. If your counterparty is registered in another country, Globas can provide an online report or fresh investigation.
Fresh investigations are being prepared by experts of the Information Agency Credinform in cooperation with a wide network of local experts. The document complies with international standards and includes, in particular, registration data, management, shareholders, types of activities, balance sheet, profit and loss statement. Taking into account the changed conditions, a unified risk assessment of foreign companies has been added to offline reports. The expert opinion also includes an analysis of the company's activities, a study of the financial condition, checking for sanctions, debts, participation in court proceedings, etc. Experts opinion on maximum credit and credit risks are based on the analysis of financial statements and the facts of the partner's activities. The experts of the Information Department additionally search for affiliates and subsidiaries in Russia, and verify participation in legal proceedings and enforcement proceedings in Russia.
Along with commercial due diligence when choosing a partner, it is necessary to mind the following requirements when selling goods obtained by parallel import:
- only original goods may be subjects of parallel import;
- the goods must comply with Russian quality and safety standards;
- the end seller must have all permits;
- mandatory preservation of the warranty on the goods for the buyer in accordance with the law on consumer protection;
- if the product falls under the requirements of the labeling law, then such a product needs to be labeled.
When working with a foreign counterparty, it is important to comply with the legislation of the country of each of the parties to the contract and pay special attention to the study of financial sanctions and export-import restrictions.
In addition to the global sanctions lists of the United States, EU countries, Japan, Great Britain, Canada, etc., it is important to take into account Russia's Special economic measures against a number of legal entities and individuals the transactions and any trade and economic activity with whom are prohibited.
Check whether sanctions or special economic measures of Russia have been applied against your counterparty using Globas
. Automate your clients and counterparties check with the Sanctions Risks report. The functionality of the report allows you to carry out a comprehensive analysis of legal entities, individual entrepreneurs, divisions and persons for inclusion in the sanctions lists, evaluate indirect and secondary sanctions, including the 50 Percent Rule.