Dual-Use Goods

As part of Russia’s implementation of international agreements in the field of export control (Wassenaar Arrangements, the Treaty on the Non-Proliferation of Nuclear Weapons, etc.), measures are being developed and taken to ensure the identification of controlled goods and technologies: dual-use goods. The objectives of such measures are export control of dual-use goods and technologies and nuclear weapons, as well as the prevention of arms accumulation.

Controlled goods and dual-use technologies include raw materials, components, equipment, scientific and technological information, work, services, the results of intellectual activity that can be used to create weapons of mass destruction, weapons delivery systems, and other types of weapons and military equipment. In other words, these are goods that can be used in everyday life (civilian use), as well as in the creation of weapons and military equipment. So, for example, some ingredients that are used to produce various paints and adhesives can also be components of explosives.

In Russia, there are currently six controlled lists of dual-use goods and technologies:

List of chemicals, equipment and technologies that can be used to create chemical weapons and for which export control is established,
List of microorganisms, toxins, equipment and technologies subject to export control.
List of dual-use equipment and materials and related technologies used for nuclear purposes, for which export control has been established.
List of equipment, materials, and technologies that can be used to create missile weapons and for which export control has been established.
List of dual-use goods and technologies that can be used to create weapons and military equipment and for which export control is carried out.
List of nuclear materials, equipment, special non-nuclear materials, and related technologies subject to export control.

Commonly used checklist symbols:

XO (01) – List of chemicals, equipment, and technologies that can be used to create chemical weapons and for which export control has been established

BO (02) – List of microorganisms, toxins, equipment and technologies subject to export control

RO (04) – List of equipment, materials and technologies that can be used to create missile weapons and for which export control has been established

DN (05) – List of dual-use goods and technologies that can be used to create weapons and military equipment and for which export control is carried out

NF (03) – List of dual-use equipment and materials and related technologies used for nuclear purposes for which export control has been established

IS (06) – List of nuclear materials, equipment, special non-nuclear materials and related technologies subject to export control

In Russia, export control in relation to the above products is carried out by the Federal Service for Technical and Export Control (FSTEC of Russia).

Types of permits applicable to dual-use products

Export and import of goods falling into the lists both under the HS code and by name are carried out on the basis of a one-time license issued by the FSTEC of Russia.

One-time license

FSTEC One-Time License is an official document authorizing the applicant to export (import) controlled goods.

A one-time license is issued for the supply of a specified product, under a single contract, for a period of up to 1 year. The one-time license shall indicate the quantity of goods, HS code 4, country of final use, the seller (sender), and the buyer (recipient).

The license can be issued for a Russian legal entity or a legal proprietor.

A one-time export license is issued for goods from any of the six lists of controlled products. A one-time import license is issued only for:

chemicals listed in sections 1-3 of List 01;
microorganisms and toxins listed in Schedule 02;
radioactive isotopes listed in List 03;
Section 5 of List 05 (means of detecting objects and monitoring them)
all goods of Schedule 06 (radioactive materials, reactors).

One-time licenses are not issued to import goods from the List 04.

Amendments to the license are not allowed, with the exception of extending the validity period (it can be extended by no more than 1 year to complete the obligations of a foreign economic transaction participant in foreign economic activity).

A state fee of 7500 rubles is supposed to be paid in order to receive a one-time license.

Processing time for a one-time license is no more than 45 days.

Criterion	One-Time License
Procedure	Export, import
Good	Concrete controlled product
Purchasing or selling country	One
End-user	Specified
Basis for issuing	Government expertise, Foreign trade transaction
Applicant	Russian legal entity or individual entrepreneur

Permission of the Export Control Commission of the Russian Federation

Commission authorization will be required in the following cases:

1) for the temporary export of controlled goods without transferring them to an alien with subsequent return to the territory of Russia (for example, temporary export of goods to an exhibition);

2) for the export of goods that do not fall into the control lists of products, but can be used to create weapons of mass destruction, their delivery vehicles, other types of weapons and military equipment, or are delivered to persons with respect to whom there is information about their participation in terrorist activities.

The permit is issued by the Export Control Commission (ECC). The Commission includes the director of the FSTEC of Russia, representatives of the Federal Customs Service, the Ministry of Internal Affairs, the Federal Security and Military Service, the Federal Security Service, the Ministry of Defense, the Ministry of Economic Development, the Ministry of Foreign Affairs, the Ministry of Industry and Trade, Rostekhnadzor (Federal Environmental, Industrial and Nuclear Supervision Service of Russia), etc. The Chairman of the Commission is the Deputy Chairman of the Government of the Russian Federation.

The decision to issue or refuse to issue a Permit is made based on the results of a state examination of foreign economic transactions conducted by the FSTEC of Russia, together with other federal bodies.

The term for consideration of documents is 45 calendar days.

Identification Conclusion of the FSTEC of Russia

In cases where the imported (exported) goods do not fall into the lists of dual-use goods, the FSTEC issues the conclusion that the products do not qualify as controlled.

Such a conclusion is often required if the product is technologically sophisticated equipment and almost always in cases of export or import to certain countries (Ukraine, Iran, Israel, Syria, Afghanistan).

The conclusion is issued for the import (export) of a certain amount of a specific product, indicating the buyer (seller) and the end-user of the goods in a particular country. Goods exported (imported) should not be copied, modernized, re-exported, or transferred to third parties without the written consent of the exporter (importer) agreed with the FSTEC of Russia. The conclusion is valid for the duration of the foreign trade contract.

Conclusion of an independent identification examination

The FSTEC of Russia also grants Russian organizations special permission to conduct an independent identification examination of goods and technologies.

The opinion on the identification examination contains information about the Russian and foreign participants in the foreign economic operation, the end-user and the country of destination, as well as the object of the examination (goods) indicating the quantity supplied, its characteristics, technical parameters, and the HS code.

Based on the results of the examination, a conclusion is drawn about the belonging (non-belonging) of products to goods and technologies included in the control lists, about the application or non-application of special economic measures with respect to goods, countries, and participants in the foreign economic transaction.

The conclusion of an independent identification examination is the basis for the import (export) of goods and has no expiration date.

FSTEC Russia clarification letter

In addition to Licenses, Conclusions, and Permits in the field of export control, another type of document issued by the FSTEC of Russia is used: an explanation letter at the request of the applicant in relation to uncontrolled goods. This explanation letter contains the conclusion of the FSTEC of Russia on the non-application of prohibitions and restrictions on goods when moving them outside the Russian Federation.

The document is issued for the supply to a specific country of a certain type of product, classified by a certain HS code, which is not included in any of the lists of controlled goods, unless the exported goods are delivered to foreign countries under the sanctions of the UN Security Council or will be used by foreign organizations, in relation to which there is information about their involvement in the military program of foreign countries. Such a letter can be issued, for example, for simple household goods, such as split-systems for cooling and heating rooms (HS code 8415). The letter does not contain a reference to a foreign trade contract and has no expiration date.