China has again complicated the sale of machinery and chemicals to Russia

On December 1, updated export control rules for dual-use goods will come into force in China, but the first problems have already begun, entrepreneurs say.

The PRC has again complicated the sale of dual-use goods abroad. They have tightened the export control rules for such products, expanding its list. Ekaterina Kizevich, CEO of Atvira, an expert practitioner of foreign economic activity, told Izvestia that from December 1, this will also affect chemistry, metals, equipment and other categories.

The updated list of products also includes IT equipment and components, said Alexey Razumovsky, Commercial director of Impaya Rus (the company works in this field). According to him, it is already difficult to bring servers to Russia, for example. And according to the new rules, from December 1, it will become even more difficult. We will have to build new logistics chains, which will probably lead to an increase in the price of the final product, Razumovsky said.

The PRC’s export control applies not only to Russia, but also to other countries, explained Pavel Kuznetsov, Vice President of the National Coordinating Center for International Business Cooperation (NCC), Deputy Director of the IKS RAS. According to him, the list of dual-use goods includes items, technologies and services that can have both civilian and military applications.

What will change for Russia in imports from China from December 1

According to the new rules, Chinese companies that will export dual-use products to Russia will be charged a 25% tax, Ekaterina Kizevich from Atvira said. There is no information about this in the official releases of the Chinese side.

Contractors from China will either have to put a tax on the price of products, or ship it through third countries, and from there to the Russian Federation, the expert noted. However, Russian importers should take into account that other countries have their own taxes, for example, 12% VAT is imposed in Kyrgyzstan. In addition, additional links appear in the supply chain, and the cost of logistics increases.

As Pavel Kuznetsov from the NCC noted, any foreign company that wants to buy dual-use products will have to provide a special report. It should describe in detail the purpose of the product, future sales trends and an assessment of security risks. At the same time, a large amount of documentation is required confirming that such products will not be used for military purposes, the expert explained.

At the same time, Russian and Chinese companies have long been developing mechanisms of interaction that allow them to continue trading, Pavel Kuznetsov recalled. According to him, the most difficult points, as before, will be payments and customs: there is quite strict reporting and fixing of transactions.

Source: https://www.alta.ru/external_news/115090/