Importing from China and Extended Importer Responsibility: What Businesses Need to Consider

Russian companies importing products from China today face more than just customs and tax issues. Once the goods are imported, they face additional environmental responsibilities, which many entrepreneurs continue to underestimate.

We’re talking about the extended importer responsibility (EIR) mechanism. Despite its name, it essentially represents a system whereby responsibility for the future disposal of goods and their packaging is placed not on the foreign manufacturer, but on the Russian market participant that places the product into circulation in Russia.

For companies that regularly purchase goods from China, this becomes a separate compliance area, requiring accounting, reporting, and the selection of a compliance model.

Why does the importer bear responsibility?

The Chinese manufacturer is not a participant in the Russian environmental regulation system. Therefore, all responsibilities after the product is imported are transferred to the Russian importer.

He is considered the person who releases the product into circulation within the country, and therefore is responsible for compliance with established environmental requirements.

This applies to both the product itself and the packaging in which it is delivered.

In practice, many companies learn about these obligations after the first delivery, when the need arises to submit reports or calculate environmental payments.

What is the extended liability of the importer?

The basic idea of the mechanism is quite simple.

The state assumes that any product will eventually become waste. Therefore, the manufacturer or importer must contribute to the funding of its subsequent recycling or ensure such recycling themselves.

For the importer, this means having to choose one of two options for fulfilling the obligation:

• pay an environmental fee;
• organize independent waste disposal.

Moreover, the obligation applies not only to the product, but also to the packaging, if it is included in the relevant lists.

What responsibilities arise after importing products?

After importing goods, a company must ensure that several requirements are met at once.

First of all, it is necessary to determine whether the product falls under the EPR mechanism.

If an obligation arises, the following will be required:

• organize the accounting of the weight of imported goods and packaging;
• choose the method of fulfilling the duty;
• submit the required reports in a timely manner through the state information system;
• confirm compliance with recycling standards or payment of environmental fees.

In practice, product accounting becomes one of the most challenging tasks. Calculation errors accumulate gradually and are often discovered only during reporting.

What are the ways to fulfill the obligation?

The legislation provides for two main models.

1. Payment of environmental tax

The most understandable option.

The company calculates the amount of the environmental fee based on the product category, production volume, and established rates, and then transfers the corresponding funds.

This method requires minimal organizational support, but with large import volumes the costs can be quite significant.

• Self-disposal

The second option involves meeting recycling standards on your own or through a specialized organization included in the state register.

To do this, an agreement is usually concluded in advance with a licensed recycler, who ensures the processing of the required volume of waste.

If the standard is fully met, no environmental fee is paid.

Moreover, if the established standards are exceeded, part of the volume can be credited in subsequent reporting periods.

What is important to consider before the start of the year

Companies that regularly import products usually start preparing in advance.

The practical algorithm includes several stages.

First, the volume of goods that is planned to be imported during the year is forecast.

Based on this, the required volume of future disposal is calculated.

After this, it is advisable to determine in advance the model for fulfilling the duty:

• payment of environmental tax;
• self-disposal.

If the second option is chosen, it is advisable to conclude an agreement with the operator before the start of the reporting period, and not at the last moment before submitting documents.

Why accounting is more important than the environmental fee itself

A common misconception is that the main risk is associated solely with the size of the environmental fee.

In practice, the situation looks different.

Even if the payment amount itself is relatively small, failure to accurately account for the weight of goods and packaging can lead to serious problems.

If a company cannot verify the origin of its payments or provides false information, the financial consequences may be significantly more serious than the environmental payment itself.

This is why experts recommend organizing accounting at the stage of product procurement, rather than during reporting preparation.

Typical mistakes made by importers

In practice, most often several identical situations are encountered.

Firstly, the company does not analyze at all whether the imported products fall under the EPR mechanism.

Secondly, only the product is taken into account, while the packaging is ignored.

Another common error is the failure to separately account for the weight of imported products. As a result, it is impossible to confirm the accuracy of the calculations made when preparing reports.

Moreover, some organizations begin searching for a waste disposal service provider after the end of the reporting period, when it is no longer possible to meet the standards in a timely manner.

What consequences may arise?

Violation of requirements is associated not only with administrative liability.

Regulatory authorities have the right to verify the accuracy of the information provided, request supporting documents and demand that the obligation be fulfilled in full.

If violations are detected, the company may be required to pay an environmental fee, face penalties for violating reporting procedures, and incur additional financial costs associated with correcting errors.

For large importers, such costs can significantly exceed the initial cost of complying with the environmental obligation.

How to reduce risks

The most effective method remains systematic preparation.

Experience shows that it is advisable for companies to:

• determine whether the EPR requirements apply to imported goods and packaging;
• organize internal accounting of product weight;
• choose a model for fulfilling the duty in advance;
• Conclude a contract with the recycler in a timely manner when choosing self-recycling;
• store documents confirming calculations and compliance with standards;
• control the deadlines for preparation and submission of reports.

Extended importer liability has long ceased to be a formal obligation. For companies regularly purchasing products abroad, it has become part of their legal and financial risk management system.

The main difficulty lies not so much in paying the environmental fee, but in the need to establish internal accounting processes, correctly determine the scope of obligations, and promptly confirm their fulfillment.

Therefore, it makes sense for companies importing from China and other countries to consider EPR not as a standalone environmental procedure, but as a fully-fledged compliance component, comparable in importance to customs, tax, and currency control. This approach helps avoid disputes with regulatory authorities and significantly reduce risks in foreign economic activity.