Licensing in the sphere of foreign economic activity: new rules from the Ministry of Industry and Trade

On November 18, 2024, new rules for licensing in the sphere of foreign economic activity (FEA), approved by the Government Decree No. 1577, came into force. These changes concern both import and export of goods and are aimed at streamlining licensing processes, which in turn should contribute to more effective regulation of foreign economic activity in the country.

Main aspects of the new legislation

Under the new rules, licensing in the area of foreign trade will be handled by the Ministry of Industry and Trade of the Russian Federation (Minpromtorg). This agency will be authorized to issue general, one-time and exclusive licenses for goods subject to certain restrictions. It is important to note that licenses will be issued automatically for categories of goods from the unified list of the Eurasian Economic Union (EAEU) that are subject to non-tariff regulations.

Types of licenses

1. General licenses – are valid for a maximum of one year. They can be issued for regular deliveries of certain goods.

2. One-time licenses – have a limited period of validity, which corresponds to the term of the foreign economic contract. This allows for a flexible approach to one-off transactions and quick response to changes in supply and demand.

3. Exclusive licenses – are issued in cases where a special approach to licensing of specific goods is required, for example, due to their strategic importance or restrictions imposed by international treaties.

Procedure for obtaining a license

To obtain a license, a company must submit an application to the Ministry of Industry and Trade specifying the following data:

• Type of license (general, one-time or exclusive).
• Period of validity of the license (maximum – not more than one year).
• Date, number and currency of the contract.
• Information about the applicant (name, tax number, address, etc.).
• Country of destination or departure of the goods.
• Price of the goods, their quantity, description and code according to commodity nomenclature of foreign economic activity of the EAEU.

The application can be submitted both electronically and on paper, but in the latter case a digital copy of the documents must also be provided.

Conditions for refusal of licensing

The Ministry of Industry and Trade has the right to refuse to issue a license in the following cases:

• If the company has provided unreliable information in the application.
• If the tariff quota for a particular product has been exhausted.

This emphasizes the importance of the accuracy of the information provided and the need for a careful approach to completing all the necessary documents.