China tightens control over exports of dual-use goods to Russia

China tightens control over exports of dual-use goods to Russia

Kyiv  •  UNN

 • 15798 views

China has tightened export controls on products that can be used in the military industry and dual-use goods, which has led to delays and increased costs for Russian importers due to increased inspections and licensing requirements.

This month, China has tightened export controls on products that can be used in the military industry and dual-use goods. Russian importers are already complaining about problems with the delivery of goods. UNN reports with reference to Russian media.

Details

The list of enhanced controls includes equipment, software, technologies, spare parts, components, engines for aviation and astronautics; everything necessary for the production of gas turbines; some equipment and software for the foundry and metallurgical industries; any design and technological documentation for these industries.

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Now, exporting these products requires a permit from the Ministry of Commerce (for example, for aviation and astronautics) or a license for the export of dual-use goods (for example, for equipment and technologies for the production of heat-resistant alloys).

The new requirements apply to all exporters, but they have already made it more difficult to deliver industrial equipment and machinery to Russia, Russian importers complain. Some of them have already faced problems because of this.

The first thing that will affect almost all shipments to Russia is the delay in terms. Now much more cargo will be inspected by customs officers

- says , an importer of industrial equipment.

According to him, customs officers used to inspect about "one container out of 50," but this week they inspected absolutely all containers, even though they contained goods that were not on the list for control.

The entrepreneur explained that more inspections mean more documents, which prolongs the clearance process. It is expected that due to delays and additional costs, the cost of cargo delivery and its prices will increase.

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Addendum

In addition, increased inspections threaten gray supply schemes - when other products are declared under the guise of one product, for example, spare parts for airplanes are shipped as plastic basins or part of the cargo is not declared at all. 

One of the importers, on condition of anonymity, admitted that a huge volume of imports is currently entering Russia under such "schemes" , and if these schemes break down, Russia will lose a lot and will be forced to pay many times more. 

Nevertheless, some companies hope that Vladimir Putin's meeting with Chinese President Xi Jinping at the SCO summit will solve this supply problem. Although their previous meeting (in mid-May, Putin visited Beijing - ed.) did not meet expectations. 

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Recall

The Russian central bank has announced that the Chinese yuan will become the main foreign currency in Russia, replacing the dollar and the euro, amid expanding US sanctions against Moscow