Consolidated version on the implementation of Council Regulation No 833/2014 and Council Regulation No 269/2014 [Version of 2 October 2023]

The EC has published an updated consolidated version of its FAQs on the implementation of Council Regulation No 833/2014 and Council Regulation No 269/2014 in light of the ongoing conflict in Ukraine. The consolidated version includes FAQs concerning EU sanctions adopted following Russia’s military aggression against Ukraine.
Below we would like to present the questions concerned in full, together with a brief summary of the corresponding answers:
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Section D „TRADE AND CUSTOMS.“, topic 2 „EXPORT-RELATED RESTRICTIONS FOR DUAL-USE GOODS AND ADVANCED TECHNOLOGIES“
Amended Question 1 (p.123) What is the purpose of this Guidance and how do the new export restrictions in the Sanctions Regulation relate to existing sanctions against Russia?
Answer: A series of EU Council Regulations enacted between February 2022 and June 2023 have strengthened EU export restrictions under the Sanctions Regulation. These regulations provide guidance for competent authorities and stakeholders, including exporters, on implementing these export restrictions without altering the existing regulatory framework.
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Amended Question 12 (p.129) What situations are covered by the exemptions under the Sanctions Regulation?
Answer: Articles 2(3) and 2a(3) of the Sanctions Regulation provide for six limited exemptions from the export restrictions provided that certain conditions and requirements are fulfilled, i.e. the use of the exemption is declared to the customs authorities and a notification is made the first time it is used. These exemptions apply to:
– humanitarian purposes, health emergencies, the urgent prevention or mitigation of an event likely to have a serious and significant impact on human health and safety or the environment or as a response to natural disasters;
– medical or pharmaceutical purposes;
– temporary export of items for use by news media;
– software updates;
– use as consumer communication devices; or
– personal use of natural persons travelling to Russia or members of their immediate families travelling with them, and limited to personal effects, household effects, vehicles or tools of trade owned by those individuals and not intended for sale. For exemptions related to transit through Russia, please check question 42.
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Amended Question 13 (p.129) What situations are covered by the derogations with requirement of authorisation under the Sanctions Regulation?
Answer: The Sanctions Regulation, as outlined in Article 2(4), mandates the need for authorization from the competent authority in eight specific scenarios, effectively prohibiting item exports until such authorization is granted. These scenarios encompass various situations, including cooperation in civilian matters between the European Union, Member States, and the Russian government, intergovernmental cooperation in space programs, the operation, maintenance, and safety of civil nuclear capabilities, maritime safety, civilian non-publicly available electronic communication networks not publicly controlled, the exclusive use of entities owned or controlled by legal entities incorporated under the laws of Member States or partner countries, diplomatic representations, and cyber-security for individuals, entities, and bodies in Russia, excluding the government and its controlled undertakings.
Furthermore, Article 2a(4) expands on this framework by providing nine additional derogations requiring authorization from the competent authority, with the same prohibition on item export until approval. These scenarios mirror those outlined in Article 2(4), emphasizing cooperation in civilian matters, intergovernmental cooperation in space programs, civil nuclear capabilities, maritime safety, electronic communication networks, exclusive entity use, diplomatic representations, and cyber-security. Additionally, it includes scenarios involving the exclusive use under the full control of the authorizing Member State to fulfill maintenance obligations in areas covered by long-term lease agreements between that Member State and the Russian Federation.
Article 12b introduces a temporary derogation specifically for divestment from Russia or winding down business activities, subject to certain conditions. Authorizations under this derogation can be requested until 31 December 2023.
For contracts concluded prior to 26 February 2022, relevant information can be found in questions 29 to 32. Situations involving individuals or entities listed in Annex IV are addressed in question 20. For specific derogations related to transit through Russia, refer to question 43. These provisions establish a comprehensive regulatory framework for managing exports and business activities related to Russia, including both authorization requirements and timelines.
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Furthermore, Question 23 „How did you select the individuals and entities listed in Annex IV of the Sanctions Regulation?“ was deleted.
The subsequent questions have therefore been renumbered accordingly.
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Amended Question 42 (p.143) Does the Sanctions Regulation affect the export of controlled goods shipped in transit through Russia by land to third countries?
Answer: The Sanctions Regulation, specifically Articles 2(1a) and 2a(1a), imposes a ban on the transit through Russia of dual-use goods and advanced technology items as specified in Annex I and Annex VII to Regulation 2021/821, which are exported from the EU. There are five limited exemptions under Articles 2(3a) and 2a(3a) and four derogations under Articles 2(4a) and 2a(4a) that provide exceptions to this prohibition. Exemptions include uses for humanitarian purposes, medical or pharmaceutical needs, temporary exports for news media, software updates, and consumer communication devices. Derogations apply to intergovernmental space programs, civil nuclear activities, maritime safety, and cyber-security, excluding the Russian government and its controlled entities.
Regarding business transactions with EU-incorporated companies owned or controlled by Russian entities, the Sanctions Regulation export restrictions do not affect transactions solely within the EU involving EU-based companies. However, for contracts involving EU-incorporated entities linked to listed persons or entities, further information can be found in question 35.
Apart from the Sanctions Regulation, certain Russian individuals and entities are subject to individual financial restrictions outlined in Council Regulation (EU) No 269/2014. These restrictions involve freezing assets and prohibiting the provision of funds or economic resources to the listed individuals or entities. Making funds or resources available to non-listed entities owned or controlled by a listed entity will typically be considered as indirectly aiding the latter, unless it can be reasonably proven otherwise using a risk-based approach.
EU exporters are also forbidden from knowingly participating in activities aimed at circumventing these restrictions. In all situations, due diligence on business partners and the ultimate destination of funds or economic resources is crucial to ensure compliance with the sanctions measures.
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Amended Question 46 (p.145) How does the EU ensure and verify that EU exports of items covered by the Sanctions Regulation to third countries are not re-exported to Russia?
Answer: EU operators must establish robust due diligence procedures to prevent the diversion of covered items to Russia. This involves measures such as incorporating liability clauses into contracts with third-country partners to hold them responsible for any re-exports to Russia and conducting post-export verifications.
Sanctions are enforced and implemented by EU Member States, with the Commission overseeing their compliance. If a covered item initially exported from the EU to a third country is subsequently re-exported to Russia, the EU exporter’s failure to conduct adequate due diligence may be considered a breach of the Sanctions Regulation. Deliberate non-compliance can be viewed as participation in circumvention schemes.
Furthermore, the Commission, in collaboration with international partners, has identified specific dual-use goods and advanced technology items that are prohibited from export to Russia under Regulation 833/2014. These items are related to Russian military systems found in Ukraine and crucial to their development, production, or use. Notable examples include electronic components like integrated circuits and radio frequency transceiver modules, as well as items essential for manufacturing and testing electronic components of printed circuit boards recovered from the battlefield.
To aid due diligence and enhance compliance, a list of these battlefield items, known as Common High Priority Items, can be referenced in Annex II of the FAQ. This list serves to support exporters in their due diligence efforts and assists customs and enforcement agencies in partner countries in preventing their territories from being exploited for circumventing EU sanctions.
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Amended Annex II – List of Common High Priority Items (p.151)
In response to Russia’s aggression against Ukraine in February 2022, the EU and its international partners imposed comprehensive restrictive measures. These sectoral sanctions are designed to hamper Russia’s ability to conduct the war by restricting its access to critical technologies and markets, thereby weakening its industrial base.
These sanctions specifically target Russia’s military industrial complex and its access to advanced technology. The European Commission, in coordination with authorities in the US, UK, and Japan, identified dual-use goods and advanced technology items used in Russian military systems found on the Ukrainian battlefield or essential to the development and production of these systems. These items include integrated circuits, radio frequency transceiver modules, and components for electronic circuit boards.
These battlefield items are categorized into a list known as Common High Priority Items, which can be found in the Annex of the Guidance Note. This list serves as a tool for exporters to enhance due diligence and supports anti-circumvention actions by customs and enforcement agencies in partner countries to prevent the misuse of their territories for circumvention purposes.
The Common High Priority Items list is divided into four Tiers, encompassing a total of 45 dual-use and advanced technology items subject to sanctions under the Russia Sanctions Regulation. These items are associated with Russian weapons systems used against Ukraine, such as the Kalibr cruise missile, the Kh-101 cruise missile, the Orlan-10 UAV, and the Ka-52 „Alligator“ helicopter.
The Tiers are as follows:
Tier 1: Four HS codes related to integrated circuits (microelectronics).
Tier 2: Five HS codes containing electronics items connected to wireless communications, satellite-based radio-navigation, and passive electronic components.
Tier 3: Subdivided into 3.A (16 HS codes) with discrete electronic components, electrical plugs and connectors, navigation equipment, and digital cameras, and 3.B (nine HS codes) used for exporting mechanical and non-electronic components like bearings and optical components.
Tier 4: Comprising 11 HS codes related to manufacturing equipment for producing and testing electric components and circuits.
It’s worth noting that the Common High Priority Items list is dynamic and subject to periodic adjustments based on what is discovered in Russian military systems on the battlefield and Russia’s utilization of sensitive sanctioned items. This list replaces the previous version released on June 23

Section D „TRADE AND CUSTOMS.“, topic 5 „IMPORT, PURCHASE AND TRANSFER OF LISTED GOODS“
Question 11 „What do I need to know before I plan to import into the Union iron and steel products as listed in Annex XVII when processed in a third country?“ was deleted.
The subsequent questions have therefore been renumbered accordingly
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A new subsection named „Article 3g(1)(d) iron and steel products processed in third countries incorporating iron and steel inputs from Russia“ was inserted:
Part A) GENERAL
New Question 1 (p.170) Does the ban under Article 3g(1)(d) apply to all iron and steel products?
Answer: The text specifies the application of a restrictive measure outlined in Article 3g(1)(d). This measure exclusively pertains to iron and steel products listed in Annex XVII when they are processed in a third country and incorporate iron and steel inputs originating in Russia, as also listed in Annex XVII. The relevant product categories fall under tariff headings 7206-7229 within Chapter 72, as well as the entire Chapter 73.
It is important to note that for products listed in Annex XVII, the specific third country where they are processed before import into the Union is not a determining factor. The critical requirement is to demonstrate that these products do not include the specified iron and steel inputs from Russia, as indicated in Annex XVII.
The text offers illustrative examples to clarify these principles. Example 1 concerns fasteners (heading 7318) manufactured in a third country (e.g., China, India) from wire rod (e.g., 7221) sourced from Russia. Importation of such products into the Union is prohibited, given that both CN codes 7318 and 7221 are included in Annex XVII unless certain exceptions or derogations apply.
In Example 2, a product of Russian origin not listed in Annex XVII, when leaving Russia, undergoes processing in a third country, transforming it into a good listed in Annex XVII. Importing this processed product into the Union is not restricted, provided that it includes Russian inputs not covered by Annex XVII.
Example 3 outlines a scenario in which a Russian-origin product listed in Annex XVII when leaving Russia is used as a component in a third country, ultimately creating a product not listed in Annex XVII. Importation of this final product into the Union is permitted, as the product entering the Union is not included in Annex XV.

New Question 2 (p.170) Are reusable packaging, e.g. containers, made of iron and steel and containing other, non-prohibited goods, also subject to the prohibition in Art. 3g?
Answer: The prohibition specified in Article 3g pertains to goods declared in the customs declaration for a given procedure. Goods classified as durable metal packaging, which are routinely utilized as part of standard business practices and exclusively intended to house the imported, purchased, or transferred items, are exempt from this prohibition. However, when these items, such as empty containers, are the primary focus of the importation, for instance, the import of steel containers for subsequent release into free circulation, they are not regarded as mere packaging and thus fall under the prohibition. In such cases, national authorities must exercise vigilance to prevent potential circumvention of the prohibition.

New Question 3 (p.171) Does the prohibition also apply to restricted goods that are already within theterritory of the Union before entry into force of the relevant restrictive measures?
Answer: The text states that import and transfer restrictions under Council Regulation No. 833/2014 do not apply to goods already in free circulation within the EU. However, goods within the EU not yet in free circulation may face restrictions under Article 12e of the regulation.

New Question 4 (p.171) Does ‘import’ or „purchase“ also refer to goods which are not purchased but areimported only temporarily for the purpose of repair and are re-exported to thethird country after repair?
Answer: Yes. As for all other restrictive measures prohibiting the import, transfer or purchase, ‘import’ isto be understood broader than ‘release for free circulation’ and covering all customs proceduresand formalities.

New Question 5 (p.171) When does the prohibition under Article 3g(1)(d) start applying?
Answer: The prohibition on importing or purchasing iron and steel products made with Russian iron or steel varies based on the input materials and their associated implementation dates. It commences on 30 September 2023 for products listed in Annex XVII, excluding those under CN codes 7207 11, 7207 12 10, or 7224 90. Starting from 1 April 2024, it applies to products in Annex XVII containing items from CN code 7207 11, and from 1 October 2024, it includes products with CN codes 7207 12 10 or 7224 90.
Products categorized under CN codes 7207 11, 7207 12 10, and 7224 90, considered as semifinished products, can mention the Russian Federation in the Mill Test Certificate (MTC) as the country corresponding to the heat number until specific dates. However, the Russian Federation should not be indicated as the country where other processing operations occurred to enable the import, transfer, or purchase of the product.
After 1 April 2024 for CN code 7207 11 inputs and after 1 October 2024 for CN codes 7207 12 10 or 7224 90 inputs, as well as from 30 September 2023 for products using all other iron or steel inputs in Annex XVII, the Russian Federation should not appear in the MTC, either as the country corresponding to the heat number or for other processing operations.

New Question 6 (p.172) Does the application of Article 3g (1) (d) of Regulation (EU) No 833/2014 alsoextend to products that were manufactured or processed in a third country before30 September 2023?
Answer: A prohibition on importing iron and steel products with Russian inputs into the EU began on 30 September 2023. This rule applies to products made after 23 June 2023. If these products were already in the EU before 30 September 2023 and presented to customs, they can still be bought or transferred under Article 12e. The goal is to ensure a smooth transition for these goods within the EU.

New Question 7 (p.172) Should the time of import be based on the first import into the EU, or should eachimport of the same goods be considered separately?
Answer: Compliance with restrictive measures is imperative for all imports, even if the goods were temporarily taken out of the Union or imported in multiple shipments. Goods initially imported into the Union before the specified deadline, such as September 30, 2023, which are subsequently sent to a subcontractor in a third country for repair through outward processing and intended for re-import into the EU after September 30, 2023, must also adhere to the prohibition.
In the case of identical goods shipped in several consignments, national competent authorities can, under certain circumstances, accept a single piece of evidence. This applies when products from the same supplier are similar over a specified time period, and there are no grounds for suspecting potential circumvention. It also applies when the same batch of products is imported in different shipments for legitimate logistical or other reasons. National authorities must exercise caution to prevent any breaches or circumvention of these measures.
Ensuring compliance with these restrictions is vital to avoid violations and maintain the integrity of the import process. Compliance is necessary for all imports, including cases involving repairs abroad and multiple shipments of identical goods, where authorities can consider accepting a single piece of evidence to streamline the process and prevent circumvention.

B) EVIDENCE AND PROOF OF ORIGIN OF IRON AND STEEL INPUTS
New Question 8 (p.173) What do I need to know before I plan to import into the Union iron and steel products as listed in Annex XVII when processed in a third country?
Answer: The text outlines the requirements and obligations related to the prohibition of importing iron and steel products in the European Union (EU) and ensuring their origin. Importers in the EU must provide evidence of the country of origin for iron and steel inputs used in third countries for processing these products.
For semifinished products, importers can use the mill test certificate (MTC) as evidence. This certificate should establish the production facility’s name, the country corresponding to the heat number, and the product’s classification at the subheading level.
For finished products, importers can use MTCs or multiple MTCs if necessary. These certificates should include the country and facility corresponding to the heat number, the classification at the subheading level, and the details of processing operations like hot-rolling, cold-rolling, coating, welding, and more.
Importers are responsible for the accuracy of the information in the MTC or MTCs submitted to customs authorities in the Member State of import as evidence of origin. In case of reasonable doubt, customs authorities may request additional evidence, such as separate mill test certificates for different transformation steps, and all certificates must be coherent with one another.
No evidence is required for goods that have already been imported into the Union or for the transfer of goods between Member States that were previously imported into the Union. This framework aims to ensure transparency and compliance with the prohibition on imported iron and steel products in the EU.

New Question 9 (p.174) Is the mill test certificate (MTC) the only document that is accepted as evidencethat the goods to be imported in the Union do not incorporate iron and steel inputsas listed in Annex XVII originating in Russia?
Answer: The MTC serves as an example but is not the exclusive proof of origin for iron and steel inputs used in processing products imported into the EU. National competent authorities are responsible for determining additional acceptable evidence. This can include declarations from exporters or manufacturers stating that Russian steel or iron is not present after exercising due diligence. Invoices, delivery notes, supplier’s declarations, including long-term declarations, business correspondence, production descriptions, quality certificates, and clauses in purchase orders or contracts with origin information may also be considered.
The type of documents required may vary based on the nature of the product, especially for finished goods like sewing needles or tubes. It is crucial for national authorities to evaluate evidence reasonably and proportionately, taking care to prevent breaches or circumvention. The Commission will actively oversee the uniform implementation of these procedures to ensure consistency across member states.

New Question 10 (p.174) Where do I need to indicate the MTC and/or any other document used as evidence?
Answer: The text emphasizes the importance of documenting evidence for customs procedures, specifically in box 44 of the customs declaration. It is essential to declare the availability of this evidence for goods subjected to various customs procedures such as release for free circulation or inward processing. The specific code Y 824 should be used to indicate the nature of the evidence, which pertains to the country of origin of the iron and steel inputs used in the imported goods.
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New Question 11 (p.174) Is the evidence needed for all processing operations throughout the whole supplychain or for the processing in the last country before the import into the Union?
Answer: In non-preferential origin cases, evidence of non-Russian origin is required for specific inputs/components listed in the Annex used in products imported into the EU. If these inputs come from a third country other than Russia, detailed evidence of their origin in that country is not needed, as shown in the example of Indian screws made with alloy steel.