New EU Export Regulations:

Mandatory "No Re-Export to Russia" Clause
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New EU Export Regulations: Mandatory "No Re-Export to Russia" Clause

On 18 December 2024, the European Commission introduced significant updates to Article 12g of Council Regulation 833/2014, mandating the inclusion of a "no re-export to Russia" clause in contracts for certain sensitive goods and technologies. This update directly impacts exporters shipping items listed in Annexes XI, XX, XXXV, and XL of Regulation 833/2014. Non-compliance can result in severe legal and financial penalties.

Key Updates and Deadlines for Exporters


Contracts Concluded Before 19 December 2023


•    Contracts signed before this date were subject to a one-year transition period, which ended on 19 December 2024, or earlier if the contract expired beforehand.
•    For these contracts to remain enforceable beyond 1 January 2025, they must include the mandatory "no re-export to Russia" clause.


Contracts Concluded After 19 December 2023


•    Contracts signed from this date onward were required to include the clause no later than 20 March 2024.


Intra-EU Contracts


Contracts exclusively involving EU operators and deliveries performed entirely within the EU are exempt. However, all operators must still comply with EU sanctions regulations.

Scope and Enforcement: Why It Matters for Exporters


This mandatory clause is designed to prevent goods exported to third countries from being re-exported to Russia, ensuring full compliance with EU sanctions. Exporters are required to:
•    Demonstrate proof of compliance to relevant authorities.
•    Notify authorities of any suspected breaches or attempts to circumvent the regulations.

Adequate Remedies for Non-Compliance


Contracts must include provisions for addressing breaches, including:
•    Suspension or termination of the contract.
•    Financial penalties for non-compliance.
•    Legal actions where necessary.


Exceptional Circumstances:


If a party to a pre-19 December 2023 contract refuses to include the clause, exporters can issue unilateral communications prohibiting re-export to Russia. This approach is valid under specific conditions, such as longstanding relationships or conflicting national laws in third countries.

Exemptions and Notifications: What Exporters Need to Know


Public Contracts


Contracts involving public authorities or international organizations in third countries are exempt. However, exporters must notify national authorities within two weeks of signing such contracts. For pre-existing contracts, authorities might require notifications within an appropriate timeframe.


Partner Countries


Contracts with operators in partner countries listed in Annex VIII of Regulation 833/2014 (e.g., the United States, United Kingdom, Japan, and South Korea) are exempt from the new rules as of 24 June 2024.

Sensitive Goods and Technologies Affected


The regulation targets specific goods and technologies, including:
•    Aviation-related items: Aircraft parts.
•    Jet fuel and additives.
•    Firearms.
•    Common high-priority items: Machinery and electronics.
For more details, visit: https://finance.ec.europa.eu/publications/no-re-export-russia-clause_en 

How Customs Support Can Help You Stay Compliant


At Customs Support Group, we provide expert assistance to help exporters navigate complex regulatory frameworks. Whether you need support with contract reviews, compliance checks, or managing sensitive goods, we ensure your operations align with EU requirements.


Why Choose Us?


•    Expertise in EU sanctions compliance.
•    Tailored advice for your specific export needs.
•    Comprehensive services to manage sensitive goods and technologies.


Don’t let compliance challenges disrupt your business. Contact us today to learn more about our services and to receive expert assistance tailored to your needs.