Russia Machinery Export: Steps & Policy Changes

I.Core Issues that Customers Care Most About

“Chinese Machinery and EquipmentWhat are the key steps required?How do current policy changes affect transaction costs?”

This is the most urgent topic that export enterprises want to know.This article will systematically analyze the full - link solution from order signing to terminal delivery,combining the latest customs data and policy documents.

II.Decomposition of the Whole Process of Exporting to Russia

Stage 1: Market Access Preparation

Output:

1.EAC certification mandatory

• SinceQ42023,RussiahasimplementedelectronicdeclarationforEACcertification(GOSTstandard)for12categoriesofproductssuchasconstructionmachineryandminingequipment,andthecertificationcyclehasbeenshortenedto15-25workingdays.
• Specialreminder:EquipmentinvolvinghydraulicsystemsandelectricalcomponentsneedstoobtaindualcertificationsofTPTC010/2011(MechanicalSafety)andTPTC004/2011(Low-voltageEquipment)simultaneously.

2.Country Adaptation of the Customs Union

• IfthemechanicalequipmentexportedtoRussiaisplannedtobere-exportedtoEurasianEconomicUnion(EAEU)countriessuchasBelarusandKazakhstan,itisnecessarytodeclareEAEUmulti-countrycirculationrecordduringcustomsdeclaration.

Stage 2: Risk Control of Trade Contracts

Output:

• UpgradeofPaymentTerms:

Due to the impact of SWIFT sanctions,the proportion of Russian importers settling payments in RMB/RUB in 2024 has exceeded 65%.It is recommended to adopt the payment mode of "30% prepayment + 70% payment upon receipt of the bill of lading copy",and prioritize direct connection channels between China and Russia such as Kunlun Bank.

It is recommended to use FOB Chinese port or DAP Russian destination to avoid the risk of port demurrage charges caused by logistics delays.

Stage 3: Logistics and Customs Clearance Practice

Output:

1.New Dividends

• ThetransittimeoftheXian/Chongqing→Moscowrouteisstableat12-18days,andthefreightis20%lowerthan.Italsoenjoystheprioritycustomsclearancetreatmentofthegreenchannel.
• Keydocuments:ItisnecessarytopreparetheRussian-languagepackinglist,proformainvoiceandtheoriginalEACcertificateinadvance(uploadtheelectronicversiontothecustomssystemsimultaneously).

2.Apply for preferential treatment under the CIS Free Trade Agreement (tariff reduced from 12% to 6.5%)

• In2024,Russiamaintaineda0%importtariffonagriculturalmachineryandenvironmentalprotectionequipment,butimposeda15%basetariffplusvalue-addedtaxonconstructionmachinery(withtheoptiontoapplyfortaxreliefunderthe"ImportSubstitutionProgram").

III.Interpretation of the Policy Trends in 2024

Strengthening of Technical Barriers

Output:

• TheGOSTRcertificationinRussiahasaddedanEMCelectromagneticcompatibilitytest(effectivefromJuly2024),whichrequiresthatcorecomponentssuchasmotorsandcontrolcabinetsbesubmittedfortestingtotheMoscowCertificationCenterinadvance.

Incentives for Localized Production

Output:

• ForenterprisesthatsetupassemblyplantsinRussia,theimporttariffonequipmentpartscanbereducedby50%.ItisrecommendedthatexportersjointlydeclaretheSKD/CKDprojectwithRussianlocalpartners(suchasKamazGroup).

Sanction Response Plans

Output:

• RequirementforDe-WesternizationofKeyComponents:FortheexportofmechanicalequipmentcontainingEuropeanandAmericancomponents,asupplychaincompliancestatementneedstobeprovided.Itisrecommendedtogiveprioritytotheconfigurationplanwithadomesticlocalizationrateofover70%.

IV.Successful Cases and Data Support

• PracticeofBenchmarkingEnterprises:SanyHeavyIndustry,throughthepre-certification+localbondedwarehousemodel,increaseditsexportstoRussiaby42%year-on-yearin2023,andthecustomsclearancetimewascompressedtowithin3workingdays.
• OfficialData:FromJanuarytoMay2024,China’sexportsofconstructionmachinerytoRussiareached$3.7billion(+28%year-on-year),withtunnelboringmachinesandconcretepumptrucksaccountingformorethan60%ofthetotal.