Russia: Potential and Accessibility for Agricultural Technologies

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Market potential

On June 16, 2021, Russia's Ministry of Agriculture held a final meeting to discuss last year's performance and further strategic plans.
The event was attended by Deputy Prime Minister Viktoria Abramchenko, Agriculture Minister Dmitry Patrushev, representatives of the Federation Council and the State Duma and other representatives of the government and relevant organizations.
It has been observed that the Russian agricultural sector has also had good results during the pandemic period faced throughout 2020. The Russian objective, as a consequence of the embargo that we remember to be extended for the entire duration of 2021, is always achieving the agri-food security of the country, keeping the achievement of the stability of the internal market as a priority.
The profitability of agricultural organizations increased and, including subsidies, reached 21%. Profits exceeded the 2019 level by 76% and amounted to almost 625 billion rubles. The share of profitable organizations rose to 86%.
The growth of the agricultural sector is also confirmed by the increase in exports which marks 15% for the year 2020.
Despite all the problems arising from the extension of the embargo, the relations of our country with the Russian one, in terms of import - export trade, have been maintained at good levels.

From the graphs below, it is confirmed:
  • imports of agricultural machinery into the Russian market from the world appear to be on the increase (almost reaching a share of 1.8 billions of euros) and expected growth for the next few years (a value that would go close to 2 billions of euros)
  • Russia is importing more and more quality products, favoring over the last few years agricultural machinery of medium-high range (going from 21.8% in 2010 to 30.8% last year) and high price (from 4.3% in 2010 to 18% of 2020), to the detriment of those positioned in the lower price ranges.

Market accessibility

What are the main elements to take into consideration for the export of agricultural machinery to Russian market ?

GOST - GOST R

GOST refers to a set of technical standards managed by the Euro-Asian Council for Standardization, Metrology and Certification (EASC), a regional standardization organization operating under the auspices of the Commonwealth of Independent States (CIS). All kinds of regulated standards are included, with examples ranging from charting rules for design documentation to recipes and nutrition facts from Soviet-era brands.
Since the GOST standards are adopted by Russia, the largest and most influential member of the CIS, it is a common mistake to think of GOST standards as the national standards of Russia.
Since EASC, the organization responsible for developing and maintaining GOST standards, is recognized by ISO as a regional standards body, GOST standards are classified as regional standards. National standards of Russia are the standard GOST Rs.
This system aims to provide the customer with safety and high quality of products and services. This customer's right to safety and quality is guaranteed by the mandatory certification not only of native but also foreign products. Products entering the territory of the Russian Federation and which are subject to mandatory certification according to the legislation of the Russian Federation must meet the requirements of the Russian certification system.
The list of products subject to mandatory certification is defined by Gosstandart and can be viewed on www.gost.ru.

CERTIFICATION AND DECLARATION OF CONFORMITY

They are two distinct documents, useful for machinery customs clearance procedures:
  • one that certifies that the product complies with Russian standards. Proof of conformity of goods for which the technical regulations (TR) of the Eurasian Economic Union (EAEU) have already entered into force must comply with the requirements established by the EAEU. There are 3 types of certification:
    • certificate of conformity for series production for three years;
    • certificate of conformity for series production for one year;
    • certificate of conformity for each batch;
  • the other declares that the imported products comply with Russian standards.
The Declaration of Conformity can be issued:
  • either on the basis of your own evidence (only applicable for Russian legal persons);
  • or on the basis of the person's own tests as well as tests obtained with the participation of a certification body and / or accredited testing laboratory.
The Declaration of Conformity can be submitted by the following people:
  • legal and natural persons registered in accordance with Russian legislation acting as a manufacturer or seller;
  • legal and natural persons registered in accordance with Russian legislation representing the foreign manufacturer in matters stipulated by law.

DUAL USE

Speaking of export of agricultural machinery it is necessary to mention the issue of Dual Use.
Please note that dual-use products are meant, including software and technologies, which can have both civil and military uses.

The documents / certifications mentioned below are useful to avoid customs hitches, both by the exporting country and by the importing country:
  • Dual use import license: they confirm that the importer is authorized to import dual use goods;
  • Verification of the delivery of dual-use goods: certifies that the dual-use goods have actually been imported into Russia;
  • End-user certificate of dual-use goods: certifies that the dual-use goods have actually been delivered to the end user;
  • Dual-use import certificate: document certifying that the actual import of dual-use goods has been authorized by the Russian authorities.

MARKING and PACKAGING

The Eurasian Compliance Logo (EAC Logo) is a sign for freely tradable goods. Similar to the CE logo, the EAC logo confirms that the marked products have undergone the mandatory conformity assessment procedures and correspond to the stipulated technical requirements. The logo must be printed on each product unit and its packaging, as well as on the accompanying documents. The respective technical regulations (TR) establish the specific position and size on the product and / or on its packaging, on which the EAC logo must necessarily be affixed. Pursuant to the Regulation on the Common Mark for the Movement of Products in the Market of the Member States of the Customs Union, the single EAC mark can be affixed in any way, as long as it is clearly and precisely visible throughout the shelf life of the product.
The Packaging Safety TR provides appropriate requirements for the packaging of goods and is applicable throughout the Eurasian Economic Union (EAEU). In accordance with this TR, the symbols on the packaging material and on the lids must be written in Latin characters. During the customs clearance procedure, manufacturers and / or importers must provide responsible customs officials with a self-declaration on the identification of the packaging.
In addition, the TR classifies and prescribes certain types of packaging material appropriate for particular goods, eg. paper and cardboard, wood and ceramic material, and composite materials, if their consistency complies with the safety requirements of this TR.

REGISTRATION ED-2

This registration in the Russian information system is required for all customs clearance procedures. All communication and sending of general export documentation are carried out electronically through the ED-2 system, making this registration essential for the speeding up and correctness of Russian customs procedures.

The minimum content to be submitted when submitting the application to be registered as a user is as follows:
  • name and legal form of the applicant company;
  • abbreviated name of the company indicated in the incorporation documents;
  • name of the administrator;
  • name, telephone number and e-mail address of the contact person;
  • registered office of the company;
  • legal and postal address of the company;
  • tax code (INN);
  • tax classification code of the company;
  • tax registration reason code (KPP);
  • primary state registration number (OGRN).

The document to be attached for this purpose is simply a copy of the contract concluded with the selected service provider.