New amendments to sanction-related regulations, which came into force on the 24th of June, will help EU border guards to battle sanction circumvention more effectively, according to representatives of Latvian State Revenue Service (VID).
The service notes that in order to reduce the risk of sanction circumvention to the minimum, it has been decided to ban transit of EU goods and technologies that could promote Russia’s military and technological edge through this country’s territory.
The new package of sanctions also includes a prohibition to send goods and technology suitable for the aerospace sector as well as fuel and fuel additives for jet engines through Russia’s territories.
Because border control points along Latvia’s land border are among the ones that have the most workload on the border shared by the EU and Russia, the new amendments that were developed with Latvia’s support represent a new and long-awaited tool for customs officials, who have been under increased workload since the start of the Russian-Ukrainian war.
Approximately 70% of all controlling activities performed by the customs are associated with the sanction regime.
VID Customs Office Director Raimonds Zukuls says that after sanctions were applied on Russia, there was a tangible growth of exports to countries of Central Asia.
“After analysing the data, we concluded that this was one of the ways sanctions are usually circumvented – in some cases goods are delivered to Russia, not their intended country. Thanks to the active work of the European Commission together with EU member states, we have found additional solutions to help prevent circumvention of sanctions in Latvia,” said Zukuls.
Additionally, the new sanction regulations cover carriers, because starting with the 24th of June neither third country nor EU companies’ carriers will not be allowed to carry goods using trailers and semi-trailers registered in Russia.
During the transition period until the 30th of June 2023 it is permitted to complete the already initiated transports in the EU, as well as return trailers and semi-trailers to Russia.
The new amendments to sanction regulations are also planned to include a ban on exports of other goods such as passenger cars of a value not exceeding EUR 50 000 (not luxury goods), new or retreaded tires for buses and lorries, conveyor belts or belts, machinery for working rubber or plastics or for the manufacture of articles of these materials, goods vehicles, etc.
A transition period has been announced for these goods. Active contracts are allowed to be completed by the 25th of September 2023 as long as those contracts were signed before the 24th of June 2023.
Amendments also include a mechanism that will prevent exports of certain goods to third countries if there are high risks of sanction circumvention and if countries in question refuse to cooperate with the EU in preventing the circumvention of sanctions.
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