Following Russia’s full-scale invasion of Ukraine, the work of Latvia’s customs service has fundamentally changed – while previously the focus was on facilitating legal trade, since February 2022 the priority has shifted to stricter controls and sanctions enforcement, emphasised Deputy Director General of the State Revenue Service (SRS) and Director of the Customs Board, Raimonds Zukuls.
Speaking at the Financial Intelligence Unit (FIU) conference “Guarding the Border: Sanctions, Export Controls and Corporate Responsibility”, the SRS Deputy Director General for Customs explained that until February 2022 the primary goal of customs was to promote legal international trade and support exports. However, after the aggression by Russia and Belarus, Latvia became one of the main EU border states responsible for sanctions oversight.
He noted that before the war, an average of around 37 cargo trucks crossed the border every hour, while currently the figure stands at approximately 21. Zukuls added that about 80% of export declarations processed at Latvia’s border originate elsewhere in the EU, as Latvia is one of the few Member States with a land border with both Russia and Belarus. The Customs Director stressed that companies are fully responsible for complying with sanctions, even if customs checks do not detect any violations.
Rūta Bajarūnaitė, Head of Sanctions Policy at Lithuania’s Ministry of Foreign Affairs, recalled that at the end of 2023, the Prime Ministers of the Baltic States signed an agreement on regional sanctions implementation to prevent attempts to reroute goods through alternative border crossings. Finland, Poland, Croatia and Denmark have since joined this initiative. The agreement helps ensure a harmonised customs approach and also introduces the requirement for manufacturer declarations,
reducing the circumvention of sanctions in the trade of luxury goods and vehicles.
Meanwhile, Frederik Lade Broch-Lips, Special Adviser at Denmark’s Business Authority, explained that Denmark operates a decentralised sanctions implementation system, where institutions are responsible for specific areas. He emphasised that the rules are becoming increasingly complex and change with each new sanctions package, making information-sharing and guidance for businesses especially important. In Denmark, companies receive informational letters, webinars are organised, and a dedicated advisory hotline is available.
The SRS Deputy Director General for Customs also highlighted that since 10 June this year, Latvia has introduced administrative liability for minor sanctions violations – in cases where the value of sanctioned goods does not exceed €10,000. He clarified that this approach does not mean the softening of sanctions, but allows resources to be used more efficiently for investigating more significant violations.
As previously reported, the FIU-hosted conference “Guarding the Border: Sanctions, Export Controls and Corporate Responsibility” brought together experts from the EU, the United Kingdom, Canada and the United States on Thursday to discuss shared responsibility in ensuring effective sanctions enforcement.
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