What should I do if one of the goods in transit is sanctioned?

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What should I do if one of the goods in transit is sanctioned?

Problem

In March 2022, our regular Customer contacted us, whose company got into a difficult situation due to restrictive measures against the Russian Federation created by unfriendly countries after the start of a Special military operation in Ukraine.

The complexity of the situation was that the restrictions on the supply, sale and transfer affected the goods that were already on the way. In addition to the so-called «sanctioned» goods, there was also another product in the container, which was not sanctioned. Both items were paid by the Customer to the Supplier in the amount of 100%.

Some of the restrictive measures also affected the Client’s beneficiary.

Our Client has set the task mdash;"not sanctioned" goods should be redirected to one of the EU countries.

Solution

To solve this task, we were guided solely by the framework and norms of international law and the legislation of the EAEU.

We helped the Client to issue a new foreign economic activity contract between the Russian seller and the European buyer. The contract required close attention from the legal block and the financial sector, and step-by-step control at each stage, since the cost of the goods in the contract was increased due to additional services: increased logistics leverage, placement at the customs warehouse, etc.

Next, the product was divided into 2 batches:

the consignment of goods that were not affected by sanctions and other restrictive measures was placed under the customs warehouse procedure with further re-export to a third country;
the sanctioned product has been successfully released into free circulation on the territory of the Russian Federation.

Result

Teamwork was the key to a successful solution. The PBX team merchants, lawyers, financiers, declarants, foreign trade specialists, logisticians — all professionally and with maximum efficiency fulfilled their tasks.

Thanks to which our Client, having passed all the necessary tests, was able to avoid serious financial losses and received all his goods in full for subsequent sale in the Russian Federation and the EU.