Reference
The draft resolution On Imposing a Ban and Restrictions on the Admission of Goods Originating in a Foreign State, Works (Services) Performed (Provided) by Foreigners to Serve the Purpose of Procuring Goods, Works, and Services for the Needs of National Defence and Security of the State has been drafted by the Russian Ministry of Industry and Trade pursuant to the decisions approved by a 24 July, 2013 meeting at the Prime Minister’s.
The resolution updates the regulatory framework making it mandatory for parties ordering technological equipment to comply with the requirement not to allow the purchasing of foreign goods for the needs of national defense and security of the state.
The resolution has been drawn up in connection with the approval on 5 April 2013 of Federal Law No. 44-FZ On the Contractual System in the Sphere of Procurement of Goods, Works and Services for State and Municipal Needs and in connection with its coming into force on 1 January 2014.
The procurement of goods originating in a foreign state or works (services) performed (provided) by foreigners in the context of purchases of goods, works or services for the needs of national defence and security of the state shall be carried out under the basic principles of the effective regulatory framework.
Approved by Resolution No. 56 of 7 February, 2011, a list of goods (in effect until 1 January 2014), with regard to which a confirmation is needed that they are not produced in the Russian Federation, overlooks certain categories of double-purpose equipment instrumental in generating long-term technological independence of enterprises in the Russian defence-industrial complex, namely:
- casting machines used in metallurgy and foundry industry;
- planing machines, shaping machines, slotting machines, broaching machines, gear cutters, gear tooth grinding machines or gear tooth finishing machines, sawing machines, cutting-off machines, and other cermet and metal-working tools;
- measuring instruments or checking gauges, geometry measuring devices and machines.
In keeping with the resolution, the fact that the indicated equipment is not produced in the Russian Federation is confirmed by its inclusion in a list of technological equipment, the analogues of which are not manufactured in Russia and whose import is not liable to value-added tax (this list was approved by Russian Government Resolution No. 372 of 30 April 2009).
The lack of domestic production can also be confirmed through an expert examination by the Ministry of Industry and Trade. The draft resolution instructs the Ministry to develop guidelines for such expert examination.
The resolution is expected to promote national economic development, provide additional support for domestic commodity producers, protect the domestic market, and sustain national security and defence.