Trade Regulation Updates

Do You Import Russian Goods?

July 7, 2022

The invasion of Ukraine by Russia has had an impact on more than just their immediate neighbours. Global transportation and trade of goods have also been affected. As a result of this unjust attack, Canada has implemented sanctions on Russian goods and entities and will continue to do so in order to support Ukraine in its time of need. Let's review some of the sanctions that are affecting international trade. 

On March 2, 2022 a prohibition on the importation and exportation of goods to or from the Russian controlled areas of Ukraine, the so-called Donetsk and Luhansk People’s Republic regions was introduced, as well as removing the Most-Favoured Nation (MFN) rate of duty on goods from Russia, (except in instances where the MFN rate is higher than the General Tariff (GT) rate of 35%). 

On May 18, 2022, an amendment to the Special Economic Measures (Russia) Regulations came into force which prohibits Canadians and people in Canada from importing certain listed Russian goods beginning 60 days after the amendment’s in force date. 

Excerpt from the Regulations:

“Luxury goods — import

(3) It is prohibited for any person in Canada and any Canadian outside Canada to import, purchase or acquire any good referred to in column 1 of Part 2 of Schedule 6, wherever situated, from Russia or from any person in Russia.”

The updated sanctions prohibit the importation, purchase or otherwise acquiring of specific luxury goods from Russia or from any person in Russia, by people in Canada or Canadians abroad.

The list of luxury goods, that will be prohibited for importation, found in Part 2 of Schedule 6 of the regulations, includes but is not limited to:

  • Fish, live, fresh, chilled or frozen
  • Crustaceans
  • Caviar
  • Alcoholic Beverages 
  • Diamonds

What is the Impact on Trade? 

All Russian goods allowed entry into Canada are subject to a minimum 35% duty rate.

As of July 17, 2022, imports of the listed luxury products will not be allowed. They will be refused entry into Canada by the Canada Border Services Agency (CBSA) and thus must be returned (or otherwise disposed of) at the expense of the Importer. The 60-day grace period between the amendment date and the in force date is designed to allow in-transit goods to reach Canada and be imported, allowing trade to adjust to the new restrictions.

The updated sanctions also include prohibitions on exports, sale, supply and shipping of certain goods to Russia and are in addition to the already published sanctions related to Russia, which include limitations on which companies and individuals in Russia you can do business with and the type of business you can carry on with Russia.

The war between Russia and Ukraine is a swiftly evolving situation with high-impact to trade relations worldwide. It is important for companies that do business with any person or party in that region to keep current on the constantly changing conditions.

What can you do as a business in International Trade? Double-check before every purchase, sale, and shipment, to see if your business may be affected by the ever changing conditions.

Do you need help understanding how your business may be affected? Our Trade Advisory Consulting Services may be able to help you. Contact us for more information and a quote.