Court orders in favour of banned goods

A few days ago a Russian court considered the issue whether or not Russian entity has the right to sell food included in the Russian import ban list?

In 2014, the Russian Federal Service for Surveillance on Consumer Rights Protection and Human Wellbeing (Rospotrebnadzor) inspected a store and found out a selling food which have had been banned to import in Russia in accordance with both Decree of the President of the Russian Federation dated on 6 August 2014 № 560 “On Application of Certain Special Economic Measures for ensuring the Security of the Russian Federation” and the Resolution of the Russian Government dated on 07.08.2014 № 778 “On Measures on the Implementation of the Decree”.

A legal entity, the owner of the store, has been fined RUB 30 000 (less $500) over the sale of banned item within an administrative proceedure. Notwithstanding, the entity challenged the fine before a court.

The Arbitrazh Court of St. Petersburg and Leningrad region (a state court) upheld the company.

In its judgement dated on 2 July 2015 the court underlines the differences between the terms “import” and “sale”. The mentioned above regulations introduce a prohibition on the import into the Russian Federation of certain agricultural products, raw materials and food which originate from the countries which have imposed sanctions on the Russian legal and/or natural persons. In contrast, the regulation does not impose a ban on the sale of such goods.Consequently, the company has not breached the Russian law, the fine is illegal. The court orders to cancel the fine.

Rospotrebnadzor has the right to appeal the judgement within one month.

The judgement dated on 2 July 2015 in case №A56-10508/2015 is available at link (in Russian).

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Court orders in favour of banned goods

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