Smartphones, Cars, Washing Machines, etc. Allowed for Export to Russia... Consumer Goods Are Exempt from FDPR Application

Ministry of Trade, Industry and Energy Reveals Position on Export Controls with U.S. Department of Commerce

Government: "If Russia proceeds with full-scale war, we will join sanctions including export controls"
(Seoul=Yonhap News) Reporter Son Hyung-joo = On the 24th, the Strategic Materials Management Institute in Gangnam-gu, Seoul, displayed major countries subject to international export controls and sanctions. The government stated that "Despite repeated warnings from the international community, if Russia proceeds with a full-scale war in any form, our government will have no choice but to join sanctions such as export controls against Russia." 2022.2.24
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[Asia Economy Sejong=Reporter Lee Jun-hyung] It has been confirmed that consumer goods such as smartphones, automobiles, and washing machines, which are targeted at general consumers, are excluded from the scope of the 'Foreign Direct Product Rule (FDPR)' implemented by the United States as part of sanctions against Russia.

The Ministry of Trade, Industry and Energy announced on the 3rd that it received this response during consultations with the U.S. Department of Commerce's Bureau of Industry and Security (BIS) on export control cooperation against Russia. FDPR is a measure that prohibits exports of products manufactured using U.S. technology or software (SW), even if the products are made in a third country outside the United States. It was previously used by former U.S. President Donald Trump to pressure China's Huawei.

The U.S. Department of Commerce stated that while smartphones, finished automobiles, and washing machines are subject to FDPR, they can be considered exceptions as consumer goods primarily intended for general consumers. However, this restriction applies only when exports are not for 'Military End Users.'

Exports by Korean companies' local subsidiaries in Russia are also cases where the U.S. policy of denial does not apply. According to the Ministry of Trade, Industry and Energy, the U.S. Department of Commerce indicated that exports to Russian subsidiaries may be permitted after case-by-case review. The same applies to exports from Korean subsidiaries located in third countries such as Vietnam to subsidiaries in Russia.

The U.S. Department of Commerce also specified the conditions for inclusion in the FDPR exemption countries. According to the Ministry, the U.S. Department of Commerce stated, "The condition for inclusion in the FDPR exemption countries is to independently implement export controls against Russia at a level similar to that of the United States and the international community," and added, "Even if Korea is included in the FDPR exemption countries, export control measures will be strengthened, and export permits from our government will be required."

Additionally, the U.S. Department of Commerce announced that for newly added items subject to FDPR, there are categories for which a grace period is recognized until shipments made on the 26th of this month, 30 days after the FDPR came into effect on the 24th of last month.

An official from the Ministry of Trade, Industry and Energy said, "We will promptly proceed with export control cooperation consultations with the United States to minimize corporate uncertainties caused by FDPR," and added, "If the U.S. side obtains additional information, we will promptly inform our companies."

This content was produced with the assistance of AI translation services.