Resolving the issues of ‘dual use’ goods export

Complainee: State Service of Export Control (SSEC)
Complaint in brief: On May 21, 2015, the BOC received a complaint from a company about the allegedly unfair treatment by the SSEC. In 2013, the SSEC stopped the export of goods the company repaired in accordance with a service agreement, initiated criminal proceedings against the Complainant, and expropriated the goods. The essence of the case was the possible “dual use” status of goods to be exported, meaning that they could be used for both civilian and military purposes. The Complainant had to obtain the SSEC expert decision every time when exporting such goods.
The criminal proceedings were later suspended due to the lacking elements of crime, but the actions of the law enforcement officials and the expropriation of goods interrupted the Complainant’s business. In order to avoid such problems in future, the Complainant asked the SSEC for an expert decision on whether the stated goods are subject to export control. The SSEC did not provide clear explanation, so the Complainant contacted the BOC.
Action taken: The BOC experts studied the relevant regulations and sent an inquiry to the SSEC. As a result, the meeting between the BOC, the Complainant, the SSEC, and the Ministry of Economic Development and Trade (‘the Ministry’) took place. After the meeting the BOC concluded that the SSEC was both illegally delaying the decision and could not provide a clear answer about the export rules to the Complainant in this particular case. Based on this, the BOC prepared relevant recommendations to the SSEC.
Results achieved: The Ministry assigned their member to be responsible for finalizing the case. The sanctions previously imposed on the Complainant were also dropped. The BOC is still in contact with the Ministry and the SSEC and continues to work on the case.

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