Ring of 'Indirect Exports' Evading Export Controls on Russia Uncovered

Illegal Export of Cars and Jet Skis from Russia Exposed
Exports Without Government Approval Prohibited Due to International Sanctions
'Circumvented Exports' Evade Crackdown by Disguising as Exports to Neighboring Countries

A group illegally exporting cars and jet skis, which are export-controlled items bound for Russia, without government permission was caught by customs authorities.

Busan Customs of the Korea Customs Service announced on the 29th that it has sent Russian nationals A (in his 50s, not detained) and B (in his 40s, not detained) to the prosecution on charges of violating the Foreign Trade Act and Customs Act.

Image of the route of disguised and indirect export cases to neighboring countries. Provided by the Korea Customs Service.

According to Busan Customs, A and others operated two companies and are suspected of illegally exporting 37 cars and 64 jet skis to Russia by submitting false export-related documents or pretending to export to countries neighboring Russia.

The government, participating in the international community's sanctions against Russia and Belarus, designated export-controlled items bound for Russia and Belarus as "items subject to situational permits" under the strategic goods import/export notice. Accordingly, cars, jet skis, and other items require a "situational permit" under the Foreign Trade Act to be exported.

However, A and others disguised the export goods bound for Russia as exports to neighboring countries such as Kazakhstan and Kyrgyzstan to evade customs inspections, then changed the consignee during transportation to deliver the goods to Vladivostok, Russia, or rerouted the cars and jet skis through Malaysia, where export sanctions do not apply, to export them indirectly to Russia.

A Busan Customs official said, "As a responsible member of the international community, Korea is actively participating in sanctions against Russia and Belarus," and added, "If any fraudulent acts such as rerouted exports are discovered, please report them to the 'Korea Customs Service Smuggling Report Center.'"