The Decree of the Government of the Russian Federation No. 832, dated 22 August 2016 (hereinafter - the 'Decree No. 832') imposed the restrictions on the admission of certain types of food products originating from foreign states for the purposes of state and municipal procurement.
The restrictions were initiated by the Ministry of Agriculture of the Russian Federation in accordance with the Federal Law No. 44-FZ dated 5 April 2013 'On Contract System in the Area of Procurement of Goods, Works and Service for State and Municipal Needs' to protect the internal market and support Russian manufacturers. Such restrictions do not apply to the purchase of food products by organisations that are not state or municipal customers, as well as to deliveries to stores, retail chains, commercial catering, etc.
The Decree No. 832 approved a list of certain types of food products which are subject to the relevant restrictions (hereinafter - the 'List'). The List includes, in particular, processed and preserved fish, caviar and caviar substitutes, crustaceans and mollusks, beef, veal, pork, poultry, edible offals, milk, cream, butter, cheeses, cheese products and cottage cheese, brown rice, beet or cane sugar, salt.
The procedure for application of the restrictions on admission of food products included in the List and originating from foreign states for the purposes of procurement for state and municipal needs (hereinafter - the 'procurement'), is similar to the one previously established for certain types of medicinal products and medical devices.
When procuring food products included in the List, a customer shall reject all bids (final offers) to participate in the definition of a supplier (hereinafter - the 'bid'), which contain offers for the supply of food products originating from foreign countries (except for member-states of the Eurasian Economic Union (EAEU)), provided that:
- at least 2 bids satisfying the requirements of notifying on the procurement and (or) the procurement documentation were filed; and
- such bids, simultaneously:
- include offers for the supply of food products included into the List and originating from the member-states of the EAEU;
- do not contain offers for the supply of the same type of food products of the same manufacturer.
A country of origin of food products included into the List shall be confirmed by a participant by indicating in the bid the country of origin and manufacturer of the food products.
Thereat, in performance of the contract, at conclusion of which the bids were rejected pursuant to the above restrictions, it is prohibited to replace the food product with:
- a food product originating not from a member-state of the EAEU;
- a food product of another manufacturer, whose supply offer was contained in the bids that were not rejected at the conclusion of the contract in accordance with the relevant restrictions.
Restrictions on the admission of food products included into the List for the purposes of procurement shall not apply in the following cases:
- procurement notices were placed in the uniform electronic information system in the area of procurement and (or) invitation to take part in determining a supplier in a closed way were sent before the enactment of the Decree No. 832;
- procurements made by diplomatic missions, consular offices, sales offices or official representative offices of the Russian Federation at international organisations, as well as other customers operating in the territory of a foreign state, to maintain their operations in that territory.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.