Russian client plans to remit payment from Turkey using EXW terms for the transaction, with no CE certification required. In this scenario, several key points require clarification and consideration.

EXW terms operation

Under EXW (Ex Works) terms, the sellers responsibility is to have goods ready for buyer collection, with all transportation and cost responsibilities transferring to the buyer from the sellers factory or warehouse. Therefore:

• Seller responsibilities: Provide goods and commercial invoice, ensuring goods are available for collection at agreed location and time.
• Buyer responsibilities: Handle all transportation, insurance,Export Clearance,Import Customs Declarationand payment of all related costs.

Turkey remittance considerations

Remittances from Turkey may face strict scrutiny from banks and regulators due to involvement with sensitive countries (e.g., Russia). Key considerations include:

• Document provisionDocuments required include contracts, invoices, and shipping documents. Banks may additionally require a signed letter of commitment and submission of customs declarations and bills of lading after shipment.
• Funds verificationTurkish banks conduct rigorous scrutiny on remittances from Turkey to China to ensure legitimate fund sources and clearly defined purposes.

Russian Export and Certification Issues

• EAC certificationMachinery equipment exported to Russia typically requires EAC certification, a mandatory standard of the Eurasian Economic Union (EAEU) similar to the EUs CE certification but specifically applicable to Russia, Kazakhstan, Belarus, and other member states.
• CE CertificationAlthough clients indicate CE certification is unnecessary, if products are transshipped via Turkey to Russia, CE certification (an EU market access standard) is theoretically not required. However, if EU transit is involved, requirements of transit countries may need attention.

4. A complete export agency agreement should be attached with:Problem

Under EXW terms, special attention is required for payment collection:

• Bank policiesIf Turkish banks strictly scrutinize funds originating from Russia, ensure you can provide all necessary documents (contracts, invoices, customs declarations, bills of lading, etc.).
• Risk avoidanceUnderstand and comply with foreign exchange regulations of your country and bank to avoid fund returns or freezes.

Practical Operation Recommendations

1. Communication and confirmationConfirm every transaction step in detail with Russian clients, including fund flow, logistics, and customs clearance matters.
2. Select reliable freight forwardersEnsure the freight forwarding company has experience handling trade between Russia and Turkey to facilitate smooth operations and mitigate risks.
3. Prepare comprehensive documentationEnsure all documents are complete and meet bank requirements in Turkey and your country, including contracts, invoices, customs declarations, bills of lading, etc.
4. EAC certificationEnsure products comply with Russian EAC certification requirements to prevent customs clearance failures upon arrival.
5. Legal and compliance consultationBefore transactions, consult professional legal andforeign tradecompliance advisors to ensure all procedures align with international trade and foreign exchange regulations.

In summary, such transactions are feasible but require compliance at every stage and complete documentation to avoid payment collection and customs clearance issues.