Consumer Goods Exempted from Export Control

Korean consumer goods such as mobile phones, automobiles, and washing machines are not subject to the Foreign Direct Product Rule (FDPR) enforced by the U.S. government to control exports to Russia.

The Korean Ministry of Trade, Industry and Energy (MOTIE) announced on March 3 that consumer goods such as mobile phones, automobiles, and washing machines are not subject to the Foreign Direct Product Rule (FDPR) enforced by the U.S. government to control exports to Russia.

The ministry delivered inquiries from Korean companies to the U.S. government and received such answers. It held consultations with the U.S. Department of Commerce's Bureau of Industrial Security (BIS) to cooperate in controlling exports to Russia.

The ministry also said that Korean companies would be able to export products to their subsidiaries in Russia with approval from the U.S. government. The same goes for exports of Korean companies' subsidiaries in third countries such as Vietnam to their subsidiaries in Russia.”

Even for items subject to the FDPR, export control is not expected to affect Korean companies until the middle of March. “The U.S. Department of Commerce replied that the FDPR would not be applied to shipments until March 26,” the MOTIE said. Although Korean smartphone and passenger car exports to Russia are not subject to the FDPR, the Ukrainian crisis is expected to have a bigger impact on the Korean economy.

Copyright © BusinessKorea. Prohibited from unauthorized reproduction and redistribution