Russian Concerns in Doing Business with Chinese Companies (Part II)
Beyond language barriers, the negative perception of Chinese products’ quality often hinders their ability to enter the Russian market. Although a prospective deal between a Russian client and a Chinese supplier may make it to the final stages, even to a point just before the contract is signed, reservations on the Russian side may lead to a failed or delayed transaction. All may be ameliorated with a single certification – the GOST R.
GOST R Certification
The GOST R is not an advanced certification, hence for certain industries allows fast access to the Russian market. It is issued by the Federal Agency of the Russian Federation on Technical Regulating and Metrology to ensure that production activities, goods and services conform to Russia’s national standards.
There are two types of GOST R: the Single Shipment Certificate and the Serial Production Certificate. The Consignment Certificate of Conformity for Single Shipments is a trade document valid for one consignment only, i.e. for a certain quantity and product type. It can be issued only if the foreign manufacturer is able to prove that there is a pre-existing agreement with a Russian customer/importer by means of a contract or an invoice.
In contrast, the Serial Production Certificate of Conformity is a trade document whose validity can vary from one to three years, and is issued specifically to manufacturers. In this case, there is no need for the manufacturer to provide documentation from a customer/importer in Russia. This certification enables the foreign suppliers to send an unlimited quantity of goods during the certificate’s period of validity. To obtain the Serial Production license, Russian experts must first inspect the manufacturer’s facilities and test product samples.
Of these two Certificates of Conformity, there are both voluntary and mandatory types whose colours are blue and yellow, respectively.
The GOST R certification system concerns the majority of products sold and/or used in Russia, such as foodstuffs, textiles, cosmetics and toys; mechanical and electrical goods; and equipment for such industries as food, chemical, oil and gas, and construction as well as others.
Regional Applications
The benefits of GOST R certification are apparent in CIS countries. It is officially required and acknowledged in Russia and Belarus. And although not officially required in Kazakhstan, Azerbaijan, Moldova, Lithuania, Latvia, Estonia or the Ukraine – in the Ukraine, UkrSEPRO is the officially required standard – the possession of GOST R certification is widely recognised, and assists in the promotional activities of one's product.
In addition to GOST R certification, RTN certification is necessary for exporting potentially dangerous products to Russia. This applies to manufacturers of such items as lifting equipment, heat exchangers, hot water boilers, pressure equipment, and compressors.
| Type | GOST R Certificate | UkrSEPRO Certificate | GOST K Certificate |
| Certifying Body | GOSSTANDARD | Derzhspozhyvstandard | KAZMEMST |
| Certificate Types |
Mandatory Certificate of Conformity (yellow) Voluntary Certificate of Conformity (blue) |
Mandatory Certificate of Conformity Voluntary Certificate of Conformity |
Mandatory Certificate of Conformity (blue) Voluntary Certificate of Conformity (pink) |
| Validity |
Single Shipment Certificate 1 Year Certificate 3 Year Certificate |
Single Shipment Certificate 1 Year Certificate 2 Year Certificate 5 Year Certificate |
Single Shipment Certificate 1 Year Certificate 3 Year Certificate |
Another point to mention is that Russia’s individual industries, and even individual leading enterprises, may have their own standards. For example, some steel end-users only buy boiler tube with ОАО "CNIITMASH" certification, and oil major Rosneft has its own qualification standards for providers of its equipment.
Once the language barrier is overcome, obtaining GOST R certification is the next step toward enhancing a product’s competitiveness in Russia and the CIS. It is an indispensable move for making the quality of one’s product recognisable to these countries to ensure that, next time, the deal runs smoothly.
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