EXIMBANK OF RUSSIA proposes to protect exporters from penalties for violating exchange regulations when performing factoring transactions
There is a conflict in the legal field. According to the current legislation, when a resident exporter receives funds as part of a factoring transaction, that is, when he assigns the debt under a contract in favor of a financial agent, he is not recognized as having properly fulfilled his obligations to repatriate foreign currency proceeds. This norm is provided for by paragraph 1 of part 1 of article 19 of Federal Law 173-FZ. That is, the exporter in this case is not exempt from the sanctions provided for in Article 15.25 of the Administrative Code.
“This means that the exporting company may be penalized, despite the receipt of funds from the financial agent and the fact that it is the agent that subsequently works with the debt under the contract. In order to develop the factoring financing mechanism, increase exports, and reduce the administrative burden, EXIMBANK OF RUSSIA proposes to amend the federal law so to protect Russian exporters from the risk of being recognized as violators of exchange regulations if they receive funds from financial agents against the assignment of monetary claims under export deals,” Azer Talibov said at the forum.
The relevant bill is currently undergoing approval procedures in the departments and organizations concerned.
EXIMBANK OF RUSSIA JSC (part of the REC Group, VEB.RF) was established in 1994 to implement the state policy on stimulating and supporting the export of engineering products. Its mission is to provide exporters with access to convenient credit instruments and create an infrastructure that will increase the competitiveness of domestic businesses abroad.