Knowledge base
Exemptions and derogations in the sanctions against Russia, when trade is allowed
Updated: 26 June 2026
Even if a CN code is subject to a ban, trade can still be allowed thanks to exemptions and derogations set out in Regulation 833/2014. An exemption operates by force of the provision itself, a derogation requires the consent of the competent national authority, and many bans have transitional periods for contracts concluded before the restriction entered into force.
Exemption versus derogation, the practical difference
An exemption is a situation in which the ban simply does not apply, for example to a specific use of the goods or to a specific category of entities. It operates directly from the wording of the provision and does not require a decision by an authority.
A derogation is a mechanism by which the competent national authority may authorise a transaction that is in principle prohibited, once the conditions set out in the regulation are met. Here an application and the issuing of an authorisation are required. Confusing these two concepts leads to the mistaken assumption that a self-assessment is enough, whereas in many cases a formal consent is needed.
Transitional periods and contracts concluded earlier
Regulation 833/2014, including Article 3k concerning Annex XXIII, provides in many places for transitional periods, the so-called wind-down. They allow contracts concluded before the date on which the goods became subject to the ban to be performed for a set time after the restriction enters into force.
Relying on such a transitional period, however, requires documents. You have to show the date the contract was concluded and that the transaction falls within the conditions and the time limit provided for in the provision. Without evidence the customs authority will treat the shipment like any other one subject to the ban.
Where to find the conditions for exemptions
The conditions for exemptions and derogations are written directly into the text of the articles of the regulation, most often in the paragraphs following the ban itself. So it is not enough to check that the code is in an annex. You have to read the whole article, including the exceptions and the dates.
The European Commission also publishes guidance and frequently asked questions (FAQ) on the application of sanctions. They are not a source of law, but they help you understand the intent of the provision and typical situations. What remains binding is the wording of the regulation and the decision of the authority.
How to document that an exemption applies
If you base a transaction on an exemption or a transitional period, build the documentation from the start. Keep the dated contract, the correspondence, the specification of the goods with the CN code, and, in the case of a derogation, a copy of the authority’s authorisation.
A good practice is to attach to the file a CN code verification report, with the date and version of the act, and a note explaining the legal basis on which the trade is allowed. This is tangible proof of due diligence.
Typical grounds for derogations in 833/2014
Regulation 833/2014 provides for derogations linked to specific purposes, for example medical or pharmaceutical needs, aviation safety, humanitarian projects, or contracts necessary to maintain production capacity and food security. The conditions and the application procedure are written directly into the paragraphs of the relevant article, for example in Articles 3g, 3h or 3k.
When checking a code, note that the same heading may carry both a ban and a narrow derogation available only after an authority authorisation. That is why, after matching the CN code, you read the whole article, including the paragraphs on authorisations, dates and categories of recipients, not just the opening sentence that sets the ban.
Frequently asked questions
Does a derogation work retroactively?
No. An authority authorisation applies within the scope and time limit set by the decision. A transaction carried out before the authorisation was obtained cannot be justified by it, which is why you apply for a derogation before the trade, not after it.
Can I decide on my own that an exemption applies to me?
For an exemption that operates by force of the provision you assess it yourself, but at your own responsibility and with documents. For a derogation you need an authorisation from the competent national authority. Without it the transaction remains prohibited.
What is a wind-down period?
It is a transitional period in which you may complete contracts concluded before the goods became subject to the ban. Its length and conditions are written into the specific article of Regulation 833/2014.
Is the European Commission FAQ binding?
No. The Commission guidance and FAQ help interpret the rules, but they are not a source of law. What is binding is the wording of the regulation and the decision of the customs authorities and of the authority competent for the derogation.
Where is an application for a derogation filed?
With the competent national authority indicated in the regulation and in national law. In Poland sanctions matters fall within the remit of the competent administrative authorities, and customs proceedings are supervised by KAS.
More in the knowledge base
- How to check whether goods are subject to EU sanctions, step by step
- CN code and sanctions: how to read the annexes to Regulation 833/2014
- Goods sanctions vs screening of persons and entities, how they differ
- Exporter obligations after the 2025 amendment (end-user statement)
- Penalties for breaching sanctions in Poland (up to PLN 20 million)
- The most commonly checked CN codes covered by EU sanctions against Russia
- CBAM versus EU sanctions, how they differ and why you check both
Informational content based on EU regulations (833/2014, 765/2006) and the act of 13 April 2022 (Journal of Laws 2022 item 835). It does not constitute legal or customs advice. The binding source is the text of the act in EUR-Lex and the decision of the customs authorities. In case of doubt, consult an adviser.