Monitoring of the Federal Legislation dated 7.04.2004

Decision of the Constitutional Court of the Russian Federation of April 6, 2004 on the Case of Constitutionality of Provisions of Item 2 of Article 87 of the Merchant Marine Code of the Russian Federation and the Decision of the Government of the Russian Federation No. 538 of July 17, 2001 on the Activities of Non-Governmental Organisations in Ship Pilotage Pursuant to the Appeal of the International Public Organisation "Association of Sea Pilots of Russia" and the Independent Non-Commercial Organisation "Society of Sea Pilots of St.Petersburg"

During the examination, the Constitutional Court of the Russian Federation remarked that provisions of Paragraph 1 of Item 2 of Article 87 of the Merchant Marine Code of the Russian Federation specifying that the seal pilot is a worker of the pilotage service of a state-run organisation is an imperative norm. According to its literal meaning, the person other than the one being a worker of the pilotage service of a state-run organisation may not possess the status of a sea pilot.

Meanwhile, Paragraphs 2 and 3 of the same item of Article 87, as well as Article 88 of the Merchant Marine Code of the Russian Federation, not only acknowledge opportunities of creation of non-governmental organisations in ship pilotage, but also regulate the procedure of state supervision of their activities, not permitting to associate pilotage activities exclusively with a governmental organisation.

Thus, provision of Paragraph 1 of Item 2 of Article 87 of the Merchant Marine Code of the Russian Federation may not be regarded as clear and definite - while in the system of available legal regulation, taking into account the meaning attached to the provisions of Item 2 of Article 87 in the judicial practice, it is not excluded to permit for pilotage the pilots of non-governmental organisations engaged in ship pilotage - thus contradicting Articles 19 and 34 (Part 1) of the Constitution of the Russian Federation.

The federal legislator also did not define the criteria and guidelines to specify the particulars of non-governmental organisations engaged in ship pilotage, leaving it to the discretion of the Government of the Russian Federation.

The Constitutional Court of the Russian Federation has ruled to recognise as not complying with the Constitution of the Russian Federation provisions of Item 2 of Article 87 of the Merchant Marine Code of the Russian Federation and the interconnected with it Decision of the Government of the Russian Federation No. 538 of July 17, 2001 on the activities of non-governmental organisations in ship pilotage.

The federal legislator must work out a regulation of activities of non-governmental organisations in ship pilotage.

Federal Law No. 16-FZ of April 5, 2004 on the Amendments to Part 2 of the Tax Code of the Russian Federation and the Federal Law on the Amendments to Chapter 26.1 of Part 2 of the Tax Code of the Russian Federation and Some Other Acts of the Legislation of the Russian Federation

To improve the efficiency of taxation regime of agricultural producers, Chapter 26.1 "Taxation System for Agricultural Producers (Uniform Agricultural Tax)" of the Tax Code of the Russian Federation is extended to include the following provisions.

VAT amounts accepted for exemption by agricultural producers before the switchover to the uniform agricultural tax for commodities (works, services), including the fixed assets and non-material assets, purchased for operations recognised as objects of taxation for the value added tax must not be restored (paid to the budget) when switching over to the uniform agricultural tax.

When switching over from the uniform agricultural tax to the common taxation regime, VAT amounts presented to the payers of this tax for commodities (works, services), including the fixed assets and non-material assets, purchased before the switchover to the common taxation regime are not subject to exemption when calculating the value added tax. The time limit for submission of applications for the switchover to the uniform agricultural tax by agricultural producers is prolonged till June 1, 2004.

The Federal Law shall apply to legal relations emerging from January 1, 2004. The Federal Law is entered into force one month from the day of its official publication.

Decision of the Federal Commission for Securities Market No. 04-7/ps of February 18, 2004 on the Amendments to the Regulation on the Composition and Structure of Assets of Joint-Stock Investment Funds and Assets of Shared Investment Funds Endorsed by the Decision of the Federal Commission for Securities Market No. 31/ps of August 14, 2002

Permits a number of investment funds to include in their corporate name the words "mortgage fund". Defines the requirements to the composition and structure of assets of closed-type shared investment funds qualified as mortgage funds category.

The assets of the periodic-redemption shared investment fund qualified as stocks fund category may include ordinary stocks of Russian closed-type joint-stock companies. There are additional requirements to the structure of assets of such fund, namely: the estimate value of such stocks may not be greater than 10% of the cost of assets.

There are also additional requirements to the structure of assets of the closed-type shared investment fund and the joint-stock investment fund qualified as stock fund category. Thus, the estimate value of securities of a single issuer (except for the state securities of the Russian Federation and the state securities of the subjects of the Russian Federation) may not be greater than 50% of the cost of assets.

There are also changes in the composition of assets of the closed-type shared investment funds qualified as other fund categories and the requirements to these compositions.

Registered in the Ministry of Justice of the Russian Federation on April 5, 2004. Reg. No. 5712.

Direction of the Central Bank of Russia No. 1399-U of March 24, 2004 on the Amendments to the Regulation of the Bank of Russia No. 205-P of December 5, 2002 on the Rules of Accounting Work in Credit Organisations Located on the Territory of the Russian Federation

The chart of accounts in credit organisations is extended to include new Accounts 478, 61207, 61208 and 91310 pertaining to investments in the purchased claims rights, their withholding (sale) and redemption. The accounts are intended to register investments in the purchased claims rights from third parties, execution of obligations in the monetary form and reserves for possible losses in investments in the purchased claims rights. Account 91310 is used to register the nominal cost of the purchased claims rights corresponding to the total volume of the purchased claims rights including the main debt, interest, penalty (fines).

The Direction provides the procedure of accounting work for such operations. Specifies that the procedure for analytical records is defined in the accounting policy of the credit organisation, with analytical records being arranged for each contract including each mortgage deed.

The Direction is entered into force 10 days after the day of its official publication in the Herald of the Bank of Russia.

The text of the Direction has been published in the Herald of the Bank of Russia on April 7, 2004, No. 21.

Registered in the Ministry of Justice of the Russian Federation on April 1, 2004. Reg. No. 5703.

Order of the Ministry of Taxation of the Russian Federation No. SAE-3-22/210 of March 18, 2004 on the Endorsement of the Form of the Tax Declaration for the Uniform Agricultural Tax and Its Filling Procedure

Endorses the form of the tax declaration for the uniform agricultural tax (KND form 1151059) and defines its filling procedure.

The declaration is filled out by the taxpayers using the system of taxation for agricultural producers (uniform agricultural tax) in compliance with Chapter 26.1 of the Tax Code of the Russian Federation for the reported (tax) period. The declaration is submitted at the end of the reported period - no later than within 25 days from the end of the reported period. The declaration is submitted at the end of the tax period: by organisations - no later than March 31, by independent entrepreneurs - no later than April 30 of the year following the expired tax period.

Registered in the Ministry of Justice of the Russian Federation on April 1, 2004. Reg. No. 5702.

Order of the State Customs Committee of the Russian Federation No. 330 of March 17, 2004 on the Fixed Amount of Secured Customs Payments for Excisable Commodities

Specifies fixed amounts of secured customs payments for imported excisable commodities: alcoholic products, tobacco items, gasoline, cars and other. The backing rate for the secured customs payments for cars is differentiated depending on the engine power rating and may vary from EUR 3,000 to EUR 25,000.

Registered in the Ministry of Justice of the Russian Federation on April 1, 2004. Reg. No. 5701.

Direction of the Central Bank of Russia No. 1394-U of March 18, 2004 on the Invalidation of the Direction of the Bank of Russia No. 1223-U of December 17, 2002 on the Particulars of Purchase by Resident Legal Entities of Foreign Currencies for the Currency of the Russian Federation at the Internal Currency Market of the Russian Federation for the Purposes of Payments under the Contracts of Import of Commodities to the Russian Federation

The invalidated Direction specified the duty of the resident legal entity buying foreign currencies for the purposes of payments under the contract of import of commodities to present to the authorised bank the purchase order and the certified copy of the cargo customs declaration after importing the commodities. In these cases, the purchase of foreign currencies for the mentioned purposes before the import of commodities was permitted only under the condition of opening of a bank deposit by the resident legal entity in the executing bank in the currency of the Russian Federation in the amount of 20% of the amount of resources in the currency of the Russian Federation used to purchase the foreign currency.

The text of the Direction has been published in the Herald of the Bank of Russia on April 7, 2004. No. 21.

Registered in the Ministry of Justice of the Russian Federation on April 1, 2004. Reg. No. 5700.

Order of the Ministry of Taxation of the Russian Federation No. SAE-3-09/207 of March 17, 2004 on the Endorsement of the Forms of Documents Used to Register Taxpayers in the Product-Sharing Agreements, As Well As the Particulars of Registration of Foreign Organisations Acting As Investors under the Product-Sharing Agreement or Contract Operator

Endorses the following forms: No. 9-SRPZ "Application for Registration in the Tax Body of the Taxpayer under the Product-Sharing Agreement" and No. 9-SRPZ "Certificate of Registration in the Tax Body of the Taxpayer under the Product-Sharing Agreement".

The tax body must register the taxpayer within five days from the day of submission of all necessary documents by him and, within the same time limit, issue the certificate of registration.

If the part of the mineral deposit provided for use under the product-sharing agreement is situated on the continental shelf of the Russian Federation and/or within the boundaries of the exclusive economic zone of the Russian Federation, registration is made in the tax body at the place of location of the taxpayer.

The Order also defines the particulars of registration of foreign organisations acting as investor under the product-sharing agreement or contract operator.

Registered in the Ministry of Justice of the Russian Federation on April 1, 2004. Reg. No. 5699.

Telegram of the Central Bank of Russia No. 37-T of April 2, 2004

In the II quarter of 2004, the rouble equivalent of the registered capital for created banks regardless of the share of foreign capital in them, as well as the rouble equivalent of own resources (capital) of operating credit organisations requesting the general license for bank operations and non-bank credit organisations requesting the status of a bank, must be at least Rbl 174,002,500.

The rouble equivalent of the registered capital for created non-bank credit organisations must be at least Rbl 17,400,250.

The text of the Telegram has been published in the Herald of the Bank of Russia on April 7, 2004, No. 21.