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Monitoring of the Federal Legislation dated 31.05.2004

Decision of the Government of the Russian Federation No. 226 of April 30, 2004 on the Governmental and Interagency Coordination and Consultative Bodies Formed by the Government of the Russian Federation and the Federal Bodies of Executive Power

Coordination and consultative bodies shall be formed on the representation basis. Coordination bodies shall be named commissions or organising committees and be formed to provide for coordinated actions of the interested bodies of executive power when solving a certain range of tasks or to implement particular measures. Consultative bodies shall be named councils and be formed for preliminary processing of issues and prepare suggestions of recommended nature for them.

Decisions adopted by the coordination bodies within their sphere of reference shall be obligatory for all bodies of executive power represented in them.

Decision of the Government of the Russian Federation No. 225 of April 30, 2004 on the Governmental Commission for the Improvement of the Results of Budget Spendings

The Governmental Commission for the Improvement of the Results of Budgets Spendings is a body formed to coordinate the work in preparation by the subjects of budget planning of annual reports on the results and main directions of their activities.

The Commission may request from the federal bodies of executive power and other recipients of the resources of the federal budget begin the subjects of the budget planning information, documents and materials. Decisions of the Commission adopted within its sphere of reference shall be obligatory for all federal bodies of executive power, other recipients of the resources of the federal budget.

Decision of the Federal Commission for Securities Market No. 04-5/ps of February 18, 2004 on the Regulation of Activities of the Management Companies of Joint-Stock Investment Funds and Shared Investment Funds

Endorses the Regulation on the activities of the management companies of joint-stock and shared investment funds defining the requirements to the management of joint-stock investment funds, trust control of the investment reserves of joint-stock investment funds, as well as trust control of the shared investment funds. Management companies are ordered to bring their activities in compliance with the requirements of the Regulation within three months from the day of the entry into force of the Decision.

Defines the rules of handing out, exchange and redemption of investment shares of the shared investment fund, as well as determination of the estimated cost of such shares. Specifies the procedure of registration of the property comprising the investment reserves of the joint-stock investment fund, property comprising the shared investment fund and of storage of documents.

The management company must arrange an internal control over observation by the management company and its employees of the requirements of the laws and other normative legal acts, investment declaration of the joint-stock investment fund, rules of trust control of the shared investment fund, as well as decisions of the general meeting of the owners of investment shares.

Registered in the Ministry of Justice of the Russian Federation on April 27, 2004. Reg. No. 5776.

Decision of the Government of the Russian Federation No. 227 of April 30, 2004 on the Invalidation of the Decision of the Government of the Russian Federation No. 190 of February 28, 1995

The invalidated Decision envisaged the minimum level of the import customs duty rate in the amount of 5% for all commodities subject to the import duty. Recognised as expedient the maximum rates of the import customs duties in the amount of 30% of the customs cost of the commodities except for the luxury items, tobacco items, alcoholic drinks and arms.

Decision of the Government of the Russian Federation No. 222 of April 26, 2004 on the Financing in 2004 of Expenses for Social Programs and for the Measures to Eliminate the Consequences of Emergency Situations and Natural Disasters at the Expense of the Pension Fund of the Russian Federation

Sets forth the rules of allocation, spending and control over the use for the designated purposes of the resources of the Pension Fund of the Russian Federation intended to finance in 2004 a number of social programs of the subjects of the Russian Federation and the measures to eliminate the consequences of emergency situations and natural disasters where it pertains to the rendering of the tied material aid to non-working pensioners, as well as construction and restoration of social services institutions.

The decision to finance the expenses mentioned in the social programs (requests) or to refuse the financing is taken by the Fund within 15 days from the day of receiving. The decision to allocate the resources is taken on the basis of presented social programs (requests) in proportion to the number of pensioners living on the territory of the appropriate subject of the Russian Federation.

Letter of the Federal Commission for Securities Market No. 04-SH-09/5118 of March 24, 2004 on the Handing over of the Keeping of the Register of Holders of Registered Securities to the Recorder

Explains that if the number of stock-holders of the issuer is greater than 50, the handing over of the keeping of the register of holders of registered securities to the recorder is obligatory.

Order of the Government of the Russian Federation No. 608-r of May 7, 2004

In pursuance of Article 116 of the Constitution of the Russian Federation and Article 35 of the Federal Constitutional Law on the Government of the Russian Federation, the Government of the Russian Federation abdicates from their authority in the face of the newly elected President of the Russian Federation.

Instruction of the Central Bank of Russia No. 112-I of March 31, 2004 on the Obligatory Normatives of Credit Organisations Issuing Mortgage Insurance Bonds

Specifies the particulars of calculation and the values of obligatory normatives (N1 and N5), as well as the amount and method of determination of additional obligatory normatives (N17, N18 and N19) of credit organisations issuing mortgage insurance bonds, as well as the particulars of enforcement of their observation by the Bank of Russia.

The minimum permissible numerical value of N1 normative (sufficiency of own resources (capital)) of the issuing credit organisation is fixed in the amount of 14%.

The minimum permissible numerical value of the general liquidity normative (N5) of the issuing credit organisation is fixed in the amount of 20%.

The minimum permissible numerical value of the normative of the minimum ratio of the amount of provided mortgage insurance credits and own resources (capital) (N17) of the issuing credit organisation is fixed in the amount of 10%.

The minimum permissible numerical value of the normative of the minimum ratio of the amount of mortgage insurance and the volume of issue of the mortgage insurance bonds (N18) of the issuing credit organisation is fixed in the amount of 100%.

The maximum permissible numerical value of the normative of the maximum ratio of the total amount of obligations of the issuing credit organisation to creditors possessing priority right to satisfy their claims to the holders of the mortgage insurance bonds and own resources (capital) (N19) of the issuing credit organisation is fixed in the amount of 50%.

The issuing credit organisations must observe the mentioned normatives on the daily basis and present reports of their observation on the monthly basis as of the first of each month, as well as during the month in the framework of the reporting Form 0409135 "Information on Obligatory Normatives".

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

Registered in the Ministry of Justice of the Russian Federation on May 5, 2004. Reg. No. 5783.

Order of the Ministry of Taxation of the Russian Federation No. SAE-3-23/287@ of April 14, 2004 on the Amendments to the Instruction on the Filling of the Form of the Tax Estimate (Information) of the Amounts of Incomes Paid out to Foreign Organisations and Collected Taxes

Pursuant to the endorsement of the new form of the tax estimate of the amounts of incomes paid out to foreign organisations and collected taxes, refines its filling procedure. In particular, omits the earlier available provision stating that line "Name of the Foreign Organisation" of the tax estimate must show the name of the foreign organisation receiving the income as indicated in the contract concluded by the tax agent and the foreign organisation.

Registered in the Ministry of Justice of the Russian Federation on May 5, 2004. Reg. No. 5782.

Order of the Ministry of Taxation of the Russian Federation No. SAE-3-23/286@ of April 14, 2004 on the Endorsement of the Form of the Tax Estimate (Information) of the Amounts of Incomes Paid out to Foreign Organisations and Collected Taxes

Endorses the new form of the tax estimate (information) of the amounts of incomes paid out to foreign organisations and collected taxes (KND Form 1151056).

Registered in the Ministry of Justice of the Russian Federation on May 5, 2004. Reg. No. 5781.

Decree of the President of the Russian Federation No. 585 of May 7, 2004 on the Abdication of the Government of the Russian Federation

In pursuance of the abdication from their authority in compliance with Article 116 of the Constitution of the Russian Federation, the Government of the Russian Federation is ordered to continue their work before the forming of the new Government of the Russian Federation.

The Decree is entered into force from the day of its signing.

Decision of the Government of the Russian Federation No. 232 of May 8, 2004 on the Amendments to the Decision of the Government of the Russian Federation No. 409 of July 7, 2003

The earlier specified for 9 months rates of import customs duties for the lemon acid, electric transformers, capacitors and resistances, bulbs and lighting equipment used for medical purposes shall preserve on the permanent basis from May 11, 2004.

Operative Direction of the Central Bank of Russia No. 48-T of April 30, 2004 on the Procedure of Filling of the Reporting Form 0409115 "Information on the Quality of Loans, Debts in Loans and Similar Debts" Envisaged in the Direction of the Bank of Russia No. 1376-U of January 16, 2004 on the List, Forms and Procedure of Drawing up and Submission of the Forms of Reports of Credit Organisations to the Central Bank of the Russian Federation and Particulars of Application of Item 1.4 of the Regulation of the Bank of Russia No. 232-P of July 9, 2003 on the Procedure of Building of Reserves for Possible Losses

Explains the particulars of filling of the bank reporting Form 0409115 "Information on the Quality of Loans, Debts in Loans and Similar Debts" envisaged in the Direction of the Bank of Russia No. 1376-U of January 16, 2004. Thus, the lines of risk group 1 must not be filled out in the mentioned form, and the lines of risk groups 2 to 5 are used to record the debts classified under the Instruction of the Bank of Russia No. 62a of June 30, 1997.

The Direction provides risk group correspondence for loans, debts in loans and similar debts and for financial assets (obligations) of one and the same partner of the credit organisation being elements of the estimate base proceeding from risk group characteristics mentioned in the Regulation of the Bank of Russia No. 232-P and the Instruction of the Bank of Russia No. 62a.

Federal Law No. 38-FZ of May 10, 2004 on the Amendment to Article 38 of the Federal Law on the Fire Safety

Eliminates the ambiguity pertaining to the budget level to be used to enter 50% of the resources from application of fines in the fire safety sphere earlier allocated to the fire safety funds. The mentioned amounts shall be entered on the local budgets at the place of location of the body having decided to impose the fine.

Federal Law No. 37-FZ of May 9, 2004 on the Amendment to Article 18.8 of the Code of Administrative Violations of the Russian Federation

Enhances the responsibility for the violation of the regime of stay in the Russian Federation by a foreign citizen or stateless person. The failure to observe the specified procedure of registration or travel or procedure of choosing of the place of residence, failure to exit the Russian Federation upon expiry of the certain term of stay, as well as the failure to observe the rules of transit travel implies an administrative fine in the amount of 10 to 15 minimum amounts of labour remuneration (earlier, from 5 to 10 minimum amounts of labour remuneration).

Federal Law No. 36-FZ of May 9, 2004 on the Amendment to Article 2 of the Federal Law on the Veterans

Citizens awarded with the medal for the defence of Leningrad, as well as the invalids from childhood through injury, contusion or mutilation because of the military actions during the Great Patriotic War of 1941-45 shall enjoy the status of the participant of the Great Patriotic War.

The previous wording included in the participants of the Great Patriotic War the persons having worked at the enterprises, in the institutions and organisations of Leningrad during the blockade from September 8, 1941 to January 27, 1944 and those awarded with the medal for the defence of Leningrad.

The Federal Law is entered into force from the day of its official publication.

Federal Law No. 35-FZ of May 8, 2004 on the Execution of the Federal Budget for the Year 2002

Endorses the report of execution of the federal budget for the year 2002 with incomes amounting to Rbl 2,204,728,270.2 thousand and expenses amounting to Rbl 2,054,193,993.0 thousand, incomes exceeding expenses (federal budget surplus) by Rbl 150,534,277.2 thousand.

The Federal Law is entered into force from the day of its official publication.

Federal Law No. 34-FZ of May 8, 2004 on the Amendments to Articles 14, 21 and 25 of the Federal Law on the State Pension Support in the Russian Federation

Specifies the rules of calculation of the amount of the length-of-service pension taking into account the appropriate regional coefficient to federal state servants for the period of residence in the localities where regional coefficients to earnings apply. Increases the limiting amount of the average monthly earnings used to calculate the length-of-service pension to the federal state servant - from 1.8 to 2.3 of the salary for the occupied position.

Also refines the provision of Article 25 of the Federal Law pertaining to the indexing of the length-of-service pension inasmuch as it pertains to the determination of the procedure of such indexing by the Government of the Russian Federation. The earlier assigned length-of-service pensions to the federal state servants must be recalculated from July 1, 2002.

The Federal Law is entered into force from the day of its official publication.

Federal Law No. 33-FZ of May 7, 2004 on the Amendments to Article 3 of the Law of the Russian Federation on the Customs Tariff and Article 5 of the Federal Law on the Amendments to Part 2 of the Tax Code of the Russian Federation and Some of the Other Acts of the Legislation of the Russian Federation, As Well As on Invalidation of Individual Acts of the Legislation of the Russian Federation

Changes the procedure of calculation of the limiting rate of the import customs duty for the Urals brand of raw oil. Changes the scale of the export duty for oil by fixing two additional intervals of the average price for oil at the world markets of raw oil materials. In the interval of USD 109.5 to USD 146 per ton, the limiting duty rate is fixed in the amount not more than 35% of the difference between the available during the monitoring period average price for the given oil in USD per ton and USD 109.5. In the interval of USD 146 to USD 182.5 per ton, the limiting duty rate is fixed in the amount not more than USD 12.78 per ton and 45% of the difference between the available during the monitoring period average price for the given oil in USD per ton and USD 146.

The Law increases the tax rate at extraction for the period from January 1, 2002 to December 31, 2006 - from Rbl 347 to Rbl 400 per ton. Also changes the formula to be used by the taxpayers to determine independently on the quarterly basis the factor to the mentioned tax rate characterising the dynamics of the world prices for oil.

The Federal Law is entered into force one month after the day of its official publication except for the norms on the raising of the tax rate and determination of the coefficient to it. The given norms are entered into force from January 1, 2005.

Decision of the Government of the Russian Federation No. 231 of May 6, 2004 on the Endorsement of the Amounts of the Average Single Doses of Narcotic and Psychotropic Substances for the Purposes of Articles 228, 228.1 and 229 of the Criminal Code of the Russian Federation

To qualify the large and specially large amount of narcotic and psychotropic substances found in illegal circulation responsibility for which is specified in Articles 228, 228.1 and 229 of the Criminal Code of the Russian Federation, endorses the amounts of the average single doses of narcotic and psychotropic substances.

The large amount is recognised to be the quantity of the narcotic, psychotropic substance or their analogue exceeding the average single dose of consumption ten or more times, and the specially large amount - fifty and more times.

Thus, criminal responsibility for the purchase or storage of narcotic substances may occur if 10 or more of such doses of the prohibited preparation are found with a person. Smaller amounts may inflict an administrative punishment.

The Decision is entered into force from May 12, 2004.

Decision of the Government of the Russian Federation No. 233 of May 11, 2004 on the Non-Application of the Rate of the Export Customs Duty for Laminar Wood and Other Items of Wood

The rate of the export customs duty for wood and items of it, charcoal (codes according to the Foreign-Trade Commodity Nomenclature 4402 00 000 0 - 4421) endorsed by the Decision of the Government of the Russian Federation No. 1364 of December 9, 1999 shall not apply to laminar wood (code according to the Foreign-Trade Commodity Nomenclature 4418 90 100 0) and other items of wood (code according to the Foreign-Trade Commodity Nomenclature 4421 90 980 0).

The Decision is entered into force one month after the day of its official publication.

Decision of the Government of the Russian Federation No. 230 of May 6, 2004 on the Redemption in 2004 from the Holder Citizens of the Russian Federation of Available with Them State Treasury Bonds of the USSR and Certificates of the Savings Bank of the USSR Having Been Placed on the Territory of the Russian Federation before January 1, 1992.

Redemption from the holder citizens of the Russian Federation of the bonds and certificates shall be arranged to their desire through the Savings Bank of the Russian Federation. The amount of resources to be paid out under the bonds and certificates shall be determined proceeding from the nominal cost of the security (in the roubles of the USSR), compensation in the amount of 40% of the nominal cost of the mentioned security and the income for this security. The income will be paid out in the amount of 10% annual of the nominal cost of the appropriate security (including 40% compensation) for each year following the year of the end of the time of circulation specified in the terms of issue to the year 2003 inclusive.

Direction of the Central Bank of Russia No. 1413-U of March 30, 2004 on the Invalidation of the Acts of the Bank of Russia

Pursuant to the adoption of the Instruction of the Bank of Russia No. 111-I of March 30, 2004, invalidates the Preamble, Chapters I, II and V, Appendices 1 and 2 of the Instruction of the Bank of Russia No. 7 of June 29, 1992 on the procedure of obligatory sale by the enterprises, associations, organisations of the part of the currency receipts through authorised banks and of carrying out of operations at the internal currency market of the Russian Federation.

The Direction is entered into force from June 18, 2004.

Direction of the Central Bank of Russia No. 1406-U of March 26, 2004 on the Adjustment of Individual Acts of the Bank of Russia

Pursuant to the adoption of the Regulation of the Bank of Russia No. 254-P of March 26, 2004, invalidates the Instruction of the Bank of Russia No. 62a of June 30, 1997 on the procedure of building and use of the reserve for possible losses in loans (with amendments).

Decree of the President of the Russian Federation No. 580 of May 5, 2004 on the Endorsement of the List of Dual-Purpose Commodities and Technologies That May Be Used to Create Armaments and Military Equipment Subject to Export Control

Endorses the new list of dual-purpose commodities and technologies that may be used to create armaments and military equipment subject to export control. The earlier endorsed list (with amendments) is invalidated.

The Decree is entered into force three months after the day of its official publication.

Order of the Ministry of Finance of the Russian Federation No. 38n of April 13, 2004 on the Endorsement of the Procedure of Preliminary Expert Evaluation of the Values Included in the State Fund of Russia

Defines the rules, terms and procedure of carrying out of the preliminary expert evaluation of included in the State Fund of the Russian Federation precious metals and stones, as well as items, waste and scrap of them.

The preliminary expert evaluation is carried out when the values are received in the State Depository of Russia during processing, acceptance and sorting. Part of the values revealed during the preliminary expert evaluation may be included in the Diamond Fund of Russia after their submission to the appropriate expert commission of the Ministry of Finance of Russia.

The expert evaluation is arranged through determination of the types and names of items, types and composition of the precious metals, their weight, and if there are inserts of precious and semi-precious stones in the items - determination of their type, colour, defects, type and form of cutting, weight. Compliance with available standards or other normative and technical documents is revealed.

Registered in the Ministry of Justice of the Russian Federation on May 12, 2004. Reg. No. 5787.

Letter of the Ministry of Taxation of the Russian Federation No. 33-0-11/281 of April 9, 2004 on the Application of Cash Registers When Accepting Metal Scrap from the Population accepting metal scrap from the population. <br> <br> Thus, payments in cash when accepting metal scrap from the population must be made using cash registers. <br>

Explains that the Federal Law No. 54-FZ of May 22, 2003 on the application of cash registers in payments in cash and/or using pay cards does not envisage exemption from the use of cash registers for organisations and independent entrepreneurs accepting metal scrap from the population.

Thus, payments in cash when accepting metal scrap from the population must be made using cash registers.

Decision of the Constitutional Court of the Russian Federation of May 13, 2004 on the Case of Constitutionality of Part 2 of Article 16 of the Law of the Pskov Province on the Protection of Population and Territories against Emergency Situations of Natural and Technical Nature Pursuant to the Request of the Administration of the Pskov Province

The subject under consideration is the norm of the Law stating that the Chief of the Directorate for Civil Defence and Emergency Situations of the Pskov Province is empowered with the status of the Deputy Chief of the province Administration. It was assessed by the court in essence and from the viewpoint of the specified in the Constitution of the Russian Federation delimitation of the sphere of reference and authority between the bodies of state power of the Russian Federation and the bodies of state power of its subjects. Earlier, this provision of the Law was recognised as invalid by the decision of the Pskov regional court.

The Constitutional Court confirmed the constitutionality of the given norm with a reservation stating that it may not be interpreted as permitting to empower the mentioned official with the duties other than those corresponding to the nature of his position or the functions of the body headed by him, regulation of the fundamentals of state service specified on the basis of the Constitution of the Russian Federation by the federal laws, as well as the status of serviceman, and other than those stipulated by the need to coordinate the activities of the bodies of public power, organisations and their officials in the solving of the tasks of civil defence, tasks in prevention and elimination of emergency situations. Besides, the court emphasised that dismissal from the position of the Deputy Chief of the Administration of the Pskov Province initiated by the Chief of the Administration (Article 43 of the Charter of the Pskov Province) does not imply simultaneously dismissal from the position of the Chief of the Di rectorate for Civil Defence and Emergency Situations of the province.

Decree of the President of the Russian Federation No. 613 of May 14, 2004 on the Endorsement of the Regulation on the Department of the Press Service and Information of the President of the Russian Federation

The new department is formed in replacement of the two earlier available bodies - Information Department of the Administration of the President of the Russian Federation and the Department of the Press Service of the President of the Russian Federation. The main tasks of the department include:

- providing for the implementation of the presidential authority in the sphere of the state information policies;

- providing information on the activities of the President to mass media;

- operative informing of the President of the position of mass media on the decisions and speeches of the head of the state, on the reaction on them in mass media;

- information support of the state, official and other visits, meetings, negotiations.

Decision of the Government of the Russian Federation No. 241 of May 15, 2004 on the Amendment to Item 1 of the Regulation on the Control over the Foreign-Trade Activities Pertaining to Dual-Purpose Commodities and Technologies That May Be Used in Creation of Armaments and Military Equipment Endorsed by the Decision of the Government of the Russian Federation No. 447 of June 7, 2001

The amendments to the mentioned Regulation are introduced pursuant to the publication of the Decree of the President of the Russian Federation No. 580 of May 5, 2004 on the endorsement of the list of dual-purpose commodities and technologies that may be used in creation of armaments and military equipment subject to export control.

Decision of the Government of the Russian Federation No. 240 of May 15, 2004 on the Amendments to the Decision of the Government of the Russian Federation No. 830 of November 30, 2001 and No. 602 of August 21, 2001

Refines individual subheadings of Heading 8459 of the Foreign-Trade Commodity Nomenclature (metal-cutting machine-tools). Introduces for 9 months the rates of import customs duties for commodities of Subheadings 8459 70 000 1, 8459 70 000 9 and 8461 90 000 0 (thread-cutting and other machine-tools).

Decree of the President of the Russian Federation No. 611 of May 12, 2004 on the Measures to Ensure Information Security of the Russian Federation in the Sphere of International Information Exchange

The subjects of international information exchange in the Russian Federation are ordered to avoid including information systems, communication networks and independent personal computers processing information containing state secret and restricted-access service information, as well as those featuring special rules of access to information resources, in the means of international information exchange including the international association of Internet networks.

The holders of open and publicly available state information resources may include them in the objects of international information exchange only if they use certified means of information protection. Besides, the holders and users of the mentioned resources must place technical means connected to open information systems, networks and communication networks used in the international information exchange, including the Internet network, outside the rooms intended for closed negotiations including discussion of issues containing information comprising the state secret.

The Decree invalidates the Decree of the President of the Russian Federation No. 1189 of October 6, 1998 on the measures to ensure information security of the Russian Federation in the sphere of international information exchange.

Order of the State Customs Committee of the Russian Federation No. 532 of April 29, 2004 on the Amendments to the Order of the State Customs Committee of Russia No. 1193 of October 23, 2003

Provides the new wording for the list of individual types of commodities imported to the customs territory of the Russian Federation by highway transport to recipients located in Moscow and the Moscow Province provided in Appendix 1 to the Order of the State Customs Committee of Russia No. 1193 of October 23, 2003. The places of declaring of the mentioned commodities provided in Appendix 2 to the mentioned Order are extended to include new customs stations.

The present Order is entered into force ninety days after the day of its official publication.

Registered in the Ministry of Justice of the Russian Federation on May 14, 2004. Reg. No. 5791.

Decision of the Government of the Russian Federation No. 244 of May 17, 2004 on the Amendment to the Decision of the Government of the Russian Federation No. 328 of June 5, 2003 on the Endorsement of the Rules of Suspension of Operations on the Personal Accounts of Chief Administrators, Administrators and Recipients of the Resources of the Federal Budget Opened in the Federal Treasury Bodies

In addition to the existing list, the reason of suspension of operations on the personal accounts is the failure of the federal institution to close the accounts opened for it in the institutions of the Central Bank of the Russian Federation and/or credit organisations to register operations with resources obtained from entrepreneurial and other profitable activities.

Decision of the Government of the Russian Federation No. 243 of May 17, 2004 on the Endorsement of the Rates of Export Customs Duties for Raw Oil and Raw Oil Products from Bituminous Materials and Commodities of Oil Exported from the Territory of the Russian Federation outside the Member-States of the Customs Union Agreements

Amends the rates of export customs duties for raw oil and raw oil products from bituminous materials and commodities of oil exported from the territory of the Russian Federation outside the member-states of the Customs Union agreements.

From June 1, 2004, the rate of the export customs duty for raw oil and raw oil products from bituminous materials (code according to the Foreign-Trade Commodity Nomenclature of Russia 2709 00) is fixed in the amount of USD 41.6 per 1,000 kg. The Decision is entered into force one month after the day of its official publication except for the rate of the export customs duty for raw oil and raw oil products from bituminous materials (code according to the Foreign-Trade Commodity Nomenclature of Russia 2709 00) to be entered into force from June 1, 2004.

Decree of the President of the Russian Federation No. 649 of May 20, 2004 "Issues of the Structure of the Federal Bodies of Executive Power"

Endorses the new structure of the federal bodies of executive power.

Creates a number of new bodies of executive power (Federal Service of Hydrometeorology and Environmental Monitoring, Federal Service of Enforcement of Observation of Legislation in the Sphere of Mass Communication and Protection of Cultural Heritage, Federal Agency of Geodesy and Cartography, Federal Agency of Information Technologies), transforms already existing ones (in particular, the Ministry of Transport and Communication of the Russian Federation is separated into the Ministry of Transport and the Ministry of Information Technologies and Communication), as well as solves the issues of their sphere of reference, subordination and agency affiliation. Besides, introduces a number of significant changes in the Decree of the President of the Russian Federation No. 314 of March 9, 2004 on the system and structure of the federal bodies of executive power. Abandons the prohibition for the implementation of judicial functions by the federal ministries (i.e. the keeping of registers and cadastres), federal servi ces and agencies are permitted to adopt normative legal acts, refines the notion of activities in the rendering of state services. Increases the time limits for the working out and endorsement of the regulations on the newly created federal bodies of executive power.

Decision of the Government of the Russian Federation No. 245 of May 19, 2004 on the Amendments to the Decision of the Government of the Russian Federation No. 510 of April 30, 1997

Decision of the Government of the Russian Federation No. 510 of April 30, 1997 is being brought in compliance with the Decision of the Supreme Court of the Russian Federation No. GKPI 2002-1360 of December 9, 2002. The procedure of paying out of compensations for the lost housing and/or property to citizens having become the victims of the crisis in the Chechen Republic and having left it beyond retrieve now does not contain now the provision restricting the right for the compensation to the citizens having left the Chechen Republic beyond retrieve after November 23, 1996.

Order of the Federal Service of the Russian Federation for Control over Circulation of Narcotic and Psychotropic Substances No. 123 of April 19, 2004 on the Endorsement of the Instruction on the Procedure of Conclusion of the Contract for Service in the Bodies of Control over Circulation of Narcotic and Psychotropic Substances and Its Termination

Defines the procedure of conclusion of the contract and its termination, list of grounds for its conclusion, as well as explains individual issues pertaining to the conclusion of the contract for the service in the bodies in charge of control over circulation of narcotic and psychotropic substances. Provides the typical form and the terms of the contract. The contract describes the rights, duties and responsibility of the parities, terms of payment and organisation of service activities, reasons of termination and discontinuation of the contract, social, housing and other conditions necessary for the execution of the obligations assumed by the parties taking into account the nature of the operative activities.

The contract is concluded for one year, three years or five years, as well as until the employee reaches the limiting age of being in the service.

Registered in the Ministry of Justice of the Russian Federation on May 18, 2004. Reg. No. 5795.

Methodology Recommendations on the Collection of the Audit Evidence When Checking the Correctness of Building of Insurance Reserves (Endorsed by the Ministry of Finance of the Russian Federation on April 23, 2004)

Provides practical recommendations on the collection of the audit evidence when fulfilling the audit task of expressing the opinion on the compliance of the procedure of building, reflecting in the records of insurance reserves specified in the legislation.

The auditor opinion of the valid or invalid or insufficiently valid level of accounting reports must be based on the collected in the course of the audit check necessary and sufficient audit evidence.

The sufficiency of the audit evidence is determined in each particular case on the basis of assessment of the system of internal control and the audit risk level with the given economic subject.

Federal Law No. 44-FZ of May 22, 2004 on the Ratification of the Agreement between the Government of the Russian Federation and the Government of the Federal Republic of Germany on the Cooperation in the Sphere of Investigation and Use of the Outer Space for Peaceful Purposes

Ratifies the Agreement signed in St.Petersburg on April 10, 2001 contributing to the mutually beneficial scientific and technical, industrial, economic and other cooperation in the framework of joint activities pertaining to investigation and use of the outer space and application of outer space equipment and technologies for peaceful purposes.

Federal Law No. 43-FZ of May 22, 2004 on the Ratification of the Agreement between the Government of the Russian Federation and the Government of the Kingdom of Belgium on Cooperation in the Sphere of Investigation and Use of the Outer Space for Peaceful Purposes

Ratifies the Agreement signed in Moscow on December 20, 2000 contributing to the mutually beneficial cooperation in various spheres of joint activities pertaining to investigation and use of the outer space and application of outer space equipment and technologies for peaceful purposes.

Federal Law No. 42-FZ of May 22, 2004 on the Ratification of the Agreement between the Government of the Russian Federation and the European Space Agency on Cooperation and Partnership in the Investigation and Use of the Outer Space for Peaceful Purposes

Ratifies the Agreement signed in Paris on February 11, 2003 creating a legal and organisational basis for the continuation and multifaceted development of long-term mutually beneficial cooperation and partnership in joint activities, including the use of the outer space and application of outer space systems and technologies for peaceful purposes.

Federal Law No. 41-FZ of May 22, 2004 on the Ratification of the Agreement between the Government of the Russian Federation and the Government of Australia on Cooperation in the Sphere of Investigation and Use of the Outer Space for Peaceful Purposes

Ratifies the Agreement signed in Canberra on May 23, 2001 contributing to creation of organisational and legal basis for mutually beneficial cooperation in particular spheres of joint activities pertaining to investigation and use of the outer space and practical application of the outer space equipment and technologies for peaceful purposes.

Federal Law No. 40-FZ of May 22, 2004 on the Ratification of the Agreement between the Government of the Russian Federation and the Government of the Italian Republic on Cooperation in Investigation and Use of the Outer Space for Peaceful Purposes

Ratifies the Agreement singed in Moscow on November 28, 2000 contributing to creation of the legal basis for conclusion of agreements in particular spheres and directions of joint activities pertaining to investigation and use of the outer space and application of outer space equipment and technologies.

Decision of the Government of the Russian Federation No. 247 of May 21, 2004 on the Additional Restrictions on the Investing of Resources of Accumulated Pensions by the Management Companies Having Concluded Trust Control Contracts with the Pension Fund of the Russian Federation and Non-State Pension Funds Providing for Obligatory Pension Insurance in the Deposits in Roubles in Credit Organisations

Specifies additional requirements to the deposits in roubles in credit organisations necessary of the investing of resources of accumulated pensions by the management companies having concluded trust control contracts with the Pension Fund of the Russian Federation and non-state pension funds providing for obligatory pension insurance. The mentioned deposits may be placed in credit organisations possessing the general license of the Bank of Russia, as well as own resources of at least Rbl 5 billion with the time of operation from the moment of registration being at least 5 years. Besides, additional requirements include: absence of violations of obligatory normatives in the work of the banks and absence of measures of intervention with the credit organisation for the most recent six months pertaining to redemption of debts in credits.

Decision of the Higher Arbitration Court of the Russian Federation No. 4719/04 of May 20, 2004

The Decision pertains to the legality of application of taxation systems in the form of the uniform imputed income tax by organisations rendering services in the keeping of motor vehicles on paid car parkings.

The court recognised as contradicting the Tax Code of the Russian Federation the provision of Paragraph 4 of Item 5 of the Letter of the Ministry of Taxation of the Russian Federation No. SA-6-22/657 of June 11, 2003 stating that making profit from the rendering of services in the keeping of motor vehicles on paid car parkings by the taxpayers should be regarded as an independent type of entrepreneurial activities failing to fall under the taxation system in the form of the uniform imputed income tax.

Thus, organisations rendering the mentioned services may switch over to the uniform imputed income tax for individual types of activities under the condition that these services are being rendered to natural persons.

Message of the President of the Russian Federation to the Federal Assembly of the Russian Federation of May 26, 2004

Among the most vital tasks emphasises providing the citizens with affordable housing, modernisation of the public health services, development of domestic education and development of the transport infrastructure.

Special attention is paid to the further reformation in the tax sphere. The tax system must become non-cumbersome for business, fair for all economic subjects. The Message emphasises the necessity of further reduction of the rates of the value added tax, uniform social tax and exemption of advance payments from taxes.

Letter of the Central Bank of Russia No. 29-5-1-13/1283 of April 1, 2004 "Description of the Bank Notes of the Bank of Russia of 1997 Modified in 2004"

To improve protection of currency notes against forgery, introduces for circulation in the Russian Federation in 2004 the notes of 1997, modification of 2004, with the nominal value of 10, 50, 100, 500 and 1,000 roubles. The modified bank notes have formats, colour and design pattern similar to the bank notes of the Bank of Russia of 1997 of appropriate nominal values. The facing side of the modified bank notes bears the text "Modification of 2004" on the narrow coupon field on the right of the relief signs for the people with impaired vision. The Letter describes the differences of the new modified bank notes from the notes of 1997.

Decision of the Government of the Russian Federation No. 249 of May 22, 2004 on the Measures to Improve the Efficiency of Results of the Budget Expenses

Approves the concept of reformation of the budget process in the Russian Federation for the years 2004-2006. Endorses the plan of measures to implement it and the Regulation on the reports of the results and the main directions of activities of the subjects of budget planning.

The essence of the reform is the shifting of the emphasis of the budget process from the "management of the budget resources (expenses)" to the "management of the results" by enhancing responsibility and enlarging independence of the participants of the budget process and administrators of the budget resources in the framework of the clearly defined average-term guidelines. Within the concept of the "management of the results", the budget is built proceeding from the goals and planned results of the state policy. Budget allocations are clearly tied to the functions (services, types of activities). The main emphasis in their planning is placed on the substantiation of the final results in the framework of the budget programs.

The concept also implies a switchover to the long-term budget planning while fixing clearly defined rules of changing of the volume and structure of allocations and improving the forecasting of the volume of resources to be managed by the administrators of the budget resources.

Direction of the Central Bank of Russia No. 1429-U of May 21, 2004 on the Invalidation of Individual Normative Acts of the Bank of Russia

Pursuant to the adoption of the Regulation of the Bank of Russia No. 253-P of March 16, 2004, invalidates the Regulation of the Bank of Russia No. 35 of February 28, 1996 on the procedure of depositary record keeping at the organised market of securities and the Order of the Bank of Russia No. 02-51 of February 28, 1996 on the endorsement of the Regulation on the procedure of depositary record keeping at the organised market of securities.

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 is published in the Herald of the Bank of Russia No. 31 of May 26, 2004.

Order of the Government of the Russian Federation No. 706-r of May 25, 2004

Recognises as expedient introduction in the Russian Federation of the European system of digital TV broadcasting DVB. Individual ministries are ordered to finish development and provide for the entry into force in 2004 of the Russian standards of the DVB system.

Letter of the Ministry of Taxation of the Russian Federation No. 22-0-10/957@ of May 24, 2004 on the Explanation of Individual Issues of the Procedure of Filling of Section 2 of the Tax Declaration for the Uniform Imputed Income Tax for Individual Types of Activities

Explains individual issues of the procedure of recording of individual figures in Section 2 of the tax declaration for the uniform imputed income tax endorsed by the Order of the Ministry of Taxation of Russia No. BG-3-22/648 of November 21, 2003. Thus, the quantity figures of the given section of the tax declaration (line codes 050-070) are shown in integer values. The values below 0.5 of the unit are truncated, 0.5 and higher are rounded up to the whole unit.

Letter of the State Customs Committee of the Russian Federation No. 01-06/18051 of May 19, 2004 on the List of the ~Risk-Group~ and the ~Cover-Group~ Commodities

Lists commodities moved across the customs border permitting for violation of the customs rules to avoid payment of customs duties and taxes (~risk group~) and commodities that may be declared instead of the risk-group commodities (~cover group~).
When risk-group commodities and cover-group commodities, or only cover-group commodities, are declared in the same declaration, the customs body other than the one at the place of delivery must have these commodities presented for actual control.
When the cover-group commodities are declared, or the risk-group commodities and the cover-group commodities are declared in the same declaration simultaneously, the decision to clear the commodities is taken only after the customs inspection permitting to confirm unambiguously or refute information on the commodities contained in the commodity-accompanying and transportation documents presented to the customs body during the declaration procedure.

Letter of the Ministry of Taxation of the Russian Federation No. 01-2-03/555 of April 19, 2004 on the Taxation of Transportation Services

The services of delivery of commodities using own transport vehicles are subject to the VAT tax at the rate of 18% also in cases when the transported commodities are subject to the 10% VAT rate. In this case, the taxable base is determined separately for each type of commodities (works, services) where different tax rates apply.

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