Monitoring of the Federal Legislation dated 18.05.2005

Decision of the Government of the Russian Federation No. 302 of May 16, 2005 on the Procedure for Making Payments and Transfers between Residents and Non-Residents When the Residents Grant Commercial Credits to Non-Residents for More Than 180 Calendar Days in the Form of a Preliminary Payment Pertaining to Foreign Trade Activities

Specifies that when payments and transfers are made between residents and non-residents in cases of commercial credits granted by residents to non-residents for more than 180 calendar days in the form of a preliminary payment pertaining to foreign trade activities, the resident must reserve until the day when the non-resident fulfils his obligations, however, not more than for 15 calendar days, an amount equivalent to 10% of the amount of the preliminary payment defined as of the day of reservation less the amount of consideration received by the resident from the non-resident.

The reserved amount must be transferred by the resident when 180 days expire from the day of transfer by the resident of monetary resources to the non-resident in the form of a preliminary payment pertaining to foreign trade activities.

The reservation and the return of the amount of reservation shall be effected according to the procedure defined by the Central Bank of the Russian Federation.

The Decision does not apply to capital flow currency operations carried out between resident credit organisations and non-residents.

Decision of the Government of the Russian Federation No. 301 of May 16, 2005 on the Exemption from Customs Fees for the Customs Registration of Cultural Values Moved across the Customs Border of the Russian Federation for Exhibition

Specifies that the customs fees for the customs registration are not collected in cases of re-import or re-export of cultural values moved across the customs border of the Russian Federation by state or municipal museums, archives, libraries and other state depositaries of cultural values for exposition.

The Decision applies to legal relations emerging from January 1, 2005.

Letter of the Federal Tax Service No. ShS-6-14/316 of April 15, 2005 on the Sending of the Letter

The Federal Tax Service informs that the Central Advisory Service of the Ministry of Taxation of the Russian Federation, its branches, other divisions may not provide tax advice to legal entities and natural persons.

Expert statements provided by the Central Advisory Service of the Ministry of Taxation of the Russian Federation, its branches, other divisions on taxation issues may not express the official position of the tax bodies of the Russian Federation and do not have legal power.