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Monitoring of the Federal Legislation dated 3.04.2006

Federal Law No. 44 of March 31, 2006 on the Consumer Basket for the Whole of the Russian Federation

Specifies the composition and the volume of the consumer basket for the main socio-demographic groups of population (able-bodied population, pensioners, children) for the whole of the Russian Federation, which is determined at least once in five years. As compared to the Federal Law No. 201-FZ of November 20, 1999 on the consumer basket for the whole of the Russian Federation, a number of natural figures have changed. The average annual volume of consumption of meat and fish products has increased, which forms part of the consumer basket, as well as the volume of consumption of milk and fresh fruits at the expense of a certain reduction of the volume of consumption of cereals (bread, alimentary pastes, groats). Non-foodstuff products practically did not change.

For the first time, the consumer basket includes cultural services making 5% of the total volume of expenses for services a month. The volume of services consumed by pensioners includes 150 transport trips. The Federal Law shall apply to legal relations emerging from January 1, 2005.

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

Decision of the Government of the Russian Federation No. 175 of March 31, 2006 on the Endorsement of the Rules of Granting Subventions in 2006 from the Federal Budget to the Budgets of the Subjects of the Russian Federation to Implement the Authority in Possession, Use and Disposal of Forests Earlier Owned by Agricultural Organisations, Their Protection and Reproduction

Defines the procedure of granting subventions in 2006 from the Federal Fund of Compensations to the budgets of the subjects of the Russian Federation for the implementation by the bodies of state power of the subjects of the Russian Federation of the authority of possession, use and disposal of forests earlier owned by agricultural organisations, their protection and reproduction.

The subventions shall be granted within the limits of budget obligations envisaged in the summary list of the federal budget to the Federal Forestry Agency that transfers subventions on the quarterly basis in equal portions within the limits specified in Appendix 32 to the Federal Law on the federal budget for the year 2006 on the accounts for the resources of the budgets of the subjects of the Russian Federation opened for the territorial bodies of the Federal Treasury for cash services for the execution of the budgets of the subjects of the Russian Federation. The Decision defines the procedure of submission of reports of the use of subventions. Control over the use of subventions shall be vested in the Federal Forestry Agency, Federal Service of Financial and Budget Enforcement and the Federal Service of Enforcement in the Sphere of Use of Natural Resources.

Decision of the Government of the Russian Federation No. 174 of March 31, 2006 on the Endorsement of the Rules of Granting Subventions in 2006 from the Federal Budget to Finance the Measures of Development and Support of the Social, Engineering and Innovation Infrastructure of the City of Peterhof As a Scientific City of the Russian Federation

Defines the procedure for granting subventions in 2006 form the federal budget to finance measures of development and support of the social, engineering and innovation infrastructure available on the territory of the city of Peterhof as a scientific city of the Russian Federation allocated for these purposes to the budget of St.Petersburg.

If the subventions are used for other than designated purposes, appropriate resources are collected to the federal budget. Responsibility for the use of subventions for designated purposes and submission of true information to the Ministry of Finance rests with the Government of St.Petersburg.

Decision of the Government of the Russian Federation No. 171 of March 30, 2006 on the Endorsement of the Rules of Use of Criteria of Enough Processing and Issue of Appropriate Certificates for the Products of Processing of Commodities Imported under the Customs Regime of Free Customs Zone Applied in the Kaliningrad Province

Defines the procedure of use of criteria of enough processing specified in the Federal Law No. 16-FZ of January 10, 2006 on the special economic zone in the Kaliningrad Province and on the amendments to some of the legislative acts of the Russian Federation. Also defines the procedure of issue of certificates pertaining to products of processing of commodities imported under the customs regime of free customs zone applied in the Kaliningrad Province.

The certificate of origin of commodities having undergone enough processing on the territory of the special economic zone shall be drawn up and certified by the body having issued the certificate after filling and presentation of the written application by the sender requesting the certificate and the documents confirming information in the application including the copies of the customs declarations for commodities used during processing other than those originating on the customs territory of the Russian Federation, as well as the documentation on the commodity processing technology. The time limit of issue of the certificate or a motivated decision to refuse the issue of the certificate may not be greater than 5 working days from the date of submission of the necessary documents to the body issuing the certificate.

Organisations producing commodities of a permanent nomenclature may get the certificate for their produced items valid for up to 1 year.

Order of the Federal Service for Financial Markets No. 06-483/pz-n of March 7, 2006 on the Endorsement of the List of Professional Participants of the Securities Market Whose Information on the Financial Standing Must Be Sent Operatively to the Federal Service for Financial Markets of Russia for Control over System Risks at the Securities Market

Endorses a new list of professional participations of the securities market whose information on the financial standing must be sent operatively to the Federal Service for Financial Markets of Russia. The list includes professional participants of the securities market having committed in the IV quarter of 2005 the greatest total volume of transactions (targeted and market transactions) with emission securities at the stock exchanges and through trade organisers.

The earlier available list endorsed by the Order of the Federal Service for Financial Markets of Russia No. 05-110/pz-n of January 26, 2005 shall not apply from the date of entry into force of the Order.

The Order shall enter into force from the date of issue.

Letter of the Federal Customs Service No. 15-14/8524 of March 17, 2006 on the Customs Registration of Information Transmitted over the Internet

Provides a statement of the Legal Department of the Federal Customs Service of Russia on the appeal of the Central Customs Department on the issue of the customs registration of the software, mobile content and other information transmitted over the Internet via optical fibre communication or satellite communication systems.

The customs bodies provide for the customs registration of commodities and appropriate transport vehicles moved across the customs border of the Russian Federation. The commodities (Item 1 of Article 11 of the Customs Code of the Russian Federation, Item 26 of Article 2 of the Federal Law No. 164-FZ of December 8, 2003 on the fundamentals of the state regulation of foreign trade activities) are implied to be any movable property and transport vehicles moved across the customs border.

Information products are being a commodity if it does not contradict international treaties of the Russian Federation and its legislation. Information products (Article 2 of the Federal Law No. 85-FZ of July 4, 1996 on the participation in the international information exchange) shall include only documented information, i.e. available on a material medium with details permitting to identify it. The transfer of information products via electronic means of communication is not qualified as international information exchange, the import (export) to (from) the territory of the Russian Federation of information products being defined as the moving of information (documents) on a material medium.

The Foreign Trade Commodity Nomenclature and the Customs Tariff of the Russian Federation do not contain either classification codes or rates of customs duties for the software or any other information products. The actual legislation of the Russian Federation in the customs sphere does not envisage customs registration of information products moved across the customs border of the Russian Federation via electronic means of communication.

Thus, the customs registration applies to the commodity containing information and moved across the customs border, i.e. material medium (laser disk, diskette, cassette etc.) rather than information (computer program, mobile content) transmitted in the Internet via optical fibre communication or through the channels of satellite communication.

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