Monitoring of the Federal Legislation dated 3.05.2006

Federal Law No. 57-FZ of April 29, 2006 on the Amendments to the Code of Administrative Violations of the Russian Federation

Removes inconsistencies in the wordings of individual norms of the Code of Administrative Violations that may make more difficult their application in practice.

Refines the norms of articles specifying administrative responsibility for the violation of the rules of loading and unloading of vessels, transportation of hazardous and heavy-duty cargo, rules of crossing of railway tracks, illegal production, supplies or purchase of ethyl alcohol, as well as for the violation of the legislation on the state registration of independent entrepreneurs and legal entities and other.

Decision of the Constitutional Court of the Russian Federation No. 4-P of April 20, 2006 on the Case of Constitutionality of Part 2 of Article 10 of the Criminal Code of the Russian Federation, Part 2 of Article 3 of the Federal Law on the Entry into Force of the Criminal Code of the Russian Federation, Federal Law on the Amendments to the Criminal Code of the Russian Federation and a Number of Provisions of the Code of Criminal Procedures of the Russian Federation Pertaining to the Procedure for Bringing Court Rulings in Compliance with the New Criminal Law Eliminating or Mitigating Responsibility for a Crime Pursuant to the Appeals of Citizens A.K.Aizhanov, Y.N.Aleksandrov and Other

Appeals to the Constitutional Court of the Russian Federation were caused by the fact that courts of general jurisdiction, while revising the passed sentences in view of the liberalisation of the Criminal Code, did not reduce the punishment if the earlier one appeared to be a minimum one or below the lower limit. According to the convicts having appealed to challenge the constitutionality of Part 2 of Article 10 of the Criminal Code of the Russian Federation, as well as a number of provisions of the Code of Criminal Procedures of the Russian Federation pertaining to court rulings being brought in compliance with the new criminal law mitigating the responsibility, the punishment should be reduced not only below the upper limit specified in the old law, but below the minimum one.

The Constitutional Court of the Russian Federation emphasised that the principle of retroaction of the criminal law mitigating the responsibility (Article 10 of the Criminal Code of the Russian Federation) must be applied regardless of what were the improvements for the particular person. Another interpretation of the mentioned norm, namely, a reduction of the punishment assigned to the convict to the upper limit specified in the Law is not in line with the literal sense of Article 10 of the Criminal Code of the Russian Federation and does not take account of the legal assessment of the committed actions according to the new legal regulation. Therefore, when revising the cases according to the new norms of the Criminal Code, the courts may reduce the term of punishment not only to the upper, but also to the lower limit.

As to the challenged Item 2 of Part 1 of Article 399 of the Code of Criminal Procedures of the Russian Federation stating that the issue of mitigation of the punishment pursuant to the introduction of the criminal law possessing retroactive force is solved by the court at the request of the convict, the court emphasised that this provision does not lift the duty of the authorised state bodies to initiate the issue to bring the sentence in compliance with the new criminal law mitigating the responsibility for the crime regardless of the presence of the request of the convict.

The Decision is entered into force immediately after annunciation.

Decision of the Government of the Russian Federation No. 255 of April 29, 2006 on the Amendment to the Decision of the Government of the Russian Federation No. 72 of February 10, 2004

Medicines are excluded from the list of commodities subject to obligatory certification, and medicines (OKP codes 931000-937000) registered according to established procedure and consisting of mixed or non-mixed products for therapeutic use packed as dosed medicines or for retail trade must be subject to compliance declaration beginning with January 1, 2007, rather than May 1, 2006 as was envisaged earlier.

Decision of the Government of the Russian Federation No. 253 of April 28, 2006 on the Requirements to the Technical Means of Registration and Transfer of Information on the Volume of Production and Circulation of Ethyl Alcohol and Alcohol-Containing Products

For the purpose of state regulation of production and circulation of ethyl alcohol, alcoholic and alcohol-containing products, endorses the requirements to the technical means of registration and transfer of information on the volume of production and circulation of ethyl alcohol, as well as alcohol-containing products, in the joint state automatic information system of registration of the volume of production and circulation of ethyl alcohol, alcoholic and alcohol-containing products.

The Decision defines the types and design of the mentioned technical means, as well as their fulfilled functions.

The software of the joint state automatic information system installed in the technical means of registration and transfer of information shall be created by the organisation subordinate to the Federal Security Service of the Russian Federation according to the specification requirements endorsed by the Federal Security Service of the Russian Federation and coordinated with the Federal Tax Service and the Federal Customs Service.

Decision of the Government of the Russian Federation No. 252 of April 28, 2006 on the Licensing of Activities in Reproduction (Making Copies) of Audio and Video Pieces of Art and Phonograms on Any Media

Defines the procedure of licensing of activities in reproduction (making copies) of audio and video pieces of art and phonograms on any types of media carried out by legal entities and/or independent entrepreneurs.

The licensing body is the Federal Service of Enforcement of Observation of Legislation in the Sphere of Mass Communication and Protection of Cultural Heritage that will issue appropriate licenses.

The Regulation defines the list of documents the applicant must submit to get the license, as well as the requirements and terms required to carry out the licensed type of activities. In particular, the license holder must have the documents confirming the order for production of appropriate products; his right or the right of the client to reproduce the audio and video pieces of art and phonograms (contracts of purchase of the copyright and/or adjacent rights); presence with the license holder of certificates for distribution of films that must be registered; and other.

The license for the licensed activities may be granted for 5 years.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-02-07/1-90 of April 12, 2006

According to Item 1 of Article 115 of the Tax Code of the Russian Federation, tax bodies may apply to court to file a lawsuit to impose the tax sanction no later than six months after the tax violation is revealed and the appropriate act is drawn up (period of limitation). According to explanations of the Presidium of the Higher Arbitration Court No. 5 of February 28, 2001, this period is calculated from the day of drawing up of the act when the taxpayer is called to account as a result of the on-site tax check, as well as when the persons not being taxpayers are called to account, since the act must be drawn up only in these cases. Since the Tax Code of the Russian Federation does not envisage the drawing up of the act by the tax body as a result of other forms of tax control, rather than the on-site tax check, the period of limitation specified in Item 1 of Article 115 of the Code must be calculated in these cases from the day when the appropriate violation was revealed. The given period may not be restored .

If the amount of fine imposed on the independent entrepreneur is not greater than Rbl 5,000 for each unpaid tax in a tax period (Rbl 50,000 for an organisation), the tax sanction is imposed on the basis of the decision calling the taxpayer to account for the tax violation.

Decision imposing the sanction is taken after the time limit specified for the execution of the duty to pay the tax has expired, but no later than 60 days after the expiry of the time limit of execution of the requirement to pay the tax. Decision taken after expiry of the mentioned time limit is invalid and may not be executed. In this case, the tax body may apply to court to collect from the taxpayer the due tax amount. The same provision applies to collection of penalties for the overdue payment of taxes and fines.