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Monitoring of the Federal Legislation dated 31.10.2006

Decree of the President of the Russian Federation No. 1048 of September 29, 2006 on the Call up to the Military Service in October-December 2006 for the Citizens of the Russian Federation and on the Dismissal from the Military Service of Draft Servicemen



From October 1 to December 31, 2006 provides for the call up to the military service for the citizens of the Russian Federation aged 18 to 27 not being in the reserve and due for the military service in compliance with the Federal Law on the military duty and military service in the amount of 123,310 persons.

Also dismisses from the military service non-rated men, sergeants, and sergeant-majors with expired length of draft service.

The Government of the Russian Federation and the bodies of executive power of the subjects of the Russian Federation are ordered to implement the measures pertaining to the call up.

The heads of the federal bodies of executive power are ordered to provide for the execution of the provisions of the Federal Law for the citizens of the Russian Federation not being in the reserve and admitted to the service (employed) in appropriate subordinate bodies and organisations.

The Decree is entered into force from the day of official publication.

Letter of the Federal Service of Labour and Employment No. 1597-6-0 of September 13, 2006 on the Uninterrupted Length of Work



Explains the procedure of determination of the uninterrupted length of work in the regions of the Far North.

Since the actual legislation, while applying the term "uninterrupted length of work", does not provide its legal definition, uninterrupted length of work in the regions of the Far North should imply the periods of work in the mentioned regions summed up according to established procedure on condition that the intervals between these periods are not greater than the limit specified in the legislation.

Since the legislative act specifying the amount of the mark-up in percent, as well as the procedure of its application, is not adopted until now, in the determination of the length of work in the given localities, one should be guided by the Instruction endorsed by the Order of the RSFSR Ministry of Labour No. 2 of November 22, 1990, as well as the Decision of the Government of the Russian Federation No. 1012 of October 7, 1993 on the procedure of identification and calculation of the length of work permitting to get the mark up in percent to the earnings for the persons working in the regions of the Far North and localities of similar status and in the rest of the regions of the Far North.

In these cases, one should take into account that the ruling of the Supreme Court of the Russian Federation No. KAS04-596 of December 23, 2004 invalidated individual items of the Instruction.

In the identification of the regions of the Far North and localities of similar status, one should be guided by the list of the regions of the Far North and localities of similar status endorsed by the Decision of the Council of Ministers of the USSR No. 1029 of November 10, 1967.

Letter of the Federal Service of Labour and Employment No. 1557-6 of September 8, 2006 on the Advance Payments of Earnings



According to the actual labour legislation of the Russian Federation, the earnings must be paid out at least once in two weeks on the day specified in the internal rules of the organisation, the collective contract or the labour contract. Thus, specific time limits for paying out the earnings, including the advance payment, as well as the amount of the advance payment, are determined in the internal rules, the collective contract or the labour contract. The actually spent working time (actually fulfilled work) should also be taken into account in the determination of the amount of advance payment apart from the formal fulfilling of the requirement to pay out the earnings at least 2 times a month.

Federal Law No. 159-FZ of October 2, 2006 on the Amendments to the Federal Law on the Military Duty and Military Service



The amendments refine the grounds for dismissal into the reserve and on retirement, as well as the grounds to register for the purpose of military service. Define in addition the categories of servicemen dismissed from the military service without registration for the purpose of military service.

Federal Law No. 158-FZ of October 2, 2006 on the Ratification of the International Convention on the Suppression of Acts of Nuclear Terrorism



Ratifies the Convention signed in New York on September 14, 2005 with two declarations. The Convention is the first universal treaty aimed at prevention of terrorist acts using mass destruction weapons. The Convention envisages a mechanism of cooperation of states in the sphere of prevention of acts of nuclear terrorism, as well as of exchange of information pertaining to revealing, prevention, stopping and investigation of crimes specified in the Convention while preserving confidentiality of received information.

Order of the Federal Customs Service No. 907 of September 21, 2006 on the Particulars of Declaring of Information in the Cargo Customs Declaration When Legal Entities Declare Currency and Securities



When declaring the Russian and foreign currencies, except for the coins of precious metals and memorial coins of non-precious metals, as well as external and/or internal securities in the documentary form moved by legal entities, it is necessary to submit a separate cargo customs declaration for each type of currencies and securities. The Order specifies its filling particulars when declaring currencies and securities.

When declaring currencies in cash moved across the customs border of the Russian Federation for the purposes of sale of commodities aboard the air vessels, it is permitted to submit a periodic customs declaration.

The Order is entered into force 90 days after the day of its official publication.

Registered in the Ministry of Justice of the Russian Federation on September 29, 2006. Reg. No. 8341.

Order of the Federal Security Service of the Russian Federation No. 353 of July 26, 2006 on the Monthly Supplement for the Failure-Free Operation of Motor Vehicles and Maintaining Them in Operable Condition



Increases from 80% to 100% of the salary for the military position the maximum amount of the monthly supplement paid out to servicemen of the Federal Security Service for the failure-free operation of motor vehicles and maintaining them in operable condition.

The mentioned supplement is introduced for the contract servicemen of the Department of Material and Technical Support of the Service of Support of Activities of the Federal Security Service of Russia, Maintenance Department of the Federal Security Service of Russia, Administrative and Maintenance Department of the Border Guard Service of the Federal Security Service of Russia and the Border Guard Centre of Support of Operative Activities of the Federal Security Service of Russia occupying military positions of drivers and technicians. Apart from servicemen, the supplement applies also to civilian personnel occupying the mentioned positions. Earlier, the supplement for the failure-free operation of motor vehicles was paid out to servicemen only.

The amount of the monthly supplement may be reduced, or its paying out suspended for the violation of the traffic rules, rules of maintenance, operation and servicing of transport vehicles and garage equipment, discipline having caused a violation of the rules of operation of the automotive equipment.

The supplement shall be paid out simultaneously with the monetary subsistence (earnings) for the current month. The supplement is preserved during medical treatment, business trips, as well as the main and additional leaves. Earlier, the supplement was not paid out in the mentioned periods.

The Order of the Federal Border Guard Service of Russia No. 41 of January 24, 2002 having specified the previous amount and procedure of paying out of the supplement for the failure-free operation of the motor vehicle and maintaining it in operable condition is invalidated.

Registered in the Ministry of Justice of the Russian Federation on September 29, 2006. Reg. No. 8340.

Order of the Ministry of Agriculture of the Russian Federation No. 266 of August 28, 2006 on the Endorsement of the Norms of Natural Loss for the Storage of Butter in Monolith Parchment Packages and Inserts of Polymer Materials



Defines the norms of natural loss for the cases of storage of butter in monolith parchment packages and inserts of polymer materials.

Registered in the Ministry of Justice of the Russian Federation on September 29, 2006. Reg. No. 8338.

Order of the Federal Customs Service No. 876 of September 14, 2006 on the Endorsement of the Procedure of Paying out of the Monthly Supplement to the Salary for the Occupied Position for the Special Conditions of State Civil Service to the Federal State Civil Servants of the Customs Bodies of the Russian Federation



In pursuance of the Decree of the President of the Russian Federation No. 763 of July 25, 2006, from August 1, 2006, the federal state civil servants shall get a monthly supplement to the salary for the occupied position for the special conditions of civil service. The endorsed procedure defines the rules of assigning and paying out of the mentioned supplement to the federal state civil servants of the customs bodies of the Russian Federation.

When assigning the supplement, the following criteria are taken into account: proficiency in taking managerial decisions, responsible attitude in maintaining a high discipline; execution of functional duties on a quality basis, including the conditions different from normal (complexity, special importance, urgency, special regime and working schedule, mastering computer and other equipment and foreign languages and other); available state and agency awards, scientific grades, titles of honour, other distinguishing signs for the personal achievements.

The amount of the supplement specified earlier in the order of the customs body may be reduced before expiry of the period specified in the order in cases of a failure to meet the criteria.

Registered in the Ministry of Justice of the Russian Federation on September 29, 2006. Reg. No. 8336.

Order of the Ministry of Economic Development of the Russian Federation No. 268 of September 8, 2006 on the Endorsement of the Rules of Keeping of the Joint State Register of Objects of Capital Construction



The rules of keeping of the Joint State Register of Objects of Capital Construction define the composition of documents and information on the objects included in the register, the reasons and procedure of refusal to include information in the register, procedure for the technical inventory organisations to provide documents and information on the objects of registration and enter them in the register. Besides, define the procedure for providing documents and information from the register to the interested parties and the reasons of refusal.

The register is a classified collection of information and documents on the objects of registration maintained on paper and magnetic media.

A file is built for each object of registration. The file includes a copy of the technical certificate and the copies of documents of title for the objects of registration.

The rules are introduced on the stepwise basis within 3 years. In particular, in Moscow and on the territory of the Moscow Province – from January 1, 2008, in St.Petersburg – from January 1, 2009.

Registered in the Ministry of Justice of the Russian Federation on September 27, 2006. Reg. No. 8327.

Order of the Ministry of Public Health and Social Development of the Russian Federation No. 665 of September 18, 2006 on the Endorsement of the List of Medicines Sold to Doctor (Feldsher) Prescription for the Cases of Additional Free Medical Aid to Individual Categories of Citizens Entitled for the State Social Aid



From November 1, 2006, introduces a new list of medicines sold to doctor (feldsher) prescription to citizens entitled for the state social aid in the form of a set of social services in the cases of additional free medical aid.

Registered in the Ministry of Justice of the Russian Federation on September 27, 2006. Reg. No. 8322.

Order of the Ministry of Agriculture of the Russian Federation No. 267 of August 28, 2006 on the Endorsement of the Norms of Natural Loss for Cheese and Curds During Storage



Defines the norms of natural loss for curds and cheese because of the loss of moisture by weight (drying) depending on the shelf life and the type of coating at acceptance.

Registered in the Ministry of Justice of the Russian Federation on September 29, 2006. Reg. No. 8337.

Order of the Federal Service of Hydrometeorology and Monitoring of the Environment No. 141 of June 30, 2006 on the Endorsement of the Procedure of Forming and Functioning of the Russian System of Assessment of Anthropogenic Emissions from Sources and Absorption by Absorbers of Greenhouse Gasses



The endorses procedure of forming and functioning of the Russian system of assessment of anthropogenic emissions from sources and absorption by absorbers of greenhouse gasses has been worked out for the purpose of implementation of obligations of the Russian Federation arising from the Kyoto Protocol to the UN Framework Convention on Climate Change. The Kyoto Protocol envisages obligations of states to restrict and reduce anthropogenic emissions of greenhouse gasses, as well as to provide information on the volume of available anthropogenic emissions.

Information of the state statistical reports will be used for the annual assessment of anthropogenic emissions from sources and absorption by absorbers of greenhouse gasses. The mentioned information shall be sent to the Federal Service of Hydrometeorology and Monitoring of the Environment on the annual basis until June 15 for the previous year.

The Federal Service of Hydrometeorology and Monitoring of the Environment shall assess the received information and submit on the annual basis until March 1 for approval by the Government of the Russian Federation the cadastre of anthropogenic emissions from sources and absorption by absorbers of greenhouse gasses for the period from 1990 to the year preceding the previous one coordinated with the interested federal bodies of executive power. The structure of the cadastre shall include a description of the used methods and sources of information, description of the main categories of sources and absorbers, information on the national trends pertaining to emissions and absorption, review of assessments and trends for various categories of sources and absorbers, information on emissions in the sphere of power-supplies, industry, agriculture, land use, forestry, utilisation of waste.

The approved cadastre shall be sent to the Secretariat of the UN Framework Convention on Climate Change.

Registered in the Ministry of Justice of the Russian Federation on September 29, 2006. Reg. No. 8335.

Order of the Ministry of Agriculture of the Russian Federation No. 268 of August 28, 2006 on the Endorsement of the Norms of Natural Loss by Weight of Edible Roots, Potatoes, Fruited Vegetables and Greenstuffs of Various Ripeness at Storage



Defines the norms of natural loss by weight of edible roots, potatoes, fruited vegetables and greenstuffs of various ripeness at storage.

Registered in the Ministry of Justice of the Russian Federation on September 29, 2006. Reg. No. 8334.

Order of the Federal Customs Service No. 830 of September 1, 2006 on the Endorsement of the Blank Forms of Correction of the Customs Cost and the Regulation on the Correction of the Customs Cost of Commodities



Defines the procedure of correction of the customs cost of commodities declared to the customs bodies using the cargo customs declaration, as well as the rules of filling of the forms of correction of the customs cost and the customs payments on the blank forms KTS-1 (main sheet) and KTS-2 (additional sheet) of specified form stitched together in a set for the purpose of correction of the customs cost and release of commodities with secured customs payments that may accrue in addition as a result of control of the customs cost.

Endorses the mentioned blank forms.

The Order is entered into force from January 1, 2007.

Registered in the Ministry of Justice of the Russian Federation on September 27, 2006. Reg. No. 8330.

Order of the Federal Customs Service No. 829 of September 1, 2006 on the Endorsement of the Blank Forms of the Declaration of the Customs Cost (DTS-1 and DTS-2) and the Instruction on the Procedure of Filling of the Declaration of the Customs Cost



Instead of the forms earlier endorsed by the Order of the State Customs Committee of Russia No. 998 of September 8, 2003, introduces new blank forms of the declaration of the customs cost (DTS-1 and DTS-2).

Development of the new blank forms of declarations is stipulated by the entry into force from July 1, 2006 of the Federal Law No. 144-FZ of November 8, 2005 on the amendments to the Law of the Russian Federation on the customs tariff having changed the methods of determination of the customs cost of imported and exported commodities.

According to the endorsed Instruction on the procedure of filling of the declaration of the customs cost (DTS), the given declaration is an integral part of the cargo customs declaration and is submitted to the customs body registering the commodity when the commodities are declared simultaneously with submission of the cargo customs declaration and other documents necessary for the customs purposes.

Customs registration requires submission of two copies of the declaration of the customs cost signed and certified according to the procedure specified in the Instruction, as well as its electronic copy.

The declaration of the customs cost is filled out for all commodities imported to the territory of the Russian Federation declared using the cargo customs declaration except for the cases of: import of commodities by natural persons for personal, family, household needs other than entrepreneurial activities; if observation of the requirements of the legislation does not and may not require to pay the customs duties, taxes proceeding from the declared customs cost; when declaring customs regimes where the imported commodities are exempted from the customs duties, taxes; when importing commodities exempted from customs duties, taxes.

DTS-1 is filled out when the customs cost is determined proceeding from the cost of the transaction with imported commodities (method 1), DTS-2 – in other cases.

When the customs cost of waste is determined in compliance with Item 3 of Article 183 of the Customs Code of the Russian Federation, DTS-2 is filled out for the reserve method of determination of the customs cost.

The Order is entered into force from January 1, 2007.

Registered in the Ministry of Justice of the Russian Federation on September 27, 2006. Reg. No. 8329.

Order of the Ministry of Internal Affairs of the Russian Federation No. 748 of September 25, 2006 on the Form of the Certificate of the Highway Traffic Accident



Endorses the form of the certificate of the highway traffic accident handed out by militia bodies in charge of the traffic safety to victims to submit to the insurance organisation to get the insurance reimbursement.

Earlier, the victims got a certificate of the highway traffic accident drawn up according to the common form regardless of the address to submit to.

Registered in the Ministry of Justice of the Russian Federation on September 27, 2006. Reg. No. 8323.

Decision of the Central Election Commission of the Russian Federation No. 187/1180-4 of September 27, 2006 on the Statement of the Central Election Commission of the Russian Federation on the Issue “Do You Agree That One and the Same Person May Not Occupy the Position of the President of the Russian Federation for More Than Two Terms in Succession?” Suggested for the Referendum of the Russian Federation



According to the statement of the Central Election Commission, the issue “Do You Agree That One and the Same Person May Not Occupy the Position of the President of the Russian Federation for More Than Two Terms in Succession?” may not be put forward for the referendum of the Russian Federation, since it is not in compliance with the requirements of the Federal Constitutional Law on the referendum of the Russian Federation.

Letter of the Central Bank of Russia No. 01-13-5/3456 of September 29, 2006 on the List of Organisations



The list of organisations whose promissory notes (claims rights under credit contracts) may be accepted as a security for the credits of the Bank of Russia, as well as organisations that may act as guarantors for the promissory notes (claims rights under credit contracts) accepted as a security for the credits of the Bank of Russia, shall include now the open-type joint-stock company Federal Hydro Generation Company (OAO GidroOGK).

Decision of the Higher Arbitration Court of the Russian Federation No. 7849/06 of September 1, 2006



The Higher Arbitration Court of the Russian Federation recognised that the provisions of the rules of application in 2001 of the procedure of restructuring of the debts of legal entities in taxes and fees, as well as the debts in accrued penalties and fines to the federal budget, endorsed by the Decision of the Government of the Russian Federation No. 1002 of September 3, 1999 endorsed by the Order of the Ministry of Taxation of Russia No. BG-3-10/191 of June 21, 2001 are in compliance with the Tax Code of the Russian Federation. The Decision was stipulated by the application of the open-type joint stock company which stated that the challenged items of the rules, while emphasising the consequences of violation by the taxpayer of the schedule of redemption of payments during the restructuring of the debts in tax payments, state groundlessly the terms and procedure of termination of the respite and extension schedule of their payment that are different for the terms and procedure of termination of the respite and extension schedule of transfer of tax payments specified in the Tax Code of the Russian Federation.

The challenged Items 12 and 13 of the rules reproduce the content of Items 7 and 8 of the procedure of restructuring of the debts of legal entities in taxes and fees, as well as the debts in accrued penalties and fines to the federal budget, endorsed by the Decision of the Government of the Russian Federation No. 1002 of September 3, 1999 that was adopted in execution of Article 115 of the Law on the budget for the year 1999 and was not invalidated.

The Decision rejects the argument stating that the mentioned items of the rules, while defining the procedure of changing of the time limits of transfer of the tax and fee different from the one envisaged in Chapter 9 of the Tax Code of the Russian Federation, are not in compliance with Item 2 of Article 61 of the Tax Code of the Russian Federation. This conclusion of the applicant is not true, since it does not take account of the provisions of Item 1 of Article 63 of the Tax Code of the Russian Federation stating that the body authorised to take decisions changing the time limits of payment of taxes and fees to the federal budget is the federal body of executive power in charge of control and enforcement in the sphere of taxes and fees (except for the cases envisaged in Subitems 3-5 of the present Item and Item 2 of the present Article).

Moreover, the challenged provisions comply with Item 3 of Article 68 of the Tax Code of the Russian Federation, whereby if the interested party violates the terms of the granted respite, extension schedule, the respite, extension schedule may be subject to an early termination at the decision of the authorised body having taken the decision on the appropriate change of the time limit of execution of the duty to pay the taxes and fees.

Decision of the Government of the Russian Federation No. 590 of September 30, 2006 on the Raising from October 1, 2006 of the Amount of the First Grade Tariff Rate (Salary) of the Uniform Tariff of Labour Remuneration of Employees of the Federal State Institutions



From October 1, 2006, increases 1.11 times the amount of the first grade tariff rate (salary) of the Uniform Tariff of Labour Remuneration of employees of the federal state institutions. According to the Decision of the Government of the Russian Federation No. 256 of April 29, 2006, the first grade tariff rate (salary) was fixed in the amount of Rbl 1,100 from May 1, 2006.

Order of the Ministry of Agriculture of the Russian Federation No. 269 of August 28, 2006 on the Endorsement of the Norms of Natural Loss for Meat, Poultry and Rabbit Offal During Storage



Introduces the norms of natural loss for meat, poultry and rabbit offal during storage. The mentioned norms are differentiated depending on the category of meat, type of processing, storage conditions and time.

The norms of natural loss are used to determine the permissible quantity of unrecoverable losses because of the shortage and/or damage of material and production reserves in the calculation of the profit tax from organisations. The losses because of the shortage and/or damage during storage of material and production reserves within the norms of natural loss are qualified as material expenses reducing the taxable base for the profit tax.

Registered in the Ministry of Justice of the Russian Federation on October 3, 2006. Reg. No. 8353.

Order of the Ministry of Agriculture of the Russian Federation No. 270 of August 28, 2006 on the Endorsement of the Norms of Natural Loss for Products and Raw Materials of the Sugar Industry During Storage



Introduces the norms of natural loss during storage for white sugar, cube broken sugar, raw sugar, sugar beet and sugar in sugar beet

The norms of natural loss are differentiated depending on the period of storage of the mentioned products (raw material) and the storage conditions.

The losses because of the shortage and/or damage during storage of material and production reserves within the mentioned norms are qualified as material expenses reducing the taxable base for the profit tax from organisations.

Registered in the Ministry of Justice of the Russian Federation on October 3, 2006. Reg. No. 8352.

Order of the Ministry of Public Health and Social Development of the Russian Federation No. 649 of September 5, 2006 on the Amendments to the Order of the Ministry of Public Health of the Russian Federation No. 377 of October 15, 1999 on the Endorsement of the Regulation on the Labour Remuneration for Medical Workers



The introduced amendments pertain to the length of uninterrupted work permitting the medical workers to get supplements to the salary.

The list of cases permitting to preserve the length of work is extended to include employee dismissal because of staff cuts in the institutions (division). Earlier, the length of work was preserved only if dismissed because of liquidation of the organisation. The interval between the dismissal and admission to work in a public health institution must not be greater than 3 months, and if dismissed in the regions of the Far North and localities of similar status – 6 months.

Registered in the Ministry of Justice of the Russian Federation on October 3, 2006. Reg. No. 8351.

Order of the Federal Customs Service No. 875 of September 14, 2006 on the Endorsement of the Regulation on the Procedure for Paying out Material Aid to the Federal State Civil Servants of the Customs Bodies of the Russian Federation



Endorses the Regulation defining the procedure for paying out material aid to the federal state civil servants of the customs bodies of the Russian Federation.

The material aid to the state servant shall be paid out once in a calendar year in the amount of one salary specified for the occupied position against his application as a rule when getting the annual paid leave or in another period on the basis of the written order of the chief of the customs body or the person authorised by him.

The Order also defines other cases for paying out material aid to the civil servant (death of a relative, birth of a child etc.). In other cases, the payment is made on the basis of a motivated application of the civil servant to the chief of the customs body or the person authorised by him after coordination with the boss.

In cases of death of the civil servant, a member of his family or his parents, or other relatives in the absence of them, may get material aid on the basis of the certificate of death in the amount of up to four salaries of the monetary subsistence against their application while presenting appropriate documents confirming the kindred relations.

Calculation of the amount of material aid includes the amounts of the salary for the occupied position of the civil service and the salary for the assigned grade of civil service as of the day of payment.

The chief of the customs body may decide to change the envisaged amount of material aid.

Material aid, except for individual cases, may not be paid out to servants: in the child-care leave until the child is one year and a half to three years of age; as well as those dismissed from the customs bodies that received material aid in the current year and adopted anew in the same year to the customs bodies.

Registered in the Ministry of Justice of the Russian Federation on October 3, 2006. Reg. No. 8348.

Letter of the Federal Customs Service No. 01-06/30987 of September 6, 2006 on the Methodology Recommendations

To improve the efficiency of organisation of work of the customs bodies to reveal violations of the currency legislation of the Russian Federation when fulfilling the functions of agents of currency control, works out the methodology recommendations on the recording and processing of information for the purpose of revealing of violations of the acts of the currency legislation of the Russian Federation and acts of the bodies of currency regulation.

The recommendations specify the procedure of collection, preparation, processing of information and conveying it to the customs bodies of various level, as well as the procedure of keeping of the index of documents of currency control containing information on violations of the currency legislation.

When the customs bodies fill out electronic copies of documents of currency control, they use information on the customs registration and the cost of commodities moved across the customs border of the Russian Federation and information on currency operations between residents and non-residents. The results of analysis of the mentioned information are used to send information on suggested violations of the currency legislation on the monthly basis to the customs offices as orders to check observation of the currency legislation.

The mentioned orders are used by the currency control divisions of the customs body to arrange a check to reveal violations in the sphere of currency legislation. An act of the check is drawn up as a result of the check and a card of the act of check is created. If sufficient information is found showing available violations of the currency legislation of the Russian Federation, officials of the customs bodies initiate the case of administrative violation and create a card of the case of administrative violation. Information on the results of the carried out checks received from the customs bodies is used by the Department of Currency Control of the Federal Customs Service of Russia to generate the summary statistical reports on the currency control implemented by the customs bodies.

Letter of the Federal Customs Service No. 05-11/30866 of September 5, 2006 on the Labelling of Alcoholic Products <br>

Explains individual issues pertaining to the labelling and storage of alcoholic products imported to the territory of the Russian Federation.

According to the Federal Law on the state regulation of production and circulation of ethyl alcohol, alcoholic and alcohol-containing products, excise duty stamps are purchased only by organisations importing alcoholic products. The handing out of excise duty stamps to other parities is possible only on condition of introduction of appropriate changes in the Law.

Decision of the Government of the Russian Federation No. 398 of June 29, 2006 defining the procedure of labelling of alcoholic products requires that the given products be placed in warehouses of owners possessing licensees for the purchase, storage and supplies of alcoholic products or a license for the storage of alcoholic products. The places of location of such warehouses on the territory of the Russian Federation have no restrictions. The owner of the warehouse may include any organisation possessing the above licenses. The transfer of commodities in the property of the organisation storing it is not necessary.

The labelling of alcoholic products may only be done by the organisation importing alcoholic products. Meanwhile, the work is carried out at present to introduce amendments to the above Federal Law to solve the problem of purchase of excise duty stamps by organisations possessing alcoholic products rather than importing it to the Russian Federation.

Letter of the Federal Customs Service No. 18-12/30307 of August 30, 2006 on the Liability of Motor Carriers under Part 3 of Article 16.1 of the Code of Administrative Violations of Russia <br>

Explains individual issues of the liability of motor carriers for reporting incorrect information to the customs body on the number of cargo pieces, their labelling, name, weight and/or volume of commodities arriving to the customs territory of the Russian Federation or leaving it, or for obtaining a permission for the internal customs transit or the termination of it, or for placing commodities in the temporary-storage warehouse by providing faked documents and, similarly, use for these purposes of a faked means of identification or an authentic means of identification pertaining to other commodities and/or transport vehicles (under Part 3 of Article 16.1 of the Code of Administrative Violations of the Russian Federation).

According to the explanations, calling the carrier to account for administrative liability for reporting incorrect information on the qualitative characteristics of the commodity, including those revealed at declaring, if the declared information on the name of commodity, its weight and/or volume, quantity and labelling of cargo pieces is correct, is not legal.

To solve the issue of the carrier liability, the customs body must take account of the actual opportunities with the carrier to implement the right to check the correctness of information on the commodity. If such opportunity is not available (for example, if the cargo is received in containers sealed by the consignor), the carrier must include appropriate clauses in the transportation documents.

Such clauses must be regarded by the customs bodies as a risk of declaring of incorrect information on the commodity moved across the customs border. Availability of such clauses together with other proof may serve as evidence of absence of carrier fault and, therefore, absence of reasons to call him to account.

In such cases, the customs body must take measures to identify the commodity and provide for its preservation by sending them according to established procedure to the customs body of destination for further registration, which does not exclude opportunities of checking of moved commodities in the framework of the customs control.

Decision of the Government of the Russian Federation No. 599 of October 3, 2006 on the Endorsement of the Regulation on the Assigning (Dismissal) of the Head of the Interim Financial Administration Introduced in the Subjects of the Russian Federation, on the Endorsement of the Structure and Payroll, As Well As on the Financial Support of Activities of the Interim Financial Administration and Organisation of Checking (Audit) of the Budgets of Subjects of the Russian Federation



The assigning of the head of the interim financial administration is vested in the Government of the Russian Federation at the presentation of the Minister of Finance after taking the decision to introduce a financial administration in the subject of the Russian Federation. The Decision lists the requirements to the head of the financial administration pertaining to education and experience of professional activities.

Dismissal from the position of the head of the financial administration occurs after expiry of the period of its activities.

The Decision is entered into force from January 1, 2007.

Letter of the Federal Agency for Construction and the Housing and Communal Complex No. SK-4250/02 of October 9, 2006 on the Prices for Design and Survey Works in Construction for the IV Quarter of 2006



In the IV quarter of 2006, the indices of change of the cost of design works in construction are fixed in the amount of 2.16 to the level of basic prices as of January 1, 2001 and 16.67 to the level of basic prices as of January 1, 1995.

The indices of change for survey works are fixed in the amount of 2.24 to the prices as of January 1, 2001 and 25.51 to the prices as of January 1, 1991.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-04-15/170 of September 26, 2006



The works (services) of processing of commodities placed under the customs regime of processing on the customs territory are subject to the value added tax at the rate of 0 percent on condition of submission of the following documents to the tax bodies:

- contract (copy of the contract) of the taxpayer with a foreign or Russian entity to carry out works (render services); - bank excerpt confirming receipts from the foreign or Russian entity buying the works (services) on the taxpayer account in the Russian bank; - copies of transportation, commodity-accompanying and/or other documents confirming the export of commodities outside the customs territory of the Russian Federation (import of commodities to the customs territory of the Russian Federation). Other documents may also include customs documents, including the copies of cargo customs declarations used to register commodities imported to the customs territory of the Russian Federation for processing and products of processing exported from the customs territory of the Russian Federation.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-05-01-03/125 of September 22, 2006



Provides explanations on the procedure of taxation of incomes obtained from the leasing of dwelling space.

The civil legislation associates the need to register a natural person as an independent entrepreneur with activities of a special type carried out by him rather than simply committing onerous transactions. The fact of committing onerous transactions by the citizens is not enough to recognise him an entrepreneur if the committed transactions do not form activities. The presence of entrepreneurial activities in the citizen’s actions is proved, in particular, by the following facts:

- making or buying property to make profit from its use or sale; - keeping records of economic operations pertaining to committed transactions; - interconnection of all transactions committed by the citizens within a certain period of time; - stable connections with sellers, buyers, other contractors.

If there are reasons enough to consider that the above signs are present, the natural person must register as an independent entrepreneur without the forming of the legal entity and pay the tax from appropriate incomes as an independent entrepreneur.

In the absence of the reason to regard the activities of leasing of immovable property as entrepreneurial, it is necessary to pay the tax on the incomes of natural persons from obtained incomes as a natural person not being an independent entrepreneur.

Decision of the Government of the Russian Federation No. 603 of October 6, 2006 on the Licensing of Activities in Production and Sale of Special Gaming Equipment Intended for Gambling Purposes



Defines the procedure of licensing of activities in production and sale of gaming machines with a monetary prize.

The licensing body is the Federal Agency of the Industry. The license is issued for 5 years.

Lists the licence requirements and terms for production and sale of automatic gaming machines. In particular, the candidate (license holder) must be the holder of the copyright for the software used in the gaming machines or contracts of transfer (full or partial) of exclusive (proprietary) rights for such programs.

Besides, the license holder must control compliance of the gaming machines with the endorsed type, as well as must use in the gaming machines the software that does not have undeclared features. Violations of these requirements are qualified as major ones and may entail a revocation of the license.

Order of the Ministry of Defence of the Russian Federation No. 355 of September 6, 2006 on the Procedure and Terms for the Citizens of the Russian Federation Undergoing Contract Military Service to Get Professional Training in One of the Civil Specialists



Defines the procedure and terms for the citizens of the Russian Federation undergoing contract military service to get professional training in one of the civil specialities. This may be done if the total length of the military service in calendar years is five years and more (without the time of study in the military institutions of higher and secondary professional education) on the year of dismissal from the military service when the servicemen reach the limiting age of the military service, when the period the military service expires, because of the health condition or because of organisational measures.

Professional training for servicemen is provided without collection of payment for the study from them while preserving all kinds of subsistence. Professional training may take up to 3 or up to 6 months using the intra-mural or extra-mural studies.

The servicemen are entitled for professional training in only one of the civil specialities and only one educational institution.

Registered in the Ministry of Justice of the Russian Federation on October 6, 2006. Reg. No. 8363.

Direction of the Central Bank of Russia No. 1720-U of September 13, 2006 on the Amendments to the Direction of the Bank of Russia No. 1548-U of February 7, 2005 on the Procedure of Opening (Closing) and Organisation of Work of the Banks (Branchs) Mobile Station of Cash Operations



Refines the requirements to the content of internal documents of the bank (branch) on the mobile station of cash operations (typical regulation). In particular, such documents must define the conduct of the bank (branch) employees in cases of unauthorised access to the room of cash worker in the motor vehicle.

Defines the actions of the worker of the mobile station of cash operations at the end of the work. Such worker must verify the residues of cash and other values with amounts indicated in cash documents, draw up the report and hand in to the cash department of the bank (branch, internal structural division) the cash, other values, cash documents, report, as well as the seal and the key from the room of the cash worker in the motor vehicle.

The Direction 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 October 6, 2006. Reg. No. 8362.

Decision of the Government of the Russian Federation No. 604 of October 6, 2006 on the Endorsement of the Regulation on the Control of Fulfilment by the Authorised Bodies of Foreign States of Obligations of Use for Designated Purposes of Individual Types of Products of Military Destination Supplied by the Russian Federation <br>

Defines the procedure of actions of the federal bodies of executive power, Russian subjects of the military and technical cooperation in organisation together with organisations producing products of military destination of control of fulfilment by the authorised bodies of foreign states of obligations of use of individual types of products of military destination supplied from the Russian Federation.

The mentioned control is vested in the Ministry of Defence of Russia, Ministry of Foreign Affairs of Russia, Federal Security Service of Russia, Foreign Intelligence Service of Russia and the Federal Service of Military and Technical Cooperation of Russia by monitoring the presence and use for designated purposes by the authorised bodies of foreign states of individual types of products.

Information Letter of the Central Bank of Russia No. 10 of September 29, 2006 "Summary of the Practice of Application of the Federal Law on the Combating of Legalisation (Laundering) of Incomes Obtained in a Criminal Way and Financing of Terrorism and the Acts of the Bank of Russia Adopted in Pursuance of It" <br>

Explains individual issues of application of the "anti-laundering" legislation in the purchase and sale of foreign currencies and introduction of qualification requirements to the special officials in charge of observation of the rules of internal control in the credit organisation.

The beginning of the operation of purchase or sale of foreign currencies in cash carried out by the natural person for the amount not greater than Rbl 15,000 or its currency equivalent, when the worker of the organisation carrying out operations with monetary resources or another property does not suspect that the given operation is carried out to legalise (launder) incomes obtained in a criminal way or to finance terrorism, is the handing over of the foreign currency in cash by the natural person to the cash worker of the exchange office.

The head of the structural division of the credit organisation that does not carry out bank operations directly who has a higher legal or economic education and experience of work in the mentioned position for more than one year shall meet the qualification requirements if the analysis of his official instructions and other internal documents of the credit organisation defining the sphere of reference of the given person and the functions of the structural division where the mentioned person works permits to qualify them as activities pertaining to bank operations.

Letter of the Central Bank of Russia No. 127-T of October 3, 2006 on the Rouble Equivalents of the Figures Envisaged in the Direction of the Bank of Russia No. 1346-U of December 1, 2003 <br>

In the IV quarter of 2006, the rouble equivalent of the registered capital for created banks, for operating credit organisations requesting the general license, as well as for non-bank credit organisations requesting the status of a bank, must make at least Rbl 170.142 million.

For created non-bank credit organisations, the minimum rouble equivalent of the registered capital makes at least Rbl 17,014.2 thousand.

Order of the Federal Service of Enforcement in the Sphere of Protection of Consumer Rights and Human Well-Being No. 330 of October 5, 2006 on the State Registration of Dietary Products (Bread and Dietary and Diabetic Bakery Items) by the Territorial Bodies of the Federal Service of Enforcement in the Sphere of Protection of Consumer Rights and Human Well-Being <br>

From November 1, 2006, the territorial bodies of the Federal Service of Enforcement in the Sphere of Protection of Consumer Rights and Human Well-Being are empowered with authority of the state registration of dietary products (bread and dietary and diabetic bakery items). The expert evaluation of the mentioned products must be provided by the federal public health institutions - hygiene and epidemiological centres.

Certificates of the state registration of products issued by the territorial bodies of the Federal Service of Enforcement in the Sphere of Protection of Consumer Rights and Human Well-Being are valid on the whole territory of the Russian Federation.

Registered in the Ministry of Justice of the Russian Federation on October 10, 2006. Reg. No. 8365.

Order of the Federal Security Service of the Russian Federation No. 205 of May 16, 2006 on the Endorsement of the Instruction on the Organisation in the Bodies of the Federal Security Service of Acceptance, Registration and Checking of Reports of Crimes and Other Information on Crimes and Events Jeopardising Personal and Public Security <br>

The new Instruction has been worked out pursuant to the adoption of the Typical Regulation on the uniform procedure of organisation of acceptance, registration and checking of reports of crimes endorsed by the Order of the Prosecutor General of the Russian Federation, Ministry of Internal Affairs of Russia, Ministry of Emergency Situations of Russia, Ministry of Justice of Russia, Federal Security Service of Russia, Ministry of Economic Development of Russia, Federal Service of Russia for Control over Circulation of Narcotics No. 39/1070/1021/253/780/353/399 of December 29, 2005. The Instruction regulates activities of the bodies of the Federal Security Service in organisation of acceptance, registration and checking of reports of crimes and other information on crimes and events jeopardising personal and public security. The Order provides new forms of documents intended for registration of reports of crimes received in the security bodies.

Registered in the Ministry of Justice of the Russian Federation on October 9, 2006. Reg. No. 8364.

Order of the Ministry of Internal Affairs of the Russian Federation, Ministry of the Industry and Power Supplies of the Russian Federation and the Federal Customs Service No. 659/192/804 of August 24, 2006 on the Amendments to the Regulation on the Certificates of Transport Vehicles and Certificates of Chassis of Transport Vehicles Endorsed by the Order of the Ministry of Internal Affairs of Russia, Ministry of the Industry and Power Supplies of Russia, Ministry of Economic Development of Russia No. 496/192/134 of June 23, 2005 <br>

The Regulation on the certificates of transport vehicles and certificates of chassis of transport vehicles endorsed by the Order of the Ministry of Internal Affairs of Russia, Ministry of the Industry and Power Supplies of Russia, Ministry of Economic Development of Russia No. 496/192/134 of June 23, 2005 now includes provisions defining the procedure of filling of line 13 "Ecology Class" of the certificate of the transport vehicle.

Line "Ecology Class" shall be filled out by the customs bodies when issuing the certificates on the basis of information available in compliance certificates, "Approved Types of Transport Vehicles" and the "Statements of Compliance of Chassis with Specified Requirements".

The mentioned information shall be accumulated in the Federal Agency for Technical Regulation and Metrology and handed over once a month to the Traffic Safety Department of the Ministry of Internal Affairs of Russia and the Federal Customs Service of Russia. The information shall be placed on the official sites of the Federal Agency for Technical Regulation and Metrology and the Federal Customs Service of Russia.

If it is impossible of determine the ecology class of the transport vehicle (chassis) using the above procedure, as well as when the class correctness is challenged by the owner of the transport vehicle (chassis) or the person carrying out customs registration on behalf of the owner, class determination is provided by the customs bodies on the basis of compliance certificates issued by the bodies of certification accredited according to established procedure.

In case of incompliance of the ecology class of the transport vehicle (chassis) with the requirements of the Technical Regulation "On the Requirements to Emissions of Automotive Equipment Released for Circulation on the Territory of the Russian Federation, Hazardous (Polluting) Substances" endorsed by the Decision of the Government of the Russian Federation No. 609 of October 12, 2005, the certificate of the transport vehicle is not handed out.

The initial registration of the transport vehicle is vested in the State Traffic Inspection and permitted only in the presence of the record of the ecology class in the certificate of the transport vehicle.

The Order provides the list of information contained in the compliance certificates, "Approved Types of Transport Vehicles" and the "Statements of Chassis Compliance with Specified Requirements".

Registered in the Ministry of Justice of the Russian Federation on October 3, 2006. Reg. No. 8357.

Information Letter of the Presidium of the Higher Arbitration Court of the Russian Federation No. 113 of September 19, 2006 on the Application of Article 163 of the Code of Arbitration Procedures of the Russian Federation <br>

The Presidium of the Higher Arbitration Court of the Russian Federation explains the particulars of application of the provisions of Article 163 of the Code of Arbitration Procedures of the Russian Federation on the interval in the court session. It emphasised, in particular, the procedure of notification of the process participants of the interval for a short period of time, as well as of the one when the court session is transferred to another date.

In the first case, the court is not obliged to notify of the interval, as well as of the time and place of continuation of the court session for the persons that are considered to be notified appropriately by virtue of Article 123 of the Code of Arbitration Procedures of the Russian Federation and did not report before the interval was announced. If the court hearing is transferred to another day, information of its continuation must be place by the court on its official site in the Internet or the bulletin board in the court building (public announcement).

In this connection, it is recommended to indicate in the ruling of acceptance of the lawsuit for processing opportunities of obtaining information on the processed case on the court official site. The failure on the part of the court to notify of the interval the persons that were not present at the court session may not serve as grounds for unconditional revocation of the court ruling if the interval was announced publicly, and the person that was not notified officially actually had opportunities to find out about the time and place of continuation of the court session.

Letter of the Federal Agency for Construction and the Housing and Communal Complex No. SK-4312/02 of October 12, 2006 on the Indices of Change of the Estimated Cost in the IV Quarter of 2006



Works out the indices of change of the estimated cost of construction and installation works and by items of expenses for the IV quarter of 2006 by the subjects of the Russian Federation for the objects financed at the expense of resources of the federal budget.

The mentioned indices have been worked out on the basis of reported information of the regional bodies of price forming in construction for the III quarter of 2006 taking into account the forecasted inflation for the IV quarter of 2006. They include a full set of construction and installation works and are intended for major estimates of the cost of construction using the basic indices method, preparation of tender documentation and general economic estimates in the investment sphere.

The indices for construction and installation works include overhead expenses and profit estimates. Overhead expenses are assumed with a reduction coefficient of 0.94 taking into account the reduction from January 1, 2005 of the rate of the uniform social tax.

Letter of the Ministry of Finance of the Russian Federation No. 03-06-01-02/35 of September 6, 2006 on the Property Tax from Organisations



The tax bodies are recommended to sew by appealing to court the taxpayers avoiding the state registration of the rights for the objects of immovable property to make them pay the tax on the property of organisations and apply to them the measures of liability envisaged in the Tax Code.

If the object of capital construction where the initial cost is formed as of the date of transfer of the documents of state registration of the proprietary rights is handed over for operation using the act of acceptance, and the organisation actually carried out economic activities on the object, the given object of immovable property, according to the Ministry of Finance, possesses all features of fixed assets and is subject to the property tax from organisations. The issue of inclusion of such object in Account 01 “Fixed Assets” and in the objects of taxation for the property tax from organisations may not depend on the taxpayer will and is stipulated by the economic essence of the object.

Letter of the Federal Service of Labour and Employment No. 1551-6 of September 5, 2006



Explains individual issues pertaining to employee dismissal at own will.

Employee dismissal at own will is permitted also during the period of his leave and temporary disability. Thus, the date of dismissal may occur in the mentioned periods. The prohibition to dismiss an employee in the above periods pertains to only the dismissal at the initiative of the employer.

The Labour Code of the Russian Federation does not prevent from submission of the application for the dismissal at own will in any form, including the one sent by mail (for example, by registered mail).

The dismissal may occur upon expiry of the time limits specified in Part 1 of Article 80 of the Labour Code of the Russian Federation (two weeks) or within the time limits indicated in the employee application.

Ruling of the Constitutional Court of the Russian Federation No. 267-O of July 12, 2006 on the Appeal of the Open-Type Joint-Stock Company Vostkosibelektrosetstroy against Violation of the Constitutional Rights and Freedoms by Provisions of Parts 3 and 4 of Article 88, Item 1 of Article 101 of the Tax Code of the Russian Federation and Part 4 of Article 200 of the Code of Arbitration Procedures of the Russian Federation



The Constitutional Court revealed the constitutional and legal sense if individual norms of the Tax Code of the Russian Federation and the Code of Arbitration Procedures of the Russian Federation which is obligatory to all and excludes any other interpretation of the mentioned norms in the judicial practice.

The interconnected provisions of Parts 3 and 4 of Article 88 and Item 1 of Article 101 of the Tax Code of the Russian Federation suggest that the tax body carrying out a cameral tax check must demand from the taxpayer, if it reveals tax violations, explanations and documents confirming correctness of calculation and timely payment of taxes and notify it of the date and place of examination of the materials of the check by the head (deputy head) of the tax body. Part 4 of Article 200 of the Code of Arbitration Procedures of the Russian Federation suggests that the taxpayer may present, and the arbitration courts must examine, the documents serving as grounds for obtaining a tax exemption regardless of whether or not these documents were demanded and investigated by the tax body when solving the issue of taxpayer liabilities and opportunities of tax exemptions.

Ruling of the Constitutional Court of the Russian Federation No. 266-O of July 12, 2006 on the Appeal of the Closed-Type Joint-Stock Company Production of Foodstuffs against Violation of the Constitutional Rights and Freedoms by Individual Provisions of Articles 88, 171, 172 and 176 of the Tax Code of the Russian Federation



The Constitutional Court revealed the constitutional and legal sense of individual provisions of the Tax Code of the Russian Federation excluding any other their interpretation in the judicial practice.

Provisions of Article 88, Items 1 and 2 of Article 171, Item 1 of Article 172 and Items 1-3 of Article 176 of the Tax Code of the Russian Federation do not oblige the taxpayer to present together with the tax declaration (and/or application to return VAT amounts from the federal budget if the amounts of tax exemptions exceed the total amount of tax) the documents confirming the correctness of application of the tax exemption, whereas the tax body may demand from the taxpayer the documents necessary and sufficient to check the correctness of application of tax exemptions.

Decision of the Government of the Russian Federation No. 611 of October 12, 2006 on the Procedure of Allocation and Use of Alienation and Safety Zones of Railways



To form the alienation zone, the interested organisation prepares a land-planning project (project of borderlines of land plots located within the boundaries of the alienation zone). The boundaries of the alienation zone are specified taking into account the norms of alienation of land plots necessary for the alienation zone to be endorsed by the Ministry of Transport of Russia.

The interested organisation must provide for a safe regime of travel and operation of the railway transport within the boundaries of the alienation zone. It is not permitted to locate capital buildings and structures, perennial plants and other objects impairing visibility of the railway track and creating hazards for the traffic safety and the safety of operation of the railway transport. However, it is permitted to place advertising material on the slopes, permanent fences, structures, devices and other objects of the railway transport.

Decision of the Government of the Russian Federation No. 605 of October 6, 2006 on the Federal Targeted Program Development of the Nuclear Power-Supply Complex of Russia for the Years 2007-2010 and Until 2015



The main goals of the program are: implementation of accelerated development of the nuclear power-supply complex to provide for the geopolitical interests of the country and the power-supply security of the Russian Federation by putting into operation new typical series power supply blocks of nuclear power stations with the total introduced power rating of at least 2 GW per year, promotion of the products (works, services) of Russian organisations of the nuclear fuel cycle to the world markets and switchover to construction and operations of nuclear power stations abroad the Russian Federation.

The list of the program measures is subdivided into four areas:

1. Development of Capacities of Nuclear Power Stations(envisages construction of additional power units of high readiness and prolongation of the time limits of operation of available power units of nuclear power stations; construction and putting in operation of new power units of the nuclear power stations; implementation of the project of the series power unit with a pressurised water reactor type);

2. Development and Reconstruction of Production Capacities of Organisations of the Nuclear Fuel Cycle" (development of the deposits of natural uranium to provide for the work of the mining organisations of the nuclear power industry, reconstruction and construction of mining objects; modernisation and development of separation and freeze-drying production facilities; development of production capacities for making nuclear fuel);

3. Development of Capacities for Handling Spent Nuclear Fuel and Radio Active Waste at Nuclear Power Stations and Preparation for Withdrawal from Operation of Power Units of Nuclear Power Stations (providing for construction of new objects for handling radio active waste and spent nuclear fuel at operating nuclear power stations; complex of works to prolong the time limits of operation of power units and withdrawal from operation of the first generation power units);

4. Switching over to Innovation Technologies of Development of the Nuclear Power Industry (construction of the power unit with BN-800 reactor at the Beloyarskaya Nuclear Power Station, providing MOX-fuel for the BN-800 reactor).

Expected final results of implementation of the program include: putting in operation of 10 new power units of nuclear power stations with the total introduced power rating of at least 9.8 GW; the total installed power rating of nuclear power stations will make 33 GW; the share of electric power produced at the nuclear power stations will make 18.6% of the total volume of produced electric power in the Russian Federation; reduction of operating expenses of organisations operating nuclear power stations per kilowatt-hour will make 80% to the level of 2006; reduction of specific capital investments per 1 kW of introduced capacity at construction of power units of nuclear power stations will make 90% to the level of 2007.

Implementation of the program is arranged in 2 stages: the first one years 2007-2010; the second one – years 2011-2015.

The financing of the program shall include Rbl 1,471.4 billion, including: resources of the federal budget allocated for capital investments – Rbl 674.8 billion; resources of organisations of the nuclear power industry Rbl 796.6 billion.

Decision of the Government of the Russian Federation No. 595 of October 2, 2006 on the Federal Targeted Program Development of the State Statistics in Russia in the Years 2007-2011



Endorses the federal targeted program Development of State Statistics in Russia in the Years 2007-2011 aimed at providing for qualitative changes in the development of the statistical system through further technological modernisation, introduction of new methods of planning and management. Envisages providing for transparency and openness of the methods of calculation of statistical figures, as well as a wider access for the interested users to the official statistical information.

The total volume of financing of the program makes Rbl 5.271 billion. The program is intended for the years 2007-2011 and will be implemented in 4 stages. The resources will be allocated for capital investments in the amount of Rbl 1,998.8 million, for scientific research and design works – in the amount of Rbl 315 million.

Program implementation will permit to increase from 45% to 90% the coverage with statistical monitoring of the figures of activities of the subjects of budget planning, increase from 82% to 90% the mastering of international standards, increase to 100% the number of agencies providing operative access to their statistical resources over-public use networks, increase by 20% the volume of statistical information available for unrestricted access.

Federal Constitutional Law No. 4-FKZ of October 16, 2006 on the Amendment to Article 32 of the Federal Constitutional Law on the Human Rights Commissioner in the Russian Federation



The amendments refine the authority of the human rights commissioner in the Russian Federation pursuant to the adoption of the Federal Law on the parliamentary investigation. In cases of a major or large-scale violation of the rights and freedoms of man and citizen guaranteed by the Constitution, the commissioner may apply to the State Duma to create the parliamentary commission to investigate the facts and circumstances having caused the parliamentary investigation.

Besides, he is empowered with the right to participate in the session of the chambers of the Federal Assembly when they endorse the final report of the mentioned commission, as well as the right to appeal to the State Duma with a proposal to arrange parliamentary hearings of the facts of violation of the rights and freedoms of citizens and participate in these hearings.

Federal Law No. 161-FZ of October 16, 2006 on the Amendments to Article 30 of the Federal Law on the Higher and Post-Graduate Professional Education



The amount of mark-ups to scientific and pedagogical personnel of higher educational institutions for the scientific grade of the candidate of sciences and the doctor of sciences is increased to Rbl 3,000 and Rbl 7,000 respectively. Earlier, the mentioned amounts made Rbl 900 and Rbl 1,500 .

The Federal Law is entered into force from November 1, 2006.

Federal Law No. 160-FZ of October 16, 2006 on the Amendments to the Legislative Acts of the Russian Federation and on Invalidation of Individual Provisions of Legislative Acts of the Russian Federation Pursuant to the Adoption of the Federal Law on Advertising



Bring the provisions of the legislative acts of the Russian Federation regulating relations in the sphere of advertising in compliance with the Federal Law No. 38-FZ of March 13, 2006 on advertising.

Amendments pertaining to regulation of relations in the sphere of advertising are introduced in the Laws of the Russian Federation on mass media and on the protection of consumer rights, the Land Code, Tax Code, Budget Code, Code of Administrative Violations, Federal Law on narcotic drugs and psychotropic substances and a number of other legislative acts of the Russian Federation.

The Federal Law is entered into force ten days after the day of its official publication with exceptions.

Ruling of the Constitutional Court of the Russian Federation No. 261-O of July 12, 2006 to the Requests of the Duma of the Taymyr (Dolgano-Nenets) Autonomous District and the Norilsk City Court of the Krasnoyarsk Territory to Check the Constitutionality of the Provision of Paragraph 2 of Item 8 of the Rules of Calculation of the Periods of Work Permitting to Get an Early Labour Old-Age Pension under Articles 27 and 28 of the Federal Law on Labour Pensions in the Russian Federation, As Well As on the Appeal of Citizens A.V.Gorodchikov, M.N.Grechko and Other Against Violation of Their Constitutional Rights by the Same Provision



The Constitutional Court of the Russian Federation recognised as unconstitutional the provision of Paragraph 2 of Item 8 of the rules of calculation of the periods of work permitting to get an early labour old-age pension under Articles 27 and 28 of the Federal Law on labour pensions in the Russian Federation endorsed by the Decision of the Government of the Russian Federation No. 516 of July 11, 2002 where it does not include the leisure intervals in rotational schemes of work in the length of work in the regions of the Far North and localities of similar status necessary for an early assignment of the labour old-age pension.

The Labour Code of the Russian Federation does not regard the leisure intervals in rotational schemes of work as a separate type of leisure (Article 107). The leisure intervals in rotational schemes of work is actually a sum of the daily and weekly leisure (unused and accumulated during the rotational scheme of work) that, because of the specific nature of the given type of work, is granted at the end of the period of rotation.

According to Article 300 of the Labour Code of the Russian Federation, the rotational scheme of work implies a summation of the working time per month, quarter or another longer period, however, not greater than one year. The recorded period includes both the whole of the working time, time of travel from the place of location of the employer or the point of assembly to the place of work and back and the time of leisure for the given calendar period of time, including the leisure intervals. The total length of the working time for the recorded period must not be greater than the normal working hours specified in the Labour Code of the Russian Federation.

Hence, if the actually spent working hours in the recorded period for the persons working in the regions of the Far North and localities of similar status on the rotational basis is not less than the normal working hours specified in the Labour Code of the Russian Federation (Article 91), the leisure intervals (overtime work) must not be excluded from the total calendar period forming the length of work permitting to get an early labour pension similar to the days of leisure that are not excluded from the calendar period forming the length of work for the citizens working in any other regime in the regions of the Far North and localities of similar status.

This was the logic of the legislator who did not exclude the leisure intervals from the insured length of work envisaged in Articles 10-13 of the Federal Law on labour pensions in the Russian Federation for assigning the labour old-age, disability and lost-breadwinner pension. Similarly, the length of work of employees with a special nature of work permitting an early assignment of the pension includes both the period of work and the period of leisure.

Order of the Federal Service for Tariff Rates No. 199-e/b of September 15, 2006 on the Endorsement of the Methodology Directions for the Calculation of Tariff Rates for Electric Power under the Contracts of Purchase and Sale at Regulated Tariff Rates (Prices) at the Wholesale Market



The endorsed Methodology Directions for the calculation of tariff rates for electric power under the contracts of purchase and sale at regulated tariff rates (prices) at the wholesale market define the procedure of calculation by the Federal Service for Tariff Rates of prices for electric power for suppliers engaged in power supplies under the contracts of purchase and sale at regulated tariff rates (prices) at the wholesale market.

The Federal Service for Tariff Rates shall specify in each period of regulation indicative prices for electric power to form regulated contracts concluded in the appropriate period of regulation. The indicative prices are differentiated by the subjects of the Russian Federation proceeding from the particulars of production of electric and thermal power in the appropriate subjects of the Russian Federation.

For suppliers of electric power, dual tariff rates are introduced that include one rate for 1 kilowatt-hour of electric power and the rate for 1 kilowatt-hour of introduced generating capacity. The tariff rates are calculated proceeding from the need to compensate to the supplier expenses pertaining to production of electric power and to support economically substantiated profit.

The Methodology Directions specify the procedure of calculation of expenses of suppliers and assessment of their economic substantiation, the formula of determination of the necessary gross receipts for the coverage of economically substantiated expenses, methods of calculation of tariff rates for electric power under the contracts of purchase and sale at regulated tariff rates (prices) at the wholesale market.

Registered in the Ministry of Justice of the Russian Federation on October 13, 2006. Reg. No. 8383.

Order of the Ministry of Internal Affairs of the Russian Federation, Ministry of Foreign Affairs of the Russian Federation and the Federal Security Service of the Russian Federation No. 785/14133/461 of October 6, 2006 on the Endorsement of the Instruction on the Procedure of Drawing up and Issue of the Passport of the Citizen of the Russian Federation, Diplomatic Passport and the Service Passport Being the Main Personal Identification Documents of the Citizen of the Russian Federation Abroad and Containing Electronic Media



The Instruction defines the procedure of drawing up and issue of the passport of the citizen of the Russian Federation, diplomatic passport and the service passport being the main personal identification documents of the citizen of the Russian Federation abroad and containing electronic media.

The Instruction has been worked out in execution of the Decree of the President of the Russian Federation No. 1222 of October 19, 2005.

The drawing up and issue of the passport containing electronic media is vested in the Ministry of Foreign Affairs of Russia, Federal Migration Service of Russia, their territorial bodies on the territories of the Kaliningrad Province, diplomatic representations and consular institutions of the Russian Federation in the Federal Republic of Germany and the Lithuanian Republic. The diplomatic passport and the service passport containing electronic medium are drawn up and issued by the Ministry of Foreign Affairs of Russia.

The new generation passport is drawn up for 5 years (except for the specific cases) to the written application of the citizen having reached 18 years of age submitted personally or through a legal representative. The underage or a citizen recognised as incapacitated according to established procedure shall get the passport to the written application of one of the parents, adoptive parents, trustees (legal representatives). The Order specifies the list of documents submitted together with the application.

In cases envisaged in the Federal Law on the procedure of exit from the Russian Federation and entry in the Russian Federation, a request is submitted by the organisation sending the citizen abroad.

When drawing up new generation passports, servicemen shall attach in addition the permission of the commander. Males 18 to 27 years of age shall present also the military card with a stamp of the end of the draft military service or the appropriate certificate of the military commissar at the place of residence.

The time limit for the drawing up of the new generation passport may not be greater than one month from the date of submission of all necessary documents and photographs. Prolongation of this time limit is permitted in exclusive cases.

The drawing up of the new generation passport is not permitted without withdrawal of the earlier issued new generation passport or another passport of personal identification abroad if it has not expired or is not invalid.

The passport is handed out personally to the citizen (legal representative) after the holder signs it. An appropriate stamp is put in the internal passport of the holder at issue, as well as in the certificate of birth of the child under 14 years of age holding the new generation passport.

The Order also defines the particulars of the procedure of drawing up of the new generation passports in cases of exit from the Russian Federation, describes the particulars of drawing up and issue of the passport in the Ministry of Foreign Affairs of Russia, its territorial bodies, diplomatic representations and consular institutions, regulates the procedure of interaction of the authorised bodies with the bodies of the Federal Security Service, arranging checks to applications, specifies the procedure of registration and disposal of the new generation passports.

Provides the forms of appropriate applications to obtain the passport, certificate to obtain the passport, list of requirements to the photographs, as well as a specimen of the stamp of issue of the new generation passport.

Registered in the Ministry of Justice of the Russian Federation on October 13, 2006. Reg. No. 8378.

Direction of the Central Bank of Russia No. 1721-U of September 14, 2006 on the Amendments to the Regulation of the Bank of Russia No. 262-P of August 19, 2004 on the Identification of Clients and Beneficiaries by Credit Organisations for the Purpose of Combating Legalisation (Laundering) of Incomes Obtained in a Criminal Way and Financing of Terrorism



Pursuant to the introduction of amendments to the Federal Law on the combating of legalisation (laundering) of incomes obtained in a criminal way and financing of terrorism excluding for credit organisations the duty to identify the client when accepting payments from natural persons up to Rbl 30,000, as well as lifting the duty to identify the natural person buying or selling foreign currencies for less than Rbl 15,000, appropriate changes are introduced in the Regulation of the Bank of Russia No. 262-P of August 19, 2004. Also introduces a provision recommending the credit organisation, if it is impossible to finish the identification of the beneficiary because of the failure to present necessary documents and information on the part of the client, to send a report of it to the authorised body indicating all information on the beneficiary available with the credit organisation as of the date of sending of the report.

The Direction 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 October 11, 2006. Reg. No. 8374.

Order of the Federal Service for Tariff Rates No. 189-s/l of September 5, 2006 on the Endorsement of the Procedure of Calculation of Tariff Rates and Pricing Plans for the Services of Local Telephone Communication



The procedure of calculation of tariff rates and pricing plans for the services of local telephone communication is intended for use of the federal body of executive power in charge of regulation of natural monopolies and communication operators being the subjects of natural monopolies in the sphere of communication in the calculation of tariff rates and pricing plans for the regulated services of local telephone communication.

The pricing plan is implied to be the multitude of pricing conditions offered by the communication operator for the use of one or several services of telephone communication.

Calculation of tariff rates (pricing plans) implies bringing them to the level of economically substantiated expenses and reimbursement of the normative profit taking into account the limiting change of the level of tariff rates for the services of local telephone communication specified by the Government of the Russian Federation.

Calculation of economically substantiated expenses and normative profit must be done in compliance with the method of calculation endorsed by the Order of the Federal Service for Tariff Rates of Russia No. 122-s/l of June 9, 2006 on the basis of information obtained from separate accounting of expenses of the communication operator.

The tariff rate for the local telephone connections must be at the level of economically substantiated expenses taking into account the normative profit.

Tariff rates (pricing plans) for the services of telephone communication may be specified separately for legal entities, citizens using the services of telephone communication for personal, family and household needs, as well as the citizens using the services of telephone communication for other needs. Differentiated tariff rates may be fixed for the same communication services. The pricing plan may also envisage differentiated tariff rates depending on the time of day, days of the week, selection and volume of rendered services.

The Order defines the list of obligatory pricing plans offered by the communication operator to user citizens in the presence of technical opportunities of recording of the length of local telephone connections on the pay-by-the-time basis. The list envisages: a pricing plan with a pay-by-the-time system, pricing plan with a user fee system envisaging unrestricted volume of local telephone connections, as well as the pricing plan with a combined system of payment.

The regulatory body shall specify for the communication operator on the obligatory basis a single pricing plan for the services of local telephone communication for legal entity users and citizens using the services for the needs other than personal, family, household ones etc. not pertaining to entrepreneurial activities. Apart from the obligatory pricing plans, the regulatory body may introduce, to the request of the communication operator, also other pricing plans for the services of local telephone communication.

There is a prohibition to increase (decrease) communication operator incomes and, correspondingly, total consumer expenses because of the introduction of obligatory tariff rates. The services are defined that are not included in the volume (length) of local telephone connections.

Calculation of tariff rates and pricing plans for the local telephone connections is done on the basis of information of the reporting period (quarter, six months, nine months, year).

The regulatory body provides for the state regulation of tariff rates for the services of local telephone communication: providing access to the network regardless of the type of user line (wired or radio line) of the network of fixed telephone communication; providing the user line for permanent use regardless of its type; providing local telephone connections to the user of the network of fixed telephone communication for transfer of voice information, fax messages and data (except for the coin-operated phones).

The Order defines the procedure of calculation of tariff rates for each of the mentioned services.

Registered in the Ministry of Justice of the Russian Federation on October 11, 2006. Reg. No. 8372.

Order of the Ministry of Regional Development of the Russian Federation No. 108 of September 28, 2006 on the Average Market Cost of 1 Square Meter of Total Dwelling Space by the Subjects of the Russian Federation for the IV Quarter of 2006



Endorses the average market cost of 1 square meter of total dwelling space (in roubles) by the subjects of the Russian Federation for the IV quarter of 2006. As compared to the III quarter of 2006, the average market cost of the square meter of dwelling space has increased practically in all regions. Thus, in Moscow it amounted to Rbl 39,650 (as compared to Rbl 29,600 in the III quarter), in St.Petersburg, Rbl 21,500 (in the III quarter, Rbl 21,200), in the Nizhny Novgorod Province, Rbl 16,050 (in the III quarter, Rbl 13,650), in the Murmansk Province, Rbl 16,000 (as compared to Rbl 13,000 in the III quarter).

The average market cost of the square meter of dwelling space is applied for the calculation of the amount of subsidies for the purchase of dwelling space allocated from the federal budget to dismissed servicemen and employees of the law-enforcement bodies, citizens having been exposed to radiation, forced migrants, citizens leaving (having left) the regions of the Far North and localities of similar status.

Registered in the Ministry of Justice of the Russian Federation on October 11, 2006. Reg. No. 8369.

Direction of the Central Bank of Russia No. 1728-U of September 27, 2006 on the Amendments to the Regulation of the Bank of Russia No. 255-P of March 29, 2004 on the Obligatory Reserves of Credit Organisations



Introduces amendments to the procedure of depositing of obligatory reserves by credit organisations in the Bank of Russia pertaining to calculation of obligatory reserves by major credit organisations with a wide network of divisions.

Major credit organisations with a wide network of divisions are permitted to equalise the obligatory reserves. The period of equalisation for the mentioned credit organisations is the one from the first of the second month following the reported one to the first of the third month following the reported one inclusive.

The major credit organisation with a wide network of divisions shall submit the estimate on the forth working day of the second month following the reported one.

According to the introduced amendments, the amount of obligations of the credit organisation in issued securities is reduced by the amount of investments of the credit organisation in obligations (including the promissory notes) of credit organisations and the bonds of the Bank of Russia – designation code 520514. A reduction is permitted within the amount of obligations of the credit organisation in issued securities.

The Direction is entered into force from December 1, 2006 and applies beginning with the estimate of the amount of obligatory reserves for the reporting period from December 1, 2006 to January 1, 2007.

Registered in the Ministry of Justice of the Russian Federation on October 11, 2006. Reg. No. 8368.

Order of the Federal Service for Financial Markets No. 06-68/pz-n of June 22, 2006 on the Endorsement of the Regulation on the Activities in Organisation of Trade at the Securities Market



Specifies general requirements to activities in organisation of trade at the securities market.

In addition to quotation lists A, B and C, introduces also quotation list I including only stocks meeting a number of requirements and terms. Thus, the board of directors of the issuer must include at least one member of the board of directors meeting special requirements.

Issuer stocks shall be placed for the first time by an open subscription through a stock exchange or a broker rendering the services of their placement, or are offered for the first time for public circulation through a stock exchange or a broker for transactions of stocks alienation. The number of placed stocks (offered for public circulation) must be at least 10% of the total amount of the issuer ordinary stocks.

Capitalisation of stocks of the given type according to the authorised financial advisor must be at least Rbl 60 million for inclusion in the quotation list of ordinary stocks, and at least Rbl 25 million for inclusion in the quotation list of preference stocks. The authorised financial advisor must present to the stock exchange a statement with a substantiation of the assessment of the capitalisation of stocks.

Inclusion of stocks in quotation list I may be done within the time limits not greater than 5 years from the date of inclusion of the issuer stocks by the stock exchange in the appropriate quotation list.

The Order also specifies the permission and circulation procedure for exchange-traded bonds.

Registered in the Ministry of Justice of the Russian Federation on October 10, 2006. Reg. No. 8366.

Decision of the Plenum of the Higher Arbitration Court of the Russian Federation No. 53 of October 12, 2006 on the Assessment by Arbitration Courts of the Reasons of Obtaining of Tax Benefits by the Taxpayer

The Plenum of the Higher Arbitration Court of the Russian Federation explains, for the purpose of resolving of tax disputes, which circumstances may certify or, on the contrary, not certify the fact of obtaining unreasonable tax benefits by the taxpayer. The tax benefit is implied to be a reduced amount of tax duty because, in particular, of reduction of the taxable base, obtaining a tax exemption, application of a lower tax rate, as well as obtaining the right for a return (offsetting) or reimbursement of the tax from the budget.

The lack of substantiation of the tax benefit may be certified, in particular, by the following circumstances:

impossibility of implementation by the taxpayer of the mentioned operations taking into account the time, place of location of the property or the volume of material resources economically necessary for production of commodities, carrying out works or rendering services;

absence of necessary conditions to reach the results of appropriate economic activities because of the absence of managerial or technical personnel, fixed assets, production capacities, warehouses, transport vehicles;

registration for taxation purposes of only those economic operations that are directly associated with the tax benefit if the given type of activities requires also other economic operations;

committing operations with commodities that have not been produced or could not be produced in the amount indicated by the taxpayer in the accounting documents.

However, it is necessary to keep in mind that individual circumstances may not serve as grounds to recognise the tax benefit unreasonable. Among them the Higher Arbitration Court emphasised:

creation of the organisation shortly before committing the economic operation;

interdependence of participants of transactions;

erratic nature of economic operations;

violations of tax legislation in the past;

carrying out a single operation;

carrying out operation at other than the place of location of the taxpayer;

making payments through the same bank;

transit payments between participants of interconnected economic operations;

use of intermediaries in economic operations.

Meanwhile, all these circumstances in aggregate and if interconnected with other circumstances may be qualified as certifying the fact of obtaining an unreasonable tax benefit by the taxpayer.

Recognising the tax benefit as unreasonable by the court implies a refusal to satisfy the taxpayer claims pertaining to it. In this case, one should keep in mind that recognising the tax benefit as unreasonable must not affect other rights of the taxpayer envisaged in the tax legislation.

Decision of the Government of the Russian Federation No. 605 of October 6, 2006 on the Federal Targeted Program "Development of the Nuclear Power-Supply Complex of Russia for the Years 2007-2010 and Until 2015"

The main goals of the program are: implementation of accelerated development of the nuclear power-supply complex to provide for the geopolitical interests of the country and the power-supply security of the Russian Federation by putting into operation new typical series power supply blocks of nuclear power stations with the total introduced power rating of at least 2 GW per year, promotion of the products (works, services) of Russian organisations of the nuclear fuel cycle to the world markets and switchover to construction and operations of nuclear power stations abroad.

The list of the program measures is subdivided into four areas:

development of capacities of nuclear power stations;

development and reconstruction of production capacities of organisations of the nuclear fuel cycle;

development of capacities for handling spent nuclear fuel and radio active waste at nuclear power stations and preparation for withdrawal from operation of power units of nuclear power stations;

switching over to innovation technologies of development of the nuclear power industry.

Expected final results of implementation of the program include:

putting in operation of 10 new power units of nuclear power stations;

the share of electric power produced at the nuclear power stations will make 18.6% of the total volume of produced electric power in the Russian Federation;

reduction of operating expenses of organisations operating nuclear power stations.

Implementation of the program is arranged in 2 stages: the first one - years 2007-2010; the second one - years 2011-2015.

The financing of the program shall include Rbl 1,471.4 billion, including: resources of the federal budget allocated for capital investments - Rbl 674.8 billion; resources of organisations of the nuclear power industry - Rbl 796.6 billion.

Order of the Federal Service of Enforcement in the Sphere of Public Health and Social Development No. 2240-Pr/06 of October 2, 2006 on the State Registration of Producer Limiting Selling Prices for Medicines (by Trade Names) Sold to Doctor (Feldsher) Prescriptions When Rendering Additional Free Medical Aid to Individual Categories of Citizens Entitled for the State Social Aid <br>

Defines the limiting selling producer prices for medicines (by trade names) sold to doctor (feldsher) prescriptions when rendering additional free medical aid to individual categories of citizens entitled for the state social aid in the form of a set of social services. The prices are introduced from November 1, 2006.

Federal Law No. 163-FZ of October 17, 2006 on the Amendment to Article 13 of the Federal Law on the Status of Servicemen



The amendments bring the Federal Law on the status of servicemen in compliance with the Federal Law on the higher and post-graduate professional education where it pertains to the monthly mark-ups to the scientific and pedagogical personnel of military institutions of higher professional education for the position of assistant professor, professor, for the scientific grade of candidate of sciences and doctor of sciences.

The Federal Law eliminates the need to adopt in the future separate federal laws to amend Article 13 of the Federal Law on the status of servicemen if there are changes in Item 5 of Article 30 of the Federal Law on the higher and post-graduate professional education.

The Federal Law is entered into force from November 1, 2006.

Federal Law No. 162-FZ of October 17, 2006 on the Amendment to Article 11 of the Federal Law on the Burying and Obsequies



The amendments refine the norm of Subitem 4 of Item 3 of Article 11 of the Federal Law on the burying and obsequies pertaining to guarantees for the veterans of combat actions – servicemen having participated directly in antiterrorist operations on the territory of the Chechen Republic and adjacent territories of the Russian Federation.

The right for the state guarantees to be buried at the expense of the federal body of executive power in charge of defence, other federal bodies of executive power is specified in Article 24 of the Federal Law on the veterans. Meanwhile, Subitem 4 of Item 3 of Article 11 of the Federal Law on the burying and obsequies defined such guarantees for only dead veterans having taken part in combat actions on the territory of other states regardless of the total length of the military service (service), whereas from January 1, 2004, the Federal Law No. 158-FZ of November 27, 2002 provided to servicemen having taken part in the armed conflict and antiterrorist operations in the Chechen Republic and on adjacent territories of the Russian Federation measures of social support of veterans of combat actions.

Decision of the Presidium of the Higher Arbitration Court of the Russian Federation No. 3691/06 of July 18, 2006



The Presidium of the Higher Arbitration Court of the Russian Federation has revoked available judicial acts having left unsatisfied the demand of Nivea trademark owners to invalidate the decision of the Chamber of Patent Disputes having refused to satisfy the applicant objection against registration of the Livia trademark. The courts proceeded from absence of proof of similarity of disputed trademarks to the level of confusion, since they do not have the necessary originality to identify the product of a particular producer.

The Presidium explained that if there is a dispute between two similar but not identical trademarks, the danger of confusion of the first trademark with the later one must be established in court. The danger of confusion depends, first, on the distinguishing capacity of the trademark with an earlier priority, second, on the similarity of the trademarks under examination, third, on the assessment of the nature of commodities and services designated with the trademarks.

The lower-instance courts did not carry out a complex analysis of the similarity of the trademarks taking into account not only their visual and graphic similarity, but also the distinguishing capacity, as well as did not investigate the issue of similarity of commodities suggested under the trademarks under dispute. In the course of comparison of the graphic and visual similarity of trademarks, the courts failed to take account of the main rule requiring that the conclusion be made on the perception of the trademark as a whole (general impression) rather than individual elements. They also ignored that the danger of confusion, rather than the actual confusion of trademarks in the eyes of the consumer, is already enough to recognise the similarity of trademarks. The presence of the danger of confusion is evident from results of sociological polls.

Moreover, one should also assess the actions of the owners of the Livia trademark, who are a direct competitor of the applicant and who registered the trademark later, from the viewpoint of inadmissibility of unfair use of economic advantages obtained as a result of promotion of their trademarks by the company. The Presidium emphasised that the case circumstances show that the competitor actions may be qualified as a form of unfair competition. The Patent Chamber and the courts did not investigate the similarity of commodities and services protected by the competing trademarks with the motivation that the absence of similarity of the compared trademarks eliminates the need to analyse the similarity of commodities and services. However, assessment of similarity of commodities and services in the given category of disputes is obligatory since it identifies the presence or absence of danger of confusion of similar trademarks. The Presidium recognised the challenged decision of the Chamber of Patent Disputes invalid.

Order of the Ministry of Public Health and Social Development of the Russian Federation No. 666 of September 18, 2006 on the Amendment to the Procedure of Providing of a Set of Social Services to Individual Categories of Citizens Endorsed by the Order of the Ministry of Public Health and Social Development of the Russian Federation No. 328 of December 29, 2004



Changes the procedure of control of fulfilment by pharmacy organisations of the duty to provide to apothecary institutions medicines released free of charge to preference categories of citizens.

Pharmacy organisations must provide to apothecary institutions medicines according to requests endorsed by the Federal Fund of Obligatory Medical Insurance.

Control of fulfilment by pharmacy organisations of their duties is vested in the Federal Service of Enforcement in the Sphere of Public Health and Social Development. Earlier, the authority of control in the given sphere was also vested in the Federal Fund of Obligatory Medical Insurance.

Registered in the Ministry of Justice of the Russian Federation on October 13, 2006. Reg. No. 8385.

Letter of the Federal Service of Labour and Employment No. 1688-6-1 of October 10, 2006



Explains the position of the Federal Service of Labour and Employment on the issue of compliance with the norms of the labour legislation of fixing the earnings in the labour contracts in the rouble equivalent of the amount of foreign currency.

According to Article 131 of the Labour Code, the paying out of earnings is made in the monetary form in the currency of the Russian Federation (roubles). The paying out of earnings on the territory of the Russian Federation in foreign currencies is not envisaged in the actual labour legislation. Thus, the earnings in the labour contracts with employees must be indicated in roubles. The fixing of earnings in the rouble equivalent of the amount of foreign currency in the labour contracts is not fully in compliance with the labour legislation and may be regarded as a violation of the labour legislation.

Decision of the Presidium of the Higher Arbitration Court of the Russian Federation No. 13322/04 of September 19, 2006



The Presidium of the Higher Arbitration Court of the Russian Federation recognised that the cases challenging normative legal acts of the Ministry of Finance of the Russian Federation on issues of taxation fall in the jurisdiction of the courts of arbitration. The decision was stipulated by the appeal of the company that did not agree that the lower-instance court terminated the proceedings of the case challenging the Letter of the Ministry of Finance of the Russian Federation No. 03-02-05/2/35 of June 10, 2004 on the registration of leasing operations for taxation purposes proceeding from the fact, in particular, that there is no Federal Law qualifying as the sphere of reference of the arbitration court the cases challenging normative legal acts of the Ministry of Finance of the Russian Federation.

The Presidium emphasised that since 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 handed over to the Ministry of Finance of the Russian Federation the functions of the Ministry of Taxation of Russia in adoption of normative legal acts in the sphere of collection of taxes and fees and explanatory work on legislation on taxes and fees, which is envisaged also in Item 1 of Article 4, Item 1 of Article 34.2 of the Tax Code of the Russian Federation, therefore, such acts are subject to the rules of appealing specified in the Tax Code of the Russian Federation. According to Articles 137, 138 of the Tax Code of the Russian Federation, organisations and independent entrepreneurs shall appeal against such acts by submission of application to the arbitration court in compliance with the legislation on arbitration procedures.

Meanwhile, the Presidium found it possible to leave in force the challenged judicial act, since the challenged Letter contains explanations of the tax legislation providing no obligations to anyone. It does not introduce any rules of conduct obligatory for any unidentified circle of persons, therefore, not being of normative nature. In such circumstances, the company’s application requesting to invalidate the provisions of the mentioned Letter may not be processed in the Higher Arbitration Court of the Russian Federation whose jurisdiction includes the cases challenging the normative legal acts of the federal bodies of executive power.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/4/154 of October 6, 2006



Explains that the Tax Code has imposed a restriction stating that in the determination of the taxable base, the profit from the main activities may not be reduced by the amount of losses from operations with securities. The Code does not restrict opportunities of reducing the profit from operations with securities by the amount of losses from the main activities.

In the determination of the total taxable base for the profit tax, the losses from the main activities are reduced by the amount of profits from operations with securities. If the amount of losses from the main activities is greater than the profit from operations with securities, the object of taxation for the profit tax does not emerge.

Information of the Department of External and Public Relations of the Central Bank of Russia of October 20, 2006



From October 23, 2006, the rate of refinancing (bank rate) of the Bank of Russia is fixed in the amount of 11% annual (in pursuance of the Direction of the Central Bank of Russia No. 1734-U of October 20, 2006).

This is the second rate reduction during the year 2006. From June 26, 2006, the mentioned rate was fixed in the amount of 11.5% annual by the Direction of the Central Bank of Russia No. 1696-U of June 23, 2006.

Federal Law No. 164-FZ of October 19, 2006 on the Amendment to Article 1 of the Convention on Prohibitions or Restrictions on the Use of Certain Conventional Weapons Which May Be Deemed to Be Excessively Injurious or to Have Indiscriminate Effects



The amendment to the Convention on prohibitions or restrictions on the use of certain conventional weapons which may be deemed to be excessively injurious or to have indiscriminate effects has been adopted at the conference on the Convention effect on December 21, 2001 in Geneva.

The mentioned amendment worked out with an active participation of Russia envisages application of the Convention and the Protocols attached to it to internal armed conflicts (that do not include violations of internal order and internal tensions, such as disorders, individual acts of violence and other acts of similar nature).

The amendment will permit to enhance significantly the Convention and the Protocols to it having adapted them to present-day conditions taking into account the growing significance of the problems of application of “inhuman” weapons.

Participants of the Convention include 94 states, 37 of which expressed agreement to join the amendment.

The amendment does not specify any other rules than are envisaged in the legislation of the Russian Federation, its execution does not require changing available or adoption of new federal laws.

Decision of the Government of the Russian Federation No. 616 of October 20, 2006 on the Amendment to the Rules of Determination of the Customs Cost of Commodities Exported from the Customs Territory of the Russian Federation Endorsed by the Decision of the Government of the Russian Federation No. 500 of August 13, 2006



According to the amendments, expenses not included (according to the common rule) in the customs cost that are separated from the price actually paid or due for payment and declared by the declaring party and confirmed with documents are included in the customs cost when declaring commodities moved across the customs border of the Russian Federation by pipelines or over electric lines.

According to the rules of determination of the customs cost of commodities exported from the Russian Federation, the mentioned expenses include: expenses of transportation for the purpose of export from the customs territory of the Russian Federation and expenses of subsequent transportation; duties, taxes and fees collected in the Russian Federation because of the export of commodities; duties, taxes and fees collected for assessed commodities in the country where these commodities are imported to.

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

Decision of the Government of the Russian Federation No. 615 of October 18, 2006 on the Endorsement of the Rules of Checking of Compliance of Activities of the Resident of the Special Economic Zone in the Kaliningrad Province with the Requirements of the Federal Law on the Special Economic Zone in the Kaliningrad Province and on the Amendments to Some of the Legislative Acts of the Russian Federation to Be Carried out by the Administration of the Special Economic Zone in the Kaliningrad Province Together with the Tax Body at the Place of Registration of the Resident for Taxation Purposes



The Federal Law on the special economic zone in the Kaliningrad Province and on the amendments to some of the legislative acts of the Russian Federation envisages carrying out of checks of compliance of activities of the residents of the special economic zone with the requirements of the actual legislation. The endorsed rules specify the procedure of carrying out of such check.

The checking is vested in the Administration of the Special Economic Zone in the Kaliningrad Province together with the tax body at the place of registration of the resident for taxation purposes. The checking is carried out after the resident fulfils the terms of the investment declaration, however, no later than two months after expiry of the first three years from the day of inclusion of the legal entity in the Joint Register of Residents of the Special Economic Zone in the Kaliningrad Province. The check may not be longer than fourteen working days.

The rules specify the rights and duties of those checking and those being checked, the procedure of drawing up of the act of the check.

If there are not facts of underpaid amounts of capital investments revealed as a result of the check, the Administration must hand out to the resident the certificate of fulfilling of the terms of the investment declaration. If the fact of reduction of the volume of capital investments is found or incompliance of activities of the resident with specified requirements, the Administration may demand to exclude the resident from the Register of Residents of the Special Economic Zone in the Kaliningrad Province.

Instruction of the Central Bank of Russia No. 28-I of September 14, 2006 on the Opening and Closing of Bank Accounts, Deposit Accounts



Endorses the Instruction specifying the procedure of opening and closing in the Russian Federation by credit organisations (branches), divisions of the payment network of the Bank of Russia of bank accounts, deposit accounts of legal entities, natural persons, independent entrepreneurs, as well as natural persons engaged in private practice in the currency of the Russian Federation and foreign currencies.

The Instruction does not apply to the procedure of opening and closing of accounts of candidates for elected positions, accounts of deposits of servicemen opened in the field institutions of the Bank of Russia, as well as accounts opened for reasons other than the bank account (deposit) contract.

The grounds to open a bank account, deposit account is conclusion of an appropriate contract and submission of all specified documents. The client may be refused to open an account if the documents are not submitted to confirm information necessary for identification of the client or incorrect information is presented, as well as in other cases envisaged in the legislation. When opening the account, the bank officials identify the client, as well as check the presence of legal capacities with the client.

The account is considered to be opened from the moment of entry of the record in the ledger of opened accounts. It is entered no later than the working day following the day of conclusion of the appropriate contract.

To open an account, the originals of the documents or their copies are presented to the bank. The copies of the documents certified by the client legal entity are presented on condition that the bank verifies their compliance with the original. The given copies must contain the signature of the person having certified the copy of the document, his full name and position, as well as the client seal (stamp). The Instruction defines the procedure of suspension of certifying signatures by the bank officials.

The banks shall open in the currency of the Russian Federation and foreign currencies: current accounts; payment accounts, budget accounts; correspondent accounts, correspondent subaccounts; trust control accounts; special bank accounts; deposit accounts of the courts, divisions of the bailiff service, law enforcement bodies, notaries; deposit accounts.

The Instruction specifies the list of the documents presented to the bank to open each of the listed accounts, as well as regulates the procedure of drawing up of the card with the specimens of the signature and seal.

The grounds to close the account is the termination of the bank account contract. When the contract is terminated, the residue on the account is handed out to the client or transferred against his direction by the bank’s payment order before expiry of the seven day time limits after receiving an appropriate written application of the client. Other turn-in and issue operations on the client account are not carried out.

A legal file is generated for each client account by the bank.

The Instruction specifies the list of issues that may be regulated by the internal document of the credit organisation – bank rules.

Specifies the form of the card with the specimens of signatures and the seal and its filling procedure to be applied from the day of entry into force of the Instruction. The redrawing of the cards presented to the bank before the entry into force of the Instruction is not necessary.

The Instruction invalidates from the day of its entry into force the Direction of the Bank of Russia No. 1297-U of June 21, 2003 having defined the procedure of drawing up of the mentioned card earlier.

The banks shall work out and endorse the internal documents envisaged in the Instruction within four months form the day of its entry into force.

The Instruction shall enter into force thirty days after the day of its publication in the Herald of the Bank of Russia.

Registered in the Ministry of Justice of the Russian Federation on October 18, 2006. Reg. No. 8388.

Order of the Ministry of Agriculture of the Russian Federation No. 299 of September 29, 2006 on the Amendments to the Order of the Ministry of Agriculture of Russia No. 163 of September 5, 2005



According to the amendments to the procedure of carrying out of auctions of sale of industrial quotas of production (catch) of aquatic biological resources and the shares in the total volume of production (catch) of aquatic biological resources for the purpose of industrial fishing, the auctions, beside earlier envisaged quotas, may include also the shares in the total volume of quotas of production (catch) of aquatic biological resources for the purpose of industrial fishing transferred from one person to another.

Amendments are introduced defining the procedure of sale of transferred shares.

The grounds to carry out the auction to sell the transferred share is the written application submitted to the commission with attached contract for the share in the total volume of quotas certified appropriately and the certificate of the consumption by the holder of the share of quotas of production (catch) of aquatic biological resources of at least 50% of his fixed quota for the previous two years (except for the industrial quotas for the purpose of coastal fishing) handed out by the authorised body according to established procedure.

The holder of the share may revoke the submitted request.

When selling transferred shares, first, a closed auction is arranged for the applicants registered in the same subject of the Russian Federation as the holder of the share put forward for the auction. If the initial auction is recognised to have failed, a repeated open auction is arranged (except for the auction of sale of shares for the purpose of coastal fishing) where applicants registered in the Russian Federation may participate. At the proposal of the body of executive power of the subject of the Russian Federation, initial auctions may be arranged on the territory of the appropriate region.

The contract of transfer of the share is concluded between the holder of the share and the auction winner in a simple written form. A sample application for the sale of transferred share is provided.

The notification of the carried out auction is published (beside the Rossiyskaya Gazeta) in the newspaper Rybatskiye Novosti.

Registered in the Ministry of Justice of the Russian Federation on October 17, 2006. Reg. No. 8386.

Order of the Federal Tax Service No. SAE-3-19/654@ of October 4, 2006 on the Endorsement of the Procedure of Processing by the Federal Tax Service of Applications for the Respite, Extension Schedule, Investment Tax Credit to Pay the Taxes and Fees



Instead of the procedure earlier endorsed by the Order of the Federal Tax Service of Russia No. SAE-3-19/329@ of July 15, 2005, endorses a new procedure regulating the procedure of organisation of internal agency work of the tax bodies to process applications for respites, extension schedules, investment tax credits.

The working out of the new procedure is stipulated by the changing from January 1, 2007 of the procedure of providing respites, (extension schedules) for the payment of taxes and fees according to the Federal Law No. 137-FZ of July 27, 2006.

Taxpayer applications received in the Federal Tax Service of Russia requesting to change the time limits of payment of the federal taxes and fees in the form of a respite, extension schedule, investment tax credit shall be sent for processing to the Department of Regulation of Debts and Bankruptcy Proceedings of the Federal Tax Service of Russia, which, in turn, sends draft decisions after processing to the Legal Department.

The draft decisions to change the time limits of payment of the uniform social tax are sent for coordination to the bodies of appropriate extra-budgetary funds, to change the time limits of payment of the federal taxes and fees due to the federal budget and/or budgets of the subjects of the Russian Federation, local budgets – to the fiscal bodies of appropriate subjects of the Russian Federation, municipal formations.

Applications to change the time limits of payment of the regional and local taxes received in the department of the Federal Tax Service of Russia at the place of location (residence) of the interested person shall be sent for processing to the Section of Regulation of Debts and Bankruptcy Proceedings, also followed by further sending for coordination to the Legal Department. Draft decisions must be coordinated in the fiscal bodies of the appropriate subject of the Russian Federation or municipal formation. Having received the coordinated draft decisions, the Legal Department shall send them for endorsement to the head of the department, after which sends appropriate draft decisions for coordination to the Department of Regulation of Debts and Bankruptcy Proceedings of the Federal Tax Service of Russia.

Information of the adopted decision (positive or negative) shall be sent to the interested person and to the tax body at the place of registration of this person.

The total time limit of processing and decision taking must not be greater than one month after the day of receiving of the taxpayer application.

The Order also regulates the procedure of control of execution by taxpayers of decisions taken by the bodies of the Federal Tax Service of Russia and concluded contracts.

The Order is entered into force from January 1, 2007.

Decision of the Government of the Russian Federation No. 613 of October 17, 2006 on the Federal Targeted Program “Research and Projects in Priority Directions of Development of the Science and Technology Complex of Russia for the Years 2007-2012



Endorses the federal targeted program “Research and Projects in Priority Directions of Development of the Science and Technology Complex of Russia for the Years 2007-2012.

The main tasks of the program are implementation of priority directions of development of science, technologies and engineering in the Russian Federation on the basis of large-scale projects of commercialisation of technologies, concentration of resources in promising scientific and technical directions on the basis of expansion of use of the mechanisms of governmental and private partnership, providing for the inflow of young specialists in the sphere of research and development, development of the leading scientific schools, promotion of small enterprises in the scientific and technical sphere, their integration in the system of scientific and technical cooperation.

In the framework of implementation of the program, it is expected to create a scientific and technical basis and develop competitive technologies in the sphere of nano systems and materials, information and telecommunication systems, rational use of natural resources, power supplies and power conservation. The program envisages investments in the development of the material and technical bases of leading scientific organisations and higher educational institutions engaged in research projects, including the reconstruction and technical modernisation of these organisations.

The measures of the program include also development of the information infrastructure of storage and transfer of new knowledge, in particular, providing access for the leading scientific and educational centres to the world resources of scientific and technical information, further development of the network of collective-use centres of scientific equipment, providing to potential investors and other interested parties information on the results of perspective scientific research and design works obtained in the framework of the program, as well as on innovation projects and their commercialisation.

The total volume of financing of the program makes Rbl 194.89 billion. To finance the program, both resources of the federal budget and extra-budgetary sources will be attracted.

Program implementation must bring about a transfer of the Russian economy to a stable innovative development, building of a scientific and technological potential in crucial (i.e. most promising) technologies as a basis for the technical modernisation of the sectors of the Russian economy and providing national security, expansion of the circle of innovation-active companies through the demonstration effect of the implementation of the program.

Direction of the Central Bank of Russia No. 1734-U of October 20, 2006



From October 23, 2006, the rate of refinancing of the Bank of Russia is fixed in the amount of 11.0% annual. This is the second reduction of the rate in 2006. From June 26, 2006, the mentioned rate was fixed in the amount of 11.5% annual by the Direction of the Central Bank of Russia No. 1696-U of June 23, 2006.

Direction of the Central Bank of Russia No. 1731-U of October 19, 2006 on the Adjustment of Individual Acts of the Bank of Russia



Invalidates the Direction of the Bank of Russia No. 441-U of December 15, 1998 having defined the procedure of carrying out of cash operations with old monetary signs in credit organisations.

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 October 25, 2006, No. 57.

Order of the Central Bank of Russia No. OD-524 of October 16, 2006 on the Correction Coefficients of the Bank of Russia



To provide for acceptance as a security for the credits of the Bank of Russia granted in compliance with the Regulation of the Bank of Russia No. 236-P of August 4, 2003 of individual bonds of the Impexbank, it is necessary to adjust their market cost using the correction coefficient 0.75.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-02/239 of October 12, 2006



Explains the procedure of determination and confirmation of the cost of the amortised property handed over from a foreign organisation to the registered capital of the Russian organisation for the purposes of calculation of the profit tax.

When natural persons and foreign organisations transfer property (proprietary rights), its cost (residual cost) is acknowledged to be documentary confirmed expenses of its purchase (creation) taking into account the amortisation (tear and wear) calculated for the profit (income) taxation purpose in the state where the handing over party is a resident, however, not greater than the market cost of this property (proprietary rights) as confirmed by an independent assessor in compliance with the legislation of the mentioned state.

In the absence of the institute of independent assessors on the territory of the state where the foreign founder or the producer of the amortised property is a resident, if the countries are different, the cost of such property may be confirmed by an independent assessor of another state. In this case, the independent assessor of the property may be an active member of any foreign association of professional assessors (for example, American Society of Appraisers) providing assessment of property in compliance with international standards.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-02-07/1-272 of October 4, 2006



On the issue of offsetting of the tax erroneously transferred by the taxpayer as a redemption of the arrears accrued because of the error, the Ministry of Finance emphasised that the new wording of the Tax Code entering into force from January 1, 2007 envisages the taxpayer right to submit application of the available error with attached documents confirming the payment of the mentioned tax by him and its transfer to the budget system of the Russian Federation to the appropriate account of the Federal Treasury containing a request to verify the grounds, type and payment designation, the tax period or taxpayer status.

At present, disputes over accrued penalties in cases of erroneously indicated requisites in the payment documents are resolved by courts proceeding from the legal nature of penalties and the consequences of committed errors for the budget.

Order of the Federal Customs Service No. 862 of September 8, 2006 on the Amendments to the Procedure of Committing Individual Customs Operations When Using the Customs Regime of the Customs Warehouse Endorsed by the Order of the State Customs Committee of Russia No. 236 of February 25, 2004 on the Endorsement of the Procedure of Committing of Individual Customs Operations When Using the Customs Regime of the Customs Warehouse and Obligatory Requirements to the Outfit, Equipment and Place of Location of the Rooms and/or Open Sites Intended for Use As a Customs Warehouse



The amendments introduced in the procedure of committing of individual customs operations when using the customs regime of the customs warehouse are stipulated by the entry into force from January 1, 2007 of the new blank forms of the cargo customs declaration and the new procedure of their filling to improve the procedure of declaring of commodities moved across the customs border of the Russian Federation and make the customs documents uniform.

From 2007, the declaring of commodities under the customs regime of the customs warehouse will be arranged by submission by the declaring party to the customs body authorised to accept the customs declaration the cargo customs declaration filled out according to the rules of filling of the cargo customs declaration when declaring foreign-made commodities imported to the customs territory of the Russian Federation and/or released for free circulation. Thus, when the commodities are placed under the customs warehouse regime, the same rules of filling of the cargo customs declaration will be used for both the cases of declaring of foreign-made commodities and the Russian-made commodities. At present, the cargo customs declaration is filled out for the Russian-made commodities according to the rules of filling of the cargo customs declaration for commodities exported from the customs territory of the Russian Federation, and for the foreign-made commodities, according to the rules of filling of the cargo customs declaration for the foreign-made commodities imported to the customs territory of the Russian Federation or released for free circulation.

From January 1, 2007, there will also be a uniform procedure of issue of the permission by the customs body to move commodities from one customs warehouse to another. The permission will be issued in the form of a separate form of control of commodities placed under the customs regime of the customs warehouse to each party holding the rights for the moved commodities. At present, the procedure of issue of the permission is different depending on the whether the whole consignment is moved or only a part of it.

Registered in the Ministry of Justice of the Russian Federation on October 24, 2006. Reg. No. 8395.

Order of the Federal Customs Service No. 858 of September 8, 2006 on the Endorsement of the Method of Carrying out of the Contest for the Vacant Position of the State Civil Service, Procedure and Time Limits of Work of the Contest Commissions in the Customs Bodies of the Russian Federation



Endorses the method defining the procedure of organisation and carrying out of the contest for the vacant position of state civil service in the customs bodies of the Russian Federation.

The contest in the customs body for the vacant position of civil service to be occupied on the contest basis is announced at the decision of the chief of the customs body or his deputy, who is the Chairman of the Contest Commission, no later than within three days from the day when the vacancy becomes available, which is indicated in the appropriate order of the customs body.

The method defines the list of cases when the contest is not carried out or may not be carried out.

Thus, in particular, opportunities to arrange a contest are not envisaged when assigning for a certain period of time to positions of state civil service in the categories heads and assistants (advisors); when the service contract is concluded for a certain period of time.

The right for participation in the contest rests with the citizens of the Russian Federation having reached 18 years of age, having command of the state language of the Russian Federation and meeting the qualification requirements for the vacant position of civil service specified in the legislation on the state civil service.

The contest is carried out in two stages.

The announcement of the acceptance of documents for participation in the contest is published in the official and other periodicals of the bodies of state power of the subject of the Russian Federation, placed on the site of the customs body in the public-use information and telecommunication network (if available). The announcement is also placed on the information stand in the customs body.

The Order lists the documents submitted by the person for participation in the contest.

The Order defines the procedure of creation of the contest commission in the customs bodies, procedure and time limits of its work.

The commission is a collegiate body formed in each customs body. Its decision may be appealed against by the candidate.

If the results of the contest did not reveal candidates meeting the qualification requirements, a repeated contest is arranged.

Registered in the Ministry of Justice of the Russian Federation on October 24, 2006. Reg. No. 8394.

Decision of the Management Board of the Pension Fund of Russia No. 192p of July 31, 2006 on the Forms of Documents of the Individual (Personified) Records in the System of Obligatory Pension Insurance and Their Filling Instruction



Endorses the new forms of the documents of the individual (personified) records in the system of obligatory pension insurance and their filling Instruction.

The documents of the individual (personified) records shall also include application for the choice of the investment portfolio (management company), application for the transfer from the Pension Fund to a non-state pension fund providing obligatory pension insurance and application for the transfer from the non-state pension fund providing obligatory pension insurance to the Pension Fund.

The previous forms of documents of the individual (personified) records in the system of the state pension insurance and their filling Instruction endorsed by the Decision of the Management Board of the Pension Fund No. 122p of October 21, 2002 are invalidated.

Registered in the Ministry of Justice of the Russian Federation on October 23, 2006. Reg. No. 8392.

Direction of the Central Bank of Russia No. 1735-U of October 20, 2006



From October 23, 2006, the interest rate for the overnight payment credit is fixed in the amount of 11% annual.

Federal Law No. 173-FZ of October 25, 2006 on the Amendment to Article 17.1 of the Law of the Russian Federation on Subsoil Resources <br>

The mentioned Article is provided in a new wording extending the list of cases envisaging opportunities of transfer of the right of use of the parts of subsoil resources from the user of subsoil resources to another subject of entrepreneurial activities. The mentioned right may transfer to another subject of entrepreneurial activities in seven cases.

Federal Law No. 172-FZ of October 25, 2006 on the Amendments to Individual Legislative Acts of the Russian Federation on the Fire Safety <br>

The Federal Law delimitates responsibility and authority in the sphere of fire safety among the federal bodies of executive power, bodies of power of the subjects of the Russian Federation and the organisations possessing the guarded objects.

The amendments, in particular, envisage to:

expand the authority of the federal bodies of state power in the sphere of fire safety having empowered them with the tasks of fire extinguishing in residential settlements;

include in the federal fire service territorial divisions for fire prevention and extinguishing in the residential settlements;

introduce a uniform system of organisation of management of the forces and means of fire extinguishing on the territory of the Russian Federation;

empower the heads of organisations with the duty to create and maintain fire safety divisions at the objects included in the list of objects crucial for the national security endorsed by the Government of the Russian Federation, other specially important objects, specially valuable objects of cultural heritage of the peoples of the Russian Federation (except for the objects where the object, special and military formations of the federal fire service are created).

The Federal Law specifies the period of reformation of the object divisions of the state fire service (2006-2008) created under contracts with organisations (except for the organisations where the object, special and military divisions of the federal fire service are created).

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

Federal Law No. 171-FZ of October 25, 2006 on the Amendments to the Federal Law on the Physical Culture and Sports in the Russian Federation <br>

The Federal Law is extended to include the provisions on the uniform all-Russia sports classification and the qualification categories of sports judges

The uniform all-Russia sports classification defines the requirements to the awarded sports titles and grades in the Russian Federation in the kinds of sports available in the Russian Federation. The procedure and terms of awarding of sports titles and grades are specified in the Regulation on the uniform all-Russia sports classification.

The procedure and requirements to the awarded qualification categories of sports judges are defined in the Regulation on sport judges.

The awarding of sports titles and the qualification category of the sports judge of the all-Russia category is included in the sphere of reference of the federal body of executive power in charge of the physical culture and sports, and awarding of sports grades and other qualification categories of sports judges, in the sphere of reference of the bodies of executive power of the subjects of the Russian Federation.

The Federal Law provides the lists sports titles and grades, as well as the qualification categories of sports judges awarded in the Russian Federation.

Federal Law No. 170-FZ of October 25, 2006 on the Amendments to Article 1 of the Federal Law on Narcotic Drugs and Psychotropic Substances <br>

Article 1 defining the main notions used in the Law is extended to include the notions of "prevention of drug addiction" and "antinarcotic propaganda".

Federal Law No. 169-FZ of October 25, 2006 on the Amendments to Articles 8 and 9 of the Federal Law on the Mobilisation Training and the Mobilisation in the Russian Federation and Article 5 of the Federal Law on the Military Duty and the Military Service <br>

The amendments pertain to the work of the office of reinforcement of military commissariats. The Law provides the definition of the notion of the office of reinforcement of military commissariats, as well as envisages that the procedure of creation and work of the office of reinforcement of military commissariats is specified in the Regulation on the military commissariats endorsed by the President of the Russian Federation and other normative legal acts of the Russian Federation.

Appropriate changes of wordings are introduced in the Federal Law on the military duty and the military service.

Federal Law No. 168-FZ of October 25, 2006 on the Amendment to Article 12 of the Federal Law on the State Regulation of Development of Aviation <br>

The Federal Law expands opportunities of attraction of foreign capital to participation in aviation organisations engaged in activities of development, production, testing, repair and/or utilisation of the aircraft equipment. Participation of foreign capital in the aviation organisation is permitted on condition that the share of participation of the foreign capital makes less than 25% of the registered capital of the aviation organisation, or at the Decision of the President of the Russian Federation.

The head of the aviation organisation and the persons forming its management bodies must the citizens of the Russian Federation. Otherwise is determined by the decision of the President of the Russian Federation.

Federal Law No. 167-FZ of October 26, 2006 on the Amendment to Article 12 of the Federal Law on the Military and Technical Cooperation of the Russian Federation with Foreign States <br>

According to the amendments, the right for the foreign trade activities pertaining to the products of military destination granted to organisations according to established procedure is preserved with them for the whole period if the President of the Russian Federation decides to transfer the federally owned stocks (shares, property) of these organisations in the registered capital of other organisations where at least 51% of stocks (shares, property) is in the federal property.

The mentioned right is preserved with the mentioned organisations if the President of the Russian Federation decides to convert such organisations into the ones where at least 51% of stocks (shares, property) is in the federal property and transfer these stocks (shares, property) in the registered capital of other organisations where at least 51% of the stocks (shares, property) is in the federal property.

Federal Law No. 166-FZ of October 25, 2006 on the Ratification of the Agreement between the Russian Federation and Georgia on the Organisation of Transit Shipment of the Military Cargo and Personnel through the Territory of Georgia <br>

Ratifies the Agreement signed on March 31, 2006 in Sochi. The Agreement implies an international legal regulation of issues of transit shipment by various types of transport through the territory of Georgia of the military cargo and personnel to provide for the functioning of the Russian military base on the territory of the Republic of Armenia.

Federal Law No. 165-FZ of October 25, 2006 on the Ratification of the Agreement between the Russian Federation and Georgia on the Time Limits and Procedure of Temporary Functioning and Withdrawal of the Russian Military Bases and Other Military Objects of the Group of Russian Troops in the Trans-Caucasian Region Located on the Territory of Georgia <br>

Ratifies the Agreement signed on March 31, 2006 in Sochi. The Agreement regulates the issues of withdrawal of Russian military bases, other military objects of the Group of Russian Troops in the Trans-Caucasian Region located on the territory of Georgia, as well as specifies the time limits and procedure of their temporary functioning for the period of the Agreement - until December 31, 2008.

Besides, the Agreement defines the legal status of servicemen and civilian personnel forming part of the Russian military bases (objects) and members of their families until December 31, 2008, as well as the procedure of their withdrawal from the territory of Georgia within the specified time limits.

Decision of the Government of the Russian Federation No. 614 of October 17, 2006 on the Amendments to the Decision of the Government of the Russian Federation No. 655 of November 7, 2005 <br>

The amendments endorse the rules of use of savings of the housing support of servicemen and the rules of disclosing of information on the generation, investing and use of the savings of the housing support of servicemen.

A participant of the accumulated mortgage system may use the savings of the housing support available on his personal account to purchase dwelling space, improve housing conditions or for other needs. The grounds for the emerged right of use of the savings is the total length of the military service of 20 years and more, dismissal of the serviceman with the total length of the military service of 10 years and more because of the health condition, because of the staff organisational measures or upon reaching the limiting age of the military service.

The serviceman may use accumulated contributions of future periods to obtain or redeem a mortgage credit on common grounds.

The savings of the housing support are provided to the serviceman in cashless form by transfer of resources to his bank account, transfer of resources to the federal body of executive power followed by subsequent transfer of this amount to the serviceman or by transfer of resources to the bank account of another recipient defined in the normative legal act of the federal body of executive power.

The Decision defines the procedure of use of savings when the serviceman is excluded from participants of the accumulated mortgage system because of death.

According to the rules of disclosing of information on the generation, investing and use of savings of the housing support of servicemen, the following information must be disclosed: change of the amount of savings of the housing support of servicemen; use of the savings of the housing support of servicemen; change of the market cost of assets of the aggregate investment portfolio; the aggregate investment portfolio; incomes from investing of savings of the housing support of servicemen; rewards and expenses of the management companies; resources available on the personal savings accounts of participants of the accumulated mortgage system.

The given information is disclosed on the annual basis before April 1 of the year following the reported one through official publication in the media, placing in the Internet, sending to the federal bodies of executive power in charge of the normative and legal regulation and state control (enforcement) in the sphere of relations of generation, investing and use of the savings of housing support of servicemen.

Order of the Ministry of Finance of the Russian Federation No. 116n of September 18, 2006 on the Amendments to the Normative Legal Acts on Accounting Work <br>

Amends nine regulations on accounting work, in particular, PBU 9/99 "Incomes of the Organisation", PBU 10/99 "Expenses of the Organisation", PBU 6/01 "Registration of Fixed Assets", PBU 8/01 "Conditional Facts of Economic Activities", PBU 16/02 "Information on Terminated Activities", PBU 17/02 "Registration of Expenses for Scientific Research, Design and Technological Works", PBU 19/02 "Registration of Financial Investments", PBU 20/03 "Information on Participation in Joint Activities".

The amendments are of technical nature, in particular, "operational and non-sale expenses" are replaced with "other" ones.

The amendments are entered into force beginning with the annual accounting reports for the year 2006.

Registered in the Ministry of Justice of the Russian Federation on October 24, 2006. Reg. No. 8397.

Decision of the Government of the Russian Federation No. 625 of October 25, 2006 on the Licensing of Activities in the Sphere of Fire Safety



Defines the procedure of licensing of activities in prevention and extinguishing of fires, as well as the works of installation, repair and servicing of the means of fire safety of buildings and structures.

The activities of prevention and extinguishing of fires implies the ones of organisation and implementation of prevention of fires, organisation and implementation of rescue of people, property and elimination of fires.

The works of installation, repair and servicing of the means of fire safety of buildings and structures imply the measures pertaining to installation, repair and servicing of active and passive systems of fire safety (fire extinguishing, fire alarms, fire water supplies, smoke removing, warning and evacuation, initial fire extinguishing means, firewalls, filling the gaps in the firewalls) and their elements, as well as the furnace pipe works, works of protection of materials, items and structures against fires.

The licensing is vested in the Ministry of Emergency Situations of Russia. The licence is issued for 5 years. Within 15 days after the licensing body takes the decision to grant (refuse to grant), suspend, renew or terminate the license, information of it is placed by this body in the official electronic or printed mass media, as well as on its information stands.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-11-04/3/449 of October 12, 2006



The services of repair and replacement of parts of motor vehicles using spare motor parts, replacement of motor oils rendered by the organisation are subject to the system of taxation in the form of the uniform imputed income tax for individual types of activities.

If the sale of spare parts and consumables for the repair works is made using a trade mark-up and is indicated in the orders as a separate line, it is necessary to keep in mind that according to the Instruction on the application of the chart of accounts of financial and economic activities of organisations endorsed by the Order of the Ministry of Finance of Russia No. 94n of October 31, 2000, spare parts and materials with the cost not included in the cost of repair service for motor vehicles should be registered in Account 41 Commodities, rather than Account 10 Materials.

The organisation may be transferred to the uniform imputed income tax with two types of activities: rendering the services of repair, technical maintenance and washing of motor vehicles and retail trade of spare parts and materials sold with a trade mark-up for the purpose of repair works for the motor vehicles and indicated in repair orders as a separate line.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-11-04/3/443 of October 6, 2006



The Ministry of Finance explains to the request of the organisation paying the uniform imputed income tax that in the estimate of the uniform imputed income tax, the sales area of the shop does not include the area of the passage to the cash registers passing through the sales area owned by another taxpayer.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-11-05/226 of October 6, 2006



The amount of the tax paid by independent entrepreneurs using the simplified system of taxation for the tax period, or advance payments paid for the reporting period, is reduced by the amount of actually paid insurance contributions for obligatory pension insurance in the amounts specified in the Federal Law No. 167-FZ of December 15, 2001 on the obligatory pension insurance in the Russian Federation pertaining to the appropriate reporting (tax) period.

Fixed payments to the Pension Fund of the Russian Federation made by independent entrepreneurs in excess of the amount specified in the legislation on obligatory pension insurance are paid out on the basis of the contract with the Pension Fund of the Russian Federation concluded on the voluntary basis and do not reduce the amount of the uniform tax.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/1/677 of October 3, 2006



The Ministry of Finance thinks that expenses in the form of the payment to the buyer for the fact of conclusion of the contract of shipment with the supplier may not be regarded as economically substantiated for the profit taxation purposes. The given payment does not pertain to the duty emerged with the buyer to hand over to the seller supplier the property (proprietary rights), carry out works or render services.

Expenses in the form of supplier payment to the buyer for supplies of commodities to the newly opened shops of the trade network, inclusion of commodity items in the range of products of the shops of the trade network, the placing of commodities on the shelves may not be included either in expenses for the profit taxation purposes.

Delivery of commodities purchased by the buyer to the newly opened shops of the trade network, inclusion of commodity items in the range of products of the shops, the placing of commodities on the shelves, allocation of a permanent and/or additional space for them in the shop may not be regarded as services rendered by the buyer to the supplier.

Letter of the Federal Tax Service No. 09-1-03/4151@ of August 28, 2006



Explains the issues of submission of documents for the state registration of legal entities and independent entrepreneurs and obtaining the documents from the body in charge of registration after registration by proxy.

Submission of documents for the state registration may be done by any natural person (including the messenger, third party) regardless of whether or not the mentioned natural person is the applicant and regardless of the presence of the proxy for submission of the documents. Thus, the body in charge of registration (tax body) accepts the documents in cases of direct submission of the documents for registration by other persons (messengers). The slip of receipt of the documents in this case is sent to the applicant to the mail address indicated by the applicant with a notification of handing in.

The document confirming the fact of entry of the record in the appropriate state register may be handed out by the body in charge of registration (tax body) also to the person acting by proxy on behalf of the applicant. The proxy is drawn up in a simple written form and does not require a notary certification.

Decision of the Government of the Russian Federation No. 631 of October 27, 2006 on the Endorsement of the Regulation on the Interaction of the State and Municipal Ordering Parties, Bodies in Charge of the Placing of Orders of State and Municipal Ordering Parties During Joint Tenders <br>

Defines the procedure of interaction of state and municipal ordering parties, bodies in charge of the placing of orders for the state and municipal ordering parties when placing the orders for supplies of the same commodities through joint tenders.

Joint tenders may be carried out in the presence of the demand for similar commodities with at least two ordering parties, authorised bodies. Joint tenders for the same commodities for the needs of the country's defence shall be carried out in pursuance of the decisions of the Government of the Russian Federation adopted when endorsing the defence order.

The Decision defines the content of the agreement concluded between the ordering parties, authorised bodies before the endorsement of the contest documentation.

The parties of the agreement shall assume expenses of the joint tenders in proportion to the share of initial contract price in the total amount of initial contract prices for the placing of orders involved in the joint tenders.

Decision of the Government of the Russian Federation No. 628 of October 27, 2006 on the Endorsement of the Rules of Control over Observation by Legal Entities and Independent Entrepreneurs of the Prohibition to Combine Activities of Transfer of Electric Power and Operative Dispatcher Control in the Electric Power Industry with Activities of Production and Purchase-and-Sale of Electric Power and on the Amendment to the Regulation on the Federal Antimonopoly Service Endorsed by the Decision of the Government of the Russian Federation No. 331 of June 30, 2004 <br>

Specifies the procedure for the Federal Antimonopoly Service of Russia and its territorial bodies to control observation by economic subjects of the requirements of the legislation envisaging a prohibition to combine the mentioned activities.

Defines the forms of such control. An economic subject combining the mentioned activities must send to the antimonopoly body a notification in writing no later than within 30 days from the date of entry into force of the rules. The total time limit for the antimonopoly body to process the notification may not be greater than 3 months.

The antimonopoly body may take a decision on enforced reorganisation of the legal entity in three cases: if the economic subject does not observe the prohibition to combine the activities; results of examination of the notification show the failure to observe the particulars of functioning on the part of the economic subject; results of the check of activities of the economic subject show that it has stopped to observe the particulars of functioning.

In this connection, the Federal Antimonopoly Service of Russia is empowered with authority to take a decision on enforced reorganisation of legal entities (in the form of separation or isolation), as well as to apply to the arbitration court with a demand to stop activities of independent entrepreneurs if they fail to observe the available prohibition.

Order of the Ministry of Education and Science of the Russian Federation No. 226 of September 13, 2006 on the Endorsement of the Regulation on the Expert Council of the Higher Certification Commission of the Ministry of Education and Science of the Russian Federation <br>

Defines the goals, tasks, functions and organisation of activities of the expert council of the Higher Certification Commission of the Ministry of Education and Science.

The expert council is created for expert overvaluation of compliance of dissertation papers with specified criteria, as well as to prepare recommendations to award scientific grades and titles of professor and assistant professor.

The expert council is empowered with authority to prepare statements on dissertation paper, on appeals against decisions of dissertation councils, return to dissertation councils for reworking insufficiently motivated statements, as well as to send a dissertation paper for additional assessment to another dissertation council in cases of inappropriately fulfilled expert evaluation of a dissertation paper.

The expert council is formed of leading scientists and specialists in the sphere of science, technology, education and culture. It consists of the chairman, deputy chairman, academic secretary and members of the expert council.

The composition of expert councils is formed by the Higher Certification Commission and is endorsed by the Ministry of Education and Scenic for three years followed by subsequent renewal by at least one third. The period of uninterrupted authority of the chairman of the expert council may not be greater than 6 years.

The chairman, his deputy and the academic secretary of the expert council may not belong to the same organisation.

Registered in the Ministry of Justice of the Russian Federation on October 27, 2006. Reg. No. 8408.

Direction of the Central Bank of Russia No. 1724-U of September 20, 2006 on the Amendments to the Direction of the Bank of Russia No. 1379-U of January 16, 2004 on the Assessment of the Financial Stability of a Bank to Recognise It Sufficient for Participation in the Deposit Insurance System <br>

The method of assessment of transparency of the structure of the bank's property (Appendix 3 to the Direction of the Bank of Russia No. 1379-U of January 16, 2004) is amended where it pertains to ensuring confidentiality of information on natural persons. When disclosing information on the persons exerting directly or indirectly a significant influence on the decisions of the management bodies of the bank, it is enough to present information on the place of residence of the natural person to the Bank of Russia only.

The amendments are also introduced in the terms of calculation of the figure of attracted resources (PS3), namely, the figure O beside existing conditions (votes falling on the bank's shares owned by residents of off-shore zones) does not include those falling on the bank's voting stocks (shares) owned by legal entities (groups of persons) who, according to the procedure of calculation of the figure of significance of influence of residents of off-shore zones on the bank management (figure PU2), are the persons (groups of persons) exerting a significant influence on the decisions taken by the bank's management bodies.

The Direction 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 October 25, 2006. Reg. No. 8399.

Letter of the Federal Agency of Cadastre of Objects of Immovable Property No. AM/1290@ of October 6, 2006 on the Procedure for Drawing up the Technical Certificate of the Object of Personal Housing Construction <br>

Federal Law No. 93 of June 30, 2006, the main provisions having entered into force from September 1, 2006, simplified the procedure of the state registration of the proprietary right of citizens for individual objects of immovable property. The Law specified that the state registration of the proprietary right of the citizen for the object of personal housing construction created on the land plot allocated for the personal housing construction or on auxiliary farming land plot is permitted before January 1, 2006 on the basis of a technical certificate of the object of personal housing construction.

The Letter explains individual issues of the procedure of drawing up of the cover sheet and Section 1 "General Information" of the technical certificate of the object of personal housing construction.

The date of entry of information in the Joint State Register of Objects of Capital Construction is filled out by the body in charge of the registration only (department of the Federal Agency of Cadastre of Objects of Immovable Property or its division). Before introduction of the register on the territory of the appropriate subject of the Russian Federation, the inventory number of the object of immovable property is assigned by the organisation of technical registration and technical inventory taking.

The year of construction is assumed to be the year of acceptance of the house for operation, and in the absence of it, the year of the end of construction of the object determined from information obtained from the owner.

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