NewsletterFebruary 2016

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Dear friends!

We are glad to offer you our February Newsletter issue. From

this issue you may learn about the main amendments to the rules of the

freight delivery by truck, as well as to the Law “On Protection of

Consumers' Rights”, about exemption of some goods from excise

taxes. In addition, you will become familiar with the amendments to

the rules of the movement of goods for personal use across the state

border. I'm sure that our comments are interesting and useful as

always.Sergey MashonskyManaging Partner

AMENDMENTS TO THE LAW “ON PROTECTION OF CONSUMERS' RIGHTS” ARE SUBMITTED FOR PUBLIC DISCUSSION

Official web-site of the Ministry of Commerce contains information about public

discussions of the proposals for alterations and amendments to the draft law “On

Protection of Consumers' Rights”.

In particular, the work will be held in four directions:

џ encouragement of non-cash payments and payments in Belarusian rubles;

џ optimization (clarification) of the powers of state bodies in the sphere of

protection of consumers' laws;

џ adjustment of the Law with the technical regulations of the Customs Union

(Eurasian Economic Union);

џ creation of appropriate conditions for the effective functioning of customers'

public associations.

The proposals can be made by anyone through the web-site .

Approximate term of preparation of the draft law – 15 March 2016.

www.mintorg.gov.by

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NEWS OF LEGISLATION

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Some clauses of the Rules of the freight delivery by truck are embodied in the new edition. Exhaustive lists of documents required for submission to a driver for performing the road transportation of goods, are set separately for a road carrier and a shipper.

The list of cases when freight delivery of goods by truck is allowed without filling out a waybill is expanded. Performing the road transportation of goods without waybill will be possible: for transportation outside the territory of Belarus, as well as for road transit. In such cases the accompanying documents for the freight are considered to be CMR and other shipping documents issued by a shipper.

Since the entry of the Regulation into force, road carriers are released from the obligation to verify the completeness and accuracy of the documents issued by a shipper of cargo. Of course, this amendment is positive, since it eliminates the cases of unjustified bringing road carriers to responsibility for improper execution or lack of supporting documents.

The aforementioned alterations are made in order to bring the Rules of the freight delivery in line with Convention on the contract for the international carriage of goods by road and the law “On road transport and road carriage”.

The Regulation enters into force on March 3, 2016.

THE RULES OF THE FREIGHT DELIVERY BY TRUCK ARE AMENDED

The rules of the freight delivery by truck are amended

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February 2016

Alexander KorsakPartner

Regulation of the Council of Ministers of the Republic of Belarus dated 05.02.2016 No. 102 “On alterations and amendments to the Rules of the freight delivery by truck”

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The Edict of the President of the Republic of Belarus dated February 8, 2016 No. 33 amends the Edict dated April 25, 2015 No. 173 “On Exemption of Alcoholic Drinks from Excise Taxes”. In 2016 alcoholic drinks, low alcoholic drinks, wine, beer, beer cocktails, ciders with ethanol share of 1,2% – 7%, as well as tobacco products of own production sold for sale in duty free shops are exempted from excise taxes.

A payer shall be exempted from excise taxes in case he has a list of the documents stipulated in clause 2 of the Edict No. 173.

The alterations entered into force on February 11, 2016 and extend its effect on relations existing since January 1, 2016.

EXEMPTION OF SOME GOODS FROM EXCISE TAX IS EXTENDED FOR 2016

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The Edict of the President of the Republic of Belarus dated February 8, 2016 No. 33 “On alterations to the Edict of the President of the Republic of Belarus”

Exemption of some goods from excise tax is extended for 2016 February 2016

Елизавета РовбутьПомощник юриста

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The President of the Republic of Belarus signed the Edict No. 40 on February 11, 2016, which amends the Edict dated July 21, 2014 No. 350 “On Transition of Goods for Personal Use Across the Border of the Customs Union to the Republic of Belarus”. According to the State Customs Committee, the new limits are introduced due to the significantly increased number of attempts to import goods by individuals not for personal use.

It bears reminding that at the moment customs duties are not paid in respect of goods for personal use received during the calendar month by one person. Also, customs duties are not paid on importation of goods into the territory of Belarus during a calendar month. At the same time the customs value of the aforementioned goods as a whole shall not exceed the equivalent of 200 euro and their full weight – 31 kg.

According to the Edict No. 40, this sum shall be decreased in 9 times (to 22 euro) and the full weight of a package shall not go beyond a limit of 10 kg. According to the State Customs Committee the price of goods will be calculated based on the information available to the customs authorities. However, an individual may provide the information on the cost of goods. In this case the customs authorities shall have the right to determine the price of goods on their own, if the documents submitted by an individual were considered to be insufficient.

In addition, if a person crosses the border more than once in 3 months without payment of a customs duty, he is allowed to import goods in the amount not exceeding 300 euro or weighing less than 20 kg. Exceeding these limits will lead to the obligation to pay the fee at the rate of 30%.

It should be noted that customs control in relation of packages from EEU countries is not carried out.

The Edict No. 40 enters into force on April 14, 2016.

RESTRICTIONS ON DUTY-FREE RECEIPT OF PACKAGES FOR PERSONAL USE ARE IMPOSED

Restrictions on duty-free receipt of packages for personal use are imposed

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The Edict of the President of the Republic of Belarus dated February 11, 2016 No. 40 “On alterations and amendments to the Edict of the President of the Republic of Belarus”

February 2016

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We have already commented in our July issue upon the Edict of the President of the Republic of Belarus dated June 4, 2015 No. 231 “On performance of the activities at over the counter Forex market”, which enters into force March 7, 2016.

The terms of the abovementioned Edict is aimed at the regulation of the activities of forex-companies, which currently remain without attention of the legislator. The National Bank is determined as a state body responsible for the regulation of operations at over the counter Forex market.

According to the Edict No. 231, basic assets for the operations with over the counter non-deliverable financial instruments initiated by individuals and legal entities include:

џ foreign currency, џ precious metals, џ financial credit instruments, џ fossil oil,џ other basic assets determined by the Council of Ministers together with the

National Bank.The Regulation dated February 15, 2016 No. 123/5 adds to the relevant basic assets

(besides abovementioned) the following basic assets:џ futures contracts (an agreement between the participants of the exchange trade,

on the basis of which they have an obligation to buy or sell a certain amount of the underlying asset at a certain date in the future at a price fixed by the parties at the date of its conclusion);

џ options (an agreement under which the buyer acquires the right but not the obligation to buy or sell a certain amount of the underlying asset at a certain date or period in the future at a price fixed by the parties at the date of its conclusion);

џ interest rates at the international capital market;џ values of stock indexes.The updated Edict with alterations introduced by the Regulation dated February 15,

2016 No. 123/5 enters into force March 7, 2016.

CARRYING OUT ACTIVITIES AT OVER THE COUNTER FOREX MARKET

Carrying out activities at over the counter Forex market

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The Edict of the President of the Republic of Belarus dated 04.06.2015 No. 231 “On the Performance of the Activities at Over the Counter Forex Market”

The joint Regulation of the Council of Ministers and the National Bank dated 15.02.2016 No. 123/5 “On determination of the base assets for transactions with non-deliverable over-the-counter financial instruments”

February 2016

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Law firm news

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LAW FIRM NEWS

February 2016

***Denis Safarevich, associate at Arzinger & Partners law firm, held corporate

workshop for employees of JSC BelSwissBank on the topics related to “Practice of Application of New Edition of Rules of Currency Transactions and Currency Control of the Bank in the Light of the Decree of the President of the Republic of Belarus dated 27.03.2008 No. 178 “On the Procedure of Conducting and Controlling Foreign Trade Operations”.

Targeted group of the workshop was comprised from managers, lawyers and specialists of JSC BelSwissBank who are actively engaged in the foreign trade and payments in foreign currency with non-residents. Denis Safarevich put a focus at the legislative and practical aspects of settlements with non-residents, the novels of currency legislation, the legal basis for settlements with non-residents in accordance with the legislation of the Republic of Belarus, the choice of the currency of payment in settlements between Belarusian residents and non-residents, the changes in the settlement currency.

***Partner at Arzinger & Partners law firm Dmitry Viltovsky participated in the regular meeting of the working

group “Law, taxes, finance” on February 11, 2016, where our law firm was a co-chair. Participants of the meeting discussed the economic situation in the Republic of Belarus, current changes of the Belarusian legislation and their influence in the investment climate in the country and the work of foreign companies and their representative

offices, as well as an action plan for 2016. So, in the nearest future a legal seminar for foreign representative offices and companies with foreign capital in the Republic of Belarus (February 24), the Day of the Belarusian economy – 2016 (March 7), and other activities are planned to be conducted.

Information about the meeting and planned activities is available on the .

website of the Representative office of German economy in Belarus

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Law firm news

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LAW FIRM NEWS

February 2016

Klim StashevskyDeputy Director

***We are pleased to inform you that Klim Stashevsky deservedly took the

position of Deputy Director, and Nikolai Gorelik transferred to the post of Junior Associate. We wish our colleagues a continued growth of professionalism, talent and skills.

Nikolai GorelikJuniorAssociate

***A team of the Faculty of International Relations of Belarusian State University

with participation of Arzinger & Partner's legal assistant, Lizaveta Trakhalina, achieved a unanimous victory in the Belarusian national rounds of P. Jessup Moot Court Competition and became a national champion of Belarus in international law.

Belarusian national rounds that took place on 29th – 30th January, 2016 were appraised by more than 30 national and foreign judges. Final round was judged by famous practitioners and scientists in the sphere of international law: Nobuo Hayashi (legal advisor in the office of the Prosecutor of the International criminal Tribunal), Sergiy Petukhov (the Deputy Minister of justice of Ukraine), Jeffry Brooks (professor, USA), members of the Ministry of Foreign Affairs of the Republic of Belarus and CIS Economic Court.

Now team of the Faculty of International Relations of Belarusian State University will represent the Republic of Belarus in the international rounds of the P. Jessup Moor Court Competition in Washington DC (USA).

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Arzinger and Partners LLCNezavisimosti ave. 169 Office 304C220114, Minsk, Republic of Belarus

Law firm news

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LAW FIRM NEWS

February 2016

***Arzinger & Partners team is famous not only for its professional but also sport

achievements.On January 30-31, 2016 Alexander Korsak, managing partner of Attorneys-

at-Law “Arzinger”, took part in the I Open Republican Winter competitions among the employees of the system of Ministry of Justice of the Republic of Belarus. As part of the National Bar Association Alexander Korsak took 2nd place in the individual skiing competitions and 2nd place in team skiing competitions.

According to the final data, the team of the National Bar Association won an honorable 2nd place. “This is an excellent result for the team, for the first time participating in the Winter competitions. These sports activities contribute to the promotion of sport and healthy lifestyles, establishing communication between colleagues”, – Alexander summed up the event.