Change In Procedure For Performing Foreign Trade Transactions

29 june 2017

Starting from 28 June 2017 the Presidential Decree of the Republic of Belarus of 23 June 2017 №221 «On amendments to the Presidential Decree of the Republic of Belarus» came into force, introducing changes in the Presidential Decree of the Republic of Belarus of 27 March 2008 №178 «On procedure for performing and control over foreign trade transactions». Specifically the changes have affected the types of foreign trade transactions that were not covered by the Decree, their time limits and completion methods, as well as payment procedures during import under foreign trade contracts.

The list of foreign trade transactions that are not covered by the Decree have been joined by the following transactions conducted by and between:

- residents and non-residents under the contracts for gas- and energy supply to non-residents and their representative offices (branches) that carry out activities in the Republic of Belarus;

- mobile network operators under international roaming contracts (agreements) concluded with non-residents;

- the Belarusian Railway under contracts concluded with rail transport non-resident companies, providing for payments for services involving freight, passenger, baggage or cargo transportation and other services related to such transportation.

Time limits for completing foreign trade transactions by residents have been set and extended:

- when exporting, under commission agreements as well: not later than 180 calendar days after the date of a shipping day (transfer of proprietory information, exclusive rights to the results of intellectual activity), works performed or services rendered date. Previously export transactions had to be completed not later than 90 calendar days, and under commission agreements - not later than 120 calendar days;

- when importing: not later than 90 calendar days after the date of payment; previously - not later than 60 calendar days after the date of payment;

- when performing construction, special, assembly works and (or) rendering construction services in the Russian Federation under foreign trade contracts related to implementation of shared construction participation agreements: on or prior to the date of completion of the regulatory time period of a project construction;

- when performing construction works (services) in foreign states in the amount of up to 10% reserved by the customer of total contract cost: not later than 30 calendar days after the end of warranty period for construction works (services) performed.

The law-making body establishes that acknowledgment by a resident of indebtedness under a foreign trade transaction as non-recoverable and (or) uncollectible shall be deemed to be one of the methods of completing a foreign trade transaction. This method can be applied no earlier than three years after expiration of completion date of a foreign trade transaction. And a completion date of a foreign trade transaction shall be considered the date when a resident takes a decision to acknowledge indebtedness under a foreign trade transaction as non-recoverable and (or) uncollectible.

Furthermore, other legislative innovation is possibility to pay under foreign trade contracts, when importing, on account of the loans granted to the Government or against the Government’s security, as well as on account of the funds of international technical assistance.

If you have any further questions or wish to receive additional explanation regarding the changes in procedure for performing foreign trade transactions, do not hesitate to contact the specialists of Collegia Law Firm.