Russian-Ukrainian
Legal Group, P.A.
APRIL 2003
Administrative Law Criminal Law and Criminal Procedure Banking Bankruptcy
Import
Land Taxes |
Chronicle of Recent Developments in
Ukrainian Legislation
The “Chronicle
of Recent Developments in Ukrainian Legislation” is a monthly summary of the
most important legislative developments in Ukraine in the area of business and
corporate law, and is prepared, published and distributed by the
Russian-Ukrainian Legal Group as a free service to our clients. The Chronicle will be distributed only via
e-mail, in English and Russian, by the middle of each month, and will summarize
the legislative developments of the previous month. The Chronicle is prepared in an effort to capture news of
greatest interest to the widest cross-section of our firm’s clientele, without
restating all legislation published and drowning our readers in too much
information. Due to the winnowing
process necessary when preparing the Chronicle, we cannot and do not guarantee
that it contains a comprehensive list of all Ukrainian legislation relevant to
your business. Finally, please bear in mind that this summary does not
constitute legal advice; it is an informational service only. Should you wish to receive further
information or actual legal advice, please do not hesitate email us at
chronicle@rulg.com.
1) Law No. 666-IV dated 3 April 2003
"On Introducing Amendments to the Code of Administrative Offenses,
establishing liability in the sphere of civil defense and protecting the
population and territories from disasters". The Code is supplemented
with a new Article No. 188-16, punishing the "failure to execute
legitimate demands from officials of the specially authorized central executive
body, whose competence includes protecting the population and territories from
man-made and natural disasters.” The Law entered into force on 25 April 2003.
2) Law No. 667-15 dated 3 April 2003
"On Introducing Amendments to Article 168 of the Code of Administrative
Offenses". This Law amends toughens the sanctions
for selling goods that do not measure up to established standards, technical specifications
and requirements for quality, completeness and packaging of samples. The amount
of the fine is has not been changed unchanged,
but now the fine can be imposed not only on officials, but also on citizens who
are subjects of entrepreneurial activity. The Law entered into force on 24
April 2003.
Criminal
Law and Criminal Procedure
3) Law No. 658-IV
dated 3 April 2003 "On Introducing Amendments to the Criminal Procedural
Code ". Changes have been made to
the articles of the Code that govern how pre-trial discovery periods and
periods that suspects can be held in custody are calculated, as well as the
procedure for extending periods for holding in custody. The Law will enter into
force on 28 July 2003.
4) Law No. 668-IV dated 3 April 2003
"On Introducing Amendments to Article 333 of the Criminal Code ".
Article 333 "Illegal export from Ukraine of
raw materials, materials, equipment, weapon technologies as well as military
and special equipment outside Ukraine" has been
retitled: "Violation of the
procedure for performing international transfers of goods that are subject to
state export control". Criminal liability for this offense is has been increased:
guilty parties can be deprived of the right to hold certain positions or to
engage in certain activity for up to three years. Also, a new form of this
offense has been introduced, to wit, "the repeated commission of the same act or its commission by
a group of persons".
This offense is punishable by imprisonment for up to five years or deprivation
of the right to hold certain positions or the right to conduct certain activity
for up to five years. The Law entered into force on 25 April 2003.
5) Law No. 669-15 dated 3 April 2003
"On Introducing Amendments to the Criminal and Criminal Procedural Codes ".
The offense of conspiracy to artificially increase or maintain monopolistic
prices (tariffs), discounts, premiums to a price (surcharges), and extra
charges imposed in order to eliminate competition between subjects of
entrepreneurial activity has been removed from Article 228 of the Criminal
Code. Sanctions are strengthened for forcing another to commit anticompetitive
coordinated actions by violence or by inflicting material damage, or by a
threat of committing such actions. Also, a new form of the offense has been
introduced, to wit, "coercion
to perform anticompetitive actions by an organized group or by a person who was
previously convicted for of the same offense". Article 230 "Violation of
antitrust law",
which envisioned sanctions for deliberately failing to give, or for
deliberately giving false, documents or other information to
Antimonopoly Committee (АМC), or for non-compliance with valid
decisions of the АМC, has been deleted from the Criminal Code.
Reference to said Article 230 has also been deleted from the Criminal
Procedural Code. The Law entered into force on 25 April 2003.
Banking
6) The Board of the National Bank of Ukraine (“NBU”) Resolution No. 81 dated 5 March 2003 "On Amending Some
Normative Acts of the NBU". Companies (or businessmen) can now make up
to 10,000 hryvnyas in cash payments per one working day to other companies or
businessmen, through their own cash offices, those of banks and through the
postal service, whether payment is made under one or several payment documents.
The OrderResolution entered into force on 15 April
2003.
7) NBU Resolution No. 119 dated 19 March
2003 "On Introducing Amendments to the Regulation on the Procedure for
Forming and Using a Reserve for Indemnification against Possible Losses on
Banks' Credit Operations". Commercial banks now need to maintain a
reserve against possible loan losses for standard loans of only 1% of the total
reserve fund established for credit risks. The Resolution entered into force on
14 April 2003.
Bankruptcy
8) Law No. 672-15 dated 3 April 2003
"On Introducing Amendments to the Law "On Recovering Solvency of a
Debtor or Declaring it Bankrupt". Penalties and fines are not to be
included in the amount of a debtor’s arrears, as it is calculated on the date
of submission of a bankruptcy petition in commercial court. Also not considered
are any obligations, which arose as a result of causing harm to the lives and
health of citizens, obligations to pay royalties and obligations to the
founders (participants) of a debtor that is a legal entity, which arose as a
result of such participation. In addition to other changes, the Law lays out
the conditions for, and legal consequences of, recognizing an agreement entered
into by a debtor invalid, including an agreement that was entered into before a
commercial court passed a ruling on reorganization of the debtor and the
restructuring of its debt. The Law will enter into force on 31 May 2003.
Import
9) Law No. 663-IV dated 3 April 2003
"On Introducing Amendments to the Law "On Application of Special Measures
Concerning Import into Ukraine". The Law expands the protections afforded to a national commodity
producer's.
interests. Additionally, the mechanism for levying special duties
is strengthened and the amount of special duties is to be set as a percentage
of the customs value of goods delivered “CIF customs border Ukraine”.
The Law entered into force on 24 April 2003.
The Land
10) Law No. 675-15 dated 3 April 2003
"On Introducing Amendments to the Land Code". Members of
collective agricultural enterprises, agricultural co-operatives, agricultural
joint-stock companies, which had not privatized their land plots prior to the
date of entry into force of the Code, are given the right to privatize their
land. The Law entered into force on 26 April 2003.
Taxes
11) Law No. 703-IV dated 3 April 2003
"On Introducing Amendments to Some Laws of Ukraine". The duty
levied on motor vehicles that pass across the border areas destined for abroad
is excluded from the list of local taxes and dues. The Law also introduces
corollary amendments to the Laws "On Taxation of Income of
Enterprises" and "On Local Self-Government in Ukraine", and to the
Decree of the Cabinet of Ministers "On Local Taxes and Duties". The
Law will enter into force on 1 January 2004.
12) Cabinet of Ministers Resolution No. 500
dated 7 April 2003 "On Introducing Amendments to the Procedure for
Issuing, Circulating and Paying off Promissory Notes Issued for the Sum of the
Value-Added Tax during Importation (Transfer) of Goods into the Customs
Territory of Ukraine". The standard form for certificates of
conformity with the status of an importer has been changed. The Order has
already entered into force.
13) State Tax Administration Order No. 164
dated 8 April 2003 "On Approving Changes and Additions to Some Normative
Acts of the State Tax Administration ". The Order approves changes to
the Instruction on Individual Income Tax, as well as changes to the form of
reference on the amount of income paid and taxes withheld for individuals and
to the Procedure for Legal Entities and Individuals that are Subjects of
Entrepreneurial Activity Filling Out and Submitting Reference Form No. 8 DR.
The Order will enter into force on 16 June 2003.
14) Joint Order No. 125/58 dated 11 April
2003 of State Tax Administration and Treasury "On Approval of the
Procedure for Cooperation between Bodies of the State Tax Service and Bodies of
the Treasury during Returns of Mistakenly and/or Excessively Paid Taxes and
Duties (Mandatory Payments) to Taxpayers". The Order lays out the
procedure and terms for return of overpayments. The Order does not apply to
return of overpayments of VAT and excise duties on alcohol and tobacco, nor to
overpayments that resulted from court decisions. The Order entered into force
on 11 April 2003.