Russian-Ukrainian
Legal Group, P.A.
Kiev, Ukraine; Washington, D.C., USA
Chronicle
of Recent Developments in Ukrainian Legislation
|
JANUARY 2007
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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) National Bank of Ukraine Board Resolution No. 455 "On Approving Amendments to the Instruction on the Procedure
for Controlling and Obtaining Licenses on Export, Import and Leasing
Operations" dated 13 December 2006. The Resolution contains the conditions under which a bank may
discontinue control over an export, import or leasing operation, as well as
limitations imposed on a bank when controlling the timeliness of settlements
under a resident’s import agreement. The Resolution took effect on 29 January 2007.
2) Law of Ukraine No. 548-V "On Amending Article 108 of the
Customs Code of Ukraine" dated 9 January 2007. The Law simplifies the
procedure for extending the term of temporary storage of goods and transport.
No longer does a superior customs body need to participate in a subordinate
customs body's issuing of permits to store goods and transport in a warehouse.
Also, applications to extend the term of temporary storage now need only be
previously agreed with the warehouse’s owner. The Law took effect on 1 February 2007.
3) Cabinet of Ministers
of Ukraine Resolution No.
1852 "On Approving the Lists of Goods, the Export and Import of which are
Subject to Licensing, and the Amounts of Quotas in 2007" dated 29 December 2006. The Resolution approves the lists of licensable goods
and the amounts of quotas thereon in 2007. Also, the Resolution contains a
provision according to which licenses to export and import goods, not used in
2006, will remain valid till 1 March 2007 unless otherwise stipulated by Ukraine’s international treaties. The Resolution took effect
on 1 January 2007.
4) State
Customs Service of Ukraine Order No. 74 "On Approving the Guidelines for
Applying Specific Provisions of the Customs Code of Ukraine Concerning Defining
the Customs Value of Goods Imported into the Customs Territory of Ukraine"
dated 31 January 2007. The Order contains guidelines concerning the
procedures to follow when using various methods for defining the customs value
of goods, including: i) by the value of the agreement concerning the imported
goods (transaction cost); ii) by the value of an agreement concerning identical
goods; iii) by the value of an agreement concerning similar goods; iv) on the
basis of deducting the cost; v) on the basis of adding the cost; and vi) the
reserve method. The Order took effect on 31 January
2007.
5) Cabinet of Ministers of Ukraine Resolution No. 1836 "On
Implementing Article 18-1 of the Law of Ukraine ‘On Bases of Social Security
of Handicapped Persons in Ukraine’" dated 27 December 2006. The Resolution approves the
Procedure for providing an employer with a grant at the expense of the Fund for
Social Security of Handicapped Persons to fund the creation of special working
places for handicapped persons registered with the State Employment Service.
The Resolution took effect on 27 December 2006.
6) Cabinet of Ministers
of Ukraine Resolution No. 70 "On
Implementing Articles 19 and 20 of the Law of Ukraine ‘On Bases of Social Security
of Handicapped Persons in Ukraine" dated 31 January 2007. The Resolution approves: i)
the Procedure for registering enterprises, institutions, organizations and
individuals using hired labor; ii) the Procedure for enterprises, institutions,
organizations and individuals that use hired labor submitting reports
concerning the employment of handicapped persons and information required to
arrange for their employment; iii) the Procedure for counting the number of
working places for the employment of handicapped individuals towards
established norms for such working places in economic associations, which
include enterprises belonging to public associations of the handicapped; iv)
the Procedure for enterprises, institutions, organizations and individuals that
use hired labor paying administrative sanctions and penalties for failure to
create the standard number of working places for the handicapped; v) the
Procedure for using such funds, received from the State budget; vi) the
Procedure for inspecting enterprises, institutions, organizations and
individuals that use hired labor. Said Procedures shall be applied with respect
to enterprises, institutions, organizations, including enterprises, public
organizations of the handicapped, and individuals that use hired labor, in
which eight or more persons have their primary employment. The Resolution took
effect on 31 January 2007.
7) Law of Ukraine No. 490-V "On Introducing Amendments
to the Land Code of Ukraine Concerning the Ban on the Sale of Agricultural Land
until the Relevant Legislative Acts are Adopted" dated 19 December 2006.
The Law extends until 1 January 2008 the ban on contributing to
companies' authorized funds the right to a land share. It also extends the ban
on the purchase and sale of state-owned and municipal agricultural land, except
when pursuant to the seizure (buyback) thereof for public purposes. The Law
also bans the sale and purchase or other alienation of land plots and the
change of zoning (use) of (i) plots owned by individuals and legal entities
engaged in commercial farming; (ii) land plots granted in kind (on land) for
individual farming; (iii) land shares. The ban does not apply to transferring
land plots through inheritance, exchanging one plot for another, or seizing
(buying back) land plots for public purposes. The ban will be removed on 1 January 2008 provided the laws on the state land cadastre and land market have taken
effect by that date. The Law took effect on 16 January 2007.
8) Law of Ukraine No. 578-V "On Amending Some Legal Acts
of Ukraine Concerning the Enhancement of Liability for the Unauthorized
Occupation of a Land Plot" dated 11 January 2007. The Law establishes
criminal liability for the unauthorized occupation of a land plot (ranging from
a fine of from 200 minimum tax-free incomes ("mtfi") up to two
years of imprisonment) and for unauthorized construction (ranging from a fine
of from 300 mtfi up to three years of imprisonment). The Law also increases the
amount of the administrative fine for the unauthorized occupation of a land
plot: from 1-10 mtfi to 10-50 mtfi (for citizens) and from 8-15 mtfi to 20-100
mtfi (for officials). The Law took effect on 3 February 2007.
9) State Committee of Ukraine for Regulatory Policy and
Entrepreneurship Order No. 115/107/5 "On Approving the Licensing
Conditions for Performing Business Activities Related to the Collection,
Processing, Storage, Protection and Use of Credit Background Information"
dated 27 December 2007. The Order contains mandatory requirements for
performing the named activities. Pursuant to the Order, the Ministry of Justice
shall issue the relevant licenses. A legal entity may obtain a license if: i)
it is created in the form of an "economic society"; ii) it is
established by individuals or legal entities, which were created at least three
years ago and do not have debts to the State budget; iii) its name contains the
words “Credit reference bureau”; and iv) its charter capital is not less than
five million hryvnias. The Order also contains requirements for the premises,
in which a credit reference bureau is situated, and requirements for its
staff's qualifications. The Order took effect on 8 January 2007.
10) Cabinet of Ministers of
Ukraine Resolution No. 104 "On
Approving the List of Iron-and-Steel Waste and Scrap, Delivery Operations,
Including Import Operations, of which are Exempted from the Value Added
Tax" dated 31
January 2007. According to the Resolution,
delivery of specific kinds of iron-and-steel waste and scrap indicated in the
List is exempted from the value added tax until 1 January 2008. The Resolution took effect on 6 February 2007.
11) Ministry of Economy and
State Tax Administration of Ukraine Order No. 340/672 "On Approving the
Procedure for the Cooperation between the Ministry of Economy of Ukraine and
the State Tax Administration of Ukraine with Respect to Application of Special
Sanctions" dated 9 November 2006. The Order defines the procedure for
(i) the State Tax Administration’s preparation of a petition to the Ministry of
Economy concerning the application (cancellation, alteration, temporary
suspension) of special sanctions, (ii) the consideration of such petitions by
the Ministry of Economy and (iii) the submission of orders on the application
(cancellation, alteration, temporary suspension) of special sanctions to the
State Tax Administration. The Order also suggests the possibility that the
Ministry of Economy can issue an official warning before actually imposing a
special sanction. Such notice would be rendered if a subject of foreign
economic activity or a foreign subject of economic activity committed a
violation for the first time and/or the violation is non-recurrent, or if the
consequences of such violation are insignificant and the subject has
independently undertaken to repair these consequences. The Order took effect on
28 January 2007.
12) Ministry of Health of Ukraine Order No. 13 "On
Approving the State Sanitary Standards and Rules ‘Hygienic Requirements for
Printed Products for Children’" dated 18 January 2007. The Order has approved the
requirements for preparation of printed products in accordance with the
standards of safety for children’s health. Such requirements apply to printed
products published in Ukraine or imported into Ukraine and do not apply to special
editions for children with hearing, seeing and speaking disabilities. The Order
took effect on 10 February 2007.