Russian-Ukrainian Legal Group, P.A.
Kiev, Ukraine; Washington, D.C., USA
Chronicle
of Recent Developments in Ukrainian Legislation
september 2005
Codes of Ukraine
Currency Control
Intellectual Property
Labor Law
Land
Oil and Gas
Permits System
Taxes
Specific Sectors of Economy/Miscellaneous
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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
Codes of Ukraine
1) Civil Procedural Code of Ukraine No. 1618-IV dated 18 March 2004. The new
Civil Procedural Code of Ukraine ("New CPC"), adopted in March
2004 (please see April 2004 issue of this Chronicle), took effect on 1 September 2005. Its entry into force was delayed pending entry into
force of the Administrative Procedural Code of Ukraine ("АPС")
(please see the August 2005 issue of this Chronicle).
2) Law of Ukraine No. 2875-IV "On Incorporating Amendments into
Certain Legislative Acts of Ukraine" dated 8 September 2005. The Law
amends the Criminal Procedural and Commercial Procedural Codes, the New CPC and
the АPС. The amendments define a "court transcript" as
being the principal means of recording civil, criminal, administrative and
commercial court proceedings. Any participant in court proceedings can request
that they be recorded, or the court itself can order this sua sponte.
The Law took effect on 23 September 2005.
Currency Control
3) National
Bank of Ukraine Resolution No. 289 "On
Incorporating Amendments into Certain Regulations of the National Bank of Ukraine" dated 12 August 2005. The Resolution changes the procedure for
transporting Ukrainian currency, foreign currency, bank metals, payment
documents and payment cards across the customs border of Ukraine. In particular, it increases the amount of foreign
currency that can be imported into or exported from Ukraine by individuals who declare this currency orally or
in writing. The Resolution will
take effect on 21 October 2005.
Intellectual Property
4) Cabinet of Ministers of Ukraine ("Cabinet of
Ministers") Resolution No. 882 "On Incorporating Amendments into Cabinet of Ministers of Ukraine Resolution No. 623 dated 26 April 2003" dated 12 September 2005. The "Procedure for Assigning and Engraving on
Laser-Readable Discs a Special Identification Code and Recognizing Special
Identification Codes on Imported Discs" has been expanded to apply also to
matrices. Special identification codes engraved on matrices will be recognized
by the Ministry of Education and Science of Ukraine on the basis of the
relevant applications of importers and/or exporters of discs and/or matrices
during importation and exportation of the matrices; codes engraved on discs
will only be recognized during their exportation. The Resolution took effect on 12 September 2005.
Labor Law
5) Cabinet of
Ministers Resolution No. 892 "On
Incorporating an Amendment into Clause 7 of the Procedure for Issuing Ukrainian
Employment Permits for Foreigners and Stateless Persons" dated 12
September 2005. Ukrainian
employment permits for foreigners who will occupy managerial positions
can now be issued for the entire term of their employment in Ukraine. Previously, such permits could not be issued valid
for more than one year. The Resolution
took effect on 20 September 2005.
Land
6) Constitutional Court of Ukraine Decision No.
5-rp/2005 "Concerning the Constitutional Application Filed by 51 People's
Deputies of Ukraine Concerning the Compliance with the Constitution of Ukraine
(Constitutionality) of the Provisions of Article 92, Clause 6, Section X
"Transitory Provisions" of the Land Code of Ukraine (the Case
Concerning Permanent Use of Land Plots)" dated 22 September 2005. The provisions implying forfeiture of the right to use a land plot which, according to
the Land Code of Ukraine, cannot be used in perpetuity unless the right of
permanent use is renewed before 1 January 2008. The Decision took effect on 22 September
2005.
Oil and Gas
7) Cabinet of
Ministers Resolution No. 930 "On
Incorporating Amendments into the Procedure for Carrying Out Customs Control
and Customs Clearance of Natural Gas Transported Across the Customs Border of
Ukraine by Pipeline Transport" dated 15 September 2005. The Procedure for Carrying Out
Customs Control and Customs Clearance of Natural Gas Transported Across the
Customs Border of Ukraine by Pipeline Transport (the adoption of which was
discussed in the December 2003 issue of this Chronicle) has been amended. For
the purposes of carrying out customs clearance of gas exported from Ukraine on the basis of a periodic customs declaration, it
is necessary to also submit an approval of the authorized body authorizing
re-export of the gas. For the purposes of clearing gas on the basis of a cargo
customs declaration, such approval is only required when the gas is declared
without prior submission of the periodic customs declaration. The Resolution took effect on 20 September 2005.
Permits System
8) Law of Ukraine No. 2806-IV "On the Permits System in the
Sphere of Economic Activity" dated 30 August 2005. The Law
was adopted with the aim of improving relations between the State and business
and harmonizing Ukrainian and European commercial laws. The Law describes how
permits and authorizations are to be issued in commerce, how authorization
bodies are to operate, and the liability of officials of such bodies. Most of
the Law's provisions will take effect on 5 January 2006.
Taxes
9) State Tax Administration of Ukraine ("Tax
Administration") Order No. 372 "On Approving the Procedure for
Taking an Inventory of the Payers of Value-Added Tax" dated 30 August 2005. Within two months after the effective date of this
Order, Ukraine's tax administration bodies will inventory VAT
payers with the aim of removing from the Register of VAT Payers any persons
that do not meet certain statutory criteria. The registration of a VAT payer
may be cancelled at the payer's request or without it, depending on the grounds
for cancellation given in the Law "On Value-Added Tax". The Order
took effect on 24 September 2005.
10) Tax Administration Order No. 415 "On Nullifying State Tax Administration of Ukraine Order No. 316 dated 1 July 1998" dated 27 September 2005. The
Order revokes the tax authorities' right to seize from enterprises any
documents dealing with the calculation and payment of their taxes and other
mandatory fees, as well as documents that reveal the concealment
(understatement) of taxable objects, the non-payment of taxes and other
charges. The Order took effect on 11 October 2005.
Specific Sectors of
Economy/Miscellaneous
11) Law of Ukraine No. 2863-IV "On Incorporating
Amendments into Certain Legislative Acts of Ukraine Concerning Confirmation of
the Quality and Safety of Foodstuffs and Food Raw Materials" dated 8
September 2005. The amendments aim
to reduce "double certification" of certain foodstuffs. Ukrainian enterprises
must obtain certification first of imported food raw materials, and then later
of finished products produced from those raw materials. In particular, the Law
stipulates that customs clearance for free use in Ukraine of imported foodstuffs, raw materials or
accompanying materials is allowed if the manufacturer issues a declaration of
conformity for each batch of products. This is permissible if the manufacturer
and the buyer of such products have been certified in accordance with the
requirements of international ISO standards or the requirements of the
international system of safety of foodstuffs "HACCP" (Hazard Analysis
and Critical Control Point). The Law has not been published yet but will take
effect once published in an official bulletin.