Foreign trade news
and changes in legislation

The Federal Customs Agency informs in its circular dated 30 June 2009 No. 01-11/29792 the following.

The Resolution of the Government of the Russian Federation dated 30 April 2009 No. 372 “On approval of the list of production equipment (including components and spare parts thereof) whose analogs are not manufactured in the Russian Federation and whose import into the customs territory of the Russian Federation is not subjected to the value added tax” (hereinafter the Resolution) was officially published on 12 May 2009 and took effect since 20 May 2009.

Paragraph 2 of article 2 of the Federal law dated 26 November 2008 No. 224-FZ “On introducing amendments into the first part and second part of the Tax Code of the Russian Federation and some legislative acts of the Russian Federation” specifying the new wording subparagraph 7 of article 150 of the second part of the Tax Code of the Russian Federation takes effect since 1 July 2009.

Due to the aforesaid, since 1 July 2009 the import into the customs territory of the Russian Federation of the production equipment (including components and spare parts thereof) whose analogs are not manufactured in the Russian Federation as per the list approved by the Resolution, is not subjected to taxation (exempted from taxation) by the value added tax.

In accordance with the legislation of the Russian Federation no restrictions regarding the use and disposal of the production equipment (including components and spare parts thereof) whose analogs are not manufactured in the Russian Federation being imported with applying the exemption from payment of VAT pursuant to subparagraph 7 of article 150 of the second part of the Tax Code of the Russian Federation (as reenacted by the Federal law dated 26 November 2008 No. 224-FZ) and the Resolution, are established. Such goods when being subjected to the customs regime of release for domestic consumption will acquire for the customs purposes the status of goods released for free circulation in the customs territory of the Russian Federation unless those goods are not subjected to conditional release pursuant to other grounds specified by the Customs Code of the Russian Federation.

According to the note to the list of production equipment (including components and spare parts thereof) whose analogs are not manufactured in the Russian Federation and whose import into the customs territory of the Russian Federation is not subjected to the value added tax approved by the Resolution of the Government of the Russian Federation dated 30 April 2009 No. 372 (hereinafter the List), for the purposes of applying thereof the goods shall be defined solely by the codes as per the Tariff Nomenclature of Goods in Foreign Trade of Russia and the description of equipment is given only for convenience.

The import of such equipment shall be under strong customs control.