1'State foreign trade regulation

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• 1.State foreign trade regulation
• 2. Rules of Russian private international law
  applicable to international contracts

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State regulation. Most important legal sources

• Law on principles of state regulation of foreign
  trade activity 21.11.2003
• Customs Code 28.05.2003
• Law on currency regulation and currency control
  10.12.2003
• Law on export control 18.07.1999

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Methods of state regulation

• 1.customs tariff regulation
• 2.non-tariff regulation (establishing quotas and
  licensing)
• 3.foreign trade restrictions
• 4. currency control

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Customs tariff regulation

• First law on customs tariff and Custom Code
  1991, current 1993
• Main goals of tariff regulation protection of
  the domestic market and stimulation of the
  progressive structural changes in the economy
• Import tariff is used as a protective measure,
  the average 15, the majority of import tariff
  charges are ad valorem duties. The import tariff
  consists of three columns
• Basic rate is applied for the goods from the
  countries which are granted Most Favored Nation
  treatment,
• Special rate is applied for the goods from
  countries enjoying preferential tariff (75 of
  the basic rate)
• Rate for the goods from countries which are not
  granted Most Favored Nation treatment, and for
  the goods of unknown origin (200 of the basic
  rate)

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Quantitative restrictions on export and import

• Under the Law export and import is carried out
  without quantitative restrictions, however, they
  may be imposed by the Russian Government in
  exceptional cases for the following purposes
• - to safeguard national security,
• - to fulfill obligations with a due account of
  the state of the domestic market,
• - to protect the domestic market in cases
  provided by the Law

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Export control

• Law on principles of state regulation of foreign
  trade activity allows export control to protect
  the national interests involving armaments,
  military hardware and dual-purpose goods aimed to
  ensure observance of international obligations of
  Russian Federation with respect to
  non-proliferation of mass-destruction weapons and
  technologies for the production thereof
• Federal Law may introduce a monopoly on export
  and/or import of various kind of goods, the list
  of goods subject to state monopoly shall be
  determined by federal law. State monopoly shall
  be based on licensing of export and of import
  of the goods.

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Requirements of currency legislation

• The requirements of the Law on currency
  regulation and currency control are directed at
  prevention of the illegal escape of currency from
  the country
• Currency control was introduced over the
  repatriation of currency revenue to Russia from
  export of goods (introduced since January 1994).
  The exporter and bank form the passport of the
  contracts where the terms of international
  contract are envisaged in brief. The bank is
  obliged not only render services in the sphere of
  accounts, but also to control the repatriation of
  currency revenue. The custom bodies require the
  passport of the contract with other documents for
  customs declaration.
• Currency control in the field of import
  transactions was introduced since 1 January 1996.
  The mechanism of the currency control of the
  import transactions is actually a mirror
  reflection of the mechanism of the export
  control. The passport of the contract is the
  basic documents for the control by the authorised
  bank through which the importer transfers the
  foreign currency payment for the imported goods.
  

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Requirements of currency legislation

• Law on currency regulation and currency control
  provides the division of all currency transaction
  into two group the current currency transactions
  and currency transactions related to the movement
  of capital
• Current currency transactions include the
  transfers into the RF and from the RF of foreign
  currency for payment for the export and import
  goods, works and services and for the settlement
  pertaining to credits for export and import
  transactions for a period up to 180 days
• Currency transactions related to the movement of
  capital include, in particular, direct
  investments and portfolio investments, granting
  and postponing a payment for a period more than
  180 days for the export and import of goods, work
  and services, credits for a period more than 180
  days
• Another basic provision of the Law the
  residents may have foreign currency accounts in
  the authorised banks - the bank which have
  obtained the license for the execution of
  currency transactions

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Russian PIL

• CC 1964 contained some 13 articles
• Current CC 40 articles (a draft was published
  in 1996, the 3rd part was adopted in 2001, in
  force since 1 March 2002)
• Significance of creation of CIS
• Definition and subject matter of PIL in Russia
  1st concept - is a part of national law, 2nd
  concept is a part of international law, 3td
  concept PIL encompasses the norms of national
  and international law. Most specialists on PIL
  matters adhere the first doctrine.

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Russian PIL

• Structure of division VI CC
• 1.General provisions art. 1186 -1194
• 2.Law applicable to Legal status of persons
  art. 1195-1006
• 3.Law applicable to property and personal
  non-property rights art. 1205 1224

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Main principles for international contracts

• Article 1210 CC
• 1.The parties to a contract may in concluding the
  contract or thereafter choose by agreement among
  them the law that is applicable to their rights
  and duties
• 2.In the absence of a such agreement, the law of
  the country with which the contract is most
  closely connected shall be applied to the
  contract

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Main principles for international contracts

• 3. The law of the country with which the contract
  is most closely connected shall be considered to
  be the law of the country where the place of
  residence or the principal place of business of
  the party that conducts the performance having
  the decisive signification for the content of the
  contracts is located
• 4.The party that conducts the performance having
  the decisive significance shall be considered to
  be the party that is, in particular
• 1)the seller in a contract of sale,
• 2)the lessor in a contract of lease,
• 3)the carrier in a contract of carriage,
• 4)the insurer in a contract of insurance,
• 5)the commission agent in a contract of
  commission agency,
• 6)the agent in an agency contract,
• 7)the licensor in a license contract, etc.
• for 22 types of contract

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Main principles for international contracts

• Ascertainment of the content of foreign law
• article 1191 CC allows the court to place the
  burden of poof of the content of foreign law upon
  the parties to a business dispute