Spspent in power since April 1, 2006 -Federal Law of 10.01.2006 N 16-FZ RUSSIAN FEDERATION FEDERAL LAW On the economic zone in the Kaliningrad region adopted by the State Duma on 15 November 1995 Approved On 5 January 1996, the Federation Council . N 31-FZ; of 08.12.2003 N 169-FZ; dated 29.06.2004 N 58-FZ; of 22.08.2004 N 122-FZ; dated 18.07.2005. N 90-FZ; of 22.07.2005 N 117-FZ) This federal law defines the legal and economic foundations of the establishment and functioning of the economic zone in the Kaliningrad region, taking into account its specific geographical location, The importance for the national interest of the Russian Federation. This Federal Law is aimed at creating favorable conditions for the social and economic development of the Russian Federation and the Kaliningrad Region. CHAPTER I. GENERAL PROVISIONS Article 1. The concept of an economic zone in the Kaliningrad region. Its purpose is to create a special economic zone in the [ [ Kaliningrad Region]] (hereinafter referred to as the "Special Economic Zone") within the entire territory of the region, with the exception of the territories of objects of defence and strategic importance to the region. OF THE PRESIDENT OF THE RUSSIAN FEDERATION THE RUSSIAN FEDERATION A special economic zone is created in accordance with this Federal Law. The development of the economic zone is carried out on the basis of the federal state program of development of the economic zone, approved by the Government of the Russian Federation on the submission of the state authorities of the Kaliningrad region. A special, preferential treatment of investments and business activities, including foreign economic and investment activities, is established in the economic zone. The special economic zone is part of the State and customs territory of the Russian Federation. With regard to the collection of customs duties and other payments (including taxes) paid in the customs clearance of imported and exported goods, the Special Economic Zone is considered to be in the customs regime of the free customs zone with The specific features of this Federal Act. Article 2. Legal protection by the State of investments and business activity in Oself economic zone Investments and business activities in the economic zone OF THE PRESIDENT OF THE RUSSIAN FEDERATION THE RUSSIAN FEDERATION of the Kaliningrad Region. Article 3. The powers of the Kaliningrad Oblast Duma and the administration of the Kaliningrad Region in the economic zone of the Kaliningrad Region are the legislative (representative) body of the entity The Russian Federation and the administration of the Kaliningrad Region exercise powers over the functioning of the economic zone in accordance with the Charter (the Basic Law) of the Kaliningrad Region. The administration of the Kaliningrad Region is the administration of the economic zone in accordance with this Federal Law, other federal laws and other normative legal acts of the Russian Federation, Laws and other normative legal acts of the Kaliningrad Region. It coordinates the attraction of Russian and foreign investments for the implementation of zonal investment projects, business activities. The Administration of the economic zone (hereinafter referred to as the Administration) has the right, in accordance with the legislation of the Russian Federation, to conclude civil and civil contracts and to enter into other civil-legal relations with the Russian Federation and the Russian Federation. Foreign investors, other Russian and foreign entrepreneurs in the economic zone. Chapter II. INVESTMENT AND ENTERPRISE DEVELOPMENT IN SPECIAL ECONOMIC ZONE Article 4. Legal regulation of investments and business activity in Oself economic zone Business organizations of any business profile (production, construction, construction, etc. Trade and mediation and others), with the full or partial attraction of foreign investment, are being created, liquidated and carried out in accordance with the procedure provided for in the legislation of the Russian Federation. " Subject to the requirements of the legislation of the Russian Federation, individuals are also carrying out their activities-individual entrepreneurs without the formation of a legal entity. In the wording of the federal laws of 21/02/2002, N 31-FZ; of 08.12.2003 N 169-FL) The offices and branches of foreign legal persons are opened in the economic zone on the basis of the Administration's permission, subject to the requirements of Russian legislation. Licensing of business activities in the economic zone is not required, except in the cases provided for in the legislation of the Russian Federation. Federal executive authorities, in agreement with the Administration, may delegate to the Authority their authority to license individual business activities, with the exception of activities in the areas of: 1) defence industry, arms and military equipment, arms and military equipment; (2) production of fissile materials, poisonous, explosive, poisonous, psychotropic and narcotic drugs, biologically and Genetically-active materials and trade in these materials and means; 3) production, transmission and trade of electricity; 4) mining, processing of precious metals, precious and semi-precious stones and trade in them (processing and trading of amber and trade in amber are governed by agreements between the Government of the Russian Federation and the Administration); 5) oil and gas production at the subsoil of federal importance; (6) transport and communications; (7) mass media; Film and film production. Article 5. The contractual nature of the relationship in attracting investments into the Special Economic Zone Administration under this Federal Act and the Federal State Programme for the Development of the Economic and Social Council The zones are considering applications of Russian and foreign investors for the implementation of zonal investment projects and conclude contracts with them on the implementation of these projects in compliance with the requirements of Russian legislation. The administration has the right to hold tenders (tenders, auctions) and in exceptional cases, particularly in the investment of unique technologies and equipment-direct talks with individual Russian and foreign investors, and entrepreneurs to conclude contracts for the implementation of zonal investment projects. The administration is entitled to transfer to Russian and foreign businessmen the property owned by the Kaliningrad region as a subject of the Russian Federation, including the real estate OF THE PRESIDENT OF THE RUSSIAN FEDERATION The procedure for the use of objects related to federal property is determined by the Government of the Russian Federation, taking into account the specificity of economic management in the economic zone. The Administration shall keep a register of the treaties referred to in paragraphs 1, 2 and 3 of this article and shall establish rules for the filing and consideration of applications for the implementation of zonal investment projects. The right of land use to foreign natural and legal persons, international organizations (associations) with the participation of Russian and foreign natural and legal persons in the territory of the economic zone is granted only on the basis of lease agreements (without the right to buy). The contracts are concluded at market rates for the lease of land, taking into account the interests of the residents of the Kaliningrad region, the factors of rational land use, preservation and improvement of the natural environment; treaties are subject to registration by the authorities The State authorities of the Kaliningrad Region. Article 6. The form of investment in the economic zone is carried out in the forms provided for in the legislation of the Russian Federation and the international agreements of the Russian Federation. Chapter III. CUSTOMS RESETTLEMENT IN THE SPECIAL SESSION OF THE ECONOMIC ZONE Article 7. The customs regime of the economic zone The economic zone has a customs free zone regime, according to which: (In the wording of the Federal Law of 22.07.2005 N117-FZ ) 1) goods produced in the economic zone (as certified by the certificate of origin) and exported to other countries are exempt from customs duties and other customs duties discharge of goods (except customs duties). The goods mentioned do not apply to economic policy measures (measures on non-tariff State regulation of foreign trade); (2) goods imported from other countries into the Special Economic Zone are exempt from imported goods. Customs duties and other charges levied on customs clearance of goods (other than customs duties), and on excisable goods other than customs duties, excise duties and value added tax. Individual goods and services may be subject to economic policy measures (measures for quantitative regulation of foreign trade activities); (In the wording of federal laws of 22.08.2004 N 122-FZ) 3) goods produced in the economic zone (which is confirmed by the certificate of origin) and imported to the rest of the customs territory of the Russian Federation (as well as to the territory of the Customs (a), (c), (c), (g) and (i)). The goods are not subject to economic policy measures (non-tariff State regulation of foreign trade); 4) goods imported from other countries into the Special Economic Area and then imported to the rest part of the customs territory of the Russian Federation, as well as on the territory of the Customs Union (excluding goods which have been processed in the economic zone and considered to be manufactured in the economic zone), are subject to import customs duties and Other payments in customs clearance of goods. The goods are subject to economic policy measures (non-tariff State regulation of foreign trade activities); 5) from goods imported from other countries into the Special Economic Zone and then exported to foreign countries (both processed and non-processed) customs duties and other payments (except customs duties), and excisable goods other than customs duties, excise duties and value added tax No customs clearance is levied, quantitative restrictions on imports and exports The goods are not being used. (In the wording of federal laws of 23 December 2003: N 186-FZ; of 22.08.2004 N 122-FZ ) The Administration together with the federal executive authority implementing the regulatory framework shall determine the origin of the goods from the economic zone Regulation in the field of customs). (In the wording of Federal Law No. N 58-FZ) Goods are considered to be produced in the Oy economic zone if the value added of its processing (processing) is not less than 30 per cent, and for electronics and complex goods at least 15 per cent of the equipment, and its processing (processing) entails a change in the customs classification of the goods. The procedure for determining the origin of goods from the Economic Area, which are related to complex household appliances, is established by the federal executive authority responsible for the regulation of In the wording of the Federal Law No. N 58-FZ) The Administration in agreement with the Government of the Russian Federation is entitled to impose additional restrictions on the free customs zone regime and exceptions to this regime aimed at the protection of local customs. Producers of goods (works, services). Article 8. The transit of goods through the territory of the economic zone of the transit of goods through the territory of the economic zone is regulated by the legislation of the Russian Federation and the international agreements of the Russian Federation. Value-added tax with proceeds from the provision of transport services, goods loading, unloading, trans-shipment and storage during transportation and trans-shipment of goods from the Economic Area to the rest of the customs territory of the Russian Federation and c The rest of the customs territory of the Russian Federation is exempt from the special economic zone. Article 9. Customs clearance and customs control Considerations for customs clearance of goods, including vehicles, and customs control of the movement of goods, including vehicles, from the Economic Area and to the Special Rapporteur. The economic zone shall be established in accordance with the Customs Code of the Russian Federation and this Federal Law. CHAPTER IV. IN SPECIAL ECONOMIC ZONE Article 10. Tax deductions are granted to Russian and foreign investors and entrepreneurs in accordance with the tax legislation of the Russian Federation and the legislation of the Kaliningrad Region. CHAPTER V. BANKI AND BANKING ACTIVITIES IN A SPECIAL SESSION OF THE ECONOMIC ZONE Article 11. The activities of Russian banks Russian banks are operating in the economic zone in accordance with the procedure established by the legislation of the Russian Federation on banks and banking activities. Article 12. Activities of foreign banks The activities of foreign banks in the economic zone are carried out in accordance with the legislation of the Russian Federation on the basis of licences issued by the Central Bank in accordance with the established procedure. OF THE PRESIDENT OF THE RUSSIAN FEDERATION Article 13. Special circumstances of the activity of Russian and foreign banks in the economic zone The Administration, in agreement with the Government of the Russian Federation and the Central Bank of the Russian Federation, has the right to install benefits for Russian and foreign banks in connection with their activities in the implementation of the federal state program of development of the economic zone. Article 14. Design operations Russian and foreign natural and legal persons have the right to choose banks and other credit institutions for their transactions in the economic zone. Chapter VI: CURRENCY RESETTLEMENT AND CURRENCY IN THE SPECIAL ECONOMIC ZONE Article 15. Monetary regulation The right of ownership and other rights of natural and legal persons to foreign currency values is carried out in the economic zone in accordance with the procedure established by the legislation of the Russian Federation. The compulsory sale of foreign currency by residents is not subject to foreign exchange earnings from the export of goods (works, services) and the results of intellectual activities established in the territory of the Economic Area. Foreign currencies on the domestic currency market of the Russian Federation. The Central Bank of the Russian Federation and the Government of the Russian Federation are governed by the foreign exchange regulations of the Russian Federation. (B The wording of the Federal Law No. N 90-FZ) Article 16. Dividend transfer and repatriation of capital The transfer of dividends and repatriation of capital by foreign investors from the territory of the Economic Zone are carried out unhindered in accordance with the legislation of the Russian Federation and OF THE PRESIDENT OF THE RUSSIAN FEDERATION Article 17. Foreign currency insurance Russian and foreign natural and legal persons have the right to engage Russian or foreign insurance companies (insurers) for all types of insurance transactions in Russian or foreign currency, including Export risk insurance. The insurance transactions are carried out exclusively by insurers who have received a licence to carry out insurance activities in the territory of the Russian Federation in accordance with the legislation of the Russian Federation. Article 18. Settlement currency All calculations in the economic zone are carried out only in the currency of the Russian Federation. Article 19. Foreign exchange control Foreign exchange control in the economic zone is carried out in accordance with the currency legislation of the Russian Federation. Law of 18.07.2005 N 90-FZ) Article 20. Investment activities of the commercial organizations established in the Economic zone, in the territories of foreign states The investment activities of commercial organizations established in Oyself The economic zone, in accordance with article 4 of this Federal Law, is carried out in the territories of foreign states in accordance with the laws of the Russian Federation. (In the wording of Federal Law by 18.07.2005 N 90-FZ CHAPTER VII. FEDERAL STATE PROGRAMME FOR THE DEVELOPMENT OF THE SPECIAL ECONOMIC ZONE Article 21. The Federal State Programme for Development The Government of the Russian Federation approves the federal state programme of development of the economic zone, according to which The federal budget for special federal, interregional and regional financing facilities, particularly those relating to the deployment and activities of military units and organizations of the federal states, is allocated a priority year organs of the executive branch The Russian Federation provides for military service. In the development of the economic zone, the issues of construction and reconstruction of infrastructure used for defense and security are first agreed with the respective federal executive bodies authority. Chapter VIII. RAILWAY OBLAST AREA, CACKLING AREAS OF CALLINING AREA AND BEFORE THE TERRITORY OF THE TERRITORY OF THE SOCIO-RUSING RELATIONS Article 22. The order of entry into the Kaliningrad region, departure from the Kaliningrad region and 'stay in its territory' OF THE PRESIDENT OF THE RUSSIAN FEDERATION There is a single procedure for registration of citizens of the Russian Federation, foreign citizens, dual nationals and stateless persons in the territory of Kaliningrad region, in accordance with this Federal Law and others. OF THE PRESIDENT OF THE RUSSIAN FEDERATION State authorities of the Kaliningrad Region for the purposes of economic security are granted the right to impose restrictions on certain categories of foreign citizens and stateless persons on their own terms. and the places of stay in the Kaliningrad region. At the same time, these restrictions should not violate human rights and freedoms guaranteed by the legislation of the Russian Federation and international treaties of the Russian Federation. For persons who had previously held citizenship of the Union of Soviet Socialist Republics, residing or in the territory of Lithuania, Latvia or Estonia, whose mother tongue is Russian, the State authorities of the Kaliningrad Region are provided with The preferential conditions for resettlement in the Kaliningrad Region and settling in the territory of Kaliningrad. Article 23. Socio-labor relations in the Economic Zone Economic zone Issues of recruitment, dismissal, labor and rest, conditions and rationing of labor, social guarantees and compensation are regulated by collective agreements and individual In accordance with the legislation of the Russian Federation on labour. Foreign exchange earnings received by a foreign worker after payment of taxes may be freely transferred out of the territory of the Russian Federation at the request of the employee, and such income received by the Russian employee, may be transferred outside the territory of the Russian Federation in accordance with the Russian Federation's currency legislation and the regulatory legal acts of the foreign exchange authorities. (In the wording of Federal Law No. N 90-FZ CHAPTER IX. OTHER PROVISIONS Article 24. OF THE PRESIDENT OF THE RUSSIAN FEDERATION OF THE PRESIDENT OF THE RUSSIAN FEDERATION " The international treaties of the Russian Federation concerning the Kaliningrad region should contain provisions confirming the current status of the Kaliningrad Region as an integral part of the Russian Federation. Article 25. of the agreement of the Kaliningrad region with the administrative-territorial formations of the foreign states of the Kaliningrad region in the person of its authorized bodies of state power has the right to conclude Agreements on economic, scientific, technical, cultural and sporting cooperation with the administrative and territorial entities of foreign States, including states, provinces, cantons and Länder. The agreements specified in Part One of this article: 1) shall not contradict the Russian Federation's legislation and the international agreements of the Russian Federation; (2) shall contain provisions affirming The current status of the Kaliningrad region as an integral part of the Russian Federation; 3) cannot be considered as international treaties of the Russian Federation; 4) must be registered by the Ministry of the Russian Federation The President of the Russian Federation; 5) enters into force not earlier than the day of their registration by the Ministry of Foreign Affairs of the Russian Federation. Article 26. Elimination of the economic zone Elimination of the economic zone is carried out on the basis of a federal law adopted on the initiative of the Government of the Russian Federation in cases: 1) failure to meet goals and targets; " The lack of conformity of the economic zone with the functioning of the economic zone is in the vital interests of the Russian Federation. In the case of the adoption of the federal law on liquidation of the economic zone, the Government of the Russian Federation establishes the procedure and deadlines for the liquidation of the economic zone in accordance with the legislation of the Russian Federation. OF THE PRESIDENT OF THE RUSSIAN FEDERATION For the subjects referred to in Article 4 of this Federal Law and established in the Economic Zone after the entry into force of this Federal Law, the conditions of economic activity established by this Federal Law shall be preserved. Activities within three years of the entry into force of the Federal Law on the Elimination of the Economic Zone. Article 27. Entry into force of this Federal Law This Federal Law shall enter into force on the date of its official publication. Article 28. Bringing to compliance with this Federal Law of other legal acts Russian Federation Propose to the President of the Russian Federation and instruct the Government of the Russian Federation to bring Its legal acts are in accordance with this Federal Law within three months from the date of its entry into force. President of the Russian Federation Yeltsin Moscow, Kremlin 22 January 1996 N 13-FZ