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FEDERAL LAW NO. 116-FZ OF JULY 22, 2005 ON SPECIAL ECONOMIC ZONES IN THE RUSSIAN FEDERATION

Adopted by the State Duma on July 8, 2005
Endorsed by the Federation Council on July 13, 2005

Chapter 1. General Provisions (Articles 1 - 5)

Chapter 2. Establishment and Termination of Special (Article 6) Economic Zones

Chapter 3. Management of Special Economic Zones (Articles 7 - 8)

Chapter 4. Legal Status of Residents of a Special (Articles 9 - 11) Economic Zone

Chapter 5. Agreement on Exercising Industrial-and- (Articles 12 - 21) Production Activities

Chapter 6. Agreement of Exercising Technological- (Articles 22 - 31) and-Innovative Activities

Chapter 7. Procedure for Allotting Land Plots (Articles 32 - 35) Located within the Limits of the Territory of a Special Economic Zone and Procedure for Using the Said Land Plots

Chapter 8. Taxation of Residents of Special (Articles 36 - 37) Economic Zones and Customs Treatment in Special Economic Zones

Chapter 9. Guarantees Granted to Residents of (Articles 38 - 39) Special Economic Zones

Chapter 10. Final Provisions (Articles 40 - 41)

Chapter 1. General Provisions

Article 1. Legislation of the Russian Federation on Special Economic Zones

1. The legislation of the Russian Federation on special economic zones shall consist of this Federal Law, Decrees of the President of the Russian Federation, decisions of the Government of the Russian Federation and other normative legal acts adopted in compliance with them.

2. If an international treaty made by the Russian Federation establishes the rules other than those provided for by this Federal Law, the rules of the international treaty shall apply.

Article 2. Concept of Special Economic Zone

A special economic zone shall mean a section of the territory of the Russian Federation determined by the Government of the Russian Federation where a special procedure for exercising business activities is applied.

Article 3. Aims of Establishing Special Economic Zones

Special economic zones shall be established for the purpose of developing the processing branches of economy and high technology branches, for making new types of products and developing transport infrastructure.

Article 4. Types of Special Economic Zones

1. The following types of special economic zones shall be established on the territory of the Russian Federation:

1) industrial-and-production special economic zones;

2) technological-and-innovative special economic zones;

2. Industrial-and-production special economic zones shall be established in the sections of the territory whose area is at the most twenty square kilometers. Technological-and-innovative special economic zones shall be established at the most on two sections of the territory whose total area is at the most two square kilometers.

3. A special economic zone may not be located on the territory of several municipal formations. The territory of a special economic zone must not include the entire territory of any administrative and territorial unit.

4. It shall not be allowable to locate housing fund units on the territory of a special economic zone.

5. The following shall not be allowable on the territory of a special economic zone:

1) extraction of minerals and metallurgical production in compliance with the All-Russia Classifier of Types of Economic Activities;

2) processing of minerals and processing of ferrous and non-ferrous metal scrap;

3) manufacture and processing of excisable commodities (except for passenger cars and motorcycles).

6. Establishing a special economic zone the government of the Russian Federation shall determine the types of activity, realisation of which is allowed on its territory

Article 5. Terms and Conditions of Establishing Special Economic Zones

1. Special economic zones may be only established on the land plots that are in the state and (or) municipal ownership.

2. At the time of establishing an industrial-and-production special economic zone the land plots constituting its territory must not be in the ownership and (or ) use of citizens and legal entities, except for the land plots which are allotted for location and use of engineering infrastructure units and where such units are situated.

3. At the time of establishing a technological-and-innovative economic zone the land plots forming its territory, except for the land plots which are allotted for location and use of engineering infrastructure units and where such units are situated, must not be in the ownership and (or) use of citizens and legal entities, except for educational and (or) scientific research organisations.

4. At the time of establishing an industrial-and-production special economic zone on the land plots forming its territory may be only located the units which are in the state or municipal ownership and which are not in the ownership and (or) use of citizens and legal entities, except for the units pertaining to engineering and transport infrastructure.

5. At the time of establishing a technological-and-innovative economic zone on the land plots forming the territory thereof may be only located the units which are in the state and (or) municipal ownership and which are not in the ownership and (or) use of citizens and legal entities (apart from the units pertaining to engineering and transport infrastructure), except for educational and (or) scientific research organisation.

Chapter 2. Establishment and Termination of Special Economic Zones

Article 6. Establishment and Termination of Special Economic Zones

1. A decision on the establishment of a special economic zone on the territories of a subject of the Russian Federation and a municipal formation shall be rendered by the Government of the Russian Federation and legalised by a decision of the Government of the Russian Federation.

2. The supreme executive state power body of a subject of the Russian Federation jointly with the executive-administrative body of a municipal formation shall file an application with the Government of the Russian Federation for establishment of a special economic zone substantiating the expediency and efficiency of its establishment for accomplishment of tasks of federal, regional and local importance. A procedure for drawing up and filing an application for establishment of a special economic zone, including a list of the documents to be attached to the application, shall be determined by the Government of the Russian Federation.

3. Applications for establishment of special economic zones of one and the same type shall be selected on a competitive basis. The regulations on holding a tender for selection of applications shall be endorsed by the Government of the Russian Federation.

4. The Government of the Russian Federation, the supreme executive state power body of a subject of the Russian Federation, the executive administrative body of a municipal formation, on whose territories a special economic zone is established, shall make an agreement (hereinafter referred to as an agreement of establishment of a special economic zone) within thirty working days, as of the date of rendering by the Government of the Russian Federation a decision on the establishment of a special economic zone, where the following shall be specified:

1) the volume and time of financing the establishment of engineering, transport and social infrastructure of the special economic zone using the federal budget funds of a subject of the Russian Federation and local budget;

2) a plan of development and appropriate material and technical equipping of the special economic zone and of the adjacent territory;

3) a package of measures aimed at working out a long-term development plan of the special economic zone and a procedure for financing it;

4) the amount of shares in common ownership of the units of engineering, transport and social infrastructure of the special economic zone possessed by the Russian Federation, by a subject of the Russian Federation and a municipal formation;

5) a procedure for operation and maintenance, including overhaul, of the units of infrastructure of the special economic zone which are in common ownership;

6) a procedure for possession, use and disposal of the infrastructure units which are in common ownership after termination of the special economic zone;

7) obligations of the state power bodies of a subject of the Russian Federation as to granting tax privileges to residents of the special economic zone;

8) a procedure for forming the supervisory board of the special economic zone;

9) obligations of the executive state power body of a subject of the Russian Federation as to delegating to the federal executive body authorized to exercise the functions of managing special economic zones the authority of management and disposal of land plots and other immovable property units within the limits of the territory of the special economic zone for the time period of its existence;

10) obligations of the executive-administrative body of a municipal formation as to the transfer to the federal executive body authorized to exercise the functions of managing special economic zones of the right to management and disposal of the land plots and other immovable property units which are in municipal ownership within the limits of the territory of the special economic zone for the time period of its existence;

11) other terms and conditions provided for by this Federal Law.

5. Infrastructure units of a special economic zone may be created at the expense of other sources.

6. A special economic zone shall be created for a term of 20 years. The term of a special economic zone's existence shall not be extendable.

7. A preschedule termination of a special economic zone shall be only allowed where:

1) it is caused by the need connected with ensuring the defence capacity of the country and security of the State;

2) within three years as of the date of establishment of a special economic zone no agreements on the exercise of industrial-and-production or technological-and-innovative activities are made or all previously made agreements are dissolved;

3) within three years running industrial-and- production or technical-and- innovative activities are not exercised on the territory of the special economic zone.

8) A decision on a preschedule termination of a special economic zone shall be rendered by the Government of the Russian Federation.

Chapter 3. Management of Special Economic Zones

Article 7. Managerial Bodies of Special Economic Zones

1. The development of the uniform governmental policy in the area of establishment and functioning of special economic zones shall be placed upon the authorized federal executive body (hereinafter referred to as the federal executive body authorised to exercise the functions of normative legal regulation in the area of establishment and functioning of special economic zones).

2. The management of special economic zones shall be placed upon the federal executive body authorized to exercise the functions of managing special economic zones and upon territorial bodies thereof.

3. The federal executive body authorized to exercise the functions of managing special economic zones and territorial agencies thereof (hereinafter also referred to as managerial bodies of special economic zones) shall constitute the uniform centralized system of managing special economic zones. The outlays on the maintenance of the federal executive body authorised to exercise the functions of managing special economic zones and of territorial agencies thereof shall be covered from the federal budget.

4. The supervisory board of a special economic zone shall be established for coordination of activities of the federal executive bodies, executive state power bodies of the subject of the Russian Federation, the executive-administrative body of the municipal formation, the economic subjects in charge of the development of the special economic zone, control over execution of the agreement on the establishment of the special economic zone, control over spending the budget funds allocated for the development of the territory, as well as for consideration and endorsement of long-term plans of development of the special economic zone.

5. The supervisory board of a special economic zone shall include a representative of the federal executive body authorized to exercise the functions of managing special economic zones and of the appropriate territorial agency thereof, a representative of the executive state power body of the subject of the Russian Federation, a representative of the executive-administrative body of the municipal formation, representatives of residents of the special economic zone and of other organizations.

6. The supervisory board of a technological-and-innovative special economic zone may include, in addition to the persons specified in Part 5 of this Article, representatives of educational and scientific research organizations functioning within the limits of the municipal formation on whose territory the special economic zone is located.

7. The authority of the supervisory board of a special economic zone shall be determined by the Regulations on the Supervisory Board of a Special Economic Zone endorsed by the Government of the Russian Federation.

Article 8. Authority of Managerial Bodies of Special Economic Zones

1. Managerial bodies of special economic zones:

1) shall register legal entities and individual businessmen as residents of a special economic zone and shall keep a register of residents of a special economic zone;

2) shall issue by demand of a resident of a special economic zone or on demand of the persons concerned extracts from the register of residents of a special economic zone;

3) shall submit to the federal executive body authorized to exercise the functions of normative-legal regulation in the area of establishment and functioning of special economic zones an annual report on the results of functioning of special economic zones at the latest on July 1 of the year following the reporting one;

4) shall exercise control over execution by a resident of a special economic zone of an agreement on exercising industrial-and-production or technical-and- innovative activities;

5) shall publish at least once a quarter in the prints and electronic mass media determined by the Government of the Russian Federation data on the availability of the land plots which are not let on lease, of the state and (or) municipal property on the territory of a special economic zone;

6) shall issue on the basis of an application of a resident of a special economic zone invitations for entry to the Russian Federation of foreign citizens for the purpose of exercising labour activities;

7) shall exercise the functions of a customer as regards the preparation of documentation for planning the territory of a special economic zone and the establishment of engineering, social and of other infrastructure financed from the federal budget funds, the budget of a subject of the Russian Federation and local budget;

8) shall manage, and dispose of, the immovable property units, which are located on the territory of a special economic zone and which are in the state and (or) municipal ownership in the procedure established by an agreement on establishing the special economic zone;'

9) shall ensure holding an expert examination of the project documentation;

10) shall issue permits to the construction, as well as shall obtain the specifications of connections to engineering maintenance networks and transfer them to the citizens and legal entities that carry on construction or re-construction works;

11) shall exercise other powers provided for by this Federal Law.

2. Managerial bodies of special economic zones, in order to exercise their functions of managing the immovable property units which are located on the territory of a special economic zone and which are in the state and (or) municipal ownership, shall be entitled to attract a management company in the procedure established by the federal executive body authorised to exercise the functions of normative-and-legal regulation in the area of establishment and functioning of special economic zones.

Chapter 4. Legal Status of Residents of a Special Economic Zone

Article 9. Resident of a Special Economic Zone

1. As a resident of a industrial-and-production special economic zone shall be deemed a profit-making organization, except for a unitary enterprise, which is registered in compliance with the laws of the Russian Federation on the territory of the municipal formation, within whose limits the special economic zone is located, and which has made with the bodies in charge of management of special economic zones an agreement on exercising industrial -and-production activities in the procedure and under the terms and conditions provided for by this Federal Law.

2. As a resident of a technological-and-innovative special economic zone shall be deemed an individual businessman or a profit-making organization, except for a unitary enterprise, which are registered in compliance with laws of the Russian Federation on the territory of the municipal formation within whose limits the special economic zone is located and which have made with the managerial bodies in charge of managing special economic zones an agreement on exercising technological-and-innovative activities in the procedure and under the terms and conditions that are provided for by this Federal Law.

3. An individual businessman or a profit-making organization shall be deemed residents of a special economic zone as of the date of making the appropriate entry to the register of residents of the special economic zone.

4. Bodies in charge of managing special economic zones shall make to the register of residents of a special economic zone an entry on registration of the said person within three days as of the date of signing with it an agreement on exercising industrial-and-production or technological-and-innovative activities.

5. Bodies in charge of managing special economic zones shall issue to a resident thereof the certificate proving registration of the person as a resident of the special economic zone. The form of the certificate shall be endorsed by the federal executive body authorized to exercise the functions of normative legal regulation in the area of establishment and functioning of special economic zones.

6. Managerial bodies of special economic zones shall report data on registration of a person as a resident of a special economic zone to the tax body or customs body within the day following the date of registration.

7. Bodies in charge of managing special economic zones shall submit to the customs and tax bodies within the time period specified in Part 6 of this Article a copy of an agreement on exercising industrial-and-production or technological-and-innovative activities.

8. The deprivation of a person of the status of a resident of a special economic zone shall be only allowable judicially in the instances provided for by this Federal Law and shall entail termination of an agreement on exercising industrial-and- production or technological-and-innovative activities.

9. Bodies in charge of managing special economic zones shall make to the register of a special economic zone an entry on depriving a person of the status of a resident of the special economic zone within three days as of the date of depriving the person the status of a resident of the special economic zone.

10. Bodies in charge of managing special economic zones shall report on deprivation of a person of the status of a resident of a special economic zone to the customs and tax bodies within the day following the date of making the appropriate entry to the register of residents of the special economic zone.

Article 10. Procedure for Exercising Business Activities on the Territory of a Special Economic Zone

1. A resident of an industrial-and-production special economic zone shall be only entitled to exercise on the territory of the special economic zone industrial-and-production activities within the limits provided for by an agreement on exercising industrial-and-industrial activities. For the purposes of this Federal Law, industrial-and-production activities shall mean production and (or) processing of commodities (products) and sale thereof.

2. A resident of a technological-and- innovative special economic zone shall be only entitled to exercise on the territory of the special economic zone technological-and-innovative activities within the limits provided for by an agreement on exercising industrial-and-industrial activities. For the purposes of this Federal Law, technological-and-innovative activities shall mean the creation and sale of scientific-and-technical products, their bringing up to the industrial application, including manufacture, testing and sale of development batches thereof, as well as the creation of software products, systems of data collection, processing and transfer, systems of distributed computing and of rendering services of promotion and servicing of such products and systems.

3. Individual businessmen and profit-making organizations that are not residents of a special economic zone shall be entitled to exercise business activities on the territory of the special economic zone in compliance with the laws of the Russian Federation.

4. A resident of a special economic zone shall not be entitled to have branches and representative offices outside the territory of the Russian Federation.

Article 11. Activities of State Control Bodies on the Territory of a Special Economic Zone

1. The federal executive bodies authorized to exercise the state control (supervision) (hereinafter also referred to as state control (supervision) bodies) shall be entitled to take control measures in respect residents of a special economic zone in compliance with Federal Law No. 134-FZ of August 8, 2001 on Protection of the Rights of Legal Entities and Individual Businessmen When Exercising the State Control (Supervision) subject to the provisions provided for by this Article.

2. Measures of control, except for tax and customs control exercised by officials of tax and customs bodies of the Russian Federation, shall be taken in the form of planned comprehensive inspections subject to the provisions provided for by this Article.

3. Planned comprehensive inspections shall be held by approbation of the bodies in charge of managing special economic zones . Planned comprehensive inspections shall be held on the basis of a decision issued by bodies in charge of managing special economic zones . In the decision on holding a planned comprehensive inspection must be indicated the subject thereof and the period of time to be inspected.

4. The time period for holding planned comprehensive inspections may not exceed two weeks.

5. In the event of detecting in the course of a planned comprehensive inspection violations by a resident of a special economic zone of the laws of the Russian Federation, officials of the state control (supervision) bodies shall issue to the resident of the special economic zone an order to eliminate the violations. A copy of the order to eliminate the violations shall be handed in at the latest in three days as of the time of drawing up the report on the results of holding a planned comprehensive inspection to the resident of the special economic zone or to a representative thereof against their receipt or shall be delivered thereto in any other way enabling to show the date of receiving the order by the resident of the special economic zone or by the representative thereof. Where it is impossible to deliver an order to eliminate violations to a resident of a special economic zone or to a representative thereof, it shall be sent by registered mail and shall be deemed received upon the expiry of six days as of date of sending it.

6. State control (supervision) bodies shall hold an extraordinary inspection of a resident of a special economic zone upon the expiry of two months as of the date of issuing an order to eliminate violations. In the event of failure of a resident of a special economic zone to follow an order to eliminate violations before holding an extraordinary inspection, the person may be deprived of the status of a resident of a special economic zone by court decision on the basis of an application of the bodies in charge of managing special economic zones .

7. Extraordinary inspections shall be held by approbation of bodies in charge of managing special economic zones . The time period for holding an extraordinary inspection may not exceed one week.

8. A resident of a special economic zone, when holding by a state control (supervision) body a planned comprehensive inspection, shall be entitled to do the following:

1) to be present, when control measures are taken, to give explanations in respect of the issues pertaining to the subject of the inspection;

2) to receive information whose presentation is provided for by normative legal acts of the Russian Federation;

3) to get familiar with the results of control measures and to indicate in reports whether it is familiar with it or not, whether it agrees with them or not, as well as with individual actions of officials of state control (supervision) bodies;

4) to appeal against actions (omission to act) of officials of the state control (supervision) in the administrative and (or) judicial procedure in compliance with the laws of the Russian Federation.

9. Tax and customs bodies of the Russian Federation shall exercise tax and customs control on the territory a special economic zone in compliance with the laws of the Russian Federation. In the event of making by a resident of a special economic zone two and more major violations of the tax and(or) customs legislation, the person may be deprived of the status of a resident of the special economic zone as a result of consideration by court of the application of the bodies in charge of managing special economic zones .

Chapter 5. Agreement on Exercising Industrial-and-Production Activities

Article 12. Subject of an Agreement on Exercising Industrial-and-Production Activities

1. Under an agreement on exercising industrial-and-production activities a resident of a special economic zone shall undertake within the term of validity of the agreement to exercise on the territory of the special economic zone the industrial-and-production activities provided for by the agreement and to make investments in the volume and within the time period provided for by the agreement, while the bodies in charge of managing special economic zones shall undertake within the time period specified by the agreement to make with the resident of the special economic zone a contract of lease of the land plot, which is situated within the limits of the territory of the special economic zone and which is registered in the land cadastre at the expense of the resident, for exercising industrial-and-production activities within the term of validity of the agreement on exercising industrial-and-production activities, if a shorter period is not declared by the resident.

2. Under an agreement on exercising industrial-and-production activities a resident of a special economic zone shall be obliged to make capital investments shown in roubles in the amount equal to at least ten million euros (except for intangible assets) at the exchange rate of the Central Bank of the Russian Federation as of the date of filing an application for making an agreement on exercising industrial-and-production with the bodies in charge of managing special economic zones . In so doing, a resident of a special economic zone shall be obliged to make capital investments shown in roubles equal to at least one million euros (except for intangible assets) at the exchange rate of the Central Bank of the Russian Federation as of the date of filing the applications for making the agreement on exercising industrial-and-production activities with the bodies in charge of managing special economic zones within one year as of the date of making the said agreement.

3. An agreement on exercising industrial-and-production activities may provide for the duty of the bodies in charge of managing special economic zones to make with a resident of a special economic zone a contract of lease of the state and (or ) municipal immovable property located on land plots within the limits of the territory of the special economic zone for the term of validity of the agreement on exercising industrial-and-production activities, if a shorter period is not declared by the resident. The model form of a contract of lease, procedure for making it and the rate of rent shall be established by the federal executive body authorised to exercise the functions of normative and legal regulation in the area of establishment and functioning of special economic zones. The rent and other payments for the state and (or) municipal immovable property located on land plots within the limits of the territory of a special economic zone shall be remitted to the budget of the appropriate level of the budget system of the Russian Federation in compliance with the laws of the Russian Federation.

4. An agreement on exercising industrial-and- production activities must provide for the time period for presenting by a resident to bodies in charge of managing special economic zones the project documentation, required for taking measures provided for by the business-plan, for an expert examination thereof.

5. A resident of a special economic zone shall not be entitled to transfer its rights and duties under an agreement on exercising industrial-and-production activities to another person.

6. A model form of an agreement on exercising industrial-and-production activities shall be endorsed by the federal executive body authorised to exercise the functions of normative legal regulation in the area of establishment and functioning of special economic zones.

Article 13. Documents Required for Making an Agreement on Exercising Industrial-and- Production Activities

1. The person intending to obtain the status of a resident of a special economic zone shall submit to the bodies in charge of managing special economic zones an application for making an agreement of exercising industrial-and-production activities that must contain the following:

1) data on the applicant's supposed activities corresponding to the type of the special economic zone;

2) data on the area of the land plot required for the applicant's supposed activities;

3) data on the supposed volumes of capital investments, including the volume of capital investments within the year as of the date of making an agreement on exercising industrial-and- production activities.

2. An applicant shall attach the following to the application for making an agreement on exercising industrial-and-production activities:

1) a copy of the certificate of the state registration;

2) a copy of the certificate of registration with a tax body;

3) a copy of the constituent documents;

4) a business-plan whose form shall be established by the federal executive body authorised to exercise the functions of normative legal regulation in the area of establishment and functioning of special economic zones;

5) a positive opinion concerning the business-plan presented by the applicant which is prepared by a bank or other credit organisation complying with the criteria established by the federal executive body authorised to exercise the functions of normative legal regulation in the area of establishment and functioning of special economic zones.

3. The documents specified in Parts 1 and 2 of this Article shall be accepted by bodies in charge of managing special economic zones according to an inventory thereof. A copy of the inventory bearing a note showing the date of the documents' acceptance by the bodies in charge of managing special economic zones shall be directed (handed in) to the applicant.

4. The bodies in charge of managing special economic zones shall render and direct to an applicant at the latest in ten working days after receiving the documents specified in Parts 1 and 2 of this Article one of the following decisions:

1) on making an agreement of exercising industrial-and-production activities within the time period specified by Part 1 of Article 14 of this Federal Law;

2) on the refusal to make an agreement on exercising industrial-and-production activities indicating the reasonable grounds for the refusal.

5. The refusal to make an agreement on exercising industrial-and-production activities shall be allowable in the following instances:

1) failure of a person to submit the documents specified in Parts 1 and 2 of this Article;

2) absence on the territory of a special economic zone of a vacant land plot complying with the terms and conditions indicated in the application for making an agreement on exercising industrial and economic activities;

3) non-compliance of the applicant's supposed activities with the types of activity whose exercise is permitted on the territory of special economic zone;

4) non-compliance of the supposed volume of capital investments with the requirements established by Part 2 of Article 12 of this Federal Law;

5) non-compliance of the business-plan with the terms and conditions pointed out in the application for making an agreement on exercising industrial-and production activities.

6. A decision of the bodies in charge of managing special economic zones on the refusal to make an agreement on exercising industrial-and-production activities may be appealed against judicially.

Article 14. Procedure for Making an Agreement on Exercising Industrial -and-Production Activities

1. The bodies in charge of managing special economic zones shall prepare and make with an applicant an agreement on exercising industrial-and-production activities within ten working days as of the date of deciding to make with the applicant an agreement on exercising industrial-and- economic activities.

2. An agreement on exercising industrial-and-production activities shall enter into force as of the date of its signing by the parties.

Article 15. Form of an Agreement on Exercising Industrial-and-Production Activities

An agreement on exercising industrial-and-economic activities shall be made in writing by way of drawing up a single document signed by the parties.

Article 16. Validity Term of an Agreement on Exercising Industrial-and-Production Activities

An agreement on exercising industrial-and-production shall be made for a term not exceeding the time period left before termination of a special economic zone.

Article 17. Procedure for Holding an Expert Examination of Project Documentation

1. A resident of a special economic zone within the time period provided for by an agreement on exercising industrial-and-production activities shall present to the bodies in charge of managing special economic zones the project documentation required for taking the measures provided for by its business-plan for holding an expert examination thereof.

2. The bodies in charge of managing special economic zones shall ensure holding an expert examination of project documentation at the expense of a resident of a special economic zone in compliance with the laws of the Russian Federation subject to the specifics provided for by this Article.

3. An expert examination of project documentation shall be held within the time period of forty five days at the most as of the date of submitting all necessary documentation.

4. An expert examination of project documentation shall be held by authorized executive bodies and shall be finished by rendering a decision legalised by the bodies in charge of managing special economic zones in the form of a summary expert opinion in respect of the project documentation.

5. A procedure for interaction of the bodies in charge of managing special economic zones and the executive state power bodies of a subject of the Russian Federation authorized to hold an expert examination of project documentation, as well as a procedure for interaction of the bodies in charge of managing special economic zones and the executive administrative bodies of municipal formations authorised to hold an expert examination of project documentation, shall be established by an agreement on establishment of a special economic zone. A procedure for interaction of the bodies in charge of managing special economic zones and the federal executive bodies authorized to hold an expert examination of project documentation shall be jointly established by the federal executive body authorized to exercise the functions of normative legal regulation in the area establishment and functioning of special economic zones and by the appropriate federal executive bodies authorised to exercise the functions of normative legal regulation in the area of town-planning activity.

6. The bodies in charge of managing special economic zones shall issue building permits to a resident of a special economic zone.

Article 18. Changing the Terms and Conditions of an Agreement on Exercising Industrial-and-Production Activities

1. If a resident of a special economic zone intends to change the terms and conditions of an agreement on exercising industrial-and-production activities, it shall submit the following documents to the bodies in charge of managing special economic zones;

1) a business-plan whose form is established by the federal executive body authorised to exercise the functions of normative legal regulation in the area of establishment and functioning of special economic zones;

2) a positive opinion in respect of the business plan, presented by an applicant, which is prepared by a bank or other credit organizations that comply with the criteria established by the federal executive body authorised to exercise the functions of normative legal regulation in the area of establishment and functioning of special economic zones.

2. The documents specified in Part 1 of this Article shall be accepted by the bodies in charge of managing special economic zones according to an inventory. A copy of the inventory bearing a note on the date of receiving the documents by the bodies in charge of managing special economic zones shall be directed (handed in) to the applicant.

3. The bodies in charge of managing special economic zones at the latest in ten working days as of the date of receiving the documents specified in Part 1 of this Article shall render and direct to a resident of a special economic zone one of the following decisions:

1) on changing terms and conditions of an agreement on exercising industrial -and-production activities;

2) on the refusal to change the terms and conditions of an agreement on exercising industrial-and-production activities.

Article 19. Termination of an Agreement on Exercising Industrial-and-Economic Activities

The operation of an agreement on exercising industrial-and-production activities shall be terminated:

1) upon the expiry of the time period for which the agreement on exercising industrial-and-production activities is made;

2) in the event of dissolving the agreement on exercising industrial-and-production activities;

3) in the event of termination of the contract of lease of the land plot provided for by the agreement on exercising industrial-and-production activities, except for the instances when a contract of lease is dissolved in connection with redemption of the land plot;

4) in event of depriving a person of the status of a resident of a special economic zone;

5) in the event of preschedule termination of a special economic zone.

Article 20. Dissolution of an Agreement on Exercising Industrial-and- Production Activities

1. It shall be allowable to dissolve an agreement on exercising industrial-and- production activities by arrangement of the parties.

2. An agreement on exercising industrial-and production activities may be dissolved judicially on demand of either party in connection with a major violation of the terms and conditions of the agreement by the other party, with a major change of the circumstances, as well as for other reasons provided for by this Federal Law.

3. The following shall be deemed a major violation by a resident of a special economic zone of the terms and conditions of an agreement on exercising industrial-and- activities:

1) failure to submit to the bodies in charge of managing special economic zones within the time period established by the agreement on exercising industrial -and-production activities project documentation for an expert examination and for coordination thereof;

2) failure to make capital investments in the volume and within the time period provided for by the agreement on exercising industrial-and-production activities;

3) exercising on the territory of the special economic zone business activities which are provided for by the agreement on exercising industrial -and-production activities.

4. In the event of refusal of the bodies in charge of managing special economic zones to make a contract of lease of a land plot and (or) a contract of lease of state and (or) municipal property, a resident of a special economic zone shall be entitled to make a claim with court for dissolution of an agreement on exercising industrial-and-production activities or for making a contract of lease of the land plot and(or) a contract of lease of the state and (or) municipal property.

5. In an agreement on exercising industrial-and-production activities may be specified other actions of a resident of a special economic zone and (or) of the bodies in charge of managing special economic zones recognizable by the parties as major violations of the agreement on exercising industrial -and-production activities.

6. An agreement on exercising industrial-and-production activities may be dissolved judicially on demand of the bodies in charge of managing special economic zones, where there is a negative summary expert opinion in respect of project documentation, if the documentation is not finished off within a reasonable time subject to the observations and proposals stated in the said opinion and is not presented for an expert examination thereof.

7. In the event of termination of an agreement on exercising industrial-and-production activities for the reason provided for by Part 6 of this Article, the expenses borne by a resident of a special economic zone in connection with execution of the agreement on exercising industrial-and-production activities shall not be reimbursed.

Article 21. Effects of Termination of an Agreement on Exercising industrial-and-Production Activities 1. In the event of termination of an agreement on exercising industrial-and-production activities, a person shall loose the status of a resident of a special economic zone.

2. The person that has lost the status of a resident of a special economic zone, including in connection with a preschedule termination of operation of an agreement on exercising industrial-and-production activities, shall be entitled to exercise business activities on the territory of the special economic zone on general terms.

3. The person that has lost the status of a resident of a special economic zone, including in connection with a preschedule termination of an agreement on exercising industrial-and-production activities, shall be entitled to dispose of the movable and immovable property on the territory of the special economic zone possessed by it at its discretion in compliance with the civil legislation of the Russian Federation, provided that the terms established by Article 37 of this Federal Law are observed.

4. In the event of a preschedule termination of an agreement on exercising industrial-and-production activities in connection with major violations of its terms and conditions by a resident of a special economic zone, the person that has lost the status of a resident of the special economic zone shall be obliged to pay a fine in the amount provided for by the agreement on exercising industrial-and-production activities.

5. In the event of termination of an agreement on exercising industrial-and-production activities, the contract of lease of state and (or) municipal property or the contract of lease of a land plot made under the terms and conditions, provided for by the agreement on exercising industrial-and-production activities, shall be terminated.

Chapter 6. An Agreement on Exercising Technological-and-Innovative Activities

Article 22. Subject of an Agreement on Exercising Technological-and-Innovative Activities

1. Under an agreement on exercising technological-and-innovative activities a resident of a special economic zone within the validity term of the agreement shall undertake to exercise the technological-and-innovative activities provided for by the agreement, while the bodies in charge of managing special economic zones shall undertake within the time period specified in the agreement to make with a resident of the special economic zone a contract of lease of the state and (or) municipal property located on land plots within the limits of the territory of the special economic zone for exercising technological -and-innovative activities.

2. An agreement on exercising technological-and-innovative activities may provide for the duty of the bodies in charge of managing special economic zones to make with a resident of a special economic zone a contract of lease of a land plot, situated within the limits of the territory of the special economic zone and registered in the cadastre at the expense of the resident, for the validity period of the agreement on exercising technological-and- innovative activities, if a shorter period is not declared by the resident.

3. An agreement on exercising technological-and- innovative activities may provide for the time period for presenting by a resident to the bodies in charge of managing special economic zones the project documentation required for taking the measures stipulated by the business-plan for the purpose of holding an expert examination thereof.

4. A contract of lease of state and (or) municipal property shall be made with a resident of a special economic zone for the validity period of an agreement on exercising technological-and- innovative activities, if a shorter term is not declared by the resident. A model form of the contract of lease, the procedure for making it and the rate of rent shall be established by the federal executive body authorised to exercise the functions of normative legal regulation in the area of establishment and functioning of special economic zones. The rent and other payments for the state and (or) municipal immovable property located on the land plots within the limits of the territory of the special economic zone shall be remitted to the budget of the appropriate level of the budget system of the Russian Federation in compliance with the laws of the Russian Federation.

5. A resident of a special economic zone shall not be entitled to transfer its rights and duties under an agreement on exercising technological-and- innovative activities to another person.

6. A model form of an agreement on exercising technological-and-innovative activities shall be endorsed by the federal executive body authorised to exercise the functions of normative legal regulation in the area of establishment and functioning of special economic zones.

Article 23. Documents Required for Making an Agreement on Exercising Technological-and-Innovative Activities 1. The person intending to obtain the status of a resident of a special economic zone shall file with the bodies in charge of managing special economic zones an application for making an agreement on exercising technological-and- innovative activities that must contain the following:

1) data on the applicants' supposed activity corresponding to the type of the special economic zone;

2) data on the state and (or) municipal property required for the supposed activity of the applicant.

2. An applicant shall attach the following to the application for making an agreement on exercising technological-and- innovative activities:

1) a copy of the certificate of the state registration;

2) a copy of the certificate of registration with a tax body;

3) copies of the constituent documents (for legal entities);

4) a business-plan whose form shall be established by the federal executive body authorised to exercise the functions of normative legal regulation in the area of establishment and functioning of special economic zones.

3. The documents specified in Parts 1 and 2 of this Article shall be accepted by the bodies in charge of managing economic zones according to an inventory thereof. A copy of the inventory bearing a note on the date of receiving the documents by the bodies in charge of managing special economic zones shall be directed (handed in) to the applicant.

4. The bodies in charge of managing special economic zones at the latest in ten working days as of the date of receiving the documents specified in Parts 1 and 2 of this Article shall render and direct to an applicant one of the following decisions:

1) on transferring the application for making an agreement on exercising technological-and-innovative activities to the expert council for technological -and-innovative special economic zones formed by the federal executive body authorised to exercise the functions of managing special economic zones;

2) on the refusal to consider the application for making an agreement on exercising technological-and- innovative activities.

5. The refusal to consider an application for making an agreement on exercising technological-and- innovative activities shall be only allowable in the following instances:

1) failure of a person to submit the documents specified in Parts 1 and 2 of this Article;

2) non-availability on the territory of a special economic zone of the state and (or) municipal property that satisfies the terms of the application and is not in the ownership or use of third persons;

3) non-compliance of the applicant's supposed activities with types of activity whose exercise is permitted on the territory of the special economic zone.

6. The bodies in charge of managing special economic zones shall be obliged to specify in the decision to deny consideration of the application for making an agreement on exercising technological-and-innovative activities reasonable grounds for such refusal. The decision may be appealed against judicially.

7. An expert assessment of a business-plan shall be effected by the expert council for technological-and- innovative special economic zones on the basis of the criteria established by the federal executive body authorised to exercise the functions of normative-and-legal regulation in the area of establishment and functioning of special economic zones.

8. At the latest in thirty working days as of the date of receiving an application and a business-plan the expert council for technological-and- innovative special economic zones shall render and direct to the bodies in charge of special economic zones one of the following decisions:

1) on supporting the business-plan;

2) on the refusal to support the business-plan.

9. The refusal to support a business plan shall be allowable in the following instances:

1) non-compliance of the business-plan with the criteria established by the federal executive body authorised to exercise the functions of normative legal regulation in the area of establishment and functioning of special economic zones in compliance with this Federal Law;

2) non-compliance of the business-plan with the terms of the application for making an agreement on exercising technological-and-innovative activities.

10. Within three working days as of the date of receiving a decision of the expert council for technological-and- innovative special economic zones the bodies in charge of managing special economic zones shall direct to an applicant a notice in writing:

1) on making an agreement on exercising technological-and-innovative activities within the time period specified in Part 1 of Article 24 of this Federal Law, provided that the expert council for technological-and-innovative special economic zones renders a decision on supporting the business-plan;

2) on the refusal to make an agreement on exercising technological-and- innovative activities, provided that the expert council for technological-and-innovative special economic zones renders a decision on the refusal to support the business-plan.

Article 24. Procedure for Making an Agreement on Exercising Technological -and-Innovative Activities

1. The bodies in charge of managing special economic zones shall prepare and make an agreement on exercising technological-and-innovative activities with an applicant under the terms specified in the application for making the agreement on exercising technological-and-innovative activities.

2. The agreement shall enter into force as of the date of its signing by the parties.

Article 25. Form of an Agreement on Exercising Technological-and-Innovative Activities

An agreement on exercising technological-and-innovative activities shall be made in writing by way of drawing up a single document to be signed by the parties.

Article 26. Validity Term of an Agreement on Exercising Technological-and-Innovative Activities

An agreement on exercising technological-and-innovative activities shall be made for a term not exceeding the time period left before termination of a special economic zone.

Article 27. Procedure for Holding an Expert Examination of Project Documentation

1. A resident of a special economic zone within the time period provided for by an agreement on exercising technological-and- innovative activities shall present to the bodies in charge of managing special economic zones the project documentation required for taking the measures provided for by its business-plan for holding an expert examination thereof.

2. The bodies in charge of managing special economic zones shall ensure holding an expert examination of project documentation at the expense of a resident of a special economic zone in compliance with the laws of the Russian Federation subject to the specifics provided for by this Article.

3. An expert examination of project documentation shall be held within the time period of forty five days at the most as of the date of submitting all necessary documentation.

4. An expert examination of project documentation shall be held by the authorized executive bodies and shall be finished by rendering a decision legalised by the bodies in charge of managing special economic zones in the form of a summary expert opinion in respect of the project documentation.

5. A procedure for interaction of the bodies in charge of managing special economic zones and the executive state power bodies of a subject of the Russian Federation authorized to hold an expert examination of project documentation, as well as a procedure for interaction of the bodies in charge of managing special economic zones and the executive administrative bodies of municipal formations authorised to hold an expert examination of project documentation, shall be established by an agreement on establishment of a special economic zone. A procedure for interaction of the bodies in charge of managing special economic zones and the federal executive bodies authorized to hold an expert examination of project documentation shall be jointly established by the federal executive body authorized to exercise the functions of normative legal regulation in the area establishment and functioning of special economic zones and by the appropriate federal executive bodies authorised to exercise the functions of normative legal regulation in the area of town-planning activity.

6. The bodies in charge of managing special economic zones shall issue building permits to a resident of a special economic zone.

Article 28. Changing the Terms and Conditions of an Agreement on Exercising Technological-and-Innovative Activities

1. The terms of an agreement on exercising technological-and-innovative activities may be changed by agreement of the parties in the procedure provided for by Part 2 of this Article.

2. If a resident of a special economic zone intends to change the terms and conditions of an agreement on exercising technological-and-innovative activities, it shall submit to the bodies in charge of managing special economic zones a business-plan whose form shall be established by the federal executive body authorised to exercise the functions of normative legal regulation in the area of establishment and functioning of special economic zones.

3. At the latest in three working days as of the date of receiving the business-plan pointed out in Part 2 of this Article, the bodies in charge of managing special economic zones shall pass over the businessplan to the expert council for technological-and innovative special economic zones.

4. The expert council at the latest in ten working days as of the date of receiving the business-plan specified in Part 2 of this Article shall render and direct to the bodies in charge of managing special economic zones one of the following decisions:

1) on the support of the business-plan;

2) on the refusal to support the business-plan.

5. Within three days as of the date of receiving a decision of the expert council for technological-and-innovative special economic zones the bodies in charge of managing special economic zones shall direct to a resident of a special economic zone a notice in writing:

1) on changing the terms and conditions of an agreement on exercising technological-and-innovative activities;

2) on the refusal to change the terms and conditions of an agreement on exercising technological-and-innovative activities.

Article 29. Termination of an Agreement on Exercising Technological -and-Innovative Activities

The validity of an agreement on exercising technological-and-innovative activities shall be terminated:

1) upon the expiry of the time period for which the agreement on exercising technological-and-innovative activities is made;

2) in the event of dissolving an agreement on exercising technological -and-innovative activities;

3) in the event of depriving a person of the status of a resident of a special economic zone;

4) in the event of preschedule termination of a special economic zone.

Article 30. Dissolution of an Agreement on Exercising Technological -and-Innovative Activities

1. It shall be allowable to dissolve an agreement on exercising technological -and-innovative activities by arrangement of the parties.

2. An agreement on exercising technological-and-innovative activities may be dissolved judicially on demand of either party in connection with a major violation of the terms and conditions of the agreement by the other party or with a major change of the circumstances.

3. As a major violation by a resident of a special economic zone of the terms and conditions of an agreement on exercising technological-and-innovative activities shall be deemed the exercise on the territory of a special economic zone of business of the activities which are not provided for by the agreement.

4. In the event of a refusal of the bodies in charge of managing special economic zones to make a contract of lease of a land plot and (or) a contract of lease of state and (or) municipal property, a resident of a special economic zone shall be entitled to make a claim with court for dissolution of an agreement on exercising technological-and-innovative activities or for making a contract of lease of the land plot and(or) a contract of lease of the state and (or) municipal property.

5. In an agreement on exercising technological-and-innovative activities may be specified other actions of a resident of a special economic zone and (or) of the bodies in charge of managing special economic zones recognizable by the parties as major violations of the agreement on exercising technological -and-innovative.

6. An agreement on exercising technological-and-innovative activities may be dissolved judicially on demand of the bodies in charge of managing special economic zones, where there is a negative summary expert opinion in respect of project documentation, if the documentation is not finished off within a reasonable time subject to the observations and proposals stated in the said opinion and is not presented for a repeated expert examination.

7. In the event of termination of an agreement on exercising technological -and-innovative activities for the reason provided for by Part 6 of this Article, the expenses borne by a resident of a special economic zone in connection with execution of the agreement shall not be reimbursed.

Article 31. Effects of Termination of an Agreement on Exercising Technological -and-Innovative Activities

1. In the event of termination of an agreement on exercising technological -and-innovative activities, a person shall loose the status of a resident of a special economic zone.

2. The person that has lost the status of a resident of a special economic zone, including in connection with a preschedule termination of validity of an agreement on exercising technological-and-innovative activities, shall be entitled to exercise business activities on the territory of the special economic zone on general terms.

3. The person that has lost the status of a resident of a special economic zone, including in connection with a preschedule termination of an agreement on exercising technological-and-innovative activities, shall be entitled to dispose of the movable and immovable property on the territory of the special economic zone possessed by it at its discretion in compliance with the civil legislation of the Russian Federation, provided that the terms established by Article 37 of this Federal Law are observed.

4. In the event of a preschedule termination of an agreement on exercising technological-and-innovative activities in connection with major violations of its terms and conditions by a resident of a special economic zone, the person that has lost the status of a resident of the special economic zone shall be obliged to pay a fine in the amount provided for by the agreement on exercising technological-and-innovative activities.

5. In the event of termination of an agreement on exercising technological -and-innovative activities, the contract of lease of state and (or) municipal property or the contract of lease of a land plot made under the terms and conditions, provided for by the agreement on exercising technological-and-innovative activities, shall be terminated.

Chapter 7. Procedure for Allotting Land Plots Located within the Limits of the Territory of a Special Economic Zone and Procedure for Using the Said Land Plots

Article 32. Procedure for Land Tenure in a Special Economic Zone

1. The bodies in charge of managing special economic zones shall manage, and dispose of, the land plots within the limits of its territory on the basis of an agreement on the establishment of a special economic zone in compliance with the laws of the Russian Federation and subject to the provisions of this Federal Law.

2. The land plots within the limits of the territory of a special economic zone may be only allotted for temporary possession and tenure on the basis of a contract of lease.

3. Tenants of the land plots within the limits of the territory of a special economic zone that have in their ownership the immovable property units created by them shall be entitled to redeem the land plots under the said units in compliance with the laws of the Russian Federation.

Article 33. Contract of Lease of a Land Plot

A model form of a contract of lease of a land plot, procedure for making it and the rate of rent shall be determined by the federal executive body authorised to exercise the functions of normative legal regulation in the area of establishment and functioning of special economic zones.

Article 34. Rent

1. The maximum rate of rent for the land plots allotted to a resident of a special economic zone on the basis of an agreement on exercising industrial -and-production or technological-and- innovative activities shall be determined by a decision of the Government of the Russian Federation on the establishment of special economic zones.

2. The rent and other payments for the land plots located within the limits of the territory of a special economic zone shall be remitted to the budget of the appropriate level of the budget system of the Russian Federation in compliance with the laws of the Russian Federation.

Article 35. Disposal of the Land Plots within the Limits of the Territory of a Special Economic Zone

A resident of a special economic zone using on a leasehold basis a land plot, which is in the state or municipal ownership, shall not be entitled to let it on sublease (subtenancy) and to transfer its rights and duties under the contract of lease to another person (transfer of lease), to grant the land plot for a gratuitous time use, as well as to put the rights of lease in pledge, or to contribute them to the authorised capital of economic partnerships and companies or to a producer's cooperative as a share.

Chapter 8. Taxation of Residents of Special Economic Zones and Customs Treatment in Special Economic Zones

Article 36. Taxation of Residents of Special Economic Zones

Residents of a special economic zone shall be taxed in compliance with the laws of the Russian Federation on taxes and fees.

Article 37. Customs Treatment of Free Customs Zone

1. A free customs zone shall mean the customs treatment under which foreign commodities are placed and used within the limits of the territory of a special economic zone without paying customs duties and value-added tax, as well as without imposing in respect of the said commodities the bans and restrictions of economic nature established in compliance with the laws of the Russian Federation on the state regulation of foreign trade activities, while Russian commodities shall be placed and used under the terms and conditions applied to exportation in compliance with the customs treatment of export making payment of excise tax and without payment of export customs duties.

2. Commodities shall be placed by residents of a special economic zone under the customs treatment of a free customs zone for the purpose of exercising by them industrial-and- production or technological-and-innovative activities.

3. The following shall be placed under the customs treatment of a free customs zone:

1) the commodities imported to the customs territory of the Russian Federation from the territories of foreign states;

2) the commodities imported to the customs territory of a special economic zone from the rest of the customs territory of the Russian Federation;

3) the commodities located on the territory of a special economic zone and acquired from the persons which are not residents of the special economic zone.

4. Commodities may be placed on the territory of a special economic zone under the customs treatment of a free economic zone for the whole period of a free economic zone's existence, except for the instances when the customs treatment of a free economic zone is terminated in compliance with the regulations of this Article.

5. Any operations are allowable in respect of the commodities placed under the customs treatment of a free customs zone, if such operations comply with the terms and conditions of agreements on exercising industrial-and-production or technological-and-innovative activities.

6. The Government of the Russian Federation. when deciding on the establishment of a special economic zone, shall be entitled to establish a list of forbidden operations in respect of the commodities placed under the customs treatment of a free customs zone.

7. Importation of commodities to the territory of a special economic zone and exportation thereof from its territory shall be effected with a permission of customs authorities.

8. The territory of a special economic zone shall be a customs control zone. Customs control shall be exercised by customs authorities in compliance with the customs laws of the Russian Federation. Customs authorities shall identify the commodities imported to the territory of a special economic zone in the procedure established by the federal executive body authorised to exercise the functions of normative legal regulation in the customs area. With the said aims in view, customs authorities shall be entitled to demand the documents proving the status of commodities for customs purposes, when importing them to the territory of a special economic zone and using them on the said territory, as well as when exporting them from the territory of a special economic zone.

9. The foreign commodities, which are imported to the territory of a special economic zone and which cannot be placed under the customs treatment of a free customs zone in compliance with the provisions of Part 1 of this Article, shall be subject to placement under other customs treatment in compliance with the requirements of the customs laws of the Russian Federation. The customs registration of such commodities shall be effected outside the territory of a special economic zone prior to their importation to the territory of the special economic zone.

10. The federal executive body, authorised to exercise the functions of normative-and-legal regulation in the customs area, shall establish the requirements as to the development, construction and planning of a special economic zone, as well as the terms of access to the territory of a special economic zone, to ensure the efficiency of customs control.

11. Residents of a special economic zone shall submit to the customs body in writing data on the commodities intended for importation to the territory of a special economic zone in compliance with the customs treatment of a free customs zone, on the operations made with them and on the commodities manufactured as a result of such operations, at the latest fifteen days before the start of each calendar year or, in respect of the first batch of commodities to be imported to the territory of a special economic zone, at the latest fifteen days before filing the customs declaration.

12. A resident of a special economic zone within a calendar year but at the most once a quarter shall be entitled to change and (or) supplement data on the nomenclature and quantity of the commodities to be imported to the territory of a special economic zone and on the operations made with them reporting the said data to the customs body at the latest fifteen days before filing the customs declaration.

13. The data, specified in Parts 11 and 12 of this Article, shall be subject to coordination with the bodies in charge of managing special economic zones, as to the conformity of the nomenclature of the commodities, their quantity and operations made with them, to the terms and conditions of an agreement on exercising industrial-and-production or technological-and-innovative activities.

14. The commodities that are not stated in the application of a resident of a special economic zone shall not be subject to placement under the customs treatment of a free customs zone.

15. The form of the application of a resident of a special economic zone and requirements to the data to be shown in it shall be determined by the federal executive body authorised to exercise the functions of normative legal regulation in the customs area.

16. The persons exercising activities on the territory of a special economic zone (residents and non-residents) shall be obliged to register the commodities, imported, exported, stored, manufactured, processed, acquired and sold on the territory of the special economic zone and to submit to the customs authorities reporting documents in respect of these commodities. Any changes concerning the commodities, that take place within the limits of a special economic zone, must be shown in reporting documents. The form of registration and of reporting documents, as well as a procedure for, and time of, submitting reporting documents to customs authorities, shall be established by the federal executive body authorised to exercise the functions of normative legal regulation in the customs area by approbation of the federal executive body authorised to exercise the functions of formulating the governmental policy and of normative legal regulation in the area of taxes and fees.

17. When placing by residents of a free economic zone under the customs treatment of a free economic zone the foreign commodities imported to the territory of a special economic zone from the rest of the customs territory of the Russian Federation or acquired from the persons which are not residents of the special economic zone, the amounts of import customs duty and value-added tax shall be paid back by the customs authority, if the exemption from import customs duties and value-added tax or their paying back are provided for in the event of actual importation of commodities from the customs territory of the Russian Federation in compliance with the customs laws of the Russian Federation.

18. When importing commodities placed under the customs treatment of a free customs zone outside the territory of a special economic zone (except for movement of commodities to another special economic zone for the purpose of their use in compliance with the customs treatment of a free customs zone) or when transferring these commodities to a nonresident of a special economic zone, the customs treatment of a free customs zone must be terminated in compliance with the customs laws of the Russian Federation and subject to the specifics established by this Federal Law.

19. When releasing for free circulation on the rest of the customs territory of the Russian Federation foreign commodities placed under the customs treatment of a free customs zone (including products of their processing, if commodities are subjected to operations not forbidden in a special economic zone, or their waste or remains) or when alienating them to the benefit of the persons that are not residents of a special economic zone, the customs authorities in compliance with the customs laws of the Russian Federation shall collect customs duties, value-added tax and excise taxes at the tax rates current on the date of acceptance by the customs authorities of the customs declaration in connection with exportation of commodities from the territory of a special economic zone to the rest of the customs territory of the Russian Federation or alienation thereof to the benefit of the persons that are not residents of the special economic zone. With this, excise taxes shall be subject to payment when releasing products of processing for free circulation, if the products of processing constitute the commodities made of foreign and (or) Russian commodities that are not excisable, when placed under the customs treatment of a free customs zone.

20. For the purpose of estimation of the customs duties payable in compliance with Part 19 of this Article shall apply the rates of the customs duties established for a foreign commodity imported to the territory of a special economic zone or the rates of customs duties established for a foreign commodity manufactured on the territory of a special economic zone as a result of making non-forbidden operations at a payer's choice.

21. A payer shall specify the system of estimation of the rates of customs duties, selected by it, in the data presented in compliance with Part 11 of this Article.

22. The system of estimation of the rates of customs duties may be changed by a payer within a calendar year in the procedure provided for by Part 12 of this Article.

23. For the purposes of estimation of the customs duties payable in compliance with Part 19 of this Article, the customs value and quantity of foreign commodities, including those subjected to the operations that are not forbidden in a special economic zone, shall be determined on the date of their placement under the customs treatment of a free customs zone without taking into account the value and quantity added, when making non-forbidden operations, in particular without taking into account the value and quantity of Russian commodities.

24. For the purpose of estimation of the value-added tax and excise taxes collectible in compliance with Part 19 of this Article, the customs value and quantity of commodities, including those subjected to the operations that are not forbidden in a special economic zone, shall be determined on the date of accepting the customs declaration by a customs body in connection of exportation of commodities from the territory of a special economic zone to the rest of the customs territory of the Russian Federation or alienation thereof to the benefit of the persons that are not residents of the special economic zone.

25. In order to determine the customs value of commodities in the instance, provided for by Part 24 of this Article, shall apply the general procedure for determination of the customs value of commodities imported to the customs territory of the Russian Federation subject to the following specifics:

1) when determining the customs value on the basis of the method of determining the cost of a transaction with imported commodities, as the customs value shall be deemed the cost of the transaction, that is, the price actually paid or payable for commodities in the event of their sale by a resident person of a special economic zone to a non-resident person of the special economic zone;

2) for the purpose of determining the customs value, as the date of crossing the customs border by the commodities to be assessed shall be deemed the date of accepting the customs declaration by a customs body in connection with importation of commodities from the territory of a special economic zone to the rest of the customs territory of the Russian Federation or alienation thereof to the benefit of non-resident persons of the special economic zone;

3) as the place of commodities' arrival at the customs territory of the Russian Federation shall be deemed the place of the commodities' exportation from the territory of a special economic zone or the territory of a special economic zone when selling commodities to a nonresident of the special economic zone without exportation of the commodities from the territory of the special economic zone.

26. When exporting Russian commodities placed under the customs treatment of a free customs zone from the territory of a special economic zone to the rest of the customs territory of the Russian Federation, as well as when alienating them to the benefit of the persons that are not residents of a special economic zone, the customs authorities shall collect value-added tax and excise taxes at the tax rates current on the date of acceptance of the customs declaration by a customs body in connection with exportation of commodities from the territory of the special economic zone to the rest of the customs territory of the Russian Federation or alienation thereof to the benefit of the persons that are not residents of the special economic zone. With this, excise taxes shall be subject to payment in respect of products of processing, if the products of processing constitute the commodities made of Russian commodities that are not excisable, when placed under the customs treatment of a free customs zone.

27. Customs registration of Russian commodities shall be effected according to the rules established in compliance with the customs laws of the Russian Federation for customs registration of foreign commodities, when released for free circulation on the customs territory of the Russian Federation.

28. For the purposes of estimation of value-added tax and excise taxes payable in compliance with Part 26 of this Article, the value and quantity of Russian commodities, including those subjected to nonforbidden operations in a special economic zone, shall be determined as on the date of accepting the customs declaration by a customs body in connection with exportation of commodities from the territory of the special economic zone to the rest of the customs territory of the Russian Federation or alienation thereof to the benefit of non-resident persons of the special economic zone. The value of the said commodities for the purposes of estimation of value-added tax shall be determined in compliance with the Tax Code of the Russian Federation subject to excise taxes ( for excisable commodities) and without including value-added tax thereto or, as regards excise taxes, without including excise taxes thereto.

29. Value-added tax and excise taxes under Parts 26-28 of this Article shall not be payable in the event of moving Russian commodities to another special economic zone in compliance with the customs treatment of a free customs zone. Commodities shall be carried between special economic zones according to the rules provided for by the customs procedure for internal customs transit in respect of foreign commodities in compliance with the Customs Code of the Russian Federation.

30. When exporting foreign and Russian commodities placed under the customs treatment of a free customs zone from the territory of a free economic zone outside the territory of the Russian Federation, import customs duties and taxes shall not be collected, while export customs duties shall be payable in compliance with the customs treatment of export, except for the foreign commodities imported to the territory of a special economic zone from the territory of a foreign state and exported outside the customs territory of the Russian Federation in an unaltered state without taking into account changes in the state of the commodities as a result of natural wear or natural loss under normal conditions of transportation and storage.

31. Customs registration of the commodities specified in Part 30 of this Article shall be effected according to the rules established in compliance with the customs laws of the Russian Federation for customs registration of commodities when exporting them under the customs treatment of export.

32. The commodities placed under the customs treatment of a free customs zone may be destroyed on the territory of a special economic zone, in the event of loss by these commodities of their commercial value, under the control (with the permission) of a customs body or alienated to the benefit of another resident of the special economic zone showing the fact of their destruction or alienation in the reporting documents to be submitted to the customs body.

33. In the event of termination of a special economic zone, the commodities located on its territory, that are placed under the customs treatment of a free customs zone, shall be subject to movement to another special economic zone in compliance with the customs treatment of a free customs zone or to placement under other customs treatment within three months as of the time of termination of the special economic zone.

34. Within the time period established by Part 33 of this Article, the said commodities for customs purposes shall be deemed temporary stored.

35. If a person with the status of a resident of a special economic zone has not moved the commodities placed under the customs treatment of a free customs zone to another special economic zone or has not placed them under other customs treatment, the customs authorities upon the expiry of the time period established by Part 33 of this Article shall dispose of the commodities located on the territory of the special economic zone in compliance with Chapter 41 of the Tax Code of the Russian Federation according to the rules stipulated for disposal of the commodities whose term of temporary storage has expired.

36. The equipment and immovable property units, which are imported to the territory of a special economic zone in compliance with the customs treatment of a free customs zone and (or) made of the commodities, placed under the customs treatment of a free economic zone, and which are possessed by resident persons of the special economic zone at the time of termination of the special economic zone, shall remain in the ownership of the said persons without paying customs duties and taxes and shall acquire the status of those being in free circulation on the customs territory of the Russian Federation.

37. Where a person looses its status of a resident of a special economic zone, including in connection with a preschedule termination of an agreement on industrial-and-production or technological-and-innovative activities, the commodities placed under the customs treatment of a free customs zone, which are possessed by it, shall be subject to alienation for the benefit of another resident of the special economic zone or to placement under other customs treatment within three months as of the date of making an entry on the loss by the person of the status of a resident of the special economic zone to the register of residents of the special economic zone.

38. Where a person, that has lost the status of a resident of a special economic zone, has not alienated the commodities placed under the custom treatment of a free economic zone or has not placed them under other customs treatment, the customs authorities upon the expiry of the time period established by Part 37 of this Article shall dispose of the commodities located on the territory of the special economic zone in compliance with Chapter 41 of the Customs Code of the Russian Federation according to the rules for disposal of the commodities whose term of temporary storage has expired.

39. In the event of loss by a person of the status of a resident of a special economic zone in connection with the expiry of the validity term of an agreement on exercising industrial-and-production activities or technological-and-innovative activities, the equipment and immovable property units imported to the territory of the special economic zone in compliance with the customs treatment of a free customs zone and (or) made of the commodities placed under the customs treatment of a free customs zone and possessed by the persons, that have been residents of the special economic zone and have honoured the terms of an agreement on exercising industrial-and- production or technological-and-innovative activities, shall remain in the ownership of the said person without paying customs duties and taxes. The said equipment and immovable property units shall acquire the status of those being in free circulation on the customs territory of the Russian Federation.

40. The commodities imported by an individual businessman and a legal entity to the territory of a special economic zone after the loss by a person of the status of a resident of a special economic zone may not be placed under the customs treatment of a free customs zone as of the day following the date of making an entry on the loss by the person of the status of a resident of the special economic zone to the register of residents of the special economic zone.

41. For the purpose of this Article, the concepts used in the Customs Code of the Russian Federation shall apply thereto. Outside the scope of regulation of this Article the provisions of the Customs Code of the Russian Federation shall apply.

Chapter 9. Guarantees Granted to Residents of Special Economic Zones

Article 38. Guarantees against Unfavourable Changes in the Legislation of the Russian Federation on Taxes and Fees

The acts of the legislation of the Russian Federation on taxes and fees, the laws of the subjects of the Russian Federation on taxes and fees, normative legal acts of local self-government bodies on taxes and fees deteriorating the position of taxpaying residents of special economic zones, except for the acts of the legislation of the Russian Federation on taxes and fees concerning taxation of excisable commodities, shall not apply in respect of residents of special economic zones within the validity period of an agreement on exercising industrial-and-production activities or technological-and-innovative activities.

Article 39. Procedure for Settling Disputes

The disputes connected with establishment and termination of a special economic zone, with failures of residents of a special economic zone to observe the terms and conditions of an agreement on exercising industrial-and- production activities or technological-and innovative activities on the territory of the special economic zone, as well as other disputes rising from the relations regulated by this Federal Law, shall be settled judicially in compliance with the laws of the Russian Federation.

Chapter 10. Final Provisions

Article 40. Termination of Special Economic Zones and Free Economic Zones

1. As of the date of entry into force of this Federal Law, the special economic zones and free economic zones, except for the special economic zones specified in Part 2 of this Article, created prior to the date of its entry into force, shall be terminated. 2. The provisions of this Federal Law shall not extend to the relations regulated by the federal law on the special economic zone in the Kaliningrad region and by the federal law on the special economic zone in the Magadan region.

Article 41. Entry of this Federal Law into Force

This Federal Law shall enter into force upon the expiry of thirty days as of the date of its official publication.

President of the Russian Federation
V. Putin

The Kremlin, Moscow
July 22, 2005
No. 116-FZ

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