On liberalising procedures connected with issuing a transaction passport and providing supporting documents

Pepeliaev Group highlights that the Russian Central Bank's Instruction No. 2557-U dated 25 December 2010 amended the Bank of Russia’s Regulation No. 117-I dated 15 June 2004 “On the procedure for residents and non-residents to provide authorised banks with documents and information when carrying out foreign currency transactions, and the procedure for authorised banks to keep records of foreign currency transactions and to issue transaction passports”.

There are two main changes to the currency control rules:

• A transaction passport need not be issued if the total amount of a foreign trade agreement (contract) between a resident and a non-resident exceeds the equivalent of USD 50,000 (this figure was previously USD 5,000);
• The deadline for supplying information concerning identification and other documents which are fundamental for the foreign currency transaction to be carried out has been increased from 7 to 15 days.

Please note that this change only concerns foreign trade transactions. In the case of loans and credit, as before, a transaction passport will have to be issued if the contract amount exceeds the equivalent of USD 5,000.
The Bank of Russia's Instruction No. 2557-U dated 25 December 2010 also provides for a procedure for closing a transaction passport previously issued in respect of a foreign trade agreement (contract) if the amount of the transaction does not exceed USD 50,000.

The Bank of Russia's Instruction was registered by the Russian Ministry of Justice on 8 February 2011 and will come into force 10 days after being published in the Bank of Russia’s Bulletin.

Pepeliaev Group’s lawyers have extensive practical experience in customs law and foreign trade activity and also in proceedings in cases involving administrative offences which arise from breaches of customs rules and foreign currency rules.

Our lawyers are ready to assist with advice on issues connected with the application of the customs and foreign currency legislation of the Russian Federation and the Customs Union. Our lawyers successfully represent companies before the customs authorities, currency control authorities and in court in cases involving appeals against the decisions of state supervisory authorities, and the acts and omissions of their officers. We also defend cases on administrative offences at all stages of the proceedings.

For further details, please contact:

in Moscow – in Moscow – Ivan Khamenushko, Senior Partner, at: (495) 967-0007 or by e-mail; Galina Balandina, Partner, Head of Customs and Foreign Trade Regulation Practice, at +7 (495) 967-00-07 or by e-mail; Elena Ovcharova, Head of the Administrative Defence of Business Group, at (495) 967-00-07 or by e-mail; Alexander Kosov, Head of Customs and Foreign Trade Regulation Practice Group, at +7 (495) 967-00-07 or by e-mail

in St Petersburg - Andrey Pekhovsky, Head of Corporate Practice, at (812) 333-07-17 or by a.pekhovsky@pgplaw.ru