Top 3 changes to the price regulation system in Belarus
The Resolution of the Council of Ministers of the Republic of Belarus № 713 (3) (hereinafter, the Resolution), which amends Resolution of the Council of Ministers № 713 "On the price regulation system", has been published.
Top 3 changes
- The upper limit of the possible importer's mark-up shall be reduced by 10% for prices of certain listed consumer goods (Section 11 (3) of Resolution 713) that are independently imported by retailers. By contrast, for goods on this list produced in Belarus, the upper limit of the maximum trade mark-up is increased by 10% (taking into account the wholesale mark-up).
The official commentary to the Resolution notes that the changes are aimed at encouraging retailers to sell domestic goods and reduce the margins of their own imports.
It should be noted that a formal reading of the Resolution does not equate goods from other EAEU countries (e.g., Russia) with the goods produced in Belarus.
- Suppliers are prohibited from stipulating in contracts with retailers the payment of any remuneration and bonuses in relation to imported non-food consumer goods, similar to the previous prohibition on Belarusian consumer goods.
These remunerations do not include:
- incentive payments, the cases and procedure for which will be established by MART.
Imported foodstuffs are not formally covered by the ban. A number of previously established restrictions apply to remuneration and bonuses in relation to foodstuffs (e.g. under Article 19 of the Law on State Regulation of Trade and Catering with regard to the prohibition to compel the conclusion of contracts for their payment).
- The rate of profitability has been increased for producers, which does not require an agreed selling price.
This rate has been increased from 10% to 20% in order to make it easier for producers.
The Resolution also contains a number of other changes (specifying the list of consumer goods subject to price regulation, etc.).
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