New Regulation of Prices For Consumer Goods
Pursuant to Directive No. 10 of October 6, 2022 “On the inadmissibility of price increases”, the Council of Ministers of the Republic of Belarus adopted Resolution No. 713 of October 19, 2022 “On the price regulation system”.
The Resolution has been in effect since October 20, 2022 and extends its effect to manufacturers, sellers and importers of consumer goods for which maximum increments are set (importer, wholesale and trade).
The Resolution refers to a wide range of consumer goods, including food products, clothing, construction materials, cars, spare parts and some other goods.
The Resolution does not apply to: 1) public catering products; 2) used goods; 3) goods sold by duty-free shops and some other categories of goods.
It should be noted that the Resolution does not apply to service providers, works, which means that pricing in relation to works and services, as a general rule, is unregulated.
Manufacturers of Consumer Goods
Manufacturers must coordinate the increase in selling prices (setting prices for new goods) with regional executive committees, the Minsk City Executive Committee and other state bodies, depending on departmental subordination.
Approval is carried out within no more than 10 working days, and for goods with a shelf life of 30 days or less – no more than 5 working days.
In some cases, coordination is not required, for example, when setting selling prices for new goods, subject to the application of the profitability standard used to determine the amount of profit to be included in the selling prices for such goods in the amount of no more than 10%.
Importers of Consumer Goods
Selling prices for consumer goods are formed by importers using the maximum surcharge of the importer based on contract prices, customs duties, transportation costs, other expenses related to the fulfillment of the requirements established by law when importing goods, mandatory insurance costs.
At the same time, the contract prices for imported goods must be justified. When justifying the contract price, the results of the study of market conditions should be used, indicating the criteria for the selection of goods, commercial and (or) financial conditions for the delivery of goods. Justification of the contract price is an integral part of economic calculations.
Other Changes
– Prohibition for business entities on commodity exchange operations without receipt of funds (barter, exchange, set-off, novation, compensation) on the territory of the Republic of Belarus from January 1, 2023. Exceptions: 1) foreign trade operations; 2) operations between organizations that are part of the established holding; 3) coordination of the operation by the regional executive committee or other state body (organization).
– Prohibition on the stipulating in contracts of bonuses and other remuneration for the purchase, promotion of goods in relation to the goods specified in the annex to the Resolution.
– Development by trade entities and approval by executive committees of the list of goods required for sale in a retail facility (the so-called assortment lists of goods).
The Resolution also contains other rules and regulations in the field of pricing of consumer goods. Giving official explanations on the application of the Resolution is under the jurisdiction of the Ministry of Antimonopoly Regulation and Trade, as well as the State Committee for Standardization.
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