On July 11, 2024, changes to the Law of Belarus dated January 8, 2014 No. 128-Z “On state regulation of trade and public catering” (the “Law”) came into force.
Below are the key novations for business in the trade sector.
1. E-commerce has become available not only through online stores
Now the Law provides for the possibility of carrying out trade using the Internet not only through an online store, but also using other information networks, systems and resources.
In fact, this means the legalization of online trading through marketplaces and mobile applications.
At the same time, the Law establishes a number of mandatory conditions for such trade.
Thus, consumers must be given the opportunity to select products and enter into a retail purchase agreement in these networks, systems and resources.
In addition, it is necessary to take into account the provisions of Presidential Decree No. 60 dated 01.02.2010 “On measures to improve the use of the national segment of the Internet”, according to which servers hosting information networks, systems and resources through which trade is carried out must be located on the territory of Belarus.
In other words, carrying out retail trade using the Internet through an online store created and located not in the national segment of the Internet (including a social network with a server not in Belarus) does not comply with the requirements of national legislation.
Posting information about products on social networks will be considered advertising, not trade.
Thus, online trading under the Law is not applicable to most social networks (including Instagram), since their servers are located outside the territory of the Republic of Belarus.
At the same time, it is not prohibited to maintain social networks to promote the company’s goods (works, services), it is only necessary to comply with the requirements of advertising legislation. For example, an Instagram account of a trade subject with reviews of the products sold.
2. The notification procedure for inclusion in the Trade Register has been replaced by an application procedure
A trade entity, public catering entity, shopping center administration, market administration now has the right to carry out its activities only from the day the information is included in the Trade Register, and not after notification, as was previously the case.
3. The requirements for contracts between traders and suppliers have been clarified
The law establishes a number of requirements for such contracts:
- ban on the supplier’s obligation to reimburse costs associated with the disposal or destruction of unsold food products;
- prohibition, as a general rule, to enter into an agreement containing conditions for the return to the supplier of food products accepted in terms of quantity and quality and not sold by the trade entity, for which the shelf life (shelf life) is set to thirty days inclusive, or for the replacement of these goods with the same goods, or for reimbursement of their cost;
- prohibition for trade entities engaged in retail trade and suppliers of goods to enter into agreements with each other containing conditions for the provision of remuneration for the implementation by the trade entity of operations related to the trade and technological process (unloading, acceptance, etc.);
- prohibition to include in the contract an obligation to provide the supplier of food products with services aimed at their promotion.
4. The requirement for an assortment list of goods has been replaced by a requirement for a list of goods that must be available for sale in a retail facility
As a general rule, a retail trade entity is obliged to ensure the constant or during a certain period (season) availability for sale in a retail facility of goods included in the list of goods required to be available for sale in a retail facility.
5. An obligation has been established to provide certain information to government agencies
The law obliges trade entities, suppliers of goods and public catering entities to provide MART, regional executive committees, the Minsk City Executive Committee and other government bodies (in cases specified by legislative acts) at their request and within the time limits established by them information, incl. constituting a commercial and other secret protected by law.
If you have any questions or need an advice on trading activities, please contact us.
