OREANDA-NEWS  On 15 September was announced, that the Economy Ministry of Belarus drafted new rules of price formation for imported commodities instead of the notorious resolution #179, which introduced markup caps, Deputy Chairman of Minsk Union of Entrepreneurs and Employers Viktor Margelov told commenting on a recent meeting in the ministry.

It is planned to elaborate new rules by September 14, the day resolution #179 is to come into effect.

“The new resolution will replace resolution #43 of the Economy Ministry, which regulates price formation procedures to update pricing rules. The contract price will include the procurement price, transport costs, customs clearance fees, loan interests and insurance costs. The importer will also be allowed to use a 20% markup over the contract price, while all other parties altogether, including the retailer, will be authorized to add an additional 30% markup,” Margelov said.

The importer will not have to confirm the procurement price [the requirement was included in resolution #179].

The new norms will provide a smoother regulation of price formation, but importers will have to work in tight conditions nonetheless. The new pricing rules will come into effect on September 14, 2008, according to Margelov.

“We all hope resolution #179 will not work at all,” he added.

The new resolution is an attempt of businesses and state authorities to meet halfway.

“Some options might have been much worse, so this decision seems acceptable, although it does not suit everyone. This will be a six-month agreement, after which many products will be exempted from price regulations. A list from annex 6 of resolution #43, with around 40 non-foods and nine foods, will be used as the basis,” Margelov said.

The list may be extended every six months, he added.

Resolution #179 specifies the list of costs that importers include in prices for imported commodities. The document has a provision that maximum retail and wholesale markups must correspond to markups applied to domestically produced commodities.

The maximum markup on imported commodities must be split between all legal entities and individual entrepreneurs involved in imports and further sale of imported commodities. Importers are supposed to sell goods at their ex-factory prices plus a wholesale markup set as a result of negotiations of all concerned parties. The maximum markup is 30% for sales in retail outlets and public catering facilities.

Importers are supposed to justify contractual prices for imported goods using reliable data about price rates, exchange rates and/or wholesale prices in countries of origin.