Article 189. The Increase of the Tax Base in Case of Sale of Excisable Goods and Excisable Mineral Raw Materials

1. The tax base defined according to Articles 187 and 188 of the present Code shall be increased by the amounts received for excisable goods and/or excisable mineral raw materials sold in the form of financial assistance, advance and other payments received to offset future delivery of excisable goods and/or excisable mineral raw materials whose date of sale is determined in compliance with Item 1 Article 195 of the present Code, to replenish special purpose funds for the increase of incomes in the form of interest (discount) on bills of exchange and commodity credit interest, or otherwise shall be associated with the payment for sold excisable goods and/or excisable mineral raw materials.

2. The provisions of Item 1 of the present Article shall be applied to operations on sale of excisable goods and/or excisable mineral raw materials for which ad valorem (in percentage points) tax rates are established.

3. The amounts specified in the present Article received in foreign currency shall be converted into the currency of the Russian Federation at the rate of the Central Bank of the Russian Federation effective on the date of their actual receipt.

Article 190. Features of Determination of Tax Base in Case of Sale of Excisable Goods Using Different Tax Rates

1. If the taxpayer keeps separate record-keeping of operations in the production and sale (transfer recognized as an item of taxation according to the present Chapter) of excisable goods, operations on whose sale are taxed at different tax rates, tax bases shall be defined separately on operations taxed at identical tax rates. In so doing, the amounts specified in Item 1 of Article 189 of the present Code depending on used ad valorem (in percentage points) tax rates shall be included in the appropriate tax bases.

2. If the taxpayer keeps no separate record-keeping defined in Item 1 of the present Article, a single tax base shall be established for all operations of sale (transfer) of excisable goods. In so doing, amounts stipulated in Item 1 of Article 189 of the present Code shall be included in this single tax base.

Article 191. Determination of Tax Base in Case of Import of Excisable Goods to the Customs Territory of the Russian Federation

1. If excisable goods (with allowance for provisions of Article 185 of the present Code) are imported to the customs territory of the Russian Federation, the tax base shall be defined:

1) for excisable goods concerning which firm (specific) tax rates are established (in absolute amounts per unit of measurement) - as the volume of imported excisable goods in kind;

2) for excisable goods concerning which ad valorem (in percentage points) tax rates are established as the sum of:

their customs value;

the payable customs duty.

2. Customs values of excisable goods and also payable customs duty shall be defined according to the present Code.

3. The tax base shall be defined separately for each consignment of excisable goods which are imported to the customs territory of the Russian Federation.

If a consignment of excisable goods imported to the customs territory of the Russian Federation contains excisable goods whose importation is taxed under different tax rates, the tax base shall be defined separately for each group of said goods. Similarly shall be determined the tax base if a consignment of excisable goods imported to the customs territory of the Russian Federation contains excisable goods which had been earlier exported from the customs territory of the Russian Federation for processing outside the customs territory of the Russian Federation.

4. When importing to the customs territory of the Russian Federation excisable goods as products of processing outside the customs territory of the Russian Federation, the tax base shall be defined according to the provisions of the present Article.

Article 192. The Tax Period

For the taxpayers specified in Items 1 and 2 of Article 179 of the present Code, a tax period shall be defined as a calendar month.

Article 193. Tax Rates

1. The taxation of excisable goods and excisable mineral raw materials shall be effected at the following uniform tax rates throughout the territory of Russian Federation:

Type of Excisable Good                       Tax Rate
                                       (as Percentage Points
                                       or Roubles and Kopecks
                                       per Unit)

Ethyl alcohol from all kinds of raw    14 roubles 11 kopecks
materials (in particular, raw ethyl    per 1 litre of water-free
alcohol from all kinds of raw          ethyl alcohol
materials)

Alcohol products with ethyl            98 roubles 78 kopecks
alcohol content of over 25             per 1 litre of water-free
per cent by volume (except  and        ethyl alcohol contained
for wines) and alcohol-containing      in excisable goods
products

Alcohol products with ethyl            72 roubles 91 kopecks
alcohol content of 9 to 25 per         per 1 litre of water-free
cent inclusive by volume               ethyl alcohol  contained in
(except for wines)                     excisable goods

Alcohol products with ethyl            50 roubles 60 kopecks
alcohol content of up to 9             per 1 litre of water-free
per cent inclusive by volume           ethyl alcohol  contained
(except for wines)                     in excisable goods

Wines (except for natural)             41 roubles 20 kopecks
                                       per 1 litre of water-free
                                       ethyl alcohol contained
                                       in excisable goods

Champagne and sparkling                10 roubles 58 kopecks
wines                                  per 1 litre

Natural wines                          3 roubles 52 kopecks
(except for                            per 1 litre
champagne and sparkling
wines)

Beer with rated (standardised)         0 roubles per 1 litre
ethyl alcohol content
of up to 0.5 per cent inclusive
by volume

Beer with rated (standardised)         1 rouble 12 kopecks per 1 litre
ethyl alcohol content from 0.5
to 8.6 per cent inclusive
by volume

Beer with rated (standardised)         3 roubles 70 kopecks per 1 litre
ethyl alcohol content over
8.6 per cent by volume

Tobacco articles:

Pipe tobacco                           453 roubles 60 kopecks
                                       per 1 kg

Smoking tobacco, except for            185 roubles 92 kopecks
tobacco used as raw material           per 1 kg
for producing tobacco products

Cigars                                 11 roubles 20 kopecks
                                       per piece

Cigarillos, filter cigars longer       84 roubles per 1,000 pcs
than 85 mm

Filter cigarettes, except for          61 roubles 60 kopecks
filter cigarettes longer than          per 1,000 pcs
85 mm and cigarettes, Classes
1, 2, 3 and 4 under code
GOST 3935-81

Filter cigarettes, Classes 1,          39 roubles 20 kopecks
2, 3 and 4 under code                  per 1,000 pcs
GOST 3935-81


Jewellery articles                     5 per cent

Cars featuring engines                 0 roubles per 0.75 kW
of up to 67.5 kW (90 h.p.)             (1 h.p.)
inclusive

Cars featuring engines                 11 roubles 20 kopecks
of over 67.5 kW (90 h.p.)              per 0.75 kW (1 h.p.)
and up to 112.5 kW
(150 h.p.) inclusive

Cars featuring engines                 112 roubles per 0.75 kW
of over 112.5 kW (150                  per 0.75 kW (1 h.p.)
h.p.), motorcycles
featuring engines of
over 112.5 kW (150 h.p.)

Motor petrol with octane               1,512 roubles per 1 ton
number of "80" inclusive

Motor petrol with other                2,072 roubles per 14 ton
octane numbers

Diesel fuel                            616 roubles per 1 ton

Oil for diesel and/or                  1,680 roubles per 1 ton
carburettor (injection)
engines

Natural gas sold                       15 per cent
(being transferred) on the
territory of the Russian
Federation

Natural gas sold                       15 per cent
(being transferred) to the member
states of the Commonwealth
of Independent States

Natural gas sold (being transferred)   30 per cent.
off the territory of the Russian
Federation (except for the
member states of the
Commonwealth of Independent
States)

2. The taxation of alcohol products imported into the customs territory of the Russian Federation shall be effected at the relevant tax rates specified in Item 1 of the present article.

When alcohol products with ethyl alcohol content of up to 9 per cent by volume inclusive are being sold by the taxpayers being the producers thereof taxation shall be effected at the tax rates specified in Item 1 of the present article.

When alcohol products with ethyl alcohol content of over 9 per cent by volume, except for the sale of the said products to excise warehouses of other organisations and excise warehouses being structural units of the taxpayers being the producers of alcohol products, are being sold by the taxpayers being the producers thereof taxation shall be effected at the relevant tax rates specified in Item 1 of the present article.

When alcohol products with ethyl alcohol content of over 9 per cent by volume are being sold by the taxpayers being the producers thereof to excise warehouses, except for excise warehouses being structural units of the taxpayers being the producers of alcohol products, taxation shall be effected at the rate of 50 per cent of the relevant tax rates specified in Item 1 of the present article.

When alcohol products with ethyl alcohol content of over 9 per cent by volume, are being sold by wholesalers from excise warehouses, except for the sale of the said products to excise warehouses of other wholesalers or to excise warehouses being structural units of taxpayers being wholesalers and also alcohol products brought into the customs territory of the Russian Federation, taxation shall be effected at the rate of 50 per cent of the relevant tax rates specified in Item 1 of the present article.

3. The amount of advance payment in the form of purchase of excise stamps or special regional stamps on excisable goods subject to compulsory marking shall be established by the Government of the Russian Federation and they shall not exceed 1 per cent of the set rate of the excise tax on alcohol products with ethyl alcohol content of over 25 per cent by volume.

Article 194. The Order of Calculation of Excise Tax

1. The excise tax amount on excisable goods (including in case of import to the territory of the Russian Federation) concerning which firm (specific) tax rates are established shall be calculated as the product of a corresponding tax rate and the tax base estimated according to the Articles 187 - 191 of present Codes.

2. The excise tax amount on excisable goods (including that in case of their import to the territory of the Russian Federation) and excisable mineral raw materials concerning which ad valorem (in percentage points) tax rates are established shall be calculated as the percentage share corresponding to the tax rate of the tax base defined according to Articles 187 - 191 of the present Code, and in case of separate record-keeping - as the sum received as a result of additional amounts of taxes computed separately as percentage shares corresponding to the tax rates of corresponding tax bases.

3. The total amount of excise tax in case of sale (transfer) of excisable goods shall be an amount received as a result of addition of tax amounts computed according to Items 1 and 2 of the present Article for each type of excisable good taxed at different tax rates.

4. The total amount of excise tax on excisable goods and excisable mineral raw material shall be calculated on the results of each tax period (Article 192 of the present Code) as applied to all operations in the sale of excisable goods and excisable mineral, raw material the date of sale of which (of transfer) (Article 195 of the present Code) refers to the appropriate tax period and also with allowance for all changes which increase or reduce the tax base over the respective tax period.

5. The total amount of excise tax if several types of excisable goods taxed at different tax rates are imported to the territory of the Russian Federation shall be an amount received as a result of the addition of excise tax amounts computed for each type of these goods according to Items 1 and/or 2 of the present Article.

6. If the taxpayer does not maintain separate record-keeping stipulated by Item 1 of Article 190 of the present Code, the excise tax amount on excisable goods shall be defined on the basis of the highest tax rate of those used by the taxpayer in relation to the single tax base defined for all taxable operations.

Article 195. Determination of the Date of Sale (Transfer) of Excisable Goods and/or Excisable Mineral Raw Material

1. For the purposes of the present Chapter, the date of sale of excisable goods and/or mineral excisable raw materials listed in Subitem 10 of Item 1 and Subitem 1 of Item 2 of Article 181 of the present Code shall be defined as the day of payment for said excisable goods and/or excisable mineral raw materials.

2. For the purposes of the present Chapter, the date of sale (transfer) of excisable goods which are not listed in Item 1 of the present Article shall be defined as the day of shipment (transfer) of appropriate excisable goods and/or excisable mineral raw materials.

3. For the purposes of the present Chapter, the date of transfer of excisable goods and/or excisable mineral raw materials, in particular for own needs, and also by gratuitous transfer and/or in case of swap with involvement of excisable goods and/or mineral excisable raw materials listed in Subitem 10 of Item 1 and Subitem 1 of Item 2 of Article 181 of the present Code shall be defined as the day of performance of the appropriate operation.

4. For the purposes of the present Chapter, the date of sale (transfer) of alcoholic products from an excise warehouse shall be defined as the day of the completion of operation of the regime of "tax warehouse".

If a shortage of said products is uncovered, the date of its sale (transfer) shall be defined as the day the shortage is discovered (except for cases of shortage within the limits of standards of natural loss approved by an authorized federal body of executive power).

Article 196. The Taxation Regimes Concerning Alcoholic Products

1. Storage, transportation and delivery (transfer) to buyers or to a structural subdivision of a taxpayer engaged in retail sale of alcohol products with ethyl alcohol content of over 9 per cent made on the territory of the Russian Federation shall be effected under the treatment of tax warehouse.

2. While alcoholic products are under the operation of regimes of tax warehouse, said products shall not be considered sold and there no obligation will occur to pay the excise tax concerning these products.

Article 197. Tax Warehouse Treatment

1. The tax warehouse treatment shall mean a complex of measures and activities of tax control performed by the tax authorities in compliance with Item 1 of Article 82 of this Code with regard to alcohol products from the moment of termination of their production and (or) receipt at a warehouse (hereinafter referred to as an "excise warehouse") to the time of their shipment (transfer) to purchasers or a structural subdivision of a taxpayer engaged in retail sale thereof.

2. Operation of the tax warehouse treatment shall cover the territory on which there are the industrial premises used by the taxpayer in the production of alcoholic products, and also specially erected excise warehouses for their storage and excise warehouses of wholesale organizations which are located outside this territory. It shall be forbidden to store said products prior to their shipment (transfer) to buyers or to a structural subdivision of the taxpayer engaged in retail sale thereof in places other than excise warehouses or means of transport, when carrying them under the treatment of transportation.

3. The time of shipment (transfer) of alcohol products from the excise warehouse to purchasers or to an own structural subdivision engaged in retail sale thereof shall be defined as the completion time of operation of the tax warehouse treatment.

In case of exemption of alcohol products from the excise tax in compliance with the laws of the Russian Federation on taxes and fees, the completion time of operation of the tax warehouse treatment with regard to such goods shall be the effective date of an appropriate act or another date stated therein.

4. Alcohol products under the operation of the tax warehouse treatment shall be stored under the control of officials of tax authorities in specially allocated and equipped premises.

5. Excise warehouses shall be established by organizations recognized as taxpayers under Subitem 1 of Item 1 of Article 179 of the present Code, if there is an appropriate permit issued in the procedure determined by the laws of the Russian Federation regulating production and circulation of ethyl alcohol, of alcohol and alcoholcontaining products.

6. When in excise warehouses, the alcohol products can be subjected solely to the operations aimed at ensuring their safety, controlling their quality and marking them, as well as at preparing them for sale and transportation.

7. A procedure for storing alcohol products under the treatment of tax warehouse shall be established by the Ministry of Taxation of the Russian Federation.