On the application of the resolution
The Council of Ministers of the Republic
Belarus No. 713 dated October 19, 2022
In connection with the questions that have arisen regarding the application of the norms of Resolution No. 713 of the Council of Ministers of the Republic of Belarus dated October 19, 2022 "On the Price Regulation System" (hereinafter referred to as Resolution No. 713) when setting selling prices by peasant (farmer) farms for open-ground fruit and vegetable products, including those pledged to stabilization funds (purchased), the Ministry of Antimonopoly Regulation and Trade (hereinafter referred to as MARCH) informs the following within its competence.
In accordance with part three of paragraph 9 of Resolution No. 713, business entities that store consumer goods from stabilization funds that are not manufacturers of such goods are procurement organizations.:
selling prices for consumer goods included in the stabilization funds (purchased) are set based on the purchase price, procurement costs, packaging (the cost of packaging materials at the purchase price, wages of packaging workers with social contributions, depreciation of equipment), storage and shipping costs, taxes and other mandatory payments and the profitability standard used to determine the amount of profit to be included in the price, in the amount of no more than 10 percent.;
When forming selling prices for consumer goods, economic calculations are made confirming the level of selling prices, with a breakdown of the cost items specified in the second paragraph of part three of paragraph 9 of Resolution No. 713.
Consequently, business entities that store consumer goods from stabilization funds, including peasant (farm) farms that are not producers of such goods, set selling prices.
for consumer goods included in the stabilization funds (purchased), based on the purchase price, procurement costs, packaging (the cost of packaging materials at the purchase price, wages of packaging workers with social contributions, depreciation of equipment), storage and shipping costs, taxes and other mandatory payments and regulations profitability, used to determine the amount of profit to be included in the price, in the amount of no more than 10 percent;
We draw attention to the obligation for business entities storing consumer goods from stabilization funds that are not manufacturers of such goods to make economic calculations confirming the level of selling prices, with a breakdown of the cost items specified in paragraph three of paragraph three of paragraph 9 of Resolution No. 713.
Coordination of selling prices in accordance with the legislation on administrative procedures is not required for business entities storing consumer goods from stabilization funds that are not manufacturers of such goods.
Producers, including those who are both producers and custodians of stabilization funds, are required to coordinate the increase (establishment) of selling prices with the relevant government agency (organization) in accordance with the legislation on administrative procedures.
The coordination of selling prices by producers in relation to fruit and vegetable products of the open ground harvest of 2023 is carried out in accordance with the regulations of the administrative procedure carried out in relation to business entities under subitem 8.8-1.2 "coordination of the establishment of selling prices for goods", approved by Resolution No. 64 of the Ministry of Antimonopoly Regulation and Trade of the Republic of Belarus dated October 21, 2022.
For reference:
In accordance with subparagraph 3.4. of paragraph 3 of Resolution No. 713, manufacturers of consumer goods do not need to coordinate selling prices if selling prices for new consumer goods are set, subject to the application of the profitability standard used to determine the amount of profit to be included in selling prices for such goods in the amount of no more than 20 percent.
In accordance with the first part of paragraph 9 of Resolution 713, manufacturers, when forming selling prices for consumer goods, make economic calculations confirming the level of selling prices, with a breakdown of cost items in accordance with the procedure for planning and calculating the cost of production specified in paragraph 8 of Resolution No. 713.
In accordance with part six of paragraph 9 of Resolution No. 713, peasant (farmer) farms have the right not to make economic calculations confirming the level of selling prices for consumer goods produced by them.
Consequently, peasant (farmer) farms, for consumer goods for which they are producers or both producers and custodians of stabilization funds, have the right not to make economic calculations confirming the level of selling prices. However, they are required to set selling prices for consumer goods in a document approved by the head (another authorized person).
For reference:
In accordance with part four of paragraph 9 of Resolution No. 713, vacation chains for consumer goods, justified by economic calculations, are established by a legal entity or an individual entrepreneur in a document approved by the head (other authorized person) of the legal entity, the individual entrepreneur.
The document approving the selling chains for consumer goods, economic calculations confirming the level of selling chains, and supporting documents that are an integral part of economic calculations are stored on paper and (or) in electronic form, including on tangible media (part six of paragraph 9 of Resolution No. 713).
Since peasant (farmer) farms do not keep separate records of costs, if necessary, for pricing purposes, they can determine in a local legal act on pricing the procedure for allocating costs included in the cost of production by type (individual names) of products.
For reference:
To ensure a uniform definition of the composition of costs included in the cost of products for pricing purposes, an Instruction on the procedure for planning and calculating the cost of products for pricing purposes was adopted, approved by Resolution No. 4 of November 2022 of the Ministry of Antimonopoly Regulation and Trade of the Republic of Belarus, the Ministry of Economy of the Republic of Belarus, the Ministry of Finance of the Republic of Belarus and the Ministry of Labor and Social Protection of the Republic of Belarus. 71/15/50/68 (hereinafter referred to as the Instruction).
In accordance with paragraph 4 of the Instructions, the manufacturer of consumer goods in the local legal act on pricing determines the accounting procedure for costs included in the cost of production for pricing purposes.
Based on their common approaches, we believe that when forming the cost of production, peasant (farmer) farms can use the cost classification set out in the Instructions for pricing purposes, or be guided by the industry-specific features of planning and calculating the cost of production in the relevant industry (if any).
