PROTOCOL

of June 6, 2006

About exchange of information on control of transfer pricing between tax and customs authorities of state members of Eurasian economic community

The governments of state members of Eurasian economic community (further - EurAsEC) which are hereinafter referred to as with the Parties

in view of the Agreement on exchange of information between tax and customs authorities of state members of Eurasian economic community of January 25, 2002,

being guided by provisions of the Agreement on the Customs union and the Common economic space of February 26, 1999 and the Constitutive treaty of Eurasian economic community of October 10, 2000,

proceeding from mutual interest in strengthening of control of import and commodity exportation (works, services), timely and complete receipt of taxes, duties and other payments in government budgets of state members of Eurasian economic community (EurAsEC),

recognizing need of implementation of the state control in case of use of the transfer prices of the territories of state members of EurAsEC,

realizing need of enhancement of tax and customs control over the international transactions made by business entities of state members of EurAsEC and also behind transactions when which making the territories of state members of EurAsEC are used as transit corridor, exchange of information between tax and customs authorities of state members of EurAsEC,

wishing to render for this purpose each other assistance,

agreed as follows:

Article 1

The concepts used in the this Protocol mean the following:

"the market (free) price" - the market (free) price of goods (works, services) is recognized the price which developed in case of interaction of the demand and supply in the national market of identical goods (works, services), and in case of their absence - homogeneous goods (works, services) comparable economic (commercial) conditions;

"identical goods (works, services)" - the goods (works, services) having identical main signs. In case of determination of identity of goods their physical characteristics, quality, reputation in the market, country of source, the producer are considered, in particular. At the same time insignificant distinctions in appearance of goods can not be considered;

"homogeneous goods (works, services)" - goods (works, services) which, without being identical, have similar characteristics and (or) consist of similar components that allows them to perform the same functions and to be commercially interchangeable. In case of determination of uniformity of goods their quality, trademark availability, reputation in the market, country of source are considered, in particular;

"the transfer price" - goods price (works, services) which differs from the market (free) price which is objectively created when making the international transactions;

"competent authorities" - tax and customs authorities of state members of EurAsEC;

"control of transfer pricing" - the state control exercised by competent authorities for factual determination of use of transfer goods prices (work, service) when making the international transactions with the purpose of further adjustment of tax base according to the national legal system.

Article 2

1. Customs authorities of state members of EurAsEC within the competence provide to tax authorities of the states for transfer to tax authorities of state members of EurAsEC necessary information on goods which:

- are imported on the territory of the state and are left constantly in this territory without obligation concerning their export from it;

- are exported out of limits of the territory of the state without obligation concerning their import to this territory;

- move on the territory of state members of EurAsEC en route;

- are imported on the territory of the state and are exported out of limits of this territory for conversion.

2. Information specified in Item 1 of this Article is provided on the request constituted in form according to appendix.

Article 3

1. Tax authorities of state members of EurAsEC within the competence in case of compliance with law of the states for the purpose of control of transfer pricing communicate, concerning:

- the expenses connected with the goods delivery (transportation expenses, insurance, preexport crediting, etc.) to the consumers who are in the territory of state members of EurAsEC;

- terms and delivery conditions of shipped goods;

- terms and payment terms of the goods delivery (works, services);

- qualities of the delivered goods (works, services);

- pricings concerning conversion products;

- the market prices of goods (works, services) which developed in the markets of state members of EurAsEC;

- rates for transportation, storage and conversion of goods in the territory of state members of EurAsEC;

- other data necessary for control of transfer pricing.

2. The structure of information concerning goods (works, services) is determined by the requesting tax authority of state member of EurAsEC.

3. Exchange of information between tax authorities of state members of EurAsEC, the head of the relevant tax authority assured in accordance with the established procedure, is performed in written (on papers) or in electronic form.

4. Tax authorities of state members of EurAsEC provide information specified in Item 1 of this Article, to customs authorities of the states according to their requests.

Article 4

Information specified in Articles 2 and 3 of the this Protocol is provided by tax authority of state member of EurAsEC no later than 30 calendar days from the date of receipt of request.

Article 5

Competent authorities of state members of EurAsEC observe confidentiality of the acquired information and provide the mode of its protection according to the national legal system of state members of EurAsEC.

Competent authorities of state members of EurAsEC do not allow information transfer to the third parties.

Article 6

According to the mutual arrangement of the Parties in the this Protocol changes which are drawn up by separate protocols can be made.

Article 7

All disputes and disagreements on interpretation and application of provisions of the this Protocol are solved by negotiations and consultations between the Parties. In case of default of agreement the dispute is submitted to court of EurAsEC.

Article 8

The this Protocol becomes effective from date of delivery on storage to depositary of the third written notice of accomplishment by the Parties of the interstate procedures necessary for its entry into force which signed it.

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