LAW OF TURKMENISTAN

of May 19, 1992 No. 697-XII

About foreign economic activity

This Law determines the basic principles and precepts of law of foreign economic activity in Turkmenistan, procedure for state regulation, and also power of state bodies of Turkmenistan in the field of foreign economic activity.

Operation of this Law extends to all types and forms of foreign economic relations.

Article 1. Foreign economic activity

Foreign economic activity of Turkmenistan is understood as set of practical actions of state bodies, the legal entities and physical persons of Turkmenistan directed to establishment and development of the external economic cooperation with foreign states, their legal entities and physical persons, international organizations.

Article 2. The basic principles of the relations of Turkmenistan with foreign states in the field of foreign economic activity

Turkmenistan performs foreign economic activity, being guided by the principles:

- mutual benefit of cooperation with all states, foreign legal entities and physical persons, international organizations;

- equalities of the parties;

- non-interference to internal affairs of partners in foreign economic relations;

- accomplishment of the cross liabilities assumed under agreements with foreign states and the international organizations;

- other universally international standards, rules and conditions.

Article 3. The legislation regulating foreign economic activity

Foreign economic activity in Turkmenistan is regulated by this Law, international agreements of Turkmenistan, and also other legal acts of Turkmenistan which are not contradicting this Law, the international rules and regulations.

Article 4. System of state regulation of foreign economic activity

The system of state regulation of foreign economic activity includes:

- registration of legal entities and physical persons, irrespective of patterns of ownership;

- declaration of goods and other property, moved through frontier;

- export procedure and import of products (works, services);

- measures of operational regulation of foreign economic activity.

The specified system extends to all types of foreign economic activity, including direct production, scientific and technical and cultural ties, coastal and border trade, the goods exchange transactions performed by subjects of foreign economic activity.

Article 5. Powers and responsibility of state bodies in regulation of foreign economic activity

State regulation of foreign economic activity is performed by the bodies determined by the Cabinet of Ministers of Turkmenistan. Their powers are determined by regulation of foreign economic activity by the legislation of Turkmenistan and regulations on them approved in accordance with the established procedure.

Intervention of state bodies of management and officials in economic activity of participants of foreign economic relations is not allowed.

Article 6. Objects of foreign economic activity

Objects of foreign economic activity in Turkmenistan are the resources of all types, goods and services created in all industries and spheres of the national economy, securities, scientific and technical products, intellectual and other values, except for those objects which are forbidden to be used in foreign economic activity by the legislation of Turkmenistan.

Article 7. Subjects of foreign economic activity

Legal entities and physical persons, including the foreign, international organizations operating in the territory of Turkmenistan or beyond its limits and registered in Turkmenistan as participants of foreign economic relations can be subjects of foreign economic activity in Turkmenistan irrespective of patterns of ownership.

Article 8. Rights of subjects of foreign economic activity

All subjects of foreign economic activity, irrespective of patterns of ownership and types of foreign economic activity, have the equal rights to its implementation. Each subject of foreign economic activity can independently determine type, forms and the directions of participation in foreign economic relations within the current legislation, to attract at discretion in accordance with the established procedure on contractual or other paid or non-paid basis the legal entities and physical persons necessary for it for implementation of foreign economic activity.

Subjects of foreign economic activity have the right to open accounts in banks of Turkmenistan.

The profit of subjects of foreign economic activity, including in foreign currency, after tax payment remains at their complete order.

According to the solution of subjects of foreign economic activity of right of possession, use and the order can be transferred or entrusted by results of foreign economic activity to other legal entities and physical persons according to the procedure, established by the legislation. Relations of the parties in case of the specified assignment of rights are regulated by them on the basis of agreements (agreements).

Article 9. Obligations of subjects of foreign economic activity

Subjects of foreign economic activity shall:

- perform productive or other activity with observance of the legislative and other arrangements operating in the territory of Turkmenistan, the universally recognized norms and rules;

- represent to the state bodies regulating foreign economic activity, accounting and statistical records in accordance with the established procedure;

- obtain expert reports about compliance to sanitary and hygienic, ecological, seismic and other requirements of the works, researches and projects which are carried out within international cooperation.

Article 10. Guarantees of the rights and interests of subjects of foreign economic activity

Turkmenistan guarantees protection of the rights and legitimate interests of subjects of foreign economic activity.

Nationalization of property of participants of foreign economic activity is not allowed.

State bodies and officials have no right to limit the rights of subjects of foreign economic activity, except as specified, stipulated by the legislation.

The losses caused to subjects of foreign economic activity by state bodies and officials are subject to compensation by them.

Article 11. Responsibility of subjects of foreign economic activity

Turkmenistan does not bear responsibility according to obligations of subjects of foreign economic activity. Subjects of foreign economic activity do not bear responsibility according to obligations of Turkmenistan.

In case of non-compliance with contractual commitments subjects of foreign economic activity bear property and other responsibility, stipulated by the legislation and the signed agreements.

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