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Agreement on general terms and mechanism of support of development of production cooperation of the companies and industries of the State Parties of the Commonwealth of Independent States

of December 23, 1993

(as amended on on April 15, 1994)

The governments of the State Parties of this agreement which are hereinafter referred to as - the Parties,

in pursuance of the decisions of Council of heads of states of the Commonwealth made on May 14 and on September 24, 1993 in Moscow and also for goal achievement and the principles of Economic union;

considering the developed technological interrelations between scientific and technical potential productions of the states;

recognizing crucial role of direct production interaction of business entities of the State Parties of the Commonwealth in creation of the Common Economic Space based on the market relations;

aiming to provide favorable conditions for maintenance and mutually beneficial development of production cooperation and direct connections between the companies and industries within the Commonwealth,

agreed as follows:

Article 1

The parties will take effective measures on ensuring the state support of implementation and development of cooperation between the companies of all patterns of ownership, industry and cross-industry complexes on the basis of their direct production connections, and also within financial and industrial groups and transnational production associations, joint businesses.

Article 2

The parties will pursue coordinated policy in the field of development of the international specialization and cooperation of production, conditions of their implementation; determinations of priorities in industries; assistance to development and realization of joint projects and programs; carrying out multilateral coordination of production, including the sphere of conversion of defense industries.

Article 3

The parties agreed that:

deliveries of goods in cooperation are understood as supply of raw materials, the materials, nodes, details, spare parts, procurements, semifinished products, component parts and other products of industry and cross-industry appointment which are technologically interconnected and necessary for joint production of end products;

provision of services is understood as project, repair work, maintenance and technological transactions;

deliveries within customs regimes of conversion of goods are understood as deliveries of goods in accordance with the terms, established by the customs legislation of the Parties if other is not specified in this agreement.

Article 4

The parties are recognized that the main link of production cooperation and direct connections are agreements (contracts) which are signed by business entities based on the corresponding intergovernmental, industry and interservice agreements and before creation of custom union form the basis for customs authorities in case of the omission of goods delivered in cooperation through border. The customs clearance of goods is performed according to this agreement and according to the procedure, provided by the customs legislation of the Parties.

Article 5

The parties not apply import and export duties, taxes, excises and quantitative restrictions to goods delivered in cooperation and within customs regimes of conversion, and also the provided services.

The parties agreed that their competent organizations will develop specific mode of operation of this Article.

Article 6

The procedure for deliveries of the special components intended for the arms production and military equipment and also other specific goods which are subject to non-tariff measures of regulation for the purpose of observance of the established international guarantees is determined by free intergovernmental agreements.

Article 7

The parties will not interfere with opening of accounts in the banks according to the procedure and in the terms provided by their national legal system. The parties will charge to the relevant organizations to carry out work on rapprochement of the legislation and practice of managing in this sphere.

The parties agreed to abstain from applications for payment of the delivered goods (works, services) in freely convertible currency.

Article 8

The parties recognize that to the companies of the Parties which signed this agreement sell products made by them (works, services) at the prices determined by them by approval among themselves.

The parties agreed to provide creation of the conditions necessary for free implementation of calculations for deliveries of products and the services specified in Article 3 of this agreement.

The procedure for opening and maintaining mutual accounts is established according to the arrangement between the Central (national) Banks of the Parties.

Article 9

The parties in necessary cases will approve conditions of loan granting and the investments stimulating development of cooperation in the knowledge-intensive productions and is export the oriented industries, and also release of import-substituting products.

Article 10

The parties agreed that raw materials, the materials and components delivered within this agreement are not subject to re-export to the third countries, including to foreign physical, legal entities or the international organizations without written consent authorized body of the state - the supplier.

Article 11

The parties agreed for the purpose of development of integration processes in the production sphere to carry out consecutive work on coordination and rapprochement of regulations of the national legal system concerning business entities regarding regulation of cooperation bonds of the companies and industries.

Article 12

The parties will organize joint study of the following problems:

development of standard agreements and agreements on long-term production cooperation;

carrying out marketing, leasing researches and organization of exhibitions, provision of promotion services;

development between the State Parties of the Commonwealth and other interested states of the modern information communications providing assistance in search of partners, preparation, the conclusion and agreement performance (contracts);

implementation of joint actions for training of specialists.

Article 13

This agreement is subject to ratification by the Parties according to their constitutional process and becomes effective after delivery to the state - to depositary of the third ratification letter.

Instruments of ratification are given to depositary of this agreement - to the Government of the Republic of Belarus. The depositary notifies all Contracting Parties and the joined states on each document checked.

This agreement is open for accession of any State Party of the Commonwealth of Independent States, and also the third countries recognizing its provisions in case of the consent of agreement parties.

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