LAW OF THE REPUBLIC OF MOLDOVA

of December 20, 2013 No. 312

About groups of agricultural producers and their associations

The parliament adopts this organic law.

Chapter I General provisions

Article 1. Subject and scope of application

(1) This law establishes the legal basis of the organization, recognition and functioning of groups of the agricultural producers integrated with the purpose of realization of agricultural products of members of group, increase in efficiency of activities, production planning, generalization of the offer and the organization of sale of agricultural products, and also condition of provision of financial support for the organization and functioning of groups of agricultural producers.

Article 2. Basic concepts

For the purpose of this law the following basic concepts are determined:

competent authority - the body of the central public management responsible for regulation of the agrofood sector;

the agricultural producer - the physical person performing business activity, or the legal entity irrespective of type of property and form of business registered in accordance with the established procedure which core activities are production, cultivation or cultivation of crops, including harvesting, and also cultivation of animals for the agricultural purposes, their content and milking;

group of producers - any legal entity, except for non-profit organizations, created by agricultural producers and recognized as competent authority according to this law which main goal are joint sales of products of members of group of producers;

the procedure of recognition - set of the actions and actions necessary for receipt of group of producers by the legal entity of the status;

the conclusion about recognition - the individual administrative act published by competent authority certifying accomplishment by the legal entity of conditions of recognition as group of producers and providing to competent person all rights provided by this law;

cost of goods sold - cost excluding VAT products of her members sold by means of group of producers, taking into account only products connected with product or group of products on which the group of producers was acknowledged. When calculating cost of goods sold the cost of the processed products is also considered if it is received from agricultural products for which the group gained recognition.

Article 3. Purposes of creation and functioning of groups of producers

The regulation of the organization and functioning of groups of producers aims:

a) strengthening of cooperation/merging of agricultural producers;

b) increase in sales volume of agricultural products;

c) steady increase in economic indicators and competitiveness in agricultural industry;

d) reducing production expenses and price stabilization of producers;

e) increase in export of agricultural and agrofood products;

f) realization of agricultural products of members by means of group of producers;

g) stimulation of use of the technologies of cultivation and the practician which are not doing harm to the environment.

Article 4. Principles of the organization of groups of producers

The principles of the organization of groups of producers are:

a) voluntary merging of agricultural producers on the basis of unity of interest and functioning on the basis of coordination of actions of group for the purpose of sales of products of members of group;

b) functioning of groups of producers on the basis of fair competition and stability;

c) organization and functioning of group of producers on one product or group of products;

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