Bill on porto franco regime expansion in Far East expected to pass final reading in State Duma
Russian legislators of the State Duma on June 24 will be considering in the 3rd reading the draft law On Amendments to the Federal Law "On the Territories of Priority Development Areas of Social and Economic Development in the Russian Federation” and the Federal Law "On the Free Port of Vladivostok", the Far East Development ministry said Thursday.
The FED Minister Alexander Galushka said the changes will be made particularly to Articles 34, 35 of the Federal Law on the PDAs to expand the list of single-industry towns included in PDAs. The decision will help improve economic situation in such towns suffering high unemployment.
The law will allow creation in such single-industry towns a special legal regime for entrepreneurs and for investment companies that might contribute to the development of new industries and sectors to overcome temporary difficulties.
By the amended law the porto franco regime will be expanded to several key ports in the Far East.
The official said that the following Far East regions may be included in the list which ports could enjoy the 'Free Port' benefits: Khabarovsk Territory (Vanino District), the Sakhalin Region (Korsakov City District), the Kamchatka Territory (Petropavlovsk-Kamchatsky), Chukotka Autonomous Okrug (Pevek).
The porto franco regime provides a 'single window' on the border, 7/24 operation of border crossing points, the simplified visa regime with eight-day visa obtained at the border and a free customs zone for residents. Residents of the Free Port will also receive tax incentives and administrative privileges, like a shorter period of receipt of permits in the construction sector. All businesses inspections are to be agreed with the FED Ministry.
The Supervisory Board will be a single governing body of the Free Port of the Far East.
