Ulyanovsk: Individual Entrepreneurs are prohibited to sell beer. Why? (2014-03-24)

It is referred to the ban on selling beer, beer beverages, mead, cider and poire by individual entrepreneurs in the retail outlets located in the residential units. The Concept of the document was created by the Department for Legal, Organizational and Personnel Work with participation of the Department for Government Public Security of the Ulyanovsk Region and the Minister of Agriculture, Forest Management and Natural Resources, Alexander Chepukhin.

The draft bill (Concerning Law Amendments “On Regulation of Alcohol Retail Sales in the Territory of the Ulyanovsk Region” from 11th of March 2014) will be discussed till 25th of April.

In the Ulyanovsk Region selling of products with alcohol content over 15% is prohibited from 20.00 pm till 23.00 pm and on Saturday – Sunday, in May 25, on 1st and 12th of June, in September 1st and 12th – from 8.00 am till 23.00 pm.

In case of passing the bill, individual entrepreneurs selling beer, will cease activities. By introducers’ opinion it will mend the situation with street crime and reduce the number of citizens’ appeals concerning disturbance of public peace.

“The motive for introducing this bill is dictated by many complaints of the residents. At night, beer sales are prohibited. In 2013 population drank as much beer as vodka – 2.5l. per capita. According to statistics, absolute alcohol volume increased to 40%. 75% of people die because of alcohol-related diseases and beer plays an essential role”, – noted the Consultant for Public Security of the Administration Andrey Khalain.

These are step-by-step measures for reducing alcoholization, -told Alexander Chepukhin. – It is no doubt that after introducing the document, the situation will be better. There must be special close buildings for alcohol sales where teenagers up to age 18 are not allowed. We can also use experience of European countries.

You can find the bill by the reference.

What does the law speak about? What are the limits and how is declaring performed?

According to the point 1 of the Article 18 of the Federal Law dd. 22.11.1995 №171, production and circulation of alcohol and alcohol-containing products shall be licensed, excluding production and circulation of beer and brewing products.

Special requirements to the beer sale are legislated in the Article 16 of the Federal Law № 171. According to them trading is not allowed:

– in children’s, educational and medical institutions, in sports venues and surrounding areas;
– in culture institutions excluding beer and beverage retail sale carried on by companies and individual entrepreneurs if they render food services.
– in all types of the public transport (including underground stations), in petrol station;
– in the wholesale and retail markets, in railway stations, in airports and surrounding areas, etc;
– in the military territories;
– in moving retail outlets;
– teenagers to buy alcohol. The seller has a right to require a passport. Citizens are imposed a fine in the amount of 3000 – 5000 rub, public persons – 10000 – 20000rub, legal bodies – 80000 – 100000 rub for violation.
– without accompanying documents (CMR, etc) and information about a price, a name, a producer, a country of origin, conformity certificates.

According to the point 6 of the Article 16, companies and individual entrepreneurs must have their own or tenanted fixed retail outlets, storages and also cash register equipment.

Requirements to the minimum room space (50 sq. m. – for towns and 25 sq. m. for rural settlements) and also to the minimum period of the leasing agreement (one year or more) don’t touch on the individual entrepreneurs and companies selling beer and beverages.

According to the Article 14 of the Federal Law № 171 the individual entrepreneurs, carrying on beer and beverage retail trade, must record and declare their actions.

According to RF Government Decree №815 dd. 09.08.2012 individual entrepreneurs must submit declarations to the executive authorities in electronic form or in hard copy quarterly at the place of registration.

Declaration copies shall be directed to the Federal Service for Alcohol Market Regulation in electronic form within 24 hours after submitting to the executive authorities. The individual entrepreneurs must submit declarations for the first and second quarters 2012 till September 20, 2012.

According to the Article 1 of the Federal Law coming into force from 01.03.2013, cider, poire and mead beverages are included to the list of alcohol products with the same rules of trading.

What next? Obtaining a license for retail trade by changing “IE” to “LLC” is usually followed by the limitation of the minimum registered capital not less than 1.000.000 rub. and by necessity to execute permission documents, in other words, receiving a license from regional state authorities.

Such practices in other regions will lead to the termination of many “IE” that will not be able to pay money for the license procedure and for changing a type of ownership. At the same time ousting of weak beer sellers from the market will result in strengthening of the mid and strong traders that can strike the right moment and raise beer prices.

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