New law on licensing of certain activities

The new Federal Law on licensing regulating licensing system in the Russian Federation has been enacted.

The Law provides for further cut down of the list of activities subject to licensing.

Commencement of certain activities shall be subject to notification procedure:

• manufacturing of prosthetic and orthopaedic appliances against orders of citizens;
• manufacturing and sale of special gaming equipment;
• ensuring of aviation security;
• manufacturing and repair of measuring instruments;
• exhibiting and collecting of arms.   

In some spheres licenses will be replaced by mandatory civil liability insurance (overseas shipment of dangerous cargos, towing by marine vessels, loading and unloading of dangerous cargos in sea ports).

However, 49 activities still require licenses, including medical and pharmaceutical activity, restoration of historical and cultural monuments, arms trading, fire fighting, passenger traffic.

A unified procedure of issuance of licenses shall be introduced. As a general rule a license shall be issued for an indefinite period of time (activities to be licensed are specified in part 1 of article 12 of the Law). Those licenses that were issued before the effective date of the Law in respect of activities specified in  part 1 of article 12 of the Law shall be valid for an indefinite period of time.

From 1 July 2012 some licensing procedures will be converted into the electronic format.

Licensing control has been changed: licensees will be checked within 1 year from the date of obtaining of the license, since it is the first year when the risks of damage when conducting licensed activity are the highest. Further checks should be carried out in the ordinary course - once in 3 years.

The Law shall become effective on 3 November 2011 save for some provisions for which other dates of entry into force have been established.

See: Federal Law "On Licensing of Certain Activities" No. 99-FZ of 4 May 2011.