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Dear Sirs,

ACC TO FINAL INFORMATION, as a result of amendments to the second part of the tax code of Russian Federation, which will come into effect from January 01, 2006, beginning from this date all import shipments via RZhD should be subject to VAT 18%, regardless of whether customs clearance is arranged at the station of dispatch or destination.

Moreover, RZdD is considering a question to charge VAT 18% for all import shipments by the following rules:
- for import shipments via land cross-border stations – for all cargo, which ARRIVE to the destination after 00 hours on January 01, 2006;
- for import shipments via Russian ports - for all cargo, which are taken for the transportation (DISPATCHED) after 00 hours on January 01, 2006.

Please take into consideration this information.
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