The Law of Ukraine

“On the System for Engineering and Technical Support
for the Agro-Industrial Complex of Ukraine”

Date of entry into force:
January 1, 2008

The present Law shall establish legal, economic and organizational principles for the formation and the functioning of the system for engineering and technical support for the agro-industrial complex, regulate the relations in the area of technical and technological maintenance and servicing of the agro-industrial complex, contribute to the development of economic conditions for creating, testing, manufacturing, selling, using, and servicing technical devices for sectors of the agro-industrial complex.

The present Law shall envisage that the system for engineering and technical support for the agro-industrial complex shall be the aggregate of subjects of relations that are in the relevant interconnections, as well as principles, forms, methods, and organizational and economic levers aimed at creating, testing, manufacturing, selling, using, and servicing technical devices for the agro-industrial complex. Article 3 of the present Law shall identify the main objectives of the system for engineering and technical support for the agro-industrial complex, which shall, in particular, include:
  • to support the needs of the agricultural production, as well as enterprises of food and processing industries with domestic technical devices;
  • to form and develop the market of technical devices for the agro-industrial complex, including the secondary market, and to expand the network of servicing enterprises;
  • to contribute to the assimilation of the results of scientific, research and engineering, as well as technological developments for the innovative development of the agro-industrial complex, and so on.

According to Article 5 of the present Law, subjects of the system for engineering and technical support for the agro-industrial complex shall be technical and technological scientific and research, research and engineering organizations and machine-testing institutions, engineering plants for tractor, agricultural and food industries, agro-technical servicing enterprises, specialized trade enterprises, leasing companies, engineering and technical departments of agricultural commodity producers, information and consultative services, educational facilities for training, professional development and attestation of technical and engineering employees and operators of technical devices, and so on.

Article 7 of the present Law shall stipulate that state management of the system for engineering and technical support for the agro-industrial complex shall be carried out, within the limits of their powers, by the Cabinet of Ministers of Ukraine, a specially authorized body of executive power in the area of engineering and technical support for the agro-industrial complex and its territorial bodies. Other bodies of executive power and bodies of local government shall cooperation with the specially authorized body of executive power in the area of engineering and technical support for the agro-industrial complex and contribute to the fulfillment of its functions.

Powers of the specially authorized body of executive power in the area of engineering and technical support for the agro-industrial complex shall include, in particular:
  • to develop a draft strategy for government technical policy in the agro-industrial complex and to fulfill measures to implement it;
  • to contribute to the set-up and activities of business entities engaged in developing and manufacturing technical devices for the purposes of engineering and technical support for the agro-industrial complex;
  • to fulfill functions of a manager of budget funds that are allocated for the development of the system for engineering and technical support for the agro-industrial complex, and so on.

According to Article 10 of the present Law, the work of enterprises, organizations and institutions of various types of ownership engaged in creating, developing, testing, manufacturing, selling, using, and servicing technical devices for the agro-industrial complex shall be based on principles of a market economy. The specially authorized body of executive power in the area of engineering and technical support for the agro-industrial complex shall develop and implement measures to create, within this system, an effective branched market network of enterprises, organizations and institutions of various types of ownership. In addition, Article 11 of the present Law shall envisage that purchase and sale of second-hand technical devices, components, assemblies, and units, as well as spare parts shall be carried out on the secondary market. Subjects of the secondary market shall be legal entities and private individuals that sell and buy second-hand technical devices, components, assemblies, and units, as well as spare parts or carry out overall repair works with respect thereto.

Article 12 of the present Law shall specify that, for the purpose of stabilizing prices and providing for the needs of agricultural commodity producers during intensive (spring field and harvesting) periods of works, the specially authorized body of executive power in the area of engineering and technical support for the agro-industrial complex shall participate, along with other interested bodies of executive power, in the development of market schemes and principles for guaranteed support of agricultural commodity producers with fuels and lubricants and shall submit them to the Cabinet of Ministers of Ukraine for approval. The specially authorized body of executive power in the area of engineering and technical support for the agro-industrial complex shall provide, throughout the year, for stable supplies of fuels and lubricants to agricultural commodity producers according to market schemes and principles for guaranteed support of agricultural commodity producers with fuels and lubricants that were approved by the Cabinet of Ministers of Ukraine.

According to Article 13 of the present Law, expenditures on developing the system for engineering and technical support for the agro-industrial complex shall be allocated annually in the State Budget by way of separate items. Internal financial control over the utilization of allocated budget funds shall be carried out by the specially authorized body of executive power in the area of engineering and technical support for the agro-industrial complex and other bodies in accordance with their powers.

According to Article 14 of the present Law, the mechanism for lending subjects of the system for engineering and technical support for the agro-industrial complex shall be established by the Cabinet of Ministers of Ukraine. For this purpose, the Government of Ukraine shall:
  • form a system for government targeted lending for technical re-equipment of the agro-industrial complex;
  • submit proposals regarding the volumes of government lending resources for the development of the system for engineering and technical support for the agro-industrial complex;
  • establish the procedure for using lending resources for technical re-equipment of the agro-industrial complex;
  • determine the volumes of partial compensation for the cost of purchased new machinery and equipment.

Article 16 of the present Law shall specify that, in the instance of importing to the customs territory of Ukraine technical devices for the agro-industrial complex, both new and second-hand devices, component parts and spare parts thereto, when analogous products are manufactured by domestic engineering enterprises, customs policy shall be implemented in the interests of national commodity producers. Customs tariff and non-tariff measures applied to export operations with domestic technical devices for the agro-industrial complex, component parts and spare parts thereto shall be implemented in the interests of domestic commodity producers and for the purpose for providing incentives to increasing export potential.

It shall be stipulated that the state shall provide for the depreciation of technical devices for the agro-industrial complex within the limits of the norms for depreciation deductions. Depreciation deductions for the depreciation of technical devices for the agro-industrial complex shall be used only according to their designation.

According to Article 20 of the present Law, the state technical supervision of the compliance of technical devices with the safety requirements and the quality of fuels and lubricants in the system for engineering and technical support for the agro-industrial complex shall be carried out by inspectorates of the state technical supervision according to the legislation. Such supervision shall be effectuated by way of inspections carried out by officials of bodies of the state technical supervision of the adherence to the requirements established by normative and technical documentation and the rules for technical operation and maintenance, tracking and accounting of technical devices and traffic safety, as well as by way of oversight of the fulfillment of the legislation in the area of the protection for consumer rights as regards purchased or repaired machinery and equipment, component parts, as well as units and assemblies thereto, as well as the protection of labor and the environment at the time of using such machinery and equipment. 

It shall be envisaged that scientific servicing of the system for engineering and technical support for the agro-industrial complex shall be carried out by scientific and research, research and engineering and machine-testing institutions and organizations with the use of a network of subjects of the common scientific and production information space. Information servicing of the system for engineering and technical support for the agro-industrial complex shall be organized by the specially authorized body of executive power in the area of engineering and technical support for the agro-industrial complex by way of:
  • forming the common information space with its own computerization means, setting up information and consultative, as well as advisory services with databases on technical devices for the agro-industrial complex, spare parts, as well as units and assemblies thereto, and on their producers, and so on;
  • disseminating objective information about new technical devices and technologies, effective and efficient forms of technological and technical service with the use of the mass media, and holding fairs, exhibitions and organizing other forms of popularization;
  • publishing catalogues of new technical devices for the agro-industrial complex, recommendations for their utilization, the institution of innovative technologies for manufacturing, storing and processing agricultural products.

Article 24 of the present Law shall establish that international cooperation in the area of engineering and technical support for the agro-industrial complex shall be carried out according to the legislation and international treaties and agreements of Ukraine, in particular, by way of:
  • ensuring Ukraine’s participation in international programs for creating, manufacturing, servicing, and using technical devices, as well as for developing and instituting innovative technologies;
  • exchanging new technologies and technical devices for manufacturing, storing and processing agricultural products with foreign enterprises;
  • organizing joint enterprises and productions with foreign companies for the manufacturing of agricultural machinery and equipment;
  • attracting foreign investment for the development of the engineering and technical support for the agro-industrial complex, and so on.
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