FAQ

Why do manufacturers have to pay?

If a company manufactures recordable media, which can be used for private copying, Russian legislation obliges it to pay the blank tape levy, which will be distributed to authors, performers, phonogram and AVW producers.

This levy is set by the following legal acts:

 –  Clause 1, Article 1245 of the Russian Civil Code;
 –  Decree of the Russian Government of October 14, 2010, #829 «On remuneration for free reproduction of phonograms and audiovisual works for private use».

Why does RUR collect blank tape levy?

According to Clause 2, Article 1245 of the Russian Civil Code, collection of blank tape levy can be exercised by a CMO, which is granted a state accreditation in that sphere.

According to the Decree of the Russian Federal Surveillance Service for Compliance with the Law in Mass Communications and Cultural Heritage Protection of September 24, 2010, #167, RUR was granted the state accreditation to collect private copying levy. The Decree of the Russian Ministry of Culture of September 18, 2015, # 2440, extended the term of the state accreditation for another 10 years.

Thus, RUR is the only CMO on the territory of Russia, authorized to collect blank tape levy, distribute it and pay out to rights holders.

Why do I need an Agreement with RUR?

Agreement between RUR and recordable media manufacturer on private copying levy payment has to be signed in accordance with the Decree of the Russian Government «On remuneration for free reproduction of phonograms and audiovisual works for private use» of October 14, 2010, # 829, which was enacted on October 26, 2010.

This Agreement regulates procedure of blank tape levy payment.

Please keep in mind that even if you don’t sign an Agreement with RUR, you still incur the obligation to pay blank tape levy. Lack of a signed Agreement does not release you from the obligation to pay for private copying. All manufacturers bare that obligation from October 26, 2010.

Where can I get the Agreement form and Sales Account form?

All these forms are available at the RUR web-site. You need to click “For Manufacturers” → ”Forms of Documents”.

Which documents should I provide for signing the Agreement with RUR?

You need to provide the following documentation:

 –  Extract from the Unified State Register of Legal Entities;
 –  Certificate of Incorporation;
 –  Tax Registration Certificate;
 –  Abstract of the Company’s minutes on its CEO appointment – if the Agreement is signed by the CEO;
 –  Power of Attorney – if the Agreement is signed by an agent.

You do not need to provide original documents – only their confirmed copies, sealed and signed by the CEO or agent under power of attorney. An agent has to present the original Power of Attorney. If documents contain more than one page, they have to be bound, signed and sealed.

Can I forward a Sales Account without signing a formal Agreement with RUR?

You can forward your Sales Account either before signing a formal agreement, or after it.

What is the deadline for forwarding the Sales Account?

The Sales Account has to be forwarded to RUR within 10 calendar days after each quarter.

How can I forward my Sales Account? When is the Sales Account considered as “forwarded”?

You can forward the Sales Account the following ways:

 –  bring it personally to the RUR office (Russia, 123290, Moscow, Shelepikhinskaya naberezhnaya, 8a);
 –  forward it by registered mail with list of enclosures at the RUR address (Russia, 123290, Moscow, Shelepikhinskaya naberezhnaya, 8a).

If you bring your Sales Account personally, it is considered as forwarded on the day of your visit. If you send the form by registered mail, it is considered as forwarded on the day of dispatch.

Which documents do I have to attach to the Sales Account?

Together with the Sales Account you need to provide documentation which describes recordable media, its quantity, selling price and codes in accordance with Russian National Classification of Products:

 –  copies of recordable media sales contracts, including product specifications and delivery notes;
 –  copies of Compliance Certificates or Compliance Declarations for the sold recordable media;
 –  copies of Customs Declarations, which prove export of recordable media;
 –  copies of product reports;
 –  agent’s Power of Attorney;
 –  documents (such as work manuals, operation instructions, technical documentation etc.) which prove that listed recordable media is professional and cannot be used for private copying.

All copies have to be certifies (sealed and signed by the company’s representative). Agent’s Power of Attorney has to be presented as original document.

Which documents prove that I forwarded the Sales Account on time?

When you bring the Sales Account to the RUR office personally, RUR gives you a record statement of received documents with the date of their acceptance.
If you send the documents by registered mail, you get a list of enclosures and a notice of the letter dispatch.

How do I calculate blank tape levy which I have to pay?

The sum, which has to be paid, is 1% of recordable media selling price multiplied by the amount of recordable media actually sold. Recordable media which is used for professional purposes, which cannot be used for private copying due to its technical characteristics or which is exported outside Russia, is not included in this levy calculation.

We manufacture only professional recordable media, or only media for export. Do we have to file a Sales Account to RUR?

If you are a manufacturer of recordable media, you have to file a Sales Account to RUR. In this particular case you need to write “PROF” in the line “Category”, or to fill in the Sales Account in the section for exported recordable media. You also need to attach documentation which proves that your recordable media is either professional, or is exported abroad.

This documentation may include work manuals, operation instructions, copies of Customs Declarations, which prove export of recordable media, and other documents.

We produce recordable media, which is not professional, but due to its technical characteristics it cannot be used for private copying. Do we have to file a Sales Account to RUR?

If you produce recordable media, included in the list, approved by the Governmental Decree, you have to file a Sales Account to RUR. You need to write “NC” (No Copying) in the line “Category” and to attach documentation which proves that your recordable media cannot be used for private copying.

This documentation may include work manuals, operation instructions, technical documentation and other documents.

If we sell professional and non-professional recordable media in one batch, how can we reflect it in the Sales Account? What if some of the recordable media sold cannot be used for private copying?

A Sales Account has to be filled in for all recordable media sold. If you want to indicate different types of recordable media, you need to mark it in the line “Category”.

If your recordable media is non-professional, you need to write “LP”;

If your recordable media is professional, you need to write “PROF”;

If your recordable media is non-professional, but it cannot be used for private copying, you need to write “NC”.

Which documents and criteria indicate that recordable media is professional?

The key criteria for qualifying recordable media as professional or non-professional is consumer properties. It doesn’t matter whether recordable media is purchased by legal of physical entities, or which purposes it is imported for. If recordable media is produces primarily for home use, it cannot be qualified as professional.

Supporting documentation may include work manuals, operation instructions, technical documentation and other documents.

Which documents and criteria indicate that recordable media cannоt be used for private copying?

If your Recordable media cannot be used for private copying, you need to conform to the following conditions:

 –  your media doesn’t have its own internal memory;
 –  your media cannot be used to create copies of musical and audiovisual works from one external media to another external media.

Supporting documentation may include work manuals, operation instructions, technical documentation and other documents.

Which additional documents may RUR need to verify the Sales Account and may ask to present?

 –  documents which prove that your recordable media can be qualified as professional, or unfit for private copying;
 –  copies of Customs Declarations, which prove export of recordable media;
 –  other documents, necessary for exercising of the RUR functions.

Can third parties pay blank tape levy for me?

Yes, they can. In this case you need to forward your Mandate to RUR.

What sanctions can be imposed for failure to pay private copying levy?

Sanctions for failure to pay private copying levy are set by the Russian Administrative Offences Code. In accordance with Article 7.12 of the Code, “infringement of neighboring rights for purposes of commercialization shall lead to administrative fine. For legal entities the fine shall be from 30.000 to 40.000 Rubles, with confiscation of materials and equipment, used for reproduction of pirated copies of works, as well as confiscation of other infringement instruments”.

Thus, if a manufacturer doesn’t pay blank tape levy, he can be fined with 30.000 – 40.000 Rubles. All recordable media, listed in the Decree of the Russian Government #829 of October 14, 2010, can also be confiscated.

How shall blank tape levy be booked in accounting? Which expenditure type is that?

Manufacturers can book blank tape levy as their non-operating expenses in accordance with Subclause 20, Clause 1, Article 265 of the Tax Code of Russia.