Belarusian Sellers Can Get Incentive Payments From Importers

On June 16, 2023, the Ministry of Antimonopoly Regulation and Trade of the Republic of Belarus (MART) passed the Resolution developing the Government's act on the price regulation system. This Resolution regulates pay to the retailers permitted by the Government – incentive payments.

Incentive payments are consumer goods suppliers' (importers') bonuses to retailers for the purchase of a certain amount of goods or even more, their sold out or vend with special events, delivery, repair, or technical operation at the seller's expense.

Incentive payments are applicable to two categories of consumer goods:

Consumer goods produced in Belarus included in the List, approved by the Government Resolution on October 19, 2022, No. 713 (List).

Nonfood goods imported to Belarus included in the List.

Importers have the right to establish incentive payments for such goods as fabric and yarn, clothes, shoes, furniture, plates and dishes, flatware, cars, and spare parts, etc.

Note: MART put 71 categories of food goods for which it is prohibited to determine incentive payments. Such a list involves meat, milk products, cereals, patisserie, etc.

Consumer goods importers set the incentive payments amount themselves. The legislation does not stipulate limits for these payments, but it determines the pricing procedure.

Incentive payments count as a percentage of purchased, sold, delivered goods' price for a certain period. However, the VAT tax paid by retailers and the sales return price are not included in the goods' price.

For the importer, MART has defined three conditions for incentive payments to the retailer:

• The importer and the retailer must define the cases of incentive payments, terms, conditions, amounts, and the order of their payment in the supply contract.
• The retailer can receive incentive payments after full payment for the relevant goods.
• The importer must establish equal conditions for the payment of incentive payments for all Belarusian retailers.

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