Grodno enterprise violated the rules for concluding export and import contracts – the prosecutor’s office intervened

The Prosecutor’s Office of Grodno during the study of statistical data revealed a private enterprise, the founder of which is a state organization, with external overdue accounts receivable. This is reported on the website of the Prosecutor General’s office, writes sb.by.

This business entity was checked compliance with the legislation in the implementation of foreign economic activities.

It was established that the company committed violations when concluding export and import contracts. According to the supervisory authority, the condition contributing to the formation of external overdue receivables was deficiencies in pre-contractual, contractual and claim work.

Local regulatory legal acts of the enterprise did not contain provisions regulating the mechanism of checking the business reputation and reliability of counterparties, the procedure, conditions and terms of granting deferred payment, extending payment terms. This indicates the absence of a clear regulation of the actions of responsible persons in the conclusion and execution of foreign economic contracts.

Export contracts were concluded on the terms of deferred payment in the presence of information about the unreliability of counterparties. The facts of unjustified extension of payment terms for the delivered goods for a long period were revealed, as a result of which the debt in the state statistical reporting was not reflected as overdue.

When analyzing the import agreement, under which the enterprise has formed an external overdue receivable, it was established that this agreement was concluded on conditions that are obviously unfavorable for the enterprise: 100% prepayment, jurisdiction of disputes is assigned to the arbitration court at the location of the defendant, the absence of provisions on the seller's liability.

The company did not conduct timely claim and claim work with debtor counterparties, did not take proper measures to return foreign currency earnings to the country.

Control by the founder of the enterprise - a state organization - over its activities in this area was not properly carried out.

According to the results of the inspection, the Prosecutor of Grodno submitted to the founder of the enterprise a proposal to eliminate the revealed violations of the law in the implementation of foreign economic activity. Consideration of the act of supervision is under control.