This Law defines the main principles and legal standards for foreign economic activity in Turkmenistan, the procedure of state regulation, as well as powers of the state authorities of Turkmenistan in the sphere of foreign economic activity.
This Law shall be applicable to all types and forms of foreign economic relations.

The foreign economic activity of Turkmenistan means the totality of the practical actions of the state bodies, legal entities and physical persons of Turkmenistan, aimed at establishment and development of external economic co-operation with foreign states, their legal entities, physical persons, international organisations.

Article 2. The main principles of relations of Turkmenistan with foreign states in the sphere of foreign economic activity

Turkmenistan carries out foreign economic activity in accordance with the following principles:

- mutually beneficial co-operation with all states, foreign legal entities and physical persons, international organisations;

- equality of the parties;

- non-interference into the internal affairs of partners of foreign economic activity;

- observance of mutual obligations assumed according to the agreements with foreign states and international organisations;

- other generally recognised international standards, rules and terms.

Foreign economic activity in Turkmenistan is regulated by the present Law, the international agreements of Turkmenistan as well as other legislative acts of Turkmenistan which do not contradict this Law and international rules and standards.

The system of the state regulation of foreign economic activity includes:

- registration of legal entities and physical persons regardless of the form of property;

- declaration of goods and other property moved across the state border;

- procedure of export and import of production (works, services);

- measures of operative regulation of foreign economic activity.

The mentioned system is applicable to all types of foreign economic activity, including direct production affairs, research and cultural relations, coast and border, goods exchange operations, carried out by all participants of foreign economic activity.

State regulation of foreign economic activity is carried out by the bodies appointed by the Cabinet of Ministers of Turkmenistan. Their powers for regulation of foreign economic activity are determined by the legislation of Turkmenistan and by the regulations on them approved in the established order.
Interference of state authorities and officials into the economic activity of the participants of foreign economic relations shall not be allowed.

The objects of foreign economic activity in Turkmenistan are resources of all types, goods and services, produced in all the sectors and spheres of national economy, securities, scientific-technical production, intellectual and other values, with the exception of the objects that are prohibited to use in foreign economic activity.

The subjects of foreign economic activity in Turkmenistan irrespective of the forms of property may be all legal entities and physical persons, including foreign ones, international organisations operating on the territory of Turkmenistan or outside it and registered in Turkmenistan as the participants of foreign economic relations.

All the subjects of foreign economic activity irrespective of the forms of property and types of foreign economic activity have equal rights for carrying it out.
Within the frameworks of the current legislation each subject of foreign economic activity may independently determine the type, forms and areas of participation in foreign economic relations, and recruit by its own discretion in the established order on the basis of agreements or other remunerative or non-remunerative basis legal entities or physical persons needed for carrying out foreign economic activity.
The subjects of foreign economic activity have the right to open accounts in the banks of Turkmenistan.
After payment of taxes profit of the subjects of foreign economic activity, including profit in hard currency, remains with them at their full disposal.
By the decision of the subjects of foreign economic activity and in the order established by the legislation the rights to use and to dispose of the results of foreign economic activity may be transferred or assigned to other legal entities or physical persons. Interrelations of the sides in the case of the above mentioned assignment of rights are regulated by them on the basis of agreements (contracts).

The subjects of foreign economic activity are obliged:

- to carry out production and other activity in accordance with the legislative and other standards in force on the territory of Turkmenistan, and generally recognised standards and rules;

- to submit in the established order accounting and statistic reports to the state bodies regulating foreign economic activity;

- to get the results of expertise concerning the correspondence of works, researches and projects implemented within the frameworks of international co-operation to sanitary-hygienic, ecological, seismic and other requirements;

- to have a licence for the right to carry out specific types of foreign economic activity, the list of which is defined by the Cabinet of Ministers of Turkmenistan.

Turkmenistan guarantees protection of the rights and legal interests of the subjects of foreign economic activity.
Nationalisation of property of the participants of foreign economic activity shall not be allowed.
State authorities and officials are not authorised to restrict the rights of subjects of foreign economic activity, except for the cases stipulated by the legislation.
Losses caused to the subjects of foreign economic activity by the state bodies and officials, shall be compensated by them.

Turkmenistan is not responsible for the obligations of the subjects of foreign economic activity. The subjects of foreign economic activity are not responsible for the obligations of Turkmenistan.
In case contractual obligations are not observed the subjects of foreign economic activity shall bear property and other responsibility stipulated by the legislation and agreements signed.
Payments of penalties for breaching the terms of agreement as well as compensation of the damages caused, shall not release the guilty party from fulfilment of its obligations if it is not stipulated by the Law or the agreement.

Foreign economic activity of the subjects defined the Article 7 of the present Law is suspended by the specially authorised state bodies in the following cases:

- violation of the legislation of Turkmenistan on foreign economic activity, non-observance of the provisions of international agreements of Turkmenistan, as well as violation of the legislation of foreign countries resulting in economic or political damage for Turkmenistan;

- non-fulfilment of fixed orders related to export-import deliveries;

- carrying out foreign economic operations violating the statutory legal rights as well as non-sanctioned barter operations;

- rendering intentionally false information in advertisements, customs documentation as well as currency-financial and registration documents.

The decision on suspension may be changed or cancelled after elimination of the reasons causing it.
Foreign economic activity of the subjects may be terminated independently or according to the decision of a court in cases of violation of the legislation of Turkmenistan, bankruptcy or on other reasons, the list of which is determined by the Cabinet of Ministers of Turkmenistan.

Disputes of the subjects of foreign economic activity in Turkmenistan with the state authorities and between the subjects of foreign economic activity are settled in courts of Turkmenistan, if the otherwise is not stipulated by the contracts and agreements.
The present Law comes into force from the date of publication.

May 19, 1992
(With changes and amendments
by Medjlis of April 12, 1993)