RESTRICTED
WORLD TRADE WT/ACC/KAZ/10
25July1997
ORGANIZATION(97-3142)
Working Party onthe Original: English
Accession ofKazakstan
ACCESSION OFKAZAKSTAN
Questions andReplies
totheMemorandum ontheForeign Trade Régime
(Document WT/ACC/KAZ/3)
Additional questions submitted byMembers andthereplies thereto provided bytheauthorities
ofKazakstan arereproduced hereunder.
_______________
Table ofContents
Question Page
II. ECONOMIC POLICIES 1-3 1
IV. POLICIES AFFECTING TRADE INGOODS
1. Import Regulations
(a) Registration requirements forengaging inimporting 4-5 4
(b) Characteristics ofthenational tariff andnomenclature 6-10 6
(d) Other duties andcharges, specifying anycharges for
services rendered11-14 8
(e) Quantitative import restrictions, including prohibitions,
quotas andlicensing systems15-18 9
(f) Import licensing procedures 19 10
(h) Customs valuation 20 10
(k) Application ofinternal taxes onimports 21-33 11
(l) Rules oforigin 34 15
(m)(n)(o) Anti-dumping, Countervailing Duties, Safeguards 35-37 16
2. Export Regulation
(d) Export licensing procedures 38 16
3. Internal Policy Affecting Foreign Trade inGoods
(a) Industrial policy, including subsidy policies 39-41 17
(b) Technical regulations andstandards, including measures
taken attheborder withrespect toimports42-46 18
(c) Sanitary andphytosanitary measures 47 20
(d) Trade-related investment measures 48-49 20
(f)(g) Freezones andfreeeconomic zones 50 21
(k) Trade agreements leading tocountry-specific quotas
allocation51-52 22
(l) Government procurement 53-55 22WT/ACC/KAZ/10
Pageii
Question Page
V. TRADE-RELATED INTELLECTUAL PROPERTY
REGIME
1. General
(c) Membership ininternational intellectual property
conventions andregional orbilateral agreements56-58 23
(e) Feesandtaxes 59-60 24
2. Substantive Standards ofProtection, Including Procedures of
theAcquisition andMaintenance ofIntellectual Property
Rights
(b) Trademarks, including service marks 61-63 25
(c) Geographical indications, including appellations oforigin 64-67 26
(d) Industrial designs 68-69 28
(e) Patents 70-71 28
4. Enforcement 72-73 29
VI. TRADE-RELATED SERVICES REGIME 74-77 30
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC
RELATIONS WITH THIRD COUNTRIES
2. Economic Integration: Customs Union andFreeTrade
Agreement
(b) Customs union agreements 78-80 32
(c) Freetrade agreements 81 34
ATTACHMENT A1: Page
LawoftheRepublic ofKazakstan concerning State Support toDirect
Investments intheRepublic ofKazakstan
Listofthemost important objects forattraction ofdirect domestic and
foreign investments fortheperiod tilltheyear200036
43
LawoftheRepublic ofKazakstan onintroduction ofamendments and
additions intotheDecree ofthePresident oftheRepublic ofKazakstan
having force oflaw"Ontaxes andother compulsory payments tothe
budget" andonrecognition ofcertain legislative actsaslosing theirforce45
LawoftheRepublic ofKazakstan onState Procurement
TheLawoftheRepublic ofKazakstan onAnti-Dumping (Draft)47
60
Protocol onwithdrawals from thefreetrade regime totheAgreement on
FreeTrade between theGovernment ofKazakstan andtheGovernment
oftheKyrgyz Republic, asof22June199579
Protocol onwithdrawals from freetrade regime totheAgreement on
FreeTrade between theGovernment ofKazakstan andtheGovernment
oftheMoldova Republic, asof26May199581
Protocol onwithdrawals from thefreetrade regime totheagreement on
freetrade between theGovernment ofKazakstan andtheGovernment of
theTadjik Republic, asof22November 199583
Resolution oftheGovernment ofTheRepublic ofKazakstan of
14February 1997, No.217"Measures onmaking order inproduction,
import andtrade ofethyl spirit andalcohol products intheRepublic of
Kazakstan"85
1English onlyWT/ACC/KAZ/10
Pageiii
Page
Resolution oftheGovernment oftheRepublic ofKazakstan No.907of
30May1997, on"Excise ratesforimported excisable goods andthe
norms ofimportation ofexcisable goods which arenotsubject toexcise
dutythrough customs border oftheRepublic ofKazakstan bynatural
persons"87
Resolution oftheGovernment oftheRepublic ofKazakstan ofProvision
ofOfficial Transfers toOblast Budgets of22April 1997, No.61994WT/ACC/KAZ/10
Page1
II. ECONOMIC POLICIES
Question 1:
Wewould begrateful forinformation ontheState share intheremaining natural monopolies
andtheir share ofGDP.
Answer:
Thefollowing table provides thelistofallnatural monopolies maintained bytheNational
Anti-Monopoly Committee. Inaddition, theoblast offices oftheAnti-Monopoly Committee maintain
separate listsofnatural monopolies operating within thelocalmarket. Thelocalnatural monopolies
consists ofpublic utilities, water supply, railway transportation, electric power production and
distribution, gassupply, communication services (tariffs forlocal telephone services andlease of
communication channels), andmanagement ofAirnavigation. Natural monopolies areincluded on
theoblast listofnatural monopolies iftheirgeographic market islimited totheoblast orlocalmarket.
Kazakstan plans toeliminate inthenearfuture gasprocessing andpower generation fromthe
listofnatural monopolies atboththenational andlocallevels. Thecreation ofcompetition forairport
services isnotcurrently possible duetotechnological andeconomic reasons. Therefore, airport services
were recently added tothelistofnatural monopolies.
Theshare ofGDP bynatural monopolies isapproximately 3percent.
Name ofNatural Monopoly Entity State Shares
(%)
A. Transportation ofOilandGasbyPipelines
1. JSCKazaknefteprovod 100
2. JSCBatystransgas 90
3. State enterprise Kostanaitransgas 90
4. JSCAlaugas 92
B. Gasprocessing (production ofliquefied gas)
5. JSCAtyrau oilrefinery 53.1
6. JSCPavlodar oilrefinery 87.9
7. JSCShymkentneftorgsynthes 0
8. State enterprise Kazak GasProcessing Plant 100
9. JSCTengizchevroil 25
C. Railway transport enterprises (cargo andpassenger transportation)
10. Republic State enterprise Kazakstan Temir Zholy 100
D. Communication enterprises
11. National JSCKazaktelecom (tariffs forlocaltelephone services and
lease ofcommunication channels)50
E. Power Transmission
12. JSC Kazakstani electric network management company 100
13. JSCRemote electricity transmission 100
14. JSCAlmaty Power Consolidated Company 0WT/ACC/KAZ/10
Page2
Name ofNatural Monopoly Entity State Shares
(%)
F. Power Generation
15. JSCAlmaty Power Consolidated Company 0
16. LtdCoEnergoproject Zhambyl GRES 0
17. JSCKaraganda GRES-2 0
18. JSCEuro-Asian energy corporation 0
19. JSCAES-ST Ekibastuz 0
20. JSCEkibastuz GRES 2 100
G. Water system
21. State enterprise using channel Irtysh-Karaganda 100
22. JSCKazaknefteprovod 100
23. State enterprise Belovodskyi water pipe-line 100
H. Air-navigation entities, administration ofairtraffic
24. State enterprise Kazairnavigation 100
I. Airport services (takeoff andlanding, ensuring airsafety, parking, servicing of
passengers, maintaining andservicing aircraft intransit, andprovision ofaviation
fuel-lubricant materials)
25. JSCAkmola Airport 100
26. JSCAktau International Airport 100
27. JSCAktobe International Airport 0
28. JSCAlmaty Airport 100
29. JSCAtyrau Airport 100
30. JSCATMA -Atyrau Airport andtransportation 50
31. JSCTorgavia 100
32. JSCBalkhash cityAirport 100
33. JSCKrylia Taraza Air-company (Taraz Wings) 100
34. JSCZheskazgan AirCompany 100
35. JSCSary-Arka Airport 100
36. JSCKokshetau Air-Company 100
37. JSCKostanai Airport 100
38. JSCSyrSunkary 100
39. JSCIrtysh-Avia Air-Company 100
40. JSCPetropavlovsk airport 100
41. JSCSemeiavia 100
42. JSCZhetysu Air-Company 100
43. JSCAkzhol International Airport 100
44. JSCVostokavia 100
45. JSCShymkent Airport 100WT/ACC/KAZ/10
Page3
Question 2:
Could Kazakstan please provide anupdate onthepassage ofthedraft lawonstate support
fordirect investment which weunderstand willmake provision fortheconclusion of
contracts between theState Committee onInvestment ontheonehand, andinvestors onthe
other -foreign orKazak. These contracts willprovide foradditional preferences forthe
investor. Could Kazakstan please elaborate inparticular on:
(a) itsinteraction withexisting laws, i.e.thelawsonoilandonsubsurface; theTaxCode;
andLawonLand Ownership Rights;
(b) thedevelopment ofcriteria forawarding such contracts, especially those relating to
export-oriented production.
Answer:
Please findinAttachment Aacopy oftheLawonState Support toDirect Investment of
28February 1997 andalistofthepriority sectors which havebeenapproved bythePresident of
Kazakstan inaccordance withArticle 6ofthislaw. Please notethatinvestments inthehydrocarbon
andhardrockmineral sectors arenotamong thepriority sectors. Accordingly, there hasbeenno
"interaction between theLaws onOilandTheSubsurface andItsUtilisation". While Articles 2and
7(1)(1) provide fortheopportunity thattheStateCommittee mayagree toprovide "State in-kind grants
ofproperty andproperty rights" inconnection withtheircontracts withinvestors, noadjustments have
beenmade totheLawonLand Ownership Rights. Finally, amendments totheTaxCode wereadopted
concurrently withtheadoption oftheLawonState Support toDirect Investment. Acopyofthose
amendments isprovided inAttachment Aforyourreview andreference.
Thecriteria forawarding ofcontracts aredefined inPresidential Decree No.3445 of
5April 1997 which isprovided inAttachment A.
Question 3:
CouldKazakstanpleaseprovideanupdateonthedraftlawonLandOwnershipRights,particularly
withrespect totiming andprovision forforeign ownership.
Answer:
ThePresidential decree having theForce ofLaw No.2717 OnLand wasenacted
22December 1995. According tothislaw,foreign physical andlegalpersons maynotownlanddirectly
intheRepublic ofKazakstan. Inorder toownland, aforeign physical orlegalperson mustfirstform
aKazak legalperson. Theprincipal policy reason behind thisrequirement istoensure thatowners
ofKazak landaresubject tothejurisdiction oftheRepublic ofKazakstan. Foreign ownership ofland
isnotallowed where landisusedforthepurpose ofpersonal farming, horticulture ordacha construction.
Themain reason isthatthistypeoflandislimited.
There areplans toamend thislawbytheendof1997. Kazakstan, however, hasnotyetdecided
whether ornottolifttheabove mentioned restrictions in1997.WT/ACC/KAZ/10
Page4
IV.POLICIES AFFECTING TRADE INGOODS
1. Import regulations
(a) Registration requirements forengaging inimporting
Question 4:
With reference toKAZ/6/Add.2:
Questions 34-35: What isthecostforregistration? Approximately howlongdoestheregistration
process take?
Question 51:Sub-central authorities maylevythefollowing fees:registration oflegal persons,
feeforregistration ofnatural persons engaging inentrepreneurial activities, feeontheright to
beengaged incertain types ofactivity (notdefined). Arethese feessetatthesame costthroughout
Kazakstan? Ifso,please elaborate. What other regional differences arethere intheregistration
process?
Answer:
According toGovernment Resolution No.1405 of19November 1996, theregistration fee:
(i) forregistration ofestablishments financed bymeans ofStatebudget isonemonthly evaluation
index;
(ii) forregistration oflegal persons inother forms, theirbranches andrepresentative offices is
20monthly evaluation index;
According toArticle 9ofPresident ’sDecree, Having theForce ofLaw"OnStateRegistration"
of17April 1995, theregistration process shalltakenomore than15daysfromthedayofsubmission
oftheapplicationandallrequireddocuments.Theabovementionedperiodisinterruptedfortheduration
thatmayberequired toeliminate bytheapplicant anydefects intheapplication andattached documents.
Inaddition, thisperiod doesnotinclude theadditional timerequired toobtain thestatistics card(one
tothree days). Inpractice, legalpersons areabletoregister within tenbusiness days. There areno
regional differences intheregistration process.
Thefeeforregistration ofnatural persons engaged inentrepreneurial activities isfourtimes
themonthly evaluation index. Exempt frompayment ofregistration feeforengaging inentrepreneurial
activities arenatural persons: (i)working infarms; (ii)conducting onetimework onthebasisoflabour
contract andother civillawcontracts; (iii)engaging insaleoftheirproperty, aswellasproduced,
processed, purchased products, including imported industrial andfoodgoods apart from wholesale
andretail trade network inspecial allotted places orthrough second-hand shops; (iv)natural persons
whose profit frommarketing ofwork andservices (conducting ofwork andservices) doesnotexceed
20evaluation index peryear. Disabled persons; Great Patriotic Warparticipants andpersons equated
tothem; Heroes ofSoviet Union andHeroes ofSocialistic Labour; persons awarded byrank"Halyk
Kaharmany", byorder ofGlory ofthree degrees andorder "Otan"; pensioners; mothers having many
children awarded byrank"Altyn-alka" and"Mother-heroes" shallpay50percentoftheregistration
fee.WT/ACC/KAZ/10
Page5
Thefeefortherighttobeengaged incertain types ofactivities means thefeeforobtaining
licenses toperform activities subject tolicensing according totheLawonLicensing (seeTable A7.5
ofAnnex 7ofWT/ACC/KAZ/3 forthelistofactivities subject tolicensing). Thefeeforobtaining
licenses inKazakstan iscurrently 20monthly evaluation index, according toGovernment Resolution
No.1127 of16August 1995, which must bepaidannually.
Allfees,mentioned above, apply equally throughout theRepublic ofKazakstan atboththe
central andlocallevels.
Question 5:
Weunderstand that, asregards setting upa"representative office", theprocedure regarding
temporary imports hadchanged substantially: companies willhavetopayduties fortemporary
imports aswell. Please confirm whether thisisthecaseornot.
Wewould urge theKazak Government tominimise thefrequency ofchanges toregulation in
thisarea(andothers) tomake anychanges necessary withamaximum amount oftransparency
andprior notification.
Answer:
Under theregime oftemporary importation, certain categories ofgoods (please seeannexes
ofGovernment Resolution No.342of25March 1996 provided totheWTO inAugust 1996:
WT/ACC/KAZ/4) thatareimported temporarily intotheRepublic ofKazakstan andexported inthe
same statewithin aone-year period areexempt frompayment ofcustoms duties andtaxes. Itisnot
thecasethatcompanies willhavetopayduties ortaxes fortemporary imports forthese categories
ofgoods where theexportation ismade within thedefined period. Customs mayextend theone-year
period foroneadditional year. Inthecaseofsuchanextension, however, theimporter willberequired
topaypartial dutyonthegoods. Thatdutyamount iscalculated asthreepercentofthedutychargeable,
hadthegoods beenentered forfreecirculation, foreachfullorpartial calendar month thatthegoods
remain inKazakstan beyond oneyear.
Withsome exceptions, allother goods maybeimported foraperiod ofuptotwoyears under
apartial exemption fromdutyandtaxes. Theamount ofdutypayable isalsocalculated asthreepercent
ofthedutychargeable, hadthegoods beenentered forfreecirculation, foreachfullorpartial calendar
month thatthegoods remain inKazakstan.
Goods noteligible fortheregime oftemporary importation are:consumable materials and
samples, food, beverages (including alcohol) andtobacco, unless imported foradvertising or
demonstration purposes insingle units, goods subject toquota, andindustrial wastes.
Thecurrent regime oftemporary importation wasestablished bytheDecree ofthePresident
oftheRepublic ofKazakstan "OnCustoms Business intheRepublic ofKazakstan", dated 20July1995
(the"Customs Code"). Government Resolution No.342,25dated March 1996, ("On Some Issues
ofApplying theRegime ofTemporary Importation (Exportation) ofGoods") established thecategories
ofgoods eligible forcomplete exemption from customs duties andtaxes when exported within one
yearofimportation. Theregime hasnotsubstantially changed since thattime. On3April 1997, the
State Customs Committee issued further rules concerning customs control andprocessing ofgoods
under thetemporary import regime.WT/ACC/KAZ/10
Page6
(b) Characteristics ofthenational tariff andnomenclature
Question 6:
WillKazakstan beabletomove totheHS1996 nomenclature inApril?
Answer:
Starting on15June1997, Kazakstan adopted HS96asitstariff nomenclature..
Question 7:
Isthecustoms tariff outlined inWT/ACC/KAZ/3, page 77stillvalid? Ifnot,whatarethechanges?
Answer:
TableA1.35ofWT/ACC/KAZ/3(page77)providestheTrade-WeightedAverageImportTariff
Rates based on1995 import dataandprevious customs tariff rates. Thefollowing tableprovides the
same based on1996 import dataandcurrent customs tariff rates.
Trade-Weighted Average Import Tariff Rates
Chapter 1 5.00% Chapter 33 12.64% Chapter 65 19.04%
Chapter 2 27.72% Chapter 34 3.35% Chapter 66 20.00%
Chapter 3 10.12% Chapter 35 5.00% Chapter 67 20.00%
Chapter 4 15.50% Chapter 36 30.00% Chapter 68 15.00%
Chapter 5 15.00% Chapter 37 9.30% Chapter 69 24.74%
Chapter 6 3.41% Chapter 38 1.11% Chapter 70 13.96%
Chapter 7 15.00% Chapter 39 12.36% Chapter 71 39.04%
Chapter 8 11.87% Chapter 40 8.18% Chapter 72 12.50%
Chapter 9 9.28% Chapter 41 23.95% Chapter 73 19.96%
Chapter 10 5.40% Chapter 42 15.58% Chapter 74 5.00%
Chapter 11 10.04% Chapter 43 9.73% Chapter 75 0.00%
Chapter 12 0.00% Chapter 44 19.90% Chapter 76 0.00%
Chapter 13 5.00% Chapter 45 5.00% Chapter 78 5.00%
Chapter 14 15.00% Chapter 46 25.00% Chapter 79 5.00%
Chapter 15 11.28% Chapter 47 25.00% Chapter 80 5.00%
Chapter 16 19.03% Chapter 48 8.92% Chapter 81 15.00%
Chapter 17 14.19% Chapter 49 2.96% Chapter 82 9.35%
Chapter 18 20.45% Chapter 50 5.00% Chapter 83 20.00%
Chapter 19 23.90% Chapter 51 20.00% Chapter 84 0.13%
Chapter 20 17.01% Chapter 52 19.32% Chapter 85 3.70%WT/ACC/KAZ/10
Page7
Chapter 21 12.14% Chapter 53 7.87% Chapter 86 0.13%
Chapter 22 83.06% Chapter 54 8.98% Chapter 87 5.20%
Chapter 23 16.06% Chapter 55 5.00% Chapter 88 0.00%
Chapter 24 19.91% Chapter 56 7.59% Chapter 89 13.19%
Chapter 25 21.00% Chapter 57 30.00% Chapter 90 3.04%
Chapter 26 0.71% Chapter 58 25.00% Chapter 91 22.64%
Chapter 27 2.03% Chapter 59 12.32% Chapter 92 14.62%
Chapter 28 4.70% Chapter 60 8.97% Chapter 93 30.00%
Chapter 29 0.00% Chapter 61 26.33% Chapter 94 30.54%
Chapter 30 0.00% Chapter 62 24.45% Chapter 95 16.41%
Chapter 31 0.00% Chapter 63 15.45% Chapter 96 17.17%
Chapter 32 4.26% Chapter 64 148.30% Chapter 97 0.00%
Question 8:
Wenote thatthereason given fortheexceptionally high import duty rateforChapter 22
(185percent) isrevenue generation. Wealsonotethatexcise duties forthese products also
discriminate against exporters. Wewould urgeKazakstan touseitstariff structure asarational
tooloftrade policy andnoteasarevenue-raising mechanism. High tariffs mitigate against the
benefits tobegained from aliberal trade policy. What percentage ofbudget revenue for1997
isforecast toderive from customs andexcise duties?
Answer:
Thepercentage ofbudget revenue for1997 forecast tobederived from customs duties and
excise taxes are2.6percentand1.0percentrespectively.
Note, however, thatthetrade-weighted average import rateforChapter 22dropped from
185percentto83.06 percentbased on1996 import dataandcurrent import dutyrates.
Question 9:
CanKazakstan confirm thatproducts subject toexcise duties arealsosubject tocustoms duties?
Answer:
Products subject toexcise duties arealsosubject tocustoms duties. However, there are
exemptions frompayment ofexcise taxesandduties (seeSection IV.1.c andIV.1.d ofWT/ACC/KAZ/3
andquestion 26ofWT/ACC/KAZ/6/Add.1). Inaddition, Government Resolution No.1712 of
31December 1996 provides thefollowing exemptions from customs duties andlevies forcustoms
processing:
- goods imported bynatural persons under thevalue ofUS$2,000 andnotexceeding atotalweight
of70kg areexempt from customs duties andlevies forcustoms processing;WT/ACC/KAZ/10
Page8
- onetransport vehicle forpersonal usebynatural persons peryearprovided suchvehicle is
nottransferred oralienated intothepossession ofanother person except fortransfer toafamily
member within oneyearfrom thedateofcustoms clearance.
Question 10:
According toKazak Law, products imported under thevalue ofUS$2,000 areexempt fromcustoms
duties andother procedures. Isthisexemption available toforeign aswellasKazak natural
persons?
Answer:
Products imported under thevalue ofUS$2,000, provided thatthetotalweight ofthegoods
doesnotexceed70kg,areexemptfromcustomsdutiesandleviesforcustomsprocessing.Thisexemption
isequally available toforeign aswellasKazak natural persons.
(d) Other duties andcharges, specifying anycharges forservices rendered
Question 11:
Werequest anupdate onlegislative developments ontheadvalorem customs processing fee.
Answer:
During accession totheWTO, Kazakstan willbring itscustoms processing feeintoconformity
withArticle VIIIoftheGATT 1994. TheGovernment iscurrently developing aproposal astohow
thatwilldone.
Question 12:
WT/ACC/KAZ/6/Add.2, Question 40:Please elaborate onwhat ismeant bythe"same customs
region".
Answer:
Currently, there are30customs regions (orzones) throughout Kazakstan defined according
togeographic boundaries. Each region isunder theresponsibility ofacustoms house.
Custom regions aredefined andredefined through orders issued bytheCustoms Committee.
Boundaries ofcustoms regions maychange depending onthenumber ofcustoms houses created or
abolished. Inaddition, aspecial economic zonemayitself bedefined asasingle region.
Question 13:
Onwhat basis arethecharges foraccompanying goods (100ECU within thesame customs zone;
and200ECU foraccompanying goods tothedestination point) calculated?
Answer:
Thestated charges foraccompanying goods isbased onthecostincurred bytheCustoms to
accompany goods. Thecostincludes thefollowing: salary oftwocustoms officers whoaccompany
thegoods; theircarexpenses (e.g.gasoline, repair); andtheirperdiem (meals andlodging).WT/ACC/KAZ/10
Page9
Question 14:
What progress hasKazakstan made onreviewing thefeestructure forcustoms clearance with
aviewtoensuring itreflects thecostofservices rendered? (WT/ACC/KAZ/6/Add.2, question 44).
What progress hastheKyrgyz Republic made incalculating theactual costoftheservices rendered
inconnection withimportation?
Answer:
Please seethereply toquestion 11above.
(e) Quantitative import restrictions, including prohibitions, quotas andlicensing systems
Question 15:
Kazakstan hasindicated that"quantitative import restrictions maybeestablished intheinterest
ofnational security, ethics, health etc".What specific restrictions could beimposed intheinterests
of,forexample, ethics?
Answer:
Import prohibitions maybeimposed intheinterests ofethics (e.g.printed orpainted materials
directed toward undermining stateandpublic system, promoting war,terrorism, racism aswellas
pornography).
Question 16:
(WT/ACC/KAZ/6/Add.2, question 52),Kazakstan states thatthesystem ofimport licensing is
notlinked toanyquotas, andthatKazakstan doesnotenvisage using anysystems other than
certification andlicensing inthefuture (except where otherwise permitted under WTO rules).
Wewould urge Kazakstan toamend itslegislation where necessary toguarantee that
WTO-incompatible restrictions willnotbeintroduced inthefuture.
Weunderstand thatalicence isnowneeded toimport (and produce?) alcohol, withaview to
harmonisation withthesystem inplace intheRussian Federation. Wewillneedclear information
ontheextent ofharmonisation withtheRussian system; therequirements made toexporters;
thecostoflicenses; andthesystem forpayment ofcustoms, VAT andexcise duties.
Answer:
According toGovernment Resolution No.217of14February 1997alltypes ofspirits, fortified
drinks, juiceandbalsam, vodka, liqueurs andvodka products, cognac wereadded tothelistofgoods
subject toimport licensing. These licenses areissued bytheMinistry ofEconomy andTrade. Also
thisResolution envisages theintroduction ofamendments andadditions tothePresidential Decree,
having force ofLaw"Onlicensing" tointroduce requirements forlicense forsaleofethylalcohol and
wholesale trade ofalcohol products. Currently onlyalcohol production, astypeofactivity, issubject
tolicensing. Starting from1March 1997, transit oftypes ofspirits andalcohol products shallbecarried
outwithpermission ofcustoms bodies andprovided thatdeposits onexcise taxes, VAT, andcustoms
duties aremade.
There arenospecial requirements toexporters ofalcohol products. Thecostoflicense isthe
same forevery licensed types ofactivity -20monthly evaluation index. Thesystem forpayment ofWT/ACC/KAZ/10
Page10
customs andVAT isthesame asforother goods. Asforexcise duties, theamount spent onlabelling
alcoholproductsissubtractedfromtotalamountofdueexcisetaxes.Certainalcoholproductsoriginating
andimported from CIScountries aresubject toexcise taxes (please seereply toquestion 25ofthis
document).
Theexisting system wasputinplacewiththepurpose ofharmonisation withtheRussian system.
Question 17:
Could youconfirm whether tariff ratequotas arelikely tobeintroduced inthefuture, particularly
inrelation toobligations arising from theCustoms Union agreement?
Answer:
Tariff ratequotas maybeintroduced inthefuture particularly inrelation toobligations arising
from theCustoms Union agreement.
Question 18:
Wefurther understand thatallexport andimport licensing isscheduled tobeharmonised under
theCustoms Union. Wewillneed information onthetimetable forharmonisation anddetails
ofproducts tobecovered
Answer:
Theprocess ofharmonisation withCustoms Union ofallexport andimport licenses hasbeen
initiated. Itisexpected tobecompleted bymid-1998.
(f) Import licensing procedures
Question 19:
What progress hasbeenmade inamending theadministrative charges forissuing animport licence
tobring them intolinewiththecostofservices rendered?
Answer:
Prior toaccession totheWTO, Kazakstan willreview thisadministrative charge toensure
thatitreflects thecostofservices rendered. Kazakstan iscurrently developing aproposal astohow
thatwilldone. Upon accession, theimport license feewillreflect thecostofservices rendered.
(h) Customs valuation
Question 20:
What legislative programme doesKazakstan propose forbringing thevaluation-provisions of
theCustoms Code intoconformity withtheWTO Valuation Agreement? (WT/ACC/KAZ/6/Add.2,
questions 58and59)particularly Article 133which does notfully delineate theprohibitions
contained inArticle 7.2(b), (c),(d)and(f)oftheWTO Agreement. IstheCustoms Code still
ontrack tobeamended in1997?WT/ACC/KAZ/10
Page11
Answer:
Currently, amendments totheCustoms Code arebeing prepared toconform totheWTO
agreements. Itisexpected thatdraftamendments willbefinalised bytheendofSeptember 1997.
(k) Application ofinternal taxes onimports
Question 21:
VAT
Application oftheMFN principle tointernal taxation remains anissue ofmajor concern. What
progress hasbeenmade indiscussions ofthetransition intheInter-State Council andIntegration
Committee tobring theVAT system intoconformity withaccepted word practice? (especially
withreference toQuestion 31ofWT/ACC/KAZ/6/Add.2: "VAT credits onimports from CIS
arenolonger permitted" -asof31December 1996)
Answer:
TherehasnotbeenanyresolutionsregardingthismatterbytheInter-StateCouncilandIntegration
Committee.
Kazakstan hassigned bilateral agreements withtheKyrgyz Republic, Ukraine, Moldova, and
Azerbaijan onapplying VATatthedestination (consumption) rather thansource (production). Similar
agreementsarecurrentlybeingnegotiatedwithUzbekistanandotherCIScountries.Pleasenote,however,
thatthese agreements, except theagreement withtheKyrgyz Republic concerning VAT, havenotyet
beenratified andwillcome intoforce afterratification.
Question 22:
WT/ACC/KAZ/6/Add.1, question 23:IstheVAT exemption available onanational treatment
basis?
Answer:
With reference toQuestion 23ofWT/ACC/KAZ/6/Add.1, theVAT exemption isavailable
onanational treatment basis.
Question 23:
WT/ACC/KAZ/6/Add.1, question 28: Which CIScountries have aVAT ratelower then
Kazakstan ’s?
Answer:
Uzbekistan istheonlyCIScountry which hasaVAT ratelower thanKazakstan. TheVAT
rateinUzbekistan is18percentforallgoods except formilk, milkproducts, flour, bread, andmeat
where theVAT rateis10percent. There arealsoexceptions tothe20percentVAT rateinRussia:
10percentforsugar andother products.
Nevertheless, according totheamendments totheTaxCode of31December 1996, allgoods
imported fromCIScountries aresubject toVAT when imported toKazakstan starting 1January 1997.WT/ACC/KAZ/10
Page12
Excise duties
Question 24:
What legislative programme doesKazakstan propose foreliminating thediscriminatory excise
taxregime? Therates must beharmonised byaccession totheWTO.
Answer:
During accession totheWTO, Kazakstan willwork toward bringing itsexcise taxsystem in
linewiththenational treatment principle ofWTO. Appropriate legislation willbeenacted toaddress
thisissue during accession totheWTO.
Please notethattheexcise taxratefortheimport ofliqueurs andvodka product is3.0ECU/L
asspecified inQuestion 47ofWT/ACC/KAZ/6/Add.2. Theentry of0.6ECU/L, asspecified in
Question 33ofWT/ACC/KAZ/6 isincorrect.
Automobiles withmanual driving intended fordisabled persons areexcluded fromthelistof
excisable goods.
Depending ontheageofautomobiles andthesizeofengine, theexcise duties range from
10-40 percentinstead of10-50 percentaccording toGovernment Resolution No.907of30May1997.
Question 25:
When calculating thedifference between excise rates paidinother CIScountries andthose payable
inKazakstan, what (Kazak) rateofexcise dutyisusedasbasis forcalculation ontheproducts
listed under WT/ACC/KAZ/6/Add.2, question 47for(a)products from Russia, Belarus andthe
Kyrgyz Republic and(b)product from other CIScountries?
Answer:
Thefollowing excisable goods, originating inCIScountries andimported toKazakstan from
CIScountries, aresubject toexcise taxratesatimportation:
- 220300: beermade from malt;
- 2204(except 220430): wineoffreshgrapes, including fortified wines (except othergrape must);
- 2205: vermouth andother wineoffresh grapes flavoured withplants oraromatic substance;
- 2206: other fermented beverages (forexample, cider. Perry, mead); tures offermented
beverages andnon-alcoholic beverages notelsewhere specified orincluded;
- 2207: undenatured ethyl alcohol ofanalcoholic strength byvolume of80percentvolume
orhigher; ethyl alcohol andother spirits denatured, ofanystrength;
- 2208:undenaturedethylalcoholofanalcoholicstrengthbyvolumelessthan80percentvolume
spirits, liqueurs andotherspirituous beverages compound alcoholic preparations ofakindused
formanufacture ofbeverages;
- 2402: cigars, cheroots, cigarillos andcigarettes, oftobacco oroftobacco substitutes.
Other excisable goods, originating inCIScountries (except Ukraine, Moldova, theKyrgyz
Republic, andAzerbaijan) andimported toKazakstan from CIScountries, areexempt from excise
taxes. Thedifference between excise ratespaidinother CIScountries andthose payable inKazakstan
isnotcalculated regardless whether ornottheratesinKazakstan arehigher orlower thanother CIS
countries.WT/ACC/KAZ/10
Page13
Kazakstan hassigned bilateral agreements withUkraine, Moldova, theKyrgyz Republic, and
Azerbaijan onapplying excise taxes atthedestination (consumption) rather thansource (production).
Similar agreements arecurrently being negotiated withUzbekistan andother CIScountries. Please
note,however, thattheseagreements havenotyetbeenratified andwillcome intoforceafterratification.
Question 26:
Forexample, howisthedifference inexcise dutypayable onimports ofvodka from theRussian
Federation, where theRussian dutyislevied according topercentage alcohol perlitre, whereas
inKazakstan there isaflatrateperlitre?
Answer:
Imported Vodka toKazakstan from theRussian Federation ischarged excise taxes inRussia
andisalsocharged Kazakstan ’simport excise ratesupon importation toKazakstan. Currently, itis
asituation ofdouble taxation.
Question 27:
WhatexcisedutiesarepayableonimportsofethylfromtheRussianFederation?(WT/ACC/KAZ/6,
question 34.Noexcise duties onanydomestically-produced alcohol intended foruseinproduction
ofalcoholic beverages.)
Answer:
Theimport excise taxrateof3.5ECU/L ispayable atthemoment ofimportation onimports
ofethylalcoholfromtheRussianFederationunlesstheconditionsofResolutionNo.907of30May1997
aremet.Thisresolutionexemptsfromexcisetaxesimportedanddomesticallyproducedalcoholintended
foruseinproduction ofliqueurs, vodka, fortified juice, wine, balsam, provided thatitispurchased
byalicensed producer.
Question 28:
Weunderstandthatnootherinternaltaxesapplytoimports.(WT/ACC/KAZ/6/Add.2,question62)
Could thisplease beconfirmed?
Answer:
Kazakstan confirms thatonlyVAT andexcise taxes apply toimports.
Question 29:
Inorder tocalculate theVAT andexcise duties payable onproducts imported from other CIS,
isitassumed thatcustoms documents include details ofVAT andexcise duties paidintheexporting
country?
Answer:
According totheamendments totheTaxCode of31December 1996, allgoods imported from
CIScountries aresubject toVAT when imported toKazakstan starting 1January 1997.WT/ACC/KAZ/10
Page14
Kazakstan hassigned bilateral agreements withtheKyrgyz Republic, Ukraine, Moldova, and
Azerbaijan onapplying VAT andexcise taxes atthedestination (consumption) rather thansource
(production).SimilaragreementsarecurrentlybeingnegotiatedwithUzbekistanandotherCIScountries.
Please note,however, thattheseagreements, except theagreement withtheKyrgyz Republic concerning
VAT, havenotyetbeenratified andwillcome intoforce afterratification.
Likenon-CIS countries, goods imported from these countries willbecharged VAT upon
importation totheterritory ofKazakstan andgoods exported fromKazakstan tothese countries will
besubject toVAT atzerolevel. Thesame applies forexcise duties.
Withrespect toVAT, thecustoms documents (e.g.customs declaration) doesnotinclude details
ofVAT paidintheexporting country. However, theinvoice mustbesubmitted asaproof ofpayment
ofVAT intheexporting country.
Withrespect toexcise taxes, nodifference iscalculated. Therefore, thereisnoneedtoindicate
theexcise taxes paidattheexporting country.
Question 30:
Inwhat currency are(a)exporters from non-CIS countries and(b)exporters from CIScountries
topaycustoms, VAT andexcise duties?
Answer:
Payments ofcustoms, VAT, andexcise duties maybepaidinthecurrency oftheRepublic
ofKazakstan ortheforeign currency specified inthedeclaration, provided therateofsuchforeign
currency isquoted bytheNational Bank ofKazakstan andthecustoms hasanaccount inthatforeign
currency. Exporters from CISandNon-CIS countries aresubject tothesame rules.
Question 31:
Isthedifference inexcise rates alsopayable ongoods originating intheother three countries
belonging totheCustoms Union?
Answer:
Seereply toquestion 25above.
Question 32:
Where excise duties areadvalorem rather thanspecific, what arethemethods forcalculating
excise taxes for(a)foreign goods (b)goods imported from theCISand(c)domestic goods?
Answer:
(a) Domestically produced goods:
Advalorem: thesalepriceissubject toexcise tax,without including VAT. Example, sturgeon and
salmon, theirroe,anddelicacies made therefrom aresoldattheprice T100(without
VAT). Theproducer ofthese goods shallpayexcise taxattherate100percent. That
isT100.WT/ACC/KAZ/10
Page15
- specific rates(ECU perunit): therateofECUshallbedefined attherateoftheNational
Bank ofKazakstan atthedayofshipping ofexcisable production. Example, vodka
issoldinthevolume of100litres. Theproducer shallpayexcise taxattherateof
0.7ECU perlitre. Thatis70ECU.
(b) Imported goods
Thesame method applies forgoods imported from CISandnon-CIS countries.
Advalorem: thecustoms value issubject toexcise tax,without including VAT. Example, sturgeon
andsalmon,theirroe,anddelicaciesmadetherefromaresoldatthepriceT100(without
VAT). Theimporter ofthese goods shallpayexcise taxattherateof100percent.
ThatisT100.
- specific rates(ECU perunit): therateofECUshallbedefined attherateoftheNational
Bank ofKazakstan atthedayofshipping ofexcisable production. Example, vodka
issoldinthevolume of100litres. Theimporter shallpayexcise taxattherateof
3.0ECU perlitre. Thatis300ECU.
Seasonal duties (WT/ACC/KAZ/6, questions 35-38)
Question 33:
WenotethatKazakstan hasnotyetenacted regulations fortheapplication ofseasonal duties.
Wewould welcome anupdate onprogress ofsuchenactment, andcopies ofrelevant drafts when
available.
Answer:
Seasonal duties areprovided forunder Article 113oftheCustoms Code. Amendments to
theCustoms Code arenowbeing prepared bytheStateCustoms Committee, withaviewtoresolving
inconsistencies between thelawandWTO requirements, among other purposes. Theamendments
areexpected tobefinalised bytheendofSeptember 1997.
(l) Rules oforigin
Question 34:
Weareencouraged thatKazakstan, liketheEuropean Communities, hasasystem based onthe
Kyoto convention. Weurge Kazakstan tobring itsregulations relating torules oforigin into
conformity withtheWTO Agreements assoon asfeasible. What legislative programme does
Kazakstan propose?
Answer:
Asnoted intheresponse toQuestion 34,theStateCustoms Committee iscurrently preparing
amendments totheCustoms Code. Among theamendments under review isaproposal toconform
thecurrent advance ruling procedure totherequirements oftheWTO Agreement onRules ofOrigin.
Kazakstan intends toimplement theresults oftheWCO Harmonisation Programme oncecompleted.WT/ACC/KAZ/10
Page16
(m)(n)(o) Anti-Dumping, Countervailing Duties, Safeguards
Question 35:
Weunderstand thatnewlegislation onthese matters willbediscussed inKazakstan ’sParliament
inthecourse of1997. Could Kazakstan please provide therelevant draft when ready.
Answer:
Currently, thedraftLawonCountervailing Measures andthedraftLawonSafeguard Measures
arebeing finalised forsubmission totheGovernment. Please findinAttachment AacopyoftheDraft
LawonAnti-Dumping Measures. Assoonastheother twodrafts arefinalised, theywillbesubmitted
totheWorking Party forreview.
Question 36:
Furthermore, could Kazakstan please statewhether thecurrent provisions onthese matters (laid
down intheCustoms Code of1995) could form thebasis fortheadoption ofprotective measures
pending accession negotiations.
Answer:
Such duties willnotbeapplied before enactment ofappropriate legislation.
Question 37:
Could weplease haveanupdate ontheredrafting ofthelaw‘OnSafeguard Measures ’.Wewould
liketoremind Kazakstan thatthenewlawmust conform toGATT Article XIX, andtheWTO
Agreement onSafeguards.
Answer:
Please seeresponse toquestion 35.
2. Export Regulation
(d) Export licensing procedures
Question 38:
WT/ACC/KAZ/6/Add.2, question 74: Kazakstan hasprovided aninformative listoftariff
categories requiring licensing. Aretheselicences automatic? Aretheygranted onnational treatment
andMFN basis? What isthecostofalicence -andhowisitcalculated?
Answer:
Yes,export licenses areautomatic andnotlinked toquotas. Licenses aregranted onanational
treatment andMFN basis withoneexception. Exporters ofcertain goods arenotallowed toobtain
export licenses from theregional licensing offices oftheMinistry ofEconomy andTrade. Thecost
ofalicense is20monthly evaluation index. Itdoesnotreflect thecostofservices rendered. This
feeisthesame forobtaining anytypeoflicense including activity licenses.WT/ACC/KAZ/10
Page17
3. Internal Policy Affecting Foreign Trade inGoods
(a) Industrial policy, including subsidy policies
Question 39:
Could Kazakstan please state whether itmaintains anylocal-content based subsidy (within the
meaning ofArticle 3.1(b) andwhether itplans toinvoke Article 29oftheSCM Agreement on
respect ofthese subsidies too.
Answer:
Yes.Kazakstanmaintainslocal-contentbasedsubsidy.Subsidiescontingentontheuseoflocally
produced inputs wasapproximately US$25 million in1996andconstituted approximately 0.1percent
ofGDP. Kazakstan doesnotplantoeliminate export subsidies uponaccession totheWTO andplans
toinvoke Article 29oftheSCM Agreement withrespect tothese subsidies.
Inaddition, theLawonStateSupport toDirect Investment of28February 1997provides income
taxexemptions, property taxexemptions, customs duties exemptions, andotherbenefits andguarantees.
Oneofthemain goals ofstatesupport ofdirect investments through providing these benefits and
guarantees istodevelop export-oriented andimport-substitution industries.
Question 40:
WT/ACC/KAZ/6/Add.2, question 83:Could Kazakstan please outline theobjective criteria and
guidelines provided toregional authorities foradministering regional subsidies?
Answer:
Government Resolution No.619of22April 1997addresses thetargeted useandthemechanism
forallocation ofsubventions transferred tothebudgets ofoblasts. Theamount oftransfers, allocated
intheform ofsubventions outoftheRepublican budget tooblast budgets shallbedetermined inthe
LawonRepublicanBudgetforcorrespondingfinancialyear.Onamonthlybasis,theMinistryofFinance
transfers theamount ofsubventions toeach region withexplanations onthepurpose ofuseof
subventions. Subventions aremainly usedforsocial needs.
TheMinistry ofFinance shallconduct supervision andanalysis overthetargeted andeffective
useofsubventions transferred tothebudgets ofoblasts. Incasefunds areallocated fornon-targeted
use,theMinistry ofFinance hastherightnottodisburse thefunds, revoke orforbid thedisbursement
intheamount ofrevealed violation.
Agriculture
Question 41:
Could Kazakstan clarify inmore detail thesupport system forhighgrade seeds, pedigree cattle,
highquality wood andastrakhan andlamb meat?
Answer:
These subsidies aregranted through theAgriculture Support Fund (ASF), established in
December 1994. Themain goalofproviding subsidies toagricultural production through thisASFWT/ACC/KAZ/10
Page18
istoincrease efficiency ofagricultural activities bymeans ofstimulating entities tousenewequipment,
technology, purchasing ofpedigree cattle, usage ofhighgrade seeds, mineral fertiliser andmeans to
protect plants.
According totheOrder ofPayment ofMeans oftheASF, approved bytheRepublic
Inter-Ministerial Board ofASF on25March 1996, producers ofhighgrade seeds shall provide
information regarding thesaleofhighgrade seeds (amount soldlocalfarmers perton,costofproduction
perton,selling price pertontolocalfarmers -which islower thantherealprice forafixed amount
pertonasapproved bytheOrder) totheoblast representative oftheMinistry ofAgriculture. The
oblast representative forwards thisinformation onamonthly basistotheMain Department ofFarming
Policy Development attheMinistry ofAgriculture. ThisMain Department collects allinformation
fromvarious oblasts andsubmits itinaggregate formtothecentral ASFoffice inAlmaty. TheASF,
according totheinformation provided bytheMinistry ofAgriculture, disburses appropriate funds to
oblast offices ofASFwhich, inturn,provide appropriate funds totheproducers ofhighgrade seeds.
Producers actually obtain thedifference inamount between realpriceandselling pricetolocalfarmers.
Thesamesupport system applies topedigree cattle, highquality wood andastrakhan, andlamb
meat. TheMain Department ofBreeding Policy Development attheMinistry ofAgriculture is
responsible forimplementing suchsupport. Thevalue ofsubsidy forhighquality wood andastrakhan,
andlamb meatismeasured perunit(1kg). Asforpedigree cattle, itismeasured perton.
(b) Technical regulations andstandards, including measures taken attheborder withrespect
toimports
Question 42:
What practical steps willbetaken toensure theprinciples andelements oftheWTO
TBT Agreement relating totransparency, prior consultation ofplanned standards andregulations,
non-discrimination andnational treatment, proportionality, andtheuseandacceptance of
international standards? WillKazakstan respect thenotion ofstandstill alsointhisarea, that
is:notintroduce anytechnical regulations orstandards which would beincompatible withthe
provisions oftheTBT Agreement?
Answer:
Kazakstan hasalready initiated review ofitslegislation connected withstandards toensure
conformity withtheAgreement onTechnical Barriers toTrade. Ithasbeendetermined thatthecurrent
legal regime doesnotfullyconform totheWTO TBTAgreement. Kazakstan willbeamending by
theendof1997 itslegislation connected withstandards toensure fullconformity withtransparency
andprocedural aspects ofTBTincluding allaforementioned provisions.
Inadopting andrevising standards, Kazakstan carries outharmonisation withinternational
standards suchasISOandIEC. Wearenot,however, aware ofanyspecific standards recommended
bytheTBTAgreement withwhich toensure compatibility.
Question 43:
Within themeaning oftheWTO TBT Agreement regulations aremandatory andstandards
voluntary. Initsreply toWT/ACC/KAZ/6, question 72Kazakstan replies thatstandards area
typeofregulations. What isthetimetable formoving from mandatory regulations tovoluntary
standards inKazakstan andwhich products/product areas willbegiven apriority inthiswork?WT/ACC/KAZ/10
Page19
Answer:
InKazakstan, there are(i)standards which contain mandatory andrecommended (voluntary)
requirements foraunified group ofproducts and(ii)technical conditions which aredeveloped by
enterprises andorganizations foraspecific product andestablish requirements thatmustcorrespond
tothemandatory requirements ofstandards.
Mandatory requirements ofstandards include requirements toensure:
- safety forlifeandhealth ofpopulation;
- protection ofenvironment;
- compatibility andinterchangeability capacities; and
- rules ofpackaging, marking andmethods ofcontrol ofcorrespondence tomandatory
requirements.
Therequirements assuring consumers ’characteristics related toquality ofproducts are
recommended ones.
Itisunclear what ismeant bymoving from mandatory regulations tovoluntary standards.
Kazakstan appreciates afurther clarification regarding suchsuggestion.
Question 44:
What does"requirements related tothegroups ofunified products andmethods oftesting" mean?
(WT/ACC/KAZ/6, question 72)
Answer:
Standards specify requirements related tothegroups ofunified (similar) products andmethods
oftesting. Similar products areproducts which havesimilar specific features characterising these
products. Themethods oftesting apply fortesting certain characteristics ofgroups ofsimilar products.
Question 45:
What doesthefollowing statement mean: "mandatory requirements maybestipulated toprotect
theinterests oftheentity requesting theintroduction ofaspecific standard". (WT/ACC/KAZ/6,
question 74)
Answer:
Kazakstan plans toamend theLawonStandardisation andCertification bytheendof1997.
Thecurrent proposal istoeliminate thelastsentence inArticle 8.3referring tothemandatory
requirements toprotect theinterests oftheentity.
Question 46:
"The Kazak Certification System...allows thepossibility tousemanufacturers ’declaration ifit
isnotpossible tocarry outtesting ofgiven product inKazakstan". Could Kazakstan please explain
under precisely what circumstances manufacturers declaration ispossible touseandlisttheareas
where itisnotpossible tocarry outtesting ofagiven product inKazakstan. (WT/ACC/KAZ/6,
question 76)WT/ACC/KAZ/10
Page20
Answer:
TheKazak Certification System allows thepossibility tousemanufacturers ’declaration ifit
isnotpossible tocarry outtesting ofagiven product inKazakstan duetotheunavailability oftesting
facilities. There isnopredetermined listandsuchdecisions aremade onacase-by-case basis. Note,
however, thatexisting testing facilities areconstantly being modernised andexpanding theprofile of
theirtesting capabilities.
(c) Sanitary andphytosanitary measures
Question 47:
Weunderstand thatKazakstan anticipates difficulties inapplying theSPSAgreement infullon
accession. What isbeing done toalleviate these difficulties?
Kazakstanhasalreadyinitiatedreviewofitslegislationconnectedwithsanitaryandphytosanitary
issues toensure conformity withSPSAgreement. Ithasbeendetermined thatthecurrent legalregime
doesnotfullyconform totheWTO SPSAgreement.
Kazakstanwilladdressthesedeficienciesthrougheitheramendingexistinglegislationorenacting
newones. Nodecisions inthisregard havebeenfinalised.
Answer:
(d) Trade-related investment measures
Question 48:
WT/ACC/KAZ/6/Add.2, question 95:What legislative programme doesKazakstan propose for
eliminating thelocal purchase preference requirements intheLaw onOilandtheLaw On
Subsurface Utilisation?
Answer:
TheLawonOilandtheLawonSubsurface Utilisation willbothbeamended bytheendof
1998 foreliminating thelocalpurchase preference requirements.
Question 49:
Isanyprofits taxexemption awarded onthebasis ofexport performance orlocal content?
Answer:
TheLawonState Support toDirect Investment of28February 1997 provides income tax
exemptions. Oneofthemain goals ofstatesupport ofdirect investments through providing benefits
(e.g.taxincentives) andguarantees istodevelop export-oriented andimport-substitution industries.WT/ACC/KAZ/10
Page21
(f)(g) Freezones andfreeeconomic zones
Question 50:
Intheresponse toWT/ACC/KAZ/6/Add.2, question 98itisstated thatcustoms duties andtaxes
arelevied when goods areexported from theterritory offreezones andfreewarehouses beyond
theboundaries ofKazakstan, customs duties andtaxes shallbelevied. Could youplease elaborate
ontheduties andtaxes levied inthiscase?
Answer:
Kazakstan currently doesnotimpose export duties. Therefore, noexport duties arelevied
onanygoods exported from freezones andfreewarehouses.
Excise taxes donotapply forexport tonon-CIS countries
Goods Exported toNon-CIS Countries from FreeZones andFreeWarehouse
Export Duties VAT
1.goods originating inthezone(produced or
reprocessed)exempt zerorate
2.foreign goods originally imported tothefree
zone/warehouseexempt zerorate
3.Kazakstani goods originally imported tothefree
zone/warehouseexempt zerorate
5.goods in-transit inthezoneregardless oforigin donotapply donotapply
Goods Exported toCISCountries from FreeZones andFreeWarehouse
Export
DutiesVAT Excise
Rates
1. goods originating inthezone(produced or
reprocessed)exempt exempt donot
apply
2. goods regardless oftheirorigin exported tothe
Kyrgyz Republicexempt exempt apply
3. Kazakstani goods originally imported tothefree
zone/warehouseexempt 20% apply
4. foreign goods originally imported tothefree
zone/warehouseexempt 20% apply
5. goods in-transit inthezoneregardless ororigin exempt exempt exemptWT/ACC/KAZ/10
Page22
(k) Trade agreements leading tocountry-specific quotas allocation
Question 51:
WT/ACC/KAZ/6/Add.2, question 107andWT/ACC/KAZ/6/Add.1, Questions 68and69):Do
weunderstand correctly thatcountertrade andbarter arrangements aregenerally company to
company rather thangovernment togovernment?
Answer:
Barter andcountertrade arenotmandatory. Barter arrangements areonlycompany tocompany.
Question 52:
Arecountertrade andbarter arrangements subject tocustoms formalities, tariffs andtaxes in
thesame wayasother exports/imports?
Answer:
Countertrade andbarter arrangements aresubject tocustoms formalities, tariffs andtaxes in
thesame wayasother exports/imports.
(l) Government procurement
Question 53:
Wewelcome theinitiative ofKazakstan tojointheGPA (WT/ACC/KAZ/6). However, wecould
learn from theanswers received thatthepresent Regulation allows fordomestic preferences, by
giving preferential margins todomestic goods orservice providers. Such aprovision would create
atrade barrier incontradiction withtheKazak statement onfuture accession totheGPA. This
issue needs tobeclarified inthenewlaw.Kazakstan must ensure thatthislawdoesnotbreach
GATT Article III,ashercurrent arrangements do.
When doesKazakstan plantojointheGPA?
Answer:
Kazakstan plans tojointheGPA afteraccession totheWTO.
Question 54:
IsKazakstan aware thatpreferential margins arenotcompatible withtheprovisions onnational
treatment intheGPA?
Answer:
TheLawonState Procurement wasadopted bytheParliament on30June1997. Kazakstan
isaware thatpreferential margins arenotcompatible withtheprovisions onnational treatment inthe
GPA. Thenewlawdoesnotprovide preferential margins assuch. Article 16(5)(3) does, however,
allow procuring entities totakeintoaccount the,"impact oftheeconomic situation oftheRepublic
ofKazakstan orseparate region oftheRepublic ofKazakstan including: stateofbalance andcurrency
reserves oftheRepublic ofKazakstan; share ofuseofrawmaterials aswellasproduction andlabourWT/ACC/KAZ/10
Page23
resources oftheRepublic ofKazakstan; opportunities foreconomic growth, including investments in
theeconomy oftheRepublic ofKazakstan; small business support; creation ofnewworking places;
training ofmanagement, scientific andproduction personnel oftheRepublic ofKazakstan". In
determining the"most profitable bid"forpurposes ofawarding atender.
Question 55:
Could itbepossible toobtain acopy ofthedraft lawtobesubmitted totheParliament?
Answer:
AcopyoftheLawonStateProcurement,adoptedbytheParliamenton30June1997,isprovided
inAttachment A.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
(c) Membership ininternational intellectual property conventions andregional orbilateral
agreements
Question 56:
Please listanddescribe those obligations concerning intellectual property thatKazakstan has
assumed pursuant toitsaccession totheEurasian Patent Convention andtotheAgreement with
theRussian Federation onCo-operation inthesphere ofindustrial property protection.
Answer:
Inacceding totheEurasian Patent Convention, theRepublic ofKazakstan didnotundertake
anyobligations relating tointellectual property which extend beyond theframework oftheParis
Convention. TheAgreement between theRepublic ofKazakstan andtheRussian Federation on
co-operation inthespheres ofindustrial property protection introduces national treatment forapplicants
fromtheRussian Federation inconnection withissuing safeguard documents andthepayment offees.
Question 57:
Arethere specific obligation contained inbilateral agreements signed withcountries oftheformer
USSR inthesphere ofprotection ofintellectual property thatKazakstan doesnotwishtoextend
toother countries?
Answer:
No.There arenospecific obligations contained inthebilateral agreements which Kazakstan
hassigned withother CIScountries which itdoesnotwishtoextend toother countries.WT/ACC/KAZ/10
Page24
Question 58:
Does Kazakstan intend tojointheProtocol relating totheMadrid Agreement concerning the
internationalRegistrationofMarks(Madrid1989),theNiceAgreementconcerningtheInternational
Classification ofGoods andServices forthePurposes oftheRegistration ofMarks (Geneva 1977,
amended 1979), andtheBudapest Treaty ontheInternational Recognition oftheDeposit of
Micro-organisms forthePurpose ofPatent Procedures (1977, modified in1980)? Ifyes,when
doesKazakstan intend todothat?
Answer:
Theissue ofjoining theaforementioned conventions ispresently under consideration bythePatent
Office oftheRepublic ofKazakstan. Aprecise time-framework foraccession tothese Conventions
hasnotyetbeendetermined.
(e) Feesandtaxes
Question 59:
Inannex 10oftheMemorandum ontheForeign Trade Regime oftheRepublic ofKazakstan
(12July1996) itappears thatthere aredifferent methods forthecalculation offeesforcertain
industrial property rights, forKazak citizens andnon-Kazak citizens? ArethefeesforKazak
citizens equivalent tothefeesfornon-Kazak citizens?
Answer:
No.Thepayments fornon-citizens differ from those forcitizens.
Question 60:
Ifnot,doesKazakstanbelievethatthisdifferenttreatmentiscompatiblewiththenationaltreatment
provided forinarticle 2oftheParis Convention fortheProtection ofIndustrial Property, which
isincorporated byreference inarticle 2.1oftheTRIPs Agreement?
Answer:
TheRepublic ofKazakstan plans tophase-out theexisting discrepancies inpayments overa
transitionalperiodtobedeterminedinconnectionwithKazakstan’sWTOaccessionnegotiations.Certain
preferences maybeobtained, however, forapplicants from those countries where theAnnual GDP
percapita islessthanUS$3,000 (according toUnited Nations classifications)WT/ACC/KAZ/10
Page25
2. Substantive Standards ofProtection, Including Procedures oftheAcquisition and
Maintenance ofIntellectual Property Rights
(b) Trademarks, including service marks
Question 61:
TheGovernmentofKazakstanexplainsthattheprotectionofwell-knownmarksfollowsArticle6bis
oftheParis Convention. Article 16.2and3oftheTRIPs Agreement extends thisprotection to
service marks and"togoods orservices which arenotsimilar tothose inrespect ofwhich a
trademark isregistered, provided thatuseofthattrademark inrelation tothose goods orservices
would indicate aconnection between those goods orservices [...]". Itseems thatnosuchprotection
exists inKazakstan. Ifthisunderstanding iscorrect, doesKazakstan intend tointroduce such
aprotection when acceding toWTO? Please explain.
Answer:
TheRepublic ofKazakstan protects wellknown trademarks without restriction byclasses of
products andservices (International Classification ofGoods andServices) inaccordance withtheTRIPS
Agreement. Thecriteria, however, fordetermining whatis"well known" arenotyetcompletely defined
byWIPO and,therefore, demonstrating theauthenticity ofthetrademark should falluponthetrademark
owner.
Question 62:
Could theGovernment ofKazakstan clarify whether, initsanswer tothequestion onexceptions
from protecting amark, thequoted Articles aretherelevant ones?
Answer:
Articles 14and15oftheLaw"Concerning Trademarks, Service marks andtheAppellations
ofOrigin ofGoods" aretherelevant articles. Thefull-text ofeachArticle issetforth below:
Article 14.Theabsolute foundations fortherejection toregister atrade mark
1. Itshallnotbepermissible toregister trade marks which consist exclusively ofsymbols:
- which represent thestatesymbols, flags, emblems, abbreviated orfullnames ofinternational
andintergovernmentalorganizations,officialcontrolling,guaranteeandanyotherseals,stamps,
decorations andanyother marks ofdistinction orwhich usesimilar tothose toadegree of
confusion. Such designations maybeusedasanon-protected element ifthere isagreement
oftheappropriate bodies oroftheowner;
- those which donotpossess anydistinction capacity;
- those which became universally usedassymbols ofgoods ofacertain type;
- those which aregenerally accepted symbols andterms;
- those which indicate thetype, quality, quantity, properties, designation, value ofgoods as
wellastheplace andthetimeofthere manufacture andsale.
2. Designations which areindicated inclauses from 3to6ofparagraph 1ofthisArticle may
beusedasnon-protective elements oftrade mark unless theyoccupy thedominant position init.WT/ACC/KAZ/10
Page26
3. Itshallnotbepermissible toregister astrade marks orastheirelements ofthedesignation
asfollows:
- theoneswhich arefalseormisleading inrespect ofacommodity anditsmanufactures;
- which contradict bytheircontent topublic interests, principles ofhumanity andmorals.
Article 15.Other reasons forrefusal toregister adesignation asatrade mark
1. Thefollowing designation which areidentical orsimilar toadegree ofconfusion maynotbe
registered astrade marks:
- withtrade marks which wereearlier registered orapplied fortheregistration intheRepublic
ofKazakstan inthename ofdifferent person inrespect ofsimilar goods andservices;
- withtrade marks ofanyother persons which areprotected without registration because of
international treaties oftheRepublic ofKazakstan;
- withnames ofplaces oftheorigin ofgoods which areprotected intheRepublic ofKazakstan
except forthecases when theymaybeincluded asanon-protected element ofatrade mark
which isregistered inthename ofaperson whohastherighttousethisname oftheplace
oftheorigin ofthegood.
2. Thedesignation which reproduce thefollowing shallnotberegistered astrade marks:
- industrial samples which areprotected intheRepublic ofKazakstan;
- universally known attheterritory oftheRepublic ofKazakstan trade names which belong to
anyother persons whohaveobtained therighttothose names before thedateofthepriority
oftheapplications forthetrade mark inrespect ofsimilar goods;
- names ofwell-known prices ofliterature, science andart;pieces ofartsandthepartswhereof
which areprotected inaccordance withthecopyright;
- surnames, names, pseudonyms andthederivatives whereof, theportraits andfacsimile violating
personal non-property rights ofthose persons, orlegalsuccessors aswellasthose designations
when theyareanasset ofthehistory andculture ofRepublic ofKazakstan without the
permission oftherelevant competent body;
- olympic symbols.
Question 63:
Isthere anypractice bythePatent Office onwhat would constitute regard as"non-use dueto
circumstances beyond thecontrol oftheholder oftrademark"?
Answer:
Atpresent, theRepublic ofKazakstan doesnothaveapractice of"non-use duetocircumstances
beyond thecontrol oftheholder ofthetrademark".
(c) Geographical indications, including appellations oforigin
Question 64:
Aregeographical indications protected against unfair competition within themeaning of
Article 10bisoftheParis Convention?WT/ACC/KAZ/10
Page27
Answer:
Yes.Article9oftheLawonCompetition,DevelopmentandLimitationofMonopolisticActivity
provides thatthefollowing activities shallconstitute unfair competition:
- thepromulgation offalseorincorrect information (thepresentation ofaccurate information
inafalselight) which arecapable ofinflicting damage toassets andbusiness reputation of
another business entity;
- misleading theconsumer inrespect ofthenature, methods andplace ofthemanufacture,
properties, fitness touseorquality ofgoods;
- incorrect comparison ofgoods inthecourse ofadvertising activity;
- unauthorised useofsomeone ’strademarks, servicemarks, tradenames ortrademarks andalso
copying oftheform, package, appearances ofgoods which belong toanother business entity;
- thereceipt, theuseanddivulging ofconfidential research anddevelopment, production ortrade
information, including commercial secrets without consent ofitsowner.
Question 65:
DoesKazak legislation foresee therefusal orinvalidation oftheregistration ofatrademark which
contains orconsists ofgeographical indication? What arethecriteria?
Answer:
Inthe,"Law onTrademarks, Service marks, andtheAppellations ofOrigins ofGoods" the
definition isused, "thename oftheplace oforigin ofaproduct" inrespect ofwhich certain criteria
for"refusing toregister orrecognise themasvalid" areused. According toArticle 16(1) oftheLaw,
ageographical indication mayberecognised asaname oftheplace oforigin. Accordingly, thecriteria
torefuse ortorecognise thename ofaplace oforigin asvalid shallextend overit.
Question 66:
DoesKazak legislation grant protection against ageographical indication which, although literally
trueastotheterritory, region orlocality inwhich thegoods originate, falsely represents tothe
public thatthegoods originate inanother territory? Please explain.
Answer:
Inaccordance withthe"Rules ofConsideration ofanApplication toRegister aTrademark",
(anormative actofthePatent Office registered withtheMinistry ofJustice), "geographic names or
marks including geographical names, which areabletomislead aconsumer regarding theplace of
theapplicant ’slocation. aswellastotheregistration ofthem tothepossession ofoneowner which
maylimittherights ofathirdparty, shallnotberegistered".
Question 67:
Could theGovernment ofKazakstan explain inmore detail theprotection ofgeographical
indications forwines andspirits?
Answer:
There arenospecial criteria fortrademarks onalcoholic products. Suchproducts areregarded
astrademarks including geographical indexes/marks.WT/ACC/KAZ/10
Page28
(d) Industrial designs
Question 68:
Isitpossible toapply directly forapatent forindustrial designs orisitnecessary thatanapplicant
hastoapply forapreliminary patent first?
Answer:
Inaccordance withArticles 4(1)22and24oftheLawonPatents, protection forindustrial
designs requires thattheapplicant apply forapreliminary patent firstsincethisrequirement isstipulated
forbytheprocedure forformal expertise ofthematerials oftheapplication (thismeans thatpatentability
ofindustrial property objects arenotchecked).
Question 69:
Could theGovernment ofKazakstan clarity thelegal implications ofthefollowing statement:
"iftheapplicant, however, doesnottimely submit anapplication forextension, legalprotection
oftheindustrial design shall becancelled from themoment ofthepreliminary patent ’sdateof
expiration".
Answer:
Intheevent thataholder ofapreliminary patent doesnottimely submit anapplication for
conducting afullexpertise (i.e.during fouryears from thedateofsubmitting theinitial application
forapreliminary patent), thepreliminary patent shallbecancelled fromthemoment ofthepreliminary
patent ’soriginal dateofexpiration (aperiod offiveyears fromthedateoftheoriginal application to
thePatent Office).
(e) Patents
Question 70:
Could theGovernment ofKazakstan explain whether anapplicant hasachoice either toapply
forapreliminary patent orforapatent?
Answer:
Inaccordance withArticles 4(1)and22andoftheLawonPatents, protection forpatents
requires thattheapplicant apply forapreliminary patent firstsince thePatent Lawenvisages asystem
wherebyobjectsofindustrialpropertyareprotectedautomaticallyfromthemomentofinitialregistration.
Question 71:
Does Kazak lawalready implement thecriteria forgranting compulsory licenses assetoutin
Article 31oftheTRIPs Agreement? Ifso,please explain how, ifnot,when doestheKazakstan
Government intend tointroduce suchcriteria?
Answer:
Thecriteria forgranting compulsory licenses arethose setoutinArticles 14(4) ofthePatent
Lawwhich involves "interests ofnational security", Articles 11(3) and11(4) which provides forWT/ACC/KAZ/10
Page29
compulsory licenses where itcanbeestablished thatnon-use ofapatent hasoccurred foraperiod of
fiveyears from themoment ofapplication. ThetextofArticles 11(3) and11(4) readasfollows:
Article 11(3): Apatent holder shallbeobligated tousetheinvention, theuseful model or
industrial sample. Theuseshallbeunderstood tomean theintroduction intobusiness circulation
oftheproduct which wascreated withtheuseoftheinvention, useful model orindustrial sample
andalsotheuseofthemethod which isprotected byapreliminary patent orpatent onan
invention.
Incaseofnon-using orinsufficient using bythepatent holder oftheinvention orindustrial
sample overaperiod offiveyears fromthedateofpublishing theinformation concerning the
issueofthepreliminary patent, theuseful model -within 3years fromthedateofpublication
oftheinformation concerning theissue ofthepatent, theperson which desires andisready
tousetheprotected iteminthecaseoftherefusal ofthepatent holder from concluding the
licensing agreement mayapply tothecourt withapetition togrant himacompulsory license.
Ifapatent holder doesnotprove thatnon-using orinsufficient usehasbeencaused byrespectful
reasons, thecourt shallgrant theindicates license withtheprescription ofthelimits ofuse,
amounts, dates andprocedure forpayments. Theamount ofthepayments mustbeestablished
notlower thanthemarket price ofthelicense.
Article11(4):Whereapatentholdermaynotorfailstouseaninvention,usefulmodel,industrial
sample without violating inthatrespect anyrights ofanyother patent holder, heshallhave
therighttorequire from thelatter theconclusion ofalicensing agreement.
4. Enforcement
Question 72:
DoesKazak criminal lawprovide fortheseizure, forfeiture anddestruction incases oftrademark
counterfeiting? Please explain.
Answer:
Atpresent, thelegislation oftheRepublic ofKazakstan doesnotyetprovide fortheseizure,
forfeiture anddestruction incases oftrademark counterfeiting.
Question 73:
Itisstated that Kazak lawforesees the"confiscation ofcounterfeit copies ofworks or
phonograms". (WT/ACC/KAZ/6, question 132) Could theKazak Government explain whether
itslegislation alsoallows theforfeiture anddestruction ofsuchworks? Ifnot,arethere intentions
tointroduce suchmeasures?
Answer:
Yes. BoththeAdministrative Code (Article 170-3) andtheLawonCopyrights andRelated
Rights (Article 49)provide fortheforfeiture anddestruction ofcounterfeit copies ofworks or
phonograms.WT/ACC/KAZ/10
Page30
VI. TRADE-RELATED SERVICES REGIME
Question 74:
Monopolies:
Thereply toquestion 84(WT/ACC/KAZ/6/Add.1) saysthatarecurrently "nolegislative acts
which provide advantages toanyentities...in obtaining licences"; could theKazak authorities
confirm thatthismeans thatthere arecurrently noState monopolies intheservices sector?
Answer:
Thestatement inthereply toquestion 84ofWT/ACC/KAZ/6/Add.1 means theStatecurrently
doesnotprovide advantages tooneentity overanother inobtaining licenses.
There arenoState monopolies intheservice sectors which areconferred bylaw.
There arefewStateandprivate companies intheservice sector which havedominant positions
(greater than35percentmarket share). Thisismainly duetolackofmarket entrants rather than
regulatory barriers.
Please notethatmost natural monopolies (e.g.pipelines forgasandoil,railroads) arestill
owned bytheState.
Question 75:
Telecommunications:
From theanswer toquestion 148(WT/ACC/KAZ/6) itappears thatthere isnotapredetermined
number oflicences available fortheprovision oftelecommunications services, butitisstated that
there aretenders forradio frequency andcellular communication. Could theKazak authorities
confirmthatthereisnopredeterminedlimitonthenumberoftelecommunicationslicencesavailable
andexplain howthetendering system mentioned operates? Further totheanswer provided to
question 94(WT/ACC/KAZ/6/Add.1), could Kazakstan explain howtheinterconnection regime
operates andindicate whether amodel interconnection agreement exists?
Answer:
Atthepresent time, thereisnopredetermined number oflicences fortheprovision oftelecom
services except radio-frequency duetolackofcapacity. Currently, tenders arerequired forobtaining
radiofrequency license. Licenses forothertelecom services areobtained fromtheMinistry ofTransport
and Telecommunications according totheLicensing Law (see reply toquestion 92of
WT/ACC/KAZ/6/Add.1)
Tenders areusedinthefollowing cases:
- more applications thanavailable licenses forthisonekindofactivity inoneregion;
- anewcommunication service, connected with theusage ofmost economical field of
radio-frequency spectra, isoffered.
TheTender Commission consists ofrepresentatives oftheLicensor (Ministry ofTransport
andCommunications) andtheStateCommission forRadio-Frequency oftheRepublic ofKazakstan.WT/ACC/KAZ/10
Page31
Inaddition,independentconsultantsmayberepresentedinthetendercommissionincludinglegalpersons
andrepresentatives ofState Committee ofAnti-Monopoly andPricing Policy, State Committee of
Management oftheState Property, National Agency ofMass Media, Local Supervision Bodies, and
other specialists depending onthekindofactivity andlocation.
TheTender Commission organises andconducts thetender. TheTender Commission prepares:
- tender documentation which include alldocuments connected withtender procedures and
requirements fortheapplication form;
- documentation describing relationship between operator andoperators ofexisting network
including terms ofpayments andnetwork connection;
- draftlicense which includes requirements forthenetwork capacity, services, leveloftariffs
andother terms.
Participants maybeanyentity whohasitsownbank account bank oraguarantee forthe
implementation ofthetechnical project orproposal. Application should havethefollowing information:
- Status ofentity, general characteristics, typeofactivity, proposed juridical form: issuing shares;
- technical feasibility;
- financial feasibility, finance management, andlistoffinancial sources;
- activity andprevious experience inthefieldofcommunication; and
- businessplanwithgeneralanddetaileddescriptionoftechnicalequipmentandmarketestimation.
After preparation ofthetender documentation, theTender Commission makes announcement
inmass media about thetender along withdeadline forsubmitting applications.
During theperiod ofpreparation ofproposals, questions regarding tender maybeprovided
inwritten form totheTender Commission. Answers tothese questions bytheTender Commission
areprovided inwritten form.
Allsubmitted applications areregistered bytheTender Commission. After theexpiration of
theperiod foraccepting applications, theTender Commission makes anannouncement inmassmedia
listing allparticipants inthetender.
During afixed period oftime, theTender Commission considers theapplication andchooses
thebestproposal andoffer. Thebasis ofafinaldecision isdocumented inaprotocol ofthesession
oftheCommission within three daysafterthesession.
KaztelecomisaJSC(50percentStateshare;40percentforeigninvestor;10percentprivileged
shares) operating thegeneral usenetwork. Interconnection tothenetwork isnegotiated between
Kaztelecom andtheapplicant seeking tobeconnected tothenetwork inaccordance withOrder No.
149of1July1996 issued byMinistry ofTransport andCommunications.
Theapplication forinterconnection should contain acopyoflicense, issued bytheMinistry
ofTransport andCommunication, andtechnical standards andspecifications. There isamodel
interconnection agreement. There arenorequirements forpublishing interconnection agreements. An
operator whohasalicense should notberefused interconnection tothenetwork. Alltechnical terms
regarding interconnection should beprovided byKaztelecom upon written request within 30days.WT/ACC/KAZ/10
Page32
Question 76:
Professional Services:
Theanswertoquestion141(WT/ACC/KAZ/6)referstoaprocedureforthedesignandconstruction
ofspecific projects rather than fortheestablishment ofacommercial presence inthefields of
engineering, architectural andurban planing services. CantheKazak authorities confirm that,
inrelation toestablishment offoreign service suppliers inthissector, onlythenon-discriminatory
licensing procedures apply, asforother services sectors.
Answer:
Thelicensing procedure forobtaining alicense inthefields ofengineering, architectural and
urban planing services isthesame fordomestic andforeign service suppliers inthissector.
Question 77:
Financial Services:
Ithasbeen mentioned intheinformation supplied sofarthatanumber ofrestrictions inthe
banking sector aretoberemoved by1January 1999. IsKazakstan prepared tomake such
commitments initsservices schedule?
Answer:
Thereply tothisquestion willbeinreflected intheofferonmarket access onservices which
willbesubmitted totheWorking Party bytheendofJuly1997.
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH THIRD
COUNTRIES
2. Economic Integration: Customs Union andFreeTrade Agreements
(b) Customs union agreements
Question 78:
Article 1.2oftheAgreement onKazakstan ’saccession totheCustoms Union Agreement requires
uniformalization, within fourmonths ofthedateofsignature, oftherespective legislation on
external trade, customs, taxation, andcurrency andfinance asthese relate toforeign economic
activity, withfocus being placed on:
- economic conditions thatcould foster freeenterprise andprovide equal opportunities and
possibilities forbusiness operating inthesignatory states;
- pricing policy;
- currency regulation andmonetary control;
- export controls;
- elimination ofunfair competition anddiscriminatory practices ;and
- protection ofintellectual property.WT/ACC/KAZ/10
Page33
Towhat extent hasKazakstan begun toharmonise itslegislation inrespect oftheabove
commitments withthatoftheother parties totheCustoms Union?
Answer:
According totheplanofmeasures onharmonisation oflegislation between Customs Union
countries, suchwork willbeconducted during 1997-1998.
Question 79:
Weunderstand thatallfourparties totheCustoms Union Agreement havesigned aProtocol to
theeffect thattheyintend toaccede totheWTO asseparate countries, withentirely separate
market access negotiations, though inconsultation witheachother. Wewould note, however,
thatnotwithstanding thisProtocol, thetransition towards harmonisation offoreign trade policy
raises serious questions about theability oftheParties tonegotiate accession totheWTO entirely
separately.
(i) Itseems likely thatthecoverage ofeither parties tariffs commitments intheWTO might
needtobeextended tosome parties notparticipating inthenegotiation. Soifoneparty
weretoaccede before theother there would bepressure forthesecond party totheCustoms
Union toaccept those same tariff commitments.
(ii) There isnoguarantee thatlegislative programmes andtariff commitments undertaken
byanysingly party would indeed bemaintained after accession, astheCustoms Union
requires eventually fullharmonisation offoreign trade policy.
(iii) Clarification willalsobeneeded ofsuggestion thattheCustoms Union maybedeveloped
intoabroader agreement covering other areas suchasservices. Ifthere areplans for
such adevelopment, anindication from Kazakstan (anditspartners) ofthescope and
timetable willbenecessary.
Wewould welcome comment from Kazakstan ontheabove considerations.
Answer:
According tomutual agreement between Customs Union countries, eachmember country of
theCustomsUnionwillaccedetotheWTOseparatelyinconsultationwithotherCustomsUnioncountries
regarding tariff andnon-tariff policy, customs andtaxlegislation, andother issues. Each party will
takeindividual obligations during accession totheWTO. After accession, Customs Union countries
willdefine atransitional period tounify theirlegislation.
Question 80:
What isthenature ofthecustoms control attheborders between Kazakstan andtheRussian
Federation ontheonehand; andKazakstan andKyrgyz Republic ontheother. Areall
consignments stopped andchecked, whatever their country oforigin?
Answer:
Currently, thecustoms control attheborders between Kazakstan andtheRussian Federation
ononehandandKazakstan andtheKyrgyz Republic ontheother handisnotdifferent fromcustoms
control withother countries. Allconsignments arestopped andchecked regardless oftheircountry
oforigin.WT/ACC/KAZ/10
Page34
(c) Freetrade agreements
Question 81:
Please inform theWorking Party ofprogress inobtaining information ondetails ofthepercentage
trade overall andineachmajor sector thatisexcluded from thefreetrade regime foreachfree
trade agreement, andprovide anyinformation available todate.
Please provide theWorking Party with copies oftheProtocols attached totheFree Trade
Agreements either inforce, or,ifavailable, expected toenter intoforce inthenearfuture.
Answer:
Please findinAttachment Acopies ofthetwoprotocols attached tothetwofreetradeagreements
which arecurrently inforce (theKyrgyz Republic andMoldova). Inaddition, adraftprotocol with
Tajikistan isprovided inAttachment A.Thefreetradeagreement withTajikistan hasnotbeenratified.
There arenoexemptions fromfreetradebetween customs union countries (Belarus, Kazakstan,
andRussia). There arenoexemption from freetrade withtheKyrgyz Republic.
Thefollowing tableprovides thetotalvalue ofexports andimports in1995and1996covered
bytheCustoms Union withRussia, Belarus, andthefreetrade agreements withtheKyrgyz Republic
andMoldova.
1995 1996
Export, Th.
US$%of
total
exportImport, Th.
US$%of
total
importExport, Th.
US$%of
total
exportImport,
Th.US$%of
total
import
Russia 2,102,631.2 42.3 1,854,404 49 2,770,645.9 44.5 2,342,309 55.0
Belarus 57,472.8 1.16 79,767.4 2.1 46,982.2 0.75 120,817 2.8
Kyrgyzstan 73,274.4 1.53 30,838 0.82 112,632.8 1.8 91,044.3 2.1
Moldova 2,467.3 0.05 5,553.5 0.14 3,160.8 0.05 8,234.6 0.2
Thefollowing tableprovides export ineachmajor sector excluded fromthefreetraderegime
withMoldova thatareagreed upon inprotocols tothese agreements.
1995 1996
HS Description Export, thousand US$ Export, thousand US$
1001 Wheat (alltypes) 158.3 -
1002 Rye 36.1 -
1003 Barley 40.7 -
1004 Oats 9.5 -
1006 Rice-grain, rice-groats 13.6 12.6
4102 Raw skins ofships orlambs 1.7 1.8
271000790 Products ofcrude oil(including gas
condensate) processing- 29.9
Total: 259.9 44.3WT/ACC/KAZ/10
Page35
ThepercentagesofexportexcludedfromfreetraderegimewithMoldovaintermsofKazakstan’s
totalvalue ofMoldova trade are10.5percentin1995 and1.4percentin1996.
Thefollowing tableprovides import ineachmajor sector excluded fromthefreetraderegime
withMoldova thatareagreed upon inprotocols tothese agreements.
1995 1996
HS Description Import, thousand
US$Import, thousand
US$
2208 Undenatured ethyl alcohol ofanalcoholic
strength byvolume oflessthan80percentvol.;
spirits, liqueurs andother spirituous beverages67.0 929.0
2936 Provitamins andvitamins, natural orreproduced
bysynthesis (including natural concentrates)- 29.6
ThepercentagesofimportexcludedfromfreetraderegimewithMoldovaintermsofKazakstan’s
totalvalue ofMoldova trade are1.2percentin1995 and11.6percentin1996.WT/ACC/KAZ/10
Page36
ATTACHMENT A
LAW OFTHE REPUBLIC OFKAZAKSTAN CONCERNING STATE SUPPORT
TODIRECT INVESTMENTS INTHE REPUBLIC OFKAZAKSTAN
CHAPTER 1-GENERAL PROVISIONS
Article 1.Relationship toBeGoverned bythisLaw
ThisLawshallgoverntherelationshiparisingintheprocessofstatesupporttodirectinvestments
intheRepublic ofKazakstan.
Article 2.Basic Terms
InthisLawthefollowing terms areused:
Investments means alltypes ofproperty invested intoobjects ofentrepreneurship activity in
theterritory oftheRepublic ofKazakstan including:
- movable andimmovable property andproperty rights, retention andother rights;
- shares andother forms ofparticipation incommercial organizations;
- bonds andother promissory notes;
- aspirations ofcash, goods, services andanyother fulfilment under treaties related to
investments;
- theright tointellectual property including authorship rights, patents, trade marks,
industrial designs, technological processes, brand names andknow-how;
- anyrighttoimplementation ofactivity based onalicence orotherwise granted tostate
authorities;
- profit gained andreinvested intheterritory oftheRepublic ofKazakstan.
Theformofinvestmentandchangingofsuchformdonotaffectitscharacteristicsasinvestments.
Direct investments means alltypes ofinvestments except forinvestments bound bysovereign
guarantees oftheRepublic ofKazakstan andbeing thesubject ofofficial technical assistance orgrants
provided totheRepublic ofKazakstan.
Investmentactivitymeansenterpreneurshipactivityassociatedwiththeprocessofimplementation
ofinvestment.
Investor means anindividual oralegalentity oragroup ofindividuals carrying outinvestment
activity.
TheCommittee means theState Committee oftheRepublic ofKazakstan onInvestments.
Contract means anagreement executed between theCommittee andaninvestor determining
theessence oftheprocess ofenforcement ofaninvestment project anditsState support.
Approved investor means aninvestor executed acontract withtheCommittee.
Priority sectors ofeconomy means sectors andregions which inaccordance withtheprocedure
established byArticle 6ofthisLaw, aredetermined asthekeysectors forintensive attraction ofWT/ACC/KAZ/10
Page37
investments anddevelopment forthepurpose ofeconomic growth andriseinefficiency oftheeconomy
oftheRepublic ofKazakstan.
Natural grants means property andproperty rights oftheRepublic ofKazakstan granted to
investors gratis innon-monetary form.
Article 3.Legislation oftheRepublic ofKazakstan onState Support toDirect Investments
1. Legislation oftheRepublic ofKazakstan onStatesupport todirect investments isbased upon
theConstitution oftheRepublic ofKazakstan, comprises norms ofthisLaw, other legislative actsof
theRepublic ofKazakstan, normative legalactsofthePresident andtheGovernment oftheRepublic
ofKazakstan andofother Stateauthorities oftheRepublic ofKazakstan adopted within thecompetence
thereof.
2. Ifaninternational treaty ratified bytheRepublic ofKazakstan provides fortherights different
from those stipulated bythelegislation oftheRepublic ofKazakstan onstate support todirect
investments, therules ofinternational treaty shallprevail.
CHAPTER 2-STATE POLICY OFSUPPORT TODIRECT INVESTMENTS
Article 4.Content ofState Policy ofSupport toDirect Investments
State policy ofsupport todirect Investments comprise:
- legislative guarantees tosecure investment activity;
- establishment ofthesystem ofprivileges andpreferences;
- existence ofasingle body authorized torepresent theRepublic ofKazakstan before
investors.
Article 5.Goals andObjectives oftheState Policy ofSupport toDirect Investments
1. ThegoaloftheState policy ofsupport todirect investments istospeed updevelopment of
production ofgoods andservices inthepriority sectors oftheeconomy bycreation offavourable
investment climate andattraction ofdirect investments.
2. Intheprocess ofachieving suchgoaltheRepublic ofKazakstan accomplishes thefollowing
tasks:
(i) introduction ofnewtechnologies, advanced technique andknow-how;
(ii) satiation ofdomestic market withhigh-quality goods andservices;
(iii) development ofexport-oriented andimport-replacing production;
(iv) rational andcomplex useofrawmaterial basis oftheRepublic ofKazakstan;
(v) putting inplace ofup-to-date management andmarketing methods;
(vi) creation ofnewjobs;
(vii) provision ofintensification ofproduction;WT/ACC/KAZ/10
Page38
(viii) improvement ofenvironment.
Article 6.Priority Sectors oftheEconomy
TheStatepolicy ofsupport todirect investments isexercised inthepriority sectors ofeconomy,
thelistofwhich shallbeapproved bythePresident oftheRepublic ofKazakstan based onaproposal
oftheGovernment, asaruleforthetermofthree years.
CHAPTER 3.MEASURES TOSTIMULATE REALIZATION OFINVESTMENT PROJECTS
Article 7.System ofPrivileges andPreferences
Fortheefficient realization ofaninvestment project theCommittee maygrant thefollowing
privileges andpreferences:
(i) State natural grants;
(ii) reduction oftherateofincome tax,landtaxandproperty taxdown to100percent
ofthebasic rateforthetermofupto5years upon execution ofthecontract, andfor
thesubsequent period ofuptofiveyears reduction oftherateofincome tax,landtax
andproperty taxfornotmore than50percentofthebasic rate;
(iii) fullorpartial exemption fromcustoms duties forimport ofequipment, rawmaterials
andmaterials necessary forrealisation oftheinvestment project.
Article 8.Guarantees toBeProvided bytheRepublic ofKazakstan forProtection ofInterest of
Approved Investors
TheRepublic ofKazakstan guarantees:
(i) nottorestrict therightofanapproved investor todispose itsshare inthecharter fund
orshares ofaneconomic partnership, ortherighttofreetransmission ofthecapital,
profits orrevenues, gained asaresult ofsaleofitsshare inthecharter fundorshares
ofaneconomicpartnership,providedhowever,thattaxesandothermandatorypayments
arepaid;
(ii) nottocreate Statemonopolies controlling saleofrawmaterials andgoods manufactured
byanapproved investor intheterritory oftheRepublic ofKazakstan incompliance
withtheinvestment project;
(iii) nottoapply measures ofcontrol andregulation ofprices intheprocess ofsaleofraw
materials andgoods manufactured byanapproved investor intheterritory ofthe
Republic ofKazakstan incompliance withtheinvestment project, unless otherwise
provided bylegislative actsoftheRepublic ofKazakstan;
(iv) nottoimpede opening bankaccounts bytheapproved investors inthenational currency
oftheRepublicofKazakstanandforeigncurrenciesandconvertingthenationalcurrency
oftheRepublic ofKazakstan tohardcurrency, andconverting hardcurrency tothe
national currency oftheRepublic ofKazakstan asmayberequired forimplementation
ofinvestment activity andnottoimpose anyother restrictions ofcurrency regulation
inrespect toapproved investors;WT/ACC/KAZ/10
Page39
(v) ifnecessary tosetupimport customs duties forgoods which areanalogues togoods
manufactured bytheapproved investor intheterritory oftheRepublic ofKazakstan
incompliance with theinvestment project, unless itcontradicts tointernational
obligations oftheRepublic ofKazakstan.
Article 9.Protection from Amendments andAddenda ofLegislation oftheRepublic ofKazakstan
Ifanyamendment oraddenda ismade tolegislation oftheRepublic ofKazakstan uponexecution
ofthecontract, which entail impossibility tofurther observe theinitial terms ofacontract, orresult
insignificant changes oftheeconomic terms thereof, theapproved investor andtheCommittee shall
introduce amendments andaddenda tothecontract which maybenecessary torestore economic interests
oftheparties asofthedateofexecution ofthecontract.
Article 10.Publicity intheActivity Associated withRealization ofInvestment Projects
1. Thelistofinvestment projects forwhich thecontracts withtheCommittee areexecuted, shall
besubject topublishing inmass media.
2. Allnormative legalactsaswellasjudicial decisions pertaining torealisation ofinvestment
projects bytheapproved investors must beopenfortheinterested parties.
CHAPTER 4-TERMS OFPROVISION OFPRIVILEGES AND PREFERENCES
Article 11.Terms andProvision ofPrivileges andPreferences
1. Privileges andpreferences listed inArticle 7ofthisLawshallbeprovided foronrealization
ofaninvestment project subject toconfirmation that:
(i) privileges andpreferences arenecessary forfulfilment oftheproposed investment
project;
(ii) theinvestor possesses financial, technical andpersonnel abilities forperformance of
theproject;
(iii) Theinvestor bears responsibilities, fulfilment ofwhich isamenable tocontrol andwill
secure fullandtimely realisation oftheinvestment project.
2. Privileges andpreferences shallbegranted bytheCommittee through execution ofcontracts
withtheinvestor.
Article 12.Procedure ofExecution ofaContract
1. Applicationofaninvestorforgrantingprivilegesandpreferencesforrealizationofaninvestment
project inpriority sectors ofeconomy, shallbeaccepted bytheCommittee inaccordance withthe
procedure approved thereby.
2. Within notmore thanthirty daysuponreceipt ofsuchapplication theCommittee shallexamine
ittoseeifitcomplies withthelegislation oftheRepublic ofKazakstan onthestatesupport todirect
investments. Based ontheresults ofsuchexamination theCommittee shallnotify theinvestor onthe
adopted decision.WT/ACC/KAZ/10
Page40
3. Incaseofpositive decision theCommittee jointly withtheinvestor shalldevelop acontract
within notmore thansixty days. Intheprocess ofelaboration ofsuchcontract theCommittee shall
carryoutanexaminationjointlywiththecorespondentStateauthoritiesandifnecessarywithindependent
experts. Inspecial cases theCommittee isempowered toextend thetermofcontract preparation. The
contracts which aremostsignificant fortheRepublic ofKazakstan shallbeexecuted upon consent of
theGovernment oftheRepublic ofKazakstan.
4. Upon execution thecontract shallberegistered withtheCommittee within fifteen daysin
accordance withtheprocedure andterms established bytheCommittee.
5. Compensation ofexpenditures incurred bytheCommittee while organizing andperforming
theexamination oftheinvestment application andcontract, shallbeimplemented atthecostofthe
investor inaccordance withtheprocedure established bytheCommittee.
Article 13.Terms ofTermination ofaContract
1. TheCommittee mayterminate thecontract inthefollowing cases:
(i) misrepresentation orconcealment ofsignificant factsisdiscovered pertinent to
anydataprovided bytheapproved investor totheCommittee;
(ii) theapproved investor failstofulfil itsobligations andtoobserve theterms stipulated
inthecontract;
(iii) incaseofinfringement oflegislation oftheRepublic ofKazakstan.
2. Ifthecontract isterminated onthebasis ofreasons specified inClause 1ofthisArticle, the
approved investor shallbeliable forreimbursement oflosses andshallreturn allshort-paid amount
oftaxes andother feesentailed from privileges andpreferences granted under thecontract, andbe
subject tocorrespondent penalties andfinesstipulated bylegislation oftheRepublic ofKazakstan and
provisions ofthecontract.
CHAPTER 5.STATE BODY AUTHORIZED TOIMPLEMENT THE STATE POLICY OF
SUPPORT TODIRECT INVESTMENTS
Article 14.TheAuthorized State Body
1. TheCommittee shallbetheonlyStatebodyauthorized toimplement theStatepolicy ofsupport
todirect investments intheRepublic ofKazakstan.
2. TheChairmanoftheCommitteeshallbeappointedbythePresidentoftheRepublicofKazakstan
andshallholdthetitleoftheFirstDeputy Prime Minister oftheRepublic ofKazakstan.
TheChairman oftheCommittee shallregularly report tothePresident oftheRepublic of
Kazakstan andPrime Minister oftheRepublic ofKazakstan ontheactivity oftheCommittee aswell
asonthestatus ofinvestment projects.
3. TheactivityoftheCommitteeanditsrepresentativeofficesshallbefinancedfromtheRepublican
budget andoutoffunds received frominvestors inaccordance withClause 5ofArticle 12ofthisLaw.WT/ACC/KAZ/10
Page41
4. Thenumber, structure andterms ofremuneration foremployees oftheCommittee, including
itsrepresentative office, aswellastheprocedure andterms ofemployment ofadvisers, consultants
andexperts, shallbeapproved bytheChairman oftheCommittee.
Article 15.Primary Functions oftheCommittee
Theprimary functions oftheCommittee shallbethefollowing:
(i) arrangement ofactivities aimed atattraction ofdirect investments intotheRepublic
ofKazakstan;
(ii) coordination ofactivities oftheState authorities oftheRepublic ofKazakstan aimed
atrealization ofinvestment projects carried outbytheapproved investors;
(iii) provision ofobtaining allapprovals andpermissions, licences, signatures andother
documentation ensuring therights andauthorities necessary forrealization ofeach
investment project;
(iv) provision ofassistance totheapproved investors insearch forqualified personnel, goods
andservices intheRepublic ofKazakstan;
(v) performance ofcontrol overrealization ofinvestment projects including supervision
overfulfilment oftheobligations oftheapproved investors.
Article 16.Authorities oftheCommittee
Forfulfilling itsfunctions theCommittee isentitled to:
(i) request andreceive allnecessary information frominvestors, central andlocalexecutive
authorities;
(ii) attractspecialistsofthecorrespondentStateauthorities,advisors,consultantsandexperts
which maybeindividuals orlegal entities oftheRepublic ofKazakstan andother
countries, forexecution ofexamination andelaboration ofcontracts;
(iii) coordinate activities ofcentral andlocalexecutive authorities anddiplomatic missions
oftheRepublic ofKazakstan abroad forthepurpose ofstimulating foreign participation
ininvestment projects carried outintheRepublic ofKazakstan;
(iv) publish resolutions ontheissues pertaining topreparation andrealization ofcontracts
which shallbebinding uponMinistries, StateCommittees andother central andlocal
executive authorities. Resolutions oftheMinistries, StateCommittees andothercentral
andlocalexecutive authorities ontheissues pertaining toinvestment activity shallbe
subject toobligatory coordination withtheCommittee.
CHAPTER 6-FINAL PROVISIONS
Article 17.Applicable LawandSettlement ofDisputes
1. ThelawoftheRepublicofKazakstanshallbeapplicableunlessotherwiseprovidedbyprovisions
ofthecontract orother agreements withtheinvestors.WT/ACC/KAZ/10
Page42
2. Alldisputes associated withexecution, performance, termination ofthecontract, supervision
overfulfilment ofthecontract, provision ofincentives andotherdisputes directly related tothecontract,
shallbesettled asmuch aspossible bynegotiations including negotiations withparticipation offoreign
experts orinaccordance withearlier discussed procedures ofdisputes resolutions, including the
procedures provided forinthecontract.
Article 18.Final Provisions
1. ThisLawshallapply tolegalrelations arising upon itsenforcement.
2. Thelegislation oftheRepublic ofKazakstan existing onthedateofenforcement ofthisLaw
shallapply totheextent itdoesnotcontradict thereto [tothisLaw] andmustbebrought intocompliance
therewith [with thisLaw] within twomonths upon enforcement thereof [ofthisLaw].
President
oftheRepublic ofKazakstan
N.Nazarbaev
Almaty, 28February 1997WT/ACC/KAZ/10
Page43
Published in"Kazakstanskaya Pravda" onApril 1997
LIST OFTHE MOST IMPORTANT OBJECTS FOR ATTRACTION
OFDIRECT DOMESTIC AND FOREIGN INVESTMENTS
FOR THE PERIOD UPTOTHE YEAR 2000
1. Production infrastructure
- railway roads andobjects facilitating work ofrailway roads transport;
- automobile roads;
- airports andterminal complexes;
- units ofaeronavigation;
- seaandriver ports;
- bridges andoverpasses;
- electric andthermoelectric power stations;
- transformation substations andelectricity transmission lines(except main lines).
2. Processing industry
- manufacturing ofhighquality clothes, yarn, fabrics, shoes, furandleather products;
- manufacturing ofhighquality furniture andaccessories;
- manufacturing ofnewkinds ofpasteboard andpaper;
- industrial processing ofagricultural production;
- processing offishery andfish-breeding production;
- laying-in andstorage ofagricultural production;
- production ofbabyfood;
- production ofconfectionery, softdrinks andwines;
- manufacturing ofnewhighly technological kinds ofmachinery, equipment andtools.
- manufacturingofallkindsofcars(automobile,lorries,passengerscarriers,specialized),
- aswellasother kinds oftransport equipment;
- manufacturing ofindustrial electronics andelectrotechnical products;
- manufacturing ofelectrotechnical goods andelectronics forconsumption;
- production ofmineral fertilizers andplants protection means;
- production ofhousehold chemicals andperfume andcosmetic goods;
- production ofmedicines;
- production ofmedicines forveterinary;
- production ofgoods offinalprocessing ofblack andcolour metals ofaluminium profile
withappliances ofhigheffective technologies;
- manufacturing ofprogressive andnewkinds ofconstruction materials, constructions
products; and
- waste processing.
3. Akmola Cityobjects
Objects related torelocation ofhighest andcentral bodies toAkmola City.
4. Housing, units ofsocial sphere andtourism
- commercial housing;
- units ofhealth careandeducation;
- units ofsport, recreation, culture, andtourism.WT/ACC/KAZ/10
Page44
5. Agriculture
- growing ofgood cropcapacity grain plants onthebasis ofadvanced technologies;
- production ofgood cropcapacity seedsortsofplant-growing products;
- creation andbreeding upofproductive livestock andpoultry, aswellasbreeding
herd;
- production ofhighly effective, ecologically safefeedforlivestock.WT/ACC/KAZ/10
Page45
LAW OFTHE REPUBLIC OFKAZAKSTAN
Onintroduction ofamendments andadditions intotheDecree ofthePresident oftheRepublic
ofKazakstan having force oflaw‘Ontaxes andother compulsory payments tothebudget ’andon
recognition ofcertain legislative actsaslosing theirforce.
Article 1.Tointroduce thefollowing amendments andadditions intotheDecree ofthePresident of
theRepublic ofKazakstan having force oflawof24April 1995 on"Taxes andother compulsory
payments tothebudget":
1. Item4ofArticle 2shallbestated inthefollowing wording:
"4.Exemption from anylawordecrease oftaxrateenvisaged bythepresent Decree may
becarried outintheorder ofintroduction amendments andadditions intothepresent Decree
andalsoonthebaseofthecontract concluded withtheState Committee oftheRepublic of
Kazakstan onInvestments inaccordance withthepresent Decree andtheLawoftheRepublic
ofKazakstan on"State support ofdirect investments". Itisprohibited toprovide taxprivileges
byother actsincluding privileges having individual character except theprivileges provided
bytheState Committee oftheRepublic ofKazakstan onInvestments inaccordance withthe
lawoftheRepublic ofKazakstan on"State support ofdirect investments".
2. Article 34shallbeadded withItem8ofthefollowing context:
"8. StateCommitteeoftheRepublicofKazakstanonInvestmentsmayestablishthefollowing
privileges tothetaxpayers inaccordance withthecontract:
- rateofincome taxmaybereduced upto100percentofthecommon ratefora5-year
period starting from themoment ofconclusion ofthecontract;
- reduced rateofincome taxwithin thelimits notexceeding 50percentofcommon rate
maybeusedforsubsequent period upto5years.
Specific periods andsizeofprivileges related toincome taxshallbeestablished toeachtaxpayer
inthecontract anddepending onpriority, period andtermofrecover oftheproject. Inannulment
ofthecontract inaccordance withwhich theindicated privilege hasbeenprovided income taxmust
becalculated andpaiduptothebudget forthewhole period ofactivity oftaxpayer withapplication
ofcorresponding penalty sanctions envisaged bytaxlegislation oftheRepublic ofKazakstan.
3. Item3ofArticle 123shalladded withsub-item (x)withthefollowing context:
"(10) thefollowing maybeestablished fortaxpayers inaccordance withthecontract withState
Committee oftheRepublic ofKazakstan onInvestments:
- reduced rateoflandtaxupto100percentofcommon ratefora5-year period starting
from themoment ofconclusion ofthecontract;
- reduced rateoflandtaxwithin thelimits notexceeding 50percentofcommon rate
forsubsequent period upto5years.
Specific periods andsizeofprivileges related tolandtaxshallbeestablished toeachtaxpayer
inthecontract anddepending onpriority, period andtermofrecover oftheproject.WT/ACC/KAZ/10
Page46
Inannulment ofthecontract inaccordance withwhich theindicated privilege hasbeenprovided
landtaxmustbecalculated andpaiduptothebudget forthewhole period ofactivity oftaxpayer with
application ofcorresponding penalty sanctions envisaged bytaxlegislation oftheRepublic ofKazakstan.
4. Item1ofArticle 134shallbeadded withsub-item (vi)ofthefollowing context:
(6)Thefollowing maybeestablished fortaxpayers inaccordance withthecontract withStateCommittee
oftheRepublic ofKazakstan onInvestments:
- reduced rateofproperty taxupto100percentofcommon ratefora5-year period
starting from themoment ofconclusion ofthecontract;
- reduced rateofproperty taxwithin thelimits notexceeding 50percentofcommon
rateforsubsequent period upto5years.
Specificperiodsandsizeofprivilegesrelatedtopropertytaxshallbeestablishedtoeachtaxpayer
inthecontract anddepending onpriority, period andtermofrecover oftheproject.
Inannulment ofthecontract inaccordance withwhich theindicated privilege hasbeenprovided
property taxmustbecalculated andpaiduptothebudget forthewhole period ofactivity oftaxpayer
withapplication ofcorresponding penalty sanctions envisaged bytaxlegislation oftheRepublic of
Kazakstan.
Article 2.Torecognize asinvalid thefollowing:
1. LawofKazakstan SSRof10June1991 on"Investment activity inKazakstan SSR".
2. Resolution oftheSupreme Soviet ofKazakstan SSRof10June1991ontheorder ofintroduction
ofthelawon"Investment activity inKazakstan SSR" intoforce.WT/ACC/KAZ/10
Page47
LAW THE REPUBLIC OFKAZAKSTAN ONSTATE PROCUREMENT
Thecurrent Lawregulates legalrelations, arising inprocess ofstateprocurement ofgoods,
works andservices outoftherepublic andlocalbudget oftheRepublic ofKazakstan aswellasout
ofthenon-budget funds oftheRepublic ofKazakstan, withthepurpose ofeffective disbursement,
determined bytheLegislation oftheRepublic ofKazakstan.
CHAPTER 1-GENERAL PROVISIONS
Article 1.Definitions usedinthisLaw
Thedefinitions, usedinthecurrent Lawareasfollows:
"Auction toreduce prices" formofatender, stipulating bidding procedure attheopenmeeting
oftheTender Commission, among potential suppliers, proposing prices ongoods, works andservices,
which arelower thantheprices, proposed inthetender applications.
"State Procurement" (hereinafter "procurement") -acquisition ofgoods totheState'spossession
intheperson ofcustomers, aswellasobtaining theworks andservices, necessary fortheState, to
bepaidforoutoftherepublican andlocalbudgets andnon-budget funds oftheRepublic ofKazakstan
onthebasis ofprocurement agreements;
"Procurement Agreement" -acivilandlegalagreement onsupply (saleandpurchase, delivery,
contraction, electricity supply, chargeable provision ofservices, contract )between thecustomer and
supplier, inaccordance withtheacting Legislation oftheRepublic ofKazakstan.
"Customer" -central andlocal bodies, their under-departmental entities, implementing
procurement fortheirownneeds outoftherepublican andlocalbudgets andnon-budget funds.
"Tender" -method ofconduction ofstateprocurement, setting upcompetition between potential
suppliers, aimed atrevealing themost profitable conditions ofthestateprocurement agreement;
"Bidsecurity" -acontribution ofapotential supplier, whohasbeenallowed toparticipate in
thetender onState procurement;
"Organizer ofbids(tenders, auction)" -acustomer ortheAuthorized StateBody, regulating
procurement process.
"Supplier -aphysical person orlegalentity, acting asacounterpart ofacustomer inaconcluded
procurement agreement.
"Potential supplier"- physical person orentity, participating intheStateprocurement process
withthepurpose toenter intoagreement onState procurement;
"State procurement process" -acomplex ofconducted measures, aimed atacquisition ofgoods
intotheState'spossession, obtaining ofworks andservices necessary fortheState needs, including
formation ofanomenclature andvolumes ofpurchases, selection ofasupplier, execution and
performance ofaprocurement agreement;
"The Authorized State Body" -central State body, implementing theregulation oftheState
procurement process within thelimitofitscompetence;WT/ACC/KAZ/10
Page48
"Procurementprocessparticipants"-customers,suppliers,tenderorganizers,potentialsuppliers,
suppliers;
Article 2.State procurement process
Stateprocurement process shallmean actions oftheGovernment, Customer andtheAuthorized
Body ontheexecution oftherepublican andlocalbudget, aswellasoutofbudget funds, which include:
- forming thenomenclature andvolume oftheprocured goods, (works andservices)
onthebasisofindicators oftheapproved republican andlocalbudgets andtheapproved
estimate outofbudget funds;
- allocation oforders forprocurement ofgoods, works (services) performance forthe
corresponding financial yearandentering intoState procurement agreements;
- supervision overexecution oftheState procurement agreements.
Article 3.Principals oftheState Procurement Legislation
Legal regulation oftherelationships, related totheprocurement shallbebased ontheprincipals
asfollows:
- optimal disbursement oftheState budget funds aswellasnon-budget funds ;
- provision ofallthepotential suppliers, including withequal opportunities toparticipate
inproviding theStatewithgoods, works, services, except thecases, stipulated bythe
Legislation onProcurement;
- faircompetition among thepotential supplies ofgoods, works andservices.
- (glasnost) freeaccess totheopeninformation related totheStateprocurement process,
disbursement oftheState budget resources andnon-budget funds onexecuted
procurement agreements.
Article 4.Legislation oftheRepublic ofKazakstan intheArea ofState Procurement
1. Stateprocurement legislation oftheRepublic ofKazakstan shallbebased ontheConstitution
oftheRepublic ofKazakstan andcomprise thisLaw, other legislative andnormative legalactsofthe
Republic ofKazakstan, regulating procurement issues.
Article 5.Legislation oftheRepublic ofKazakstan intheState Procurement andInternational
Legislation Norms
IfbyanInternational Agreement, ratified bytheRepublic ofKazakstan, other rules are
established, rather thanthose, which arestipulated bythelegislation oftheRepublic ofKazakstan on
State procurement, thantherules oftheinternational agreement shallbeapplicable.
Article 6.Authorized State Body onGoverning theState Procurement Process
1. Governing theState procurement process shallbecarried outbytheauthorized State body.WT/ACC/KAZ/10
Page49
2. TheAuthorized Body onGoverning theProcurement Process shall:
(i) carry outcoordination andsupervision overprocurement process, implemented by
customers;
(ii) carry outdrafting normative legislative acts,regulating procurement issues, andwithin
it'scompetence, develop andapprove methodological materials onconduction the
State procurement;
(iii) actasanorganizer ofabidding process onprocurement ofgoods, works andservices,
thelistsofthose shallbeestablished bytheGovernment oftheRepublic ofKazakstan;
(iv) actasaorganizer ofatender forcustomers, thelistofwhich shallbeestablished by
theGovernment oftheRepublic ofKazakstan;
(v) render methodological andorganizational assistance tothecustomers inrespect ofthe
procurement process issues.
Article 7.FreeAccess totheOpen Information intheActivity, Related totheState Procurement
(i) allthenormative andlegal actsrelated totheState procurement shallbepublished
intheofficial press;
(ii) information onconducted State procurement shallberegularly published inofficial
press, except theinformation, referring totheState secret;
3. Customer ororganizer ofatender shallobserve confidentiality tillcompletion ofatender in
respect oftheinformation, submitted bythebidders.
CHAPTER 2-ORGANIZATION OFTHE STATE PROCUREMENT PROCESS
Article 8.Procurement Process Implementation
1. Procurement process shall beimplemented byoneofthefollowing methods:
(i) tender;
(ii) solesource procurement.
2. Thetypes ofatender shallbeasfollows :
- opentender;
- close tender;
3. Anopentender andaclose maybeconducted intheform oftwo-stage procedure.
4. While implementing theprocurement process through thetender, participation ofnotlessthan
three potential suppliers shallbenecessary.
Iflessthanthree potential suppliers participate inthetender, atender shallbedeclared asnot
valid.WT/ACC/KAZ/10
Page50
Ifsuchatender isrecognized tobenotvalid, theorganizer shall:
- conduct another opentender notearlier thanthree months later;
- usesole-source procurement method;
- amend thecontent ofthetender documentation.
5. Theorganizer ofatender shallselect aprocurement method andatypeofatender pursuant
tothisLaw.
Inorder toconduct atender, theTender Commission shallbeestablished.
6. Anorder toperform procurement inaccordance withthisArticle aswellasprovisions
(instructions) ontender commission establishment. Theforms ofthetender documentation shallbe
determined bytheGovernment oftheRepublic ofKazakstan.
7. Under-departmental entities ofthecentral andlocalbodies areentitled toactasacustomer
onlyinthecases, iftheprocurement volume of"like" goods, works andservices incostequivalent
doesnotexceed thecalculation index (indicator) multiplied to1,000, tobedetermined bytheLegislation
oftheRepublic ofKazakstan forthefirstquarter ofthecorresponding financial year.
Article 9.General Requirements totheCustomer ’sInformation onthePerformed Procurement
1. Customer ’sinformation shallinclude information asfollows:
(i) name andlocation ofanorganizer ofatender;
(ii) volume,nomenclature,qualityoftheproposedprocurementandscopeofworks,service,
place ofgoods, delivery, performance ofworks andservices;
(iii) required timing forgoods delivery, work performance orschedule ofservices;
(iv) place andmethods ofthetender documents tobedelivered;
(v) place andtiming ofatender, aswellasaplace anddeadline forsubmission ofbids;
(vi) qualification requirements tobeapplied topotential suppliers;
(vii) other necessary information.
2. Acustomer shallimmediately notify potential suppliers about anychanges indocumentation,
thedeadline forsubmission oftender documentation shallbedefined from thedateofnotification
about thelatest changes.
Article 10.Qualification Requirements toaPotential Supplier
1. Toparticipate intheprocurement process, apotential supplier inorder tomeetthequalification
requirements shall:WT/ACC/KAZ/10
Page51
(i) possess professional competence, experience, reputation, equipment andothermaterial
possibilities, aswellasfinancial, material andlabour resources, necessary forfulfilment
ofobligations under theState procurement agreement;
(ii) have civillegalcapacity toenter intoaState procurement agreement;
(iii) besolvent, notbesubject toliquidation, havenoproperty under arrest, benotinvolved
inanyeconomic andfinancial activity tobesuspended inaccordance withcurrent
legislation pursuant totheprocedure stipulated bythelegislation oftheRepublic of
Kazakstan;
(iv) fulfiltheobligations inrespect ofthetaxpayments andother mandatory payments to
thebudget andtonon-budget funds onthemoment ofsubmission ofanapplication
toparticipate inatender aswellasonthemoment theprocurement agreement tobe
entered;
2. Apotential supplier shallprovide anorganizer ofatender withcopies ofcertificates, licences,
statements andother documentation, confirming, thatapotential supplier meets thequalification
requirements.
3. Acustomer shall havenorighttoestablish criteria inrespect ofthequalification requirements
towards thesupplier, except asstipulated inClause 1ofthisArticle, thesupplier shallbeentitled to
provide thecustomer withinformation notrelevant tothequalification requirements thereto.
4. While formulating qualification requirements, theTender Organizer maylimitthenumber of
supplierswiththeKazakpotentialsuppliersduetothereasonsofnationalsecurityanddomesticproducers
support.
5. TheTender Organizer shallbeentitled toeliminate apotential supplier fromtheprocurement
process atanystage incaseofprovision ofnon-complete orinaccurate information onqualification
requirements. Completeness ofthesubmitted information shall beestablished atthemoment of
acceptance ofdocumentation, confirming qualification ofapotential supplier.
Article 11.Content ofTender Documentation
1. TheTender Organizer shallprovide thepotential suppliers withthetender documentation,
comprising information onpreparation ofbidsasfollows:
(i) listofdocuments toconfirm qualification ofapotential supplier;
(ii) technical andqualitative characteristics ofgoods, works andservices tobeprocured,
including technical specifications, plans, drawings; quantity ofgoods; andany
accompanying relevant services, subject toperformance; place where theworks are
tobeperformed orservices aretoberendered; andtherequired terms ofdelivery,
performance ofworks orprovision ofservices;
(iii) criteria which shallbetaken intoconsideration bythecustomer while determining the
winning tender bid;
(iv) corresponding indication anddescription ofthemethods onevaluation andcomparison
ofalternative tender bidsifalternative characteristics ofgoods (works, services) are
permitted, contractual terms orother requirements specified intender documentation;WT/ACC/KAZ/10
Page52
(v) methodology onthebasisofwhich thepriceofatender bidshallbecalculated including
anindication ofwhether theprice shall include other elements inaddition tovalue
ofgoods, works, services themselves, ornot,forexample, anyapplicable expenditures
associated withtransportation andinsurance, customs duties andtaxpayments;
(vi) content orform ofapotential supplier bidsecurity;
(vii) corresponding reference toarightofapotential supplier toamend orrevoke thetender
application before expiration ofthedeadline forsubmission ofthetender applications;
(viii) method, venue andultimate deadline tosubmit tender applications;
(ix) methods toseekclarifications inrespect ofthetender documentation aswellasarequest
forameeting with potential suppliers tobeconducted atthisstage;
(x) place anddate andtimeofopening theenvelopes withtender applications;
(xi) procedures tobeusedforopening andrevision oftender applications;
(xii) information ontender organizer officials, authorized torepresent thetender organizer
while inpreparation ofconducting atender.
2. Asupplier whohasexpressed aninterest toparticipate intheprocurement process shallsubmit
bidding documentation inasealed envelope within thetermpursuant totheclause 1ofthisArticle.
3. ATender Organizer shallbeentitled nottoconsider anybidding documentation, submitted
withviolation ofthetermorrequirements, established byaTender organizer interms ofthecontent
ofthetender documentation tobesubmitted.
Article 12.Clarifications onBidding Documentation Provisions
1. Apotential supplier shall beentitled torequest clarification ofthebidding documentation
provision butnotlaterthan10daysbefore expiration ofthedeadline ofthetender application. ATender
Organizer shallreply tosuchrequest ofapotential supplier within three daysbefore expiration ofthe
deadline forsubmission ofthetender applications, without indication fromwhom therequest hasbeen
received, atender organizer shallprovide withsuchexplanations allthepotential suppliers, towhom
thebidding documents havebeensubmitted .
2. Anytimebefore theexpiration ofthedeadline forsubmission ofbids, aTender Organizer
shallbeentitled, onhisowninitiative orasareply toanyrequest forclarifications from thesideof
anypotential supplier, toamend bidding documentation, incorporating additions (supplements). All
thepotential suppliers towhom thebidding documentation hasbeenaccepted, shallbenotified about
anysupplements immediately andthesupplements shallbeinforce fromthedateofnotification about
thelastofsuchsupplements.
Article 13.Period ofValidity, Changes andRevocation ofBids
1. Tender applications shallbeinforce during theterm, specified inthebidding documentation.
2. Before expiration ofvalidity ofthetender applications, atender organizer mayrequest potential
suppliers toextend thetermfortheadditional specified period oftime. Apotential supplier mayrejectWT/ACC/KAZ/10
Page53
sucharequest, notlosing theright tobidprovision tobereturned, bidvalidity willexpire onthe
dateofexpiration ofnon-extended validity.
3. Unless otherwise isstipulated inthebidding documentation, asupplier mayamend orrevoke
abidbefore expiration ofthedeadline forsubmission ofbids, notlosing arighttobidsecurity tobe
returned. Suchamendment ornotification onarevocation shallbevalid, ifitisreceived byatender
organizer before expiration ofthedeadline forsubmission ofbids.
Article 14.BidSecurity
1. Atender organizer mayrequire from thepotential suppliers, submitting bids, bidsecurity
tobemade.
Inthiscase:
(i) suchrequirement shallbeapplicable toallthepotential suppliers;
(ii) atender organizer shallstatetheforms, volume andother mainterms andconditions
oftherequired bidsecurity.
2. Bidsecurity shall notbereturned toapotential supplier, submitted abidaswellasthe
corresponding bidsecurity, inthecaseifapotential supplier:
(i) revoked oramended abidafterexpiration ofthedeadline forsubmission ofbids, if
otherwise isstipulated inthebidding documentation;
(ii) hasnotentered intoaprocurement agreement afterbeing determined asawinner of
atender;
Atender organizer shallreturn bidsecurity toapotential supplier incaseof:
(i) expiration ofvalidity ofbidsecurity;
(ii) procurement agreement entering intoforce;
(iii) termination oftheprocurement procedures without determining awinner ofthetender;
(iv) revocation ofabidprior toexpiration ofthedeadline forsubmission ofbids,ifsuch
revocation isstipulated inthebidding documentation;
(v) determining another potential supplier asawinner ofthetender.
Article 15.Opening ofEnvelopes withBids
1. ATender Commission shallopentheenvelopes inthepresence ofallthepotential suppliers,
whohavesubmitted thebidsorinthepresence oftheirauthorized representatives atthedate,specified
inthebidding documentation.
2. While opening envelopes withbids,aTender Commission shalldeclare thenames andlocations
ofpotential suppliers aswellastheproposed prices.WT/ACC/KAZ/10
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Article 16.Consideration, Evaluation andComparison ofBids
While considering, evaluating andcomparing bids:
(i) aTender Commission mayseekclarifications from thepotential suppliers inregard
totheirbids, inorder tofacilitate evaluation andcomparison ofbids;
(ii) norequests, proposals orpermissions tobeallowed inorder tobring abid,notmeeting
theformal requirements, intocompliance withthese requirements;
(iii) under allequal conditions offered bythesuppliers, aTender Commission inorder
todetermine awinner ofatender, shallhavetherighttorequest, propose orallow
allthepotential suppliers tochange thecontent ofbids,including amendments ofprice;
conduction ofatender among potential suppliers intheform ofanauction aimed at
price reduction shallbeallowed.
(iv) aTender Commission shallcorrect anygrammar andcalculating mistakes, found in
theprocess ofconsideration ofbids, andapotential supplier shall beimmediately
notified about suchcorrections.
2. ATender Commission mayconsider abidasmeeting theformal requirements ifthere are
some insignificant deviations which donotsubstantially change thecharacteristics, conditions andother
requirementspresentedinthebiddingdocumentation,orifthereareanygrammarorcalculatingmistakes
which maybecorrected without changing thecontent ofabid.Anysuchdeviations shallbeexpressed
quantitatively, andifpossible, theyshallbetaken intoaccount while evaluating andcomparing the
bids.
3. ATender Commission shallreject abid,if:
(i) apotential supplier, submitted abiddoesnotmeetthequalification requirements;
(ii) abiddoesmeet theformal requirements, except thecases, stipulated byPart2of
thisArticle;
4. TheTender Commission shallevaluate, compare bids,which havebeenaccepted toparticipate
inatender, andshalldetermine awinning bidonthebasis ofthelowest price ortaking intoaccount
other criteria, stated inthebidding documentation, except theprice factor.
5. While determining awinning bid,theTender Commission shalltakeintoaccount thecriteria
asfollows:
(i) bidding price;
(ii) expenses formaintenance, technical service andrepair connected withgoods; timing
ofgoods delivery, completion ofworks orrendering services, functional characteristics
ofgoods, including quality certificates, terms ofpayment andterms ofgoods, works
andservices guarantees;
(iii) impact, which maybedonetotheeconomic situation intheRepublic ofKazakstan
orseparate region oftheRepublic ofKazakstan, including:
- stateofbalance andcurrency reserves oftheRepublic ofKazakstan;WT/ACC/KAZ/10
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- share ofuseofrawmaterials resources aswellasproduction andlabour
resources oftheRepublic ofKazakstan, proposed byasupplier;
- opportunities foreconomic growth, including investments intheeconomy of
theRepublic ofKazakstan;
- small business support;
- creation ofnewworking places;
- training ofmanagement, scientific andproduction personnel oftheRepublic
ofKazakstan;
(iv) impact, which maybedonetoadefense orsecurity oftheState;
6. ATenderCommissionshallsumupthetenderresultswithin10daysafteropeningtheenvelopes;
7. Thetender results shallbereflected intheminutes inaccordance withArticle 19ofthisLaw,
tobesigned byaTender Commission andawinner ofatender. Atime-period within which a
procurement agreement tobesigned shallbespecified intheminutes.
8. Information related toconsideration, evaluation andcomparison ofbidsshallnotbedisclosed
topotential suppliers, oranyother official, notparticipated officially inconsideration, evaluation and
comparison ofbidsifotherwise isstipulated inthebidding documentation.
Article 17.Entering intoEnforcement ofAgreement
1. Acustomer shallforward adraftProcurement Agreement toasupplier, selected asawinner
ofatender, according totherules oftheCivil Legislation oftheRepublic ofKazakstan.
2. Ifasupplier, whose proposal hasbeenaccepted byacustomer, doesnotsignaprocurement
agreement within theterms established inPart7ofArticle 16ofthisLaw, thenthecustomer shall
havetherighttosignanagreement withother participants, having more preferable proposal pursuant
toArticle 16ofthisLaw.
3 TheParties shallhavenorighttoincorporate intoaprocurement agreement anyamendments
totheterms, pursuant tothose ofthewinning tender hasbeendetermined.
Article 18.State Procurement Financing
Stateprocurement financing shallbecarried outbyacustomer according tothefinancial plan
onthetargeted useofrepublican andlocalbudget funds aswellthenon-budget funds fortherelevant
financial year.
Article 18.Minutes onTender Results
1. While implementing Stateprocurement fortheamount exceeding theamount ofthecalculating
indicator (index) multiplied by1,000, tobeestablished forthefirstquarter ofthecorresponding financial
year, atender organizer shallenter intominutes ontender results information asfollows:
(i) short description ofthegoods, works andservices;WT/ACC/KAZ/10
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(ii) names andlocation ofpotential suppliers, submitted bidsandaswellasaname and
location ofasupplier, whom theprocurement agreement wasexecuted withandthe
totalvalue ofsuch anagreement;
(iii) information onqualification ofpotential suppliers, submitted bidsorinformation that
suchdataisnotavailable;
(iv) price and/or short description ofother main conditions tobesetupineach bid;
(v) short description ofevaluation criteria andcriteria forbidscomparing;
(vi) indication ofjustifications incaseofrejection ofallthebids;
(vii) indication ofjustifications incaseofrejection ofallthebids;
(viii) general information onrequests forclarification, aswellasreplies andamendments
tothebidding documentation.
2. Information, stipulated bythesubparagraphs 1-4and6-8ofPart1ofthepresent Article shall
beprovided ontherequest ofanypotential supplier, participated inatender, ifasaresult aprocurement
agreement hasnotbeensigned. Such information shallnotbeprovided ifitsdisclosure maybeof
anydamage tothedefence ofthecountry, legalorder andnational security oftheRepublic ofKazakstan,
aswellaslegalcommercial interests oftheparties, orifitconstrains faircompetition.
3. While implementing anyprocurement fortheamount lessthantheamount ofthecalculating
indicator(index)multipliedby1,000,beingestablishedforthefirstquarterofthecorrespondingfinancial
year, atender organizer shallprepare minutes inaccordance withsubparagraphs 1,2and4ofPart
1ofthisArticle
Article 20.Open Tender
1. Anopentender shallbethemain method toimplement procurement except thecases, when
theother method forimplementing procurement isstipulated bythisLaw.
2. Announcement about anopentender andinformation regarding theresults oftheopentender
shallbepublished intheofficial press.
3. Anadvertisement ontheopen tender shall bepublished notlaterthanonemonth before
acceptance ofthetender application isover.
Article 21.Close Tender
1. AClose Tender shallbeconducted when:
(i) goods, services andworks duetotheircomplicated orspecialized character areavailable
onlyatthelimited number ofpotential suppliers andsuchsuppliers areknown of
beforehand;
(ii) time,costs,requiredforconsideration,evaluationofabignumberoftenderapplications,
arenotcommensurable withthecostoftheprocured goods, services andworks.WT/ACC/KAZ/10
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2. Notificationoninvitationofpotentialsupplierstoparticipateinthetenderwiththelimitednumber
ofparticipants shallbeforwarded notlaterthanonemonth before acceptance ofapplications tobe
over.
Article 22.ATender with UseofTwo-Stage Procedures
1. Two-stage tender isthecombination ofthestages asfollows:
Requestofproposalsontechnical,qualitativeorothercharacteristicsofgoods,worksandservices
without indication oftheprice ofabid; analysis ofthesubmitted proposals, andifnecessary
negotiations with potential suppliers.
- submission ofbidswithpriceproposals bysuppliers, whose proposals wererecognized
tobeinconformity withthetechnical, qualitative andother characteristics ofgoods,
works andservices.
2. Two-stage tenders shallbeconducted inthecases when:
(i) itisdifficult toformulate detailed specifications ofgoods, works andservices and
determine technical andother characteristics; andacustomer needs torequest
proposals from potential suppliers orconduct negotiations;
(ii) itisnecessary toconduct surveys, experiments, orinvestigations anddesigns.
(iii) awinner ofatender hasnotbeendefined during aonestage opentender oraclose
tender.
Article 23.Tender with Price Proposals Request
1. Tender withprice proposals request shallbeconducted inrespect ofavailable goods, works
andservices, when thedetailed specification isnotimportant foracustomer, butthepriceisthemain
factor.
2. Tenderwithpriceproposalsrequestshallbeappliedonlyinthecaseifthevolumeofprocurement
of"like" goods, works andservices incostequivalent doesnotexceed thecalculating indicator (index)
multiplied by1,000, being established bytheLegislation oftheRepublic ofKazakstan forthefirst
quarter ofthecorresponding financial year.
3. Division oftheprocurement volume of"like" goods, works andservices totheparts, thevolume
ofwhich isless,thanitisstipulated inPart2ofthisArticle shallnotbeallowed.
Article 24.Sole-Source Procurement
1. Sole-source procurement shallmean procurement without atender andshallbeapplicable
inthecases when:
(i) goods, works andservices areavailable onlyataspecific potential supplier andthe
specific supplier possesses exclusive rights inregard tothegoods, works andservices;
(ii) duetoemergency, ifthere isanurgent needinsuchgoods, works andservices, so
thatconduction ofatender andnegotiations withother suppliers isnotreasonable;WT/ACC/KAZ/10
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(iii) acustomer, having procured goods, equipment, technology orservices fromasupplier,
determines thatadditional procurement shallbemade from thissupplier because of
standardization ornecessity toensure compatibility withtheexisting goods, equipment,
technologies orservices.
2. Atapplication ofPart1ofthisArticle, acustomer shallhavetherighttorequire alljustifications
oftheproposed price forgoods, works andservices.
3. Whileimplementingsole-sourceprocurement,acustomershallrecordthefollowinginformation
intoaprotocol:
(i) justification ofuseofasole-source procurement method;
(ii) short description ofgoods, works andservices, procured from onesource;
(iii) name andlocation ofasupplier, entered intoaprocurement agreement andthevalue
ofsuchagreement.
Article 25.Special Terms ofProcurement toMeet theNeeds ofDefence, Legal Order andNational
Security
Procurements, inorder tomeettheneeds ofdefence, legalorder andnational security shall
becarried outpursuant totheprovisions ofthecurrent Lawexcept thecases when forprocurement
process, establishment ofspecial order isnecessary toprovide observance ofasecret regime aswell
asguarantees ofnational security anddefence capacity oftheRepublic ofKazakstan. Special order
forimplementation ofsuchprocurement shallbedetermined bytheGovernment oftheRepublic of
Kazakstan.
Article 26.Appeal against Actions andDecisions ofaTender Organizer
1. Incaseofviolation ofthelegislation onprocurement during implementation oftheprocurement
process, anypotential supplier shallhavetheright toappeal anyactions anddecisions ofatender
organizer.
2. Thefollowing maynotbesubject toappeal:
(i) selection ofaprocurement method andtypeofatender;
(ii) selection ofcriteria todetermine awinner ofatender;
(iii) restrictions onacircle ofpotential suppliers onthebasisofPart4,ofArticle 8ofthis
Law.
(iv) decision ofanorganizer ofaTender toreject allthebidspursuant tothisLaw.
3. Claims onillegal actions anddecisions ofaTender Organizer shallbelodged inaccordance
with theorder, established bytheLegislation oftheRepublic ofKazakstan.WT/ACC/KAZ/10
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CHAPTER III-FINAL PROVISIONS
Article 27.Control Over Performing theState Procurement Agreements
ControloverexecutingoftheStateprocurementagreementsshallbecarriedoutbytheAuthorized
Body inaccordance withtheacting legislation.
Article 28.Settlement ofDisputes
Alldisputes, thatmayarisebetween acustomer andsupplier during theprocess ofconclusion
andimplementation ofanagreement onprocurement shallbesettled according tothecurrent legislation
oftheRepublic ofKazakstan.
Article 29.Responsibility forViolating theProcurement Legislation
Participants oftheprocurement process shallbearresponsibility, established bythecurrent
legislative actsoftheRepublic ofKazakstan
Article 30.Introduction oftheCurrent Law intoEffect
ThisLawshall beeffective from 1January 1998.
President oftheRepublic ofKazakstan
N.NAZARBAEVWT/ACC/KAZ/10
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THE LAW OFTHE REPUBLIC OFKAZAKSTAN ONANTI-DUMPING (DRAFT)
Withtheviewoffurther integration oftheRepublic ofKazakstan intotheworld community,
provision ofitseconomic security bymeans ofprotection ofKazakstan producers fromunfair methods
ofcompetition, thecurrent Lawshallbeadopted.
CHAPTER 1-GENERAL PROVISIONS
Article 1.Terms andDefinitions
Thenotions usedinlegislation onanti-dumping shallmean thefollowing:
"Like product" -aproduct which isidentical, i.e.alikeinallrespects totheproduct under
consideration or,intheabsence ofsuchaproduct, another product which, although notlike
inallrespects, hascharacteristics andcomponents closely resembling those oftheproduct
under consideration;
"Anti-dumping investigation" -investigation, inrespect ofsupplier ofthegoods, introduced
intothecommerce ofKazakstan ataprice lessthanitsnormal value, ifsuchsalecauses or
threatens tocause injury todomestic producers, producing likeproducts.
"Anti-dumping measures" -special measures, applied bytheAuthorized Body inaform of
provisionalmeasuresandanti-dumpingdutiesforeliminationoftheinjuryallegedbyintroduction
ofthegoods intocommerce ofKazakstan ataprice lessthanitsnormal value.
"Anti-dumping duties" -duties, applied incaseofimportation ofthegoods tothecustoms
territory oftheRepublic ofKazakstan ataprice significantly lessthanitscompetition price
inthecountry ofexport and/or production atthemoment ofexportation, ifsuchexportation
causes orthreats tocause injury tothedomestic producers oflikeordirectly competing goods.
"Related producers orbuyers" shallmean producers orbuyers (participating inthetransaction)
whoarerelated totheexporters orimporters orarethemselves importers oftheallegedly
dumped product, if:
- oneofthem directly orindirectly controls theother;
- bothofthem aredirectly controlled byathirdperson;
- together theydirectly orindirectly controlled byathirdperson;
- theyaretheowners oftheenterprise;
- theyareconnected withtrade relationships;
- oneofthem isthepossessor ofthedeposit (share) ormore than20percent
ofthevoting shares intheequity oftheother;
- theyortheirofficials areclose relatives;
- oneoftheparticipants (individual) oranofficial oftheparticipant isatthe
same timetheofficial oftheother participant.WT/ACC/KAZ/10
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"Injury" -material injury tothedomestic producers ofKazakstan, orthreat ofmaterial injury
ormaterial retardation oftheestablishment andexpansion ofproduction oflikeproducts in
theRepublic ofKazakstan because ofimportation ofthedumped product;
"Provisional anti-dumping measures" -preliminary anti-dumping measures, applied bythe
Authorized Body inrespect ofdumped product supplier intheformofpledge liability orcash
deposit aftertheinitiation oftheanti-dumping investigation.
"Dumping (dumped import)" -unfair actions ofasupplier when aproduct isimported tothe
customs territory oftheRepublic ofKazakstan withthepurpose offurther saleataprice less
thanitsnormal value.
"Interested parties (persons)" -anexporter orforeign producer ortheimporter ofaproduct
subject toinvestigation, oratradeorbusiness association, amajority ofthemembers ofwhich
areproducers,exportersorimportersofsuchproduct.Thegovernmentoftheexportingcountry,
aproducer ofthelikeproduct inKazakstan oratrade andbusiness association, amajority
ofthemembers ofwhich produce thelikeproduct inKazakstan;
"Domestic producers" -Kazakstani producers ofthelikeproducts whose collective output of
theseproducts isconsidered tobesufficient fortheanti-dumping investigation tobeconducted.
"Supplier" -foreign producer, exporter orimporter ofthedumped product.
"Regional producers" -aggregate producers ofthelikeproduct intheregional market, under
thecondition that:
- theproducers within suchmarkets sellalloralmost oftheirproduction oftheproduct
inquestion inthatmarket; and
- theKazakstani producers fromother regions don’tprovide theproduct inquestion to
thatregion.
"Customsclearance"-aprocedureofallocationoftheproductsunderthecertaincustomsregime
andthecompletion oftheregime intheaccordance withtherequirements andprovisions of
theCustoms legislation.
"theAuthorized Body" -StateBody oftheRepublic ofKazakstan incharge ofconducting the
anti-dumping investigation uponapplication bytheinterested parties oronitsowninitiative.
"Export" price -price actually paidorpayable forthegoods forwhich aninvestigation is
initiated.
"Normal value" -value ofproducts payable orpaid intheordinary course oftrade inthe
exporting orproducing country during thesaleofthegoods which areliketothose under
consideration.
"Hearings" -oneoftheanti-dumping investigation procedures, conducted bytheAuthorized
Body, inorder toprovide interested parties anopportunity toconsider disputable issues;
"Official bodies ofacountry" -embassy, consulate, traderepresentative, theAuthorized Body
ofthecountry involved intoinvestigation.WT/ACC/KAZ/10
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Article 2.Sphere ofApplication oftheLaw
Thecurrent Lawshallgovern relations arising asaresult ofinjury orthreat ofinjury todomestic
producers ortheRepublic ofKazakstan 'seconomic interests byexportation ofproducts andtheirfurther
saleataprice lessthantheirnormal value, tothecustoms territory oftheRepublic ofKazakstan.
ThisLawshallregulatelegalrelationsoftheAuthorizedBodywithinterestedpersonsorbetween
different interested parties.
Article 3.Goals andPrinciples ofAnti-Dumping Legislation
1. Thegoalsofanti-dumpinglegislationoftheRepublicofKazakstanshallbeprotectionofdomestic
producersagainstunfaircompetitionfromforeignsuppliersofthelikeproductandeliminationofharmful
consequence fortheRepublic ofKazakstan economy.
2. Anti-dumpingmeasuresshallbeappliedonlyundercircumstanceswhentradepracticesofforeign
suppliers leads tounfair competition.
3. Anti-dumping measures provided forbytheprovisions ofthecurrent Lawshallbeapplied
provided thattheanti-dumping investigation hasbeenconducted inaccordance withtheanti-dumping
legislation.
Article 4.Legislation oftheRepublic ofKazakstan onAnti-Dumping
1. Legislation oftheRepublic ofKazakstan onanti-dumping shallconsist ofthelegislation of
theRepublic ofKazakstan andinternational legislation. Thecurrent Law, other legal actsandthe
normative actsofthePresident andGovernment oftheRepublic ofKazakstan adopted inaccordance
withthisLawarerecognized asthelegislation oftheRepublic ofKazakstan, andalsothenormative
legal actsoftheAuthorized Body. Thecurrent Lawshall define main notions andprinciples of
legislation onanti-dumping, procedure ondetermining thefactofdumping andinjury aswellasthe
terms ofintroduction andelimination ofanti-dumping measures.
Theinternational treaties andagreements, ratified bytheRepublic ofKazakstan arerecognized
astheinternational legislation.
2. Ifaninternational treaty oragreement ratified byKazakstan establishes other rules thanthe
rules contained inthelegislation oftheRepublic ofKazakstan onanti-dumping, therules ofthe
international treaty oragreement shallbeapplied.
CHAPTER 2.STATE ANTI-DUMPING SUPERVISION
Article 5.State Supervision Bodies
1. Thegeneral management oftheStatesupervision overthetradepractice ofthedumped product
suppliers istobeexercised bytheGovernment oftheRepublic ofKazakstan inaccordance withthe
anti-dumping legislation.
2. Direct activity onsupervision andanti-dumping investigation istobeenforced bytheAuthorized
Body, determined bytheGovernment oftheRepublic ofKazakstan.WT/ACC/KAZ/10
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Article 6.TheAuthorized Body
1. TheAuthorized Body operates within theframe ofitsauthority, granted bythisLawandon
thebasis oftheResolutions, adopted bythePresident oftheRepublic ofKazakstan.
2. Incases, stipulated bythisLawandother legislative actsoftheRepublic ofKazakstan, the
President andGovernment normative legal acts, theAuthorized Body issues intheframe ofits
competence thenormative legalactsonprocedures ofanti-dumping investigation..
3. Theanti-dumping duties shall beintroduced bythedecision oftheRepublic ofKazakstan
Government upon theproposal oftheAuthorized Body.
4. While implementing itsfunctions, theAuthorized Body cooperates withtheofficial bodies of
other countries andinternational institutions.
CHAPTER 3-ANTI-DUMPING INVESTIGATION
Article 7.TheSubject ofAnti-Dumping Investigation
Thesubject ofananti-dumping investigation shallbetheimport ofaproduct ataprice less
thanitsnormal value causing injury todomestic producers oflikeordirectly competing products.
Article 8.Application onDetermination oftheExistence ofDumping andInjury
1. Application inwritten formondetermination oftheexistence ofdumping andinjury shallbe
submittedbydomesticproducersoronbehalfofthedomesticproducersinwrittenformtotheAuthorized
Body.
2. Theapplication shallcontain information onthefollowing:
(a) identityoftheapplicantandadescription(volumeandprices)ofthedomesticproduction
ofthelikeproduct bytheapplicant andbyallknown totheapplicant domestic
producers ofthelikeproduct;
(b) description oftheproduct, thenames ofthecountries oforigin orexport inquestion,
theidentity ofeachknown exporter orforeign producer andimporter oftheproduct
inquestion;
(c) information onprices atwhich theproduct inquestion issoldinthemarkets ofcountries
oforigin orexport, information onexport prices anddomestic prices ofthisproduct.
(d) information ontheevolution ofthevolume ofthedumped products, theimpact ofthese
imports onprices ofthelikeproduct inthedomestic market andtheharmful
consequence ofthese imports.
3. Theapplication isconsidered tobeaccepted iftheAuthorized Body recognizes theevidence
provided tobesufficient andnotifies theapplicant inwritten form.WT/ACC/KAZ/10
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When theAuthorized Body considers thattheinformation isinsufficient, itshallnotify the
applicant(s) within 10daysandafford theapplicant(s) thepossibility torevise orsupplement the
application.
When theapplicant revises orcomplements itsapplication, thetimeforassessment shallapply
asofthedateofsubmission oftherevised orcomplemented application.
Article 9.Obligatory Requirements fortheInitiation oftheAnti-Dumping Investigation
Forinitiation ofananti-dumping investigation theAuthorized Body shallprovide thefollowing
conditions:
(a) objectiveness oftheexamination andmaximum ofdomestic producers opinions taken
intoaccount through revelation oftheapplicant ’sshare inaggregated domestic
production oftheproduct under consideration. Withthispurpose theAuthorized Body
hastherighttoobtain theopinions ofother producers ofdomestic products;
(b) theapplication isconsidered tobeprovided onbehalf thedomestic producers iftheir
collective output constitutes more than50percentofthetotalproduction ofthelike
product produced bythatportion ofthedomestic producers expressing either support
fororopposition totheapplication. Theshare ofproduct produced byanapplicant
should notaccount forlessthan25percentoftotalproduction ofthelikeproduct
produced bythedomestic producers.
Article 10.Initiation ofanAnti-Dumping Investigation ontheInitiative oftheAuthorized Body
IncaseoftheAuthorized Body having sufficient evidence ofdumping andinjury caused by
importation ofthedumped product, theAuthorized Body hastheright toinitiate ananti-dumping
investigation onitsoninitiative, inaccordance withtheprocedure established bytheRepublic of
Kazakstan Government.
Article 11.Grounds forRefusal toInitiate anAnti-Dumping Investigation
TheAuthorized Body shallrefuse toinitiate aninvestigation onthebasis oftheapplication,
if:
(a) theamount ofthedumping isdeminimis andthatthemargin ofdumping islessthan
2percent, expressed asapercentage oftheexport price;
(b) thevolume ofdumped exports andinjury isinsignificant, imports oftheproducts from
thatexporting country under consideration intoKazakstan represents lessthan3per
centofimports ofthelikeproduct intoKazakstan, unless countries under investigation
collectively account formorethan7percentofimports ofthelikeproduct inKazakstan.
Article 12.Withdrawal ofApplication onDetermination ofExistence ofDumping andInjury
Anyapplication maybewithdrawn prior toinitiation orintheprocess ofaninvestigation.
Incase, theapplication hasbeenwithdrawn priortoinitiation, itshallbeconsidered nottohavebeen
made. Anapplication maybewithdrawn atanytimeafteraninvestigation hasbeeninitiated, inwhich
casetheAuthorized Body shalldecide whether tocontinue theinvestigation orterminate itwithout
measures undertaken.WT/ACC/KAZ/10
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Article 13.Decision onInitiation ofanAnti-Dumping Investigation
Anydecision toinitiate orrefuse toinitiate ananti-dumping investigation shallbeadopted by
theAuthorized Body within 60daysofthedatewhen theapplication wasaccepted.
Thedecision toinitiate orrefuse toinitiate ananti-dumping investigation ismade onthebasis
ofallprovided dataafterexamination assetforth inArticles 9,10and11ofthisLaw.
TheAuthorized Body shallnotify allinterested parties ofitsdecision; incaseofrefusal, it
shallnotify thereasons fornotinitiating theinvestigation.
Article 14.Public Notice ofInitiation ofanAnti-Dumping Investigation
1. When theAuthorized Body hasdecided toinitiate ananti-dumping investigation theAuthorized
Body:
- shallnotify theinitiation ofaninvestigation toallinterested parties;
- shallgivepublic notice innotlessthentwoeditions oftheRepublican mass media.
2. Apublic notice oftheinitiation ofaninvestigation shallcontain adequate information onthe
following:
(a) thename oftheexporting country orcountries andtheproduct involved;
(b) thedateofinitiation oftheanti-dumping investigation;
(c) thebasis onwhich dumping isalleged intheapplications;
(d) asummary ofthefactors onwhich theallegation ofinjury isbased;
(e) thetime-limits within which interested parties shall, inwriting, apply foraccess to
thenon-confidential file,apply forauthorization tomake theirviews known andrequest
ahearing.
Article 15.Disclosure ofApplication onDetermination ofDumping andInjury
1. TheAuthorized Body shall, assoonastheinvestigation isinitiated, provide thefulltextof
thewritten application received tointerested parties involved upon their request, butconfidential
information isnotsubject todisclosure.
2. Where thenumber ofexporters involved isparticularly high,theAuthorized Body shallprovide
thetexttotheofficial bodies oftheexporting and\or producing country(ies).
CHAPTER 4-ANORDER FOR DETERMINATION OFDUMPING
Article 16.Dumped Product
Aproduct, imported fromanother country toKazakstan atapricelower thanitsnormal value
shallbeconsidered asdumped, iftheexport price forthisproduct islower thantheprice, established
intheordinary course oftrade transactions foralikeproduct, being destined forconsumption inthe
exporting and/or producing country.WT/ACC/KAZ/10
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Article 17.Normal Value Determination
1. Salesbetween mutually related buyers shallnotbeconsidered tobeperformed intheframework
ofordinary trade transactions andshallnotbetaken intoaccount indetermining thenormal value,
except incases, where proofs havebeenpresented, thatthefactofdependence hasnotinfluenced the
price oftheproduct.
2. Inthecasewhere theproduct isimported toKazakstan notfrom thecountry oforigin, but
from anintermediate country, theAuthorized Body shalldetermine normal value, asarule,onthe
basis ofaprice paidorpayable intheintermediate country (export country).
Normal value shallbedetermined according tothepriceinthecountry oforigin inthefollowing
cases:
- ifproducts areonlytrans-shipped through thecountry ofexport;
- likegood arenotproduced inthecountry ofexport;
- incases where acomparable price forsuchproducts inthecountry ofexport isnot
available.
3. Incaseofimpossibility todetermine thenormal value ofaproduct, based onprices inthe
domestic market oftheexporting market (duetothereasons thatsaleoflikegoods isnotavailable
orsuchsalesdonotallow tomake appropriate comparison because ofaspecific market situation or
small volume ofsalesinthedomestic market oftheexporting country), theAuthorized Body shall
determine thedumping margin bymeans of:
(a) comparing withtheprice oflikegoods, when exported toathird country, onthe
condition, thatsalesofthisproduct aremade insufficient quantity;
(b) comparing withaconstructed value, covering production andsalescosts, aswellas
profit determined inaccordance withArticle 18ofthisLaw.
4. Sales ofalikeproduct maybeconsidered tobemade insufficient quantity todetermine normal
value, ifthesales destined forinthedomestic market oftheexporting country andexports tothird
countries andwiththatvolume ofimports toKazakstan is5percentandmore ofthesalesvolume
ofthisproduct toKazakstan. TheAuthorized Body mayapply alower percentage ofsaleifitis
convinced thatsuchalower saleisappropriate forcomparison.
Article 18.Calculation ofProduction Costs andProfit
1. TheAuthorized Body shallmake calculations ofproduction costs onthebasis ofaccounting
records ofasupplier, inrespect ofwhom ananti-dumping investigation isconducted, under thecondition
thatsuchrecords areinconformity withrecognized accounting principles oftheexporting and/or
producing country andaccurately reflect thecosts, related toproduction andsaleoftheproduct.
2. TheAuthorizedBodyshallconsiderallavailableevidenceofcorrectallocationofcosts,including
those submitted byasupplier intheprocess ofanti-dumping investigation, under thecondition, that
suchdistribution hasbeenusedbythesupplier onaregular basis, inparticular, forthepurpose of
establishing theappropriate termandnorm ofdepreciation, capital expenditures andother costs for
development ofproduction.WT/ACC/KAZ/10
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3. TheAuthorized Body shalladjust costs, taking intoaccount non-recurrent items ofexpenses
fordevelopment ofproduction, orfortheperiod ofstart-up ofproduction. Adjustments forproduction
start-up shallcover theproduction costs attheendoftheproduction start-up period, orifthatperiod
isnotwithin theperiod oftheanti-dumping investigation, themostrecent expenses, which maybe
taken intoconsideration bytheAuthorized Body during theanti-dumping investigation.
4. Theamount ofcostsaswellasprofit shallbebased ontheactual dataonproduction andsales
oflikegoods intheprocess ofordinary trade transactions, presented byasupplier inrespect ofwhom
ananti-dumping investigation isconducted. Ifsuchamounts cannot bedetermined onthisbasis, they
shallbedetermined onthebasis of:
(a) actualamountspaidorreceivedbythesupplierinquestioninconnectionwithproduction
andsaleoflikeproduct inthedomestic market ofthecountry oforigin and/or
export.
(b) theweighted average actual amounts, paidorreceived byother suppliers inrespect
ofwhom ananti-dumping investigation isbeing conducted inrespect oftheproduction
andsaleoflikeproduct inthedomestic market ofthecountry oforigin and/or export.
5. Ifitisnotpossible touseeither ofthese methods, theAuthorized Body shallhavetheright
touseanother reasonable method, butonlyunder thecondition thattheamount forprofit established
bysuchmethod shallnotexceed theprofit, obtained byother suppliers while selling likeproducts of
thesame general category inthedomestic market ofthecountry oforigin and/or export.
Article 19.Calculation ofExport Price
1. Incases, when anexport price isnotavailable, orwhen theexport price isunreliable inthe
opinion oftheAuthorized Body, theexport priceshallbeconstructed onthebasisofthepriceatwhich
theimported products arefirstresold toabuyer, notdependent onthesupplier ortheseller.
2. Undercircumstances,stipulatedbyparagraph1,whilecalculatingtheexportprice,theAuthorized
Body shallbeentitled toomitallthetransactions between therelated parties.
Article 20.Comparison ofExport Price andNormal Value
1. TheAuthorized Body shallmake afaircomparison between theexport price andthenormal
value. Such comparison shallbemade atoneandthesame stage ofatrade transaction, usually at
theexfactory level, andinrespect ofsalescarried out,ifpossible, atoneandthesame time. Ineach
case, allthenecessary allowances shallbemade, taking intoaccount thedifferences, which affect
comparability ofprices, including thedifference interms ofimports, taxation, stageoftradetransaction,
quantity, physical characteristics andalsoanyotherdifferences inrespect ofwhich theinterested parties
provide evidence oftheirimpact upon theprice comparability.
2. Incases when theexport priceiscalculated onthebasisofapriceatwhich theimported product
isresold toanindependent buyer forthefirsttimeinaccordance withArticle 19ofthisLaw, corrections
fortheexpenses, including duties andtaxes paidintheperiod between importation andresale andalso
fortheamount ofprofit made astheresult oftheimportation anddistribution oftheproduct shall
beincluded. Ifinsuchcases comparability ofprices isaffected, theAuthorized Body shallestablish
thenormal value atthestage oftrade transactions equivalent tothestage atwhich theexport price
wascalculated orshallmake necessary allowances foreseen bythisArticle.WT/ACC/KAZ/10
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3. TheAuthorized Body hastherighttorequire theinformation necessary forsuchcomparison
fromtheinterested parties. Ineachconcrete caseitestablishes thenecessary procedure forprovision
oftheevidence byeachinterested party.
Article 21.Determination oftheMargin ofDumping
1. Thepresence ofamargin ofdumping shallbedetermined onthebasis ofacomparison ofa
weighted average normal value withaweighted average price ofallcomparable export transactions,
orbycomparison ofnormal value withexport prices ineachconcrete transaction.
2. Normal value determined onthebasisofaweighted average maybecompared withtheprices
ofconcrete export transactions iftheAuthorized Body finds thatthestructure ofexport price is
significantly different fordifferent customers, regions ortimeperiods. Insuchcircumstances the
Authorized Body shallgiveanexplanation totheinterested parties, whysuchdifferences cannot be
taken appropriately intoaccount while comparing either weighted average quantities ortheconcrete
transaction prices. Abriefexplanation shallalsobegiven inthenotification onapplication ofprovisional
measures oranti-dumping duties.
Article 22.TheProcedure forDetermination ofMargins ofDumping
1. TheAuthorized Body shalldetermine anindividual margin ofdumping foreachsupplier of
theproduct involved inananti-dumping investigation.
2. Incases when thenumber ofthesuppliers, importers ortypes ofproducts involved inan
anti-dumpinginvestigationmakesitpracticallyimpossibletodeterminetheindividualamountofdumping
foreachofthem, theAuthorized Body maylimittheresearch bytheutilization ofastatistically valid
selection onthebasis ofinformation available totheAuthorized Body atthemoment ofmaking the
selection, orbythehighest percentage ofexports from thecountry involved intheanti-dumping
investigation.
3. Incases where theAuthorized Body restricts theinvestigation asitisstipulated inthisArticle,
thesuppliers notinvolved inthepreliminary selection mayalsoprovide data. TheAuthorized Body
determinestheindividualamountofdumpingforeachsupplier,notinvolvedinthepreliminaryselection,
ifheprovides thenecessary information within thetime-frame when itistobetaken intoconsideration,
except cases where thelargenumber ofthesuppliers incaseofindividual consideration would prolong
theanti-dumping investigation period andwould interrupt thetimely completion ofthecase.
Article 23.Sales ataPrice Lower thantheLevel ofCosts andSales
1. TheAuthorized Body doesnotconsider thesalesoftheproduct which isunder ananti-dumping
investigation inthedomestic market oftheexporting country orsalestoathirdcountry atprices lower
thantheleveloftheproduction andsalescosts perunitoftheproduct assalesmade intheordinary
course oftrade, because oftheunder-pricing anddoesnottakeintoaccount thesesaleswhile determining
thenormal value incases these salestookplace :
(a) within anextended period oftime(uptooneyear, butnotlessthansixmonths);
(b) insubstantial quantity;
(c) atprices which donotprovide fortherecovery ofallcostswithin areasonable period
oftime.WT/ACC/KAZ/10
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2. Salesatprices lower thanthelevelofcostsperunitareconsidered asmade insubstantial quantity
iftheAuthorized Body determines that:
(a) theweighted average salepriceintransactions being taken intoaccount intheprocess
ofdetermination ofnormal value arelower thentheweighted average costs per
production unit; or
(b) thevolume ofsales atprices lower thantheproduction costs perproduction unitis
20ormore percentofthevolume ofsales intransactions being taken intoaccount
forthedetermination ofnormal value.
3. Ifprices, lower thantheproduction andsales costs atthemoment ofsale,andhigher than
weighted average costs intheperiod ofinvestigation, theAuthorized Body considers suchprices as
providing fortherecovery ofallcosts within areasonable period oftime.
Article 24.Currency Conversion
Ifcomparison ofexport price andnormal value requires aconversion ofcurrencies, the
Authorized Body should make suchconversion using anobjectively justified exchange rate. Normally
thedateofcontract, purchase order, confirmation oftheorder orinvoice isconsidered asthedate
ofsale, depending onthedocument determining theterms ofthesale.
Ifexport imports aredirectly linked withthesaleofforeign currency byasupplier inforward
markets, theAuthorized Body shallusetherateofexchange applied fortheforward saleofcurrency.
TheAuthorized Body doesnottakeintoaccount short-term fluctuations oftheexchange rates
andtheexporters areallowed notlessthan60daysforcorrection ofexport prices taking intoaccount
sustained changes oftheexchange ratesduring theanti-dumping investigation.
CHAPTER 5-DETERMINATION OFINJURY
Article 25.Principles ofInjury Determination
Determination ofinjury isbased onevidence andincludes theexamination ofthevolume of
dumped imports anditsimpact onprices oflikeproducts inthedomestic market andtheconsequence
ofsuchimports forthedomestic producers ofthese products.
Article 26.Cumulated Evaluation ofInjury
When imports ofaproduct from more thenonecountry issubject tosimultaneously-held
anti-dumping investigations, theAuthorized Body mayevaluate thecumulated impact ofsuchimports,
ifitisdetermined that:
themargin ofdumping determined forimports from eachcountry ishigher thendeminimis
andthevolume ofimports from eachcountry isnotnegligible asstipulated inArticle 11of
thisLawandcumulated evaluation oftheimpact ofimports isappropriate bothforcompetition
between imported products andbetween imported products andlikeproducts domestically
produced.WT/ACC/KAZ/10
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Article 27.Research ofVolume andPrice ofDumped Product Imports
1. WhileexaminingthevolumeofdumpedproductimportstheAuthorizedBodydetermineswhether
asignificant increase ofdumped product imports tookplace inabsolute terms, orrelative toproduction
orconsumption inKazakstan.
2. While examining theimpact ofthedumped product onprices, theAuthorized Body determines
whether there wassignificant under-pricing ofsuchproduct imports incomparison withtheprice of
alikeKazakstani product ortowhatdegree imports ofthedumped product effect thedecline ofprices
orimpede theincrease which should havetaken place otherwise.
Article 28.Evaluation ofImpact ofDumped Product Imports onDomestic Producers
1. Theexamination oftheimpact ofdumped product imports ondomestic producers includes
evaluation ofalleconomic factors andindexes affecting theposition ofthisproduction bytheAuthorized
Body, including:
- actual andpotential decline insales, profit, production, market share, productivity,
effectiveness oftheinvestments orutilization offacilities;
- factors affecting theprices inthedomestic market;
- margin ofdumping;
- actual andpotential impact oncashflows, inventories, employment, wages, growth
rate,opportunity toattract capital orinvestments.
2. Inorder toprovide comparativeness oftheproduction conditions ofthedumped product and
likeproduct inKazakstan, andalsotoexclude theimpact ofother factors, notstipulated bydumped
product import, theAuthorized Body shallruntheresearch ofdomestic production oflikeproduct
examining theproduction-technological process, salesoflikeproduct bydomestic producers andprofit.
When therearenosuchdata,theimpact ofdumped product imports shallbeevaluated byexamination
oftheproduction ofthenarrowest group orrange ofproducts, including likeproducts, forwhich
necessary information canbeprovided.
Article 29.Evidence ofInjury
1. TheAuthorized Body mustdemonstrate onthebasisofactual datathatimports ofthedumped
product causes injury todomestic producers asaresult ofdumping. Thecausal linkbetween imports
ofthedumped product andinjury todomestic producers shallbedemonstrated byactual dataprovided
byinterested persons.
2. Inaddition toimports ofthedumped product, theAuthorized Body shallexamine other known
factors which atthesametimecause injury todomestic producers, butsuchinjury shallnotbeconsidered
asaresult ofdumped imports. These factors, include, specifically, volume andprices ofimports,
which were notsoldatdumped prices, reduction ofdemand orchanges inconsumption structure,
restrictive trade practices andcompetition between foreign anddomestic producers, achievements in
technology andalsotheexport performance andeffectiveness ofdomestic industry.WT/ACC/KAZ/10
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Article 30.Injury toRegional Producers
When, there isaconcentration ofdumped product imports inseparate regional markets and
these imports cause injury tothedomestic producers theAuthorized Body hastheright toconduct
ananti-dumping investigation inaccordance withtheprovisions ofthisLaw, inrespect ofthatregion.
Article 31.Threat ofMaterial Injury
1. TheAuthorized Body shallbaseitsdetermination ofathreat ofmaterial injury todomestic
producers caused bydumped product imports onthebasis ofanalysis ofthefollowing factors:
(a) asignificant growth ofdumped product imports inthedomestic market, pointing to
thepossibility ofasignificant increase inimports;
(b) thesupplier hassufficient export capacity indicating thepossibility ofasignificant
increase inimports ofdumped product toKazakstan, taking intoconsideration the
possibility forother export markets toabsorb anyvolume ofadditional imports;
(c) imports atprices which willhaveasignificant declining ordepressing influence on
theprices inthedomestic market, which mayincrease thedemand foradditional
imports;
(d) inventories ofgoods, inrespect ofwhich ananti-dumping investigation isheld.
CHAPTER 6-THE PROCEDURE OFTHE ANTI-DUMPING INVESTIGATION
Article 32.Duration ofInvestigation
TheAuthorized Body shallconclude investigations ondumping orinjury within oneyear,
except inspecial circumstances, when, ondecision oftheAuthorized Body, itcanbeprolonged for
anadditional 6months.
Article 33.Information onanAnti-Dumping Investigation
1. Uponinitiationoftheinvestigation,theAuthorizedBodyshallsendquestionnairestoallinterested
parties.
Theinterested parties shallbegiven 30daysforreply. Thistime-limit canbeprolonged by
theAuthorized Body, butnotmore thanforanadditional 30days. Thequestionnaire shallbedeemed
tohavebeenreceived oneweek from thedayonwhich itwassenttotherespondent ortransmitted
toanofficial representative oftheinterested party.
Incaseduring theinvestigation additional information isneeded, theAuthorized Body can
request itfrom theinterested parties, mentioning thetime-frame forprovision ofsuchinformation.
2. Eachinterested party shallbegiven ample opportunity topresent inwriting allevidence which
itconsiders relevant. Written evidence shallnonetheless notbeaccepted afteraperiod of10days
following thehearings, stipulated byArticle 38ofthisLaw.WT/ACC/KAZ/10
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Article 35.Confidentiality ofInformation onanAnti-Dumping Investigation
1. Anyinformation which isprovided asconfidential, shallbetreated assuchbytheAuthorized
Body. Suchinformation shallnotbedisclosed without written permission oftheparty submitting it.
2. Theparty providing confidential information shallfurnish anon-confidential explanatory note
thereof. Thisexplanatory noteshallbeinsufficient detail topermit areasonable understanding of
thesubstance oftheinformation submitted inconfidence orgiveanexplanation whyprovision ofsuch
non-confidential explanatory noteisimpossible.
3. IftheAuthorized Body findsthatarequest forconfidentiality isnotwarranted andifthesupplier
oftheinformation iseither unwilling tomake theinformation public ortoauthorize itsdisclosure,
theauthorities maydisregard suchinformation unless itcanbedemonstrated totheirsatisfaction from
theappropriate sources thattheinformation iscorrect.
4. Theperson responsible fordisclosure ofconfidential information shallbetreated inaccordance
withcurrent Republic ofKazakstan legislation.
Article 35.On-the-Spot Verification ofInformation onanAnti-Dumping Investigation
1. Inorder toverify information provided ortoobtain further details, theAuthorized Body may
carry outinvestigations inother countries asrequired, provided itobtains theagreement ofthefirms
concerned andprovided itnotifies therepresentatives ofthegovernment ofthecountry inquestion
andunless thelatter object totheinvestigation. Ananti-dumping investigation ontheterritory of
country-members ofWTO shallbeperformed inaccordance withprocedures provided forbyWTO.
2. TheAuthorized Body shallselect aninvestigation period which, inthecaseofdumping, shall
normally cover aperiod from sixmonths tooneyearimmediately preceding thedateofinitiation of
theinvestigation. Information regarding injury shallnormally begathered during aperiod ofupto
fouryears.
Article 36.Reliance onAvailable Information onanAnti-Dumping Investigation
Incasesinwhich anyinterested party doesnotprovide, necessary information within theperiod
oftimeprescribed bytheAuthorized Body orotherwise significantly impedes theinvestigation,
Authorized Body mayreach determinations, onthebasis oftheinformation available.
Article 37.Filing
1. TheAuthorized Body shall maintain afilerelating toeachinvestigation inwriting andin
accordance withtheestablished procedure. Alldocuments relating totheinvestigation shallbefiled
andaperiod ofkeeping shallbedetermined bytheAuthorized Body.
2. Thefileshallbeavailable totheinterested parties review ontheirdemand throughout thecourse
oftheinvestigation orreconsideration.
Article 38.Hearings
1. Interested parties shallbeentitled torequest theAuthorized Body forapreliminary hearing
ofthecaseinorder toreview thematerials ofthecaseandarguments ofadverse parties.WT/ACC/KAZ/10
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2. Hearings shallbechaired byanofficial oftheAuthorized Body. Thisofficial shallensure
thatconfidentiality ispreserved totheextent necessary. Such presentations shalltaketheform of
hearings atwhich theofficials oftheAuthorized Body, authorized representatives oftheinterested
parties andwitnesses foraninterested parties, provided thattheinterested party notifies inadvance
thenames ofthewitnesses totheAuthorized Body, shallbepresent. Each party shallbeentitled to
onehearing tobeheld.
3. Allinterested parties shallbeentitled toprovide additional evidence totheAuthorized Body,
within 10daysaftertheAuthorized Body hasheldahearing.
4. TheAuthorized Body mayholdadditional hearings, requests foradditional hearings shallbe
dulyjustified.
5. TheAuthorized Body runstheprotocol ofthehearings. Interested parties havetherightto
provide additional information orally. Oralinformation, submitted inaccordance withtheprovisions
ofthisArticle, shallbetaken intoaccount bytheAuthorized Body onlyinsofarasitissubsequently
reproduced inwriting.
Article 39.Preliminary Affirmative Determination
Onthebasis offacts, received during theinvestigation, theAuthorized Body shallmake a
preliminary affirmative determination onthepresence ofdumping andinjury tothedomestic producers
Article 40.Provisional Measures andProcedures oftheirImposition
1. Theprovisional measures intheformofacashdeposit orapledge liability shallbeimposed
bytheAuthorized Body onlyafterapreliminary affirmative determination andnotsooner than60days
from thedateofinitiation oftheinvestigation.
2. TheAuthorized Body shallinform allinterested parties andofficial representatives oftheir
countries ofitsintention toimpose provisional measures 30daysbefore adopting those measures and
shallgrant 10daystoallinvolved parties tocomment inwriting onthereasons fortheimposition of
provisional measures.
3. Provisional measures shallbeimposed bytheCustoms Authorities onlyonproducts entered
forconsumption intothecustoms territory ofKazakstan afterthedateofpublication ofthedecision
imposing provisional measures inaccordance withtheorder, determined inItem1ofArticle 14of
thisLaw.
Article 41.Public Notice ofImposition ofProvisional Measures
Thedecision oftheAuthorized Body toimpose provisional measures shallbepublished atleast
intwomass media editions oftheRepublican circulation andsuchanotice shallcontain:
(a)thenames ofthesuppliers, orthesupplying countries involved;
(b) adescription oftheproduct which issufficient forcustoms purposes;
(c) determined dumping amount andafullexplanation ofthereasons forthemethodology
usedinthecalculations;
(d) criteria oftheinjury determination;WT/ACC/KAZ/10
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(e) themain reasons leading totheprovisional measures imposition;
(f) anyother information which isappropriate fortheunderstanding ofthefactual and
legalsituation.
ThePublic notice shallnotcontain confidential information.
Article 42.Duration ofApplication ofProvisional Measures
Provisional measures shallbeapplied foraperiod notexceeding sixmonths; incaseoflow
duty, thatdoesnotcover theelimination ofinjury theperiod ofapplication ofprovisional measures
canbeextended foraperiod ofninemonths.
Article 43.Customs Clearance
Ananti-dumping proceeding shallnothinder theprocedures ofcustoms clearance.
CHAPTER 7.CONCLUSION OFTHE ANTI-DUMPING INVESTIGATION
Article 44.Conclusion oftheAnti-Dumping Investigation
1. Notlaterthanonemonth before afinaldecision ismade, theAuthorized Body shallinform
allinterested parties oftherelevant main facts, onbasis ofwhich thefinaldecision willbemade.
Interested parties shallbegranted 15daystoprovide theircomments totheAuthorized Body.
2. Investigations bytheAuthorized Body ondumping, injury andconnections therewith canresult
in:
- termination ofinvestigation without measures undertaken;
- price undertakings;
- imposition ofanti-dumping duties.
Article 45.Reasons forTermination oftheAnti-Dumping Investigation without Measures Undertaken
1. Aninvestigation shallbeterminated promptly without measures undertaken assoonasthe
Authorized Body issatisfied that:
(a) there isnotsufficient evidence ofeither dumping orofinjury tojustify proceeding
withthecase.
(b) themargin ofdumping isdeminimis ,orthatthevolume ofdumped imports, actual
orpotential, ortheinjury, isnegligible inaccordance withthisLaw.
Article 46.Price Undertaking
1. Proceeding maybesuspended orterminated without theimposition ofprovisional measures
oranti-dumping duties upon receipt ofsatisfactory voluntary undertakings fromanyexporter torevise
itsprices ortocease exports toKazakstan atdumped prices sotoeliminate theinjurious effect of
thedumping.WT/ACC/KAZ/10
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2. TheAuthorized Body hasnorighttorequire thatpriceincreases under suchundertakings shall
behigher thanthedetermined margin ofdumping. Priceincreases maybelessthanthedumping margin
iftheAuthorized Body determines thatsuchincrease willbesufficient toeliminate theinjury tothe
domestic producers.
3. Price undertakings maybesuggested bytheAuthorized Body, butnoexporter shallbeforced
toenter intosuch anundertaking.
Article 47.Conditions forAcceptance ofPrice Undertaking
1. PriceundertakingsshallbeadoptedbytheAuthorizedBodyonlyafterithasmade,inaccordance
withArticle 39ofthisLaw, preliminary affirmative determination ofdumping andinjury caused by
suchdumping.
2. Undertakings cannot beaccepted iftheAuthorized Body considers theiracceptance impractical
asthenumber ofactual orpotential exporters istoogreat, orforother reasons. TheAuthorized Body
shallinform theexporter ofthese reasons.
Article 48.Control overPrice Undertakings
1. TheAuthorized Body mayrequire anyexporter fromwhom undertakings havebeenaccepted
toprovide periodically information relevant tothefulfilment ofsuchundertakings, andtopermit
verification ofpertinent data.
2. Incaseofviolation ofundertakings bythesupplier, theAuthorized Body maytakeimmediate
application ofprovisional measures without notification.
Article 49.Mechanism ofUndertakings
1. TheAuthorized Body hastherighttoterminate investigation incases where anexporter fairly
implements hisundertakings.
2. TheAuthorized Body mayproceed withaninvestigation upon theacceptance ofaprice
undertaking inorder todetermine thedumping andinjury onitsowninitiative orondemand ofan
involved exporter.
3. Aprice undertaking shallberemoved bytheAuthorized Body incasenodumping orinjury
hasbeenfound, withexception ofcases when suchlackofdumping orinjury isaresult oftheprice
undertaking.
4. Price undertakings shallbeeffective untiltheelimination ofinjury ofdumping.
Article 50.Public Notice oftheAcceptance ofaPrice Undertaking
1. Assoonasaprice undertaking isadopted, notification shallbesenttoallinterested parties,
providing theprovisions ofArticle 34.
2. Aprice undertaking shallbecome effective seven daysafteritwassenttotherespondent or
transmitted totherepresentatives oftheinterested parties.WT/ACC/KAZ/10
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Article 51.Assessment ofanti-dumping duties
1. Theamount oftheanti-dumping dutyshallbesufficient fortheelimination oftheharmful
consequence ofdumping. Theamount ofanti-dumping dutyshallnotexceed themargin ofdumping.
2. Incasetheamount paidinrespect ofprovisional measures imposition ishigher thanthemargin
ofdumping, thesupplier hasarightforrefund. TheAuthorized Body shallmake adecision onrefund
oftheamount paidinexcess ofthemargin ofdumping uponrequest fromthesupplier, dulysupported
byevidence. Adecision onrefund ofanysuchdutypaidinexcess oftheactual margin ofdumping
shallnormally bemade within 12months, andinexceptional cases 18months. After thedecision is
made theamount paidinexcess shallberefunded within 90days
Article 52.Introduction ofAnti-Dumping Duties
1. Decisiononintroductionofanti-dumpingdutiesandratethereofshallbeadoptedbytheRepublic
ofKazakstan Government upon theproposal oftheAuthorized Body andshallbeapplicable atthe
dateofitspublication atleastintwomass media editions ofRepublican circulation. Thenotice shall
contain therelevant information described inArticle 41ofthisLaw, aswellasthereasons forthe
acceptance orrejection ofarguments orclaims made bythesuppliers.
2. IntheResolution oftheRepublic ofKazakstan Government onimposition ofanti-dumping
duties thesupplier orsuppliers ofthedumped product shallbenamed.
Ifseveral suppliers from thesame country areinvolved, anditisimpracticable toname all
these suppliers, theAuthorized Body maydecide toname thesupplying country concerned.
Ifseveral suppliers frommore thanonecountry areinvolved, theAuthorized Body mayname
either allthesuppliers involved, ifthisisimpracticable, allthesupplying countries involved.
3. Onthebasis oftheResolution oftheRepublic ofKazakstan Government onimposition of
anti-dumping duties, theCustoms Authorities oftheRepublic ofKazakstan shallcollect them onall
imports inrespect ofwhich aninvestigation hasbeenheld, except astothesuppliers fromwhich price
undertakings havebeenaccepted.
Article 53.Investigation inRespect ofThird Parties
1. Investigation inrespect ofexporter notrelated toproducer orother exporter oftheproduct
concerned, whostarted exportation afterthecompletion oftheinvestigation shallbeinitiated within
30daysupon receipt ofanapplication andcompleted nolaterthan12months afterthereceipt ofthe
application.
2. During theinvestigation, anti-dumping duties shallnotbeapplied, butprovisional measures
canbeauthorized bytheAuthorized Body.
Article 53.Time-Frames Determined intheLaw
1. Noduties shallbelevied retroactively onproducts entered forconsumption prior tothedate
ofinitiation oftheinvestigation
2. Anti-dumping duties andprovisional measures shallbeapplied totheproducts entered for
consumption afterpublication andeffectiveness ofrelevant decisions, withexception ofcases stipulated
initems (iii)and(iv)ofthisArticle.WT/ACC/KAZ/10
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3. Anti-dumping duties canbeimposed fromthedateofintroduction oftheprovisional measures
onlyincases thatmeasures havebeenapplied totheconcerned product andtheAuthorized Body have
made preliminary affirmative determination ofaninjury orathreat ofinjury tothedomestic producers.
4. Ananti-dumping dutymaybelevied onproducts which wereentered forconsumption notmore
than90daysprior tothedateofapplication ofprovisional measures, when theAuthorized Body
determines forthedumped product inquestion that:
(a) there isahistory ofdumping which caused injury;
(b) theinjury, caused bymassive dumped imports ofaproduct inarelatively short time
islikely toseriously undermine theremedial effect ofthedefinitive anti-dumping duty
tobeapplied.
Incase, there isanevidence onfacts, mentioned initems (a)and(b)ofItem4ofthisArticle,
theAuthorized Body shallterminate theinvestigation andmake affirmative final determination on
introduction ofanti-dumping duties.
Article 55.Sunset Review
Anti-dumping duties shallbeeffective notmore thanfiveyears from itsimposition orlast
reconsideration. Reconsideration ofanti-dumping dutyshallbeprovided bytheAuthorized Body on
itsowninitiative oruponadulysubstantiated request made byoronbehalf ofthedomestic producers,
within 45daysfromthenotice ofitsimpending termination. IftheAuthorized Body determines that
theexpiry ofthedutywould belikely toleadtocontinuation orrecurrence ofdumping andinjury,
theAuthorizedBodyshallappealbeforetheRepublicofKazakstanGovernmenttoprolongtheapplication
oftheanti-dumping duty.
CHAPTER 8.FINAL PROVISIONS
Article 56.Conditions andProcedures fortheCancellation ofProvisional Measures
1. Ifthedefinitive anti-dumping dutyishigher thantheprovisional dutypayable, thedifference
shallnotbecollected. Ifthedefinitive dutyislower thantheprovisional dutypayable, thedifference
shallbereimbursed orthedutyrecalculated, asthecasemaybe.
2. Upon thedetermination ofathreat ofinjury ananti-dumping dutymaybeimposed bythe
Authorized Body onlyfrom thedateofthedetermination ofthreat ofinjury ormaterial retardation
andanycashdeposit made during theperiod oftheapplication ofprovisional measures shallberefunded
andanybonds released.
3. Where afinaldetermination ondumping andinjury isnegative, allprovisional measures shall
beterminated within 10days, anyamounts collected shallbereimbursed within 30daysinaccordance
withtheestablished procedure.
Article 57.Termination orReview ofMeasures
TheAuthorized Body mayanytimeonitsowninitiative oruponrequest frominterested party,
ifthere areevidence thatproduct recognized earlier hasbeendumped isimported attheprice equal
orclose toitsnormal value which reduces theinjury anddumping, examine whether thecontinued
imposition ofthedutyisnecessary orcanberevised.WT/ACC/KAZ/10
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Ifasaresult ofthereview itappears thattheanti-dumping dutyisnolonger warranted, it
shallbeterminated ortheamount revised.
Article 58.Appellation Procedure
Decisions made bytheAuthorized Body inaccordance withthisLawcanbeappealed by
interested parties, under theprocedure stipulated bytheRepublic ofKazakstan legislation.
Article 59.Coming intoForce
Current Lawshallcome intoforce afterthemoment ofitssigning.
President oftheRepublic ofKazakstan
Almaty _____________ 1997. N.Nazarbaev.WT/ACC/KAZ/10
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PROTOCOL ONWITHDRAWALS FROM FREE TRADE REGIME TOTHE AGREEMENT
ONFREE TRADE BETWEEN THE GOVERNMENT OFKAZAKSTAN
AND THE GOVERNMENT OFTHE KYRGYZ REPUBLIC,
Asof22June1995
AuthorizedrepresentativesoftheRepublicofKazakstanandtheKyrgyzRepublichaveconcluded
thisProtocol upon thefollowing:
Article 1
Withdrawals stipulated byArticle 1oftheAgreement between theGovernment oftheKazakstan
andGovernment oftheKyrgyz Republic onFreeTrade asof22June, 1995 shallapply to:
1. GoodsfallenundertheeffectofthelegislationoftheRepublicofKazakstanongoodsexportation
andimportation procedure, which functions atthemoment ofcustoms clearance ofthegoods, in
particular to:
- goods exportation ofwhich iscarried outonthebasis ofregistration ofcontracts;
- goods exportation andimportation ofwhich arecarried outaccording tolicences on
thebasis oftheGovernment ’spermission oftheRepublic ofKazakstan;
- strategically important resources;
- goods importation ofwhich iscarried outaccording tolicences.
2. Goods fallen under theeffect oftheKyrgyz legislation onexport tariff, andlegislation on
licensing andquoting ofexportation ofgoods (works, services) which isinforce atthemoment of
goods customs clearance when thegoods areexported from theKyrgyz Republic totheRepublic of
Kazakstan.
Article 2
1. Withdrawals fromtheFree-Trade Regime incompliance withArticle 1hereof apply togoods
fallen under theeffect oftheKazakstan ’slegislation onexport tariff. Theparties shallalsogrant MFN
treatment ifitconcerns:
- taxes andlevies charged inexportation including themethods forcharging suchtaxes
andlevies;
- provisions relating tocustoms clearance oftransit, transportation, warehousing,
transshipping andother similar services;
- methods forpayment andtransfer ofpayments;
- granting export licences andcertificates;
- rulesconcerning selling, purchasing, transporting, distributing andusing goods inthe
domestic market.WT/ACC/KAZ/10
Page80
2. Theprovisions ofparagraph 1ofthisArticle shallnotbeapplied to:
- privileges granted byeither party tothird countries withthepurpose ofcreating a
customs union orfree-trade zone, orasaresult ofcreating suchaunion orzone;
- privileges granted todeveloping countries incompliance withthelegislation ofthe
parties;
- privileges granted toneighbouring countries withaviewtofacilitate boundary trade;
- privileges granted bytheparties toeachother incompliance withspecial agreements.
Article 3
1. ThisProtocol shallbeanintegral partoftheAgreement between theGovernment oftheKyrgyz
Republic andGovernment oftheRepublic ofKazakstan onFreeTrade asof22June1995 andcome
intoforce simultaneously withthementioned Agreement.
2. Thisprotocol shallbevalid fortheperiod untilanewprotocol issigned which isstipulated
byArticle 1oftheAgreement onFreeTrade between theGovernment oftheRepublic ofKazakstan
andtheGovernment ofKyrgyz Republic, asof22June1995.
Done inBishkek cityon22June1995 intwooriginals. Each isinKyrgyz, Kazak, andRussian.
FortheGovernment FortheGovernment
oftheRepublic ofKazakstan oftheKyrgyz RepublicWT/ACC/KAZ/10
Page81
PROTOCOL ONWITHDRAWALS FROM FREE TRADE REGIME TOTHE AGREEMENT
ONFREE TRADE BETWEEN THE GOVERNMENT OFKAZAKSTAN AND
THE GOVERNMENT OFTHE MOLDOVA REPUBLIC,
asof26May1995
Authorized representatives oftheRepublic ofKazakstan andtheMoldova Republic have
concluded thisProtocol upon thefollowing:
Article 1
Withdrawals stipulated byArticle 1oftheAgreement between theGovernment oftheKazakstan
andGovernment oftheMoldova Republic onFreeTrade asof22June1995 shallapply to:
1. GoodsfallenundertheeffectofthelegislationoftheRepublicofKazakstanongoodsexportation
andimportation procedure, which functions atthemoment ofcustoms clearance ofthegoods, in
particular to:
- goods exportation ofwhich iscarried outonthebasis ofregistration ofcontracts;
- goods exportation ofwhich arecarried outaccording tolicences onthebasis ofthe
Government ’spermission oftheRepublic ofKazakstan;
- strategically important resources;
2. Goods fallen under theeffect oftheMoldova legislation onexport tariff, andlegislation on
licensing andquoting ofexportation ofgoods (works, services) which isinforce atthemoment of
goods customs clearance when thegoods areexported fromtheRepublic ofMoldova totheRepublic
ofKazakstan.
Article 2
1. Withdrawals fromtheFreeTrade Regime incompliance withArticle 1hereof apply togoods
fallen under theeffect oftheKazakstan ’slegislation onexport tariff. TheParties shallalsogrant the
MFN treatment ifitconcerns:
- taxes andlevies charged inexportation including themethods forcharging suchtaxes
andlevies;
- provisions relating tocustoms clearance oftransit, transportation, warehousing,
transshipping andother similar services;
- methods forpayment andtransfer ofpayments;
- issuing export licences;
- rulesconcerning selling, purchasing, transporting, distributing andusing goods inthe
domestic market.
2. Theprovisions ofparagraph 1ofthisArticle shallnotbeapplied to:WT/ACC/KAZ/10
Page82
- privileges granted byeither Party tothird countries withthepurpose ofcreating a
customs union orfreetrade zone, orasaresult ofcreating suchaunion orzone;
- privileges granted todeveloping countries incompliance withthelegislation ofthe
parties;
- privileges granted toneighbouring countries withaviewtofacilitate boundary trade
- privileges granted bytheParties toeachother incompliance withspecial agreements.
Article 3
TheParties agreed tocarry outthere-export ofproducts tothirdcountries thewithdrawals
from theFreeTrade Regime towhich areapplied according toArticle 1ofthisProtocol onlyupon
written agreement andinaccordance totheterms arestipulated byAuthorized Bodies ofGovernment ’s
ofthecountry oforigin. There-export ofproducts, which arementioned inattachments shallbecarry
outonpermission oftheauthorized bodies oftheRepublic ofKazakstan andRepublic ofMoldova
.
Article 4
1. ThisProtocol shallbeanintegral partoftheAgreement between theGovernment oftheKyrgyz
Republic andGovernment oftheRepublic ofKazakstan onFreeTrade asof22June1995 andcome
intoforce simultaneously withthementioned Agreement.
2. Thisprotocol shallbevalid fortheperiod untilanewprotocol issigned which isstipulated
byArticle 1oftheAgreement onFreeTrade between theGovernment oftheRepublic ofKazakstan
andtheGovernment ofMoldova Republic, asof22June1995.
Done inMinsk on26May1995 intwooriginals. Each isinMoldova, Kazak, andRussian.
FortheGovernment FortheGovernment
oftheRepublic ofKazakstan oftheMoldova RepublicWT/ACC/KAZ/10
Page83
PROTOCOL ONWITHDRAWALS FROM THE FREE-TRADE REGIME TOTHE
AGREEMENT ONFREE TRADE BETWEEN THE GOVERNMENT OFKAZAKSTAN,
AND THE GOVERNMENT OFTHE TADJIK REPUBLIC
asof22November 1995
Authorized representatives oftheRepublic ofKazakstan andtheTadjik Republic haveconcluded
thisProtocol upon thefollowing:
Article 1
Withdrawals stipulated byArticle 1oftheAgreement between theGovernment oftheKazakstan
andGovernment oftheTadjik Republic onFreeTrade asof22November 1995 shallapply to:
1. Goods fallen under theeffect ofthelegislation oftheRepublic ofKazakstan onexport tariff,
ongoods exportation andimportation procedure, which functions atthemoment ofcustoms clearance
ofthegoods, inparticular to:
Thequestions fortheexport customs levies forgrain theparties willconsider infuture.
2. GoodsfallenundertheeffectoftheTadjiklegislationonexporttariff,andlegislationonlicensing
andquoting ofexportation ofgoods (works, services) which isinforceatthemoment ofgoods customs
clearance when thegoods areexported from theTadjik Republic totheRepublic ofKazakstan.
Article 2
1. Withdrawals fromtheFree-Trade Regime incompliance withArticle 1hereof apply togoods
fallen under theeffect oftheKazakstan ’slegislation onexport tariff. TheParties shallalsogrant MFN
treatment ifitconcerns:
- taxes andlevies charged inexportation including themethods forcharging suchtaxes
andlevies;
- provisions relating tocustoms clearance oftransit, transportation, warehousing,
transshipping andother similar services;
- methods forpayment andtransfer ofpayments;
- granting export licenses andcertificates;
- rulesconcerning selling, purchasing, transporting, distributing andusing goods inthe
domestic market.
2. Theprovisions ofparagraph 1ofthisArticle shallnotbeapplied to:
- privileges granted byeither party tothird countries withthepurpose ofcreating a
customs union orfree-trade zone, orasaresult ofcreating suchaunion orzone;
- privileges granted todeveloping countries incompliance withthelegislation ofthe
parties;WT/ACC/KAZ/10
Page84
- privileges granted toneighbouring countries withaviewtofacilitate boundary trade
- privileges granted bytheparties toeachother incompliance withspecial agreements.
Article 3
1. Thisprotocol shallbeanintegral partoftheAgreement between theGovernment oftheTadjik
Republic andGovernment oftheRepublic ofKazakstan onFreeTrade asof22November 1995 and
come intoforce simultaneously withthementioned Agreement.
2. Thisprotocol shallbevalid fortheperiod untilanewprotocol issigned which isstipulated
byArticle 1oftheAgreement onFreeTrade between theGovernment oftheRepublic ofKazakstan
andtheGovernment ofTadjik Republic, asof22November 1995.
Done inAlmaty cityon22November 1995 intwooriginals. Each isinTadjik, Kazak, andRussian.
FortheGovernment FortheGovernment
oftheRepublic ofKazakstan oftheTadjik RepublicWT/ACC/KAZ/10
Page85
RESOLUTION OFTHE GOVERNMENT OFTHE REPUBLIC OFKAZAKSTAN
of14February 1997 No.217
On"Measures onMaking Order inProduction, Import andTrade ofEthyl Spirit
andAlcohol Products intheRepublic ofKazakstan"
TheGovernment oftheRepublic ofKazakstan RESOLVES:
1. TheMinistry ofEconomy andtheMinistry ofJustice oftheRepublic ofKazakstan shallin
aonemonth period prepare andsubmit totheGovernment thedraft ofthelawon"introduction
amendments andadditions totheDecree ofthePresident oftheRepublic ofKazakstan having force
oflawOnlicensing ’"envisaging theintroduction oflicensing ofwholesale andretail trade ofethyl
spirit andalcohol products.
2. ToaddtotheListoftheCommodities import ofwhich iscarried outbylicences approved
bytheResolution oftheGovernment of12March 1996, No.298on"Order ofexport andimport of
goods (works, services) intheRepublic ofKazakstan withthelineofthefollowing context:
Allkinds ofspirits,
fortified drinks,
fortified juices and
balsams, vodka,
liqueur-vodka items,
cognacs.2207, 2208, 2905 Ministry ofEconomy
3. Gosstandard oftheRepublic ofKazakstan shallinclude compulsory declaration ofthevolumes
ofproduction ofethylspirits andalcohol products intotheorder andterms oflicensing ofproduction
ofalcohol products.
4. TheMinistry ofEconomy, theMinistry ofFinance, theState TaxCommittee, theMinistry
ofIndustry andTrade, theMinistry ofInternal Affairs andtheStateAnti-Monopoly Committee shall
prepare andsubmit totheGovernment forapproval theorder ofinteraction ofthebodies ensuring
control overproduction andturnover ofalcohol products andstoppage ofviolation inthisfieldup
to1March 1997.
5. TheStateCustoms Committee oftheRepublic ofKazakstan onagreeing uponwiththeMinistry
ofFinance andMinistry ofEconomy shalldevelop andintroduce from1March theorder ofissuance
ofpermissions fortransit ofallkinds ofspirits andalcohol products ensured putting ofexcise, customs
payments andtaxes ondeposit.
6. TheMinistry oftheEconomy, theMinistry ofJustice andtheMinistry ofIndustry andTrade
withattraction ofproducers ofspirits andalcohol products shallinaonemonth period prepare and
submit theGovernment oftheRepublic ofKazakstan proposals concerning expediency ofapproval
ofthelawoftheRepublic ofKazakstan on"State regulation ofproduction andturnover ofspirits and
alcohol products".
7. TheMinistry ofJustice oftheRepublic ofKazakstan shallprepare andsubmit totheGovernment
inestablished order upto1April 1997 thedraftofthelawoftheRepublic ofKazakstan envisaging
theincreaseofadministrativeandcriminalresponsibilityforviolationoforderofproductionandturnover
ofethyl spirit andalcohol products.WT/ACC/KAZ/10
Page86
8. TheMinistry ofEconomy oftheRepublic ofKazakstan together withconcerned ministries
andinstitutions shallcarry outinApril ananalysis oftheproduction andturnover ofethyl spirit and
alcohol products oftheresults of1996 andthefirstquarter of1997 andbasing ontheresults ofthis
analysis tosubmit theirproposal totheGovernment oftheRepublic ofKazakstan.
9. Vice-Premier Pavlov shall beresponsible forcontrol overimplementation ofthepresent
resolution.
Prime-Minister
KazhegeldinWT/ACC/KAZ/10
Page87
RESOLUTION OFTHE GOVERNMENT OFTHE REPUBLIC OFTHE GOVERNMENT
OFTHE REPUBLIC OFKAZAKSTAN
No.907of30May1997
On"Excise Rates forImported Excisable Goods andtheNorms ofImportation ofExcisable
Goods which ArenotSubject toExcise Duty through theCustoms Border
oftheRepublic ofKazakstan byNatural Persons"
Inthepurposes oftheimplementation ofanintergovernmental Agreement ofCIS
country-members onUnified Commodity nomenclature offoreign economic activity ofCISandto
bring thecodes anddescription ofthegoods intolinewithitsnewwording theGovernment ofthe
Republic ofKazakstan RESOLVES:
1. Toestablish ratesofexcise duties forexcisable goods imported intotheterritory oftheRepublic
ofKazakstan according toAnnex 1.
2. These ratesshallbeapplied alsointhecases ofsaleofexcisable imported goods ifexcise duties
forthese goods havenotbeenpaidintheterritory oftheRepublic ofKazakstan.
3. Toapprove form1June1997thenorms ofimportation ofexcisable goods which arenotsubject
toexcise duties payment through thecustom border oftheRepublic ofKazakstan according toAnnex 2.
4. Torecognize aslosing theirforce from 1June1997 thefollowing documents:
- Resolution oftheGovernment oftheRepublic ofKazakstan No. 1748 of
31December 1996 on"Excise ratesforimported excisable goods andthenorms of
importation ofexcisable goods which arenotsubject toexcise dutythrough thecustoms
border oftheRepublic ofKazakstan bynatural persons";
- Thelastparagraph oftheResolution oftheGovernment oftheRepublic ofKazakstan
No.41of10January 1997 on"Introduction ofadditions intosome decisions ofthe
Government";
- Resolution oftheGovernment oftheRepublic ofKazakstan No.553of14April 1997
on"Introduction
ofamendments intotheResolution oftheGovernment oftheRepublic ofKazakstan No.1748 of
31December 1996".
ThisResolution shallbepublished.
Prime-Minister oftheRepublic ofKazakstan
A.KazhegeldinWT/ACC/KAZ/10
Page88
Annex 1
TOTHE RESOLUTION OFTHE GOVERNMENT OFTHE REPUBLIC OFKAZAKSTAN
of30May1997 No.907
EXCISE TAXES FOR THE EXCISABLE GOODS IMPORTED TOTHE CUSTOMS
TERRITORY OFTHE REPUBLIC OFKAZAKSTAN
Tariff itemnumber Description ofproductsExcise ratein%to
custom value orin
ECU perunit
ex.0301, 0302, 0303,
0304, 0305, 1604**Sturgeon, Salmon, Caviar ofSturgeon, Salmon, delicacy
ofSturgeon, Salmon andCaviar100
2203 00 Beer 0.2ECU/litre
ex.2204
(except 2204 30)Wine, champagne typewine 0.8ECU/litre
2205, 2206 00**Other wine offresh grapes flavoured with plants or
aromatic substance0.8ECU/litre
ex.2207, 2208**Allkindofspirits (except imported forthemanufacture
ofliquor-vodka items, strong beverages, strong juices,
wine, balzam, iftheimporter/producer hasalicence of
theRepublic ofKazakstan fortheright toproduce such
items)3.5ECU/litre
Strong beverages, strong juices andbalzam, vodka,
liquor-vodka items, brandy3.0ECU/litre
2402**Tobacco ortobacco substitutes 2.0ECU/1,000
pieces
ex.2709 00**Crude oil 7.0ECU/ton
ex.2710 00260**Gasoline (excluding aviation) 31.0 ECU/ton
ex.2710 00610, 2710
00650,
2710 00690**Diesel fuel 6.0ECU/ton
4203 Clothes from natural fur 50
ex.4301, 4302, 4303,
6506 92000**Tanned ordressed furskins (except furskins ofmole,
rabbit, dogs, deer, sheepskin) items ofnatural fur
including coat, short coat, suit,jacket, hatandcollar, fur
tipped, boa, scarf, furcoat, (except furskins ofmole,
rabbit, dogs, deer, sheepskin)50
ex.7013 21,
7013 31,7013 91,
9405 10500**Lead crystal items, crystal lighting device 50
ex.7113 21,
7102 39000,
7114, 7116**Jewellers 'items ofgold, silver, platinum 40
ex.8703 21 Motor cars, with spark-ignition internal combustion
reciprocating piston engine: ofacylinder capacity not
exceeding 1,000 cc.10%, butnotless
than
0.1ECU/cm.3of
engine capacityWT/ACC/KAZ/10
Page89
Tariff itemnumber Description ofproductsExcise ratein%to
custom value orin
ECU perunit
ex.8703 21900 Motor cars, with spark-ignition internal combustion
reciprocating piston engine: ofacylinder capacity
exceeding 1,000 cc.,used****20%, butnotless
than
0.15 ECU/cm. of
engine capacity
ex.8703 21900 Motor cars, with spark-ignition internal combustion
reciprocating piston engine: ofacylinder capacity
exceeding 1,000 cc.,used*****30%, butnotless
than
0.375 ECU/cm.3
ofengine capacity
ex.8703 22190 Motor cars, with spark-ignition internal combustion
reciprocating piston engine: ofacylinder capacity
exceeding 1,000 cc.butnotexceeding 1,500 cc..*****10%, butnotless
than
0.115 ECU/cm.3
ofengine capacity
ex.8703 22900 Motor cars, with spark-ignition internal combustion
reciprocating piston engine: ofacylinder capacity
exceeding 1,000 cc.butnotexceeding 1,500 cc.****20%, butnotless
than
0.3ECU/cm.3of
engine capacity
ex.8703 22900 Motor cars, with spark-ignition internal combustion
reciprocating piston engine: ofacylinder capacity
exceeding 1,000 cc.butnotexceeding 1,500 cc.,
used*****30%, butnotless
than
0.425 ECU/cm.3
ofengine capacity
ex.8703 23190 Motor cars, with spark-ignition internal combustion
reciprocating piston engine: ofacylinder capacity
exceeding 1,500 cc.butnotexceeding 1,800 cc.***15%, butnotless
than0.2
ECU/cm.3of
engine capacity
ex.8703 23900 Motor cars, with spark-ignition internal combustion
reciprocating piston engine: ofacylinder capacity
exceeding 1,500 cc.butnotexceeding 1,800 cc.****20%, butnotless
than
0.3ECU/cm.3of
engine capacity
ex.8703 23900 Motor cars, with spark-ignition internal combustion
reciprocating piston engine: ofacylinder capacity
exceeding 1,500 cc.butnotexceeding 1,800 cc.used*****30%, butnotless
than
0.425 ECU/cm.3
ofengine capacity
ex.8703 23190 Motor cars, with spark-ignition internal combustion
reciprocating piston engine: ofacylinder capacity
exceeding 1,800 cc.butnotexceeding 3,000 cc.***20%, butnotless
than0.35
ECU/cm.3of
engine capacity
ex.8703 23900 Motor cars, with spark-ignition internal combustion
reciprocating piston engine: ofacylinder capacity
exceeding 1,500 cc.butnotexceeding 1,800 cc.****30%, butnotless
than
0.53 ECU/cm.3of
engine capacity
ex.8703 23900 Motor cars, with spark-ignition internal combustion
reciprocating piston engine: ofacylinder capacity
exceeding 1,800 cc.butnotexceeding 3,000 cc.*****40%, butnotless
than
1.3ECU/cm.3of
engine capacityWT/ACC/KAZ/10
Page90
Tariff itemnumber Description ofproductsExcise ratein%to
custom value orin
ECU perunit
ex.8703 24100 Motor cars, with spark-ignition internal combustion
reciprocating piston engine: ofacylinder capacity
exceeding 3,000 cc.,used****25% butnotless
than0.7
ECU/cm.3of
engine capacity
ex.8703 24900 Motor cars, with spark-ignition internal combustion
reciprocating piston engine: ofacylinder capacity
exceeding 3,000 cc.,used*****30%, butnotless
than
1.05 ECU/cm.3of
engine capacity
ex.8703 24900 Motor cars, with spark-ignition internal combustion
reciprocating piston engine: ofacylinder capacity
exceeding 3,000 cc.,used*****40%, butnotless
than
2.0ECU/cm.3of
engine capacity
ex.8703 31100 Motor cars, with compression-ignition internal
combustion (diesel orsemi-diesel): ofacylinder capacity
butnotexceeding 1,500 cc.,***10%, butnotless
than
0.115 ECU/cm.3
ofengine capacity
ex.8703 31900 Motor cars, with compression-ignition internal
combustion (diesel orsemi-diesel): ofacylinder capacity
butnotexceeding 1,500 cc.,used****20%, butnotless
than
0.17 ECU/cm.3of
engine capacity
ex.8703 31900 Motor cars, with compression-ignition internal
combustion (diesel orsemi-diesel): ofacylinder capacity
butnotexceeding 1,500 cc.,used*****30%, butnotless
than
0.675 ECU/cm.3
ofengine capacity
ex.8703 32190 Motor cars, with compression-ignition internal
combustion (diesel orsemi-diesel): ofacylinder capacity
exceeding 1,800 cc.butnotexceeding 2,500 cc.;***15%, butnotless
than
0.2ECU/cm.3of
engine capacity
ex.8703 32900 Motor cars, with compression-ignition internal
combustion (diesel orsemi-diesel): ofacylinder capacity
exceeding 1,800 cc.butnotexceeding 2,500 cc.;
used****20%, butnotless
than
0.3ECU/cm.3of
engine capacity
ex.8703 32900 Motor cars, with compression-ignition internal
combustion (diesel orsemi-diesel): ofacylinder capacity
exceeding 1,800 cc.butnotexceeding 2,500 cc.;
used*****25%, butnotless
than
0.675 ECU/cm.3
ofengine capacity
ex.8703 33190 Motor cars, with compression-ignition internal
combustion (diesel orsemi-diesel): ofacylinder capacity
exceeding 2,500 cc.***25%, butnotless
than
0.7ECU/cm.3of
engine capacity
ex.8703 33900 Motor cars, with compression-ignition internal
combustion (diesel orsemi-diesel): ofacylinder capacity
exceeding 2,500 cc.,used****35%, butnotless
than
1.05 ECU/cm.3of
engine capacityWT/ACC/KAZ/10
Page91
Tariff itemnumber Description ofproductsExcise ratein%to
custom value orin
ECU perunit
ex.8703 33900 Motor cars, with compression-ignition internal
combustion (diesel orsemi-diesel): ofacylinder capacity
exceeding 2,500 cc.,used*****40%, butnotless
than
2.0ECU/cm.3of
engine capacity
ex.8704 21 Motor vehicles forthetransport ofgoods, with
compression-ignition internal combustion with carrying
capacity notexceeding 1.25 ton15
ex.8704 21390, 8704
21990Motor vehicles forthetransport ofgoods, with
compression-ignition internal combustion (diesel or
semi-diesel) with carrying capacity not exceeding
1.25 ton; used*****30
ex.8704 31 Motor vehicles forthetransport ofgoods, with
spark-ignition internal combustion (diesel orsemi-diesel)
withcarrying capacity notexceeding 1.25 ton15
ex.8704 31 Motor vehicles forthetransport ofgoods, with
spark-ignition internal combustion (diesel orsemi-diesel)
withcarrying capacity notexceeding 1.25 ton,used*****30
ex.9303, 9304,
9305**Firearms andgasarms (except purchased fortheneeds
fortheState bodies)40
* ECU isrecalculated inTenge onthebaseoftherateoftheNational Bank oftheRepublic ofKazakstan
onthedaydetermined bytheCustoms Legislation forthecustom duties payment.
** Commodity ’sNomenclature determined bytheCode ofHSaswellasbythedescription oftheproduct.
*** Motor cars lessthan5-years old,regardless ofdistance covered.
**** Motor carsmore than5-years old,butlessthan10years old,regardless ofdistance covered.
***** Motor cars more than10years old,regardless distance covered.
Notes:
Excise duties areapplicable totheexcisable goods (codes 220300, 2204(except 220430), 2205, 2206
00,2207, 2208, 2402) where thecountry oforigin isthecountry-member ofCISandwhich areimported
fromthesecountries, regardless ofthedateofconclusion ofcontract andthefactofpayments according
towhich thementioned goods areimported tothecustoms territory oftheRepublic ofKazakstan.WT/ACC/KAZ/10
Page92
Annex 2
TOTHE RESOLUTION OFTHE GOVERNMENT OFTHE REPUBLIC OFKAZAKSTAN
30ofMay1997 No.907
THE NUMBER OFUNITS OFEXCISED GOODS ALLOWED TOBEING TAKEN
BYONE NATURAL PERSON THOUGH THE CUSTOMS BOUNDARY
OFTHE REPUBLIC OFKAZAKSTAN
Code ofCNFEA Description ofproductThenumber of
units allowed to
being taken by
oneperson
ex.0301, 0302,
0303, 0304, 0305,
1604**Sturgeon, Salmon, Caviar ofSturgeon, Salmon, delicacy of
Sturgeon, Salmon andCaviar1kg.
2203 00 Beer 5litres
ex.2204
(except 2204 30)Wine, Champagne-type wine 2litres
2205, 2206 00**Other wine offresh grapes flavoured withplants oraromatic
substance2litres
Ex.2207, 2208**Allkindofspirits (except imported forthemanufacture of
liquor-vodka items, strong beverages, strong juices, wine,
balzam, iftheimporter/producer hasalicense oftheRepublic
ofKazakstan fortheright toproduce such items)2litres
Strong beverages, strong juices andbalzam, vodka,
liquor-vodka items, brandy2litres
2402**Tobacco ortobacco substitutes 1,000 pieces
ex.2710 00260**Gasoline (excluding aviation) 100litres
Ex.2710 00610,
2710 00650,
2710 00690**Diesel fuel 150litres
4203 Clothes from thenatural fur 2units
ex.4301, 4302,
4303,
6506 92000**Tanned ordressed furskins (except furskins ofmole, rabbit,
dogs, deer, sheepskin) items ofnatural furincluding coat, short
coat, suit,jacket, hatandcollar, furtipped, boa,scarf, fur
coat, (except furskins ofmole, rabbit, dogs, deer, sheepskin)3units
ex.7013 21,
7013 31,
7013 91,
9405 10500**Lead crystal items, crystal lighting device 1sets
ex.7113 21,
7102 39000,
7114, 7116**Jewellers 'items ofgold, silver, platinum 2units
** Thisnorm issetupontheoverall volume ofimported goods, without subdivision bythecodes of
commodity nomenclature offoreign economic activity. Listofimported goods notsubject toexcise
taxwithin thelimits ofthenorm (allowed quantity) ofimportation shall bedetermined bythechoice
oftaxpayer.
Commodity nomenclature shallbedetermined bythecodeofCNFEAaswellasdescription ofproduct.WT/ACC/KAZ/10
Page93
OnApproval oftheOrder ofProvision ofOfficial Transfers (Subventions) toOblast Budgets
RESOLUTION
OftheGovernment oftheRepublic ofKazakstan
of22April 1997 No.619
Inpursuance ofitem3oftheResolution oftheGovernment oftheRepublic ofKazakstan of
31December 1996No.1737on"Implementation oftheLawoftheRepublic ofKazakstan onRepublic
budget for1997’"theGovernment oftheRepublic ofKazakstan RESOLVES:
1. Toapprove theattached Order ofprovision ofofficial transfers (subventions) tooblast budgets.
2. Tosetuptheindicated Order which shallbeextended overtheoblasts having special economic
zones intheirterritories.
Prime-Minister oftheRepublic ofKazakstan
A.Kazhegeldin
Approved bytheResolution oftheGovernment oftheRepublic ofKazakstan
of22April 1997 No.619.WT/ACC/KAZ/10
Page94
ORDER
OfProvision ofOfficial Transfers
(Subventions) toOblast Budgets
1. Thepresent Order determines nomination ofinternal official transfers (subventions) (hereinafter
referred astransfers) provided fromtherepublic budget tolocalexecutive bodies andalsomechanism
oftheirprovision.
2. Inthepurposes ofinsurance ofminimal guaranteed levelofsocial services intheregions lacking
ofsuchservices duetoobjective reasons, andalsofinancing ofspecial targeted State programmes
fromtherepublic budget afinancing mechanism intheform oftransfers providing balance ofoblast
(cityofrepublic importance) budgets shallbeapplied.
3. Volume oftransfers provided intheformofsubventions fromrepublic budget tolower budgets
shallbedetermined bythelawonrepublic budget forcorresponding financial years andtheirnomination
shallbedetermined bypresent Order.
4. TheMinistry ofFinance oftheRepublic ofKazakstan under preparation ofdescription of
revenues andexpenditures oftherepublic budget shalldistribute transfers bymonths taking intoaccount
theinflation levelanddates ofimplementation oftargeted programmes.
5. TheTreasury under theMinistry ofFinance oftheRepublic ofKazakstan shall according
toapproved description ofrevenues andexpenditures oftherepublic budget shallcarry outtotransfer
transfers tolocalbudgets byinstruction oftheMinistry ofFinance determining theirnomination.
6. Transfersshallbeprovidedtooblastsbudgetsdependingonconditionsofthefollowingindicators:
- implementation oftheplanofState taxes andlevies collection fromthebeginning of
theyear;
- implementation oftheplanoftaxes andlevies collection fixed tolocalbudgets from
thebeginning oftheyear;
- change ofthesumofarrears related toalltaxesandlevies compared toprevious months
andothers.
Thespecific listoftheindicators foreachoblast andmechanism oftheirapplication under
provision oftransfers shallbedetermined bytheMinistry ofFinance onagreeing uponwiththeMinistry
ofEconomy andTrade oftheRepublic ofKazakstan taking intoaccount level ofsocial-economic
development andspecificity oftheregion.
7. Thetransfers shallbesubject tosequestering intheestablished order.
8. TheMinistry ofFinance oftheRepublic ofKazakstan shallcarry outevery quarter analysis
oftargeted usage ofprovided sums oftransfers andunder revealing ofthefactsofnon-targeted usage
ithastherightnottoprovide transfers, torecall them andprohibit theirspending intheamount of
revealed violations.WT/ACC/KAZ/10
Page95
9. TheMinistry ofFinance oftheRepublic ofKazakstan shallsubmit information about volumes
oftransfers provided tooblast budgets totheGovernment every month.
10. Control overtargeted andefficient usage ofthebudget sumsprovided intheformoftransfers to
oblast budgets shallbecarried outbytheCommittee ofFinancial Control oftheMinistry ofFinance
oftheRepublic ofKazakstan.