 
 WORLD TRADE  
ORGANIZATION  RESTRICTED 
WT/ACC/KAZ/50 
3 August 2004 
 (04-3309) 
Working Party on the 
Accession of Kazakhstan Original:   English 
 
 
 
ACCESSION OF KAZAKHSTAN 
 
Submission from the Republic of Kazakhstan 
 
Additional Questions and Replies 
  
 The following submission, dated 25 July 2004, is being circulated at the request of the 
Delegation of the Republic of Kazakhstan. 
 
 
_______________ 
  WT/ACC/KAZ/50 
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 TABLE OF CONTENTS 
 
ECONOMIC POLICIES ............................................................................................................. .......... 1  
- Monetary and Fiscal Policy .................................................................................................... .. 1 
- Foreign Exchange and Payments ............................................................................................ 7  
- Investment Regime.............................................................................................................. .... 13  
-  State Ownership and Privatisation ........................................................................................ 17  
- Pricing Policies .............................................................................................................. .......... 25  
-  Competitio n Policy ............................................................................................................ ...... 30  
FRAMEWORK FOR MAKING AND ENFORCING POLICIES ................................................. 31  
-  Authority of Sub-Central Governments ............................................................................... 34  
POLICIES AFFECTING TRADE IN GOODS ................................................................................ 35  
A. IMPORT REGULATION ...................................................................................................... 35  
- Trading rights (the right to import and export) ................................................................... 35  
- Customs Tariff ................................................................................................................ ........ 38  
- Other duties and charges levied on imports but not on domestic production ................... 38  
-  Tariff rate quotas, tariff exemptions ..................................................................................... 39  
-  Fees and charges for services rendered ................................................................................. 40  
- Application of internal  taxes to imports ............................................................................... 42  
- Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ....................................................................................................................... .............. 46  
-  Customs valuation ............................................................................................................. ...... 51  
-  Other customs formalities ..................................................................................................... . 55 
-  Preshipment inspection ........................................................................................................ .. 56 
-  Anti-dumping, countervailing duti es, and safeguard regimes ............................................ 57  
B. EXPORT REGULATIONS ................................................................................................... 67  
- Customs tariffs, fees and charges for serv ices rendered, application of internal 
taxes to exports .............................................................................................................. .......... 67  
- Export restri ctions ........................................................................................................... ....... 71  
-  Export subsidies .............................................................................................................. ........ 75  
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS ......................... 77  
-  Industrial policy, including subsidies .................................................................................... 77  
-  Technical barriers to trade ................................................................................................... . 81 
-  Sanitary and phytosanitary measures ................................................................................... 82  
-  Trade-related investment measures ...................................................................................... 84  
-  State-tradin g entities ........................................................................................................ ....... 86  
- Free zones, special economic areas ........................................................................................ 86  WT/ACC/KAZ/50 
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 Government procurement ...................................................................................................... 8 9 
-  Transit ....................................................................................................................... ............... 90  
- Agricultural policies.......................................................................................................... ...... 92  
TRADE-RELATED INTELLECTUAL  PROPERTY REGIME .................................................... 94  
- General ....................................................................................................................... .............. 94  
- Industrial property protection ............................................................................................... 94 
- Application of national treatment and MFN treatment to foreign nationals .................... 95  
- Substantive Standards of Protection, Including Procedures for the Acquisition 
and Maintenance of Intellectual Property Rights ................................................................ 96  
- Trademarks, including service marks ................................................................................... 97  
- Geographical Indications, including appellations of origin ................................................ 97  
- Industrial designs ............................................................................................................ ........ 99  
- Patents ....................................................................................................................... ............. 100  
- Requirements on undisclosed information, in cluding trade secrets and test data .......... 101  
- Enforcement ................................................................................................................... ....... 102  
- Civil judicial procedures and remedies ............................................................................... 102  
- Provisional measures .......................................................................................................... .. 104  
- Special border measures .......................................................................................................  105 
- Criminal procedures ........................................................................................................... .. 106  
POLICIES AFFECTING TRADE IN SERVICES ......................................................................... 107  
-  Trade Agreements .............................................................................................................. ... 114  
ANNEX 1 ....................................................................................................................... ..................... 116  
ANNEX 2 ....................................................................................................................... ..................... 118  
ANNEX 3 ....................................................................................................................... ..................... 122  
ANNEX 4 ....................................................................................................................... ..................... 128  
ANNEX 5 ....................................................................................................................... ..................... 130  
ANNEX 6 ....................................................................................................................... ..................... 140  
ANNEX 7 ....................................................................................................................... ..................... 142  
ANNEX 8 ....................................................................................................................... ..................... 143  
 
  WT/ACC/KAZ/50 
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 ECONOMIC POLICIES 
- Monetary and Fiscal Policy Question 1 Paragraph 4: With the possible exception of the la st sentence, the text of this paragraph does 
not address Kazakhstan's monetary policy, but rath er discusses the flexible exchange rate.  This 
implies, rather than states, that this is Kazakhsta n's only tool for control of the money supply.  
Is this true?   
Answer: 
Monetary policy of the Republic of Kazakhstan is pursued by determining the official refinancing 
rate, interest rates and minimum reserve requirements. 
The interest rates used for main monetary policy operations are based on the National Bank's official 
refinancing rate.  At present the refinancing rate represents 7 per cent, slightly exceeding the average 
inflation rate.  The National Bank establishes the interest rates used for main monetary policy 
operations in order to influence the commercial ba nk's interest rates on the financial market.  The 
official REPO rate currently represents 4.5 per cent = 150 points.  The National Bank's "overnight" 
interest rate is 8 per cent.  The minimum reserve re quirement is calculated as a percentage of the total 
amount of liabilities less the liabilities to banks. At the moment, the minimum reserve requirement represents 6 per cent. 
In exceptional cases when it is impossible to slow-dow n inflationary processes by indirect methods of 
monetary regulations, the National Bank has the righ t to introduce direct quantitative restrictions for 
certain operations.  At the same time it should be noted that, since the introduction of the national 
currency in 1993, the National Bank did not practice establishment of maximum interest rates on transactions. Since 1995, no restrictions were used  on the volume of credits.  Since 1998, the National 
Bank did not finance the state budget deficit. 
In order to implement its monetary policy, the National Bank:  (i) provides loans to commercial 
banks; (ii) accepts deposits in na tional and foreign currencies; (iii) undertakes interventions on the 
foreign exchange market; (iv) issues short-term notes;  (v) trades with  government and other securities 
(with the right to repurchase (REPO)); and (vi) co mmercial bills refinancing. The National Bank is 
also entitled to carry out other kinds  of operations in accordance with the decisions of its Board. The 
National Bank has the right to provide commercial ba nks with one-day loans, overnight loans, loans 
provided as a lender of last resort and special loans. 
Question 2 If, as is likely, Kazakhstan has a monetary po licy beyond maintenance of a flexible exchange 
rate, this section should be substantially elaborated to describe it, listing relevant laws, addressing the current main goals and instrument s of monetary policy, and indicating how 
these policies have contributed, or not, to th e current economic situation. Are there any laws 
related to revenue creation other than the Tax Code of 2001. 
Answer: 
According to the Law of the Republic of Kazakhs tan "On the National Bank of the Republic of 
Kazakhstan" of 30 March 1995 No. 2155, the key ob jective of the monetary policy of the National 
Bank is to ensure and maintain stabilization of prices.  WT/ACC/KAZ/50 
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 In order to accomplish its main objective, the National Bank focuses its activities on the following 
tasks: 
- development and implementation of the national monetary policy,  
- maintenance of the payment system functioning,   
- foreign exchange regulation a nd foreign exchange control, 
- maintenance of the financial system stability.  
The main objective of the National Bank's monetary  policy reflects the announced transition to the 
European Union standards and to the principles of inflation targeting, which requires refocusing the 
National Bank's policy from the exchange rate targeti ng to maintaining the stabilization of prices.  In 
conditions of increased responsibility for target i ndicators of inflation rate, the National Bank will 
develop the inflation guidelines based on the "cor e inflation" index, which will reflect main 
inflationary tendencies.  
Also, it intends to continue development of a tr ansmission mechanism model, which should allow 
assessing core inflation rate changes under the infl uence of the key indicator – REPO rates. This 
model was expected to enforce strict adherence to targeted inflation rates and increase public 
confidence in the state's monetary policy. 
The key goal of the National Bank's monetary polic y for the next three years is to achieve and 
maintain an annual average "core inflation" ra te within the range of 4-6 per cent in 2004 and 
3-5 per cent in 2005-2006.  A lower inflation rate is expected to gradually reduce the National Bank's 
interest rate to 5.5 per cent by 2006.  The reduced  interest rate of the Na tional Bank will have positive 
economic impact taking into account that the calculati on of securities is based on the official interest 
rate. 
In order to facilitate price competitiveness of Ka zakh goods on the world market, the National Bank 
maintains  a free-floating exchange rate of the na tional currency (Tenge - KZT),  which is based on 
the current levels of money demand and supply.  Accordingly, the National Bank does not set any 
exchange rate targets and does not influence the exchange rate, limiting its role in the domestic 
currency market, when necessary, to  prevent the exchange rate fl uctuations caused by speculative 
surges. 
In 2004, in preparation to the transition of its po licy from the exchange rate stabilization to inflation 
targeting, the National Bank continues th e implementation of measures aimed at: 
- strengthening the regulatory role of its official interest rate;  
- expanding mechanisms of liquidity regulation of open market operations, in particular, 
facilitating development of a secondary securities market;  
- increasing securities portfolio of the National Bank.  
The National Bank's efforts to increase its securities portfolio and develop ne w financial instruments 
are expected to enhance the regulatory role of the National Bank and flexibility of the financial 
market.   
The key goal is expected to be focused on the li beralization of the currency regulation and currency 
control system, including elimination of excessive barriers to operations of residents with foreign assets.  For the purposes of tracking and controlling ri sks related to currency operations, the Republic 
of Kazakhstan intended to enhance efficiency of pr udential regulation and risk management tools used 
by banks, pension funds and insurance companies.  In 2004, the new legislation is planned to be 
adopted, which will meet the modern requirements of  the financial market and envisage more active 
participation of Kazakhstan on the international capital markets.   WT/ACC/KAZ/50 
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 In order to strengthen the payments systems, for the next three years, the National Bank plans to 
prioritize the task of harmonization of its payments system with the European Union standards.  The 
special focus is planned to be made on the crea tion of a single national network of payment cards 
services through introduction of the National Inte r-bank System of Payment Cards based on the 
microprocessor technology. 
In order to enhance the financial system stabiliz ation efforts, the following tasks are prioritized: 
(i) further development of financial market segments;  (ii) reinforcement of institutional sustainability 
of financial organizations; (iii) creation of favourable environment for further expansion of banks' 
lending operations to the real sector of economy;  and (iv) strengthening the cumulative pension 
system.  The National Bank plans to coordinate its activities with the Agency of Kazakhstan on 
Regulation and Supervision of Financia l Markets and Financial Organizations. 
Within the framework of Kazakhstan's monetary policy, the functions of the National Bank are 
regulated by the following laws: 
- Law of the Republic of Kazakhstan "On the National Bank of the Republic of 
Kazakhstan"; 
- Presidential Decree "On Approval of the Statut e and Structure of the National Bank of the 
Republic of Kazakhstan" of 31 December 2003 No.1271; 
- Rules for Determination and Application of In terest Rates on Operations of the National 
Bank of the Republic of Kaza khstan approved by the Resolution of the Board of the 
National Bank of the Republic of K azakhstan of 9 April 2004 No.49;  
- Rules for Issuing, Placement, Circulation and Redemption of Short-Term Notes of the 
National Bank of the Republic of Kazakhstan a pproved by the Resolution of the Board of 
the National Bank of the Republic of Kaza khstan of 20 December 2001 No. 554;  
- Rules for REPO and Reverse REPO Operations  by the National Bank of the Republic of 
Kazakhstan with Government Securities of th e Republic of Kazakhstan approved by the 
Resolution of the Board of the National Bank of the Republic of Kazakhstan of 
3 July 1999 No.160; 
- Crediting Rules of the National Bank of the Republic of Kazakhstan approved by the 
Resolution of the Board of the National Bank of the Republic of Kazakhstan of 
13 December 1999 No. 424; 
- Rules of the National Bank of the Repub lic of Kazakhstan on Bank Loans, Loan 
Guarantees and Record-Keeping approved by the Resolution of the Board of the National 
Bank of the Republic of Kazakhstan of  15 November 1999 No. 404;   
- Rules for Calculation of Fees on Credits, Loan s and Deposits of the National Bank of the 
Republic of Kazakhstan, approved by the Reso lution of the Board of the National Bank of 
the Republic of Kazakhstan of 20 September 1999 No. 293; 
- Rules for Restructuring of Debts of Banks  and Other Organizations Payable to the 
National Bank of the Republic of Kazakhstan, approved by the Resolution of the Board of 
the National Bank of the Republic of Kaza khstan of 26 February 2000 No. 59;   
- Rediscounting Rules of the National Bank of the Republic of Kazakhstan, approved by 
the Resolution of the Board of the National Bank of the Republic of Kazakhstan of 
15 November 1999 No.395;  
- Rediscounting Instructions of the National Ba nk of the Republic of Kazakhstan, approved 
by the Resolution of the Board of the Nati onal Bank of the Republic of Kazakhstan of 
21 March 2000 No.111; 
- Rules for Registration of Currency Operations  Related to the Movements of Capital and 
Opening of Foreign Bank Accounts, approved by the Resolution of the Board of the 
National Bank of the Republic of Kaza khstan of 4 July 2003 No. 225; and 
- Investment Strategies for Management of Gold Reserves of the National Bank of the 
Republic of Kazakhstan, approved by the Reso lution of the Board of the National Bank of 
the Republic of Kazakhstan of 1 September 2003 No. 329.   WT/ACC/KAZ/50 
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 The Law of the Republic of Kazakhstan "On B udgetary System" of 1 April 1999 No. 357 regulates 
financial relations established during the process of different level budget forming, defined the 
procedure of the republican budget and local b udgets developing, considering, execution and 
execution control.  This Code will be invalid on 1 January 2005 with the introduction of the 
Budgetary Code of the Republic of Kazakhstan of 24 April 2004 No . 548 regulating budget and inter-
budget relations and stipulating basic provisions , principles and mechanisms of budget system 
functioning, education and budget resources use. 
Question 3 
Kazakhstan should also describe how it uses such policies to meet its economic goals. 
Answer: 
In the fourth quarter of 2003, the average monthly inflation rate represented 1.3 per cent, while in the 
first quarter of 2004 this inde x did not exceed 0.5 per cent. 
Active credit policies of second-tier banks, sign ificant increase of foreign capital inflow to 
Kazakhstan caused the growth of money supply in the course of the year 2003.  In response, the National Bank of Kazakhstan regulated liquidity of second tier banks and implemented policies to 
restrict the growth of money supply.  Thus, in the first quarter of 2004, the National Bank issued 
short-term notes and carried out R EPO operations.  As a result, the growth of monetary aggregates 
was insignificant: the monetary base (reserve money) increased by 2.8 per cent and broad money by 8.6 per cent, including currency in circulation by  2.6 per cent and deposits by 10.6 per cent.  This 
allowed the National Bank to exercise a rigid control over inflation processes in the national 
economy. 
Question 4 
Paragraph 5 should actually describe Kazakhsta n's tax regime in broad terms (not refer to 
another document), noting the main sources of federal revenue and the main expenditures, and 
indicating any recent budget deficits or surpluses. 
Answer: 
The Tax Code of the Republic of Kazakhstan No. 20 9 adopted 12 January 2001 and entered in force 
since 1 January 2002. The Tax Code underlines the conceptual basis of the tax system developed 
during the previous years; contains the key principles of the legislative stability of the tax system; and excludes norms providing special tax privileges to individual tax payers. 
Basic provisions of the Tax Code are as the following: 
- unified taxation conditions for all tax payers  independent of types of activities including 
all sectors of the economy (except for subsurf ace users) allowing to avoid protectionism 
in the form of tax privileges in some sectors of the economy;   
- simplified taxation procedures for small businesses, farmers and agricultural producers, in 
support of their development; 
- provision of investment tax preferences to tax payers implementing investment projects 
with the purpose of creating new, expanding and renewal of existing industries. 
Eight types of taxes (except for taxes and sp ecial payments imposed upon subsurface users) 
introduced by the Tax Code included six types of direct taxes (corporate income tax, individual income tax imposed upon natural pers ons, social tax, property tax, la nd tax and transport tax) and two 
types of indirect taxes (value added and excise taxes).  WT/ACC/KAZ/50 
 Page 5 
 
 
 The key objective of Kazakhstan's tax policy is to increase state budget revenues through expansion 
of the tax base, creation of favourable conditions  for business development and reduction of illegal 
black market operations.  Besides, the tax policy of  the Republic of Kazakhstan is aimed at further 
invigoration of investments and innovative project s, reduction of the tax burden on the wages fund 
with the purpose of increasing the consumer de mand and facilitating legalization of citizens' 
unofficial incomes.  
The Republic of Kazakhstan reduced the tax rates base d on the personal wage income levels.  In 2004, 
the Republic of Kazakhstan introduced preferential treatment for corporate income tax levied upon 
industries investing into the petrochemical sector , which should contribute to implementation of 
Kazakhstan's Industrial and Innova tive Development Strategy and diversification of national 
economy.  In 2004, the Republic of Kazakhstan also  introduced special tax treatment for companies 
operating in special economic zones (in the so-ca lled Information Technology Parks), and engaged 
primarily in scientific research and de velopment of information technologies 
Table 1 - Rates of basic taxes imposed upon juridical persons since 1 January 2004: 
Corporate income tax  30% - for all tax payers; 
 10% - for tax payers using land as the main production medium  
VAT  15% 
Social tax   Regressive scale from 20% to 7%  
Property tax   1% 
Land tax   Basic rates are established depending on soil quality  
 
Since 2004, the Republic of Kazakhstan introduced a new tax regime for oil operations designed to 
increase the Kazakh future share in oil revenue.  Th e new tax regime for oil operations applied only 
for new contractual obligations and did not have retroactive force. 
Taxes are imposed upon subsurface users according to the following two models:  
- Licensing; and 
- Production Sharing Agreement (PSA). 
The first model suggested the payment of the rent tax on the export of crude oil, the tax on the excess 
profit, the royalties, bonuses as well as all other types of taxes and other mandatory payments 
established by the Tax Code.    
Pursuant to the Law of the Republic of Kazakhsta n "On Changes and Additions to Some Legal Acts 
of the Republic of Kazakhstan on Taxation Issu es" of 29 November 2003, natural and juridical 
persons exporting crude oil (excludi ng subsurface users, who signed PC A)  should pay the rent tax on 
the export of crude oil.  The rent tax is calculated  based on the actual value of the exported volume of 
crude oil and its market price depending on th e quality of crude oil with the deduction of 
transportation costs.  The market price is defined as weighted average price of prevailing sale prices in 
the world market during the (daily) reporting period in relation to a range of most similar brands of 
crude oil.  The list of similar brands of crude oil is defined by the Governme nt of Kazakhstan.  The 
rent tax rates are established according to the sliding scale starting from 1 per cent at the market price of US$ 19 per barrel and 33 per cent at the world price of US$ 40 and above. The tax period for the 
rent tax represents one calendar month.  
The second model suggests the taxation conditions as s tipulated in the PSA in accordance with the 
provisions of the tax legislation applied on the date wh en the contract is signed.   Under this model of 
taxation, the conditions of the PSA are fixed and can not be changed subsequent  to legislation changes 
without having both parties' agreement. WT/ACC/KAZ/50 
Page 6 
 
 
 The main sources of revenue for the state budget and the main expenditure lines, recent budget 
deficits or surpluses are presented in tables 2 and 3:  
Table 2 - Proceeds of the State Budget 
Proceeds Share in total payments   of 
the year 2003 % 
Tax proceeds 92.7 
Corporate income tax  26.7 
Individual income tax  9.1 
Social tax  15.4 
Property tax  2.7 
Land tax  0.5 
Transport means tax  0.5 
Value added tax  22.6 
Excise duties 2.6 
Including  excise duties imposed on alcohol  0.6 
Payments for use of natural and resources   7.2 
Duties imposed on entrepreneur a nd professional activities  0.3 
Taxes imposed on international trad e and external transactions  4.2 
Other taxes  0.0 
State duty 0.8 
Non-tax proceeds  4.4 
Capital transactions proceeds  1.2 
 
Table 3:  State Budget Data 
Title As percentage of GDP 
Use in cash for the year 
2002 Use in cash for the 
year 2003 The plan for the year 
20041 
Proceeds 21.7 23.0 24.0 
Revenues 21.4 22.6 23.6 
Tax proceeds 19.9 21.3 21.8 
Non-tax proceeds  1.2 1.0 1.4 
Capital transactions proceeds 0.3 0.3 0.3 
Official transfers received  0.0 0.0 0.0 
Repayment of credit  0.4 0.4 0.4 
Expenses  22.1 24.0 26.1 
Costs 21.2 23.1 25.3 
General state servi ces  1.2 1.5 1.7 
Defence 1.0 1.1 1.2 
Public order and security  2.1 2.1 2.4 
Education  3.2 3.3 3.8 
Health protection  1.9 2.0 2.5 
Social package and assistance  5.3 5.4 5.7 
Housing and communal 
services  0.7 0.8 0.8 
Culture, sports, tourism and 
information space  0.6 0.8 0.8 
Fuel and energy complex and 
subsurface utilization   0.2 0.2 0.4 
Agriculture, water industry, 
forestry, fishery and 
environmental protection  0.8 1.1 1.5 
Industry and building  0.1 0.1 0.0 
Transport and communication  1.5 1.9 2.1 
Other  1.3 1.9 1.3 
Debt servicing  1.0 0.8 0.9 
                                                      
1 State budget as of 1 April 2004  WT/ACC/KAZ/50 
 Page 7 
 
 
 Title As percentage of GDP 
Use in cash for the year 
2002 Use in cash for the 
year 2003 The plan for the year 
20041 
Official transfers  0.3 0.3 0.2 
Credits  0.9 0.9 0.8 
Budget deficit (surplus)  -0.3 -1.0 -2.1 
 
Federal budget receipts in 2003 totalled KZT 1,022, 255.7 million (or 24.5 per cent higher than in 
2002). Corporate income tax (26.7 per cent) and value added tax (22.6 per cent) represented two 
major revenue sources for the state budget. State budget expenditures in 2003 represented 
KZT 1,068,439.2 million.  State budget deficit in 2003 was equal to KZT 46,183.5 million. 
- Foreign Exchange and Payments  
Question 5 Paragraphs 6-9:  Are there any fees or restrictions associated with acquisition of foreign 
exchange for current account or capital account transactions? Are there any mandatory foreign 
exchange surrender requirements, prior deposit requirements, or ad valorem  charges on the 
acquisition of foreign exchange? 
Answer: 
In accordance with the Rules for Cu rrency Operations in the Republic  of Kazakhstan, adopted by the 
Resolution of the Board of the National Bank of th e Republic of Kazakhstan of 20 April 2001 No. 115 
(WT/ACC/KAZ/4 refers) certain restrictions appl ied with regard to the acquisition of foreign 
exchange by resident legal entities on the domest ic currency market without distinction between 
current and capital transactions. 
Resident legal entities may purchase foreign exchange  on the domestic currency market in exchange 
for the national currency only for the following purposes: 
- money transfers and payments to non-residents;  
- fulfilment of liabilities related to loans in fo reign currency granted by authorized banks; 
- official travel and other related e xpenses incurred outside Kazakhstan; 
- transfers to corporate accounts in accordance with  provisions stipulated in relevant norms 
of the National Bank of Kazakhstan;  
- repayment of deposits to natu ral persons in foreign currency (to corporations based on  
collective guarantees (insurance) of  deposits of natural persons); 
- foreign exchange operations in cash (for lega l entities licensed by the National Bank of  
Kazakhstan to perform foreign ex change operations in cash); and 
- any other purposes stipulated in the re levant legislation of Kazakhstan.   
In cases when a resident legal entity does not use th e whole amount of the foreign exchange, it should 
be sold for the national currency within 30 calendar days starting from the date of the acquisition. 
Non-resident legal entities are allowed to purchase fo reign exchange on the domestic currency market 
of Kazakhstan.  However, they can not use loans received in the national currency for the acquisition 
of foreign exchange.  
No restrictions associated with the acquisition of foreign exchange on the domestic currency market 
of Kazakhstan by resident and non-resident natural persons through authorized banks in line with the 
national legislation.  There are no fees applied to  the purchase of foreign exchange.  There are no 
mandatory foreign exchange surrender requi rements, prior deposit requirements or ad valorem  
charges on the acquisition of the foreign exchange.   WT/ACC/KAZ/50 
Page 8 
 
 
 There are no restrictions associated with the transf er of national and/or fo reign currency to bank 
accounts of non-resident legal entities in authorized banks provided that they are undertaken in line with the procedures set in and received as a result of  the transactions allowed by the relevant national 
legislation.  Non-resident legal entities may use na tional and/or foreign currency transferred to their 
bank accounts in authorized banks for the purposes wh ich are consistent with the relevant national 
legislation. 
Under the Rules for Currency Operations in the Re public of Kazakhstan adopted by the Resolution of 
the Board of the National Bank No. 115 of 20 Ap ril 2001, payments and money transfers for 
transactions between residents and non-residents may be conducted in any currency the parties agreed 
upon. Payments and money transfers for transacti ons between residents and non-residents may be 
conducted only through their bank accounts, except in  cases stipulated in the normative acts of the 
National Bank.  Both residents and non-resident s shall submit to the authorized bank documents 
required by the currency legislation of Kazakhstan.  In case residents and non-residents fail to provide 
the required documents, the authorized bank c ould not make payments and money transfers. 
Currency valuables covered by provisions of Artic le 1-1 of the Law of Kazakhstan "On Currency 
Regulation" can be imported to Kazakhstan by resi dents and non-residents without any restrictions 
following the procedures stipulated in the legislation.  
No restrictions applied to the export of the na tional currency from Kazakhstan by residents and non-
residents.  Coins of precious metals issued by the National Bank and recognized as a legal circulating 
medium could be imported to or exported from Kazakhstan without any restrictions. 
Resident natural persons have th e right to export from Kazakhstan foreign currency in cash in the 
amount of US$ 10,000 unsupported by  documents demonstrating its legal origin.  In cases when the 
amount of foreign currency in cash exceeds US $ 10,000, it can not be exported unless it has 
previously been imported to Kazakhstan and was indicated in a customs declaration on import. 
Non-resident natural persons have the right to  export from Kazakhstan foreign currency in cash 
equivalent to US$ 3,000 unsupported by documents de monstrating its legal origin.  In cases when the 
amount of foreign currency in cash exceeds the equiva lent of US$ 3,000, it can not be exported unless 
previously imported to Kazakhstan and is i ndicated in a customs declaration on import. 
In cases when the amount of foreign currency in ca sh exported by resident or non-resident natural 
persons from Kazakhstan does not exceed the equivalent  of US$ 3,000, there is no need to declare it 
to the customs body of Kazakhstan. 
In cases when the amount of foreign currency in ca sh exported by resident or non-resident natural 
persons from Kazakhstan exceeds the equivalent of US$ 3,000, it has to be declared in writing to the 
customs body of Kazakhstan. 
Resident and non-resident natural persons ma y export payment documents (bills, and checks, 
including traveller's checks) with their face value in a foreign currency without any restrictions and 
unsupported by a written declaration. 
Export of securities with a face value in a foreign curre ncy is regulated by the laws of the Republic of 
Kazakhstan on securities.  
In accordance with the Article 3 of the Law of Kazakhstan "On Currency Regulation", the President 
of  Kazakhstan has the right to restrict or suspe nd any currency transactions in emergency situations 
or where necessary to fulfil international obligatio ns.  Additionally, the same Law authorizes the 
National Bank to introduce restrictions on the cu rrency of payment used in export transactions, on  WT/ACC/KAZ/50 
 Page 9 
 
 
 surrender requirements applied to export receipts in  foreign currency, and on the form of payment 
under specific import and export contracts in orde r to ensure economic safety of Kazakhstan. 
Question 6 
Paragraph 9 implies that there are capital account controls.  Are these the licensing 
requirements in paragraph 15?  If there are other requirements, please describe them. 
Answer: 
In order to achieve macroeconomic stability throu gh lowering the national currency devaluation rate 
and the inflation rate, Kazakhstan introduced the currency regulation system based on the licensing 
requirement for transactions related to the capital f light.  The capital account c ontrol mechanisms also 
include the registration requirement for currency transactions and transaction passports for foreign 
trade operations.  
The licensing and registration requirements are described in Annex 1. 
Question 7 
Paragraphs 9-11: What criteria are used to "authorize" banks to deal in foreign currencies?  
Who authorizes banks? Are some of the requirements included in paragraph 16? 
Answer: 
Under  the Presidential Decree "On Further Improve ment of the Public Management System of the 
Republic of Kazakhstan" of 31 December 2003 No. 1270, the Agency of the Republic of Kazakhstan 
for Regulation and Control of the Financial Mark et and Financial Organizations (hereafter – the 
Agency) was established to exercise regulatory and supe rvisory functions in rela tions to   financial 
market institutions.   
Operations with foreign currency, including those on behalf of clients, are performed by second tier 
banks and other financial institutions licensed by the Agency (based on the positive conclusion of the 
National Bank), except for pure foreign exchange offices and the joint-stock company "Kazpochta".  
At present the National Bank licenses institutions solely  involved in foreign exchange and joint-stock 
company "Kazpochta".  No banks or other financia l institutions can be licensed to perform foreign 
currency transactions unless they were legal entities of the Republic of Kazakhstan in line with the 
relevant national legislation.  
Question 8 
Paragraph 12: This section should be more clear.  It states that the President and the Central 
Bank "may" impose requirements on currency relations and payments, including that 
exporters surrender their foreign exchange earnin gs.  Do such requirements currently exist?  
Are they exhaustively listed in paragraphs 15-17  below?  If not, please provide additional 
description.  
Answer: 
Article 3 of the Law of Kazakhs tan "On Currency Regulation", the President of Kazakhstan has the 
right to restrict or suspend any currency transacti ons in emergency situations or where necessary to 
fulfil international obligations.  Additionally, the same Law authori zes the National Bank to introduce 
restrictions on the currency of payment used in export transactions, on surrender requirements applied WT/ACC/KAZ/50 
Page 10 
 
 
 to export receipts in foreign currency, and on th e form of payment under specific import and export 
contracts in order to ensure economic safety of Kazakhstan. 
Question 9 
Paragraph 13:  Is the authority described in this paragraph currently being used by the 
Government?  If so, indicate which restrictions are covered. 
Answer: 
Since the enactment of the acting currency legislation there were no instances of restrictions enforced 
either by the President or the National Bank of Kazakhstan. 
Question 10 
Paragraph 15:  The description of licensing requirements for certain currency transactions 
includes: 
- transfers of residents to non-residents for the settlement of accounts relating to 
imports of goods, works, and services allo wing for advance payments for a period of 
more than 180 days, as well as for extension of  the period for receipt of earnings in a 
foreign currency as a payment for the export of goods (works, services) by residents 
for a period of more than 180 days aft er the date of export of goods (works, 
services); 
- receipt by residents of payments from non- residents for export of goods, included in 
the Schedule developed by the Government of the Republic of Kazakhstan, in case 
where the  period between the date on which the goods were exported and the date 
on which export receipts were collected, exceeds 365 days; 
- Is the license automatic?  What fees are ch arged?  Does the license involve a deposit 
by the resident?  Has the IMF approved this requirement? 
Answer: 
The regulator can not refuse licensing applicatio ns based on the considerations related to the 
economic viability of the operation.  Restrictions ar e purely procedural and have no formal relation to 
economic reasons of the operation a nd financial capability of the reside nt to meet risks pertinent to 
currency transactions.  No deposit requirements are applied to licensing procedures. 
To apply for a license of the National Bank a resident is required to submit the following 
documentation:  
- a standard application form;  
- a package of documents providing all releva nt information on the currency transaction  
and/or proving that the applicant meets re quirements regulating operations (activities) 
related to the use of currency valuables; and 
- a proof of payment of the licensing fee in the amount of ten monthly calculation indices 
(in 2004, 1 MCI = KZT 919 ). 
The Monthly Calculation Index (MCI) is an indicat or established annually in the state budget for the 
purpose of calculation of pension payments, benef its, other social payments, tax payments and 
penalties.  MCI is established at the rate of 919 te nge in the chapter 12 of the Law "On the Republican 
Budget for 2004" of 5 December 2003 No. 505-II.  MC I can be converted to US$ and € at a rate 
established by the National Bank on the date of paymen t to be made in accordance with the relevant  WT/ACC/KAZ/50 
 Page 11 
 
 
 legislation. For example, on 6 June 2004 the National Bank's rate was KZT 136.32 per US$ and 
KZT 166.27 per €; therefore 1 MCI = US$ 6.74 or € 5.53.     
The National Bank concludes that the documents s ubmitted and the operation ar e consistent with the 
requirements of the relevant legislation, the license is  issued within one month from the date of receipt 
of the last required document. Authorized banks ar e not allowed to undertake currency transactions of 
residents without a license.   
Question 11 
Paragraph 16:  Is it possible for a firm to impo rt or export goods (i.e., to be the importer or 
exporter of record) without "dealing" in foreign exchange? 
Answer: 
Legislation of the Republic of Kazakhstan does not restrict export-import operations without currency 
valuables, the so-called barter transactions.   
Question 12 
Paragraph 17: Concerning the registration requirements listed here: What is their purpose?  Are there fees?  Is reg istration with the National Bank automatic?  
Answer: 
The registration means notification made by the r esident on a specific transaction within 30 days from 
the date of contract enforcement, based on which the National Bank issues a registration certificate.  
The registration procedure is introduced for the purpose of statistical record, analysis of the balance of 
payments dynamics and external debt of Kazakhstan.   No fees are required for the registration of 
currency transactions.  The National Bank can not refu se registration based on the reasons related to 
the economic viability of the operation.  The only r eason for the refusal in registration could be the 
inconsistency of the contract to the prov isions of the Civil Code of Kazakhstan. 
To register capital account transactions the reside nt needs to submit a standard application form, a 
contract for the currency transaction and the documen ts proving the identity of the resident.  The 
National Bank of Kazakhstan issues a registration cer tificate within ten business days from the date of 
receipt of the application package, which then ser ves as a basis for the tran saction by the authorized 
bank. 
Question 13 
Does the "borrowing" and "crediting" referred to  in the second and third ticks include credits 
extended for international trade?   Must non-resi dents register to extend credits for trade with 
Kazakhstan? 
Answer: 
Credits extended by non-residents for the internationa l trade are required to be registered with the 
National Bank by the resident of Kazakhstan, which is the party to the transaction.  No registration 
requirements apply to non-resident creditors.  WT/ACC/KAZ/50 
Page 12 
 
 
 Question 14 
Why must non-residents register with the Nation al Bank to collect fees from the use of 
intellectual property?  
Answer: 
The resident party was responsible for the regist ration with the National Bank of payments made by 
non-residents to residents for the complete transfer  of exclusive rights to intellectual property.  
Question 15 
Paragraph 18:  Please provide citations of documents, laws, or regulations that confirm 
Kazakhstan's plans to liberalize its foreign exchange and payments system and revoke the 
measures listed in paragraphs 15-17 by 2007.   
Answer: 
The currency regime liberalization plans of his country are reflected in the Currency Regime 
Liberalization Concept of the Republic of Kazakhs tan approved by the Resolution of National Bank 
Board of 11 September 2002 No. 369.  
The legal basis needed for implementation of the first phase of the Concept as well as of the Currency 
Regime Liberalization Program of  Kazakhstan for 2003-2004 was formed as a result of the changes 
introduced into the currency legislation of Kazakhs tan in 2003.  With the purpose of a subsequent 
removal of currency regulation restrictions and si mplification of procedures for currency transactions 
related to foreign assets acquisition by residents,  including export/import transactions, the following 
legislative and regulatory documents were adopted: 
- Rules for Registration of Capital Accounts Transactions and Opening Accounts Abroad; 
- Instructions for Foreign Exchange Transac tions with Cash Foreign Currency in the 
Republic of Kazakhstan; 
- Rules for Currency Operations in the Republic  of Kazakhstan of 25 July 2003 No. 256; 
- Rules for Licensing of Operations related to Use of Currency Valuables of 25 July 2003 
No. 257; and 
- Instruction for Export-Import Currency C ontrol in the Republic of Kazakhstan of 
26 December 2003 No. 484. 
At present the draft Currency Regime Liberalizatio n Program for the period of 2005-2007 (second 
phase) is being developed.  The following st eps were proposed to be undertaken for its 
implementation: 
- abolition of the licensing requirement for dir ect investments abroad effected by all non-
financial organizations; 
- abolition of the licensing requirement for inv estments in foreign countries effected by 
banks and insurance  institutions (acquisiti on of stocks of non-residents by second tier 
banks will effected only after no tification of the National Bank); 
- abolition of a single licensing requirement for portfolio investments abroad effected by 
the rest of investors (other than banks and insurance institutions) and placed through 
brokers and dealers of Kazakhstan; 
- abolition of the licensing requirement for ope ning accounts in foreign banks to finance 
operational disbursements of subsidiaries and representative offices of Kazakh legal 
entities abroad; 
- abolition of the licensing requirement for loans effected by all financial institutions;  WT/ACC/KAZ/50 
 Page 13 
 
 
 - further liberalization of requirements for ope ning accounts by natural persons abroad; and 
- subsequent simplification and liber alization of the currency regime. 
- Investment Regime 
Question 16 
Please describe the provisions listed in paragraph 20.   Answer: 
Under the Law, investments are defined as all ki nds of property (except for goods destined for 
personal consumption), including subjects of leasing from the date of enforcement of the respective 
leasing agreement, and also rights thereto, invested by an investor into the charter capital of a legal 
entity or contributions made to the fixed assets us ed for entrepreneurial activities.  The Law "On 
Investments" had invalidated the Law "On Forei gn Investments" of 27 December 1994 No. 266-XIII 
and the Law "On State Support of Foreign Investments" of 28 February 1997 No. 75-I.  
Legal protection of investments includes: 
- full and unconditional protection of investors' rights; 
- guarantee of indemnity for the damage done to investor by issuance of norms non-
compliant with the Kazakh legislation and unl awful commissions or omissions of public 
officials; 
- guarantee of the stability of terms and conditio ns of agreements concluded by investors 
with the respective state agencies; 
- guarantee of the investors' use of income at their full discretion; 
- guarantee of the investors' rights' protection in the course of nationalization and 
requisitions; and 
- conflict resolution regulations, including the possibility of settling conflicts in 
international arbitration courts. 
The new mechanism of providing state support fo r investments has a number of considerable 
advantages.  First of all, the law in question envi sages equal support and stimulation of both domestic 
and foreign investments. It also reduces significan tly the length of time allowed for consideration of 
applications for investment preferences (up to 30 business days) and simplifies the procedure for 
granting such preferences.  
In accordance with Article 3 of the Law "On Investments", for the national security related 
considerations, there may be certain kinds of activ ities and/or areas in which investment activities are 
limited or banned:  
- Pursuant to Article 5 of the Law "On the M ass Media" of 23 July 1999 No. 451-1, foreign 
entities and individuals, stateless persons are not allowed to directly or indirectly own, use, dispose of and/or manage more than 20 per cent shares (equity, participation) of a 
legal entity owning or operating means of m ass media of the Republic of Kazakhstan. 
- Pursuant to Article 22 of the Law "On Banks  and Banking Activities in the Republic of 
Kazakhstan" of 31 August 1995 No. 2444, the ch arter capital of the banks established and 
operated with foreign capital participation, may not exceed 50 per cent of the aggregate 
charter capital of all banks of Kazakhstan,  except as permitted by the authorized state 
agency. 
- Pursuant to Article 65 of the Law "On Architectural, Town-Building and Construction 
Activities in the Republic of Kazakhstan" of 16 July 2001 No. 242-II, the share of foreign 
participation in joint ventures' char ter capital may not exceed 49 per cent. WT/ACC/KAZ/50 
Page 14 
 
 
 - Pursuant to Article 5 of the Law "On Gu arding Activities" of 19 October 2000 No. 85-II, 
foreign legal entities, legal entities with fore ign participation, foreign and stateless 
individuals may not engage in any kind of  guarding activities, set up or act as founders 
(participants) of private guarding organizations , act as trust managers of private guarding 
organizations, establish guarding units for legal entities and indi vidual businessmen.  
Question 17 
Include description of any incentives for invest ment, any restricted or prohibited sectors for 
foreign investment, any minimum capital require ments, maximum foreign equity limits, either 
for individual investments or by sector, and ge neral licensing or permission requirements for 
foreign investment. 
Answer: 
In order to create a favourable investment climat e for diversification of economic development of 
Kazakhstan, attract investments for establishment of new and expansion/modernization of existing 
production facilities, facilitate technological adva ncement and innovative deve lopment, and creation 
of new jobs, the Government of Kazakhstan introduced investment preferences. 
The representative of Kazakhstan further pointed ou t that the investment preferences were granted 
under the following conditions: 
- the investment activity in question should be included in the List of priority sectors; 
- investments should be made in the acquisition of fixed assets for establishment of new 
and expansion and/or upgrading of existing production facilities; and 
- application and other required documents should prove investor's financial, technical and 
organizational capacity for implementation of the investment project under consideration. 
The current list of priority activities for invest ment preferences, as approved by the Government 
Resolution "On Some Issues of Enforcing the Law "On Investments" of 8 May 2003 No. 436, comprises of 233 kinds of activities.  The Resolu tion enacted the following bylaws:  (i) Model 
investment contract granting investment preferen ces; (ii) Maximum investment volumes and duration 
of investment tax preferences, the authorized state agency required for issuing investment preferences, 
etc.  
In accordance with the Law "On Investments", the au thorized state agency may grant an investor, on 
contractual terms, the following investment preferences: 
- investment tax preferences; 
- customs duties exemption for imported goods; and 
- in-kind state grants.  
The duration of the investment tax preferences depe nds on the volume of investments made into fixed 
assets, the maximum term could not exceed five years.  The authorized state agency in charge of the 
investments is the Ministry of Industry and Trade of the Republic of Kazakhstan. 
Investment tax preferences includes:  (i) the corpor ate income tax preferences; (ii) the property tax 
preferences; (iii) the land tax preferences. 
- The corporate income tax preferences entitl es the taxpayer to gradually deduct from the 
aggregate annual income the cost of the commi ssioned fixed assets in equal parts throughout 
the term of the preferential treatment. Pursuant  to the effective legislation, the 30 per cent  WT/ACC/KAZ/50 
 Page 15 
 
 
 corporate income tax is assessed on the taxabl e income of taxpayers - legal entities, as 
adjusted, less the losses incurred.  
- The property tax preferences exempt a taxpa yer from the property tax on the fixed assets 
newly commissioned under the respective invest ment project. The balance value of the 
taxable objects determines on the basis of b ook-keeping constituted their tax base. Legal 
entities and individuals calculate the property ta x at the rate of 1% of the average annual 
value of the taxable objects. 
- The land tax preferences exempt the taxpayer from the land tax on the plots acquired and used 
for implementation of the respective investment project.  According to law, certain land 
categories are subject to taxation. The basic tax rates are determined for each land category 
under the established criteria.  Specifically:  
- with respect to agricultural la nds, the rates are set on a per hectare basis and differentiated 
according to the soil quality and yield class.  The base rates ranged from KZT 0.48 for the 
yield class 1 and up to KZT 202.65 for the yield class over 100; 
- with respect of the populated lands (including  the residential land with constructions and 
buildings located thereon), the basic rates are established on the per square meter basis 
and ranged from KZT 0.09 for residential lands  in settlements, villages up to KZT 28.95 
in Almaty for non-residential lands;  
- with respect of the lands used for industri al, transportation, communication, defence and 
other non-agricultural purposes (industrial lands ), the basic rates on the industrial lands 
situated in populated areas are the same as the basic rates for the populated areas.  The 
basic rates for the industrial lands situat ed beyond populated areas are established on a 
per hectare basis in proportion to the yield class.  They range from KZT 48.25 for the lands of zero yield class to KZT 5,790 for the lands of the yield class over 100.  
The date on which the investment tax preferences star ted to apply is set in the agreement pursuant to 
the Tax Code.  The legal entities operating under a special tax regime and under subsurface use 
contracts are not granted any investment tax preferen ces.  Nor are they granted such preferences with 
respect to the fixed assets received by a legal en tity of Kazakhstan as in-kind state grant.   
Equipment and parts thereof, imported for implemen tation of investment projects are exempted from 
customs duties in the following cases:  
- if the analogous equipment and parts are not pr oduced within the territory of the Republic 
of Kazakhstan; 
- if the analogous equipment and parts are not  produced within the Republic of Kazakhstan 
in quantities sufficient for the conduct of operations under the respective investment 
project; and 
- if the analogous equipment and parts produced within the territory of the Republic of 
Kazakhstan do not meet the respective investment project requirements. 
Customs duties exemptions may be granted for the term  of one year, this period may be subsequently 
extended, not exceeding the term of five years after the contract registration.  The decisions regarding 
customs duties exemptions and extensions are taken by the authorized investment body.  
Following the legislatively established procedure th e in kind state grants shall be granted into 
ownership or for use by the Government of the Repu blic of Kazakhstan or its authorized body, given 
approval of the state agencies responsible for manage ment of the state property and land resources. 
Approvals for granting in kind state grants shall be obtained within 15 business days from the time of 
request.  In kind state grants may be awarded in the form of land plots, buildings, constructions, 
machinery and equipment, computational devices,  measuring and regulating units, transportation 
vehicles (except for automobiles), industrial and household tools.  WT/ACC/KAZ/50 
Page 16 
 
 
 In kind state grants shall be assessed at their market value following the legislatively established 
procedure.  The maximum size of an in kind state grant may not exceed 30 per cent of the volume of investments made into fixed assets of a legal entity  of the Republic of Kazakhstan.  If the assessed 
value of the requested in kind state grant in kind ex ceeded the above limit, the concerned legal entity 
of Kazakhstan may still get the requested grant, havi ng paid the difference betw een its assessed value 
and the permitted maximum size of such grant. 
The new mechanism of providing state support for investments had a number of considerable 
advantages.  First of all, the law in question envi sages equal support and stimulation of both domestic 
and foreign investments.  It also reduces significan tly the length of time allowed for consideration of 
applications for investment preferences (up to 30 business days) and simplifies the procedure for 
granting such preferences.  
The Law "On Investments" does not set the mini mum capital requirements for foreign investments 
expanding the sphere of its application to small and medium business enterprises.   
Question 18 
Remove or amend the statement in paragraph 20  indicating WTO consistency, since that has 
not yet been determined. 
Answer: 
The statement that the provisions of the Law "On Investments" are consistent with relevant WTO 
obligations, including those under the TRIMs and Subsidies arrangements is removed. 
Question 19 
Paragraph 23-27: Discussion of land ownership rules could be compressed. Answer: 
The Land Code, of 20 June 2003 No. 442-II, defines the concept, composition and legal regime for 
each of the above mentioned land categories (Articles 97-127 of this Code). 
Pursuant to Article 20 of the Land Code both st ate and private ownership of land are equally 
recognized and protected in Kazakhstan. The Republic  of Kazakhstan is the state owner of the land 
within the territory of Kazakhstan.  Individuals  and non-governmental legal entities may privately 
own land plots on the grounds, terms and conditions est ablished in the Code.  Referred to individuals 
in this context are citizens of the Republic of Kazakhstan, foreigners and stateless persons, unless 
provided otherwise in the Code.  
 According to Article 22 of the Land Code, the ownership right to a land plot emerges via: 
- granting; 
- transfer; and 
- transfer by universal succession (inheritance, reorganization of legal entities).  
Ownership rights are granted or transferred taking in to account the land plot's destination.  Ownership 
right to land may emerge on the basis of regulations  of the state agencies, civil-legal transactions and 
on other grounds envisaged by the legisl ation of the Republic of Kazakhstan.  
Pursuant to Article 23 of the Land Code, the state- owned land plots may be transferred into private 
ownership of individuals and non- governmental legal entities, except if otherwise stipulated. Foreign  WT/ACC/KAZ/50 
 Page 17 
 
 
 citizens, stateless persons and foreign legal en tities may privately own land plots granted for 
development or developed as indus trial and non-industrial facilities, including residential buildings 
(constructions) and their complexes; lands needed for servicing buildings (constructions), if used 
according to their destination.   
The following categories of land plots may not be owned privately by both foreign and Kazakh legal 
entities and natural persons: 
- the land plots used for the defence and nati onal security needs, the state-owned defence 
industry,  
- engineering-technical constructions, communi cations erected for protection and guarding 
of the state borders of the Republic of Kazakhstan, for the customs needs;  
- specially protected natural territories;  
- forest fund (except for the land plots listed in Point 4 Article 128 of the Code);  
- water fund (except for the lands listed in Point 2 Article 133 of the Land Code);  
- main railway networks and commonly used highways; and 
- commonly used areas in settlement  territories,  except for the land occupied by privately-
owned buildings and c onstructions and needed for their servicing. 
-  State Ownership and Privatisation 
Question 20 
WT/ACC/SPEC/KAZ/8, paragraphs 30-34:  Coul d more information on the state of play of 
state privatization be included, e.g. indicating the percentage of privatized state enterprises, the areas that are not yet subject to privatization, a nd the share of capital in privatized enterprises?  
Answer: 
The state property management policy is regulated  by the Law "On Joint Stock Companies" of 
10 July 1998, the Law "On Limited and Additiona l Liabilities Partnerships" of 22 April 1998, the 
Presidential Decree valid as law "On State-Ow ned Enterprises" of 19 June 1995 No. 2335, the 
Presidential Decree valid as law "On Privatization"  of 23 December 1995 No 2721, the Civil Code, 
and the Law "On Amendments to some Legislative Acts of the Republic of Kazakhstan pertaining to 
State Property" of 21 May  2002  (hereinafter – "the Law"). 
The property of state-owned enterprises related to th eir fixed assets is sold solely upon the decision of 
the authorized body, and in some cases, upon th e decision of the Government of Kazakhstan. 
Proceeds from the sale of state property are us ed as the state budget revenues.  State-owned 
enterprises are not allowed to partic ipate in the charter capital of partnerships with limited liabilities; 
state bodies are not allowed to found and hold shares of those companies. 
The two-staged tenders and sale of derivative securi ties were introduced based on the world practices. 
Tender is the most popular way of pr ivatization of major strategic en tities, since this method promotes 
competition between potential buyers/investors.  Sale  of derivative securities is aimed to expand the 
range of potential investors, raise the profile of  Kazakh firms on the global capital markets.  The 
requirements, companies had to meet in order to pl ace derivative securities, ar e meant to ensure their 
transparency and consequently to minimize the investors' risks.  
In response, the following data on the state property as of January 2003 was provided: 
- there are 5,831 state-owned enterprises; 
- the state owns shares (participated) in 499 jo int stock companies and partnerships with  
limited liabilities (hereinafter – LLP); and WT/ACC/KAZ/50 
Page 18 
 
 
 - there are 13 legal entities with the status of national companies, including 11 joint stock 
companies and two state enterprises.  
National companies are established by the decision of  the Government of Kazakhstan in strategically 
important sectors of Kazakhstan's economy (Annex 2 c ontains the list of national companies and joint 
stock companies with the share of state ownership). 
According to the Government Resolution "On Measures Aimed at Provision of Information 
Exchanges and Maintenance of the State Property Database" of 21 March 1998 No. 246, the state 
property is registered in the State Registry of st ate enterprises and institutions, legal entities with the 
state share in the charter capital.  
The state property is privatized in accordance with  the Presidential Decree "On Privatization" and 
other laws of Kazakhstan. The nati onal regime is provided for particip ation of foreign legal entities in 
the privatization program.  
A large-scale privatization campaign (in 1991- 2000) and improvement of the state property 
management system constituted an important com ponent of the national economic reforms aimed at 
building a market economy in Kazakhstan.  
As of 1991, the Republic of Kazakhsta n had launched six privatization pr ograms; the last one is in its 
implementation stage.  All priva tization programs had been planned for two years and three of them 
had been focused on large scale privatization. Star ting from 1999, when the major part of the national 
economy was privatized, the focus was shifted to  effective management of the state property 
accompanied by the on-going privatization.  The last two programs were developed within the 
framework of the State Property Management and Pr ivatization Concept approved by the Government 
Resolution of 21 July 2000 No. 10 95.  In 2003-2005, privatization process depends on the state assets 
management efficiency, the size of the state debt and state liabilities. 
The list of privatization programs is as follows:    
- State Property Decentralization and Privatization Program of the Kazakh SSR for the 
period of 1991-1992; 
- National Program on State Property Decentraliza tion and Privatization of the Republic of 
Kazakhstan for the period of 1993-1995; 
- State Property Privatization and Restructuri ng Program of the Republic of Kazakhstan for 
the period of 1996-1998; 
- Program on Privatization and State Property Ma nagement Efficiency Improvement for the 
period of 1999-2000; 
- Sectoral Program on State Property Management Efficiency Improvement and 
Privatization for the period of 2001-2002; and 
- Sectoral Program State Property Management Efficiency Improvement  and Privatization 
for the period of 2003-2005.  
Ten leading companies with the state ownership sh are had been chosen as "blue chips" for further 
sales:  "Manghistaumunaigas", "Aktobemunaig as", "Kazzink", Ust-Kamenogorsk Titanium—
Magnesium Works, Sokolovsk-Sarybaisk Mining-C oncentrating Production Association, "Aluminium 
of Kazakhstan", transnational company "Kazch rom", People's Savings Bank of Kazakhstan, 
"Kazakhtelecom" and "Kazakhmys".  At this stag e, the state owned shares of "Manghistaumunaigas", 
"Aktobemunaigas", "Aluminium of Kazakhsta n", "Kazakhmys", People's Savings Bank of 
Kazakhstan and Ust-Kamenogorsk Titanium—Magnesium Plant" had been fully sold.    WT/ACC/KAZ/50 
 Page 19 
 
 
 During the period of 1991 - 2004, 3,745 joint stock co mpanies and partnerships  with limited liabilities 
were privatized via auctions (28010), tenders (663) , exchange 9131) and direct sales (150). The share 
of the private sector in the national GDP constitutes 75 per cent. 
 
Table 4 - State Property Privatization Methods Used in 2003 
(units) 
Name Auction Tender Stock 
Exchange Direct sale Total English Dutch Commercial Investment 
State blocks of 
shares 
(participations) in JSC and LLP 11 10 13 9 1 21 65 
Property complexes 1 16 9 5 0 3 34 
Other objects 514 1,278 80 39 0 96 2,007 
Total: 526 1,304 102 53 1 120 2,106 
 
 
Table 5 - Results of the privatization processes in 1991- 2004 
Years Privatization of 
property complexes, 
real estate property 
objects, incomplete 
construction, 
transportation and 
other objects (units) Privatization of the 
state shares in JSC 
and LLP (units) Case-by-case 
privatization 
(units) Privatization 
proceeds (thousands 
of tenge) 
1991-1992 4,771     165 
1993 153   1 783,989 
1994 2,645   1 1,459,266 
1995 3,239 385 6 7,233,421 
1996 3,526 889 27 31,214,565 
1997 5,641 1,315 48 54,511,449 
1998 2,716 513 11 66,701,804 
1999 2,462 162   34,815,880 
2000 1,766 93   22,048,029 
2001 2,059 146   16,583,078 
2002 1,756 67   19,340,183 
2003 2,041 65   60,127,949 
1st quarter 2004 430 16   4,362,507 
Total 33,205 3,651 94 319,182,285 
 
 
Table 6 - Dynamics of the State Property Privatization in Various  
Sectors of the Economy in 1999-2003 
 
 1999 2000 2001 2002 2003 
(units) 
1. Privatized state blocks  o f  s h a r e s  i n  J S C  a n d  
LLP, total  162 93 146 67 65
Including:  
Industry 26 34 39 22 16
Construction 12 4 10 3 5
Agriculture 20 9 25 8 3
Transportation and communication 40 15 13 15 4
Trade in and repair of household goods 15 4 11 3 5
Finance 2 4 1 WT/ACC/KAZ/50 
Page 20 
 
 
  1999 2000 2001 2002 2003 
Health care 12 4 3
Education  8
Other objects 47 27 32 11 21
2. Privatized property complexes, immovable 
property objects, incomp lete construction, 
transportation and other objects  2,462 1,766 2,059 1,756 2,041
Total 2,624 1,859 2,205 1,823 2,106
 (in per cent to the total amount of state blocks) 
Industry 16.1 36.6 26.7 32.8 24.6 
Construction 7.4 4.3 6.8 4.5 7.7 
Agriculture 12.3  17.2 11.9 4.6 
Transportation and communi cation 24.7  8.9 22.4 6.2 
Trade in and repair of household goods 9.3  7.5 4.5 7.7 
Finance 1.2 9.7 2.7 1.5  
Health care  16.1 8.3 6.0 4.6 
Education  4.3   12.3 
Other objects 29.0 29.0 21.9 16.4 32.3 
Total 100.0 100.0 100.0 100.0 100.0 
 
Major part of agricultural products are produced by  the private sector and such important economic 
activities, as public catering, trade, food and light industry, services, etc., are no longer state-owned.  
The rules and procedures are set forth in publicly accessible laws and regulations of the Republic of 
Kazakhstan. Tender announcemen ts indicating the time, place and type of tender, property on sale, the 
sale procedure, initial price, guarantee deposit am ount and winner selection criteria are published by 
the seller in the official press in Russian and Kaza kh languages not less than 30 days before the tender 
date. 
Foreign participants can purchase shares on the secondary market from the groups that have 
previously received such shares in the privatizati on of enterprises, provided that such enterprises are 
listed on the secondary market.  The only exception to this rule was that agricultural producers, who 
had privileges (i.e., received shares in exchange of liabilities) during the first and second stages of 
privatization, could not sell their shares to either domestic or foreign investors until their liabilities are 
paid off  to joint stock companies.  
The Presidential Decree of 23 June 1993 No. 1290,  constituting a legal framework for Investment 
Privatization Funds (PIFs), contains no restrictions  or special conditions prohibiting foreign investors 
from purchasing shares in, once they are converted  into open joint stock companies.    
The Republic of Kazakhstan is ready to provide any additional information on the on-going 
privatization program as well as on plans for future privatization processes upon the request of WTO 
Members. 
Question 21 
Does Kazakhstan's legislation foresee any excepti ons or areas that will not be subject to 
privatization? 
Answer: 
Depending on its economic significance, the state property of Kazakhstan is divided into three 
categories: 
- The first category comprises of the state property exempted from privatization and its 
preliminary stages. This list was approved by the Presidential Decree of 28 July 2000 
No. 422. The Government Resolution of  24 October 2000 No. 1587 approved:  WT/ACC/KAZ/50 
 Page 21 
 
 
 - the list of state property exempted from privatization (as of 18 December 2003); 
- the list of state property exempted from privatization, including its preliminary stages, up 
to 2006; and 
- the list of joint stock companies, where th e state owned shares are exempted from   
privatization, including its preliminary stages, up to 2006 (Annex 2). 
- The second category included the national companies established under the Government 
Resolution in the strategic sectors of th e economy, such as oil and gas, mining and 
metallurgical, transport and communication, ener gy and machine building sectors. Part of the 
state owned shares in joint stock companies and state-owned enterprises, constituting national 
enterprises, are envisaged to be privatized in  line with the national economic priorities. 
 - The third category consists of the state pr operty not related to the first two categories: 
- state owned shares in the joint stock companies; 
- state participations in the charter capital of Partnerships with Limited Liabilities;  
- real estate property, the construction of which was not completed; and 
- property complexes and other property. 
The decision on privatization of the third category state property depends on the economic efficiency 
of its state ownership status.  Privatization of  the property complexes and state owned shares of 
companies that have a dominating (monopoly) position in the market or of those of strategic importance for the national economy are privatized by  the Government resolutions via application of 
the most optimal privatization methods. 
Concerning the plans for state property privatization of Kazakhstan, in 2004 the list of state property 
includes state owned shares of 75 joint stock co mpanies and more than 1,000 immovable property 
objects, property complexes, machinery and equipmen t, transportation vehicles and other objects.    
Question 22 
The information referred to in paragraph 34 should  be actually presented, in compressed form, 
inter alia, addressing the following points: 
- Does Kazakhstan have a privatization program?  If so, what laws authorize it, is it 
still ongoing, and what have been the results in the period of its duration?  Does it 
cover both agricultural and non-agricultural enterprises? 
Answer: 
The state property is privatized in accordance with  the Presidential Decree "On Privatization" and 
other laws of Kazakhstan.  The national regime is provided for participation of foreign legal entities in 
the privatization program.  
A large-scale privatization campaign (in 1991-2 000) and improvement of the state property 
management system constituted an important com ponent of the national economic reforms aimed at 
building a market economy in Kazakhstan.  
An indispensable and most important part of economic reforms implemen ted during Kazakhstan's 
transition period have been conducted of a larg e-scale privatization campaign (years 1991-2000), 
organization and improvement of the state property management system.  
As of 1991, the Republic of Kazakhsta n had launched six privatization pr ograms; the last one is in its 
implementation stage. All privatization programs ha d been planned for two years and three of them WT/ACC/KAZ/50 
Page 22 
 
 
 had been focused on large scale privatization. Star ting from 1999, when the major part of the national 
economy was privatized, the focus was shifted to  effective management of the state property 
accompanied by the on-going privatization.  The last two programs were developed within the 
framework of the State Property Management and Pr ivatization Concept approved by the Government 
Resolution of 21 July 2000 No. 1095.  In 2003-2 005, privatization process depends on the state assets 
management efficiency, the size of the state debt and state liabilities. 
The following list of privatization programs:    
- State Property Decentralization and Privatization Program of the Kazakh SSR for the 
period of 1991-1992; 
- National Program on State Property Decentraliza tion and Privatization of the Republic of 
Kazakhstan for the period of 1993-1995; 
- State Property Privatization and Restructuring Program of the Republic of Kazakhstan for 
the period of 1996-1998; 
- Program on Privatization and State Property Ma nagement Efficiency Improvement for the 
period of 1999-2000; 
- Sectoral Program on State Property Management Efficiency Improvement and 
Privatization for the period of 2001-2002; and 
- Sectoral Program State Property Management Efficiency Improvement and Privatization 
for the period of 2003-2005.  
Question 23 
How many and what kind of firms were designated  for privatization, and by what methods?  
How many are now in private hands ?  How many more a re expected to be privatized prior to 
the conclusion of the program?  When would th at be?  (Note: A chart should be prepared 
similar to that included in other accession Work ing Party reports outlining this information). 
Answer: 
Ten leading companies with the state ownership shar e had been chosen as "blue chips" for further 
sales:  "Manghistaumunaigas", "Aktobemunaig as", "Kazzink", Ust-Kamenogorsk Titanium—
Magnesium Works, Sokolovsk-Sarybaisk Mining-C oncentrating Production Association, "Aluminium 
of Kazakhstan", transnational company "Kazch rom", People's Savings Bank of Kazakhstan, 
"Kazakhtelecom" and "Kazakhmys".  At this stage,  the state owned shares of "Manghistaumunaigas", 
"Aktobemunaigas", "Aluminium of Kazakhsta n", "Kazakhmys", People's Savings Bank of 
Kazakhstan and Ust-Kamenogorsk Titanium—Magnesium Plant" had been fully sold.   
During the period of 1991 - 2004, 3,745 joint stock co mpanies and partnerships with limited liabilities 
were privatized via auctions (28010), tenders ( 663), exchange (9131) and direct sales (150).  The 
share of the private sector in the national GDP c onstituted 75 per cent.  Tables 4, 5 and 6 refer. 
Question 24 
Does the state retain partial ownership in firms and enterprises slated for privatization?   
Answer: 
Data on the state property as of January 2003: 
- 5,831 state-owned enterprises; 
- the state owned  shares (participated) in 499 joint stock companies and partnerships with  
limited liabilities (hereinafter – LLP); and  WT/ACC/KAZ/50 
 Page 23 
 
 
 - 13 legal entities with the status of national companies, including 11 joint stock companies 
and two state enterprises.  
Question 25 
The scope and particulars of firms and ent erprises owned by the government of Kazakhstan 
and/or its sub-central authorities should be described.  The description should include, but not 
be limited to: 
- a descriptive listing of state holdings with large enterprises identified,  
- information on the extent of state involvement in management,  
- information on any monopolies whether "natural" or not, or any special benefits,   
- information on state-owned firms that will not be privatized, 
- the extent to which current state holdin gs are slated for privatization, and  
- the portion of GDP, imports, and exports is  accounted for by the activities of state-
owned enterprises in Kazakhstan. 
Answer: 
National companies are set up under decision of th e Government of Kazakhstan in strategically 
important sectors of Kazakhstan's economy (Annex 2 c ontains the list of national companies and joint 
stock companies with the share of state ownership). 
The state property management is regulated by the Law "On Joint Stock Companies" of 10 July 1998, 
the Law "On Limited and Additional Liabilities Part nerships" of 22 April 1998, the Presidential 
Decree valid as law "On State-Owned Enterprises" of  19 June 1995 No. 2335, the Presidential Decree 
valid as law "On Privatization" of 23 December 1995 No. 2721, the Civil Code, and the Law "On 
Amendments to some Legislative Acts of the Republ ic of Kazakhstan pertaining to State Property" of 
21 May 2002  (hereinafter – "the Law"). 
The property of state-owned enterprises related to their fixed assets was sold solely upon the decision 
of the authorized body, and in some cases, upon the decision of the Government of Kazakhstan. 
Proceeds from the sale of state property were used as the state budget revenues.  State-owned 
enterprises were not allowed to participate in the char ter capital of partnerships with limited liabilities; 
state bodies were not allowed to found and hold shares of those companies. 
Additional kinds of tenders  had been introduced in compliance w ith the world practices:  two-staged 
tenders and sale of derivative securities were introdu ced based on the world practices.  Tender is the 
most popular way of privatization of major strate gic entities, since this method promotes competition 
between potential buyers/investors.  Sale of derivative securities is  aimed to expand the range of 
potential investors, raise the profile of Kazakh firms on the global capital markets.  The requirements, 
companies have to meet in order to place derivative securities, are meant to en sure their transparency 
and consequently to minimize the investors' risks.  
According to the Government Resolution "On Measures Aimed at Provision of Information 
Exchanges and Maintenance of the State Propert y Database" of 21 March 1998 No. 246, the state 
property was registered in the State Registry of st ate enterprises and institutions, legal entities with the 
state share in the charter capital. 
Depending upon its economic significance, the stat e property of the Republic of Kazakhstan is 
divided into three categories: WT/ACC/KAZ/50 
Page 24 
 
 
 - The first category comprises state property ob jects exempt from privatization and its 
preliminary stages.  This list was approved by  the Presidential Decree of 28 July 2000 
No. 422. The Government Resolution of  24 October 2000 No. 1587 approved: 
- the list of state property exempted from privatization (as of 18 December 2003); 
- the list of state property exempted from privatization, including its preliminary stages, up 
to 2006; and 
- the list of joint stock companies, where th e state owned shares were exempted from   
privatization, including its preliminary stages, up to 2006 (Annex 2). 
- The second category includes the national co mpanies established under the Government 
Resolution in the strategic sectors of th e economy, such as oil and gas, mining and 
metallurgical, transport and communication, ener gy and machine building sectors. Part of the 
state owned shares in joint stock companies and state-owned enterprises, constituting national enterprises, are envisaged to be privatized in  line with the national economic priorities. 
- The third category consists of the state property not related to the first two categories: 
- state owned shares in the joint stock companies; 
- state participations in the charter capital of Partnerships with Limited Liabilities;  
- real estate property, the construction of which was not completed, and 
- property complexes and other property. 
Privatization of the state property referred to the third category depends on the economic efficiency of 
its state ownership status. Privatization of th e property complexes and state owned shares of 
companies that had a dominating (monopoly) positi on in the market or of those of strategic 
importance for the national economy are privatized by  Government resolutions via application of the 
most optimal privatization methods. 
- Sectoral Priorities 
 - Mining 
Question 24 
Paragraphs 35-44: We would appreciate an expl anation for the WTO relevance of this section 
and some consideration of a revision that ref ocuses the discussion on trade issues.   
Answer: 
This section has been removed.  
Question 26 
What, if any, issues of trade in extracted goods a re dealt with in the legislation laying out access 
to this sector? 
Answer: 
Issues of trade in extracted goods are regulated by  the Law of the Republic of Kazakhstan "On Export 
Control"  and by the Convention on Measures of Indirect Regulation of Export of Goods approved by 
the Governmental Resolution of the Republic  of Kazakhstan of 2 July 2002 No. 714.  WT/ACC/KAZ/50 
 Page 25 
 
 
 Question 27 
Are the participants free to sell or to export the minerals extracted?  Are there taxes, fees, or 
other charges paid to the government for the ri ght to sell or export the extracted minerals? 
Answer: 
The participants of market are free to sell or to export the mineral extracted except specialized.  Tax 
Code and Customs Code regulate taxes, fees and othe r payments to the budget imposed at the territory 
of the Republic of Kazakhstan with regard to th e right of selling and ex port of mineral product. 
According to the Tax Code under estimation of VAT for the goods manufactured, works completed 
and services provided at the territory of the Repub lic of Kazakhstan the tu rnover on selling the goods 
for export except iron-and-steel and non-ferrous metals scrap is imposed at zero  rate; in the case of 
excisable goods manufacturing and selling in the Re public of Kazakhstan the export of the excise 
goods is not subject to taxation.  The requirements are not valid at the territory of the Republic of 
Kazakhstan with respect to use of local resources by  companies that are carrying out their activities in 
this sector.   
Question 28 
What requirements are there for use of local goods by firms participating in this sector, e.g., in 
the laws and regulations listed in pa ragraph 36, paragraph 41, or elsewhere? 
Answer: 
The Decrees of the President of the Republic of Kaza khstan, having the force of law, "On Subsurface 
and Subsurface Use" of 27 January 1996 No. 2828  and "Concerning Petroleum" of 28 June 1995 
No. 2350, the Governmental Resolution of the Re public of Kazakhstan "On Approval of Rules of 
purchasing of goods, services and works for oil operati ons required the use of domestically produced 
products and services provided that they meet the st andards and other requirements, as a result of the 
bidding process.  Both national and foreign compan ies were equally entitled to participate in the 
bidding process.  
- Pricing Policies Question 29 Questions and replies (WT/ACC/KAZ/37/Add. 3):  Can we conclude that prices for energy are 
set by the market both do mestically and for export? 
Answer: 
Production of electric power, natural gas (gas condensat e) and other energy forms is not considered to 
be within the sphere of natural monopolies and belongs to competitive market, where prices are 
determined depending on terms of contr acts between producers and consumers.  
Transmission and distribution of electricity via th e national company "KEGOK" is considered to be 
the activity within the sphere of natural monopolies a nd as such is a subject for state price regulation.  
The regional (oblast) departments of the Agency a pproved the tariffs applied by regional electricity 
network companies; electricity tariffs applied vis-à- vis consumers, and tariffs for heating services.   
Prices for energy production are set by the market both domestically and for export and depend on the 
current level of demand and supply.   WT/ACC/KAZ/50 
Page 26 
 
 
 Question 30 
We seek in tabulated form detailed information on all price regulations, whether applied by the 
central government or at sub-central level.  We ask that the table include columns for: 
- the tariff code for the product or the CPC code for the service 
- the description of the product or service 
- details of the price regulation applied incl uding the type of regulation (e.g., price 
cap, profitability cap, minimum price, fixed price, fixed price/tariff under "natural monopoly" provisions), and its scope (applicat ion to sales or purchases; origin of the 
goods) level and duration (including, e.g., indefinite) 
- the entity (or entities) responsible for applying the measure 
- all relevant laws, regulations and decisions relating to the measure 
- WTO justification or the date of elimination. 
Answer: 
The list of regulated services referred to the sp here of natural monopoly in the Republic of 
Kazakhstan are provided in Annex 3. 
Question 31 We seek clarification of whether the regulatio n of prices charged by "natural monopolies" 
involved in services related to the supply of produc ts to markets (e.g., oil, gas) is applicable to 
the prices of the products supplied (whether or no t inclusive of a service charge) or only to the 
prices of the services involved in supplying tho se products.  Paragraph 49 is unclear on this 
point. 
Answer: 
State regulation is restricted to natural monopoli es and paid services provided by public entities and 
services provided by state-owned enterprises (i.e. services classified as natural monopolies). 
Question 32 
Paragraphs 45-46: Please expand the descript ion of Kazakhstan's "natural" monopolies 
including but not limited to the following: 
Is this a legal term or a philosophical one?   
Answer: 
Natural monopoly is a legal term. According to Artic le 3 of the Law, a natural monopoly is the state 
of services (goods, works) market, where creation of  a competitive environment is not feasible and 
economically unviable due to technological peculia rities of the production and provision of such 
services. 
Question 33 
Is the list of entities that have this design ation in paragraph 46 a closed list?   
Answer: 
The list of entities that had this designation in paragraph 46 is a closed list.  WT/ACC/KAZ/50 
 Page 27 
 
 
 Question 34 
What rights, or responsibilities, accrue to these "natural monopolies?"   
Answer: 
In line with Article 7 of the Law, natural monopolists have the following responsibilities:   
- to deliver adequate quality services to consum ers applying the tariffs approved by the 
authorized body; 
- to provide services on equal conditions to all consumers users, excep t for special cases 
requiring provision of services on preferential terms, in accordance with the legislation of the Republic of Kazakhstan; 
- to procure material, financial resources a nd services following the order established by 
the legislation of Kazakhstan;  
- to apply the most effective production me thods and technologies, and methods of 
provision of natural monopoly services, taking into due account principles of social and ecological safety;  
- to perform mandatory annual audits and pub lish audit findings and annual financial 
statements in mass media that were availa ble in locations, where natural monopolies are 
functioning. 
- to keep separate books when carrying out ot her business activities permitted by the Law; 
- to apply tariff estimates; 
- to conclude agreements with consumer for each type of services regarded as those of 
natural monopolies in line with the standard ag reement approved of by the Government of 
Kazakhstan; 
- to provide consumers with devices to m easure the quantity of utility services;  
- to coordinate with the authorized body invest ment projects that were taken into account  
in setting tariff rates and re-e valuate fixed assets following the order established by the 
legislation of Kazakhstan; 
- upon the request of the authorized body, to provide a report on application of tariff 
estimates based on quarterly results; 
- to prevent violation of consumers rights while  concluding service provision contracts; and 
- to notify the authorized body and consumers about lowering tariffs ten days prior to their 
enactment. 
According to Article 6 of the Law, "natural monopolies" shall have the right to:  
- in line with the legislation, to establish t echnical requirements, the implementation of 
which were mandatory for consumers;  
- to reduce tariffs for services provided for a ll consumers for periods, when the tariffs 
approved by authorized body were still in force; 
- to test the accuracy of different kinds of metrological equipment in the manner 
established by the legislation of Kazakhstan; 
- to participate in the decision-making process by  the authorized body regarding the legal 
status and performance of natural monopolies through making relevant proposals;   
- to appeal in the court actions (inaction) of  the authorized body, which were in conflict 
with the legislation of Kazakhstan;  
- to appeal to the authorized body or the court actions (inaction) of other entities that had an 
impact on it's legal status, reve nue, property or performance;  
-
 to request it's exclusion from the State Regist er of  Natural Monopolies (hereinafter – 
Register); and 
- and to exercise any other rights provided by the legislation of Kazakhstan. WT/ACC/KAZ/50 
Page 28 
 
 
 Question 35 
Does the state maintain their monopoly under law, or can foreign and domestic private 
enterprises establish in these areas and compete,  e.g., in telecommunications and pipeline 
construction? 
Answer: 
Currently there is no legal definition of the te rm "state monopoly".  Telecommunications services 
provided using the local communications network is considered to be in the sphere of natural 
monopoly.  The legislation on natural monopolies do es not contain any restrictions for accessing those 
services markets.  
Question 36 Are any of these "natural" monopolies slated for privatization? 
Answer: 
Currently the policy of the Government is dir ected at promoting competition through narrowing down 
the sphere of natural monopolies activities.   
To further deepen market relations in the electri cal power industry, enhancing  transparent pricing 
mechanisms in competitive markets and ensuring pr ovision of non-discriminatory access to electricity 
networks, the Government of Kaza khstan developed the Concept of Further Development of Market 
Relations in the Electrical Power Industry for the period of 2004-2006 (hereinafter - Concept).  The Concept was approved by the Government Reso lution No. 190 of 18 February 2004.  The 
Government also developed an Action Plan  for implementation of the Concept.   
The Concept is aimed at building a model of th e wholesale market of electrical energy, which 
included along with a decentralized electricity trad e market, also a centralized electricity market, 
electronic trade of electricity, and a market of main (or systemic) and supporting services.  On the retail sale market of electricity, activities relate d to electrical power supply would no longer be 
considered as the sphere of na tural monopoly and would be transferred to the competitive market 
environment.  In this regard, the Concept also incl udes the plan to break down  vertically integrated 
monopolies based on their forms of activities as well as to reorganize electricity supply networks.  
The Government of the Republic of Kazakhstan has approved the Resolution of 6 February 2004 
No. 145 the Program on Railway Transport Restruct uring in the Republic of Kazakhstan for the 
period of 2004-2006.  The new economic model of the sector envisaged orga nizational and financial 
separation of related infrastructure and other fu nctions of the national company "Kazakhstan Temir 
Zholy".  In accordance with the restructuring pr ogram, charges applied by the national company 
"Kazakhstan Temir Zholy" for the use of the main railway infrastructure by other carriers and users would remain to be considered as the sphere of natural monopoly and therefore represent a subject for 
state price regulation. The charges for services provided by carriers and companies operating in the railway transport sector for transportation of co mmodities for both domestic consumption and export 
would be established in a competitive market envir onment. Therefore, those carriers and companies 
are planned to be reorganized and their shares to be sold in line with the national legislation.  
Question 37 
In addition, please indicate in the discussion if Kazakhstan has the authority to apply price 
controls on goods and whether such controls exist,  e.g., on grain, petroleum or alcohol products.   WT/ACC/KAZ/50 
 Page 29 
 
 
 If so, please describe how they are applied to imported, exported, and domestically produced 
goods, e.g., at the border, at retail, wholesale, or  ex factory level?  If they are applied only 
internally, how are imports distinguished for the purpose of enforcement?  Please provide 
information on the HS categories covered by any such controls. 
Answer: 
In order to develop a free competitive environmen t, facilitate development of entrepreneurship, 
protect consumers interests and to ensure effectiv e functioning of commodity markets, the Law " On 
Competition and Restriction of Monopolistic Activ ities" was adopted, which determined legal and 
institutional/procedural measures of state regulati on aimed at support to entrepreneurship, and at 
prevention, restriction and regul ation of monopolistic behaviour.  
In addition to natural monopolies, the authority of  the Agency also extends to companies having a 
dominant position in a specific commodity market.  Under the acting law of the Republic of Kazakhstan, a company is deemed to have a domin ant position in a specific commodity market if it 
has more than 35 per cent market share.   
The current Law covered relations that had an impact upon competition on commodity markets of 
Kazakhstan which included both foreign and local  legal entities (their branches and representative 
offices), individual entrepreneurs, publ ic bodies and also natural persons.  
To control and regulate the activity  of market agents, the Agency developed and maintained  State 
Register of market agents that had domi nating (monopolistic) position on commodity markets 
(hereinafter – Register).  Market subjects, included into the Register, notified the Agency thirty days 
in advance about expected increases in prices of  goods and services produced by monopolists, and 
submitted documents justifying reasons for proposed pr ice increases.  Those companies also had to 
follow the pricing procedures determined by the Rules on State Regulation of Prices for Goods and Services of Market Entities that had Dominating (Monopolistic) Position on a Commodity Market  
(Government Resolution of 14 September 2001, No. 1212). 
Based on the review of submitted documents, th e Agency either approved the proposed price 
increases or notified the entity about the Agency 's decision on insufficient reasoning for proposed 
price changes.  In cases, when an entity with a dominant (monopolistic) position in certain commodity 
market introduced price increases without the approval  of the Agency, as well as  in cases, when they 
breached antitrust legislation twice within the sa me calendar year, the Agency could impose state 
price regulation measure by introduction of fixed prices for goods and services produced by this 
entity. 
Question 38 
WT/ACC/SPEC/KAZ/8, paragraph 47:  Please co nfirm that tariff rates are the same for 
transportation of oil for domestic use and for export. 
Answer: 
The Order of the Chairperson of the Agency of  the Republic of Kazakhstan on Natural Monopoly 
Regulation and Competition Protection (hereinafter - Agency) No. 248- ОD of 13 December 2002 
established the Price List (tariffs) for services of CSC "KazTransOil" related to transportation of crude oil via major pipelines, according to which unified tariff rates applied both fo r domestic consumption 
and export.  In order to support production capac ity of domestic oil refineries and slow down the 
growth of domestic prices on oil products, the d ecreasing coefficient of 0.46 was applied for 
transportation of crude oil to Kazakh oil refineries.   The practice shows that an introduction of the 
decreasing coefficient did not constitute export restric tion in the meaning of Article XI of GATT.  For WT/ACC/KAZ/50 
Page 30 
 
 
 instance, Kazakhstan produced 47,199 tons of crude oil in 2002, of which 41,530 tons were exported; 
and 51,256 tons -in 2003, of which 45,187 tons were e xported. According to the statistics for the first 
half of 2004, approximately 28,098 tons of crude oil had been produced in Kazakhstan, of which 
24,912 had been sold abroad. 
-  Competition Policy Question 39 Paragraph 65:  It is very clear that there is  no "natural" monopoly in telecommunications 
services, and the limited nature of Kazakhstan's offer in the negotiation of its services commitments supports the contention that a st ate monopoly is being granted and preserved. 
Answer: 
Only local telephone services and lease of communicati on channels are currently considered to be in 
the sphere of natural monopolies due to the fact that there is insufficient competition in the delivery of 
such services.  There are, however, no regulatory barriers to enter this sector. Kazakhstan's commitments in the basic telecommunications sector  and value-added networ ks are provided in its 
revised offer on services.  
The 2003-2005 Telecommunications Development Progr am of the Republic of Kazakhstan adopted 
by the Government Resolution of 18 Februa ry 2003 No. 168 stipulates measures aimed at 
implementation of stage-by-stage liberalization of  the telecommunications market of Kazakhstan, 
including elimination of exclusive rights of the KazakhTeleCom for provision of international and 
long-distance communication services.  These measur es are expected to facilitate competition, 
improve quality and volume of telecommunications services, and remove barriers for new entrants.  
Additionally, the Republic of K azakhstan developed draft Laws of  the Republic of Kazakhstan "On 
Changes and Amendments to Legislative Acts of  the Republic of Kazakhstan on Communications" 
and "On Communications", the latter was signed on 5 July 2004.  The draft Law ‘On Changes and 
Amendments to Legislative Acts of the Republic  of Kazakhstan on Communications' introduced an 
amendment to Article 4 of the Law of the Repub lic of Kazakhstan "On Natural Monopolies", which 
determined the spheres of natural monopolies.  The draft law stipulated that instead of "telecommunication services through local networks",  the activities within the sphere of natural 
monopolies extended to: 
- telecommunication services, when there was no other competing operator due to reasons 
of economic inexpediency or technical infeasibility; and 
- leasing and provision of access to cable channels and technological facilities for 
connecting telecommunications networks with the public telecommunications network.  
Question 40 
Paragraph 67: The list of "natural monopolies regul ated by the state should be included in the 
text of the Draft Working Party report, either here or elsewhere in the report. 
Answer: 
Natural monopolies, regardless of their ownership status, are listed in the Register based on the 
criteria that they were involved in activities relate d to the sphere of natural monopolies. The Register 
consisted of two parts: na tional and local.  The Agency develope d and maintained the national part of 
Register that included natural monopolies serving the market, which was not limited to one region 
(oblast), or a city of republican significance, or the capital.  Local branches of the Agency developed  WT/ACC/KAZ/50 
 Page 31 
 
 
 and maintained the local parts of the Register that included natural monopolies functioning within the 
territory  of one region (oblast), district, city, village  or any other local administrative-territorial units.  
The list of more than 700 natural monopolies included  into both the republican and local parts of the 
Register.  The Agency website www.antimonopoly. kz contains all relevant information. 
Question 41 Paragraph 68:  This text is clearly wrong in light of statements concerning differential oil 
transport fees and the provisions of Article V of the GATT 1994. 
Answer: 
The Order of the Chairperson of the Agency No. 248- ОD of 13 December 2002 established the Price 
List (tariffs) for services of CSC "KazTransOil" re lated to transportation of crude oil via major 
pipelines, according to which unified tariff rates app lied both for domestic consumption and export. In 
order to support production capacity of domestic oil refineries and slow down the growth of domestic 
prices on oil products, the decreasing coefficient of 0. 46 is applied for transportation of crude oil to 
Kazakh oil refineries.  
FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
Question 42 
Survey of Foreign Trade Regime (WT/ACC/KAZ/40), p. 13 and WT/ACC/SPEC/KAZ/8, 
paragraph 78.  Please confirm that WTO is one of the cases where it is necessary to adopt a law 
domestically in order to become applicable. 
Answer: 
In order to make WTO Agreements applicable in  Kazakhstan, the Government plans to bring its 
national legislation into conformity with key WTO multilateral agreements by introducing all 
necessary amendments into the existing laws of Kaza khstan by the date of accession.  Furthermore, 
the Government of Kazakhstan plans to ratify the Working Party report reflecting the commitment of 
Kazakhstan to respect the WTO Agreements and Kazakhstan's schedules on goods and services.   
Question 43 What are the administrative and judicial channe ls of appeal from administrative decisions 
made on WTO issues? 
Answer: 
Judicial authority in the Republic is exercised by me ans of civil, criminal, and other legislation within 
a unitary judicial system comprised of three levels.   
Legislation on civil proceedings establishes the pro cedure for court disputes in the field of civil, 
family, labour, and housing, administrative, financ ial, economic, land relations, relations on the use of 
natural resources and environmental protection and other legal relati ons.  Proceedings in such cases 
are conducted in courts of first instance, and also  through reviewing decisions of courts of first 
instance.  Proceedings on civil cases take place within two months from the date of receipt of the 
claim by the court.  In respect of certain other categories of civil cases, different periods may be 
established by the Law. WT/ACC/KAZ/50 
Page 32 
 
 
 The decisions of rayon (district), oblast (regional) an d other local courts made at first instance come 
into legal force after expiration of the term limited fo r submission of an appeal or protest, if they have 
not been appealed or protested.  Decisions of the Supreme Court taken at first instance come into legal 
force from the date of their adopti on.  Where a case is appealed or protested, the decision, if upheld, 
comes into legal force on the day the appellate court issues its decision. 
Review of judicial decisions is carried out by way of appeal procedure, or supervision procedure, and 
also where new facts come to light.  Court judge ments which had not come into force could be 
appealed. Parties to a case and other concerned persons  have the right to submit an appeal against the 
judgement of a court of first instance, other th an judgements of the Supreme Court.  The public 
prosecutor involved in a case has the right to lodge a protest.  The Republic's prosecutor-general and 
his deputies, Oblast public prosecutors and those equal to them and their deputies, Raion public 
prosecutors and those equal to them and their de puties within their competence have the right to 
appeal a court decision, irrespective of whether they participated in the hearing.  An appeal can also 
be made by a party who has not been involved in the case but whose rights and duties were affected by the decision.  Appeals and protests are consider ed by:  (i) the board for civil cases of Oblast and 
equivalent courts for judgements ma de by Raion and equivalent courts ; (ii) the board on civil cases of 
the Supreme Court for judgements made by Oblast c ourts and courts of firs t instance equivalent to 
them.  
Complaints and protests may be submitted within 15 days of rendering of the judgement in its final 
form with the court that rendered the decision, w ith a copy for each person involved in the case.  A 
court decision rendered following review of a case ma y be appealed and protested in accordance with 
the general procedure. 
During an appeal the court made a full scrutiny of th e legality and validity of the decision of the court 
of first instance.  The court of appeal can make ne w findings of facts within the limits of the claim and 
investigates new evidence which a party for valid reasons had no real  opportunity to adduce at first 
instance.  Appeals must be heard not later than one month from the date of their receipt by the court of 
first instance.  Rulings of the appellate court come into legal force on the date when they are adopted. 
Judgments of all Republic courts which have taken effect, except for decisions of the supervisory 
board of the Supreme Court, can be reviewed unde r the judicial supervision procedure where there 
were grounds as stipulated in the Civil Procedur al Code.  Review of decisions made by the 
supervisory board of the Supreme Court, and a second  review of the case by the supervisory board of 
the Supreme Court, is allowed in cases prescribed by law.  Decisions, rulings, decrees and orders 
which come into legal force can be appealed by the parties and other persons involved in the case and 
have the right to submit an appeal directly with  the court authorized to review the case under the 
supervision procedure.  A protest can be filed both at  [the court's] own motion and also by application 
of the parties or other persons involved in th e case and having the right to lodge an appeal. 
Supervisory complaints or protests can be submitte d within one year from the date when the court 
decision, ruling or decree comes into legal force.  Decrees of a court at the supervisory instance come 
into legal force at the moment they are adopted.  
Decisions, rulings and decrees which come into lega l force may be reconsidered in case new facts are 
discovered.  The grounds for reconsideration of a d ecision, ruling or decree due to involvement of 
new facts are as follows:  (i) fact s of significance for the case whic h are not known to the applicant; 
(ii) as established by a verdict which had taken eff ect: the deliberate perjury by a witness, deliberately 
false report by an expert, deliberately false translat ion, false documents or material evidence which 
resulted in the rendering of an unlawful or unsubsta ntiated court decision; (iii) as established by a 
verdict which had taken effect:  criminal acts of the parties, other persons involved in the case, or their 
representatives, or criminal acts by the judges committed during the hearing of the cases; 
(iv) repealing of a court decision, verdict, ruling or decree, or the decree of another body, which 
formed the basis of the given decision, ruling or decree.  WT/ACC/KAZ/50 
 Page 33 
 
 
 Legislation on administrative viola tions is intended to protect the ri ghts, freedoms and lawful interests 
of the person and the citizen, the sanitary and epid emiological welfare and health of the population, 
the environment, public morals, property, public order and safety, the established procedure for 
exercising state powers, and the rights and interests of organizations protected by law from 
administrative violations and also to prevent such violations.  Cases of administrative violations are 
considered within 15 days from the date of receipt by an authorized judge or a body of the protocol of 
administrative violation and other case materials.  Where applications are received from participants 
of a case on administrative violations or where additional clarification of the circumstances are necessary, the period for hearing su ch a case can be prolonged by the authorized judge or body, but 
not for more than one month. 
Cases on administrative violations, perpetration of which entailed administrative arrest or 
administrative expulsion from the Republic, are considered on the day of receipt of the protocol of administrative violations and other case materials,  and, in relation to the person subject to 
administrative detention, not later than 48 hours afte r the arrest.  The court or body can reach one of 
the following decisions on administrative violation case:   (i) imposition of fine; (ii) termination of the 
case; (iii) transfer of the case for hearing by a j udge or a body authori zed to impose for such 
administrative violation penalty of a different kind or amount, or also transfer of the case for hearing where a vehicle involved was registered (or a v essel, including small ones) in those cases set out by 
the Code of Administrative Violations; or (iv) en forcement of a decree imposing a fine.  Decisions on 
administrative violation cases which come into force can be re-considered in accordance with 
statutory procedure. 
Review of a court decision which worsens the position of a person held administ ratively liable, or of a 
person in relation to whom the administrative heari ng is terminated, can be made within one year 
from the date when the decree of the court or au thorized state body came into legal force.   
Submission of a petition or protest against a decree or  ruling which has taken legal effect suspends the 
execution of such decree or ruling.  Submission of a petition or protest against a warrant for 
administrative arrest issued by a judge do es not suspend the execution of such warrant. 
In response to a protest by the Prosecutor General or his deputies, a board of the Supreme Court is 
entitled to verify the lawfulness and grounds of a decision which has taken legal effect on 
administrative violation cases, and likewise of a ruli ng or decree on reviewing an appeal or a protest 
against a decree, and to review the decision reached. 
Question 44 Paragraph 78:  This section states "the ob ligations, which Kazakhstan would assume upon 
accession to the WTO, and which contradicted  to the provisions of other international 
agreements, would take effect in Kazakhstan only after incorporation of appropriate 
amendments to such international agreements or  after the expiry of their duration or their 
denunciation pursuant to the Presidential Decree "On the Procedure for Conclusion, Execution 
and Denunciation of International Agreements of  the Republic of Kazakhstan", and the Vienna 
Convention "On International Treaty Law" of 23 May 1969." 
Is a situation like this contemplated in the even  of Kazakhstan's accession to the WTO?  What 
conflicts with what existing agreements/t reaties does Kazakhstan anticipate with WTO 
accession? 
Answer: 
After WTO accession contradictions between oblig ations of Kazakhstan at WTO accession and 
international agreements in force with pa rticipation of Kazakhstan is not envisaged. WT/ACC/KAZ/50 
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 -  Authority of Sub-Central Governments 
Question 45 Paragraphs 79-81: This is a gen erally good text that needs sharpening, to address the following 
issues: 
What is the relationship of sub-central authorities to the government in the implementation of 
WTO provisions?  Do any sub-central authorities in Kazakhstan have the legal authority to make policy in any area covered by the WTO?  If so, how does Kazakhstan intend to ensure 
that any such policies undertaken by sub-central entities are consistent with WTO obligations? 
Answer: 
The state power is divided between central a nd regional governments in Kazakhstan.  Local 
governmental power is divided between representa tive bodies called Maslikhats and executive bodies 
called Akimats.  Each Oblast (including major c ities and the capital) has an Akim (appointed by the 
President at the recommendation of the Prime-Minister) and a Maslikhat.  Each major city has an Akim appointed by an Oblast Akim.  The deputies of  Maslikhats are elected to four-year terms on the 
basis of universal and equal suffrage by secret ballot. 
Government powers affecting foreign trade are devolved from national to local authorities in 
accordance with the following six general principles:  (i) relative autonomy to regulate region-specific 
economic relations; (ii) delineation of specific jurisdictional activities in accordance with the 
Constitution and the Law on Local Representative and Executive Bodies; (iii) reciprocal obligations 
among the different tiers of government to confor m business operations to requirements of social, 
environmental and moral standards; (iv) stat e support to specific sectors and regions and the 
promotion of inter-relations among local aut horities, management bodies and business bodies; 
(v) allocation of budget resources and regional prope rty within commercially sensitive margins; and 
(vi) inter-governmental relations wh ich promoted a unified approach to  issues affecting, inter alia, 
foreign trade. 
According to Article 4 of the Law "On Local Govern ment in the Republic of Kazakhstan" Maslikhats 
and Akimats are obliged not to adopt decisions in consistent with Kazakhstan's national policy and 
international commitments and obligations arising fro m it's membership in international agreements. 
For example, it was prohibited for Maslikhats a nd Akimats to make decisions which introduced 
barriers for creation and functioning of uniform labo ur, finance and capital markets, or hindered free 
exchange of goods and services within the country.  
Governmental powers affecting foreign trade are divided between national and local authorities in 
accordance with the following six principles:  (i) relative autonomy in the regulation of economic 
relations in specific regions; (ii) delineation of authority in accordance with  the Constitution and the 
Law "On Local Government in the Republic of Ka zakhstan"; (iii) reciprocal obligations among the 
different tiers of government to secure compliance of business operations with requirements of social, 
organizational and moral standards; (iv) internal  support of specific sectors and regions and the 
promotion of cooperation among local author ities, management bodies and business entities; 
(v) allocation of budget resources and regional prope rty taking into account market considerations; 
and (vi) cooperation between different tiers of govern ment to promote a unified approach to issues 
affecting, inter alia, foreign trade. 
Local governmental authorities do not have jurisdicti on or authority to establish regulations or taxes 
on goods and services in Kazakhstan independently of  the central authorities.  Where WTO provisions 
are not applied or are not applied throughout the en tire territory of Kazakhstan, the central authorities 
will eliminate or nullify measures taken by local governmental authorities in Kazakhstan that are  WT/ACC/KAZ/50 
 Page 35 
 
 
 inconsistent with WTO provisions.  Only the higher  legislative body is competent to impose taxes, 
and only the central executive bodies have the authority to make relevant decisions.  
Question 46 
When a situation involving a conflict between domestic law and WTO is brought to 
Kazakhstan's attention after accession, will Ka zakhstan enforce WTO provisions without the 
need for further recourse to the courts? 
Answer: 
According to Article 4 of the Constitution internat ional agreements ratifie d by the Republic have 
priority over its laws and are applied directly, ex cept where it follows from an international agreement 
that its application needs the enactment of a law, some members of the Working Party requested that 
the representative of Kazakhstan confirm that oblig ations under the WTO are one of the cases where 
it is necessary to enact a  domestic law in order to become applicable. 
The Presidential Decree, having the force of law, "On the Procedure for Conclusion, Implementation 
and Denouncing of International Ag reements of the Republic of K azakhstan" of 12 December 1995 
No. 2679, Article 11 provides that international agre ements of the Republic of Kazakhstan are subject 
to ratification where their implementation demands am endments to current laws or enactment of new 
ones or the establishment of rules different from those set out by the laws of Kazakhstan.  
POLICIES AFFECTING TRADE IN GOODS 
A. IMPORT REGULATION - Trading rights (the right to import and export) 
Question 47 
The situation depicted in the first sentence of  paragraph 82 is unclear.  Why should any 
enterprise accorded "natural monopoly" st atus under legislation whose normal business 
involves the importation or exportation of a particular product not be considered a state-
trading enterprise within the meaning of GATT Article XVII and the Understanding on that 
Article?  Could Kazakhstan please provide a list of all "natural monopoly" enterprises involved 
in the importation or exportation of goods? 
Answer: 
The Republic of Kazakhstan will analyze the ente rprises which activity may be covered by the 
Article XVII of the GATT and send the notification on  existing in Kazakhstan State Trade Enterprises 
to the WTO Secretariat. 
Question 48 Paragraph 83:  If a firm or enterprise is registered in Kazakhstan, does that make it a 
"resident" for the purposes of preferential trade with other CIS countries?  If not, please 
distinguish between legal personhood in Kazakhstan through registration and being a "resident." WT/ACC/KAZ/50 
Page 36 
 
 
 Answer: 
In cases when a ratified international agreement, to  which Kazakhstan is a party, does not contain the 
definition of the term "resident" for the purposes of  a given agreement, a "residency" status is 
regulated by the following provisions of the le gislation of the Republic of Kazakhstan:  
- According to Article 1 of the Law "On Stat e and Government Guaranteed Borrowing and 
Debt" of 2 August 1999 and Article 1-1 of the Law "On Currency Regulation", only legal 
entities, which were established  in accordance with the legislation of Kazakhstan, as well 
as their branches and representative offices lo cated within and outside Kazakhstan are 
considered to be resident le gal entities of Kazakhstan; and 
- According to the Tax Code of Kazakhstan, the legal entities, which were established in 
accordance with the legislation of Kazakhs tan, and/or other legal entities, the 
management control over which was undertaken  within the territory of Kazakhstan, are 
considered to be residents of Kazakhstan.  The management control is recognized to take 
place in Kazakhstan, when the main control and strategic commercial decision making essential for business performance of the given legal entity is carried out within its 
territory. 
Question 49 
Paragraph 84:  Please indicate the purpose of these fees and how the fees described here relate 
to the cost of the registration process.  Whe re do the revenues from these fees go, e.g., into 
general revenues?  Why is the fee to register legal persons, their branches and representative 
offices, so much more than to register a small business? 
Answer: 
Pursuant to Government Resolution No. 1660 of  19 December 2001 "On establishing fees for state 
registration of legal entities", the registration fee for:   
- state-funded institutions, public companies and cooperatives of c ondominium owners is 
one monthly evaluation index (US$ 6.74 or € 5.53); 
- legal persons, their branches and representa tive offices is twenty monthly evaluation 
indexes (US$ 134.83  or € 10.54); 
- children and youth public associations, their br anches and representative offices is two 
monthly evaluation indexes (US$ 13.48 or € 11.05); and 
- legal entities in the form of small businesses,  their branches and representative offices is 
five monthly evaluation indexes, effective on the date of payment (US$ 33.7 or € 27.63). 
The re-registration fee for legal entities, their branches and representative offices is equal to 
50 per cent of their corresponding registration fees.  The fee for issuing a duplicate of state registration (or re-registration) of legal entities, th eir branches and representative offices is equal to 
25 per cent of their corresponding registration fees.  The fee for state registration of discontinuation of 
legal entities, their branches and representative offi ces, is monthly evaluation index, effective on the 
date of payment. 
In 2003 the Government of Kazakhstan adopted the State Program for Small Business Support and 
Development in the Republic of Kazakhstan. Within  the framework of this program, the Government 
simplified state regulation procedures related to small businesses and developed measures in support 
of small businesses, including less registration fees for their registration. According to the Law "On 
State Support to Small Business", the definition of small businesses includes legal entities and 
individuals, engaged in business activities without establishing a legal entity, whose annual average  WT/ACC/KAZ/50 
 Page 37 
 
 
 staff number does not exceed 50 personnel, and annual  average value of total assets is no more than 
60,000 Monthly Calculated Index  (approximately, US $ 404.489 or € 110.543 as of 6 June 2004).   
Question 50 
Paragraphs 82-85:  We need a more focuse d presentation on the relationship of these 
requirements to the right to import and to export.   
Please describe the registration requirements for a person or firm that wishes to engage in 
international trade.  Are there any additional  requirements or fees not applied to trade in 
domestic goods? 
Is it required for a firm to be invested in Ka zakhstan to be registered to conduct import or 
export trade? 
Answer: 
Article 3 of the Law  No.2198 of 17 April 19 95 "On State Registration of Legal Entities and 
Registration of Branches and Representative Offices", a ll legal entities, established in the Republic of 
Kazakhstan, irrespective of the purposes of their est ablishment and the types of performed activities, 
are subject to state registration. Branches and re presentative offices of legal entities, located in the 
Republic of Kazakhstan, are subject to registration for recording purposes only.  
The state registration of legal entities includes:  (i) checking the Charter and other documents 
submitted to state registration for compliance with the legislation of the Republic of Kazakhstan; 
(ii) issuing a state registration certificate with assignment of a registration number; and (iii) entering the data on a legal entity into a Single State Register. 
According to Article 19 of the Civil Code, individua ls are entitled to be engaged in entrepreneurial 
activities without forming a legal entity, unless otherw ise provided by this Code and other rules and 
regulations. According to the Law of the Repub lic of Kazakhstan "On State Support to Small 
Businesses" of 19 June 1997 No. 131, individuals not establishing legal entities must be deemed as 
small businesses. State registration of individual entr epreneurs is performed without prior agreement, 
and represent a registration as an individual entrepre neur in a local tax agency, at the place of the 
citizen's residence. The state registration is manda tory for individual entrepreneurs complying with 
one of the following conditions:  (i) they hired wo rkers on a permanent basis;  (ii) aggregate annual 
income of their business, assessed in  accordance with tax legislation,  exceeded the threshold of tax-
free aggregate annual income for individuals, as set by  the legislation of the Republic of Kazakhstan. 
The above-mentioned individual entrepreneurs are ba nned to operate without state registration, unless 
otherwise provided by the Tax Code. 
Question 51 
The requirement for re-registration and duplicate registration raise concerns because they are 
ad valorem  fees and appear to be extra burdensome for foreign businesses/entities.  What are 
"evaluation indexes" on which these fees are based?  
Answer: 
The Monthly Calculation Index (MCI) is an indicat or established annually in the state budget for the 
purpose of calculation of pension payments, benef its, other social payments, tax payments and 
penalties. MCI is established at th e rate of 919 tenge in the chapter 12 of the Law "On the Republican 
Budget for 2004" of 5 December 2003 No. 505-II.  MC I can be converted to US$ and € at a rate 
established by the National Bank on the date of paymen t to be made in accordance with the relevant WT/ACC/KAZ/50 
Page 38 
 
 
 legislation. For example, on 6 June 2004 the National Bank's rate is KZT 136.32 per US$ and 
KZT 166.27 per €; therefore 1 MCI = US$ 6.74 or € 5.53.     
- Customs Tariff 
Question 52 
WT/ACC/SPEC/KAZ/8, paragraph 91:  Please provide further clarification of the statement 
"The rates of customs duties applicable to the products of unknown origin amounted to double 
MFN rates " in terms of the necessity to prove origin. 
Answer: 
Import tariff rates are established by the amende d Government Resolution "On Rates of Customs 
Duties Levied on the Imported Goods" dated 14 No vember 1996 No. 1389, according to which the 
rates of customs duties applicable to the produc ts of unknown origin amount to double MFN rates. 
This measure is aimed to ensure submission by firms of evidence on the country of origin of imported 
goods.  As a result, this measure helps Kazakhstan in complying with its obligations arising from 
international agreements, to wh ich the country is a party, including free economic zones and 
preferential trade regimes. 
Question 53 WT/ACC/SPEC/KAZ/8, paragraph 87:  Does Kazakhstan plan to move to HS 2002 ? 
Answer: 
In accordance with the Agreement "On Common Ta riff Nomenclature of Foreign Economic Activity 
of the EurAsEC" approved by the Government Resolution of 11 June 2003 No. 567, as of 
1 January 2004, Kazakhstan had moved from the 9-di git to 10-digit tariff nomenclature, which is 
based on the Harmonized System for description a nd coding of goods of 20 02 (HS 2002) developed 
by the World Customs Organization.   
The import tariff consists of 11,082 tariff lines. The significant majority of tariff items (9,786 
positions or 88.3 per cent) are subject to ad valorem  tariffs; 1,128 items (10.2 per cent) are subject to 
compound (or mixed) rates; and 168 items (1 .5 per cent) to specific rates.  The ad valorem  import 
duty rates range from zero to 30 per cent, excep t for two categories related to ethyl alcohol 
(HS 2207 10 000 and 2207 20 000) for which tariff rate is established at 100 per cent.   
- Other duties and charges levied on im ports but not on domestic production 
Question 54 The title of this section should be "other duties a nd charges".  We expect that Kazakhstan will 
not apply ODC's to imports and that this will be bound in Kazakhstan's GATT Schedule. 
Answer: 
The title of this section has been changed. 
The Republic of Kazakhstan does not apply any ot her duties and levies on imports apart from the 
existing import customs duties approved by the Government Resolution of 14 November 1997 
No. 1389 and fees charged for services.  WT/ACC/KAZ/50 
 Page 39 
 
 
 -  Tariff rate quotas, tariff exemptions 
Question 55 Regarding paragraph 92, we ask that lists of  exempted products to be supplied for all 
preferential trade agreements in force. 
Answer: 
Under bilateral agreements c oncluded between Kazakhstan and the CIS countries (except for 
Turkmenistan), the products imported to Kazakhsta n were exempt from customs duties, except for 
instances specifically excluded from the free trad e regime.  These exceptions applied to certain 
products commonly agreed upon by the CIS countries and were stipulated in the Protocol to the 
Agreement. Exceptions from the fr ee trade regime applied toward certain products from Azerbaijan, 
Armenia, Georgia, Moldova, Uzbekistan, and Ukrain e.  For example, the list of imported products in 
Kazakhstan from the above-mentioned CIS countries,  which were not covered by the preferential 
treatment regime, included salmon and sturgeon, cav iar; fruit juices; mineral water and water with 
gas; alcohol and tobacco; certain types of clothes fro m natural leisure, clothes for children, footwear; 
bijouterie, cars, etc. 
Question 56 We seek the inclusion of a statement that ta riff rate quotas are no t applied and are not 
envisaged. 
Answer: 
The Law of the Republic of Kazakhstan "On Regula tion of Trade Activity" of 12 April 2004 No. 544 
provided a general legal framework for introduction of tariff rate quotas (TRQs) in Kazakhstan.  The 
Government of Kazakhstan planne d to apply tariff rate quotas toward a limited number of sensitive 
agricultural products with the purpose of elimination "peak rates" in the tariff commitments of the 
Republic of Kazakhstan and to increase market access opportunities for foreign exporters through 
allocation of import quotas.  The Government of th e Republic of Kazakhstan was committed to apply 
the most transparent methods of administration of TRQs by combining "the first come, first serve" 
method with licensing procedure.       
Question 57 
What is Kazakhstan's legal authority to apply ta riff rate quotas?  What measures may "arise" 
from the Customs Union agreement?  Are any such measures currently in effect? 
Answer: 
The Law of the Republic of Kazakhstan "On Regula tion of Trade Activity" of 12 April 2004 No. 544 
provided a general legal framework for introduction of tariff rate quotas (TRQs) in Kazakhstan. The 
Government of Kazakhstan planne d to apply tariff rate quotas toward a limited number of sensitive 
agricultural products with the purpose of elimination "peak rates" in the tariff commitments of the 
Republic of Kazakhstan and to increase market access opportunities for foreign exporters through 
allocation of import quotas. The Government is co mmitted to apply the most transparent methods of 
administration of TRQs by combining "the first come, first serve" method with licensing procedure.       WT/ACC/KAZ/50 
Page 40 
 
 
 -  Fees and charges for services rendered 
Question 58 Questions and replies (WT/ACC/KAZ/37/Add. 3), Question 10, p. 10:  Whereas information 
contained in this document confirms the maintenance of the ad valorem  character of the 
customs clearance fee, the WT/ACC/SPEC/KAZ/ 8 document, paragraphs 97 ff, no longer refer 
to the maintenance of the ad valorem  character.  We understand this to mean that it will be 
abolished and welcome this development.  We wo uld, however, seek clear confirmation that our 
understanding is correct.   
Answer: 
In order to bring the customs legislation of the country into conformity with WTO norms and rules, a 
new Customs Code was enacted on 1 May 2003.  Article 293 of the Customs Code 2003 stipulates 
that customs fees can be levied for rendering the following types of services:  (i) customs clearance; 
(ii) customs escort of goods; and (iii) servi ces provided by warehouses owned by the customs 
authority.  Fees are based on - the cost of services rendered in conformity with the Article VIII of 
GATT.  Revenues generated by fees for customs ser vices are remitted to the general revenues of the 
State budget.  
The customs clearance of goods and vehicles includ es: registration of cargo customs declaration; 
control over application of tariff and non-tariff re gulations; control over compliance of location of 
goods with the customs regimes requirements; administration of customs fees; determination of customs value; classification of goods in case of ne cessity of customs examination and customs expert 
evaluation.  
In accordance with the Government Resolution "On Adoption of Rates of Customs Fees, Charges and 
Payments Levied by Customs Bodies" of 7 July 20 03 No. 669, the rates of customs fees are as the 
following:  
- in case of customs clearance of goods and ve hicles transported across the customs border 
by natural and juridical persons: € 50 for th e original Cargo Customs Declaration (CCD) 
and € 20 for each additional CCD page; 
- in case of customs escort of goods: 2 MCI (US$ 13.5  or € 11.1) for the distance up to 
50 km; 4 MCI (US$ 26.9 or € 22.1) for the distance between 50 and 100 km; 7 MCI (US$ 47.2 or 38,7 Euro) for the distance between 100 and 200 km; 14 MCI (US$ 94.4  or 
€ 77.4) for the distance between 200 and 400 km; 21 MCI (US$ 141.57 or € 116) for the 
distance between 400 and 600 km; 29 MCI (US$ 195.5 or € 160.3) for the distance 
between 600 and 800 km: 36 MCI (US$ 242.7 or € 198.9) for the distance between 800 and 1,000 km; 54 MCI (US$ 364 or € 298.5) for the distance between 1,000 and 1,500 km; 72 MCI (US$ 485.4 or € 398) for the distance between 1,500 and 2,000 km; and 89 MCI (US$ 600 or € 492) for the distance above 2,000 km.  
Question 59 WT/ACC/SPEC/KAZ/8, paragraph 97-99:  As concerns the charges for customs escorts of 
goods in transit, the calculations appear complex in nature and, to some extent, excessive, for 
example, as concerns the need to cover the sa laries of customs officers and related elements. 
Answer:  
The Republic of Kazakhstan noted that the Republic of  Kazakhstan plans to bring this procedure into 
full conformity with the Article VIII of GATT by the time of its accession.    WT/ACC/KAZ/50 
 Page 41 
 
 
 Question 60 
Paragraph 97:  Is it possible to provide a list of customs fees and to confirm that these fees are 
the same for all imported products?  
Answer: 
In accordance with the Government Resolution "On Adoption of Rates of Customs Fees, Charges and 
Payments Levied by Customs Bodies" of 7 July 2003 No. 669, the rates of customs fees are as 
following:  
- in case of customs clearance of goods and ve hicles transported across the customs border 
by natural and juridical persons: € 50 for th e original Cargo Customs Declaration (CCD) 
and € 20 for each additional CCD page; 
- in case of customs escort of goods: 2 MCI (US$  13.5 or € 11.1) for the distance up to 
50 km; 4 MCI (US$ 26.9 or € 22.1) for the distance between 50 and 100 km; 7 MCI (US$ 47.2 or € 38.7) for the distance between 100 and 200 km; 14 MCI (US$ 94.4 or € 77.4) for the distance between 200 and 400 km; 21 MCI (US$ 141.57 or € 116) for the distance between 400 and 600 km; 29 MCI (US$ 195.5 or € 160.3) for the distance 
between 600 and 800 km: 36 MCI (US$ 242.7 or € 198.9) for the distance between 800 
and 1,000 km; 54 MCI (US$ 364 or € 298.5) for the distance between 1,000 and 1,500 km; 72 MCI (US$ 485.4 or € 398) for the distance between 1,500 and 2,000 km; and 89 MCI (US$ 600 or € 492) for the distance above 2,000 km.  
Question 61 
Paragraph 98:  What is the purpose for the fee "for customs clearance of goods and vehicles 
that had been moved across customs border by  natural persons and legal entities"?   
Answer: 
The fee is charged to recover the cost of the cu stoms clearance procedure for goods and vehicles, and 
used as one of the key revenue sources for the national budget.  
Question 62 Paragraph 99:  Please explain the fees based on  "monthly calculation indices"?  Please provide 
information on the current US$ or € value of monthly calculation indices. 
Answer: 
The Government Resolution "On Adoption of Cust oms Charges, Fees and Payments Levied by 
Customs Bodies" of 7 July 2003  No. 669 sets the fee for  customs escort of goods: 
- for the distance up to 50 km - 2 MCI (US$ 13.5 or € 11.1 as of 6 June 2004); 
- for the distance between 50 and 100 km – 4 MCI (US$ 26.9 or € 22.1 as of 6 June 2004); 
- for the distance between 100 and 200 km - 7 MC I (US$ 47.2 or € 38.7 as of 6 June 2004); 
- for the distance between 200 and 400 km - 14 MCI (US$ 94.4 or € 77.4 as of 
6 June 2004);  
- for the distance between 400 and 600 km - 21 MCI (US$ 141.57 or € 116 as of 
6 June 2004);  
- for the distance between 600 and 800 km - 29 MCI (US$ 195.5 or € 160.3 as of 
6 June 2004);  WT/ACC/KAZ/50 
Page 42 
 
 
 - for the distance between 800 and 1,000 km - 36 MCI (US$ 242.7 or € 198.9 as of 
6 June 2004);  
- for the distance between 1,000 and 1,500 km - 54 MCI (US$ 364 or € 298.5 as of 
6 June 2004);  
- for the distance between 1,500 and 2,000 km - 72 MCI (US$ 485.4 or € 398 as of 
6 June 2004); and 
- for the distance above 2,000 km -  89 MCI (US$ 600 or € 492 as of 6 June 2004).  
The Monthly Calculation Index (MCI) is established at  the rate of 919 tenge in the chapter 12 of the 
Law "On the Republican Budget for 2004" of 5 Dece mber 2003 No. 505-II.  MCI is converted to US$ 
and € at a rate established by the National Bank on th e date of payment to be made in accordance with 
the relevant legislation. For example, on 6 J une 2004 the National Bank's rate was KZT 136.32 per 
US$1 and KZT 166.27 per € 1; therefore 1 MCI equals US$ 6.74 or € 5.53.     
- Application of internal taxes to imports 
Question 63 Paragraph 100: The legal basis for Kazakhstan's taxation of goods should be provided. 
Answer: 
The Tax Code of the Republic of Kazakhstan is used  as a legal framework for application of internal 
taxes on imported goods. 
-  Value Added Tax 
Question 64 
WT/ACC/SPEC/KAZ/8, paragraph 101:  We understand that a different VAT regime is 
applicable in Kazakhstan's legislation for certai n products (natural gas, condense, oil and 
kerosene) imported from Russia. Kazakhstan states that these products are subject to derogation from the general "destination" principle. 
It would be necessary to clarify: 
- whether these products are subject to VAT at all, and, if so,  
- whether they are subject to an "ori gin"-based taxation, and, if so, 
- whether such principle applies to these products regardless of their origin or 
whether this is limited to those imported from Russia. 
Answer: 
The VAT rate is equal to 15 per cen t and applied to the volume of ta xable turnover.  A taxable import 
value includes the customs value of imported goods , determined in accordance with the customs 
legislation, as well as amounts of taxes and other ma ndatory payments to the budget levied on imports 
of goods to the country, except for VAT.   
Imported goods from all CIS and EurAzEc Customs Union countries are subject for VAT payable 
based on the country of destination principle.  The "destination" principle is applied to all imported 
products, except for natural gas, oil a nd gas condensate imported from Russia.   WT/ACC/KAZ/50 
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 In accordance with the Agreemen t between the Governments of Kazakhstan and the Russian 
Federation "On Principles of Levying Indirect Taxes in Mutual Trade", natural gas, oil and natural gas 
condensate are subject to VAT payable based on the country of origin principle.  
This principle meant that the above mentioned goods are subject to VAT payable upon their export in 
accordance with the national legislation of their count ry of origin.  The VAT rate applied upon their 
export from Russia is 18 per cent, while exported fr om Kazakhstan-15 per cent.  In accordance with 
the Government Resolution "On the Procedures for Offsetting Value Added Tax Payable by Supplies 
of Goods Imported into the Repub lic of Kazakhstan in Relation to  which Different Procedures for 
Taxation of Exported and Importe d Goods are Applied as per an International Agreement" of 
22 May 2002 No. 556, VAT payable by suppliers of natural gas, oil and natural gas condensate 
imported from Russia to Kazakhstan must be subject  to offsetting. Offsetting is performed on the 
basis of an invoice provided by a supplier from th e Russian Federation with the VAT amount singled 
out in the amount of tax effective within Russia as of  the date of shipment of goods from the Russian 
Federation.  
In case a VAT payer has both taxable and non-taxa ble turnovers, including VAT exempt turnover, the 
VAT payable to suppliers from the Russian Federati on must be offset according to the procedures 
provided in Article 239 of the Tax Code. 
The country of origin principle applies only to the above goods imported from Russia. The following goods are subject to VAT exemption:   
- imported national currency, a nd foreign currencies (except for cases where currencies are 
imported for numismatic purposes), and securities;  
- goods, imported by natural persons within norms for duty-free import, set by the 
Government of the Republic of Kazakhstan;  
- goods, except for excisable goods, imported as a humanitarian aid in accordance with 
procedures, set by the Government of the Republic of Kazakhstan;  
- goods, except for excisable goods, imported as charity on the initiative of the State, 
national governments, international organi zations, including for purposes of technical 
assistance;  
- goods imported for use by foreign diplomatic  representative offices and offices of the 
same status, as well as for personal use by foreign diplomats and general staff of 
representative offices, including family members, residing with them; exempted from 
excises under international agreements to which Kazakhstan was party;  
- imported goods, subject to declaration in accordance with the customs legislation of 
Kazakhstan, under customs treatments providing for tax exemptions;  
- imports of drugs, including  me dical substances; medical (veterinary) products, including 
prosthetic appliances,  devices for the dea f-blind, medical and veterinary equipment; 
materials and components required for producti on of drugs and diabe tic products, medical 
(veterinary) products, including prosthetic  appliances, and medical (veterinary) 
equipment.  The list of products listed in this  Sub-Paragraph had to be approved by the 
Government;  
- imports of mail stamps (except for imports for collection purposes);  
- imports of raw materials for production of paper currency perfor med by the National 
Bank of the Republic of Kazakhstan a nd by its subordinate bodies;  and 
-
 goods, imported under grants, provided by states, government and international 
organizations.    WT/ACC/KAZ/50 
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 Question 65 
Paragraph 102: Concerning application of the VAT to imports:  Please clarify the taxable base 
for application of the VAT to imports. 
Answer: 
The VAT rate is equal to 15 per cen t and applied to the volume of ta xable turnover.  A taxable import 
value includes the customs value of imported goods , determined in accordance with the customs 
legislation, as well as amounts of taxes and other mandatory payments to the budget effected for 
imports of goods to the country, except for VAT.   
Question 66 
Please clarify the application of the VAT to imports from other Customs Union countries. 
Answer: 
The imported goods from all CIS and EurAsEC Cu stoms Union countries are subject for VAT 
payable based on the country of dest ination principle.  The "destination" principle is applied to all 
imported products, except for natural gas, o il and gas condensate imported from Russia.  
-  Excise Taxes 
Question 67 
Survey of Foreign Trade Regime (WT/ACC/KAZ/40), p. 18-21:  WT/ACC/SPEC/KAZ/8, 
paragraph 104 - Please provide further information on the planned stage-by-stage unification (by 2006) of excise taxes for locally pro duced and imported goods in order to end 
discrimination.  Would Kazakhstan be ready  to consider speeding up this process? 
Answer: 
In order to ensure stage-by-stage unification of the excise tax rates applied to domestic and imported 
goods, the Government adopted Resolutions "On Amen dments to the Resolution of the Government 
of the Republic of Kazakhstan No137 dated 28 Jan uary 2000" of 26 November 2002 No. 1257 and 
"On Amendments to the Resolution of the Governme nt of the Republic of Kazakhstan No. 137 dated 
28 January 2000" of 20 February 2003 No. 182.  Th ese legal documents provided increase in excise 
tax rates applied to domestically produced goods as follows: 
- per 1 litre of vodka- from 60 up to 100 tenge; 
- per 1,000 filter tripped tobacco products- from 140 up to 180 tenge; 
- per 1,000 tobacco products without filter- from 95 up to 100 tenge; and 
- per 1 litre of beer- from 6 up to 7 tenge. 
The Sectoral Program for State Regulation of Pr oduction and Turnover of Ethyl Spirit and Alcohol 
Products for 2004-2006 had been developed in orde r to improve the tax base and to introduce a 
system of control of the turnover of alcohol pr oducts using control stamps with cryptographic 
identification.  The Government Resolution "On Ame ndments to the Resolution of the Government of 
the Republic of Kazakhstan No137 dated 28 January 2000" of 27 February 2004 No. 241 established 
the excise tax rates based on the percentage  of the waterless (100 per cent) spirit.   WT/ACC/KAZ/50 
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 Excisable goods imported by natural persons within limits set by the Government of the Republic of 
Kazakhstan are exempted from excises.  In addition,  imports of the following goods are exempted 
from excises:  
- Excisable goods required for operation of vehicles, involved in international 
transportation, en route and in the intermediate locations, as well as excisable goods, 
purchased abroad for repairs of damages cau sed by a road accident (breakdown);    
- Goods damaged prior to being transported acr oss the customs border of the Republic of 
Kazakhstan and rendered non-usable  as products and materials;   
- Goods imported for use by foreign diploma tic representative offices and offices of the 
same status, as well as for personal use by foreign diplomats and general staff of 
representative offices, including family members, residing with them; exempted from excises under international agreements to wh ich the Republic of Kazakhstan is party; 
- Goods, transported across the customs border of the Republic of Kazakhstan, exempted 
under customs treatment set by the customs le gislation of the Republic of Kazakhstan, 
excluding for the "Issue of goods for free use"; and 
- Alcohol containing products used in medicine (excluding balms) in containers of no more 
than 0.1 litre and registered in accordance with  the requirements set out in the legislative 
acts of Kazakhstan.    
The measures being undertaken currently by the Kazakh government planned to full unification of 
excise tax rates applied to domestically produced and imported goods by the date of Kazakhstan's 
accession to the WTO. 
Question 68 
Paragraph 104:  Please confirm that the phase ou t of the discriminatory application of excise 
taxes is included in law and cite the law. 
Answer: 
For a stage-by-stage unification of the excise tax rates applied to domestic  and imported goods, the 
Government adopted Resolutions "On Amendments to the Resolution of the Government of the 
Republic of Kazakhstan No. 137 da ted January 28, 2000" of 26 November 2002 No. 1257 and "On 
Amendments to the Resolution of the Government  of the Republic of Kazakhstan No. 137 dated 
28 January 2000" of 20 February 2003 No. 182.  Th ese legal documents provide increase in excise tax 
rates applied to domestically produced goods as follows: 
- per 1 litre of vodka- from 60 up to 100 tenge; 
- per 1000 filter tripped tobacco products- from 140 up to 180 tenge; 
- per 1000 tobacco products without f ilter- from 95 up to 100 tenge; and 
- per 1 litre of beer- from 6 up to 7 tenge. 
The Government Resolution "On Amendments to th e Resolution of the Government of the Republic 
of Kazakhstan No. 137 dated 28 Ja nuary 2000" of 27 February 2004 No. 241 established the excise 
tax rates based on the percentage of the waterless (100 per cent) spirit.  
Question 69 
According to paragraph 104, the unification of excise rates will not be completed until 
1 January 2006, which implies a transitional prob lem if accession is envisaged before this date. WT/ACC/KAZ/50 
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 Answer: 
The measures being undertaken currently by Govern ment of the Republic of Kazakhstan envisaged to 
full unification of excise tax rates applied to domestic ally produced and imported goods by the date of 
Kazakhstan's accession to the WTO.  
Question 70 Paragraph 105:  The table of excise rates should  be included in the Draft Working Party report. 
Answer: 
The rates of excise taxes on goods of domestic  production and imported goods are included in 
Annex 4. 
Question 71 Revision of the excise tax in Kazakhstan should be complete at the time of accession to WTO. 
Answer: 
Excises levied on domestic goods and goods imported to  the Republic of Kazakhstan are planned to 
be harmonized by 1 January 2006. 
- Quantitative import restrictions, including prohibitions, quotas and licensing systems   
Question 72 
Questions and replies (WT/ACC/KAZ/37/Add. 3) Question 12, p. 11: - Survey of Foreign Trade 
Regime (WT/ACC/KAZ/40), p. 22:  WT/ACC/SPEC/ KAZ/8, paragraphs 107 ff:  Please provide 
further details on the steps taken toward th e elimination of the 20 per cent restriction on 
imports of alcohol by the time of accession. 
Answer: 
In order to bring the practice of application of import quota to imported alcohol products into full 
conformity with the Article XI of the GATT, th e Government adopted on 17 June 2004 the Resolution 
"On Introduction of Amendments and Addictions to the Resoluti on of the Government of the 
Republic of Kazakhstan dated 27 June 1997 No. 1031".  In accordance with the Resolution, the 
practice of application of quantitative restriction on  import of alcoholic production is abolished as of 
17 June 2004.   
Question 73 
Paragraph 108:  Please explain the reason for the quota on grinding spheres and how it is 
administered. 
Answer: 
By the Government Resolution No. 1243 "On Intro duction of Restrictions of Import and Export of 
Individual Goods" of 5 December 1998, the quota was set up in the size of 3,000 tons for import of grinding and forged spheres (HS Item code –7325 91 000, 7325 99, 7325 99 990, 7326 11 000, 7326 
19, 7326 19 100, 7326 19 900).  Introduction of th e given temporary measure was caused by the time 
needed for adjustment of production capacity of domes tic enterprises to the si gnificant increase in the  WT/ACC/KAZ/50 
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 volume of import of grinding and forged spheres from foreign countries. The application of import 
quota for grinding and forged spheres discontinued as of 1 January 2003. 
Question 74 
Paragraph 109:  Has Kazakhstan developed legisl ation for the removal of the quantitative 
limitation on the import of alcohol?  We woul d like to see a specific proposal from Kazakhstan 
to remove this restriction prior to accession.  
Please provide an exhaustive list of products currently under quota for any reason, indicating 
the legal basis for the measure. 
Answer: 
Under the Resolution of the Government No. 1031 of 27 June 1997 "On Licensing of Import of Ethyl 
Alcohol and Alcoholic Products (Excluding Beer) in the Republic of Kazakhstan", the share of 
imported ethyl alcohol and alcoholic products (exc luding beer) should not exceed 20 per cent of the 
annual volume of their production in the customs territory of Kazakhstan.  This measure was 
introduced to regulate the increased imports flow, en sure collection of all tax receipts to the budget, 
and protect the rights of domestic producers and consumers.   
In order to bring the practice of application of import quota to imported alcohol products into full 
conformity with the Article XI of the GATT, th e Government adopted on 17 June 2004 the Resolution 
"On Introduction of Amendments a nd Addenda to the Resolution of the Government of the Republic 
of Kazakhstan dated 27 June 1997 No. 1031".  In accordance with th e Resolution, the practice of 
application of quantitative restriction on impor t of alcoholic production was abolished as of 
17 June 2004.   
Question 75 
We expect that Kazakhstan will remove all qua ntitative restrictions prior to accession, and 
observe WTO provisions concerning th eir application in the future. 
Answer: 
After WTO accession Kazakhstan will not introduc e import quotas, except for emergency reasons 
stipulated in the Article XIX of GATT and WTO Agreement on Safeguards. 
Question 76 
Kazakhstan should address the request for informat ion on how it intends to bring its import 
licensing fees into conformity with  Article VIII of the GATT 1994.   
Answer: 
In order to bring the customs legislation of the country into conformity with WTO norms and rules, a 
new Customs Code was enacted on 1 May 2003.  Article 293 of the Customs Code 2003 stipulates 
that customs fees are levied for rendering the fo llowing types of services:  (i) customs clearance; 
(ii) customs escort of goods; and (iii) services provided by warehouses owned by customs authority.  
Fees are based on the cost of services rendered in conformity with the Article VIII of GATT.  
Revenues generated by fees for customs services are remitted to the general revenues of the State 
budget.  WT/ACC/KAZ/50 
Page 48 
 
 
 Licensing fee is determined based on the actual co st of services rendered and does not represent an 
indirect protection to domestic products or a ta xation of imports or exports for fiscal purposes. 
Therefore, the licensing fees applied by Kazakhstan do not contradict to Article VIII of GATT.   
Question 77 
Paragraph 112-113:  A chart listing goods subj ect to import licensing , by HS number, the 
justification for the measure, and information on  the Ministry that administered the license and 
the procedures should be provided in this section.   
Answer: 
List of goods, subject to import licensing and th e Rules on export and import licensing of goods and 
services are approved by Government Resolution No. 1037 "On licensing export and import of goods 
and services in the Republic of Kazakhstan" of 30 June 1997.  The licensing system of Kazakhstan 
regulates import of a limited number of goods to  ensure protection of human life and health, 
environmental protection, protection of public or der, as well as for reasons of national security.  
Import licensing extends to chemical products for pl ant protection; veterinary drugs and equipment; 
narcotic, psychotropic products, a nd precursors; poisons; civil and in-service firearms and cartridges, 
explosives, detonation, and pyrotechnical devi ces; industrial waste; x-ray units, devices and 
equipment using radioactive substances and isot opes; raw opium; wine; ethyl alcohol; complex 
alcoholic half-finished products, excluding perfume based products, used in beverages; white spirit; 
other light distillates, average distillates for specific processing and chemical transformations. 
The list of goods subject to import licensing by HS number along with the justification for each 
measure is provided in Annex 5.   
Import licensing of ethyl spirit and alcoholic bevera ges is regulated by the Rules on import licensing 
of ethyl spirit and alcoholic beverages, which is approved by the Government Resolution "On 
licensing of import of ethyl spirit and alcoholic beverages in the Republic of Kazakhstan" of 
27 June 1997 No. 1031.  The Ministry of Finan ce issued import/export licenses for ethyl spirit and 
alcoholic beverages. 
Licensing procedures for all goods, including ethyl spirit and alcohol beverages, are provided in 
Annex 1. 
The following documents are necessary to obtain a li cense:  (i) an application, (ii) a document 
confirming the payment of license fee, (iii) a copy of  certificate of state registration, (iv) a copy of a 
contract (agreement) on sales-purchase with participan ts of international trade deal, (v) a license for 
production of alcohol products, or for storage and sale of ethyl spirit in case of importing ethyl spirit. 
Question 78 
What are the fees charged for these licenses? 
Answer: 
The uniform import license fee for all types of good s subject to import/licensing fees is established at 
the rate of 6 Monthly Calculati on Index (US$ 40.4 or € 33.2).   WT/ACC/KAZ/50 
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 Question 79 
Survey of Foreign Trade Regime (WT/ACC/KAZ/40), page 22: WT/ACC/SPEC/KAZ/8, 
paragraphs 113, 114:  We would seek further clar ification on import and activity licensing for 
alcoholic products.  
Answer: 
Import licensing of ethyl spirit and alcoholic bevera ges is regulated by the Rules on import licensing 
of ethyl spirit and alcoholic beverages, which is approved by the Government Resolution "On 
licensing of import of ethyl spirit and alcoholic beverages in the Republic of Kazakhstan" of 
27 June 1997 No. 1031. The Ministry of Finance issues import/ export licenses for ethyl spirit and 
alcoholic beverages. Licensing procedures for all goo ds, including ethyl spirit and alcohol beverages, 
are provided in Annex 1. 
The following documents are necessary to obtain a licence:  (i) an application, (ii) a document 
confirming the payment of licence fee, (iii) a copy of certificate of state registration, (iv) a copy of a 
contract (agreement) on sales-purchase with particip ants of international trade deal, (v) a licence for 
production of alcohol products, or for storage and sale of ethyl spirit in case of importing ethyl spirit. 
In accordance with the Government Resolution "On approval of licensing fees for carrying out certain 
types of activities" of 24 January 2002 No. 100, the uniform import license fee for all types of goods subject to import/licensing fees is established at the rate of six Monthly Calc ulation Index (US$ 40.4 
or € 33.2.  Licenses are granted on a national treatment and MFN basis.   
Question 80 
These sections refer to a number of non-tariff measures (NTMs) (including licensing 
requirements).  We request in tabulated form detailed information on all NTMs.  We ask that the table include columns for: 
- the tariff code for the product 
- the product description 
- a description of the measure, including its purpose 
- the entity (or entities) responsible for applying the measure 
- all laws, regulations and decisions relating to the measure 
- WTO justification or the date of elimination. 
References to automatic import licensing in th e context of the table should refer only to 
licensing that is automatic in accordance with all provisions of Article 2 of the Agreement on 
Import Licensing Procedures.  All other impo rt licensing should be referred to as non-
automatic.  
Answer: 
List of goods, subject to import licensing and th e Rules on export and import licensing of goods and 
services were approved by Government Resolutio n No. 1037 "On licensing export and import of 
goods and services in the Republic of Kazakhstan"  of 30 June 1997.  The licensing system of 
Kazakhstan regulated import of a limited number of  goods to ensure protection of human life and 
health, environmental protection, protection of public order, as well as for reasons of national 
security.  
The requested information with the list of goods subject to import licensing by HS number along with 
the justification for each measure is provided in Annex 5.   WT/ACC/KAZ/50 
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 Except import licensing procedures applied in Kazakhstan met the requirements set for the rules on 
administration of automatic import licenses, except for the duration of the period required for the approval of applications for licenses. Article II of the WTO Agreement on Import Licensing Procedures stipulate that "applications for licenses when submitted in appropriate and complete form 
are approved immediately on receipt, to the extent administratively feasible, but within a maximum of 
ten working days".  According to Article XVII of the Law  of Kazakhstan " On Licensing",  licenses 
were issued within a maximum of a month, for small businesses –within a maximum of  ten days from 
the date of submission of application and all nece ssary documentation.   Licensing procedures did not 
have trade-restrictive effects on imports of goods s ubject to licensing.   The Ministry Industry and 
Trade was the state body responsible for administ ration of export and import licenses for all goods 
subject to licensing, who issued import licenses upon preliminary coordination with relevant state agencies and ministries. 
Question 81 
Paragraphs 115-116:  We do not understand why it  is necessary to des cribe requirements for a 
license to produce alcoholic beverages.  Wh at about importing alcoholic beverages? 
Answer: 
Given requirements for a license to produce al coholic beverages description are removed. 
Question 82 
Paragraph 117:  Kazakhstan should list its li censing fees for import activities and for 
importation.  We understand that some of thes e fees are not consistent with Article VIII.  
Kazakhstan should develop a plan for bringing  all its licensing fees into line with WTO 
provisions. 
Answer: 
Licensing fee is determined based on the actual co st of services rendered and does not represent an 
indirect protection to domestic products or a ta xation of imports or exports for fiscal purposes. 
Therefore, the licensing fees applied by Kazakhstan do not contradict to Article VIII of GATT.   
Question 83 
Paragraph 118:  What activities covered by thes e laws involve importation or exportation?  
Paragraph 119:  The discussion in this paragra ph is not adequate.  The information given does 
not support a determination of whether the li censes are automatic or non-automatic.   
Answer: 
Except import licensing procedures applied in Kazakhstan met the requirements set for the rules on 
administration of automatic import licenses, except for the duration of the period required for the approval of applications for licenses.  Article II of the WTO Agreement on Import Licensing Procedures stipulates that "applications for licenses when submitted in appropriate and complete form 
are approved immediately on receipt, to the extent administratively feasible, but within a maximum of 
ten working days".  According to Article XVII of  the Law of Kazakhstan "On Licensing", licenses are 
issued within a maximum of a month, for small businesses –within a maximum of  ten days from the date of submission of application a nd all necessary documentation.     WT/ACC/KAZ/50 
 Page 51 
 
 
 Question 84 
We need specific information on the discretionary criteria applied.  
Answer: 
The licensing system of Kazakhstan regulates import of a limited number of goods to ensure 
protection of human life and health, environmental pr otection, protection of public order, as well as 
for reasons of national security. 
Licenses are granted on a national treatment and MFN basis.  
Question 85 
Paragraph 119 also states the Ministry of I ndustry and Trade issues import licenses "upon 
preliminary coordinate with concerned ministries and agencies."   
Please clarify if it the responsibility of the enti ty seeking a license oversee the coordination with 
"concerned ministries" (e.g. submit an applicatio n to both the Ministry of Industry and Trade 
and the concerned ministry) or will the Ministries undertake the coordination?  
Answer: 
As the responsibility of the Ministry of Industry and Trade to coordinate the process of issuing 
licenses with the concerned agencies and that entiti es seeking licenses have to submit applications to 
the Ministry of Industry and Trade (in case of ethyl sp irit and alcoholic beverages,  to the Ministry of 
Finance).  Ministries concerned are listed against the goods subject for import licensing is also given 
in Annex 5. 
-  Customs valuation 
Question 86 
We are reviewing available information on Ka zakhstan's new regime for customs valuation.  
Pending completion of this review, we do not agree that the current regime is WTO consistent. 
In the factual summary, Kazakhstan indicates that in addition to the new Customs Code, there 
are other legislative acts that have a role in customs work.  These are: 
- the Rules for Independent Examination of Consistency of Customs Value, Quality, 
and Quantity of Imported Goods (the Resolution of the Government of the Republic of Kazakhstan No. 782 of 16 July 2002); and  
- the Decree of the Customs Committee of the Republic of Kazakhstan No. 209 of 
15 May 2003 "On Adoption of Rules on Completion of Declarations of Customs Value and Customs Value Adjustment Forms".   
Could Kazakhstan provide copies of this legislation for Working Party review? Answer: 
Copies of these Rules will be submitted later. WT/ACC/KAZ/50 
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 Question 87 
WT/ACC/SPEC/KAZ/8, paragraphs 120-122:  Could Kazakhstan confirm that the Customs 
Code and other legislative acts related to provi sions concerning customs valuation for goods are 
completely compatible with Article VII of GATT 1994 and the Agreement of its 
implementation? 
Answer: 
The Government of Kazakhstan had adopt ed a new Customs Code on 5 April 2003 
(WT/ACC/KAZ/39/Rev.1 refers).  Under Article 3 08 of the Customs Code, customs valuation of 
imported goods were based on:    
- transaction value of imported goods;  
- transaction value of identical goods;  
- transaction value of similar goods;  
- deduction of costs method;  
- composition of costs; and 
- reserve method. 
As a general rule, customs valuation is based on the transaction value of the imported goods, that is 
the price actually paid or payable for the goods when sold for export to the country of importation.  Where application of this method is impossible, othe r methods shall be used in the order shown above 
until determination of the customs value became possible.   
According to Article 311 of the Customs Code, "homogenous" or "similar" goods mean goods, which, 
although not identical, have similar characteristics and consist of similar components, which allow 
them to perform the same functions as the goods being valued, and to be commercially 
interchangeable.  
According to Article 314 of the Customs Code, the cu stoms value of goods on the basis of the reserve 
method may be applied if the customs value cannot be  determined by a successive application of all 
other methods.  The customs value of goods on the b asis of the reserved method has to be determined 
by a more flexible application of methods describ ed in the above mentioned Articles, in compliance 
with the principles and general provisions of th e GATT/WTO related to the customs value of goods. 
Question 88 
Could Kazakhstan clarify the methods and terms referred to in paragraph 120, in particular 
"cost of a contract of homogeno us goods" as well as "reserve". 
Answer: 
According to Article 311 of the Customs Code, "homogenous" or "similar" goods mean goods, which, 
although not identical, have similar characteristics and consist of similar components, which allow 
them to perform the same functions as the goods being valued, and to be commercially 
interchangeable.  
When determining the similarity of goods, their quality, availability of a tr ademark, and reputation on 
the market shall be taken into account.  
When using this method for determining customs value:   WT/ACC/KAZ/50 
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 - goods shall not be considered similar to tho se being valued if they are not manufactured 
in the same country as the goods being valued;  
- goods, which were manufactured by a person different from the manufacturer of the 
goods being valued, shall be taken into c onsideration if there are no similar goods 
manufactured by the manufacturer of the goods being valued; 
- goods shall not be considered as similar if their development, engineering, artwork, 
design, sketches and drafts were provided by th e buyer to the seller free of charge or at a 
reduced price to be used in connection with  production and sale for export to the Republic 
of Kazakhstan; or  were manufactured in th e Republic of Kazakhstan and, owing to that, 
their cost was not included in the customs va lue of the goods on the basis of section 5, 
Sub-paragraph 4), Paragraph 2,  Article 309 of this Code. The chapter of the Customs 
Code describing customs valuation pro cedures is available through document 
WT/ACC/KAZ/50/Add.1.  
When using the reserve method to determine cu stoms value, the following may be utilized: 
(i) informational reference books de termined by the Government of Kazakhstan; and ( ii) statistical 
data, generally accepted commission rates, discounts, pr ofit, transport rates and other data.  In the 
process, the appropriate adjustment of data sh all be mandatory, taking into account commercial 
standards (wholesale, retail) and/ or the quantity of goods being valued. When using the reserve 
method to determine customs value, information that  the customs authorities have, may also be used. 
Question 89 
Does Kazakhstan apply minimum values? Answer: 
According to Article 310 of the Customs Code, while determining customs value based on the 
transaction value of identical goods, when more than  one transaction value with identical goods is 
identified when using this method, then the lowest  of the values must be applied to determine the 
customs value of the imported goods. The minimu m customs value cannot be used as a basis for 
determining the customs value of goods based on the reserve method.  
Question 90 
Is the Administrative Violations Code also app licable for disputes related to customs valuation? 
Answer: 
The Code "On Administrative Violations" was adopt ed by the Law of Kazakhstan of January 2001 
No. 155-11. The Code identifies the bodies author ized to address the cases of administrative 
violations and impose sanctions.  
The Code is applied to disputes related to cust oms valuation as well as to cases, when there is 
deliberate evasion from payment of the customs duties and taxes. 
-  Rules of origin 
Question 91 
We seek some reflection in this section of th e Factual Summary Kazakhstan's normal rules of 
origin, i.e., those not associated with preferential trade. WT/ACC/KAZ/50 
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 Answer: 
The Republic of Kazakhstan uses a uniform system for determination of the country of origin of all 
goods for tariff and non-tariff measure s, applied to imported and expor ted goods.  The existing system 
which was developed by the World Customs Orga nization and covered by the Kyoto Convention. 
The country of origin is the country where a good was produced in full or underwent significant 
processing, in accordance with criteria set out in th e Customs Code.  Goods produced in one country 
include natural products, e.g. live animals, minera l resources, fruits, etc., while goods processed to a 
significant degree comprise goods produced jointly by two or more countries.  In the latter case, the degree of processing is determined by numerous criteri a, e.g. changes in tariff codes, value added, and 
listed operations involved in processing procedure.   Several countries, customs unions, regions, or 
parts of countries may be viewed as the country of or igin, provided that this is justifiable for purposes 
of determination of the country of origin. 
Imports of goods to the customs territory of Kaza khstan require a certificate of origin only for 
instances where:  (i) preferences are granted in r espect of the customs tariff on goods, transported 
across the territory of Kazakhstan; (ii) the custom s body has sufficient grounds to believe that goods 
originate in a country, imports of which shall be s ubject to non-tariff measures; (iii) such requirement 
is stipulated by international agreements to which K azakhstan is party, as well as by the legislation of  
Kazakhstan on sanitary and epidemiological safety,  environmental protection, protection of human 
health, consumer rights, public or der and national security.  A certificate of origin shall not be 
required for any other cases.     
A certificate of origin should state that the good in question originates in a given country, and contain: 
(i) a written declaration of the applicant certifying  that the good conforms with the corresponding 
criteria of origin; (ii) a written certification, issued  by the competent body of the country of export, to 
the effect that the information contained in the cer tification of origin is correct and reliable.  The 
customs body has the right to prohibit transportation of the good across the customs body of 
Kazakhstan only where it has sufficient grounds to  believe that the good originates in a country, 
whose goods may not be allowed for transportati on under international agreements to which 
Kazakhstan is party, or under the national legisl ation. The grounds for the above action should be 
made available to the applicant in writing.  Failure  to provide a correctly drafted certificate (hygiene 
certificate) or information on the origin of a good should not be viewed as a sufficient reason for denial of transportation of the good across the customs border of Kazakhstan. 
Section 4 of the Customs Code of Kazakhstan de scribes in details the rules on determination of 
country of origin of goods was is availa ble through document WT/ACC/KAZ/50/Add.1. 
Question 92 
We seek specific legislation implementing Arti cle 2(h) and Annex II, paragraph 3 (d) of the 
Agreement. 
Paragraph 127:  The provisions described do no t meet the requirements of the Agreement, and 
the assertion of WTO consistency is inappropriate, as that has not yet been determined. 
Answer: 
According to Article 47-49 of the Customs Code of Kazakhstan, (i) application must be considered by 
the customs authority and a preliminary decision must  be issued within ten working days from the day 
the application was registered, if other information or expertise was not required; (ii) a preliminary 
decision made by customs authorities must be effe ctive for three years from the date it was made; 
(iii) a preliminary decision must be annulled if su ch decision was made on the basis of incomplete or  WT/ACC/KAZ/50 
 Page 55 
 
 
 incorrect information provided by the applicant, e ffective from the date of making a new preliminary 
decision; (iv) an amendment to a preliminary deci sion must come into effect after the applicant 
receives a notification concerning the amendmen t; (v) in the cases specified above, a written 
notification, which specifies the reasons for the annu lment or change, must be sent to the applicant; 
(vi) preliminary decisions made by customs author ities, except for confidential information, may be 
published and provided to any pe rson upon a written request.  There is no provision in the Customs 
Code which does not allow applications to be accep ted before trade in the goods concerned began or 
at any later stage.  There is no need for a separate legislation to implement according to Article 2 (h)  
and Annex II, paragraph 3 (d) of th e WTO Agreement on Rules of Origin. 
-  Other customs formalities Question 93 We remain concerned that Kazakhstan's over-reg ulation of import trade constitutes a barrier 
to importation, nullifying any benefit from tariff concessions. 
In particular, the transaction passport constitu tes an unacceptable universal licensing system 
and currency control incompatible with  Article XI and XV of the GATT. 
There are other ways to prevent capital flight, including establishing an economic regime that 
welcomes investment based on actual economic factors. 
As we have indicated on many occasions, Ka zakhstan should remove this measure prior to 
accession. 
Answer: 
In order to monitor movements of goods and financial resources, the Law of Kazakhstan ‘On 
Currency Regulation' and the Resolution of the Na tional Bank Board ‘On Adoption of Guidelines for 
Export and Import Currency Control in the Republic  of Kazakhstan', of 5 September 2001, No. 343, 
requires the transaction passport for any expo rt/import transaction exceeding US$ 10,000. The 
transaction passport is issued by the customs aut horities automatically within two days after the 
contract submission date. No fees require d for obtaining transaction passports.   
The purpose of a transaction passport is to assure compliance with the foreign currency legislation of 
Kazakhstan.  The transaction passport/certificate cont ains information on foreign economic operations 
and allows monitoring movements of goods and m oney involved in export and import operations.  
Currency controls ensures that currency earnings fl owed into the country in full and in a timely 
fashion as well as ensured a proper use of foreign currency and KZT for the purpose of import.   
The transaction passports are by no means used to balance trade and, as such, are not viewed as a 
barrier to foreign economic activities. Each transac tion passport/certificate has its unique number and 
included brief information on the contract.  Electr onic monitoring based on the database of transaction 
passports/certificates allowed to reveal "fictitious " foreign economic operations, involving transfers of 
the "shadow" capital to offshore zones. 
Question 94 WT/ACC/SPEC/KAZ/8, paragraphs 128-133.  We would still seek further information on the 
‘transaction passports', which still looks like a duplication of other procedures. Do economic 
operators have to pay any fees to obtain these passports?  WT/ACC/KAZ/50 
Page 56 
 
 
 Answer: 
The purpose of a transaction passport is to assure compliance with the foreign currency legislation of 
Kazakhstan. The transaction passport/certificate cont ains information on foreign economic operations 
and allows to monitor movement s of goods and money involved in  export and import operations.  
Currency controls ensured that currency earnings flow n into the country in full and in a timely fashion 
as well as ensured a proper use of foreign currency and KZT for the purpose of import.   
The transaction passport is by no means used to ba lance trade and, as such, cannot be viewed as a 
barrier to foreign economic activities.  Each transaction passport/certificate has its unique number and includes brief information on the contract.  Electr onic monitoring based on the database of transaction 
passports/certificates allows revealing "fictitious" foreign economic operations, involving transfers of 
the "shadow" capital to the offshore zones.  
Question 95 
The rules concerning customs documentation should be more flexible in order to still allow for a 
certain time that on the one hand, paper versions of declarations are accepted and that, on the 
other hand, electronic declarations do not necessarily have to be accompanied by paper 
versions? 
Answer: 
It was necessary to introduce a Uniform Comput er Based Information System (UCBIS) for 
performance of the obligation of the Agency of Cu stoms Control of the Republic of Kazakhstan to 
provide full and trustworthy information as well as sta tistical data and also to ensure compliance with 
international standards (electronic copies are used  by the United States, European Union and other 
members of WTO).  With the purpose of introductio n of UCBIS the Government of the Republic of 
Kazakhstan had issued an exclusive license to cl ose joint-stock company "Accept Corporation" for 
development of electronic copies of customs docum ents.  Since 1999 the exclusive license of the 
Joint-Stock Company "Accept Corporation" for development of electronic copies of customs 
documents had been cancelled. 
At present development of electronic copies is carried out on a competitive basis in the Republic of 
Kazakhstan.  The project on introduction of Unif orm Computer Based Information System (UCBIS) 
is carried out independently by the Agency of th e Customs Control of the Republic of Kazakhstan. 
Development of the Terms of Refe rence on creation and introduction of  "electronic customs" within 
the framework of which transition to electronic decl aring of customs documents will be carried out is 
planned for 2004.  UCBIS envisaged mechanisms of  protection of confidential information received 
from participants of the foreign economic relati ons.  Introduction of new technologies demanded 
gradualness at transition from the technologies used ear lier.  This particular reason was the basis of 
the requirement on provision of hardcopies of customs declarations.  
-  Preshipment inspection 
Question 96 
Paragraph 134:  We need much more inform ation about the "independent examination" pre-
clearance audit system.  Who performs it, what is the fee charged, what right of appeal to the Government exists.  What rules of valuation are used? 
We are concerned that Kazakhstan has instated a PSI program with no reference to its WTO 
obligations.   WT/ACC/KAZ/50 
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 Answer: 
Due to termination of the Program of Pre-shipme nt Inspection (PPI) on 31 January 1997 Pre-shipment 
Inspection does not exist in the Republic of Kazakhstan. 
-  Anti-dumping, countervailing duties, and safeguard regimes 
Question 97 
WT/ACC/SPEC/KAZ/8.  Item 135 mentions the Laws "On Antidumping No. 421-1 of 
13 July 1999, "On Measures for the Protection of  Domestic Markets" No 337-1 of 28.12.98 and 
on Subsidies and Countervailing Measures" No 441-1 of 16 July 1999.  Have there been any changes since or are there new drafts? 
Answer: 
The law generally follows the provisions and defi nitions of the WTO AD and ASCM Agreements. 
However there are some differences pa rtly probably due to translation. 
Question 97 
Draft Law on Antidumping:  Article 1 definitions: definition of dumping does not follow 
Article 2.1 ADA, it describes dumping as "one form of fighting for consumer markets which 
means unfair actions of a supplier undertaken in  the foreign market through the sale of 
products at price less than its normal price with the view of eliminating competitors".  It does 
not mention "like product, comparable price an d ordinary course of trade." One could also 
suggest that "with the view of eliminating competitors" is an additional criterion for the definition of dumping. It would be better to stick to the definition of Article 2.1 ADA. 
Normal price:  The present version always me ntions "normal price" – better "normal value" 
according to ADA. 
Answer: 
The above raised comments refer to an outdated vers ion of the draft Law. The final version of the 
Law "On antidumping measures" No. 421-1 dated 13 Ju ly 1999, contains the definition of dumping 
which is consistent with the Article 2.1 of the WTO Agreement on implementation of Article VI of 
GATT 1994 (hereinafter – WTO Agreement on antidumping). 
The current Law makes reference to the "like product" and "ordinary course of trade". Although the 
definition of "normal price" does not mention "comparable price", it contains the meaning of the definition of "normal value" given in the WTO Agreement on antidumping.       
Nevertheless, in order to bri ng the Kazakh legislation in compliance with the WTO Agreement on 
antidumping all of necessary amendments will be added to the Law by the end of this year. 
Question 98 
Article 15.2  Disclosure of application on determin ation of dumping and injury is not quite clear 
and differs from Article 6.10. ADA. Does "Where the number of persons involved is more than five particularly high" mean that with more th an five exporters concerned not all of them will 
be informed about the initiation of an investigation but only their diplomatic or other 
representations? Does the law not provide for "sampling" like in Article 6.10 ADA? WT/ACC/KAZ/50 
Page 58 
 
 
 Answer: 
Current Kazakh Law on antidumping does not provide fo r "sampling" as stated in Article 6.10 of the 
WTO Agreement on antidumping. Yet, a provision on "s ampling" will be added to the Law by the end 
of this year in the framework of bringing the K azakh legislation in compliance with the WTO rules 
and regulations.  
Question 99 
Article 40 provisional measures and procedures of their imposition: This Article does not 
mention all conditions for the application of provisional measures. Article 7.1 (iii) also states the necessity to prevent injury being caused during the investigation. 
Article 42 duration of application of provisional  anti-dumping measures: This Article only 
mentions "low duty" without the clear description of Article 7.4 ADA "examine a duty lower than the margin of dumping would be sufficient to remove injury". 
Answer: 
(i) The current version of the Kazakh Law desc ribes provisional measures in Article 30 not in 
Articles 40 and 42 as was mentioned by some members of the Working Party. 
(ii) Article 30 of the Kazakh Law does not men tion among the conditions for the application of 
provisional measures the necessity "to prevent in jury being caused during the investigation" 
as stated in the Article 7.1 (iii) of the WTO Agreement on antidumping. 
(iii)  The Article 30.3 of the Kazakh Law makes a clear reference that in case, when a provisional 
duty is lower than the margin of dumping be suffi cient to remove injury, then the application 
period of provisional anti-dumping measures may be nine months, which overall consistent 
with the Article 7.4 of ADA. 
Nonetheless, as part of the work on bringing the Kazakh legislation in compliance with the WTO 
rules and requirements, all necessary amendmen ts will be made to the Law "On antidumping 
measures" by the end of this year.   
Question 100 Article 48 investigation in respect to third part ies: should rather be called new comer review. 
Article 48.2 follows Article 9.5 ADA stating that no antidumping duties shall be applied to a new 
comer during the investigation, but then says  that provisional antidumping duties can be 
imposed.  Does this mean only in such cases where a new comer applies during an ongoing investigation when a provisional measures is already in place? 
Numbering of Articles: 48, 49 and 50 are identica l or very similar to Articles 53, 54 and 55 and 
there are other Arts numbered 53, 54 and 55. 
Answer: 
The final approved version of the la w consists of 43 articles and doesn't  contain the articles 48, 49, 50, 
53, 54 and 55 as was indicated in the requ est by some members of the Working Party 
Question 101 Draft law on subsidies and countervailing measures:   Article 7 the definition of subsidy: does 
not contain the notion of "benefit" Article 1.b ASCM.  WT/ACC/KAZ/50 
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 Answer:  
The reference was made to the outdated version of the draft law "On subsidies and countervailing 
measures." In the acting Law of the Republic of Kazakhstan "On subs idies and countervailing 
measures" No. 441-1 dated 16 July 1999, the sequence of the Articles had changed.  The definition of 
subsidy, some members of the Working Party referred to in their comments, is now under 
Article 1.16), while Article 7 is on "Specific Subsidy".  
There were several discrepancies in terminology an d wording of the terms and articles of the Law. 
However, he also assured that in accordance with  the process of bringing the Kazakh legislation in 
compliance with the WTO requirements all necessary amendments will be made to the above Law by 
the end of this year.   
Question 102 
The text mentions "preferential/specific" , ASCM only uses expression "specific". 
Answer: 
The acting Law of the Republic of Kazakhstan "O n subsidies and countervailing measures" does not 
contain the term "preferential/specific," like the WTO Agreement on subsidies and countervailing 
measures the Law uses the term "specific," which is in compliance with the WTO requirements. 
Question 103 
Article 21 threat of material injury: does not mention all requirements of Article 15.7, in 
particular that the threat of material injury  shall be based on facts and not merely on 
allegations and the change in circumstances must be clearly foreseen and imminent and that, 
unless protective action is taken, material injury would occur. 
Answer: 
Article 13 "Determination of a threat of material injury" and Article 9 "Determination of a material 
injury" of the current Kazakh Law "On subsidi es and countervailing measures" are in compliance 
with the requirements of Article 15.7 of th e WTO Agreement on subsidies and countervailing 
measures. 
In particular, Article 13 says that "A threat of a physical injury to domestic manufacturers from 
imported goods subsidized by a foreign state (uni on of foreign states) shall be justified by an 
authorized body on the basis of analysis of the following indices: 
- a character of a subsidy and its impact on a trade; 
- growth rates of the import of goods subsidized by a foreign state (union of foreign states) 
at the market of the Republic of Kazakhstan; 
- availability at a supplier of the reserves of production and/or expor t of goods subsidized 
by a foreign state (union of foreign states) indicating the possibility of their deliveries to the market of the Republic of Kazakhstan. At  that the possibilities of other export markets 
for sales of any additional export sha ll be taken into consideration; 
- import of goods subsidized by a foreign state (union of foreign states) on prices that might 
influence the reduction of prices of a domestic market and follow to increase of the demand for additional deliveries; 
- volume of the reserves of goods in a country  of a supplier in relation to whom the 
investigation is conducted."   WT/ACC/KAZ/50 
Page 60 
 
 
 Therefore, the Law of the Republic of Kazakhstan is  in compliance with the requirements of Article 
15 of the WTO Agreement on subsid ies and countervailing measures. 
Question 104 
Article 34 consultations: only mentions that cons ultations shall be held during the whole process 
of investigation. Article 13 ADA (ASCM?) states that  "as soon as possible after an application is 
accepted, and in any event before the initiation of  any investigations consultations shall be held. 
Answer: 
The above reference to Article 34 of the Draft Law "On subsidies and countervailing measures" is 
outdated, since several amendments were introduced into the mentioned draft law.  The acting version 
of the Law does not foresee provision on "consultati ons."  Yet, the representative of Kazakhstan 
stated that with the aim of bringing the national legislation in full compliance with the WTO rules and 
requirements, all of the relevant amendments will be added to the Law by the end of this year, 
including introduction of "consultations," as de fined by the WTO Agreement on subsidies and 
countervailing measures.  
Question 105 
Article 35 provisional measures: does not state that provisional measures shall not be applied 
sooner than 60 days from the date of initiation of the investigation as mentioned in Article 17.3 ASCM. 
Answer: 
Article 25.2 "Implementation of temporary count ervailing measures" of the Kazakh Law indicates 
that "temporary countervailing measures in the fo rm of money deposits and (or) guarantees of the 
banks of the Republic of Kazakhsta n shall be applied to supplier not earlier than in two months from 
the moment of initiation of the investigation," whic h is no earlier than 60 days from the investigation 
initiation as stated in the WTO Agreement on subsidies and countervailing measures.  
Nevertheless, as the representative of Kazakhstan stat ed with the aim to bring the national legislation 
in full compliance with the WTO Agreement on s ubsidies and countervailing measures all of the 
relevant amendments will be made to  the Law by the end of this year. 
Question 106 
Article 44 retroactivity:  Article 44.1 is unclear, it  refers to accordance with Article 5, except in 
cases, indicated in p.2 and 5 of this Article.  Article 5 only contains one point which does not 
seem to provide for any exceptions.  Article 44.5 does not mention all the requirements of 
Article 20.6 ASCM, in particular critical circums tances, massive imports in a relatively a short 
period of time of a product benefiting from s ubsidies inconsistent with the provisions of GATT 
1994 and the ASCM, in order to preclude the recurrence of injury. 
Answer: 
Article 44 "Retroactivity" of the Kazakh Law had be en excluded from the current Law "On subsidies 
and countervailing measures."  However, in order to  bring the national legislation in full compliance 
with the WTO Agreement on subsidies and counterva iling measures, all of the necessary amendments 
will be made to the Law by the end of the year.    WT/ACC/KAZ/50 
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 Question 107 
Draft Law of the Republic of Kazakhstan "On Safeguard Measures":  Article 2.5 stipulates that 
"As safeguard measures shall be applied only th ose that are stipulated by current Law.  Such 
measures as voluntary export restriction, orderl y marketing arrangement, and other similar 
measures applied to export or import shall not be applied as safeguard measures."(emphasis 
added). 
Is it possible under Kazakhstan law other than the law on safeguards measures to impose 
voluntary export restriction, orderly marketin g arrangement, and other similar measures 
applied to export or import? If so, how would su ch measures be consistent with Article 11 of the 
Safeguards Agreement? 
Answer: 
The mentioned Article of the draft law is no longer relevant, since the new Law on safeguard 
measures had been adopted, which does not contain si milar provisions.  In addition, there are no other 
laws or legislative acts, which can apply any voluntary export restrictions, orderly marketing 
arrangement, and other similar measures in regard of exports and imports.  
Question 108 "Injury" is defined in Article 4 as "a signif icant impairment of the economic position of 
separate domestic producers". This definition does not appear to cover all the relevant elements 
required by the WTO Safeguards Agreement insofar as: 
- the word "serious" is missing to qualify in jury. Since the "serious" character of the 
injury is an essential requirement of any safeguard action, will the word "serious" 
be added? 
Answer: 
In the acting Kazakh Law "On safeguard measures" the word "serious" is used in order to describe the 
degree of "injury".  In particular, Article 1 (11) of the Law defines the term "serious injury" as "a 
significant deterioration of a situation in the branch  of production of similar or directly competitive 
goods due to the increased volume of their deliveri es to the territory of the Republic of Kazakhstan 
…" 
Question 109 
The word "overall" is missing to qualify "impairment".  Will this word be added? 
Answer: 
The word "overall" is in fact missing from the definition of "impairment" (Article 1 (11) of the acting 
Law).  Yet, he stressed that as part of legislative works on bringing the Law into full conformity with 
the requirements of the WTO Agreement on safeguard s the relevant changes will be made to the Law 
by the end of the year.  
Question 110 
The Safeguards Agreement requires that serious injury be suffered by the entire domestic 
industry or a major proportion thereof. Could Kazakhstan explain how the terms "separate producers" should be interpreted in the light of the Safeguards Agreement? WT/ACC/KAZ/50 
Page 62 
 
 
 Answer: 
The reference some Working Party members made regarding "separate producers" referred to the 
outdated Draft Law.  The acting Law "On safeguard measures" does not contain such term as it does 
not define full scale of caused injury. Article 1(11) of the acting Law states that "serious injury" must 
be suffered by the entire "branch of domestic pr oduction of similar or directly competitive goods…" 
but not by separate producers if only their total production volume constitutes the most part (more 
than fifty percent). 
Question 111 
The law of Kazakhstan does not indicate on the basis of which factors the existence of serious 
injury will be established.  Could Kazakhstan confirm that any serious injury determination 
will be made on the basis of all relevant factors in cluding those specified in Article 4.2(a) of the 
Safeguards Agreement? 
Answer: 
The Article 8 (3) and Article 16 (2) of the Kazakh La w stipulate the submission of an application for 
conducting investigation by an authorized body contai ning "the data reflecting all appropriate factors 
of an objective character…particularly, changes in  the volumes of sales, production, productivity, 
capacity load, amounts of profits and losses, reduction of the number of persons employed in the production, information on change of prices for simi lar or directly competitive goods at the domestic 
market of the Republic of Kazakhstan," as de fined in the WTO Agreement on safeguards. 
In order to bring the acting Law "On safeguard measures" into full compliance with the relevant WTO 
Agreement all necessary changes, incl uding rewording of some articles so  it is in full conformity with 
the Agreement, will be made by the end of this year.  
Question 112 
Could Kazakhstan clarify what is covered by the terms "General management on the state 
control over trade practice of suppliers" in Article 5.1? 
Answer: 
The given provision in the Law reads as "Government  regulation and control of the trade practice of 
the suppliers in case of causing a serious injury  shall be performed by an authorized body" 
(Article 5 (1).  He also added that such unfortunate  confusion could have been result of inaccuracy in 
translation. 
Question 113 
Article 18 provides that provisional measures can be taken on the basis of a preliminary 
affirmative determination of injury or threa t thereof.  Article 6 of the WTO Safeguards 
Agreement also requires that it be demonstrat ed that there are "critical circumstances where 
delay would cause damage which it would be di fficult to repair".  This mandatory requirement 
is not reflected in the law of Kazakhstan. Ca n Kazakhstan confirm that provisional safeguard 
measures will only be imposed if all the condi tions provided by Article 6, including those 
regarding critical circumstances, are fulfilled?  WT/ACC/KAZ/50 
 Page 63 
 
 
 Answer: 
The Article 17(2) of the Kazakh law stipulates a pplication of provisional safeguard measures "under 
critical circumstances if their postponement may cau se a serious injury to the domestic industry that 
shall be difficult to compensate".  Therefore, the gi ven provision appears to be in compliance with the 
WTO Agreement on safeguards. 
Question 114 
Article 18.4 provides that the provisional measures will be "phased out" in the case of a 
negative injury determination.  Do the term s "phased out" mean refunded as required by 
Article 6 of the WTO Safeguards Agreement? 
Answer: 
The Article 17(4) of the Kazakh law reads that "in c ase, if based on the results of investigation, an 
authorized body makes a decision that the incr eased volume of deliveries does not cause a serious 
injury to domestic manufacturers, provisional  me asures shall be cancelled and the importer shall be 
entitled to be refunded the amount paid in acco rdance with the procedure established by the 
legislation of the Republic of Kazakhstan." 
The above-mentioned provision will be reworded, such words like "shall be entitled to be refunded" 
will be replace with "be promptly refunded" as a ppears in the WTO Agreement on safeguards, by the 
end of this year.  
Question 115 
Article 20 specifies that the period of validity of provisional measures should not exceed seven 
months.  In accordance with Article 6 of the WTO Safeguards Agreement, the maximum 
duration of application of a provisional measure is  200 days, i.e. less than seven months.  Will 
Article 20 be amended in order to reflect the 200 day time limit? 
Answer: 
Article 19 of the acting Law reads that the period of provisional safeguard measures validity should 
not exceed 200 days.  Such provision is full y in compliance with the WTO requirement.  
Question 116 
Article 23 provides that "information on the application of safeguard measures should be 
submitted by the Authorized Body to the Commi ttee".  The use of the conditional would imply 
that such notification might not be systematic contrary to the express requirements of Article 12 
of the WTO Safeguards Agreement.  It is furth er noted that the notification obligations of 
Kazakhstan are already addressed in Article 9 wh ich uses the term "shall".  Could Kazakhstan 
please clarify the relation between Article 9 and Article 23 and the apparent contradiction 
between the obligations contained therein? 
Answer: 
The above comment in regards to Article 23 is no l onger relevant since the new Law is now in force, 
and it does not contain such provision.  Neverthe less, in order to bring the Law "On safeguard 
measures" into full compliance with the require ments of the WTO Agreement on safeguards, all 
necessary amendments will be added to the Law by the end of this year.  WT/ACC/KAZ/50 
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 Question 117 
Article 28.3a) provides that the amount/size of the safeguard duty "can" be reduced provided 
that the duration of the measure exceeds one year.  It is noted that, further to Article 7.4 of the 
WTO Safeguards Agreement, a Member is oblige d ("shall") to liberalize (i.e. to reduce the 
amount) the safeguard measure if the duration of such measure exceeds one year.  Please 
explain the meaning of the term "can" in light of the explicit obligation contained in the WTO Safeguards Agreement. 
Answer: 
Article 28.3a) of the mentioned Draft law now co rresponds with Article 22 (2) of the acting law, 
stating that "the volume of safeguard measures may not be increased for all the time of their 
application, their volume may be reduced by the Resolution of the Government of the Republic of 
Kazakhstan upon petition of an author ized body provided that the dura tion of application of protective 
measure does not exceed one year," whereas Article 7 (4) of WTO Agreement clearly mentions that 
"in order to facilitate adjustment in a situation wh ere the expected duration of a safeguard measure … 
is over one year, the Member applying the measure shall progressively liberalize it at regular intervals 
during the period of application".  
The relevant changes will be made to the Law by the end of this year as part of work on bringing 
domestic legislation in compliance with the WTO Agreement.   
Question 118 
We understand that Article 28.3b) implements the provisions of Article 7.4, second sentence of 
the WTO Safeguards Agreement (mid-term review) .  However, Article 28.3b) states that such 
"review" would only take place if the measur e is applied for more than four years, while 
Article 7.4 of the Safeguards Agreement provides for such review if the measure exceeds three years.  Please clarify. 
Answer: 
Article 22 (3) of the Kazakh Law provides that in case if the validity period of a safeguard measure 
exceeds three years, re-investigation shall be conducted not later than in one and a half years after its 
application and as a result the safeguard measures may be cancelled, changed or extended. Such 
measure complies with the WTO provision.  Yet, as part of legislative work on bringing the Kazakh legislation in compliance with the WTO requirements,  relevant and necessary changes will be made to 
the Law by the end of the year.   
Question 119 Law of the Republic of Kazakhstan as of 28 December 1998, No. 337-1 ZRK:  Article 1.2 
provides that safeguards measures mean a "number of administrative and economic leverages".  
Could Kazakhstan clarify the notion of leverag es in this context and the difference between 
"administrative" and "economic" leverages? 
Answer: 
Under the Article 1(3) of the acting Law safegua rd measures are understood as "a set of means of 
administrative – economic impact applied based on the Resolution of the Government of the Republic 
of Kazakhstan in a form of protective duties or  quotas on goods imported to the territory of the 
Republic of Kazakhstan for a free circulation in its domestic market in such quantities (absolutely or  WT/ACC/KAZ/50 
 Page 65 
 
 
 relatively to domestic manufacture) and under such conditions when there is a serious injury or a 
threat of injury to domestic manufacturers of similar or directly competitive goods".  
In order to bring the above Law in full co mpliance with the WTO Agreement on safeguards 
amendments will be made to the Law by the end of  the year, including rewording of some definitions, 
so they appear as in the Agreement. 
Question 120 
In several Articles (e.g. Articles 1, 3, 16), the ad jective "material" is used to qualify the injury 
suffered by the domestic industry.  The word "material" implies a lower threshold of injury 
than that required by Article 2 of the WTO Safe guards Agreement, i.e. "serious injury".  Given 
that the injury threshold is an essential feature of any safeguard action, will the word 
"material" be replaced by "serious"?  If not, could Kazakhstan explain how injury 
determinations could ever be made in complia nce with the WTO Safeguards Agreement on the 
basis of the current language? 
Answer: 
In the framework of bringing the acting legislati on in conformity with the WTO requirements, a 
number of amendments had been introduced into the Kazakh Law "On safeguards."  As a result, the 
word "material" in reference to in jury was replaced by with the word  "serious" (Article 1 (11), which 
is in full conformity with the relevant WTO Agreement.  
Question 121 
Article 2 specifies that the legislation concernin g the measures to protect the domestic market 
against imported goods consists of the curren t law and of "other legal acts of general 
application".  Could Kazakhstan identify the ot her legal acts concerned and provide a copy 
thereof? 
Answer: 
The acting Kazakh legislation concerning the safegua rd measures consists of the Law of the Republic 
of Kazakhstan "On protective measures of domestic ma rket when importing goods " date 20 July 1999 
No. 443 and the Government Resolution of the Republic of Kazakhstan "On Approval of the 
Investigation Regulation Prior to Implementati on of Anti-Dumping, Countervailing and Safeguard 
Measures" dated 9 September 2000 No. 1374. 
Question 122 
Article 10.4 provides for the licensing of imports upon initiation of a safeguards investigation. 
Please explain the purpose of the licensing  procedure and provide details thereon. 
Answer: 
The requested information on licensing regime is  provided in Annex 1 as well as in the Kazakh Law 
"On licensing" dated 17 April 1995, No. 2200. 
Question 123 
Article 16.2 lists the economic indicators on the ba sis of which the injury determinations will be 
made. One of the factors is called "facility work load". Please explain the notion covered by WT/ACC/KAZ/50 
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 these terms. Does it mean capacity utilization?  If not, it is noted that capacity utilization is not 
listed. Please clarify. 
Answer: 
In compliance with Article 16 (2) of the Kazakh Law in order to determine a cause-and-effect relation 
between increased volumes of deliveries and a serious  injury of the domestic manufacturers or a threat 
of its causing, an authorized body shall take into consideration one of all objective factors influencing 
the situation in this branch, particularly capacity load.  
He further added that the Kazakh Law uses term "capacity load", while the WTO Agreement on 
safeguards uses "capacity utilization". 
Yet, necessary amendments will be  introduced to the Law by the end of the year so there are no 
discrepancies between the two.    
Question 124 
Article 17 states that "[i]f provisional safeguard duty is introduced in the amount higher than 
the rate of provisional safeguard measure, the difference shall not be charged to the payer for 
the paid period."  Please clarify this provision (probably, the word "provisional" should 
probably read "definitive" in the sentence introduced by "if"). 
Answer: 
Indicated inconsistency is rather due to some tec hnical inaccuracies of translation.  Article 17 (5) of 
the Law stipulated that in case if a safeguard meas ure is imposed at amount higher than a rate of a 
provisional safeguard measure, the difference for paid  period shall not be taken from the importer.  
Question 125 Article 22, second sentence, provides that the amount of the safeguard duty "may" be reduced 
provided that the duration of the measure exceeds one year.  It is noted that, further to Article 7.4 of the WTO Safeguards Agreement, a Member is obliged ("shall") to liberalize (i.e. 
to reduce the amount) the safeguard measure if the duration of such measure exceeds one year. 
Please explain the meaning of the term "may" in light of the explicit obligation contained in the 
WTO Safeguards Agreement. 
Answer: 
The above-mentioned Article of the Draft law is now corresponding to Article 22 (2) of the acting 
Law.  The mentioned Article states that "the vo lume of safeguard measures may not be increased for 
the whole time of their application.  Their amount may be reduced by the Resolution of the 
Government of the Republic of Kazakhstan upon petition of an author ized body provided that the 
duration of application of protective measure does not exceed one year", whereas Article 7 (4) of the WTO Agreement on safeguards clearly mentions that "i n order to facilitate adjustment in a situation 
where the expected duration of a safeguard measure … is over one year, the Member applying the measure shall progressively liberalize it at regular intervals during the period of application".  
The relevant amendment, which brings the legislation in compliance with the WTO Agreement on 
safeguards, will be made by the end of this year.   WT/ACC/KAZ/50 
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 Question 126 
We are reviewing Kazakhstan's laws for WTO co nsistency.  Are there regulations or other 
legislation that would clarify the application of these laws in a WTO-consistent fashion? 
Answer: 
In order to implement the Laws of the Republic  of Kazakhstan "On Anti-Dumping Measures", "On 
Measures for the Protection of Domestic Markets in the Process of Imports of Goods" and "On 
Subsidies and Countervailing Measures" the Government Resolution "On Rules of Conducting Investigation Prior to Implementing Safeguard , Countervailing and Anti-Dumping Duties" of 
9 September 2000 No. 1374 has been issued. 
The following rules set the frame work for conducting an investigation on the implementation of 
safeguard, countervailing, and anti-dumping duties, de fined relations, rights and obligations of the 
state bodies and interested parties concerned to prot ect the interests of dom estic producers; envisage 
provision of assistance during the investigation.  Th e above Laws of the Re public of Kazakhstan are 
developed taking into account Article VI of GATT 1994 and the WTO Agreement on Implementation 
of Article VI of GATT 1994 (W TO Agreement on anti-dumping); Ar ticle XIX of GATT 1994 and the 
WTO Agreement on Safeguards; Article XVI of GATT 1994 and the WTO Agreement Subsidies and 
Countervailing Measures. 
Question 127 
Please provide information on trade remedies ap plied under these laws since their enactment.  
Please describe in the text the procedure fo r investigation, determination, and appeal. 
Answer: 
Detailed procedures on  application of trade remedy measures are described in the Government 
Resolution "On Rules of Conducting Investigation Prior to Implementing Safeguard, Countervailing 
and Anti-Dumping Duties" of 9 September 2000 No. 1374.  Trade remedy procedures are developed 
based on the provisions of the respective WTO Agr eements.  The above Gove rnment Resolution will 
be sent to the Working Party members for their review.  
B. EXPORT REGULATIONS 
- Customs tariffs, fees and charges for services rendered, application of internal taxes to 
exports  
Question 128 We have also learned that an export tax on cr ude oil has recently been introduced in the Tax 
Code. Could further information on this point be provided in terms of the WTO compliance of 
this measure. 
Answer: 
The Republic of Kazakhstan introduced a new tax re gime for oil operations designed to increase the 
Kazakh future share in oil revenue.  The new ta x regime for oil operati ons applied only for new 
contractual obligations and did not have retroactive force. 
Taxes were imposed upon subsurface users according to the following two models:  WT/ACC/KAZ/50 
Page 68 
 
 
 - Licensing; and 
- Production Sharing Agreement (PSA). 
The first model suggested the payment of the rent tax on the export of crude oil, the tax on the excess 
profit, the royalties, bonuses as well as all other types of taxes and other mandatory payments 
established by the Tax Code.    
According to the Law "On Changes and Additions to  Some Legal Acts of the Republic of Kazakhstan 
on Taxation Issues" of 29 November 2003, natura l and juridical persons exporting crude oil 
(excluding subsurface users, who signed PCA)  should pay the rent tax on the export of crude oil.  The 
rent tax was calculated based on the actual value of  the exported volume of crude oil and its market 
price depending on the quality of crude oil with th e deduction of transportation costs.  The market 
price was defined as weighted average price of prevailing sale prices in the world market during the (daily) reporting period in relation to a range of most  similar brands of crude oil. The list of similar 
brands of crude oil was defined by the Governme nt of Kazakhstan.  The rent tax rates were 
established according to the sliding scale starting from 1 per cent at the market price of US$ 19 per barrel and 33 per cent at the world price of U$ 40 and above. The tax period for the rent tax 
represented one calendar month.  
The second model suggested the taxation conditions as stipulated in the PSA in accordance with the 
provisions of the tax legislation a pplied on the date when the contract was signed.   Under this model 
of taxation, the conditions of the PSA were fixed an d could not be changed subsequent to legislation 
changes without having both parties' agreement. 
Question 129 We seek in tabulated form details of all export  duties currently maintained.  We ask that the 
table include columns for: 
- the tariff code for the product 
- the product description 
- the level of the export duty 
- all relevant laws, regulations and decisions relating to the measure 
- date of elimination. 
Answer: 
In accordance with the Government Resolution of 5 June 2000 No. 841 th e export customs duties 
were imposed on limited list of goods and such duties were used on the base of MFN, with the 
exception of goods exporting to the member-countries of Customs Union. Any changes of rates of the 
export customs duties were subject to official publ ication. A free trade regime without exemptions 
was established within the  Customs Union between  Belarus, Russia, Kyrgyzstan, Tajikistan and 
Kazakhstan. In this connection, export duties were not applied among member-countries of the 
Customs Union on listed below goods.  
Table 7 - Rates of Customs Duties for Goods E xported from Kazakhstan outside the Customs Union 
HS number Description of Goods * Rate of Duty 
(% of customs value or 
in €) 
4101 Raw pelts of cattle or animals of horse family, with hair or 
without hair, splitting or non-splitting.  
 20, but not less than 
200 € per 1000 kg  WT/ACC/KAZ/50 
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 HS number Description of Goods * Rate of Duty 
(% of customs value or 
in €) 
4102  Raw pelts of sheep or lamb s, wooly or non-wooly, splitting or 
non-splitting, except exclude d according to Note 1 в for this 
group. €20, but not less  
than €200 per 1,000 kg 
4103 Other raw skins, with hair or without hair, splitting or non-
splitting, except excluded by Note 16 or 1 в for this group. €20, but not less  
than €200 per 1,000 kg 
5101- 
5104 00 000 0 Un-carded and uncombed wool;  €10, but not less  
than €50 per 1,000 kg 
7204** Iron-and-steel waste and scrap; ferrous metal ingots for re-
melting (charging ingots) €40, but not less  
than €35 per 1 tonne 
7302 Ferrous metal products, used for railway lines and tram-lines: 
rails, flange rail and rack rails, switch blades, point frogs, 
regulating rods and other cross connections, crossties, splice 
bars and base-plates, wedges, bedplates, hood joint bolts, bad plates and bracing wires, foundation slabs, cross bars and other 
details for connection and bonding of rails.  €40, but not less 
than €35 per 1 tonne 
7326 90 600 0 Other ventilators, non-mechanical, guttering, hooks and like 
articles used in the building industry, n.e.s., of iron or steel €40, but not less 
than €35 per 1 tonne 
7404 00 Copper waste and scrap €30, but not less  
than €350 per 1 tonne 
7601 - 7616 Secondary unprocessed aluminum and aluminum products. €15, but not less  
than €100 per 1 tonne 
8607 Parts of locomotives and motor-wags of trams and rolling-
stocks.  €40, but not less  
than €35 per 1 tonne 
*  The nomenclature of goods is determined both by code and by description of goods. 
**  Rates of the exported customs duties for the indicated goods were not used in respect of the European 
Union Countries. 
Question 130 
The first and second sentences of paragraph 139 impl y that export duties have been introduced 
to displace products that would otherwise h ave been imported with domestic products 
("balance domestic demand", "ensure supply of raw materials to domestic enterprises") or 
otherwise distort trade.  This is unacceptable,  and inconsistent with GATT Articles II and 
XXIII.  Discriminatory export duty exemptions inconsistent with GATT Article I that are 
described in paragraph 140 can also be made WTO consistent through the elimination of export 
duties.  We request that a timetable be set for the elimination of all export duties. 
Answer: 
Application of export duties was unacceptable, and inconsistent with GATT Article II and XXIII, and 
that discriminatory export duty exemptions were inc onsistent with GATT Article I.  They requested a 
timetable to be set for the elimination of all e xport duties.  Export duties were applied on a very 
limited number of goods mainly for fiscal purpose and, as such, did not violate provisions of GATT. 
Export duty exemptions applied only toward the countries within the Customs Union.  Moreover, application of export duties were not pr ohibited by the WTO Agreements.    
Question 131 
We seek a table with all the export duties by HS number and information on exemptions. WT/ACC/KAZ/50 
Page 70 
 
 
 Answer: 
In accordance with the Government Resolution of  5 June 2000 No. 841 the export customs duties are 
imposed on limited list of goods and such duties are used on the base of MFN, with the exception of 
goods exporting to the member-countries of Customs Union.  Any changes of rates of the export 
customs duties are subject to official publication. 
A free trade regime without exemptions was establis hed within the  Customs Union between Belarus, 
Russia, Kyrgyzstan, Tajikistan and Kazakhstan. In  this connection, export duties are not applied 
among member-countries of the Customs Union on  listed below goods.   Table 7 refers. 
Question 132 
Is Kazakhstan prepared to apply MFN treatment co ncerning export duty exemptions on sales of 
non-ferrous scrap to the EU?  On what basi s would it not apply MFN in this case? 
Answer: 
Under the Agreement between the Government of th e Republic of Kazakhstan and the European Coal 
and Steel Community on Trade in Certain Steel Pr oducts (Article 2. p.3), quantitative restrictions, 
customs duties, charges or any similar measures on  the export of ferrous scrap and waste under the 
EC Combined Nomenclature heading 7204 are not a pplied among the parties.  Based on the above-
mentioned Agreement, the Government Resolution No. 841 stipulates that cu stoms duties are exempt 
from the export of ferrous scrap and waste to the European Union member-states.  In the case of 
export duties for non-ferrous metal scrap, the MFN tr eatment applies toward third parties, except for 
member-states of the EurAsEC Customs Union.  
Question 133 Survey of Foreign Trade Regime (WT/ACC/KAZ/40), p. 25: Please provide updated 
information on all export duties (including hi des and skins and wool; ferrous and non-ferrous 
scrap and waste), including on any plans to phase out these duties.  
Answer: 
In accordance with the Government Resolution of  5 June 2000 No. 841 the export customs duties are 
imposed on limited list of goods and such duties are used on the base of MFN, with the exception of 
goods exported to the member-countries of the Eur asian Economic Community. Any changes of rates 
of the export customs duties are subject to official publication. 
In accordance with the Agreemen t on Eurasian Economic Community between the Republic of 
Belarus, the Russian Federation, the Republic of  Kyrgyzstan, the Republic of Tajikistan and the 
Republic of Kazakhstan, a free trade regime in co mmodity without exemptions and restrictions was 
functioning among the member-countries. In this regard, export duties are not imposed on goods exported to the member-countries.  The list of such goods is given below:  
Export customs duties on a limited number of ag ricultural goods, including wool, large and small 
cattle skins, horse, sheep and lamb skins, leather and fleece, are introduced in order to balance the 
demand, provide processing industry with domestic raw materials, and increase the revenues of the 
state budget. Such measures therefore do not contradi ct with paragraph (i) of Article XX of GATT. 
Export customs duties on ferrous scrap and waste,  iron and steel products, copper scrap and waste, 
unprocessed secondary aluminium, and spare parts of railway and trams are set by the Government Resolutions of 14 November 2000 No.1713, and as of 5 June 2000, No. 841, in order to balance the  WT/ACC/KAZ/50 
 Page 71 
 
 
 needs of the domestic market for ferrous and non-ferrous scrap and waste and to provide raw 
materials to domestic industries.  
Question 134 
Paragraph 142:   Please confirm that Kazakhs tan has eliminated minimum export prices and 
give the citation of implementing legislation. 
Answer: 
The Government Resolution No. 994 of 19 July 1997 has eliminated contract registration at the 
commodity exchange, and the Government of Kazakhstan does not appl y minimum export price 
requirement.   
Question 135 We seek in tabulated form details of all minimu m export prices.  We ask that the table include 
columns for: 
- the tariff code for the product; 
- the product description; 
- the level of the minimum export prices; 
- all relevant laws, regulations and decisions relating to the measure; 
- date of elimination; and 
- All minimum export prices that are currently maintained will need to be eliminated 
upon accession in order to achieve conformity with GATT Article XI. 
Answer: 
The representative of Kazakhstan highlighted that  the Republic of Kazakhstan does not use minimum 
export prices. 
- Export restrictions 
Question 136 It has come to our attention that Kazakhstan reg ularly imposes seasonal export restrictions for 
mazut and diesel.  Could clarification on this point be provided?  In this context, we would also 
appreciate further information on the different provisions of the Law on Petroleum Products 
which came into force in July 2003 in terms of their WTO compliance. 
Answer: 
The restrictions on mazut and diesel export are applied only during spring and autumn harvesting 
works, which is the period when demand for such products rise among the agricultural goods 
producers.  Nevertheless, the K azakh Government adopted the decision to impose export duties on 
mazut and diesel as an alternative to the restriction on export of those products.  In order to implement 
the decision the Ministry of industry and trade is developing a draft Resolution of the Government of Kazakhstan on implementation of export duties on mazut and diesel.  
Nonetheless, maintaining such measures appears to be  reasonable in regard to emergency situations, 
foreseen by the Article XI of GATT, which says  that "…export prohibitions or restrictions 
temporarily applied to prevent or relieve critical s hortages of foodstuffs or other products essential to 
the exporting contracting parties."  In this regard , Kazakhstan leaves to itself the decision making on WT/ACC/KAZ/50 
Page 72 
 
 
 implementation of temporarily prohibitions as a matt er of emergency measure, when export duties can 
not serve as sufficient barrier to export of these products.  
Question 137 
WT/ACC/SPEC/KAZ/8, paragraphs 144-149.  We would suggest to add further, clear 
information to this section on the justificatio n of the export licensing requirement for the 
various categories of goods, including clarification of the terms "economic safety" and "economic security" ment ioned in Paragraph 148. 
Answer: 
At present Kazakhstan does not apply export licensing in terms of "economic safety". In accordance 
with the Law of the Republic of Kazakhstan as of 17 April 1995 No. 2200 "On Licensing" export 
licensing is introduced to ensure the national secur ity, environmental protection, protection of human 
life and health.  This measure is in full compliance with Article 21 of GATT. 
The list of goods subject to licensing are provided in Annex 5. According to the Law of the Republic of Kazakhs tan "On Licensing", the procedure of issuing 
licenses both for import and export is the same.  The period of processing and issuing a license is not 
longer than one month, while for small-scale enterp rises such procedure takes no more than ten days, 
in order to support the development of the small- and-medium scale enterprises in Kazakhstan. The 
standard fee for export license is 6 MCI (Monthly Calculated Index) equivalent to US$ 404 as of 
June 2004. 
Question 138 
Paragraph 143:  Does Kazakhstan enforce a ban on covered by HS categories 4401, 4404, 4406-
4409, and 4418?  If not, an export ban violates Article XI of the GATT. 
Answer: 
The representative of Kazakhstan further noted that for the purposes of preservation of forests, 
reduction of instances of illicit lumbering, export of lumber, sawed timber, and wood materials, listed 
under groups 4401, 4404, 4406-4409, and 4418, is prohibited by the Resolution of the Government 
No. 785 of 16 July 2002. In pursuance of the Agreement concluded with the European Union on trade in products of steel, a number of quantitative restri ctions were introduced on specific types of steel 
products exported from Kazakhstan to the European Union countries.   
Some members of the Working Group asked the representative of Kazakhstan to confirm if 
Kazakhstan enforced a ban on production of goods cove red by HS categories 4401, 4404, 4406-4409, 
and 4418, and if not, an export ban violated Article XI of the GATT.  The representative of 
Kazakhstan replied that Kazakhstan is a forest-poor country, where only 4.6 per cent of the country's 
vast territory is covered by forests.  The numbe r of illegal lumbering and export of lumber, sawed 
timber and wood materials reached th e level, when a serious threat is made to the nature of the 
country. Against this background, the Government  adopted a Resolution "On Forest Management 
Related Issues" of 21 November 2003 No. 1163 and No . 785, which introduced export bans for the 
above forestry products.    WT/ACC/KAZ/50 
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 Question 139 
There are other methods of preventing illegal logging.  What are Kazakhstan's plans for 
eliminating the ban on export of wood produc ts and replacing it with a GATT-compatible 
program? 
Answer: 
The applied restriction is a forced measure in or der to reduce serious negative environmental impact 
of massive reductions of national forests. In this regard, the introduction of export ban is justified in 
the context of point 2 (a) of the Article XI of GAT T, which allows export proh ibitions or restrictions 
temporarily applied to prevent or relieve critical s hortages of food stuffs or other products essential to 
the exporting party.    
Question 140 
Does Kazakhstan have or enforce any bans or other quantitative restrictions on ferrous or 
nonferrous scrap metal?  If so, it should be re ported in the text, along with the reason for the 
restriction and its justification. 
Answer: 
In accordance with the Government Resolution of 5 December 1998 No. 1243, "On Introduction of 
Export and Import Restrictions for Certain Goods", the following metals are subject to export ban:  
HS category List of Goods 
7602 00 110   turnings, cutting waste, debris and wast es of the milling production, sawdust and wastes of 
cutting; waste of foil with paint with different covering or fastening with width (excluding the 
base) not more than 0.2 mm.                
7602 00 900   Scrap     
7604 10 100   Unalloyed aluminium bars 
7605          Aluminium wire 
7503 00       Nickel waste and scrap  
 
Question 141 
Paragraph 144: As Kazakhstan's licensing syst em covers approximately the same goods for 
import as for export, why are import license s non-automatic and expo rt licenses automatic? 
Kazakhstan should provide a table listing all its export licensing requirements, by HS number, 
their justification, fees charged, and the Ministry that issues the license.   
Answer: 
As in the case of import licensing, export li censing procedures are regulated by the Law of 
Kazakhstan "On Licensing".  According to Article XVII of the Law, licenses are issued within a 
maximum of a month, for small businesses –within a maximum of ten days from the date of 
submission of application and all necessary documenta tion.   Hence, export licensing as well as 
import licensing procedures applied in Kazakhstan we re non-automatic.  Export licensing rules used 
in Kazakhstan is provided in Annex 1. 
Question 142 
What is the WTO justification for licensing of precious stones? WT/ACC/KAZ/50 
Page 74 
 
 
 Answer: 
Currently the export licensing of precious stones is not provided. The cancellation of this measure was 
provided for by the Resolution of the Government  of the Republic of Kazakhstan "On Amendments 
of Resolution of the Government of the Repub lic of Kazakhstan of 30 June 1997 No. 1037" of  
29 December 1998 No. 1347 . 
Question 143 
These sections indicate that a number of export r estrictions are maintained (including licensing 
requirements).  We seek in tabulated form details of all export restrictions.  We ask that the table include columns for: 
- the tariff code for the product; 
- the product description; 
- a description of the measure, including its purpose; 
- the entity (or entities) responsi ble for applying the measure; 
- all laws, regulations and decisions relating to the measure; and 
- WTO justification or the date of elimination. 
In the context of the proposed table, please indi cate whether the licensing is automatic or non-
automatic. 
Answer: 
The representative of Kazakhstan has noted that the requested tables can be found in Annex 3 (the list 
of regulated services referred to the sphere of  natural monopoly in the Republic of Kazakhstan). 
Question 144 We request that details of Kazakhstan's policies and requirements on the export of grains be 
transcribed to the requested table of export restrict ions (including with details of dates of/for 
elimination), not excluding in rel ation to the following matters: 
- any quantitative or other restrictions on th e export of grains in general, or to 
particular countries, that it maintains or has recently maintained, or that are 
planned; 
- any export quotas that it maintains or ha s recently maintained, or that are planned; 
- any requirements relating to the price of exported grains; and 
- any permissions/approvals applicable to the export of grains. 
Answer: 
There are no quantitative or any other restrictions  on grain export (as for any other agricultural 
products).  In accordance with the acting legisl ation of the Republic of Kazakhstan there are no 
policies or requirements to impose/maintain certa in prices on grain for exportation, as well as there 
are no sanctions/permissions applicable to the export of grain. 
The export customs duties for grain had been cance lled in 1996.  Export customs duties on a limited 
number of agricultural goods, including cattle hides or hides of animals of the family Equidae, 
sheepskins or lambskins, fleece, leather, wool, we re introduced in accordance with the Government 
Resolution of 5 June 2000 No. 841 in order to  achieve demand balance, secure supply of raw 
materials to domestic processing industry enterprises and increase state budget revenue.  WT/ACC/KAZ/50 
 Page 75 
 
 
 In accordance with the Convention on  international trade in species of wild flora and fauna that are 
under the threat of extinction, some flora and fa una species listed in Annexes I, II and III of the 
Agreement, export of such objects is done based on the permission issued by CITES in Kazakhstan. 
-  Export subsidies 
Question 145 
Questions and replies (WT/ACC/KAZ/37/Add. 3), Question 28; Survey of Foreign Trade 
Regime (WT/ACC/KAZ/40), p. 27;  WT/ACC/SPEC/KAZ/8, paragraph 156-158:  Please clarify further who may benefit from the subsidies for transport costs in the form of discount coefficients – both domestic industry and foreign investors? 
Answer: 
The decreasing coefficient on tariffs for railway tr ansportation is provided both for the domestic and 
foreign producers on equal terms.  
Question 146 
Generally, we encourage Kazakhstan to make a proper subsidy notification for all subsidies 
granted according to Article 25 ASCM. 
Answer:  
A standard notification on all subsidies granted in compliance with the provisions of Article are listed 
through Annexes 6 and 7. 
Question 147 
Paragraph 150:  Please provide more informatio n on the benefits provided for export of 
nonferrous metals and gold. 
Answer: 
The Development Bank of Kazakhsta n did not provide and, under the present legislation, may not 
provide export subsidies to its clients. Credit terms for export operations, stipulated by the Law of the 
Republic of Kazakhstan "Concerning the Devel opment Bank of Kazakhstan" of 25 April 2001 
No. 178-II, are standard and do not provide for any be nefits.  Under Article 16 of the Law, "charter 
capital of the Development Bank may not be used for crediting purposes". According to the Articles 9 
and 13 of the Law, the Development Bank may attr act loans solely for an interest rate, with a 
condition to return on a fixed date, using own assets as  a collateral. Therefore, the Development Bank 
funds its credit operations through borrowing on the domestic and external markets, where the Bank 
may borrow only under free market rules. 
While according to the Article 3, WTO Agreem ent on Subsidies and Countervailing Measures, 
provision of export credits at rates lower than those established for the funds used, done by institutions operating under the authority of the Gove rnment, is deemed as banned export subsidies, 
according to the Article 12 of the Law, "the amount of interest rate for loan s issued shall be assessed 
based on average cost of borrowing and operating e xpenses of the Development Bank".  Therefore, 
the Development Bank is explicitly banned from subsidizing of loan interest rates, in other words, 
from issuing loans at rates lower than  the cost of funds attracted.  In this regard, the crediting practices 
used by the Development Bank shall not be deemed as banned export subsidies. WT/ACC/KAZ/50 
Page 76 
 
 
 Question 148 
Survey of Foreign Trade Regime (WT/ACC/KAZ/40), p. 26; WT/ACC/SPEC/KAZ/8, 
paragraph 150. 
We would seek further information on all expo rt subsidies currently granted in Kazakhstan. 
Document WT/ACC/SPEC/KAZ/8 only refers to so ft loans for export of non-ferrous products 
and gold mentioned, on which we would need fu rther detailed information.  Please also clarify 
whether these are indeed the only existing expo rt subsidies and that other measures such as 
mentioned in the Survey of Foreign Trade Regime are indeed no longer in force. 
Answer: 
The Development Bank of Kazakhstan issued lax ex port credits on non-ferro us and golden products, 
several workgroup members requested detailed informa tion about this type of export subsidies.  The 
Development Bank of Kazakhstan did not provide and,  under the present legislation, may not provide 
export subsidies to its clients. Crediting conditions for export operations, stipulated by the Law of the 
Republic of Kazakhstan "About the Developm ent Bank of Kazakhstan" as of 25 April 2001 
No. 178-II, are standard and do not provide for any benefits. According to the Article 16 of the Law, 
"charter capital of the Development Bank may not be used for crediting purposes".  According to the 
Articles 9 and 13 of the Law, the Development Bank may attract loans solely for an interest rate, with a condition to return on a fixed date, using own asset s as a collateral.  Therefore, the Development 
Bank funds its credit operations through borrowing on  the domestic and external markets, where the 
Bank may borrow only under free market rules. 
According to the Article 3, WTO Agreement on S ubsidies and Compensation Measures, provision of 
export credits at rates lower than those established for the funds used, done by institutions operating 
under the authority of the Government, is deem ed as banned export subsidies, explained that, 
According to the Article 12 of the Law, "the amount of interest rate for loan s issued shall be assessed 
based on average cost of borrowing and operating e xpenses of the Development Bank".  Therefore, 
the Development Bank is explicitly banned from subsidizing of loan interest rates, in other words, 
from issuing loans at rates lower than  the cost of funds attracted.  In this regard, the crediting practices 
used by the Development Bank shall not be deemed as banned export subsidies. 
Question 149 
We note that the section on export subsidies ha s still to be completed.  However, we would like 
to request that Kazakhstan give details of any prohibited export subsidies currently provided.  
Please specify the products and sectors affected , level of subsidy, and any plans to phase out 
each of the subsidies. 
Answer: 
The Development Bank of Kazakhsta n did not provide and, under the present legislation, may not 
provide export subsidies to its clients. Credit terms for export operations, stipulated by the Law of the 
Republic of Kazakhstan "Concerning the Devel opment Bank of Kazakhstan" of 25 April 2001 
No. 178-II, are standard and do not provide for any benefits. Under Article 16 of the Law, "charter 
capital of the Development Bank may not be used for crediting purposes". According to the Articles 9 
and 13 of the Law, the Development Bank may attr act loans solely for an interest rate, with a 
condition to return on a fixed date, using own assets as a collateral.  Therefore, the Development Bank 
funds its credit operations through borrowing on the domestic and external markets, where the Bank 
may borrow only under free market rules.  WT/ACC/KAZ/50 
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 While according to the Article 3, WTO Agreem ent on Subsidies and Countervailing Measures, 
provision of export credits at rates lower than those established for the funds used, done by institutions operating under the authority of the Gove rnment, is deemed as banned export subsidies, 
according to the Article 12 of the Law, "the amount of interest rate for loan s issued shall be assessed 
based on average cost of borrowing and operating e xpenses of the Development Bank".  Therefore, 
the Development Bank is explicitly banned from subsidizing of loan interest rates, in other words, 
from issuing loans at rates lower than  the cost of funds attracted.  In this regard, the crediting practices 
used by the Development Bank shall not be deemed as banned export subsidies. 
Question 150 
Does Kazakhstan have any export performance requirements, e.g., in free trade zones, or any 
import duty drawback schemes? 
Answer: 
The Republic of Kazakhstan does not grant any preferences conditional to export performance 
requirement and does not apply import duty drawbacks.   
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
-  Industrial policy, including subsidies 
Question 151 Paragraph 159:  Kazakhstan's Factual Summary  lists the tax exemptions granted under the 
Law on State Support to Direct Investment.    
It is our understanding from previous submissions that, pursuant to Article 7 of this law, 
enterprises that invest in amounts less than US$ 10 million in priority sectors of the economy 
receive standard tax benefits for a limited period of time depending on the sector of the economy and the amount of such investments.  
Article 5 of this legislation states  that one of its goals is the "development of export-oriented and 
import-replacing production" (WT/ACC/KAZ/10, A ttachment A).  To the extent that these 
incentives are contingent upon export or import s ubstitution, they could constitute a prohibited 
export subsidy under Article 3.1 of  the WTO Subsidies Agreement.  
Could you please provide more information regarding the specific income tax exemption 
granted under Kazakhstan's Law on State Support to Direct Investment? 
Please explain how, and in what sectors, the goal of the "development of export-oriented 
production" is achieved. 
Could you please explain whether incentives provided through this program are contingent on 
the use of domestic over imported products?  If so, please explain how Kazakhstan plans to 
eliminate or bring this program into compliance with WTO provisions. 
Answer: 
The Law "On Investments" of 8 January 2003 No. 373 (WT/ACC/KAZ/42 refers) has invalidated the 
Law "On Foreign Investments" of 27 December 1994 No. 266-XIII and the Law "On State Support of 
Foreign Investments" of 28 February 1997 No. 75-I. The Law "On Investments" does not contain a WT/ACC/KAZ/50 
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 requirement regarding the volume of investments to be  made in order to be eligible for investment 
preferences.   
The Law "On Investments" does not contain an y provision that makes investment incentives 
contingent upon export or import substitution, th erefore, investment incentives can not constitute 
prohibited export subsidies under Ar ticle 3.1 of the WTO Agreemen t on Subsidies and Countervailing 
Measures.  According to Article 11 of the Law "On Investments", the Government of Kazakhstan introduced investment preferences with the objective to create a favourable investment climate for 
diversification of economic devel opment of Kazakhstan, attract investments for establishment of new 
and expansion/modernization of  existing production facilities, technological advancement and 
innovative development, a nd creation of new jobs. 
Investment tax preferences include:  а) the corporate income tax preferences; b) the property tax 
preferences; c) the land tax preferences. The corpor ate income tax preferences entitle the taxpayer to 
gradually deduct from the aggregate annual income the cost of the commissioned fixed assets in equal 
parts throughout the term of the preferential treatme nt.  Pursuant to the effective legislation, the 
30 per cent corporate income tax is assessed on the taxable income of taxpayers - legal entities, as 
adjusted, less the losses incurred.  The duration of the investment tax preferences depends on the 
volume of investments made into fixed assets, th e maximum term can not exceed five years.   
Question 152 
Paragraph 158: The Factual Summary states, wi th regard to Kazakhstan's transportation 
subsidy program, that "according to the decree No .  24-OD, the procedure of granting discount 
coefficients [is] not contingent on export  performance of companies and [applies] to 
transportation of goods for both domestic consumption and export."     
Could you please explain whether any other i ndustries receive this type of subsidy? 
Answer: 
In 2001-2002 discount coefficients were granted fo r iron ore products, rolled products, coal, sulphuric 
acid, copper ore, and fuel oil.  The discount coe fficients represented temporary measure and were 
established for limited periods of time.  The crite ria of expediency for cancellation of discount 
coefficients were economic inefficiency of further a pplication of the discount coefficients for the state 
and/or the transport company or disparity with the main criteria.   
The list of goods transported in 2002 using discount  coefficients for 2002 and for 2003 are listed in 
Annex 6 and 7.  In 2003, decreasing coefficients did also apply to distribution of electric power by 
OJSC "KEGOC" (Annex 8). 
Question 153 
Could you please provide the Working Party a copy of Decree No. 24-OD "On Establishing the 
Rules on Introduction and Cancellation of  Discount Coefficients to the Tariffs on 
Transportation by Railroad, Subject to State Regulation."  
Answer: 
The text of the Order of the Chairman of the Anti-Monopoly Agency "On Adoption of Rules for 
Introduction and Discontinuation of Decreasing Coeffici ents for Tariffs on Regulated Rail Freight" of 
30 September 1999, No. 24- ОD is available through document WT/ACC/KAZ/50/Add.1.   WT/ACC/KAZ/50 
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 Question 154 
According to earlier submissions from Kazakhs tan, it appears that the government provides 
support to the steel company, Ispat-Karmet, in  the form of freight rate discounts on the 
transportation of exports (WT/ACC/KAZ/37, response to question 18).   
To the extent that these rate discounts are cont ingent upon export, they could constitute a 
prohibited export subsidy under Articl e 3.1 of the WTO Subsidies Agreement. 
Answer: 
The practice of granting discounts for railway car go transportation for individual companies was 
discontinued since the enactment of the Rules on Introduction of Discount Coefficients for Railway 
Transportation Tariffs as of 30 September 1999.   
Question 155 
Could you please explain what is meant by the term "0.8 decreasing rate?" 
Answer: 
"0.8 decreasing coefficient" meant a 20 per cent railway tariff discount.   
Question 156 
Please also explain whether any other companies receive this type of subsidy. 
If this program is in fact contingent upon ex port performance, please explain how Kazakhstan 
plans to eliminate or bring this program into compliance with WTO provisions. 
Answer: 
The main criteria of expediency of the establishment of discount coefficients were the maintenance of 
tax payments to the budget, attraction of transpor t flows, increasing transport flows, possibility of 
using unutilised or under-utilised sections, ecological da nger of by-product of industrial production.  
The discount coefficients were applied under the co ndition that the client did not have debt accounts 
receivable or if they were settled in accordance with  the adopted schedule, and under the condition of 
increasing (or maintaining) the volume of transport flows in comparison with the previous period.  
The discount coefficients represented temporary me asure and were established for limited periods of 
time.  The criteria of expediency for cancellation of  discount coefficients were economic inefficiency 
of further application of the discount coefficients  for the state and/or the transport company or 
disparity with the main criteria.   
Therefore, the practice granting di scount coefficients could not be considered as prohibited export 
subsidies within the meaning of Article 3 of the WTO Agreement on S ubsidies and Countervailing 
Measures and Article XVI of the GATT 1994. 
Question 157 
Earlier submissions from Kazakhstan (e.g., WT/ACC/KAZ/6/Add.2 in the response to 
Question 84) state that preferential loans are provided to certain industries for export promotion or import substitution purposes.   WT/ACC/KAZ/50 
Page 80 
 
 
 To the extent that these loans are contingent upon export or import substitution (i.e., benefits 
contingent upon the use of domestic, rather th an imported goods), they could constitute a 
prohibited subsidy under Article 3.1 of the WTO Subsidies Agreement. 
Please explain what institution (public or private) provides these loans and which industries 
make use of these loans. 
Please provide information regarding the term s and conditions attached to the loans and 
explain how these terms and conditions differ from those attached to commercial branch (i.e., 
non-preferential) loans. 
Please also explain whether the loans provided under this program are contingent upon the use 
of domestic over imported products. If so, plea se explain how Kazakhstan plans to eliminate or 
bring this program into compliance with WTO provisions. 
Answer: 
In accordance with the Presidential Decree of 16 July 1994 No. 1815, the main functions of the 
Export-Import Bank of Kazakhstan (Eximbank) incl uded:  (i) mobilization and administration of 
foreign loans under state guarantee; and (ii) fina ncing companies of Kazakhstan with the aim to 
stimulate import of technology, equipment a nd other essential products for implementation of 
structural reforms in the real sector of Kaza khstan's economy.  Eximbank was a public bank, which 
performed the functions of a development bank, i. e., provided soft loans for financing investment 
projects implemented in various sectors in line with the economic priorities of the Government of Kazakhstan. 
Eximbank was financing the investment projects for the duration of three to five years; under the 
interest rate – 6 per cent and with the grace period of two to three years.  The uniform terms and conditions were applied by the Ex imbank independently on the types of  beneficiary enterprises and on 
export or domestic market orientati on of their products.  The key crite ria used for determination of the 
investment project was based on whether the benefi ciary company invested into  restructuring of 
existing and  building of new high added value a dded industries, but not on whether the company's 
products were export oriented or ser ved for import substitution. .    
Question 158 
According to earlier submissions (e.g., the re sponse to Question 10 of WT/ACC/KAZ/37/Add.1) 
Kazakhstan provides tax exemptions to exporters of yellow phosphorus, ground phosphate rock 
and phosphate fertilizer.  It is unclear wheth er these tax exemptions are in conformity with 
Article 3 of the WTO Subsides Agreement. 
Please provide more information regarding the nature of these tax breaks and preferences. 
Could you also explain whether these tax prefe rences are contingent upon the export of the 
above mentioned products? If so, please explain how Kazakhstan plans to eliminate or bring 
this program into compliance with WTO provisions. 
Answer: 
"Kazphosphat", Ltd.  receives corporate income ta x, property and land taxes preferences under the 
terms granted for investment projects implemented in priority sectors of the economy in accordance 
with the Law of Kazakhstan "On Investments". The criteria used for granting tax preferences 
includes:  (a) the investment activity of the compan y is included into the Governments list of priority 
sectors; (b) investments are made with the purpose of building a new or modernization of existing  WT/ACC/KAZ/50 
 Page 81 
 
 
 production facilities; and (c) application and all othe r submitted documents prov e financial, technical 
and management capacity of the company for impl ementation of the given investment project.  
Kazakhstan assures that the criteria used for gran ting tax preferences does not violate provisions of 
Article III of the ASCM.  
-  Technical barriers to trade Question 159 Paragraph 166: Please confirm that Kazakhstan' s standardization system recognizes that all 
mandatory technical regulations, whether termed "standards" or not, must meet WTO criteria 
to be applied consistently with WTO provi sions.  Please confirm that non-mandatory 
requirements are "standards".   
What has Kazakhstan done to eliminate mandatory  national "standards" in place at the time 
the new laws were enacted that do not meet WTO criteria as a technical regulation?  How many 
such hold-over mandatory requireme nts remain unreviewed?  Please indicate, in the text of the 
factual summary, Kazakhstan's plans fo r addressing these holdover requirements? 
Answer: 
In the present state standardization system of the Republic of Kazakhstan "standard" includes both 
compulsory and recommended requirements. Thereby,  under the Law of RK "On Standardization", 
the following requirements of the state standards are mandatory: requirements for safety of products, processes (work), services, environment protection, life , health and property of citizens, requirements 
for ensuring technical and informational compatibilit y, products interchangeability, unity in methods 
of their control and unity in marking. The other standards' requirements are recommended, including 
the ones ensuring product quality consumer characteristics. 
The main principles of state standardization ar e based on the requirements stipulated in WTO 
Agreement on TBT and reflect consent, openness, voluntarism, setting forth equal standardization 
requirements for local and foreign manufacturer s and suppliers.  Normative standardization 
documents shall not be technical barriers on pr oduction and trade with other countries. The 
requirements set in standardization normative doc uments must be based on the achievements in 
science, engineering and technology, and shall not c ontradict the laws of the republic, requirements of 
international, regional, and national standards of other countries, rules and recommendations on 
standardization. In development of standardi zation normative documents, international technical 
regulations, standards or their complete drafts must  be used except for the cases when they fail to 
meet requirements for safety of life and health of people, environment protection and technical 
regulations existing in th e Republic of Kazakhstan. 
If no international standards are applicable at the phase of a standardization normative document 
development or the state standard under development fails to meet international requirements, notices 
shall be published in mass media (web-site) or sp ecialized publications of the authorized boy (the 
Gosstandart) about the development of such sta ndards and about the differences in the technical 
content of standards, an annotation for discussi on, making comments and proposals by interested 
parties.  
The State standard of the Republic of Kazakhstan (ST RK 1.2-2002) regulated the detailed order of 
state standards development, alteration, and cancella tion. Under this standard the period of standards 
consideration and comments preparation by organizati ons located in the republic, shall not exceed one 
month since the date of their receipt, and for countri es that are trade partners to Kazakhstan, 60 days 
since placing the standards on the web-site of the Gosstandart. WT/ACC/KAZ/50 
Page 82 
 
 
 Normative standardization documents shall not be technical barriers on production and trade with 
other countries 
In order to bring the national system of technical regulation into conformity with the international 
practice, at present Kazakhstan is developing draft law "On Technical Regulation" aimed at further 
harmonization of the existed legislation with the requirements of WTO Agreement on TBT. 
The draft law concluded the following appr oaches based on the WTO Agreement on TBT: 
- mandatory requirements will be included into  technical regulations, whereas the (state, 
interstate, and company) standards require ments would be made as recommended of 
voluntary nature. 
- technical regulations will be developed and applied for the purpose to: (i) ensure that 
products and processes were harmless for the life and health of people and environment, 
including life and health of animals and plants ; (ii) ensure national security; (iii) prevent 
actions misleading consumers; (iv) remove technical barriers in trade as required in 
Article 2.2 of WTO Agreement on TBT; 
- technical regulation will be applied on the pr inciple of equal requirements to local and 
imported products and conformity procedures; 
- the technical regulations' requirements to pro ducts (services) and processes (work) will be 
set and applied uniformly regardless of th e country and (or) place of origin of the 
products (services) as required in Artic le 2.1 of WTO Agreement on TBT; 
- state standards will be applied equally, on op tional basis, and regardless of the place of 
origin of products as required by the Code  of Good Practice concerning preparation, 
approving, and application of standards; 
- norms and standards of international organiza tions will be used as basis for development 
of technical regulations and standards as require d in provisions 2.4 and 5.4 of the Code of 
Good Practice concerning WTO Agreement on TB T's standards preparation, approving, 
and application; and 
- legal support will provided by the single Enquiry Point open for all interested parties and 
providing information about the technical regulations, standards, and conformity 
procedures in effect and under development as well as about membership and participation of Kazakhstan in internati onal and regional standardization bodies and 
conformity evaluation systems, and other info rmation stipulated in Article 10 of the WTO 
Agreement on TBT. 
It is planned to adopt the document "On Technical Regulation" by the end of 2004 and to completely 
move to the technical regulation system that meet s international practice requirements.  During the 
next few years, it is planned to divide existing standards into mandatory technical regulations and 
voluntary standards, and to proceed with harm onization of national technical regulations and 
standards with international technical regulations and standards.  
-  Sanitary and phytosanitary measures 
Question 160 Please describe the provisions and operation of an y agreements or institutions that exist within 
the Customs Union or other preferential agreemen ts with Russia, Belarus, Kyrgyz Republic and 
Tajikistan concerning sanitary and phytosantiary measures. 
Answer: 
The Republic of Kazakhstan is a party to a numbe r of agreements on sanitary and phytosanitary 
measures in the framework of the EurAsian Economic Community (EurAsEC), among which  WT/ACC/KAZ/50 
 Page 83 
 
 
 members were the Russian Federation, the Republic  of Kazakhstan, Belarus, the Republic of 
Kyrgyzstan, and Tajikistan; as well as under the Commonwealth of Independent States (CIS), to 
which the Russian Federation, the Republic of Kaza khstan, Belarus, the Republic of Kyrgyzstan, and 
Tajikistan are members too.  
- Agreement on technical, medicine, pharmaceutical, sanitary, veterinary, and 
phytosanitary norms, rules and requirements concerning the goods imported from countries-members of the Commonwealth of Independent States of 28 September 2001:  the countries-participants agreed to apply the following uniform medicine, 
pharmaceutical, sanitary, veterinary, and phyt osanitary norms, rules and requirements 
concerning the goods imported from the CIS countries.  
- Agreement on cooperation in sanitary protection of the territories of the CIS countries of 
31 May 2001:  The countries-participants agreed  to mutually accept pe rmits issued by the 
national state sanitary-epidemiological servic es confirming hygienic testing of exported 
goods from one country-participant to the Agreem ent to the territory of another country-
participant.  
- Agreement on cooperation in vete rinary of 12 March 1993: Among the participants to the 
Agreement are the CIS countries and Baltic countries. That Agreement provides for 
development, signing and application of unifo rm Rules for State Veterinary Control of 
International and Interstate Tr ansportation of Animals; as we ll as permission for import of 
goods that were under veterinary control and originated from a country-participant to the 
Agreement with veterinary certificates attached  issued by veterinary services of countries-
participants to the Agreement. For that no sp ecial veterinary permission is required for the 
transit within territories of the c ountries-members to the Agreement. 
- Uniform Veterinary-Sanitary Requirements for Import of Wild Animals, Meat, Meat 
Products, and Other Animal Products in CI S was approved by the Intergovernmental 
Council of CIS Countries on Cooperation in Vete rinary on 6 April 2000. The veterinary 
services of CIS countries applied uniform rules for import of wild animals, meat, meat products, and other animal products, including 36 items in total. 
- Uniform Veterinary Requirement for Import of Animals, Animal Raw Materials, and 
Other Goods Subject to State Veterinary Co ntrol into the territory of the Eurasian 
Economic Community countries was approved by  the Resolution of the Interstate Council 
of the Eurasian Economic Community of 27 February 2004 No 161. The veterinary 
services of EurAsEC countries (Russian Federati on, Kazakhstan, Belarus, the Republic of 
Kyrgyzstan and Tajikistan) shall apply provisions of those uniform veterinary 
requirements. 
- Agreement on Cooperation in Plants Quaran tine of 13 November 1992 was approved in 
the field of plants quarantine the CIS countries the. The Provisions of the Agreement 
stipulates application of uniform quarantine ru les for import, export, and transit of the 
goods under quarantine being tr ansported between countries-participants to the 
Agreement; each export or transit delivery  of the goods under quarantine between the 
countries-participants to the Agreement sha ll be enclosed a phytosanitary certificate. 
Countries-participants of 8th conference on plants quarantine of the CIS and Baltic 
countries held on 27-28 October 1999 made a resolution stipulating that quarantine 
services shall request Import Quarantine Pe rmits only for seeds and planting material 
originating the CIS countries. 
Question 161 
We do not believe that a seven year transiti on will be necessary for Kazakhstan to fully 
implement the SPS Agreement, and in the absence of much more precise information to justify 
any sort of transition to full implementati on, we will seek full compliance upon accession. WT/ACC/KAZ/50 
Page 84 
 
 
 Answer: 
Kazakhstan will submit a phase-by-phase Plan of M easures for the next three to four years to 
harmonize the existing system of sanitary-epidemiol ogical welfare of the population, veterinary, and 
plants quarantine with the Agreement on SPM.  Acco rding to that Plan, Kazakhstan will change the 
length of the transitional period sought by it. 
Question 162 
Questions and replies (WT/ACC/KAZ/37/Add. 3), Question 44:  WT/ACC/SPEC/KAZ/8, 
paragraph 177:  The suggested transitional peri od of seven years is definitely too long. 
Generally, in order to assess whether any transi tional period could be accorded, Kazakhstan 
will have to justify the need very carefully with a detailed Action Plan, specifying each step to be 
taken, and the timeframe within which it will be accomplished.  
Answer: 
Kazakhstan will submit a detailed stage by stage Ac tion Plan for the next three years needed to 
harmonize the existing system of sanitary-epidemiol ogical welfare of the population, veterinary, and 
plants quarantine with the requirements of the SPS Ag reement.  Transitional period is needed in order 
to smoothly harmonize the existing Kazakh sanitary a nd phytosanitary rules and regulations with the 
international standards as well as to upgrade the outdated laboratory equipment carry out training of 
the necessary personnel. 
By the end of 2004, the Government plans to introduce a number of amendments to the Law "On 
Sanitary-Epidemiological Welfare of the Population". In particular, such key principles of the SPS 
agreement as transparency, non-discrimination, risk ev aluation, scientific proof, equivalency, etc. will 
be duly reflected in the anticipated amen dments to the relevant legislation.  
-  Trade-related investment measures 
Question 163 Questions and replies (WT/ACC/KAZ/37/Add. 3), Questions 46, 51; WT/ACC/SPEC/KAZ/8, 
paragraph 180:  In the information provided by Kazakhstan, the previously suggested ten year 
transitional period for TRIMs as concerns the en ergy sector is no longer explicitly mentioned; 
reference is only made to a "sufficient period of time".  Has Kazakhstan reviewed its position?  
Generally, in order to assess whether any transi tional period could be accorded, Kazakhstan 
will have to justify the need very carefully with a detailed Action Plan, specifying each step to be 
taken, and the timeframe within which it will be accomplished.  Please also provide further 
information on the planned steps to improve th e inconsistent provisions of the implementing 
regulations mentioned. 
Answer: 
The Government launched an industrial innovation program for the period of 2003-2015, which was 
aimed at boosting the real sector of the economy th rough implementing innovati ve industrial projects, 
ensuring a strong linkage between Research and De velopment and industrial sector, and building 
high-tech production facilities, all of which require d a sufficient transition period to bring the national 
legislation into conformity with the provisions of  the TRIMs Agreement.  Diversification of the 
economy and reduction of its vulnerability to vola tile prices of mineral resources on international 
markets constituted also the rationale behind the in vestment preferences granted by the government of 
Kazakhstan to both foreign and domestic companies investing into non-oil sectors.  Therefore, 
preferences given to local producers and service  suppliers under equal c onditions constituted an  WT/ACC/KAZ/50 
 Page 85 
 
 
 integral part of the comprehensive reform progr am launched by the government of Kazakhstan with 
the purpose of ensuring sustainable economic growth in the country.    
The Government of Kazakhstan w ill developing a detailed action plan for the period requested for 
joining the TRIMs agreement.     
Question 164 Paragraph 178: According to the Factual Summary, Kazakhstan's Law "Concerning the 
Subsurface and its Utilisation" of 27 January 1996 and the Law "On Oil" of 28 June 1995 
require the use of domestically pr oduced products and services.   
To the extent that these benefits are contingent up on export or import substitution (i.e., benefits 
contingent upon the use of domestic, rather th an imported goods), they could constitute 
prohibited subsidies under Article 3.1 of the WTO Subsidies Agreement. 
Could you please explain whether firms receive incentives contingent upon using domestically 
produced equipment, supplies, and services in  their operations? If so, please explain how 
Kazakhstan plans to eliminate or bring this program into compliance with WTO provisions. 
Answer: 
The legislation of Kazakhstan requires the use of domestically produced products and services 
provided that they meet the standa rds and other requirements as a result of the bidding process.  Both 
national and foreign companies were equally entit led to participate in the bidding process.  
The structure of industrial production is dominat ed by extraction and processing of hydrocarbon and 
mineral products, which provided the bulk of receipt s to the Republican budget.  The oil sector is the 
most attractive for both foreign and local investors, and forecasts show that the volume of foreign 
investments to oil production keep increasing, while  other sectors remain underdeveloped.  Hence, in 
order to ensure rational restructuring of the s ubsurface use, the government introduced the above 
mentioned provisions in its legislation with the view to achieve sustaina ble economic development 
through diversification of the national economy an d reduction of the economy's heavy dependence on 
mineral resources, creation of an environment condu cive to development of processing industries and 
production of high value added goods. Preferences are given to local producers of goods and local 
suppliers of services having everythi ng equal, e.g., provided that they meet fully all requirements set 
in the bidding process by investors.  Due to this , there is no discriminatory element against imported 
goods and services.       
The Government of the Republic of Kazakhstan is  developing a detailed action plan for the period 
requested for joining the TRIMs agreement 
Question 165 
We seek full details of all local content requi rements applied in relation to the mining and 
energy sector, including: 
- their legal basis; 
- the nature of the local content provisions; 
- the entities responsible for administering them; 
- their current scope of application; and 
- plans to eliminate them in order to achi eve conformity with the TRIMs Agreement 
upon accession. WT/ACC/KAZ/50 
Page 86 
 
 
 Answer: 
The legislation of Kazakhstan required the use of domestically produced products and services 
provided that they meet the standa rds and other requirements as a result of the bidding process.  Both 
national and foreign companies were equally entit led to participate in the bidding process.  
Hence, in order to ensure rational restructuring of  the subsurface use, the government introduced the 
above mentioned provisions in its legislation with the view to achieve sustainable economic 
development through diversification of the nati onal economy and reduction of the economy's heavy 
dependence on mineral resources, creation of an e nvironment conducive to development of processing 
industries and production of high value added goods.  Preferences are given to local producers of 
goods and local suppliers of services having everything eq ual, e.g., provided that they meet fully all 
requirements set in the bidding process by investors.  Due to this, there is no discriminatory element 
against  imported goods and services.       
Question 166 
Has the Law on Production Sharing Agreements been  enacted?  If not, where is it at in the 
legislative process?  If it has been enacted, please provide a description of any provisions that 
are inconsistent with the TRIMs Agreement in cluding, e.g., any local content requirements. 
Answer: 
The Draft Law of the Republic of Kazakhstan "On Production Sharing Agreements" has entered into 
force. 
-  State-trading entities 
Question 167 
We look forward to Kazakhstan's draft notifi cation pursuant to GATT Article XVII and the 
Understanding on that Article, and the transcript ion as appropriate of relevant information in 
respect of importation to the requested table of  non-tariff measures and relevant information in 
respect of exportation to the requested table of export restrictions. 
Answer: 
The Republic of Kazakhstan will analyze the en terprises whose activity can be covered by 
Article XVII of GATT and will submit the notif ication on state trade enterprises existing in 
Kazakhstan to the WTO Secretariat.  
- Free zones, special economic areas 
Question 168 
WT/ACC/KAZ/34/Rev.3:  This document mentions changes in the Law on Special Economic 
Zones.  Are these already available in English? 
Answer: 
The requested Law of the Republic of Kazakhstan "On Special Economic Zones in the Republic of 
Kazakhstan" dated 26 January 1996 No. 2823 with the amendments made by the laws of the Republic 
of Kazakhstan dated 5 July 2001 and 4 December  2003 is available from the Secretariat through 
document WT/ACC/KAZ/50/Add.1.  WT/ACC/KAZ/50 
 Page 87 
 
 
 Question 169 
WT/ACC/SPEC/KAZ/8, paragraphs 182-187:  Eventually, we will seek commitment from 
Kazakhstan that it will fully respect Article 3 ASCM and also refrain in the future from 
imposing any export requirements for either  subsidy programmes or advantages linked to 
establishing in a SEZ? 
Answer: 
The special economic zone ("SEZ") "Astana – New C ity" is established to facilitate the development 
of the left bank area of the river Ishym in th e new capital of Kazakhstan through attraction of 
investments and use of advanced technologies in construction, as well as through building modern 
infrastructure.  The Law of the Republic of Kaza khstan of 5 July 2001 "On Changes and Amendments 
to Legislative Acts of the Republic of Kazakhs tan on the Special Economic Zone" "Astana – New 
City" through Introduction of Changes and Amendm ents to Customs and Tax Codes of Kazakhstan 
provided for tax and customs benefits for construc tion of infrastructural assets, administrative and 
residential sectors in the territory of the establishe d SEZ.  Tax preferences are granted for:  (i) VAT 
levied on the turnover of goods, (works, services) sold in the territory of the SEZ if consumed in full 
in the process of construction; (ii) land tax levied on land lots located in the territory of the SEZ used 
as construction sites; and (iii) property tax, levied on objects constructed within the operations of the 
SEZ.  Customs duty exemption is granted for im ports of machinery and equipment required for 
construction works and services in accordance with the project cost estimates.    
The  legislation of Kazakhstan on free economic zon es contains no restrictions on participation of 
foreign parties, except for the restriction related to th e place of registration of the recipients of benefits 
which was a common requirement in many free economic  zones all over the world.  In particular, as 
for the SEZ "Astana – New City", customs and VAT  exemptions are granted to legal entities of 
Kazakhstan, non-residents operating through an entity w ith a long-term presence and registered in the 
city of Astana, natural persons engaged in entrepreneurship wit hout establishment of a legal entity, 
and residing on a long-term basis in the city of Astana. 
The Decree "On Special Economic Zones in the Rep ublic of Kazakhstan" and other legislative acts 
did not provide special preferences due to expor t performance of companies in special economic 
zones.  Attracting investment, modern technology,  and know-how to these zones are considered as the 
primary means to ensure that the accomplishmen t of objectives set by creating special economic 
zones.  To this end, the Tax Code of the Repub lic of Kazakhstan stipulates exemptions from the 
payment of land tax and property tax levied on fi xed assets, and a reduced rate of the corporate 
income tax (50 per cent) applicable to entities e ngaged in the following activities in special economic 
zones: 
- design, development, and implementation of pilot production and production of software, 
databases, and hardware; 
- IT development based on artificial immune and neuron systems; and 
- Research and Development for the developm ent and implementation of IT projects. 
The special economic zone "Aktau Seaport" was cr eated to facilitate socio- economic development of 
the region through building high-tech industry, attr acting new investments, creating new jobs and 
introducing modern administration and economic ma nagement methods.  The legislation on the 
establishment of the SEZ "Aktau Seaport" grants only duty free regime for goods imported for the 
needs of the SEZ. The Tax Code stipulates the special  tax regime, that provides the tax reduction of 
corporate income tax up to 100 per cent and land a nd property tax exemption, for enterprises that 
operated within the special econom ic zone " Aktau Seaport".  WT/ACC/KAZ/50 
Page 88 
 
 
 The legislation of Kazakhstan on special economic z ones did contain a provision that granted special 
contingent on export orientation and/or import substitution of enterprises. A new special economic 
zone "Park of Information Technologies" (PIT) is built in order to diversify the economy through 
production of information technologies and utilizati on of scientific and technical innovation capacity 
of the country.  The Government grants VAT a nd land-tax exemption, and reduction of corporate 
income tax up to 50 per cent for companies providing  the following types of services within the SEZ:   
- projection, development a nd implementation of softwa re and hardware production 
projects; 
- development of new information technolog ies using artificial immune and neuron 
systems; 
- conducting R&D and experimental hi gh-tech development projects. 
Pursuant to Chapter 30 of the Customs Code of Kazakhstan, "free customs zone" mean the customs 
regime, under which foreign and Kazakh goods are pl aced and used within the relevant territorial 
borders of a special economic zone exempt from customs duties and taxes,  except for excise on 
imported goods, and without non-tariff regulator y measures being applied to them, except for 
requirements regarding safety of goods. 
Question 170 
WT/ACC/KAZ/34/Rev.3:  This document mentions changes in the Law on Special Economic 
Zones. Are these already available in English? 
Answer: 
The requested Law of the Republic of Kazakhstan "On Special Economic Zones in the Republic of 
Kazakhstan" dated 26 January 1996 No. 2823 with the amendments made by the laws of the Republic 
of Kazakhstan dated 5 July 2001 and 4 December 2003, is available from the Secretariat through 
document WT/ACC/KAZ/50/Add.1. 
Question 171 
Is the listing of benefits offered exhaustive?  Pl ease confirm that goods exported from the zones 
abroad are not subject to restoration of th e exempted taxes or any export duties. 
When goods produced in the zones are sold into th e rest of Kazakhstan, however, what sort of 
tariff/tax treatment do they experience? 
Answer: 
The Republic of Kazakhstan has the special economi c zones: "Astana – new city", "Seaport Aktau" 
and "Park of Informational technologies", established by the Decrees of the President of Kazakhstan 
No. 645 of 29 June 2001 for a five-year-term from 2002-2007 and No. 853 of 26 April 2002 for a four-year-term from 2003-2007 and No. 1166 dated 18 August 2003 for the ten - years period 
correspondingly.  Issues on establishment, legal regu lation, and operation of special economic zones 
is covered by the Decree of the President of the Re public of Kazakhstan No. 28 23 of 26 January 1996 
"On Special Economic Zones in the Republic of  Kazakhstan", Customs and Tax Codes of the 
Republic of Kazakhstan and other legisla tive acts of the Republic of Kazakhstan. 
The Law of the Republic of Kazakhstan, "On special  economic zones in the Republic of Kazakhstan", 
and other legislative acts do not provide special pr eferences due to  export performance of companies  
in special economic zones.  Attr acting investment, modern technolog y, and know-how to these zones 
are considered as the primary means to ensure th at the accomplishment of objectives set by creating  WT/ACC/KAZ/50 
 Page 89 
 
 
 special economic zones.  To this end, the Tax Code of the Republic of Kazakhstan stipulates 
exemptions from the payment of land tax and property tax levied on fixed assets, and a reduced rate of 
the corporate income tax (50 per cent) applicable  to entities engaged in the following activities in 
special economic zones: 
- design, development, and implementation of pilot production and production of software, 
databases, and hardware; 
- IT development based on artificial immune and neuron systems; and 
- Research and Development for the devel opment and implementation of IT projects 
Pursuant to Chapter 30 of the Customs Code of th e Republic of Kazakhstan, "free customs zone" shall 
mean the customs regime under which foreign a nd Kazakh goods are placed and used within the 
relevant territorial borders of a special economic zone exempt from customs duties and taxes, except 
for excise on imported goods, and without non-tari ff regulatory measures being applied to them, 
except for requirements regarding safety of goods. 
In this regard charging of customs duties and ta xes, and the application of non-tariff regulatory 
measures are as follows: 
- When foreign goods are placed under the fr ee customs zone customs regime, customs 
duties and taxes shall not be charged, ex cept for excise on imported goods, and non-tariff 
regulatory measures shall not be applied, except for requirements regarding safety of 
goods. When exporting these goods from the territory of special economic zones to the rest of the customs territory of the Republic  of Kazakhstan, customs duties and taxes shall 
be charged, and non-tariff regulatory measures shall be applied, in compliance with the 
terms of the declared customs regime.  
- When Kazakh goods are imported onto the territory of special economic zones from the 
rest of the customs territory of the Republic of Kazakhstan, in compliance with the terms 
and requirements of the free customs zone customs regime, as well as when they are 
exported from the territory of a special economic zone to the rest of the customs territory 
of the Republic of Kazakhstan, customs duti es and taxes shall not be charged, and non-
tariff regulatory measures shall not be applie d. These goods shall be exported outside the 
customs territory of the Republic of Kazakhs tan in compliance with the terms of the 
selected customs regime. 
- Goods that are placed under the free customs z one customs regime on the territory of the 
special economic zone, shall be considered as being outside the customs territory of the 
Republic of Kazakhstan for the purpose of le vying of customs payments and taxes. 
- A certificate of origin shall confirm goods as having originated from the territory of 
special economic zones. When such a certific ate is not available, the goods shall be 
regarded: 
i. when exported outside the Republic of Kazakhstan - as Kazakh goods, for the 
purposes of charging export customs duties and the application of non-tariff regulatory measures; and 
ii. when imported onto the rest of the custom s territory of the Republic of Kazakhstan - 
as foreign goods for the purposes of charging import customs duties and taxes, and the application of non-tariff regulatory measures. 
-  Government procurement Question 172 Questions and replies (WT/ACC/KAZ/37/Add.3), Question 52; WT/ACC/SPEC/KAZ/8, 
paragraph 191:  We strongly encourage Kazakhstan to undertake to join the GPA. WT/ACC/KAZ/50 
Page 90 
 
 
 Answer: 
Taking into consideration the voluntary nature of the Agreement, the Republic of Kazakhstan intends 
to start negotiations on joining the Agreement on Government Procurement after its accession to 
WTO.    
Question 173 We urge positive consideration of joining the Government Procurement Agreement in the 
context of WTO Accession. 
Answer: 
The Republic of Kazakhstan does not plan to join to the WTO Agreement on Government 
Procurement taking into consideration the voluntary nature of the Agreement.  Kazakhstan intends to 
consider the opportunity of accession to the Agreem ent on Government Procurement after its joining 
to the WTO.    
-  Transit 
Question 174 Kazakhstan should provide information (includi ng the legal citation) on how traders that 
establish a bond for goods in transit may redeem it. 
Answer: 
In accordance with Article 345 of the Custom s Code, a deposit is refunded provided that 
commitments required by the deposit are fulfilled.  
The customs authority upon the written request of th e payer must refund the deposit within a period of 
time not to exceed ten working days from the day wh en the request was received.  A request for the 
refund of a deposit is submitted to the customs auth ority after the commitment was fulfilled, but not 
later than five years following the date of fulfilm ent. A deposit must be refunded by the customs 
authority to the account of which the deposit amount w as paid or, in case of dissolution of the customs 
authority, by its legal assignee. The deposit must  be refunded to the payer's bank account in the 
currency of payment.  The deposit must be refunded to  a payer with deduction of debts with regard to 
customs duties, taxes and penalties in compliance with  the procedures set forth in Article 351 of the 
Customs Code. The refund of a deposit must not enta il a refund of interest, the amounts must not be 
indexed, and bank fees must be recovered at the ex pense of deposit funds.  Upon the payer's request, 
the deposit may be accounted for future customs paym ents and taxes or for guarantee of payment of 
customs payments and taxes under another co mmitment to the customs authorities.   
Property security are refunded when a security is: 
- in  the disposal of the depositor from th e date of fulfilment of the commitments; 
- in the disposal of the customs authority not late r than five days from the date of fulfilment 
of the commitments; and 
- Refund under the bank guarantee shall be done not  later than five days from the date of 
fulfilment of the commitment. Security on insurance shall cease not later than five 
working days from the date of fulfilment of the commitments.  WT/ACC/KAZ/50 
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 Question 175 
WT/ACC/SPEC/KAZ/8, paragraphs 192-193:  Plea se provide more detailed information on the 
transit fees. 
Answer: 
Goods in transit across the territory of the country are exempt from customs charges and fees, VAT, 
and excise taxes.  Kazakhstan allowed free transit to reflect provisions of GATT 1994 Article V, as 
well as of the international treaties to which it was a party.  The only charge applied to transit of 
goods was levied for transportation services, and as such was limited to cover solely administrative 
costs or costs of services provided. 
Fees and duties for goods transportation by the railway  transport are collected in accordance with the 
"Rate policy of the Republic of Kazakhstan fo r the goods transportation in international 
communication for 2004".  In accordance with th e Decree the Government of the Republic of 
Kazakhstan No. 62 dated 19 January  2002 "On some issues regulating the movements of vehicles on 
the territory of Kazakhstan" and with the Gove rnment of the Republic of Kazakhstan Decree 
No. 1306 dated 24 December 2003 rate of transit dut y for the foreign vehicles that transport cargoes 
in the international communication is fixed at the rate of ten Monthly Calculation Indexes.  
Fees for cargo transit shipment in the seaports of  Kazakhstan are collected in accordance with the 
Decree of the Chairman of the Agency of K azakhstan for Regulation of Natural Monopolies, 
Protection of Competition and Support of Small Business of 24 December 2003 No. 320- ОD.  
Decreasing coefficients did not apply to tariffs of transit cargoes and payments were collected without 
any special preferences.  For air transit cargo tran sportation through the territory of the Republic of 
Kazakhstan, fees and duties were not charged. 
Under the Customs Code of Kazakhstan, certain ty pes of imported goods listed in the Resolution of 
the Government can only transit the customs territory of Kazakhstan provided that there is a guarantee 
of payment of all chargeable customs duties and ta xes.  Under the Government Resolution No. 524 of 
4 June 2003, the above mentioned types of importe d goods include alcohol a nd brands of alcoholic 
products, cigars and tobacco.  As stipulated in the Article 339 of the Customs Code, payment of 
customs duties and taxes may be guaranteed in one of the following forms:  (i) bonds, (ii) bank 
guarantee letter, (iii) deposit on the deposit account of the customs body; and (iv) insurance contract.  
Procedures applied by customs bodies to enforce paym ent of customs duties and taxes were defined in 
the Order of the Customs Control Agency of K azakhstan No. 199 of 13 May 2003 "On Adoption of 
Procedures of Customs Bodies to Enforce Payment of Customs Duties and Taxes".  
Question 176 
From information provided in paragraph 126 (origi n), it appears that some products are not 
allowed to transit via the Kazakh customs territory because of their origin and national dispositions.  Which types of product are concern ed and of what origin?  What are the reasons 
for this?  
Answer: 
According to Article 42 of the Customs Code of Kazakhstan,  a customs authority can deny the  
release of goods in the event that the goods origin ate in a country whose goods are prohibited for 
importation into Kazakhstan, in compliance with the national legislation or in ternational agreements 
to which Kazakhstan is a signatory. Such denial by  a customs authority must be presented in the 
written form.   WT/ACC/KAZ/50 
Page 92 
 
 
 In accordance with the Government Resolution of  10 July 2003 "On ban imposed for goods and 
vehicles imported to the territory of the Republic of Kazakhstan and exported from its territory that 
are prohibited to be located under special custom s regimes, and the bans  and limitations for 
conducting operations with goods under special custom  regimes" adopted further to Articles 8, 125, 
142, 153, 165, 175, 182, 240 of the Customs Code, the following goods are prohibited to be imported 
to the customs territory of Kazakhstan:  (i) arms of all types of military sample and ammunition to it, 
weapons of mass destruction; (ii) drugs, psychotropi c and precursors, and the means for their use; and 
(iii) printed and illustrative materials popularizing war, terrorism, violence, racism and the pornographic materials. 
The list of goods which are subject to export prohibiti ons included:  (i) arms of all types of military 
sample and ammunition to it, weapons of mass dest ruction; (ii) drugs, psychotropic and precursors, 
and the means for their use; (iii) works of art, anti quities and other items of art, historic, scientific and 
cultural value; (iv) species of flora and fauna, recorded into the Red Book and saiga horns; and 
(v) annulled securities. 
Question 177 
Kazakhstan should provide information (includi ng the legal citation) on how traders that 
establish a bond for goods in transit may redeem it. 
Answer: 
In accordance with the clause 8 of the Article 345 of  the Tax Code the deposit returning is fulfilled in 
cases when the redeem is:  
- at depositor disposal from the date of duty discharge; or 
- at the custom authority disposal  and not late r than after five working days from the date 
of duty discharge. 
- Agricultural policies 
Question 178 
Paragraph 198:  Kazakhstan's Factual Summary describes preferential credits provided to the 
agricultural industry by the State Eximbank.  It is our understanding from previous Kazakh 
submissions that similar preferential internal loans are provided through the State Eximbank to 
several industries including power engineering , metallurgy, machine-building, light and 
construction materials (see, response to Question 84 of WT/ACC/KAZ/6/Add.2).  One of the stated criteria of this program is to "meet the main objectives of priority sectors of the 
economy." 
Could you please explain why the State Eximbank is involved in internal lending? 
Answer: 
In concord with the Presidential Decree of 16 Ju ly 1994 No. 1815 principal functions of Eximbank 
includes:  
- attracting as a borrower and supporting as an ag ent of the Republic of  Kazakhstan foreign 
loans received and guaranteed by the Republic of Kazakhstan; and 
- crediting Kazakh companies with the aim to stimulate import of technology, equipment 
and products necessary for the implementation of structural reforms and development of 
import substitution productions.   WT/ACC/KAZ/50 
 Page 93 
 
 
 Given complex economic situation and the needs of  the country in credit resources and investments 
major sources of internal crediting in 1995-1996 used  to be foreign loans and credits attracted under 
the guarantee of the Government of the Republic of  Kazakhstan.  External borrowings had been done 
for the purpose of internal crediting by way of dist ributing them between priority economy sectors.  In 
connection with this there appeared a necessity to  concentrate management of these credit resources 
by some relevant financial ins titution, whose function would be to  attract as a borrower and support as 
an agent of the Republic of Kazakhstan foreign lo ans received and guaranteed by the Republic of 
Kazakhstan, specifically – by the Eximbank of Kazakhstan.  
Thus, Eximbank being a public bank set up for the purpose of implementation of structural-
investment policy of the Republic of Kazakhstan perf ormed the functions of a development bank, i.e., 
provided internal soft loans under investment proj ect for different economy sectors in line with the 
priorities determined by the Governme nt of the Republic of Kazakhstan.  
Question 179 
Please also explain whether the priority sectors that are targeted by this program are export-
oriented. 
Answer: 
The current list of priority activities is approved by  the Governmental Resolution "On Some Issues of 
Enforcing the Law "On Investments" of 8 May 2003 No. 436, comprises 233 kinds of such activities.   
In accordance with the Law "On Investments" the au thorized state agency may grant an investor, on 
contractual terms, the following investment preferences: 
- investment tax preferences; 
- exemption from customs duties; and 
- state grants in-kind.  
Question 180 
We also ask that you specify and explain the t erms and conditions of any lending for export by 
the Eximbank of Kazakhstan.  
Answer: 
Eximbank was an agent for foreign loans and credits , attracted under the guarantee of the Government 
of the Republic of Kazakhstan.  The terms and c onditions, under which they had been granted, were 
the following:  term - three to five years; mean in terest rate – 6 per cent; grace period - two to three 
years. 
Question 181 Do the terms and conditions vary by industry or sector and are they specific to the market in 
which the Kazakh exports are sold? 
Answer: 
Preferential credits through the State Eximbank, st ate guarantees for foreign loans, and preferential 
loans through the Fund in supp ort of agricultural small and medium-size businesses are used to 
subsidize the agricultural sector.  These tools are used  to strengthen reforms in the agricultural sector 
and implement a single medium-term investment policy.  A set of criteria used for competitive WT/ACC/KAZ/50 
Page 94 
 
 
 selection of investment projects includes:  (i) the co mpliance of investment projects with restructuring 
goals in the agriculture sector; (ii) creation of  competitive markets for agricultural commodities; 
(iii) use of modern machinery and technologies, an d (iv) economic viability of projects. The selection 
of investment projects for financing by Eximba nk is not contingent upon export performance of 
companies. The terms and conditions applied by Ex imbank are the same across sectors and industries, 
and are not specific to the markets in which the exports of agricultural products were sold.   
Crediting terms and conditions did not differ depend ing upon industry or sector and no specialization 
existed depending upon export focus or market sales.  
TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
- General 
 - Industrial property protection Question 182 We have specific requests for further informatio n/legislation, e.g., the new Trademark Law, and 
additional TRIPS related questions.  
Once we receive the new information/draft legisl ation, and response to additional questions, we 
can make a complete and final TRIPS compliance assessment.  
Answer: 
On 9 July 2004 the Law of the Republic of Kazakhs tan "On Changes and Amendments to Legislative 
Acts of the Republic of Kazakhstan on Intellectual Pr operty" introduced a number of modifications to 
the Law "On Copyright and Related Rights", including the introduction of retroactive 
protection procedures.  The draft law is av ailable from the Secretariat through document 
WT/ACC/KAZ/50/Add.1.  
Question 183 
In the interim, we urge Kazakhstan to amend its Copyright Law to bring it into compliance 
with TRIPS and its longstanding bilateral obligatio ns and to follow through on the initiative to 
ratify The WIPO Copyright Treaty, which has been submitted to the parliament. 
Answer: 
In April 2004 Kazakhstan passed new laws on accession to WIPO's agreements on copyright, 
performances, and phonograms.   
Question 184 
Kazakhstan should also swiftly complete its effo rts to enact amendments to the Criminal Code 
and the Customs Code to bring its enforcem ent measures into compliance with TRIPS. 
Answer: 
Kazakhstan is preparing amendmen ts and addenda to the current criminal and administrative 
legislation concerning enforcement of measures fo r infringement of intellectual property rights and 
illegal use of copyright.  WT/ACC/KAZ/50 
 Page 95 
 
 
 Question 185 
Generally, updated information on the effective im plementation of all TRIPS-related legislation 
would be appreciated. 
Answer: 
In April 2004 the Republic of Kazakhstan joined the WIPO Agreements on Copyright, Performances 
and Phonograms. 
On 9 July 2004 the Law of the Republic of Kazakhs tan "On Changes and Amendments to Legislative 
Acts of the Republic of Kazakhstan on Intellectual Property" introducing a number of modifications 
to the Law "On Copyright and Related Rights", in cluding the introduction of retroactive protection 
procedures, was approved. 
Question 186 
In WT/ACC/KAZ/41 of May 2003, Kazakhstan me ntions a Draft Law that provides for several 
changes in Kazakhstan's laws protecting intell ectual property.  Has this Draft Law been 
enacted?  If not, when do you expect it will be  passed into law?  Could Kazakhstan provide us a 
copy of the law? 
Answer: 
On 9 July 2004 the Law of the Republic of Kazakhs tan "On Changes and Amendments to Legislative 
Acts of the Republic of Kazakhstan on Intellectual Property" introducing a number of modifications 
to the Law "On Copyright and Related Rights", in cluding the introduction of retroactive protection 
procedures, has been approved.  The Draft of th is Law is available from the Secretariat through 
document WT/ACC/KAZ/50/Add.1.  
- Application of national treatment a nd MFN treatment to foreign nationals 
Question 187 In response to Question 86 in document WT/ACC/KAZ/37/Add.3 regarding the compatibility of 
Kazakhstan's law with Paris Convention Article 3, Kazakhstan explained that the Constitution 
provided the same rights to foreign and stateless in dividuals as to Kazakhstan citizens.  Later in 
the same response, however, Kazakhstan noted that under the Patent Law of 1999, there might 
be exceptions to this provision.  Please explain these exceptions and how they  are consistent with 
Paris Convention Article 3 as well as with TRIPS Article 3 on National Treatment. 
Answer: 
In accordance with Article 12(4) of the Constitution foreigners and stateless persons enjoy the rights 
and freedoms of, and are subject to the obligations stipulated for, the citizens of the Republic of 
Kazakhstan. According to Article 4 of the Law "On Normative Legal Acts " of 24 March 1998, the 
Constitution of the Republic of Kazakhstan h as the supreme legal power in the Republic. WT/ACC/KAZ/50 
Page 96 
 
 
 - Substantive Standards of Protection, Incl uding Procedures for the Acquisition and 
Maintenance of Intellectual Property Rights 
- Copyright and related rights Question 188 
Kazakhstan is not TRIPS compliant in the area of copyrights. Kazakhstan's Law on Copyright 
and Neighbouring Rights (10 June 1996) does not contain a provision that clearly provides for 
the protection of pre-existing works and sound reco rdings as required under Article 18 of the 
Berne Convention.   
Answer: 
On 9 July 2004 the Law of the Republic of Kazakhs tan "On Changes and Amendments to Legislative 
Acts of the Republic of Kazakhstan on Intellectual Property" introducing a number of modifications 
to the Law "On Copyright and Related Rights", in cluding the introduction of retroactive protection 
procedures, is approved.  The Draft of this Law is available from the Secretariat through document 
WT/ACC/KAZ/50/Add.1. 
Question 189 
TRIPS Article 9 requires WTO Members to comply  with Berne Articles 1-21.  In addition, 
penalties for copyright piracy may not be adeq uate to compensate the copyright holder for 
injuries suffered as the result of infringement as required under TRIPS Article 45.   
Answer: 
Preparations to enact amendments and addenda to the existing administrative and criminal legislation 
are being made so as to reinforce the penalties for violations of intellectual property rights. 
Question 190 
Kazakhstan stated that it has developed a draft law "On Changes and Amendments to 
Legislative Acts of The Republic of Kazakhs tan on Intellectual Property."  (Item 215, 
WT/ACC/SPEC/KAZ/8) Please provide a copy of the draft legislation.  What is the anticipated 
timetable for adoption of these amendments?  In  particular, what provisions in the draft law 
address the protection of pre-existing works and sound recordings as required under the Berne 
and TRIPS Agreements?  What is the proposed term of protection? 
Answer: 
On 9 July 2004 the Law of the Republic of Kazakhs tan "On Changes and Amendments to Legislative 
Acts of the Republic of Kazakhstan on Intellectual Property" introducing a number of modifications 
to the Law "On Copyright and Related Rights", in cluding the introduction of retroactive protection 
procedures, is approved.  The Draft of this Law is available through document 
WT/ACC/KAZ/50/Add.1.  WT/ACC/KAZ/50 
 Page 97 
 
 
 - Trademarks, including service marks 
- Geographical Indications, including appellations of origin Question 191 Are trademarks and geographical indications in Kazakhstan solely protected under the "Law of 
the Republic of Kazakhstan on Trademarks, Service Marks and Appellations of Origin," 
(hereinafter, The Law) No. 456-I LRK, of 26  July 1999? Are there any supplemental or 
implementing regulations in addition to the 1 999 law?  In its submission of answers to the 
Working Party on the Accession of the Kazakhstan, document (WT/ACC/KAZ/37/Add.3), the Government of Kazakhstan made reference in Qu estion 72 to "The Rules for Drafting and 
Filing of Applications for Registration of Trademarks of 8 October 1996 (hereinafter, the 
Rules)."   
Please provide copies of all laws and regulations, including The Rules, relating to the protection 
and enforcement of trademarks and geographical indications for review. 
Answer: 
In order to ensure legal protecti on of trademarks, the Rules for F iling and Submission of Application 
for Registration of a Trademark dated 8 October 1996  and the Rules for Processing of Application for 
Registration of a Trademark dated 8 October 1996 (available from the Secretariat through document 
WT/ACC/KAZ/50/Add.1) were developed.   
Question 192 
The Synoptic Table on Legislation on the Republic Kazakhstan found in WTO Document 
WT/ACC/KAZ/41 indicates that a new Draft Law ha s been developed to harmonize the national 
legislation with the requirements set out in  the international treaties and agreements 
(specifically TRIPS), regulating mechanisms of protection of intellectual property rights.  The Draft Law provides for a number of changes and am endments to the Laws of the Republic of 
Kazakhstan "On Trademarks, Service Marks, and Appellations of Origin."  The WTO 
document indicates that this new law will be subm itted to the Parliament of Kazakhstan in June 
of this year.   A copy of the draft law woul d be helpful to determine if the trademark and 
geographical indications regime of Kazakhstan is co nsistent with WTO norms.  Please provide a 
copy of the draft law for review. 
Answer: 
The Draft of the Law of the Republic of Kazakhs tan "On Changes and Amendments to Legislative 
Acts of the Republic of Kazakhstan on Intellectua l Property" approved on 9 July 2004 is available 
from the Secretariat through document WT/ACC/KAZ/50/Add.1. 
Question 193 
Article 21 of the Law states that a "trademark as signment contract or license contract shall be 
done in writing and registered in Kazpatent, and in the absence of such writing and 
registration, the contract shall be deemed null and void." The comments that the United States 
has received from trademark owners raise questions about the value of requiring license recordals.  Recordation of licenses is not a req uirement in the United States.  Among the 
concerns expressed by trademark owners are th e following:  recordation involves significant 
expense, when multiplied over many countries; fa ilure to record can result in loss of rights – 
even to obvious counterfeiters; and that failure to  record can actually be used by counterfeiters WT/ACC/KAZ/50 
Page 98 
 
 
 and others as a means to prevent the true owner from asserting rights.  For these reasons, we 
would like to know why mandatory license recordal , particularly as it affects the rights of 
legitimate trademark owners, is considered to be desirable.   
Answer: 
According to amendments provided by the Law "On Changes and Amendments to Legislative Acts of 
the Republic of Kazakhstan on Intellectual Property" licensing and assignment agreements must be registered with the Committee for Intellectual Proper ty Rights.  It is necessary to register such 
agreements with the Committee. Compulsory regi stration of agreements enables the Committee to 
regulate contractual relations between the parties.  Official registration of agreements with the 
Committee implies that the rights of a person, to wh om the exclusive rights for industrial property are 
assigned, must not be infringed in any way, if the ot her party wanted to further make any changes in 
the agreement made, and that such chang es must only made by court's decision. 
Question 194 
Moreover, in a previous question submitted as king Kazakhstan to confirm that a trademark 
maybe assigned with or without the goodwill of a company, an answer to the question was not 
provided. The question is posed again to Kazakhstan.  Please note that Paris Convention Article 
6quater  requires transfer of a trademark along with the goodwill.   
Answer: 
Assigning the rights for a trademark entails cession of the trademark itself, used with certain products 
or services production, and the business reputation ga ined by the trademark during its use in any 
sphere. 
Question 195 
In what way does the law of Kazakhstan preserve the rights of trademark owners, consistent 
with Articles 16(1) and 24(5) of the TRIPS Agre ement?  It is unclear whether trademarks in 
Kazakhstan would be protected from confusin gly similar and later in time geographical 
indications.  
Answer: 
The Law "On Trademarks, Service Marks and Appella tions of Origin" prohibited registration of such 
designations as trademarks, which are identical to or confusingly similar to designations that are 
applied for registration with earlier priority in th e name of other person a nd for related goods and 
services. That Law also stipulates that persons shall respond under the laws of the Republic of 
Kazakhstan for illegal use of a protected trademar k for the related goods, th us violating the above 
Law. 
Question 196 
It is unclear from the response given to Question 75 in WTO document 
WT/ACC/KAZ/37/Add.3 whether foreign geogr aphical indications are protected in 
Kazakhstan.  Specifically, what procedures are in place for the interested parties or owners of 
third-country geographical indications to prevent the use of foreign geographical indications?    WT/ACC/KAZ/50 
 Page 99 
 
 
 Answer: 
In accordance Article 48 of the Law "On Trademar ks, Service Marks and Appellations of Origin," 
foreign persons and legal entities enjoy the rights and observe the obligations stipulated in that Law 
on an equal basis with persons and legal entities of  the Republic of Kazakhsta n. Thus, a geographical 
indication registered in the Republic of Kazakhs tan and protected by Kazakhstan's laws or by 
international treaties and agreements , to which Kazakhstan is a party, is  protected on the same terms 
as the one registered by a national of Kazakhstan. 
- Industrial designs 
Question 197 
Kazakhstan's Patent Law of 1999, Article 8(1) requires an industrial design to be "industrially 
applicable."  This appears to be inconsistent  with TRIPS Article 25(1), which only requires an 
industrial design to be nor or original and, if pr ovided for in the national legislation, to require 
an inventive step.  Please clarify. 
Answer: 
The rights for industrial designs are regulated by th e Patent Law of the Republic of Kazakhstan and 
are certified by preliminary patents and patents if the applied industrial design meets the patentability 
requirements: novelty, originality, and industrial a pplication (in accordance with Article 25(1) of the 
WTO TRIPS Agreement).  
Since industrial designs as well as utility models are objects of industrial property, the national laws 
provide for the requirement of "industrial applicati on" as one of the conditions of industrial design 
patentability. 
Question 198 
Please explain what types of designs fall within th e exception to patentability for "solutions that 
relate to . . . industrial, hydraulic and other stationary structures." 
Answer: 
Industrial, waterworks, and other stationary buildin gs are not recognized as industrial designs because 
they do not meet the criteria of "industrial application" and are subject to copyright. 
Question 199 
Please explain how Kazakhstan's law is consistent with TRIPS Article 25(2). 
Answer: 
Article 8 of the Patent Law, which provides that "a rtistic-design solution determ ining the exterior of a 
product falls into the category of an industrial desi gn," also applies to textile goods since they are a 
type of industrial design (meeting the requirement of Article 25(2) of the WTO TRIPS Agreement). WT/ACC/KAZ/50 
Page 100 
 
 
 - Patents 
Question 200 In response to Question 86 in document WT/ACC /KAZ/37/Add.3 regarding the exclusion from 
patentability for "proposals that are contrary to the public interest, humanitarian principles or 
morality," Kazakhstan explained that this "imp lements" TRIPS Article 27(2).  As noted in 
Question 86, however, the language used is br oader than the permissible exceptions provided in 
TRIPS Article 27(2).  Please explain how the exclusion is consistent with TRIPS Article 27(2). 
Answer: 
The provisions of the Patent Law requiring excl usion from category of inventions products and 
proposals that are contrary to the public inter est and humanitarian principles and morality, do not 
provide for any discriminatory terms and meet the requirements of Article 27(2) of the WTO TRIPS 
Agreement. 
Question 201 
Kazakhstan's Patent Law of 1999 also exempt s from patentability "methods of economic 
organization and management" and "computer programs."  TRIPS Article 27(1) prohibits 
discrimination in the granting of patents on th e basis of technology.  Please explain how the 
above-identified exclusions are consistent with TRIPS Article 27(1). 
Answer: 
Computer programs and algorithms as such are subject to copyright legal protection under the Civil 
Code and the Law "On Copyright and Related Rights." 
Question 202 Is the list of patentable subject matter in Article 6(2) of the Patent Law of 1999 intended to be 
exhaustive, or are plants, animals and surgical , therapeutic and diagnostic methods patentable 
in Kazakhstan? 
Answer: 
The list provided by the Patent Law is exhaustive.  Surgical, therapeutic and diagnostic methods can 
be protected as copyright objects under the Patent Law. 
Question 203 
Please explain in detail how the co mpulsory licensing provisions in Articles 11(3) and 11(4) of 
the Patent Law of 1999 comply with each of  the requirements of TRIPS Article 31(a)-(l) 
regarding compulsory licenses. 
Answer: 
In accordance with Article 12 of the Patent Law the following are not considered to be a violation of 
the exclusive right of a patent holder: application of means containing a protected patent holder exclusive right to objects of industrial property, contained in the structure of or used for operation of (sea, river, air, land, and space) vehicles of other countries, provided that the said vehicles were in the 
territory of the Republic of Kazakhstan temporarily or by accident and the objects were used for the 
needs of the vehicle; making a research or an experiment on an object containing a protected subject  WT/ACC/KAZ/50 
 Page 101 
 
 
 matter of industrial property; application of such means in emergency situations (natural and other 
disasters, major accidents) with immediate notificat ion of the patent holder and subsequent payment 
of the correspondent compensation to the patent holde r; application of such means for personal needs 
without a commercial purpose; as fo r medicines, a one-time preparation of medicine pursuant to a 
doctor's prescription. The aforementioned provision s meet the requirements of Article 31 (a)-(k) of 
the WTO TRIPS Agreement. As for the requirements of Article 31(1) of th e WTO TRIPS Agreement, 
the representative of Kazakhstan noted that there ar e no definitions of "the first patent" and "the 
second patent" in Kazakhstan. 
Question 204 
Please explain the exception to exclusive rights provided in Article 12(6) of the Patent Law of 
1999.  
Answer: 
Application of means containing protected subject ma tters of industrial property are not considered to 
violate the exclusive right of the patent holder, provided that such means have been utilized, for 
instance, by an Assignment Agreement. 
Question 205 How does the Patent Law of 1999 comply with  TRIPS Article 34 requiring a reversal of the 
burden of proof in civil proceedings concerning the infringement of a process patent? 
Answer: 
In accordance with the Civil Code every party is  responsible for proving its own claims and 
statements. Other persons involved in the process can provide evidence too. 
Question 206 
Can the requirement that a patented invention be used, as provided in Article 11(3) of the 
Patent Law of 1999, be satisfied by importation of  the invention into Kazakhstan?  If not, please 
explain how this practice is consistent with TR IPS Article 27(1), which prohibits discrimination 
on the basis of whether the invention is produced locally or imported. 
Answer: 
In accordance with Article 11(2) of the Patent Law th e following falls under the definition of "a use of 
an industrial property object":  the manufacture, use, import, offer for sale, sale, or other way of marketing of a protected industrial property or stor age for that purpose, as well as application of the 
protected method.  Thus, import of an invention implies its use too, thereby meeting the requirement 
of Article 27(1) of the WTO TRIPS Agreement. 
- Requirements on undisclosed information,  including trade secrets and test data 
Question 207 In its response to Question 90 in document WT/ACC/KAZ/37/Add.3 on the protection of 
undisclosed information, Kazakhstan identified Articles 34 and 15 of the Patent Law of 1999 as 
satisfying its requirements under TRIPS Article 39( 3).  Article 15, however, does not mention 
undisclosed information, and Article 34 applies only  to the disclosure of information related to 
"intellectual property subject matter," which is defined in Article 1(5) as the "results of WT/ACC/KAZ/50 
Page 102 
 
 
 intellectual creative activity."  This definition does not appear to extend to the protection of 
"test or other data, the origination of which in volves considerable effort."  Please explain how 
Kazakhstan's law is consistent with TRIPS Article 39(3). 
Answer: 
In accordance with Article 34 of the Patent Law,  disclosure of the industrial property without the 
authorization of the author or the applicant befo re publication of information about the industrial 
property entails responsibility under the laws. 
Article 15(1) of that Law stipulates that a person or a legal entity that infringes the rights of a patent 
holder by disclosure without the authorization of the patent owner of commercial secret information 
concerning the sort or breed for which the applica tion was filed, shall respond in accordance with the 
law (Article 15(3) of the Law "On Pr otection of Selection Achievements"). 
Confidential data or other information which is required by Kazakhstan in the process of approving 
the marketing or sale of chemical, pharmaceutical, or  agricultural products is also protected and, as 
such, this complies with Article 39(3) of the WT O TRIPS Agreement.  Employees of ministries and 
other State agencies who disclose protected informa tion are held administratively responsible, and the 
Ministries and other State agencies which employed the individual making such an unauthorized 
disclosure, are also held liable for the employee's unauthorized action. 
Question 208 
How does Kazakhstan's law implement the require ments of TRIPS Articles 39(1) and 39(2)? 
Answer: 
Article 126 of the Civil Code of the Republic of Kazakhstan provides for the protection of 
information of real or commercial value under the civil legislation, provided that it is unknown to 
third parties, that confidentiality is strictly preserve d, and that the free access to such information is 
denied on a legal basis.  Thus, corresponding provisi ons of the Civil Code implement requirements of 
Article 39(2) of the WTO TRIPS Agreement. 
- Enforcement  - Civil judicial procedures and remedies Question 209 The following questions pertain to Question 85 of WT/ACC/KAZ/37/Add.3:  Please describe the 
manner in which the law of the Republic of Kazakhstan complies with TRIPS Article 43 (1) requiring that judicial authorities shall ha ve the authority, where a party has presented 
reasonably available evidence sufficient to suppo rt its claim and has specified evidence relevant 
to substantiation of its claims which lies in the co ntrol of the opposing party, to order that this 
evidence be produced by the opposing party, s ubject in appropriate cases to conditions which 
ensure the protection of confidential information. 
Answer: 
According to Article 66(4) of the Civil Code, in cases when both parties and other persons involved in 
the process had problems with submission of eviden ce, the court could assist them in obtaining the 
necessary evidence upon their request.  If necessary, th e court can provide the requesting party with 
an official letter of request for obtaining such ev idence.  Moreover, Article 74(1) of the Civil Code  WT/ACC/KAZ/50 
 Page 103 
 
 
 stipulates that in cases when a person is afraid that  he or she will not be able to obtain necessary 
evidence later, they can re quest securing of evidence. 
Question 210 
Please explain the manner in which the law of the Republic of Kazakhstan complies with TRIPS 
Article 45(1) requiring that the judicial authorities shall have the authority to order the 
infringer to pay the right holder damages adequa te to compensate for the injury the right 
holder has suffered because of an infringement of  the person's intellectual property right by an 
infringer who knowingly, or with reasonable grou nds to know, engaged in infringing activity. 
Answer: 
In accordance with the civil, admini strative, and criminal legislation of Kazakhstan, the court has the 
authority to recover from the violator damages incurred by the right holder. 
Question 211 
Please explain the manner in which the law of the Republic of Kazakhstan complies with TRIPS 
Article 45(2) requiring the judicial authorities shall have the authority to order the infringer to pay the right holder expenses, which may include appropriate attorney's fees. 
Answer: 
In accordance with Article 111 of the Civil Code , the court can order the unsuccessful party to 
compensate the successful party for his attorneys'  costs in the amount actually incurred by the 
successful party.  In money claims that sum can not exceed 10 per cent of the cost of the claim 
sustained.  In a case where the legal support is fre e for the party, the court can order the unsuccessful 
party to pay the mentioned costs to the legal aid ag ency which appointed the lawyer or to the lawyer. 
Question 212 
Please explain whether the law of the Republic of Kazakhstan provides for the recovery of 
profits and/or pre-established da mages under TRIPS Article 45(2). 
Answer: 
Articles 9 and 917 of the Civil Code, which stipulat es that a person whose rights have been violated 
can demand complete recovery of losses, unless otherwise provided by law or contract.  The violator should provide complete recovery of the damage cau sed by his or her act or omission to the property 
or non-property rights and goods of citizens or legal entities. 
Question 213 
Please explain whether the law of the Republic of  Kazakhstan provides judicial authorities with 
the authority to order goods found to be infringing and materials and implements the 
predominant use of which has been in the creation  of the infringing goods to be disposed of 
outside the channels of commerce in a manner to avoid harm to the right holder under TRIPS 
Article 46. 
Answer: 
Article 49 of the Law "On Copyright and Related Ri ghts," in accordance with which a judge can order 
seizure and withdrawal of all copies of works and phonograms that are suspected of being counterfeit, WT/ACC/KAZ/50 
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 as well as all materials and equipment designated fo r their production and reproduction.  Counterfeit 
copies of works or phonograms can be transferred to the copyright or related right holder upon his 
request, or shall be destroyed by the resolution of the court. The materials and the equipment used for 
their reproduction shall be destroyed or made the pr operty of the state by the resolution of the court. 
In accordance with the Law "On Trademarks, Service Marks, and Appellations of Origin" 
(Article 44), a person illegally usin g a trademark or appellation of origin or using a confusingly 
similar designation, shall destroy the images of the trademark or of the appellation of origin and shall 
remove it from the product, its packaging, blank fo rms and other documents. If this requirement is 
impossible to comply with, the relevant goods shall be destroyed in the procedure provided by the 
legislation of the Republic of Kazakhstan.  The Pate nt Law stipulates that a patent holder also has the 
right to demand cessation of the violation of the title  of protection and to seize the products to be put 
in circulation or being stored which are recognized as violating the title of protection, and the means 
designated specifically for violation of the title of protection (Article 15). 
Question 214 
Please explain the manner in which the law of the Republic of Kazakhstan complies with TRIPS 
Article 48 requiring that judicial authorities shall have the authority to order a party at whose 
request measures were taken and who has abused enforcement procedures to provide to a party 
wrongfully enjoined or restrained adequate co mpensation for the injury suffered because of 
such abuse. 
Answer: 
Articles 9 and 917 of the Civil Code, which stipulat es that a person whose rights have been violated 
can demand complete recovery of losses, unless otherwise provided by law or contract. The violator should provide complete recovery of the damage cau sed by his or her act or omission to the property 
or non-property rights and goods of citizens or legal entities. 
- Provisional measures 
Question 215 
Request for Additional Information.  TRIPS Article 50(2) provides that members are obligated 
to provide judicial authorities the authority to  grant provisional measures ex parte.  Under 
Article 61 members shall provide for criminal proce dures and penalties to be applied at least in 
cases of wilful copyright piracy on a commerci al scale.  Please indicate how the Republic of 
Kazakhstan provides for such ex parte relief in civil cases and criminal procedures and 
penalties.  
Answer: 
Civil legislation of the Republic of Kazakhstan and the Law "On Copyright and Related Rights," 
implementing provisions of Article 50 of the WT O TRIPS Agreement, provides judges with the 
power to take the following measures at the requ est of the claimant or upon their own initiative: 
- to arrest the defendant's property; 
- to prohibit a defendant from taking certain actions including sale of goods bearing a 
trademark belonging to the complainant;  
- to prohibit other persons from transferring property to the defendant or from fulfilling 
other commitments with regard to the defendant;  
- to suspend sales of property in case of a suit to free the property from seizure; 
- to suspend a contested act issued by a governmental body, organization or official person; 
and  WT/ACC/KAZ/50 
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 - to suspend recovery made in accordance w ith an executive document, if the debtor 
contested this document.  
Question 216 
Please explain the manner in which the law of the Republic of Kazakhstan complies with TRIPS 
Article 50 relating to provisional measures and pr oviding judicial authorities the authority to 
adopt provisional measures ex parte. 
Answer: 
Civil legislation of the Republic of Kazakhstan and the Law "On Copyright and Related Rights," 
implementing provisions of Article 50 of the WTO TRIPS Agreement, provide judges with the power 
to take the following measures at the request of the claimant or upon their own initiative: 
- to arrest the defendant's property; 
- to prohibit a defendant from taking certain actions including sale of goods bearing a 
trademark belonging to the complainant;  
- to prohibit other persons from transferring property to the defendant or from fulfilling 
other commitments with regard to the defendant;  
- to suspend sales of property in case of a suit to free the property from seizure; 
- to suspend a contested act issued by a governmental body, organization or official person; 
and 
- to suspend recovery made in accordance w ith an executive document, if the debtor 
contests this document.  
- Special border measures Question 217 With regard to border measures, Articles 51-59 provi de for obligations of members relating to 
effective border enforcement.  Can a copy of the draft Code Customs be provided? 
Answer: 
The Customs Code was submitted by Kazakhs tan in document WT/ACC/KAZ/39/Rev.1. 
Question 218 
The response relating to border measures and the ability of rights holders to inspect detained 
merchandise under TRIPS Article 57 and obtain in formation does not clearly indicate that the 
right holder may inspect detained goods or pr ovided information regarding the importer.  
Please clarify.  If current law does not provide  for these actions, are amendments to the law 
contemplated? 
Answer: 
In accordance with Article 418 of the Customs Code  the customs body provid es the applicant or its 
representative with the right to take samples of th e goods that are suspended on the suspicion of being 
counterfeit, under the customs supervision, and to  make an investigation.  Moreover, besides 
informing the applicant about the signs of counterfe it goods to be suspended, the customs body is to 
provide the name and address of the declarer (Article 416 of the Customs Code). WT/ACC/KAZ/50 
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 Question 219 
The following question pertains to Question 91 in WT/ACC/KAZ/37/Add.3.  
Please clarify whether under the current or dr aft Customs Code, enforcement action will be 
taken relating to the exportation of infringing goods or the in transit movement of such goods. 
Answer: 
Article 416 of the Customs Code provides the custom s bodies with the authority to suspend release of 
the goods containing intellectual property.  If in  the process of customs clearing of the goods 
containing intellectual property registered in the Customs Registry, customs bodies discover any signs that the goods are counterfeit, then the re lease of such goods may be suspended. 
- Criminal procedures Question 220 Please explain the provisions under the law of th e Republic of Kazakhstan relating to criminal 
procedures and penalties for wilful trademark counterfeiting. 
Answer: 
Under Article 199 of the Criminal Code illegal u se of a trademark, service mark, firm name, 
appellation of origin or other d esignations of goods (services) for the related goods or services can 
result in the following if the action was performed repeatedly and resulted in severe damages: fines 
equal to 200-500 monthly calculation indices, or to the amount of wages or other  income received by the convicted party for a period of two to five months; public works for 180 to 240 hours; detention 
for up to six months; or a prison term of up to two years. 
Illegal use of special marking with respect to tradem arks and appellations of origin not registered in 
Kazakhstan can result in the following if the action was performed repeatedly and resulted in severe 
damages:  fines equal to 100-200 monthly calculation indices, or to the amount of wages or other income received by the convicted party for up to two months; public works for 120 to 180 hours; detention for up to three months; or a prison term of up to one year. 
Question 221 Kazakhstan has been urged to increase the penalt ies for copyright piracy and impose penalties 
that are "sufficient" to act as an effective de terrent to potential pirates and counterfeiters.  
Kazakhstan responded that current penalties are "sufficiently strict."  (Item 217, 
WT/ACC/SPEC/KAZ/8) Does Kazakhstan's response mean that its current remedies are serving as an "effective deterrent" against widesp read copyright piracy?  If so, please provide 
evidence of the deterrent effect. 
Answer: 
According to Article 49 of the Law "On Copyright and Related Rights," Article 184 of the Criminal 
Code and Article 129 of the Administrative Offences  Code persons infringed copyrights are legally 
liable.  
At the same time Kazakhstan is preparing amendmen ts and addenda to the existing administrative and 
criminal legislation were in place to reinforce th e penalties for violations of intellectual property 
rights.  WT/ACC/KAZ/50 
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 POLICIES AFFECTING TRADE IN SERVICES 
Question 222 WT/ACC/SPEC/KAZ/8, paragraph 256:  Please clarify the content of the provisional measures 
of state regulation of trade in services. 
Answer: 
Noting the growing role of services in the na tional economy, the representative of Kazakhstan 
emphasized that the existing legislative framework was not adequately developed for services sector.  
Government of Kazakhstan therefore was activel y developing national legi slation regulating the 
services sector, which would help to proceed with fu rther liberalization of services.  During the last 
five years, Kazakhstan achieved certain progress in  development of laws regulating services, based on 
which Kazakhstan undertook commitme nts for market access on services. 
Kazakhstan intends to apply provisional measures of state regulation of trade in services in order to 
ensure development of competition, based on well-bala nced levels of development of the market of 
services and labour so as to prevent adverse economic  and social effects in the national economy. 
Introduction of the provisional measures  of state regulation of trade in services will be carried out in 
according with the provisions of Articles III, VI, X, XII, XIV and XIV bis of GATS and will be 
limited to those controls and restrictions necessary to achieve their objectives.  Procedures for license 
and authorizations will be operate in the most effi cient manner on the basis of transparent criteria for 
qualification requirement, technical standards, a nd licensing requirements and will be not constitute 
unnecessary barriers to trade in services.  
Question 223 On individual services sectors, we would seek further information as follows: 
- Distribution services; and 
- Would Kazakhstan inform us about the existi ng legislation applicable to retailing, 
wholesale and commission agents' services? 
Answer: 
On 12 April 2004 the Law of the Republic of  Kaza khstan "On regulation of Trading Activity in the 
Republic of Kazakhstan" No. 544, which regulates pub lic attitudes in the sphere of trading activity, 
establishes principles and organizational bases of its st ate regulation, is accepted.  At present, with a 
view of realization of this law the development of the drafts normative legislative acts on approving 
of the rules of realization wholesale, retail and the commission trade is started. 
Question 224 What measures is the government taking to ensure non-discrimination of foreign service 
suppliers? 
Answer: 
The Government of the Republic of Kazakhstan takes steps on maintenance non discrimination of 
foreign suppliers of services by inclusion in norma tive legislative acts of the Republic of Kazakhstan 
of the provisions regulating the right to foreign lega l and natural persons to participate in enterprise 
activity in the territory of Kazakhstan on equal conditions with domestic suppliers of services.  WT/ACC/KAZ/50 
Page 108 
 
 
 The further development of legislative base, re gulating the services sphere, will be directed on 
creation of transparent regulatory environment and will promote universal standards of performance 
and foster professional identity and mobility to the fullest extent co mpatible with local needs and 
circumstances and recognize and properly incorpor ate the legitimate roles and responsibilities of 
interested parties – public, profession, government, employers – in aspects of standard-setting and 
administration.  
Question 225 
Franchising.  Would Kazakhstan inform us about the existing legislation applicable to 
franchising? 
Answer: 
Interrelations in the sphere of granting franchising in the Republic of Kazakhstan are regulated by the 
Law of the Republic of Kazakhstan "On the Co mplex Enterprise License "Franchising" of 
24 June 2002 No. 330. This law regulates the atti tudes which connected with realization of the 
complex enterprise license (franchising), defines the cont ents of the contract of the complex enterprise 
license and is directed on development and the stat e support of franchising activity in the Republic of 
Kazakhstan. 
The Law sets the main principles regulating fra nchise activity in Kazakhstan and provides for 
protection of information transfe rred by franchisors to franchisees.  Franchise fees and royalties are 
not dealt with by the Law. 
The Law requires all franchise agreements be in writing.  No state registration of a franchise 
agreement is required.  However, other Kazakh le gislation requires registration with the Committee 
for Intellectual Property Rights of the licenses fo r the intellectual property being transferred in 
connection with a franchise agreement (t rademarks, service marks, etc.). 
According to the Law, under the franchise agreement,  one party (the franchisor) undertakes to grant to 
the other party (the franchisee) a set of exclusive rights (the franchise), including, in particular, the 
right to use the trade name of the franchisor, pr otected commercial information and other objects of 
the exclusive rights (the trademark, service ma rk, patent, and the like) in the franchisee's 
entrepreneurial activity. 
The franchise agreement stipulates the use of th e franchise, as well as the use of the business 
reputation and commercial experience of the franchisor,  with or without the indication of the territory 
where such use is permitted, in relation to a defi ned sphere of activity (sales of goods received from 
the franchisor or produced by the franchisee, th e pursuit of other commercial activities, etc.). 
The Law sets forth six specific categories of franchising: 
- franchise-workplace (where a franchisor establis hes a workplace and transfers it, together 
with the franchise, to the franchisee wh o is an individual entrepreneur); 
- franchise-enterprise (where a franchisor establish es an enterprise and transfers it, together 
with the franchise, to the franchisee); 
- conversion franchising (where the parties conclude the agreement on the basis of 
reorganization of structural subdivisions of the enterprise into independent enterprises); 
- plural franchising (where the franchisor establishes several enterprises); 
- manufacturing franchising (where the franchi sor grants to the franchisee the rights to 
manufacture or manufacture and sell goods (services) marked by his trademark using the 
materials, technology and equipment of the franchisor or in coordination with the 
franchisor); and  WT/ACC/KAZ/50 
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 - trade franchising (where the franchisor grants to the franchisee the right to sell goods 
(services) marked by his trademark using the marketing methods of the franchisor or in 
coordination with the franchisor). 
The Law introduces the concept of "license brokers".  A license broker is a person or legal entity that 
represents a party during the nego tiation and performance of the franchise agreement.  A license 
broker can act on his own behalf and at his own risk, as well as on behalf of the franchisor, the 
franchisee or other parties involved in the franchising.  Despite the name of this activity, a license is 
not required to be a license broker. 
The Law provides special protection of the informati on that the parties share, both before they enter 
into a franchise agreement as well as during and after the term of their agreement.  These protections 
go beyond the protections otherwise provided by Kaza kh legislation and are likely to be welcomed by 
prospective franchisors. 
Question 226 
Would Kazakhstan inform us about the legislation applicable to the following activities and the 
measures the government is taking to ensure no n-discrimination of foreign service suppliers? 
Answer: 
- Advertising 
In the field of advertising activity work on shaping of  legislative base is in a stage of perfection. At 
present, questions of accommodation of advertising and advertising activity are regulated by the 
following acts: 
- Constitutional Law of the Republic of Kaza khstan "On Elections in the Republic of 
Kazakhstan"; 
- Tax Code of the Republic of Kazakhstan; 
- Decree of the President of the Republic of Kazakhstan, having the force of law "On 
Medicinal Remedies"; 
- Law of the Republic of Kaza khstan "On Advertising "; 
- Law of the Republic of Kazakhstan "On Proph ylaxis and Restriction of the Tobacco 
Smoking"; 
- Law of the Republic of Kazakhstan "O n the Microcredit Organizations"; 
- Law of the Republic of Kazakhstan "On Mass Media"; 
- Law of the Republic of Kazakhstan "On Highways"; 
- Law of the Republic of Kazakhstan "On Physical Training and Sports"; 
- Law of the Republic of Kazakhstan "On Stat e Regulation of Production and Turnover of 
Ethyl Alcohol and Alcoholic Products"; 
- Law of the Republic of Kazakhstan "On Certification"; 
- Law of the Republic of Kazakhstan "On Narc otics, Psychotropic Substances, Drugs and 
Measures of Counteraction to their Illega l Circulation and Abusing of them"; 
- Law of the Republic of Kazakhstan "On Ba nks and Bank Activity in the Republic of 
Kazakhstan"; 
- The Criminal Code of the Republic of Kaza khstan of 16 July 1997 and the Administrative 
Violations Code of the Republic of Kazakhsta n stipulate the responsibility for crimes and 
the violations connected with infringem ent of the accommodation of advertising; 
- The Law of the Republic of Kazakhstan "On adve rtising " stipulated that state regulation 
in the field of advertising is carried out by corresponding state bodies within the limits of their competence, established by the legisl ation of the Republic Kazakhstan (item 1 of 
Article 17).  Such state bodies are authorized bodies on the questions of highways, public WT/ACC/KAZ/50 
Page 110 
 
 
 health services, and also local agencies. But regulation of questions of advertising should 
be carried out by them within the limits  of their competence and cannot cover all 
spectrum of questions of branch and meet to  all new and changing requirements of time. 
The specified departments can adjust separ ate questions of accommodation, and also 
delivery of sanctions to advertising (Article 11 "External (visual) a dvertising ", (Article 
13 "Features of advertising of separate kinds of production "); 
- Law "On advertising" stipulated that the basi c purposes of state regulation in the field of 
advertising are: protection of national in terests; prevention and suppression of an 
inadequate advertising, and also the adve rtising encroaching on public values and the 
standard norms of morals; protection from unfair competition; 
- Technical testing and analysis; 
- Engineering-related scientific and technical consulting; 
- Translation and interpretation; 
- Market research; 
- Management consulting; 
- Services related to management consulting; 
- Maintenance and repair of equipment (excluding transport equipment); and 
- Real estate services. 
The given sectors of services are regulated by the following laws:  
- Patent Law of the Republic of Kazakhstan; 
- Law of the Republic of Kazakhstan "On Copyright and Related Rights"; 
- Law of the Republic of Kazakhstan "On Science"; 
- Law of the Republic of Kazakhstan "On State Secrets"; 
- Law of the Republic of Kazakhstan "O n Governmental Procurements"; and 
- Law of the Republic of Kazakhs tan "On Innovative Activity". 
Currently, the Republic of Kazakhstan runs a numbe r of reforms of its science and technology and 
seeks instruments allowing a well-balanced administration of scientific developments. 
Given the ongoing transition toward an optimally bala nced structure of administration of scientific 
developments and a gradual shift to profit-orie nted objectives, if the Republic of Kazakhstan 
undertook all commitments required for the accession to the WTO, it would have created a potential 
threat to the scientific potential of the Republic of Kazakhstan.  
Commitments undertaken by the Republic of Kazak hstan on market access in R&D services may be 
fulfilled solely adjusted by restrictions set out  in the acting national legislation on research and 
development.  Thus, Article 26 of the Law of the Re public of Kazakhstan stipulates that funds shall be 
allocated from the Republican budget for the developm ent of fundamental and high-priority applied 
research, preservation and enhancem ent of the scientific potential. 
The share of R&D services in the total volume of  Kazakh foreign trade remains negligible, though the 
Republic of Kazakhstan has a consid erable potential in this sphere. 
The government measures is taking to ensure non-di scrimination of foreign service suppliers in the 
sphere of  professional services will be based on promotion the fullest development of the profession 
commensurate with its potential social contri bution and on acknowledgeme nt and appropriately 
balance interdependent interests.     WT/ACC/KAZ/50 
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 -  Rental and leasing without operators 
Leasing attitudes in the Republic of Kazakhstan are regulated by the Law of the Republic of 
Kazakhstan No. 78-II of 5 July 200 0 "On Financial Leasing", and also the norms determining leasing 
attitudes, included in Civil and Tax c odes of the Republic of Kazakhstan. 
The basic purposes of the national legislation on leasi ng are regulation of the relations arising during 
financial leasing, and mobilization of investments based on leasing activities. The Tax Code stipulated 
the following preferential terms for development of financial leasing:  
- the requirement of obligatory observance of all conditions, including 80-percent term of 
financial leasing in relation to term of useful service of an assets is excluded, instead of 
what the minimal validity of the contract of fi nancial leasing in three years is established;   
- are exempted from corporate income tax of th e sum of the interests, received on financial 
leasing of the real estate, given for the term of  more than three years with the subsequent 
transfer to the renter; 
- at transmission of property in financial leasi ng the sum of received interests by tenant is 
exempted from the VAT; 
- import of the real estate, transmitted under c ontracts of financial leasing, which list is 
established by the resolution of the Governme nt of the Republic of Kazakhstan, is 
exempted from the VAT. The further realization by  the tenant the specified assets also are 
a subject of exemption from the VAT; 
- at transmission of property in returnable l easing, the size of the taxable circulating capital 
is defined on the basis of the cost of tran smitted property, instead of from the size of 
leasing payments as it is stipulated at other kinds of financial leasing; and 
- the payments which connected with the transf er of the real estate on the international 
financial leasing, except for interests are exempted from income tax at a source of payment. Interests also can be exempted  in according with the provisions of the 
Conventions on Avoidance of the Double Taxation. 
-  Security and investigation 
Legal attitude in the field of investigation and secur ity services in the national legislation in force is 
regulated by the following basic normative legal acts: 
- Decree of the President of the Republic of Kazakhstan, having the force of law, "On 
Bodies of Internal Affairs of the Republic  of Kazakhstan" of 21 December 1995; 
- Law of the Republic of Kazakhstan "On Intern al Armies of the Ministry of Internal 
Affairs of the Republic of K azakhstan" of 23 June 1992; 
- Law of the Republic of Kazakhstan "On Operatively Search Activity" of 
15 September 1994; 
- Law of the Republic of Kazakhstan "On Licensing"; 
- Law of the Republic of Kazakhstan "On S ecurity of Traffic in the Republic of 
Kazakhstan" of 15 July 1996; 
- Law of the Republic of Kazakhstan "On National Security of the Republic of 
Kazakhstan" of 26 June 1998; 
- Law of the Republic of Kazakhstan "On Str uggle Against Corruption" of 2 July 1998; 
- Law of the Republic of Kazakhstan "On Narc otics, Psychotropic Substances, Drugs and 
Measures of Counteraction to their Illega l Circulation and Abusing of them"; 
- Law of the Republic of Kazakhstan "On the St ate Control on Turnover of Separate Kinds 
of the Weapon" of 30 December 1998; 
- Law of the Republic of Kazakhstan "On the Or der and Conditions of Holding in Custody 
of Suspected and Accused of Crimes Fulfilment" of 30 March 1999; 
- Law of the Republic of Kazakhstan "On Str uggle Against Terrorism" of 13 July 1999; WT/ACC/KAZ/50 
Page 112 
 
 
 - Law of the Republic of Kazakhstan "On the St ate Protection of the Persons Participating 
in Criminal Trial" of 5 July 2000; 
- Law of the Republic of Kazakhstan "On Security Activity" of 19 October 2000; 
- Criminal Code of the Republic of Kazakhstan; 
- Criminal - Remedial Code of the Republ ic of Kazakhstan of  13 December 1997; 
- Criminally Executive Code of the Republic of Kazakhstan of 13 December 1997; 
- Administrative Violations Code of the Republic of Kazakhstan; 
- Decree of the President of the Republic of K azakhstan, having the force of law, "On the 
Order of the Organizations of Carrying out of Peace Assemblies, Meetings, Processions, 
Pickets and Demonstrations in the Repu blic of Kazakhstan" of 17 March 1995; 
- Decree of the President of the Republic of Kazakhstan, having the force of law, "On a 
Legal Status of Foreign Citizens in the Republic of Kazakhstan" of 19 June 1995; 
- Decree of the President of the Republic of Kazakhstan, having the force of law, "On 
Order of Consideration of References of Citizens in the Republic of Kazakhstan" of 
19 June 1995; 
- Decree of the President of the Republic of Kazakhstan, having the force of law, "On 
Office of Public Prosecutor of the Republic  of Kazakhstan" of 21 December 1995; and 
- Decree of the Government of the Republic of Kazakhstan "On  Order of Service by 
Persons of Ordinary and Commanding Structure of Bodies of Internal Affairs of the Republic of Kazakhstan" of 27 December 1996. 
At present, the sector of investigation and security services of the Republic of Kazakhstan is closed 
for foreign natural persons and legal entities, lega l entities with foreign participation and persons 
without citizenship.  
- Investigation Services (CPC 87301) 
This sub-sector is closed for the foreign natura l persons and legal entities, the legal entities with 
foreign participation and persons w ithout citizenship.  Under the acting legislation of the Republic of 
Kazakhstan (Article 84 of the Constitution of the Rep ublic of Kazakhstan; Chapter 8 of the Criminal 
Code of the Republic of Kazakhstan; Laws of the Republic of Kazakhstan "On National Security 
Agencies of the Republic of Kazakhstan" and "On Re venue Service of the Republic of Kazakhstan"; 
Decree of the President of the Republic of Kazakhsta n "On Bodies of Internal Affairs of the Republic 
of Kazakhstan"), investigation powers are gran ted by the State and may be operated only by 
specialized public bodies.  
- Guard Services (CPC 87305) 
Under Article 5 of the Law "On Security Services" , the Republic of Kazakhstan is closed for the 
operation of foreign security agencies. Moreover, foreign legal entities, legal entities with foreign 
participation, foreign natural persons, and persons without citizenship may not: 
- provide any security services;  
- establish or acts as founders of private security agencies;  
- operate private security agencies under procedures of trust management; and 
- establish security units of individual businessmen and legal entities.  
- Security consulting services (CPC 87302) 
According to Article 14 of the Law of the Republic  of Kazakhstan "On Security Services", consulting 
services and development of recommendations on th e acceptable methods of protection from unlawful 
acts are covered by the licensing requirements and are also closed for foreign participation.   WT/ACC/KAZ/50 
 Page 113 
 
 
 - Alarm monitoring services (CPC 87303) 
The Resolution of the Government of the Repub lic of Kazakhstan No.407 of 5 April 2002 "On 
Measures for the Implementation of the Law of the Republic of Kazakhstan 'On Security Services'" 
stipulates that special technical devices allowed for the use in the Republic of Kazakhstan be listed in 
the Annual Bulletin of the Ministry of Internal A ffairs of the Republic of Kazakhstan.  The list of 
special technical devices, adopted by the above Resolution of the Government of the Republic of Kazakhstan, has been developed to prevent low qua lity equipment or equipment hazardous for human 
health from being imported into the Republic of Ka zakhstan.  The list includes alarm systems, access 
control systems, video control and video surveilla nce systems, where they are not classified as dual-
purpose equipment; weapon detectors, detectors of explosive substances and devices; detectors of 
radioactive, chemical and other poisonous substances; transmitting sy stems, including radio channel 
systems.   
To prevent import to the Republic of Kazakhstan of  special technical devices not included in the 
Annual Bulletin of the Ministry of Internal Affairs, the Ministry of Internal Affairs has drafted an Order "On Procedures for the Entry of the Special Technical Security Devices into the Republic of 
Kazakhstan" jointly with the Ag ency of Customs Control of the Republic of Kazakhstan.  
Under the Decree of the Prime-Minister of the Re public of Kazakhstan No. 82-p of 21 June 2002 "On 
Specific Aspects of Security Services", design, inst allation, setup and maintenance of the security 
systems in high-security premises, areas under special protection, or life support facilities protected by the State may be performed only by specialized secur ity units of the bodies of internal affairs or under 
their control by the entities operating under the licenses issued in accordance with the acting 
requirements for the relevant type of activities and having the necessary admission level for servicing sites of the above category.  This provision do es not extend to the sites of the Committee of the 
National Security, the Ministry of Defence, the Guar ds of the President of the Republic of Kazakhstan 
and the Republican Guards.  
However, please note that the services may be rendered in the form of consultations and 
methodological assistance, material and technical aid.  Also, where stipulated by the relevant international treaties, representatives of law enforcement bodies of WTO Members may attend 
investigation and other procedures. 
Question 227 
Would Kazakhstan inform us about the existing le gislation applicable to tour operators, travel 
agencies, hotels and restaurants?  What meas ures is the government taking to ensure non-
discrimination of foreign service suppliers? 
Would Kazakhstan inform us about their existing plans to promote the tourism sector, and 
what measures the government is taking to ensure non-discrimination of foreign service 
suppliers? 
Would Kazakhstan inform us about the existing  legislation applicable to tour managers 
(professionals accompanying groups of tourists in their travel through the country) and tourist 
guides?  
Answer:  
Services of travel agencies, hotels and restaurants,  excursion bureaus, services of guides (the persons 
engaged on a professional basis in s upport of tourist groups on trips on  the country) and tour operators 
services are regulated by the Law of the Republic of Kazakhstan "On Tourist Activity in the Republic 
of Kazakhstan" of 13 June 2001, the Law of the Republic of Kazakhstan "On Obligatory Insurance of WT/ACC/KAZ/50 
Page 114 
 
 
 the Civil-Law Responsibility of Tour Operator a nd Travel Agent" of 31 December 2003, the Decree 
of the Government of the Republic of Kazakhstan "On Approving of Rules of Licensing of Tourist 
Activity" of 14 September 2001 No. 1213, the Decree  of the Government of the Republic of 
Kazakhstan "On Changes and Amendments to the Decree of the Government of the Republic of 
Kazakhstan No. 1787 of 29 November 2000" of August 2002 No. 888. 
-  Trade Agreements 
Question 228 WT/ACC/SPEC/KAZ/8, paragra phs 265-269.  Please provide updated information on recent 
developments, including concerning the Common Economic Space (CES). 
Under the bilateral agreements on free trade whic h Kazakhstan concluded w ith the CIS countries 
(excluding Turkmenistan) the goods originating fr om these countries and imported from them to 
Kazakhstan are exempt from customs duties, except for a number of goods included in the Schedule 
of Exemptions. The list of goods originating fr om CIS countries covered all nomenclature goods, 
excluding ethyl alcohol (groups 2207 10 000, 2207 20 000, 2208 90 910), vodka (2208 60), cigars, cigarettes (2402), white sugar (1701 99 100).  This Schedule is covered by the protocol on exemptions 
from the free trade environment under bilateral agreements on free trade.  
Kazakhstan is a party to a number of agreements with  Belarus, Kyrgyzstan, Russia and Tajikistan. To 
enhance the efforts to build Customs Union, on 10 October 2000 the heads of the Customs Union 
member states signed the Agreement on Establis hment of the Eurasian Economic Community 
(EAEC), which came into force on 30 May 2001.   In accordance with Article 6 of the above 
Agreement, the stage-by-stage transition to the EA EC common customs tariffs expected to last for 
five years, starting from the date of signing the a bove Agreement.  This te rm may be extended by 
consent of the parties thereto.  
The objectives of CES is to develop a common agri culture, transport policies, to introduce common 
rules and methods of natural monopolies' tariff fo rmation, common competition policy and to create a 
common system of regulation of activities of natural monopolies (railways, major telecommunication 
channels, transportation of electric energy, oil and gas).   
Pursuant to Article 2 of the Agreement on formi ng the CES, signed by presidents of the Ukraine, 
Russia, Belarus and Kazakhstan on 19 September 2003, the first stage of the CES creation focuses on 
the "formation of a free economic zone without w ithdrawals and restrictions, based on mutual non-
application of anti-dumping, compensation and special protection measures, pursuit of common 
policy of tariff and non-tariff regulation, common comp etition rules, use of subsidies and other forms 
of state support".  
Given that these countries are major trading partne rs for each other, they can use the Uruguay round 
special safeguard that cannot be applied toward pro ducts originating in major trading partners that 
cannot be applied to products or iginating in major trading partne rs can be reconciled with the 
declaration. Formation of SEC is a stage-by-stage process which expected to take into consideration 
the different levels of socio- economic reforms ta king place in these countries.  Therefore, during the 
first stage, the SEC member-states are developing common trade remedy policies and regulations in 
line with the relevant agreements of the WTO, wh ich should eventually lead to non-application of 
anti-dumping, countervailing and import protection me asures in the trade betw een Ukraine, Russia, 
Kazakhstan and Belarus.   WT/ACC/KAZ/50 
 Page 115 
 
 
 Question 229 
Could Kazakhstan please identify the provision  of the Agreement on the Formation of a 
Common Economic Space signed by the Presidents of Ukraine, Russia, Belarus and Kazakhstan 
in September 2003 where it is declared that the first stage of forming the common economic 
zone is: "the formation of a free trade zone without exemption or restriction that implies the 
non-application of antidumping, compensation or  special protective measures in mutual trade 
on the basis of a common policy of tariff and non-tariff regulation, common rules of competition, the application of subsidies and ot her forms of government support"?  Given that 
these countries are major trading partners for ea ch other, how can claims to the Uruguay 
Round special agricultural safeguard that could not be applied to products originating in major 
trading partners be reconciled with such a declaration? 
Answer: 
Currently special agricultural safeguard is not covere d by the provisions of future agreements of the 
Common Economic Space (CES). The issue of applica tion or non-application of special agricultural 
safeguard with regard to member-states of the CES will be discussed during negotiations held on CES 
agreements on the application of safeguard, an ti-dumping and countervailing measures in mutual 
trade and in trade with third countries.  In this respect the results of the negotiations on Kazakhstan's 
joining the WTO will be no less important. 
Question 230 
Could Kazakhstan please submit to the Secretaria t an English translation of the document on 
the setting up of joint customs rates signed by the Prime Ministers of Belarus, Kazakhstan, the 
Kyrgyz Republic, Russia and Tajikistan in February 2004 for examination in the Working 
Party? 
Answer: 
The requested document is expected to be signe d after Heads of the EurAsEC members sign "The 
Treaty on the Status of the EurAsEC Law Foundations " in June 2004.  The Draft of "The Bases of 
Customs Legislation of the EurAsEC members" is currently pending with the EurAsEC Inter-
Governmental Assembly. 
  
 WT/ACC/KAZ/50 
Page 116 ANNEX 1 
Export and Import Licensing Rules 
Licensing procedures Compliance with the WTO Agreement on import 
licensing procedures (h ereinafter –Agreement) Export and import of goods excluding import of ethyl spirit 
and alcoholic beverages Import of ethyl spirit and alcoholic beverages 
The acting Rule was approved by the Resolution of the 
Government of the Republic of  Kazakhstan (hereinafter-the 
No. 1037 dated 30 June 1997 and came into force 30 days 
after its publication.    The acting Rule was approved by the Resolution of 
the Government of the Republic of Kazakhstan No. 1031 dated 27 June 1997 and came into force 30 
days after its publication.       The Rules are transparent and widely available and was 
published prior to coming into force, which is in compliance with the provisions of the Article 1.4 of the 
Agreement.  
The present Rule covers all juridical and natural persons of the Republic of Kazakhstan including foreign citizens 
independently of organization's legal status and registration place (hereinafter – the applicant).  The Rule is non-discriminatory and fair, which is in 
compliance with the Article 1.3 of the Agreement. 
Licenses are issued by the Ministry of industry and trade according to the procedures esta blished by the legislation of 
the Republic of Kazakhstan (herei nafter – the Licensor).      Licenses are issued by th e Ministry of Finance 
according to the procedur es established by the 
legislation of the Republic of Kazakhstan 
(hereinafter – the Licensor).      Export and import li censes are issued by the  state body 
upon preliminary agreemen t with the authorized 
ministries and agencies, usually no more than three 
agencies, excluding licenses for import of ethyl spirit and alcoholic  beverages which are issued by the Ministry of 
Finance. Such provision is in compliance with the Article 
1.6 of the Agreement.  
Licenses are issued on equal basis and terms to all persons  complying with the requirements established for such 
type of a license.  It is prohibited to provide a preferen tial licensing right to the state enterprises except for such 
activities referred by the legal acts as natural monopolies.  Foreign juridical and natural persons and persons 
without citizenship receive licenses on the same terms and according to the same procedures as juridical persons 
and natural persons of Kazakhstan if it is not otherwise stipulated by the lega l acts of the Republic of Kazakhstan.  
It is prohibited to issue licenses in order to limit comp etition or to provide preferences to some groups of 
entrepreneurs depending on their property, agency interests or location. Issue of licenses should not assist 
monopoly  strengthening or limit freedom of entrepreneurship.   Licensing procedure of goods export and import is not 
considered as trade limitation and is applied on equal 
terms to everyone, thus it is in compliance with the basic 
principles of the GATT. 
Introduction of licensing procedures or their terminat ion can be done for the matters of the state security, 
implementation of state monopoly, provision of law and order, protection of environment, property, life and health of citizen. Basic objectives of goods export and import licensing in 
the Republic of Kazakhstan comp ly with the provisions of 
the Article XXI of GATT. 
The following documents were necessary  to obtain a licence:  (a) an appli cation, (b) a document confirming the 
payment of licence fee, (c) a copy of cer tificate of state registration, (d) a copy  of a contract (agreement) on sales-
purchase with participants of intern ational trade deal, (e) a licence for pr oduction of alcohol products, or for 
storage and sale of ethyl spirit in case of importing ethyl spirit.  It is necessary to present relevant documents when getting 
a license for export and import of goods for the licensing 
regime's proper functioning.  This provision corresponds to the provision of the Article 1.5 of the Agreement.    
A license is given to the applicant for a period of one calendar year to conduct export and import operations - by 
individual transactions. The license holder has the right to reject a license notifying the issuing body. 
Licenses are issued for one type of good (work, service) independent of range of goods included in the contract. Period of license validity is reasonable, which is in 
compliance with Article 3.5 of the Agreement.    
Licenses are issued no later than within a month, for entitie s of small business - no later than within ten days since 
the date of submission of an application along with all necessary documents.    Generally, review of the license application and approval 
of it by the relevant agencies of the RK does not take 
more than one month.   
  WT/ACC/KAZ/50
 Page 117Licensing procedures Compliance with the WTO Agreement on import 
licensing procedures (h ereinafter –Agreement) Export and import of goods excluding import of ethyl spirit 
and alcoholic beverages Import of ethyl spirit and alcoholic beverages 
A license is not issued if: 
 
1) conduction of certain types of activities by the indicat ed category of entities is prohibited by the legal acts; 
2) the required documents are not submitted. If the app licant eliminates the indicated  drawbacks the application 
is considered on the general basis; 
3)  a license tax for the right to conduct certain types of activities is not paid; 4)  the applicant does not meet established qualification requirements; 
5)  there is a court decree prohibiting conduction of certain types of activities. Procedure of rejection of license issuing does not 
contradict provisions of the Articles 1.7 and 1.8 of the 
Agreement. 
If a license is not issued precisely on the established terms or if rejection appears as unjustified the applicant has 
the right to appeal to the court in one month period.  If the court discloses the facts of unjustified rejection or untimely issue of a license it pronounces the judgment binding the licensing body to issue a license in ten days 
period since the date when the court judgment comes into force.    If the application is not approved the applicant has the 
right to appeal to the court which complies with the provision of the Article 3.5 of the Agreement.   
 WT/ACC/KAZ/50 
Page 118  
 
 ANNEX 2 
List of National Companies and Joint Stock Companies With State Shares 
No. Business Name State share 
(%) Line of Activity, Notes 
1 2 3 4 
Oil and Gas 
1 JSC National Company "KazMunaiGaz"  (Astana) 100 oil and gas  
2 JSC Main Dispatching Unit for Oil and Gas Industry 
(Astana) 100 oil and gas 
3 OJSC Pavlodar Petroche mical Plant (Pavlodar) 49 oil refinery, etc. 
4 OJSC Kondensat (Aksai) 25   
Mining 
5 OJSC Joint Venture 'Vasilkovskoe Zoloto' (Akmola 
Oblast) 40 mining 
6 OJSC Sokolovsk-Sarbai Conglomerate Mill (Rudny, 
Kostanai Oblast) 39.5 mining 
7 OJSC Akbaka Concentration Plant (Zhambyl Oblast) 33.3 mining, etc. 
8 JSC Transnational Company 'Kazchromium' (Almaty ) 31.37 metallurgical industy          
9 JSC KazZinc (Ust-Kamenogorsk) 27.64 me tallurgical industy          
10 OJSC Maikainzoloto (Pavl odar Oblast) 25 mining, etc. 
Manufacturing 
11 OJSC National Company "Kazakhstan Engineering" 
 (Astana) 100 mechanical engineering 
12 OJSC Kazchermetautomatica (Karagandy)   90 mechanical engineering 
13 OJSC Temirbeton (Almaty) 55.71 construc tion materials 
14 OJSC Yrysty-AEVRZ (Almaty)   50 rail car maintenance 
15 OJSC Kazakhstantractor (Pavloda r) 33.92 mechanical engineering 
16 OJSC Joint Venture 'Belkampit' (Alm aty) 22.84 mechanical engineering 
Energy 
17 OJSC Kazakhstan Electricity Grid Operating Company 
(KEGOC) (Almaty) 100 transportation of electric energy, 
National Company 
18  CJSC National Nuclear Power Company "Kazatomprom" 
 (Almaty) 100 nuclear energy, National 
Company 
19 OJSC Shardara Water Power Plant  (South Kazakhstan) 100 electric energy 
20 CJSC Kazakhenergoexpertise (Almat y) 100 power equipment testing  
21 CJSC Operator of the Market of Electric Energy and 
Generated Output of the Repub lic of Kazakhstan (Almaty) 100 electric energy market tendering 
22 CJSC Ekibastuz Power Center (Ekibastuz) 100 electric energy 
23 OJSC Taldykorgan Joint-Stock Company for 
Transportation by Electric Networks (TATEC) (Almaty 
Oblast) 100 transportation of electric energy, 
etc. 
24 OJSC Kyzylorda Distributing Power Company 
(Kyzylorda) 100 transportation of electric energy, 
etc. 
25  OJSC West Kazakhstan Distributing Power Company 
'Uralskenergo' (Uralsk) 100 transportation of electric energy, 
etc. 
26  OJSC Mangystau Distributing Power Company (A qtau) 93.8 transportation of electric energy, 
etc. 
27 OJSC Zhezkazgan Distributing Power Company 
(Zhezkazgan) 90 transportation of electric energy 
28 OJSC Bukhtarma Water Power Plant (E ast Kazakhstan)  90 electric energy 
29 OJSC Chokin Institute of Power Research of the Republic 
of Kazakhstan (Almaty) 49.34 power research  
30 OJSC Eurasian Power Co rporation (Aksu, Pavlodar 
Oblast) 24.33 electric energy 
31 OJSC Astanaenergoservice (Astana) 15.34 energy services  WT/ACC/KAZ/50 
 Page 119 
 
 
 No. Business Name State share 
(%) Line of Activity, Notes 
1 2 3 4 
Transport and Communications 
32 JSC National Company 'Kazakhstan Temir Z holy' (Astana) 100 rail transportation 
33 CJSC Air Astana (Astana) 51 air transportation 
34 OJSC Atyrau Aue Zholy (Atyrau) 29.7 air transportation 
35 OJSC Aircompany 'Zhezkazgan Air' (Z hezkazgan) 90 air transportation, etc. 
36 JSC International Airport 'Aqtob e' (Aqtobe) 100 airport services  
37 CJSC International Airport 'Astana' (Astana) 100 national company 
38 CJSC National Shipping Company "Kazmortransflot" 
(Astana) 50 maritime traffic 
39 OJSC Kazakhtelecom (Astana)  50 communications, national 
company 
40 OJSC Kazmail (Almaty) 100 communications, national 
company 
41 JSC Republican Center of  Space Communications and 
Electromagnetic Compatibil ity of Radioelectronic 
Facilities (Astana) 100 space technologies and 
communications  
42 CJSC Catelco (Almaty) 37 satellite co mmunications 
43 CJSC National Information Technologies (A stana) 100 development and implementation 
of computer technologies 
Agriculture 
44 JSC Food Contract Corporation (Ast ana) 100 procurement and storage of 
national grain reserves, National 
Company 
45 CJSC Kazagrex (Almaty) 100 grain quality testing 
46 CJSC Corporation of Animal  Products (Astana) 100 processing of agricultural products 
47 OJSC Asyl Tulik (Aqmola Oblast) 76.77 breeding 
48 OJSC Breeding Station "Astana-Kus"  (Aqmola Oblast) 70 poultry breeding 
49 OAO Sultan (Petropavl) 58.66  grain storage, etc. 
Education and Science 
50 CJSC Karagandy Institute of Metallurgy (Temirtau) 97 scientific research in mining 
51 OJSC Road Research Institute of the Republic of 
Kazakhstan (Almaty) 90.01 highway design  
52 JSC S.Seifullin Agrarian University of the Republic of 
Kazakhstan (Astana) 80 education 
53 CJSC Zhezkazgan Baikonurov University (Zhezkazgan) 80 education 
54 CJSC Institute of Complex Subsurface Development 
(Karagandy) 80   
55 OJSC Academy of Civil Av iation (Almaty) 80 education 
56 CJSC F.F.Mukhamedgaliev Institute of Experimental 
Biology (Almaty) 54 biological research 
57 OJSC T.Ryskulov University of Economics of the 
Republic of Kazakhstan (Almaty) 35 education 
58 JSC Academy of Sports and Tourism of the Republic of 
Kazakhstan (Almaty) 35 education 
59 ТОО  Institute of Organic Synthesis and Coal Chemistry 
(Karagandy) 35 scientific research in organic 
chemistry 
60 JSC Head Academy of Archit ecture and Construction of 
the Republic of Kazakhstan (Almaty)  35 education 
61 OJSC M.Tynyshpaev Kazakh Academy of Transport and 
Communications (Almaty) 35 education 
62 OJSC Abylai-khan Universi ty of Foreign Affairs and 
World Languages (Almaty) 35 education 
63 OJSC Humanitarian University  of Law of the Republic of 
Kazakhstan (Astana) 35 education 
64 JSC Almaty Institute of Energy and Communications 
(Almaty) 33.6 education 
65 OJSC Almaty Technological Univ ersity (Almaty) 20.01 education WT/ACC/KAZ/50 
Page 120  
 
 No. Business Name State share 
(%) Line of Activity, Notes 
1 2 3 4 
Finance 
66 CJSC Fund for the Development of Small Businesses 
(Almaty) 100 lending to small businesses  
67 CJSC Kazakhstani Center for the Promotion of 
Investments (Almaty) 100 assessment of investment projects  
68 JSC National Fund of Innovatio ns (Almaty) 100 investments 
69 JSC  Investment Company: Investment Fund of 
Kazakhstan (Almaty) 100 investments 
70 JSC National Insurance Corporation for the Insurance of 
Export Loans and Investments (Almaty) 100 investments 
71 JSC Kazagromarketing (Astana) 100 agricultural marketing  
72 JSC Agrarian Credit Corporation (Astana)  100 agricultural lending 
73 CJSC Fund for the Financial Support to Agriculture 
(Astana) 100 agricultural lending 
74 JSC KazAgroFinance (Astan a) 100 agricultural lending 
75 CJSC Rehabilitation Fund (Astana)  100 repayment of relief loans 
76 CJSC Debt Management Center  100 financial de bt management 
77 JSC  Housing Savings Banks of  Kazakhstan (Almaty) 100 banking 
78 CJSC Capital Development Corporation (Astana) 100 attraction of investments  
79 CJSC National Accumulation Insurance Fund (GNPF) 
(Astana) 100 pension fund, etc. 
80 JSC Grain Liabilities Guaranty Fund (Astana) 90 guarantee of liabilities of grain 
receiving companies 
81 JSC Development Bank of Ka zakhstan (Astana) 80 banking 
Mass Media 
82 OJSC Kazakh Gazetteri (Almaty) 100 mass media 
83 JSC Republican Newspape r "Egemen Kazakhstan" 
(Astana)     100 mass media 
84 JSC Republican Newspaper "Kazakhstanskaya Pravda" 
(Astana)  100 mass media 
85 OJSC Zhas Orken (Almaty) 100 mass media 
86 JSC Republican Television and Radio Corporation 
'Kazakhstan' (Almaty) 100 radio- and telebroadcasting 
87 CJSC Television and Radio Complex of the President of 
the Republic of Kazakhstan (Astana)  100 radio- and telebroadcasting 
88 OJSC Kazteleradio (Almaty) 78 transmission of tele- and radio 
signals, etc. 
89 JSC Khabar Agency (Almaty) 50+1 share radio- and telebroadcasting 
90 OJSC National Company 'Kazakh Information Agency' 
(Astana) 100 National Company 
Publishing 
91 OJSC Semei Polygraphy  34 polygraphy 
92 OJSC Kazbaspasoz (A lmaty) 100 polygraphy 
93 CJSC Publishing House of Magazine 'Health Service in 
Kazakhstan' (Almaty) 100 publishing 
94 CJSC Kazakh Encyclopedia (Almaty) 100 publishing 
95 CJSC Mektep Press 80 publishing 
96 OJSC Alatau Press (Almaty) 34 polygraphy 
97 OJSC Karagandy Polygraphy (Karagandy) 49 polygraphy  WT/ACC/KAZ/50 
 Page 121 
 
 
 No. Business Name State share 
(%) Line of Activity, Notes 
1 2 3 4 
Miscellaneous 
98 OJSC National Assessment and Certification Center 
(Astana) 100 assessment, certification 
99 OJSC National Accreditation Center (A stana)   100 pre-accreditation document 
preparation 
100 CJSC Republican Information and Show Center for Small 
Businesses (Astana)    100 information services for small 
businesses 
101 OJSC Kazakhvzryvprom (Almaty) 100 blasting operations 
102 JSC Center of Engineering and Transfer of Technologies 
(Astana) 100   
103 OJSC National Center 'Kurylysconsultin g' (Astana) 100 real estate assessment 
104 CJSC Institute of Legislature of the Republic of 
Kazakhstan (Astana)    100 legal services 
105 OJSC Zan (Almaty)  67 legal services 
106 CJSC Logistics Office of the Ministry of Education 
(Astana) 100 support of the public body 
107 CJSC Diplomatic Corps Managment Departme nt (Almaty) 100 support of diplomatic corps 
108 JSC Marketing Research Center (Almaty) 100 consultation services 
109 OJSC Medical Transport Service (Alm aty) 34 medical services, sanitation 
110 CJSC Front Office for Construction Site Surveillance of 
the Administration of the President (Astana) 100 construction site surveillance 
111 CJSC Alatau Hotel (Astana) 54 hotel services 
112 OJSC Health Resort 'Almaty' (Alma ty) 100 medical services, sanitation 
113 CJSC Industrial Park (Alm aty) 100 innovation projects 
114 CJSC Republican Center of Folk Me dicine (Almaty) 100 medical services 
115 OJSC Industrial Part of the Association "Progress" 
(Stepnogorsk) 100   
117 CJSC Contract Agency of the Republic of Kazakhstan 
(Astana) 100   
116 OJSC Kazpromgeofizica (Almaty) 96.54 geology 
118 Mangystau Industrial Company (Aqtau) 100   
  
 WT/ACC/KAZ/50 
Page 122 ANNEX 3 
List of Services Provided by Natural Monopolies 
No. Types of activities referred to 
the sphere of natural monopoly 
in accordance with the Law of 
the Republic of Kazakhstan 
(hereinafter RK) "On Natural 
Monopolies" Regulated types of services Number of natural monopoly entities 
providing such types of services included 
in the State Register Total Regulation mechanism The list of basic normative legal acts 
regulating the activities of natural monopoly 
entities and issues of tariff setting Republican 
sections Local  sections 
1 Transportation of oil and (or) oil 
products by main pipelines 
CPC (713, 7131, 7139, 71310) 
 Transportation of oil and 
(or) oil products by main 
pipelines 
 2  2 Approval of a tariff (prices, fee 
rates); 
Approval of tariff estimates; 
Imposition of a temporary decreasing coefficient; Special order of expenses 
accumulation  The Law of the RK "On Natural 
Monopolies" dated 9 July 1998; the Law of 
the RK "On competition and limitation of 
monopoly activities" dated 19 January 2001; the Law of the RK "On power industry" dated  16 July 1999 No. 438-1  
2 Transportation of gas and (or) 
gas condensate by main 
pipelines  CPC (713, 7131, 7139, 71310) Transportation of gas and 
(or) gas condensate by 
main pipelines  1 5 6 Approval of a tariff (prices, fee 
rates); 
Approval of tariff estimates; Imposition of a temporary 
decreasing coefficient; 
Special order of expenses accumulation The Resolution of the Government of the RK 
"On approval of the Program of Natural 
Monopoly Entity Tariff Policy Improvement for the period of 2002 – 2004" dated 15 
October  2002 No. 1126   
3 Transportation of gas and (or) 
gas condensate by distributing 
pipelines 
CPC (713, 7131, 7139) Transportation of gas and 
gas condensate by 
distributing pipelines  1 33 34 Approval of a tariff (prices, fee 
rates); 
Approval of tariff estimates; 
Imposition of a temporary decreasing coefficient; 
Special order of expenses 
accumulation The Resolution of the Government of the RK 
"On approval of the Regulation for public 
hearings conduct when considering the 
applications for approval or change of the tariffs (prices, fee rates) of natural 
monopolies" dated 21 April 2003 No. 376   
4 Operating of gas distributing 
settings and connected gas distributing pipelines  
CPC  713 Operating of gas 
distributing settings and connected gas distributing 
pipelines  8 8  Approval of a tariff (prices, fee 
rates); Approval of tariff estimates; 
Imposition of a temporary 
decreasing coefficient; Special order of expenses 
accumulation The Resolution of the Government of the RK 
"On additional measures for the state regulation of natural monopoly's service 
charges and tariffs" dated 9 April 1999 
No. 400;  
The Concept on Further Market Relations 
Development in the Power Industry of the RK approved by the Resolution of the Government of the RK of 18 February  2004 
No. 190; 
 The Republic of Kazakhstan's 
Telecommunication Sector Development 
Program for the years 2003 – 2005", approved by the Resolution of the 
Government of RK of 18 February 2003 
No. 168;   
The Program of Railway Transport 
Restructuring for the years 2004-2006  
  WT/ACC/KAZ/50
 Page 123No. Types of activities referred to 
the sphere of natural monopoly 
in accordance with the Law of 
the Republic of Kazakhstan 
(hereinafter RK) "On Natural 
Monopolies" Regulated types of services Number of natural monopoly entities 
providing such types of services included 
in the State Register Total Regulation mechanism The list of basic normative legal acts 
regulating the activities of natural monopoly 
entities and issues of tariff setting Republican 
sections Local  sections 
approved by the Resolution of the 
Government of the RK of 6 February 2004 
No. 145 
5 Delivery and (or) distribution of 
of electric power by regional or interregional electric networks  CPC 87700 Delivery of electric power; 
Distribution of electric power; Services on providing 
reliability and stability in 
supply of electric power for electric power 
consumers  9 
 
9 
 
1 91 
 
88 98 
 
94 
 
1 
  Approval of a tariff (prices, fee 
rates); Approval of tariff estimates; Imposition of a temporary 
decreasing coefficient; 
Special order of expenses accumulation The Agency Order "On Approval of the 
Regulation on Expenses Formulation Used to Determine the Tariffs (Prices, fee rates) for the Services (Goods, Works) of Natural Monopolies" of 30 July 2003 No. 185- ОД 
 
6 Services on technical production 
control of delivery into the 
network and consumption of electric power  
CPC 87700 Services on technical 
production control of 
delivery into the network and consumption of 
electric power 1  1 
 Approval of a tariff (prices, fee 
rates); 
Approval of tariff estimates; Imposition of a temporary 
decreasing coefficient; 
Special order of expenses accumulation The Agency Order No. 82- ОД dated  
19 March 2003 " Оn adoption of Instructions 
on the approval of tariffs (prices, fee rates) and tariff estimates on services (goods, 
works) of natural monopolies"; 
 
7 Delivery and (or) distribution of 
heat energy  
CPC 88 Delivery and/or 
distribution of heat energy 7 
7 162 
162 167 
167 Approval of a tariff (prices, fee 
rates); 
Approval of tariff estimates; 
Imposition of a temporary decreasing coefficient; 
Special order of expenses 
accumulation The Agency Order No. 30- ОД dated 
3 February 2003 " Оn adoption of Instructions 
on the approval and introduction of tariffs 
(prices, fee rates) for services (goods, works) of natural monopolies for a  medium term 
period" 
8 Production of heat energy by 
heating boiler-houses, stations with mixed type of production  
CPC 88  Production of heat energy 
by heating boiler-houses, stations with mixed type of 
production   4 135 139 
 Approval of a tariff (prices, fee 
rates); Approval of tariff estimates; 
Imposition of a temporary 
decreasing coefficient; Special order of expenses accumulation The Order of the Agency No. 49- ОД dated  
24 February 2003 " Оn adoption of the 
Instruction on approval of natural 
monopoly's reorganizati on or liquidation at 
the authorized body"   
 WT/ACC/KAZ/50 
Page 124 
No. Types of activities referred to 
the sphere of natural monopoly 
in accordance with the Law of 
the Republic of Kazakhstan 
(hereinafter RK) "On Natural 
Monopolies" Regulated types of services Number of natural monopoly entities 
providing such types of services included 
in the State Register Total Regulation mechanism The list of basic normative legal acts 
regulating the activities of natural monopoly 
entities and issues of tariff setting Republican 
sections Local  sections 
9 Services of main railway 
network 
CPC 71111, 71112  
 
   
 
  
 
  
 
  
 
CPC 7112  
CPC 71124 
 Transportation of cargo by 
republican and 
international communications, 
excluding transit 
transportation; Transportation of passengers by railways in 
republican and 
international communications, 
excluding transportation of 
passengers by trains formed of the carriages 
produced by "Patents 
Talgo SA" Spanish company  
Transportation of luggage 
and cargo by railways; Transportation of mail by 
railways  1 
 
 
1 
 
   
 
 
1 
 
1  
 
  1 
 
 
1 
 
   
 
 
1 
 
1 Approval of a tariff (prices, fee 
rates); 
Approval of tariff estimates; Imposition of a temporary 
decreasing coefficient; 
Special order of expenses accumulation The Agency Order No. 121- ОД dated 4 May 
2003 "Оn adoption of the Instruction for 
approval by the authorized body the conduct of other types of activities technically related 
to the main activities and/or relevant to the 
natural monopoly's sphere in regard to the Kazakhstani legislation on mail"  
10 Approaching ways services   Approaching ways services  2 92 90 Approval of a tariff (prices, fee 
rates); Approval of tariff estimates; 
Imposition of a temporary 
decreasing coefficient; Special order of expenses 
accumulation The Agency Order No. 16- ОД dated 
27 January 2003 " Оn adoption of the 
Instruction on approval and concordance of 
natural monopolies' investment projects" 
 
11 Aeronavigation services 
CPC 7453  Aeronavigation servicing 
in airspace of RK; 
Aeronavigation servicing in the aerodrome area 1 
 
1  1 
 
1 Approval of a tariff (prices, fee 
rates); 
Approval of tariff estimates; Imposition of a temporary decreasing coefficient; 
Special order of expenses 
accumulation The Agency Order No. 125- ОД dated 5 May 
2003 "Оn the Instruction on approval of 
alienation and other prope rty transactions of 
natural monopolies with the authorized body" 
  
  WT/ACC/KAZ/50
 Page 125No. Types of activities referred to 
the sphere of natural monopoly 
in accordance with the Law of 
the Republic of Kazakhstan 
(hereinafter RK) "On Natural 
Monopolies" Regulated types of services Number of natural monopoly entities 
providing such types of services included 
in the State Register Total Regulation mechanism The list of basic normative legal acts 
regulating the activities of natural monopoly 
entities and issues of tariff setting Republican 
sections Local  sections 
12 Port services 
CPC 745 Ship services; 
Lighthouse services; 
Channel passing services; Mooring services; 
Anchor services; 
Tie-down services; Environment protection measures; 
Quarantine services; 
Shipment and dumping works. 1 
1 
 
1 
 
1 1 1 
 
1 
 
 
1 
 
1 
2  1 
1 
 
1 
 
1 1 1 
 
1 
 
 
1 
 
1 
2 Approval of a tariff (prices, fee 
rates); 
Approval of tariff estimates; Imposition of a temporary 
decreasing coefficient; 
Special order of expenses accumulation The Agency Order No. 57- ОД dated 
26 February 2003 " Оn approval of the 
Regulation for addition and exclusion of natural monopolies from the State Register of 
natural monopoly entities" 
 
13 Airport services  
CPC 731 Services on providing take 
off and landing of an aircraft; 
Services on providing 
aviation  safety  2 
  
2 18 
  
18 20 
  
20 Approval of a tariff (prices, fee 
rates); Approval of tariff estimates; 
Imposition of a temporary 
decreasing coefficient; Special order of expenses 
accumulation The Agency Order No. 80- ОД dated 
19 March 2003 " Оn adoption of the 
Regulation on tariff  establishment (prices, 
fee rates) according to a simplified 
procedure"  
14 Telecommunication services 
with the use of local networks  
CPC (752, 75211, 75212) Connection of subscriber 
terminal to the 
telecommunication network ; 
Providing local telephone 
communication according to a subscriber payment 
system; 
Providing local telephone communication according to time payment system; 
Providing inter-town 
telephone communication; Leasing of digital 
telephone channels of 
inter-town and zonal networks; 
Telegram sending in RK; 
Providing television broadcasting channel; 
Providing network 
resources to communication statement   3 
 
  
 
  
 
   
 
  
 
  12 
 
  
 
 15 
 
  
 
  
 
   
 
  
 
  Approval of a tariff (price, fee 
rates); 
Approval of tariff estimates; Imposition of a temporary 
decreasing coefficient; 
Special order of expenses accumulation The Agency Order No. 46- ОД dated 
20 February 2003 " Оn approving the 
Regulation on reducing tariffs (prices, collection rates) for services (goods, works) 
provided for all consumers of natural 
monopoly entities during validity of tariffs (prices, collection rates)"; 
 
The Order of the Agency No. 216- ОД dated 
28 October 2002 " Оn approving the 
Regulation on applying antimonopoly 
regulation measures in case of violation of 
antimonopoly legislation"  
15 Water management system Delivery of water by main 3  3 Approval of a tariff (price, fee The order of the Agency No. 149- ОД dated  
 WT/ACC/KAZ/50 
Page 126 
No. Types of activities referred to 
the sphere of natural monopoly 
in accordance with the Law of 
the Republic of Kazakhstan 
(hereinafter RK) "On Natural 
Monopolies" Regulated types of services Number of natural monopoly entities 
providing such types of services included 
in the State Register Total Regulation mechanism The list of basic normative legal acts 
regulating the activities of natural monopoly 
entities and issues of tariff setting Republican 
sections Local  sections 
services  
CPC (9401, 94010) networks; 
Delivery of water by 
distribution networks; Water scoop and water 
purification   
4 
  
7  
315 
  
315  
319 
  
322 rates); 
Approval of tariff estimates; 
Imposition of a temporary decreasing coefficient; 
Special order of expenses 
accumulation 6 June 2003 " Оn approving the Regulation 
on procurement of material, financial 
resources and services, the costs of which  are taken into account when setting tariffs 
(prices, collection rates) on the services 
provided by natural monopoly entities 
16 Sewerage system services  
CPC (940, 401, 94010) Drainage of sewage water; 
Purification of sewage 
water  3 
 
3 159 
 
159 162 
 
162 Approval of a tariff (price, fee 
rates); 
Approval of tariff estimates; Imposition of a temporary 
decreasing coefficient; 
Special order of expenses accumulation The Order of the Agency No. 04- ОД dated 
13 January 2003 " Оn terms of approving 
tariffs (prices, collection rates) for the services (goods, works) of natural monopoly 
entities" 
 
17 Public mail services  
CPC 751 Sending of a letter; 
Sending of a card; 
Sending a postal wrapper  1 
 
1 
1  1 
 
1 
1 Approval of a tariff (price, fee 
rates); 
Approval of tariff estimates; 
Imposition of a temporary decreasing coefficient; 
Special order of expenses 
accumulation The Order of the Agency No. 118- ОД dated 
7 June 2002 " Оn approving the Regulation 
on preparing, compiling and agreeing a 
normative legal act and le gal act drafts of the 
Agency of the Republic of Kazakhstan on 
regulation of natural monopolies and 
protection of competition"; The Order of the Agency No. 44- ОД dated 
20 February 2003 " Оn additional 
requirements to the mandatory annual natural monopoly entity audit agreement"; 
The Order of the Agency of 
26 December 2003 No. 341- ОД "Оn 
approving the Regulation on agreeing a 
temporary compensating tariff (price, 
collection rate)"; The Order of the Agency " Оn approving the 
Regulation on natural monopoly entity 
investment program implementation efficiency monitoring" of 26 December 2003 No. 340-ОД; 
The Regulation on public utilities services 
providing and the Regulation on electric power consumption, The Regulation on 
heating power consumption approved by the 
resolution of the Government of the republic of Kazakhstan of  7 December 2000 
No. 1822; 
The Regulation on establishing and cancellation of  reducing coefficients to the 
tariffs on electric power delivery (transit) 
services approved by the Order of the Chairman of the Agency of 
29 December 1999 No. 23- ОД  registered in  
  WT/ACC/KAZ/50
 Page 127No. Types of activities referred to 
the sphere of natural monopoly 
in accordance with the Law of 
the Republic of Kazakhstan 
(hereinafter RK) "On Natural 
Monopolies" Regulated types of services Number of natural monopoly entities 
providing such types of services included 
in the State Register Total Regulation mechanism The list of basic normative legal acts 
regulating the activities of natural monopoly 
entities and issues of tariff setting Republican 
sections Local  sections 
the Ministry of Justice of the Republic of 
Kazakhstan of  6 January 2000 No. 1025  
  
 WT/ACC/KAZ/50 
Page 128 ANNEX 4 
Excise Tax Rates Applied to Domestic ally Produced and Imported Goods 
(approved by the Resolution of the Government of the Republic of Kazakhstan No. 137 dated 28 January 2000) 
Code of foreign 
trade invoice Title Tax base (object of 
imposing) Excise rates for: 
Manufactured goods 
and gambling business Imported goods 
 All types of spirits (except alcohol sold as alcoholic beverages, medical and pharmaceutical 
medication if producers have the license for pr oduction of indicated goods and received by 
state medical institutions within the lim its of established quotas)        physical volume  300 tenge/1 litre € 3 */1litre 
 
Alcohol sold for production of alcoholic be verages if producers have the license for 
production of indicated goods  physical volume 30 tenge/1 litre € 0.3 /1 litre 
2208** Alcoholic beverages (except so me low alcohol beverages with  ethyl spirit content up to 
12%, balms, alcohol registered in accordan ce to the legislation of the Republic of 
Kazakhstan as medication, cognac, brandy, wi ne beverages, wine, champagne, sparkling 
wine, aerated wine, processed wine and beer)     physical volume 125 tenge/1 litre of 
waterless (100%) 
alcohol € 1.7 /1itre  
Other low alcohol beverages with ethyl spirit cont ent up to 12%  physical volume 125 tenge/1 litre of 
waterless  (100%) 
alcohol € 0.4 /litre 
Balms registered as medication in accordance  with the legislation of the Republic of 
Kazakhstan  physical volume 10 tenge/1 litre € 0.4 /1 litre 
Cognac, brandy  physical volume 20 tenge/ 1 litre € 1.7 /1 litre 
Balms registered as medication in accordance  with the legislation of the Republic of 
Kazakhstan 
 physical volume 10 tenge/1 litre € 0.4 /1 litre 
Wine drinks physical volume 30 tenge/1 litre € 0.4 /1 litre 
Cognac, brandy  physical volume 20 tenge/1 litre € 1.7 /1 litre 
Wine drinks        physical volume 30 tenge/1 litre € 0.4 /1 litre 
From 2204, 2205, 
2206 00 Wine (except champagne, sparkling wine, aerated (pearl)  physical volume 10 tenge/1 litre € 0.4 /1 litre 
Champagne, sparkling wine, aerated (pearl)  physical volume 20 tenge/1 litre € 0.4 /1 litre 
2203 00** Beer  physical volume 7 tenge/1 litre € 0.2 /1 litre 
2402** Tobacco goods with filter physical vol ume 180 tenge/1,000 units € 2 /1,000 units 
Tobacco goods without filter and other produc ts containing tobacco            100 tenge/ 1,000 units € 2 /1,000 units  
from 0301, 0302, 
0303, 0304, 0305, 
1604 ** Sturgeon and salmon caviar            For produced– cost, 
for imported – 
custom value 100% 100%  
  WT/ACC/KAZ/50
 Page 129Code of foreign 
trade invoice Title Tax base (object of 
imposing) Excise rates for: 
Manufactured goods 
and gambling business Imported goods 
271000270-
271000360** Gasoline(except aviation spirit): physical volume  € 31 /1 tonne 
Wholesale trade of gasoline (excep t aviation spirit) by producers  physical volume 4,500 tenge/1ton  
Retail trade of gasoline (except aviation spirit) by producers,  use for own industrial needs  physical volume 5,000 tenge/1ton  
Retail trade of gasoline and diesel oil by juridical and natural persons (except aviation 
spirit)) use for own industrial needs physical volume 500 tenge/1ton  
271000610, 
271000650, 
271000690** Diesel oil physical volume  - 
Wholesale trade of diesel oil (e xcept aviation spirit) by producers  physical volume 540 tenge/1 ton  
Retail trade of diesel oil (except aviation spirit) by producer s, use for own industrial needs  physical volume 600 tenge/1 ton   
Retail trade of diesel oil (except aviation spir it) by juridical and natural persons,  use for 
own industrial needs physical volume 60 tenge/1 ton  
8703 Cars Custom value or 
volume of the 
engine - 10%, but not less than 0,5 
euro/cubic sm. (only for 
cars with the volume of the 
engine more than 3,000 
cubic sm.) 
 Gambling business (except lottery)             Game table  130-740 - 
game-playing machine with 
money prize  5-25 MCI - 
  Totalizator cash 
register  80-200 MCI - 
cash register  20-100 MCI - 
 Lottery organization and conducting  Declared  - 10 %     
gain deducting the 
amount not 
including excise tax  
of prize fund   10% - 
* Euro is calculated in tenge according to th e exchange rate of the National Bank of th e Republic of Kazakhstan on the date est ablished by the custom legislation for paying the 
customs duties. 
** Nomenclature of goods is defined as foreign trade invoice code as well as a title of goods   
 
  
 WT/ACC/KAZ/50 
Page 130 ANNEX 5 
List of Goods Subject To Import And Export Licensing 
(approved by the Resolution of the Government of the Republic of Kazakhstan on 30 June 1997, No. 1037) 
HS Number Goods Ministries responsible 
for administration of 
license Ministries subject to coordination upon 
issuing licenses Type of 
licence Justification 
010119900, 010290900,                         
010391900, 010392900,                         
010410800, 010420900, 01060090        
(only wild animals) 
070951, 070952000, 071080610, 
071080690                                              Wild animals,  
wild growing plants 
(besides those falling under the 
Convention on trade of 
endangered wild life and fauna) Ministry of  Industry 
and Trade of the RK The License issuing on  the basis of  
permission of the Government of the RK Export This measure applies for the 
purposes of environment 
protection of the RK. 
871000000, 8802 (except 
880211100, 880212100, 
880220100, 880230100,880240100), 
8803(except 880310100,                        
880320100, 880330100,                         
880390910), 880400000,                       
(only for military purposes)                  
8805(except 880520100), 
890600100,                                          
930100000,930200, 9305                       
(only to fighting guns), 
9306 (except 930610000, 930629400,   
930630910-930630980, 930690900,     
901310000( only for military 
purposes)                                                
901320000(only for military 
purposes)                                                
901380 (only for military purposes),     
9014 (only for military purposes), 
8525 (only for military purposes),         
8526 (only for military purposes) Army equipment and military 
devices, specially completed 
articles for it's production, works 
and services in the field of 
military-technical cooperation.   
 Ministry of  Industry 
and Trade of the RK The License issuing on the basis of  
permission of the Government of the RK Export/ 
Import This measure is used for the 
reason of the national 
security interests protection 
in regards to trade of guns, 
ammunition, military 
materials, which directly or 
indirectly used for the 
purpose of supplying the 
military forces.  
  WT/ACC/KAZ/50
 Page 131HS Number Goods Ministries responsible 
for administration of 
license Ministries subject to coordination upon 
issuing licenses Type of 
licence Justification 
2844 (except  oxide- protoxide of 
natural uranium, unity of uranium by 
enrichment till 
20% under uranium isotope 235 and 
sources of radiation ionising, which 
not contain divisible element),   
2845, 380110000  only pure nuclear 
graphite), 8401, 711041000                   Nuclear materials, technology,  
equipment and settlements, 
special non nuclear materials, 
sources of active radiation, 
including radioactive waste 
products.          
 Ministry of Industry 
and Trade of the RK The License issuing on the basis of 
permission of the Government of the RK Export/ 
Import This measure applies for the 
purposes of protection of the 
state security interests in 
regards to spliting materials 
or materials they are 
produced from, and also for 
the purposes of life and 
health protection of the 
Kazakh population. 
9022 X-ray equipment,                         
devices and equipments with use 
of radioactive substances and 
isotops.                                              Ministry of Industry 
and Trade of the RK Ministry of   Health of the RK. Export/ 
Import This measure applies for the 
purposes of life and health 
protection of the Kazakh 
population. 
040700900, 0507, 050800000, 0604, 
051000,  071230000, 080221000, 
08022200, 0810, 0812, 121220000, 
1301, 1302 (except 130219300), 
9601                           Elephant bone, antlers, hoofs, 
maral's antlers, coralls and 
analogous materials (besides 
those falling under the 
Convention on trade of 
endangered wild life and fauna)       Ministry of Industry 
and Trade of the RK Ministry of Agriculture, 
Ministry of Environment protection of 
the RK Export This measure applies for the 
purposes of environment 
protection of the RK. 
020610100, 020622100, 020629100, 
020630100, 020641100, 020680100, 
020690100 (only from wild animals), 
0507 (only  medicine raw materials), 
051000,1211, 121220000,1302 
(except 130219300), 3001,3002 
(except ready done medicine 
materials) Medicine raw materials of 
vegetable and animal origin  
  Ministry of Industry 
and Trade of the RK Ministry of Agriculture, 
Ministry of Environment protection of 
the RК Export This measure applies for the 
purposes of environment 
protection of the RK. 
According to list ci\onfirmed by the Government of the RK Poison  
                                     
                       Ministry of Industry 
and Trade of the RK Ministry of  Health of the RK,  
Ministry of the Environment protection 
of the RK Export/ 
Import This measure applies for the 
purposes of life and health 
protection of the Kazakh 
population. 
280470001 Yellow Phosphorus  («white») 
   Ministry of Industry 
and Trade of the RK Ministry of Environment protection of 
the RK                   Export This measure applies for 
monitoring of exports of 
such products since they are 
extremely dangerous to 
human life and health.   
 WT/ACC/KAZ/50 
Page 132 HS Number Goods Ministries responsible 
for administration of 
license Ministries subject to coordination upon 
issuing licenses Type of 
licence Justification 
According to list confirmed by the 
Government of the RK Some types of raw materials, 
articles, equipm ent, technology 
and scientific-technical 
information, which can be used in 
creation of army equipment and 
devices.                                    Ministry of Industry 
and Trade of the RK Ministry of Education of the RK – 
Academy of Science, Committee of 
National Security  Export This measure is used for the 
reason of the national 
security interests protection 
in regards to trade of guns, 
ammunition, military 
materials, which directly or 
indirectly used for the 
purpose of supplying the 
military forces. 
According to list confirmed by the Government of the RK Materials, equipment and 
technology, which have peaceful  
meaning, but can be used in 
creation of missile, nuclear and 
other types of  weapon of mass 
destruction Ministry of Industry 
and Trade of the Rk Ministry of Education, Academy of 
Science, Committee on National Security Export This measure applies for the 
purposes of the national 
security interests protection 
as of possible use of these 
products in military time or 
in other extraordinary 
circumstances in the 
international relations.  
8471 (only  figuret yped technics) 
847330 (only for figuretyped 
technics) 
854390900 (only for figuretyped 
technics) Code means (including code 
technics, components for code 
technics and programme packets 
for code), norma tive- technical 
documentation to code means 
(including constructive and 
expluatational)   Ministry of Industry 
and Trade of the RK Committee on National Security Export/ 
Import This measure applies for the 
purposes of the international 
and national safety. 
360100000 (except for the gunpowder) 360200000, 
360300,3604 Gunpowder, explosive 
substances, means of explosion 
and  pyrotechnics  Ministry of  Industry 
and Trade of the RK Ministry of Internal Affairs Export/ 
Import This measure is used for the 
reason of the national 
security interests protection 
in regards to trade of guns, 
ammunition, military 
materials, which directly or 
indirectly used for the 
purpose of supplying the 
military forces. 
According to list confirmed by the 
Government of the RK Official and civil gun         
                                      Ministry of Industry 
and Trade of the RK Ministry of Internal Affairs Export/ 
Import This measure is used for the 
reason of the national 
security interests protection 
in regards to trade of guns, 
ammunition, military 
materials, which directly or 
indirectly used for the 
purpose of supplying the 
military forces.  
  WT/ACC/KAZ/50
 Page 133HS Number Goods Ministries responsible 
for administration of 
license Ministries subject to coordination upon 
issuing licenses Type of 
licence Justification 
According to list confirmed by the 
Government of the RK Means of protection from fighting 
poison gas, its parts and 
accessories.         
                       Ministry of Industry 
and Trade of the RK Ministry of Defence of the RK Export/ 
Import This measure is used for the 
reason of the national 
security interests protection 
in regards to trade of guns, 
ammunition, military 
materials, which directly or 
indirectly used for the 
purpose of supplying the 
military forces. 
  Normative- technical 
documentation to products of 
military purpose (including 
constructive and expluatational)   Ministry of Industry 
and Trade of the RK Ministry of Defence of the RK, 
Committee on Natioanl Security Export/ 
Import This measure applies for the 
purposes of protection of the 
national security interests in 
regards to trade of guns, 
ammunition, military 
materials, which directly or 
indirectly conducted for the 
purposes of provision of the 
military forces. 
261100000, 2613-2615, 280450,     
280490000, 280521000, 280530100, 
280540100, 2825 (except five-oxide, 
for  vanadium production), 
282619000, 284170000284190900, 
2846, 740500000  750220000, 
760120100, 8101, 8103, and mineral 
810411000, 8105, 810600, 8108 
resources (except titanium sponge), 
8109, 8112, 811300                                Rare Metalls, rareground                 
raw materials, alloy, 
combinations and articles    
  Ministry of Industry 
and Trade of the RK Committee on atomic energetic of the 
Ministry of Atomic Energy and Mineral 
Resources of the RK Export This measure is used for the 
reason of the national 
security interests protection 
in regards to trade of guns, 
ammunition, military 
materials, which directly or 
indirectly used for the 
purpose of supplying the 
military forces. 
830170000, 847130000,        
847141900, 847149900, 847150900, 
847330100, 851750, 851780900, 
8525, 852610900, 852691, 8527, 
854389900, 901910900, 9006, 
902219000, 902229000 
(only special technical devices, 
devices of information defence and 
other techniques of double 
application) Special technical devices intended 
for special operative- 
investigation activity, sources of 
information defence, other 
techniques of  double appli сation 
(including its components, 
application programme packets), 
normative- technical 
documentation to special 
technique means (including 
constructive and expluatational)       Ministry of Industry 
and Trade of the RK Committee on National Security Expor t This measure applies for the 
purposes of the international 
and national safety.  
 WT/ACC/KAZ/50 
Page 134 HS Number Goods Ministries responsible 
for administration of 
license Ministries subject to coordination upon 
issuing licenses Type of 
licence Justification 
2612,2805,2841,2844 (only oxide- 
protoxide of natural uranium, unity of 
uranium by enrichment till 20% 
under uranium isotope 235 and 
sources of radiation ionising. Not 
contain devisible elements), 
380110000 (except pure –nuclear 
graphite), 711011000, 711220000, 
711290000, 711510000, 740500000, 
750220000, 760120, 760200900, 
760820, 9022 Nuclear materials, techonologies, 
equipment and settlements, 
special non nuclear materials, 
sources of radioactive radiation, 
apparatus, based on application of 
X-ray, alpha-, beta- or gamma- 
radiation. 
 Ministry of Industry 
and Trade of the RK Committee on atomic energy of the 
Ministry of Eneregy and mineral 
resources of the RK. 
 Export/ 
Import This measure applies for the 
purposes of protection of the 
state security interests in 
regards to splitting materials 
or materials they are 
produced from, and also for 
the purposes of life and 
health protection of the 
Kazakh population. 
3808 (onle prepatations for plant protection) Chenical sources of plants 
protection Ministry of Industry 
and Trade of the RK Ministry of Agriculture, 
Ministry of  Environment protection of 
the RK Import This measure applies for the 
purposes of environment 
protection of the RK 
261800000-2620, 3915 Industrial waste materials  
 Ministry of Industry 
and Trade of the RK Ministry of Environment protection of 
the RK Import This measure applies for the 
purposes of environment 
protection of the RK 
121190800           Opium raw materials (medicinal  
herbs) 
 Ministry of Industry 
and Trade of the RK Ministry of  Health of the RK Import This measure is used for 
monitoring the import 
inflows since these products are rare found plants. 
210690200            Components of alcohol, half-
finished products, except of 
products made on the base 
fragrant substances, used in 
beverages production.            Committee of state 
control for production 
and turnover of excise 
products of the Ministry 
of Finance of the RK  
  Import  This measure applies for the 
purposes of life and health 
protection of the RK. 
2203 00 Beer made from malt 
2204, 2205, 2206 Wine  
2207 Ethyl alcohol               
2208 Ethyl alcohol nondenaturative 
with alcohol concentration less than 80%, alcohol nastoyka, 
liqueur and other alcohol drinks        
  WT/ACC/KAZ/50
 Page 135HS Number Goods Ministries responsible 
for administration of 
license Ministries subject to coordination upon 
issuing licenses Type of 
licence Justification 
830170000, 847130000,  847141900, 
847149900, 847150900, 847330100, 
851750, 851780900, 851810, 
851840,    851850900, 
852032,  852033, 852090900,  8521, 
8525, 8526, 8527   854389900, 
900219000, 900580000, 9013, 
901910900, 9006, 902219000, 
902229000, (only speci al technical 
devices, 
devices of information defence and 
other techniques of double 
application) Special technical devices intended 
for special operative- 
investigation activity, sources of 
information defence, other 
techniques of  double application 
(including its components, 
application programme packets), 
normative-technical 
documentation to special 
technique means (including 
constructive and expluatational)       Ministry of Industry 
and Trade of the RK Committee on National Security Import This measure applied for the 
purposes of international and 
national safety. 
271000210,  271000250, 271000390,  271000410, 271000450 White-spirit, other weak 
distillyats, other medium 
distillyats for specific processes 
of  processing for chemical 
conversion in processes Ministry of Industry 
and Trade of the RK Ministry of Energy and Mineral 
resources of the RK Import Licensing of these products 
was introduced to import 
quota which applied toward 
these products till 
31.12.2002. The Republic of 
Kazakhstan therefore is 
considering discontinue 
application of import 
licensing toward them.  
  
 WT/ACC/KAZ/50 
Page 136 List of Goods, which Export Conducted Under Licence in Accordan ce with International Obligations of the Republic of Kazakhstan 
(approved by the Resolution of the Government of the Re of Kazakhstan on 30 June 1997 No. 1037) 
HS Number Goods Ministries responsible 
for administration of 
licence State bodies of the RK, which coordinates 
the decision about issuing of license Justification 
7208 10 000, 7211 14 100, 
7208 25 000, 7208 38 900,         
7208 39 900, 7211 19 200, 
7208 26 000, 7208 27 000,         
7219 11 000, 7219 12 100,  
7219 12 900, 7219 13 100, 
7219 13 900, 7219 14 100, 
7219 14 900, 7208 36 000,         
7208 37 900, 7225 20 200, 
7225 30 000 
 Sheet of rolled metal 
1 Rolls    
  Ministry of Industry 
and Trade of the RK - This measure is used to fulfil the RK's obligations, 
under the Agreement between the Government of the 
RK and the European Coal and Steel Union on trade of 
certain steel  products dated 15 December 1999. 
7208 37 100, 7208 38 100, 7208 39 100 SA 1а Rolls, 
intendent for secondary 
rolling process 
7208 40 100, 7208 51 100,         7208 51 300, 7208 51 500,         
7208 51 910, 7208 51 990,         
7208 52 100, 7208 52 910,         
7208 52 990, 7208 53 100,         
7211 13 000 
 SA 2 thinsheet steel               
  
7208 40 900,  7208 53 900, 7208 54 100,  7208 54 900, 
7208 90 100,  7209 15 000, 
7209 16 100,  7209 16 900,        
7209 17 100,  7209 17 900,        
7209 18 100,  7209 18 910         
7209 18 990,  7209 25 000,        
7209 26 100, 7209 26 900,         7209 27 100, 7209 27 900,         
7209 28 100, 7209 28 900,   
7209 90 100, 7210 11 100,  
7210 12 110, 7210 12 190, 
7210 20 100, 7210 30 100, 
7210 41 100, 7210 49 100, 
7210 50 100, 7210 61 100, 
7210 69 100, 7210 70 310, 
7210 70 390, 7210 90 310, 
7210 90 330, 7210 90 380, 
7211 14 900, 7211 19 900, 
7211 23 100, 7219 32 900, SA 3 Other sheet rolled 
metal 
   
  WT/ACC/KAZ/50
 Page 137HS Number Goods Ministries responsible 
for administration of 
licence State bodies of the RK, which coordinates 
the decision about issuing of license Justification 
7219 33 100, 7219 33 900, 
7219 34 100, 7219 35 100, 
7219 35 900, 7225 40 800   
 
7219 34 900, 7219 23 000, 
7219 24 000, 7219 31 000, 
7219 32 100, 7212 60 910, 
7219 21 100, 7219 21 900, 
7219 22 100, 7219 22 900, 7212 50 310, 7212 50 510, 
7212 60 110, 7212 20 110, 
7212 30 110, 7212 40 100, 
7212 40 910, 7211 23 510, 
7211 29 200, 7211 90 110, 
7212 10 100, 7212 10 910,  
7211 23 990, 7211 29 500,  
7211 29 900, 7211 90 900 
 Plane rolled metal  made 
from carbonaceous steel in 
rolls no more than 500 mm. 
wide        
  Ministry of Industry 
and Trade of the Rk - This measure is used to fulfil the RK's obligations, 
under the Agreement between the Government of the 
RK and the European Coal and Steel Union on trade of 
certain steel  products dated 15 December 1999. 
7211 23 910, 7225 19 100, 7225 19 900, 7226 19 100, 
7226 19 300, 7226 19 900, 
 Plane rolled metal  made 
from electrotechnical steel 
with non oriented core              
7226 11 900 Plane rolled metal  made 
from siliceous  
electrotechnical steel with 
oriented core 
520411000, 520419 000, 
5205, 5206, 5604 90 000      Thread and yarn   
 Ministry of Industry 
and Trade of the RK - This measure is used to fulfill the RK's obligations, 
under the Agreement between the Government of the 
RK and the European Economic Community on trade 
of textile products (ratified in Brussels on 
15 October 1993) 
5208-5212,5512-5515,580390300, 
581100000,590500700, 
630800000 Cloth, fabric 
 Ministry of Industry 
and Trade of the RK - This measure is used to fulfill the RK's obligations, 
under the Agreement between the Government of the 
RK and the European Economic Community on trade 
of textile products (ratified in Brussels on 
15 October 1993)  
 WT/ACC/KAZ/50 
Page 138 HS Number Goods Ministries responsible 
for administration of 
licence State bodies of the RK, which coordinates 
the decision about issuing of license Justification 
610110-610130900, 
610210-610230900, 
610510000-610520, 
610590100, 
610610000-610620000, 
610690100,  
6110 (except 611090) 
6203 (except 620341300, 
620342110, 620342510, 
620342590, 620343110, 
620343310, 620343390, 
620349110, 620349310, 
620349390, 620349900) 
620461100,620510000-
620530000, 620620000-
620640000,621132900, 
621133 900,621142 900, 
621143900 Male clothes, female, 
children's, outer-clothes 
 Ministry of Industry 
and Trade of the RK - This measure is used to fulfill the RK's obligations, 
under the Agreement between the Government of the 
RK and the European Economic Community on trade 
of textile products (ratified in Brussels on 
15 October 1993) 
6109 (except 610990900) Male  clothes, female, 
children's , underclothes       
 Ministry of Industry 
and Trade of the RK - This measure is used to fulfill the RK's obligations, 
under the Agreement between the Government of the 
RK and the European Economic Community on trade 
of textile   products (ratified in Brussels on 
15 October 1993) 
7208 10 000, 7208 25 000, 
7208 26 000, 7208 27 000, 
7208 36 000, 7208 37 900, 
7208 38 900, 7208 39 900, 
7211 14 100,  7211 19 200, 
7219 11 000, 7219 12 100, 
7219 12 900, 7219 13 100, 
7219 13 900, 7219 14 100, 7219 14 900, 7225 20 200, 
7225 30 000 SA  Sheet rolled metal 
SA 1 Rolls 
 Ministry of Industry 
and Trade of the RK -   This measure is used to  fulfill the RK's obligations, 
under the Agreement between the Government of the 
RK and the European Coal and Steel Union on trade of 
certain steel products dated 15 December 1999.  
  WT/ACC/KAZ/50
 Page 139HS Number Goods Ministries responsible 
for administration of 
licence State bodies of the RK, which coordinates 
the decision about issuing of license Justification 
7208 37 100, 7208 38 100, 
7208 39 100 SA  1а Rolls, intended for 
secondary rolling process 
 Ministry of Industry 
and Trade of the RK - This measure is used to fulfil the RK's obligations, 
under the Agreement between the Government of the 
RK and the European Coal and Steel Union on trade of 
certain steel products dated 15 December 1999. 7208 40 100, 7208 51 100 7208 51 300, 7208 51 500 
7208 51 910, 7208 51 990 
7208 52 100, 7208 52 910 
7208 52 990, 7208 53 100 
7211 13 000 SA 2 Thinsheet steel         
 
7208 40 900, 7208 53 900 7208 54 100, 7208 54 900 
7208 90 100, 7209 15 000 
7209 16 100, 7209 16 900 
7209 17 100, 7209 17 900 
7209 18 100, 7209 18 910 
7209 18 990, 7209 25 000 
7209 26 100, 7209 26 900 
7209 27 100, 7209 27 900 
7209 28 100, 7209 28 900 
7209 90 100, 7210 11 100 
7210 12 110, 7210 12 190 
7210 20 100, 7210 30 100 
7210 41 100, 7210 49 100 
7210 50 100, 7210 61 100 
7210 69 100, 7210 70 310 
7210 70 390, 7210 90 310 
7210 90 330, 7210 90 380          
7211 19 900, 7211 23 100 
7211 23 510, 7211 29 200 
7211 90 110, 7212 10 100 
7212 10 910, 7211 14 900 7212 20 110, 7212 30 110 
7212 40 100, 7212 40 910 
7212 50 310, 7212 50 510 
7212 60 110, 7212 60 910 
7219 21 100, 7219 21 900 
7219 22 100, 7219 22 900 
7219 23 000, 7219 24 000 
7219 31 000, 7219 32 100 
7219 32 900, 7219 33 100 
7219 33 900, 7219 34 100 
7219 34 900, 7219 35 100 
7219 35 900, 7225 40 800 SA 3 Other sheet roll        
 
  
 WT/ACC/KAZ/50 
Page 140 ANNEX 6 
Establishing of Decreasing Coefficients of Railway Tariffs on Transportation of Different Types of Goods for the Year 2002 
Type of cargo Sulphuric acid Iron ore produc ts Coal Coal and black oil Complex ore Secondary material 
resources Metal roll 
The title of subsidy 
program or special target subsidy: Establishing of 
decreasing coefficients of railway tariffs on 
transportation of 
sulphurous acid by rail   Establishing of 
decreasing coefficients of railway tariffs on 
transportation of iron ore 
products by rail    Establishing of 
decreasing coefficients of railway tariffs on 
transportation of coal by 
rail  Establishing of 
decreasing coefficients of railway tariffs on 
transportation of coal 
and black oil by rail   Establishing of 
decreasing coefficients of railway tariffs on 
transportation of 
complex ore by rail   Establishing of 
decreasing coefficients of railway tariffs on 
transportation secondary 
material resources by rail   Establishing of 
decreasing coefficients of railway tariffs on 
transportation of  metal 
roll by rail    
Subsidy (subsidy per unit): decreasing coefficients on railway tariffs  
Amount of Subsidy, 
thousand tons  401.37 4,066.1 29,353.95 coal - 15000, black oil - 
396 320  13.04 730.69 593.86 
Amount of Subsidy, 
mln. tenge 119.79 310.57 2,038.87   2.24 133.42 520.04 
The title of subsidy 
program or special target subsidy: In order to increase 
transportation volumes, support local producers, 
stimulate increase of 
production volumes the tariffs on export 
transportation of 
sulphuric acid in tanks of  producers in all 
communications are 
reduced  by 25%.  In order to increase 
transportation volumes, support local producers, 
stimulate increase of 
production volumes the tariffs on export 
transportation of iron ore 
products in tanks of  producers in all 
communications are 
reduced  by 25%.  In order to increase coal 
transportation volume, to prevent possible 
increase of prices of 
heating and electric power consumption and 
subsequent  rise of 
prices of sector products  In order to implement 
the Agreement between the Government of RK 
and the Kyrgyz Republic 
on use of fuel-energy and water resources of 
Naryn-Syrdarya 
reservoirs in 2003 the tariffs on transportation 
of coal and black oil 
provided as compensation for 
electric power from the 
Kyrgyz Republic during vegetation period 
according to the 
Resolution of the Government of RK 
No.799 dated 
17 July 2002 In order to increase 
volumes of complex ore transportation  In order to increase 
volumes of secondary material resources 
transportation  In order to increase 
metal-roll transportation by rail and volumes of 
metal roll trans shipment 
in Aktau port  
Legal basis The Regulation of establishing a nd cancellation of decreasing coefficients of tariffs on transportation by rail to be regulated by the state (approved by the order of the Agency No.24- ОД dated 
30 December 1999 registered No.1024 in the Minist ry of Justice on 6 January the Laws of RK " Оn Natural Monopolies", " Оn Transport of RK", " Оn Railway Transport". 
Payment terms Advance payment, no 
indebtedness for 
transportation services, increase of 
transportation volumes 
in comparison with the previous year  Advance payment, no 
indebtedness for 
transportation services, increase of 
transportation volumes 
in comparison with the previous year  Advance payment, no 
indebtedness for 
transportation services, increase of 
transportation volumes 
in comparison with the previous year  In the form of 
compensation of the 
electric power from the Kyrgyz Republic 
delivered in the 
vegetation period  Advance payment, no 
indebtedness for 
transportation services and fulfilment of 
transportation volumes 
not less than the level of 2001   Advance payment, no 
indebtedness for 
transportation services and fulfilment of 
transportation volumes 
not less than the level of 2001   Advance payment, no 
indebtedness for 
transportation services and fulfilment of 
transportation volumes 
not less than the level of 2001    
  WT/ACC/KAZ/50
 Page 141Type of cargo Sulphuric acid Iron ore produc ts Coal Coal and black oil Complex ore Secondary material 
resources Metal roll 
Validity of subsidy Since 22 February 2002 
till 1 January 2003  Since 15 August 2002 
till 31 December 2002  Since 8 May 2002 till 
1 October 2002  Since 22 July 2003 till 
1 January 2003  Since 29 March 2002 till 
1 January 2003  Since 29 March 2002 till 
1 January 2003  Since 14 February 2002 
till 1 January 2003   
Statistical data allowing to evaluate 
subsidy effect on 
trade  - - - - - - - 
  
 WT/ACC/KAZ/50 
Page 142 ANNEX 7 
Establishing of Decreasing Coefficients of Railway Tariffs on Transportation of Different Types of Goods for the Year 2003 
Cargo Sulphuric acid Iron ore products Coal Coal and black oil Crude oil 
The title of subsidy 
program or special 
target subsidy: Establishing of decreasing 
coefficients to railway tariffs for 
transportation of sulphurous acid by rail  Establishing of decreasing 
coefficients to railway tariffs for 
transportation of iron ore products by rail  Establishing of decreasing 
coefficients to railway tariffs for 
transportation of coal by rail   Establishing of decreasing 
coefficients to railway tariffs for 
transportation of coal and black oil by rail  Establishing of decreasing 
coefficients to railway tariffs for 
transportation of crude oil by rail   
Subsidy (subsidy per unit): decreasing coefficients of railway 
tariffs    decreasing coefficients of railway 
tariffs    decreasing coefficients of railway 
tariffs    decreasing coefficients of railway 
tariffs    decreasing coefficients of railway 
tariffs    
Amount of Subsidy, thousand tons  568.61 10,257.17 20,840.14 coal - 252,.7 36.3 
Amount of Subsidy, mln 
tenge 164.26 399.13 900.28   5,7.68 
Objectives and asks of 
subsidy  In order to increase transportation 
volumes, support local producers, stimulate increase of production 
volumes the tariffs on export 
transportation of sulphuric acid in tanks of producers in all 
communications are reduced  by 
25%.  In order to increase transportation 
volumes, support local producers, stimulate increase of production 
volumes the tariffs on export 
transportation of iron ore products in tanks of producers in all 
communications are reduced  by 
15%.  In order to increase coal 
transportation volume, to prevent possible increase of prices of 
heating and electric power 
consumption and subsequent  rise of prices of sector products  In order to implement the 
Agreement between the Government of RK and the Kyrgyz 
Republic on use of fuel-energy and 
water resources of Naryn-Syrdarya reservoirs in 2003 the tariffs on 
transportation of coal and black oil 
provided as compensation for electric power from the Kyrgyz 
Republic during vegetation period 
according to the Resolution of the Government of RK No.799 dated 
17 July 2002     The Regulation on establishing and 
cancellation of decreasing coefficients of tariffs on railway 
transportation regulated by the 
state No.24- ОД (approved by the 
Order of the Agency dated 
30 December 1999, registered 
No. 102 in the Ministry of justice on 6 January 2000  
Legal basis The Regulation on establishing and cancellation of decreasing coefficients  of tariffs on railway transportation to be regulated by the state  №24-ОД (approved by the Order of the Agency 
dated December 30, 1999, registered No.102 in  the Ministry of Justice on January 6, 2000 
Payment terms Advance pa yment, no indebtedness 
for transportation services, increase 
of transportation volumes in comparison with the previous year  Advance payment, no indebtedness 
for transportation services, increase 
of transportation volumes in comparison with the previous year  Advance payment, no indebtedness 
for transportation services, increase 
of transportation volumes in comparison with the previous year  In the form of compensation of the 
electric power from the Kyrgyz 
Republic delivered in the vegetation period  Advance payment, no indebtedness 
for transportation services and 
fulfilment of transportation volumes not less than the level of 
2001   
Validity of subsidy since 21 January 2003 till 
31 December 2003  since 24 January 2003 till 
31 December 2003 since April 1 till 1 October 2003  since 17 August 2003 till 
31 December 2003 Since 29 March 2002 till 
1 January 2003 
Statistical data allowing to evaluate subsidy 
effect on trade  - - - - - 
  
  WT/ACC/KAZ/50
 Page 143ANNEX 8 
Electric Power Delivery by KEGOC 
Services   "AES Ekibastus" LLP  "Ekibastuzskaya station" OJSC  " Каzenergoresurs" LLP 
The title of subsidy 
program or special 
target subsidy: Electric power delivery by "KEGOC" OJSC, "AES 
Ekibastuz" LLP networks Electric power delivery by "KEGOC" OJSC, "Ekibastuzskaya 
station" OJSC Electric power delivery by "KEGOC" OJSC,  
"Каzenergoresurs" LLP 
Subsidy (subsidy per 
unit): 90% discount  According to the Orders: 84%, 88%, 84%. According to the Orders: 80%,65%, 65% 
Amount of Subsidy, 
mln. Kwatt/hour 575.4 3,482.2 932.8 
Amount of Subsidy, mln 
tenge 229.1 1,753.9 438.6 
Objectives of subsidy  In order to regulate arbitrage investigation with AES 
corporation and to execute the Memorandum of 
understanding between the government of the Republic of Kazakhstan and AES Corporati on "On Regulation of Dispute 
with AES Corporation"  Increase of electric power consumption in comparison to the 
period of the previous year  Increase of electric power consumption in comparison to the 
period of the previous year  
Legal basis  Joint order of the Agency of the Republic of Kazakhstan on 
Natural Monopoly Regulation, Competition Protection And 
Assisting Small Business (dated 15 March 2000, No. 27- ОД) 
and the Ministry of Energy and Mineral Resources (dated 15 
March 2000, No.101) The order of the Agency of the Republic of Kazakhstan on 
Natural Monopoly Regulation, Competition Protection And 
Assisting Small Business No. 263 – ОД dated 29 December 
2002, the order of the Agency No.166- ОД dated 
30 June 2003, the order of the Agency No.186 dated 27 July 
2003 . The order of the Agency of the Republic of Kazakhstan on 
Natural Monopoly Regulation, Competition Protection And 
Assisting Small Business No. 89- ОД dated 26 March 2003, 
the Order of the Agency No.166- ОД dated 13 August 2003, 
the Order of the Agency No.235- ОД dated September 16, 
2003  
Payment terms 100% current payment 100% current payment 100% current payment 
Validity of subsidy  Since Ap ril 7, 2000 till April 7, 2015 According to th e Orders: since January 1, 2003 till June 30, 
2003, since July 1, 2003 till July 31, 2003, since July 31 till 
December 31, 2003  According to the Orders:  since 1 April 2003 till 
30 September 2003, since 13 August 2003 till 
30 September 2003, since 16 September 2003 till 31 December 2003. 
Statistic data allowing to evaluate effect of 
subsidy on trade  - - - 
 
 __________ 
 