RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/KGZ/26
31 July 1998
(98-3036)
Working Party on the Accession
of the Kyrgyz RepublicOriginal:  English
REPORT OF THE WORKING PARTY
ON THE ACCESSION OF THE KYRGYZ REPUBLIC1
I. INTRODUCTION
1. On 13 February 1996, the Government of the Kyrgyz Republic requested accession to the
World  Trade Organization (WTO).  At its meetin g on 16 April 1996 the General Council established a
Working Party to examine the application of the Go vernment of the Kyrgyz Republic to accede to the
WTO Agreement under Article XII, and to submit to the General Council recommendations which
could include a draft Protocol of Accession.  Memb ership of the Working Party was open to all WTO
Members.  The terms of reference and the memb ership of the Working Party were reproduced in
document WT/ACC/KGZ/2/Rev.2.
2. The Working Party met on 10 and 11 March, and 18 July 1997, 5 February, 6 May, 23 June and
17 July 1998 under  the Chairmanship of Mr. J.- M. Metzger (France).
II. DOCUMENTATION
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the
Foreign Trade Regime of the Kyrgyz Republic (WT/ACC/KGZ/3) and the questions submitted byMembers of the Working Party on the foreign trade re gime of the Kyrgyz Republic, together with the
replies thereto (WT/ACC/KGZ/5 and A ddendum 2, WT/ACC/KGZ/7, WT/ACC/KGZ/9,
WT/ACC/KGZ/10 and Addendum 1, WT/ACC/KG Z/13, WT/ACC/KGZ/15 and WT/ACC/KGZ/16)
and other information provided by the Kyrgyz Republic authorities.  The Government of the
Kyrgyz Republic  made available to the Working Party the following documentation:
- The Constitution of the Kyrgyz Republic
Laws and Resolutions
- The Civil Code of the Kyrgyz Republic,
- Bankruptcy Law in force since 19 Apri l 1994 Law on Bankruptcy of 15 October 1997
- Law No. 1057-XII of 12 December 1992 On  Banks and Banking (with amendments
No. 1394-XII of 12 January 1994)
- Law No. 1357-XII of 10 January 1994 On the Principles of the Budget
- Law No. 6 of 2 April 1996 On Cer tification of Goods and Services
- Resolution of the Government of the Ky rgyz Republic No. 520 of 2 December 1995 On
Adoption of the Regulation on the Procedure of Control of the Goods Imported to the Kyrgyz
Republic
- Resolution of the Government No. 260 of 28 April 1994 On Adoption of the List of Goods
(Works and Services), Produced On the Territory of the Kyrgyz Republic and Imported to its
Territory, Which are Subject to Certification On the Indicators of Safety
                                                     
1 The Working Party adopted the Report on an ad referendum basis.WT/ACC/KGZ/26
Page 2
- Law No. 915-XII of 29 June 1992 On Commodity Exchange and Exchange Trade in the
Kyrgyz Republic
- Law On Pledge of 6 March 1992
- Law No. 768-XII of 28 February 1992 On Prot ection of Consumer Rights of 10 December
1997(as amended by the Law of the Kyrgyz  Republic No. 1426-XII of 14 January 1994)
- Law of 6 March 1992 On Concessions and Foreign Concession Enterprises
- Law of 7 February 1992 On Customs Code of 30 July 1997
- Law  On implementation of the Custom Code
- Resolution of the Supreme Soviet of the Ky rgyz Republic No 769-XII of 28 February 1992 -
 On Implementing the Law On Consumers Rights Protection
- Law No. 683-XII of 20 December 1991 On Ge neral Principles of Denationalization,
Privatization and Undertakings in Kyrgyz Republic  (to be extended and specified by Laws as of
6 March 1992 No. 876-XII;  2 July 1992 No. 939-XII; 8 May No. 1229-XII;  12 January 1994No. 1382-XII;  16 April 1994 No. 1501-XII;  23 June 1995 No. 5-I;  28 September and
11 October 1995 No. 30-I; Resolution of Par liament of 12 January 1994 No. 1386-XII).
- Resolution of Supreme Soviet of the Kyrgyz  Republic No. 684-XII of 20 December 1991On the
Procedure of Putting into Force of the Law of  the Republic of Kyrgyzstan About the General
Principles of Denationalization, Privatiza tion and Undertakings - Law No. 1385-XII of
12 January 1994 On Denationalization and Priva tization of State Ownership in the Kyrgyz
Republic
- Decree of the Jogorku Kenesh of the Kyrgyz Republic No 1386-XII of 12 January 1994 On the
Procedure for the Introduction into Operati on of the Law of the Kyrgyz Republic On
Denationalization and Privatisation of State Ownership in the Kyrgyz Republic
- Law No. Y16-XII of 17 April 1991 On Protection of the Environment
- Law No. 6-1 of 5 July 1995 On Operations in Foreign Currency
- Law No. 1076 of 16 December 1992 On Free Economic Zones in the Kyrgyz Republic (as
amended by the Law of the Kyrgyz Republic No. 2 of 15 March 1996)
- Resolution of the Supreme Soviet of the Ky rgyz Republic No. 1077-XII of 16 December 1992
On implementation of the Law of the Kyrg yz Republic On FEZ in the Kyrgyz Republic
- Law No. 536-XII of 28 June 1991 On Foreign Investments in the Kyrgyz Republic (as amended
by the Law of the Kyrgyz Republic No. 1221-XII of 7 May 1993 and No. 20-1 of
26 September 1995)
- Resolution of the Supreme Soviet of the Kyrgyz Republic No. 537-XII of 28 June 1991 On
Order of Implementing the Law of the Kyrgyz Republic On Foreign Investments in the Kyrgyz
Republic
- Law of 18 April 1991 On Common Prin ciples of Foreign Economic Activity
- Law No. 943-XII of 2 July 1992 On People's H ealth Protection (as amended by Law of the
Kyrgyz Republic No. 1091-XII of 18 December 1992)
- Resolution Of the Supreme Soviet of the Kyrgyz Republic No 944-XII Regulations for
Enforcement of the Law of the Kyrgyz Republic  On People's Health Protection in the Kyrgyz
Republic
- Law No. 670-XII of 18 December 1991 On Insurance
- Resolution of the Supreme Soviet of th e Republic of Kyrgyzstan No. 671-XII of
18 December 1991 On implementation of the Law of  the Republic of Kyrgyzstan On Insurance
- Law No. 1548-XII of 27 May 1994 On Making, Ratifying, Implementing and Denouncing
International Agreements of the Kyrgyz Republic
- Resolution No. 1549-XII of 27 May 1994 On br inging into force the Law of the Kyrgyz
Republic On making, ratifying, implementing and denouncing the International Agreements of
the Kyrgyz Republic
- Law No. 1478-XII of 14 April 1994 On the Local Taxes and Fees- Resolution of the Parliament of the Ky rgyz Republic of the 14 April 1994 On the
implementation procedure of the Law of the Ky rgyz Republic On local taxes and fees (No.
1479-XII)WT/ACC/KGZ/26
Page 3
- Law No. 7 of 2 April 1996 On Providing Unity of Measurements
- Law of the Kyrgyz Republic (enforced by Re solution of the Supreme Soviet No. 949-XII) of
3 July 1992 On Medical Insurance of the Citizens of the Kyrgyz Republic (as amended by the
Law of the Kyrgyz Republic No. 27-I of 28 July and 26 September 1995)
- Law of 15 December 1992 On Mineral Resources
- Resolution of the Kyrgyz Republic Supreme Soviet of 15 December 1992 On the Manner of
Implementation of the Kyrgyz Republic Law On Mineral Resources (No. 1067-XII)
- Draft Law of the Kyrgyz Republic On the Limitation of Monopolistic Activities and the
Development and Protection of Competition of 15 April 1994
- Law On the National Bank
- Law No. 1481-XII of 14 April 1994 On Non-Tax Payments
- Law No. 34 of 1 July 1996 On Normative Legal Acts of the Kyrgyz Republic
- Law of the Kyrgyz Republic (enforced by Re solution of the Supreme Soviet No. 946-XII) of
2 July 1992 On Sanitary-Epidemic Welfare of the Kyrgyz Republic's Population
- Law of the Kyrgyz Republic On Securities and Stock Exchanges of 21 December 1991
- Law of the Kyrgyz Republic of 2 April 1996 On Standardization
- Law No. 1072-XII (enforced by Resolution of the Supreme Soviet of the Kyrgyz Republic
No. 1073-XII of 16 December 1992) of 16 December 1992 On the State Fee
- Law No. 874-XII of 6 March 1992 On the State Tax Service
- Law No. 1553-XII of 28 May 1994 On the Basic Principles of the Treasury of the Kyrgyz
Republic
- Law No. 660-XII of 17 December 1991 On Taxes from Companies, Associations and
Organizations (as amended by Laws:  No. 872-XII of 6 March 1992, No. 925-XII of
30 June 1992, No. 1088-XII of 17 December 1992, No. 1237-XII of 8 May 1993, No. 1416-XII
of 13 January 1994, No. 1525-XII of 25 May 1994, No. 25-I of 27 July and 26 September 1995
and No. 24 of 26 June 1996)
- Law of the Kyrgyz Republic On Taxes from Population of 27 December 1991
- Law No. 1472-XII of 14 April 1 994 On Principles of Taxation System in the Kyrgyz Republic
- Law on Procurement of Goods, Wo rks and Services of 13 May 1997
- Law on Subsurface Resources of 2 July 1997
- Law on State Regulations of Foreign Economic Activities of 2 July 1997
- Law on Banks and Banking Activities of 29 July 1997
- Law on National Bank of 29 July 1997- Amendments to the Customs Tariff Law of 30 July 1997
- Law on Foreign Investment of 24 September 1997
- Civil Code Part II (section on intellectual property) of 5 January 1998
- Criminal Code (section on intellectual property) of 1 January 1998
- Law on Copyrights and Neighbour ing Rights of 14 January 1998
- Law on Trademarks, Servicemarks and Appella tion of Places of Origin of 14 January 1998
- Patent Law of 14 January 1998- Amendments to Part I of the Civil Code of 15 October 1997
- Law on Integrated Circuits Topology of 30 March 1998
- Law on Commercial Secrets of 30 March 1998
- Law on Legal Protection of Software for Computers and Databases of 31 March 1998
Presidential Decrees
- Presidential Decree No. 134 of 5 May 1993 On Regulating Currency Transactions
- Presidential Decree of 9 June  6 September 1994 On Additional Guarantees for Foreign
Investors in the Kyrgyz Republic
- Presidential Decree No. 246 of 27 July 1992 On  the State Commission of the Kyrgyz Republic
for Foreign Investments and Economic Assistance
- Presidential Decree No. 270 of 9 September 1992 On Measures for Organization of Expert
Examinations of Foreign InvestmentsWT/ACC/KGZ/26
Page 4
- Presidential Decree No. 280 of 23 September 1992 On Changing the Procedure for Licensing
Raw Materials, Consumer G oods and Products of Producti onal and Technical Purpose
- Presidential Decree No. 35 of 9 February 1993 On  Changes in the State Regulation of Foreign
Economic Activities in the Kyrgyz Republic (as amended by Presidential Decrees No. 219 of
30 July 1993, No. 5 of 12 January 1994, No. 32 of 23 March 1994 and No. 36 of
9 February 1995)
- Presidential Decree No. 121 of 2 April 1992 On Regulation of Foreign Economic Activity in the
Kyrgyz Republic
- Presidential Decree No. 140 of 11 April 1 996 On Measures to Improve Coordination of
Privatization with Attraction of Foreign Investment to the Kyrgyz Republic
- Presidential Decree No. VII-165 of 13 May 1996 On Additional Measures on Introduction of
State Monopoly to the Producti on, Storage, Sale of Alc ohol and Alcoholic Products
- Presidential Decree No. 207 of 19 June 1992 On  Licensing Certain Ki nds of Businesses (as
amended by Presidential Decrees:  No. 302 of  27 October 1992, No. 106 of 6 April 1993, No. 6
of 12 January 1994, No. 22 of 22 February 1994, No. 74 of 7 May 1994, No. 148 of
4 July 1994, No. 177 of 15 July 1994, No. 235 of 7 September 1994, No. 254 of
6 October 1994, No. 36 of 9 February 1995, No. 70  of 11 March 1995, No. 177 of 17 July 1995,
No. 322 of 25 November 1995)
- Presidential Decree No. 234 of 9 June 1994 On Additional Guarantees for Foreign Investors in
the Kyrgyz Republic
- Presidential Decree No. VII-301 of 12 Novemb er 1994 On the Arrangements for Increasing
Control Over the Market of Securities of the Kyrgyz Republic
- Presidential Decree No. 319 of 9 December 1994 On the Bishkek Foreign Investments
Attraction Zone
- Presidential Decree No. 34 On Some Measures  for Protection and Development of Private
Entrepreneurship of 25 March 1994
- Presidential Decree No. 42 of 27 February  1995 On Improving Taxation in Agriculture
- Presidential Decree No. 45 of 4 March 1996 On  the Structure and Composition of the Cabinet
of Ministers of the Republic
Resolutions
- Resolution of the Cabinet of Ministers No. 373 of 25 August 1995 On Strengthening
Responsibility for Unauthorized Purchase, Sale  of Scrap and Fragments of Non-Ferrous and
Ferrous Metals and Their Industrial Scrap (as amended by Resolution of the Cabinet ofMinisters No. 268 of 17 June 1996)
- Resolution of the Cabinet of Ministers N o. 383 of 12 September 1995 On the Programme of
State Investments for 1996-1998
- Resolution of the Government No. 408 of 13 June  1994 On the Establishment of Provisions on
the Procedure of Export and Import Li censing Goods in the Kyrgyz Republic
- Resolution of the Cabinet of Ministers No. 440 of 23 October 1995 On Approving the
Regulations on the Procedure for Delivery of Goods and Rendering Services within the
Framework of Productional Cooperation of Enterp rises and Branches of the Kyrgyz Republic
and Other States - the CIS Participants
- Resolution of the Government No. 484 of 14 November 1995 On Creation of the Consulting
Agency on International Procurement Under the General Directorate of the State Commission
for Foreign Investments and Economic aid of the Kyrgyz Republic
- Resolution of the Cabinet of Ministers No. 49 of 1 February 1996 On the Draft Law of the
Kyrgyz Republic On the Customs Tariff of the Kyrgyz Republic
- Resolution of the Cabinet of Ministers No. 52 of 2 February 1996 On Measures of
Extraordinary Financial Support of Agriculture
- Resolution of the Government No. 520 of 2 D ecember 1996 On Adoption of the Regulation on
the Procedure of Control of the Goods Imported to the Kyrgyz RepublicWT/ACC/KGZ/26
Page 5
- Resolution of the Government No. 523 of 18 July  1994 On the Rates of the Author's Award for
Public Performance and Other Kinds of Usag e the Productions of Literature and Arts
- Resolution of the Government No. 56 of 6 Febr uary 1996 On the Procedure for the Export and
Import of Commodities (Goods and Services) in the Kyrgyz Republic
- Resolution of the Government No. 57 of 5 Fe bruary 1993 On Procedures of Transfer of
Articles, Property, Currency, Auto-motor Vehi cles and Other Valuables Through the Customs
Border of the Kyrgyz Republic
- Resolution of the Government No. 57 of 6 Fe bruary 1996 On Confir mation of the List of
Country-Users of the Preference Scheme in the Kyrgyz Republic
- Resolution of the Cabinet of Ministers No. 571 of 27 December 1995 On Introduction of
Applying Excise Marks on Production, Importa tion and Sale of Tobacco Products and
Alcoholic Beverages in the Kyrgyz Republic
- Resolution of the Cabinet of Ministers N o. 613 of 30 December 1993 On Temporary Customs
Tariff (as amended by Resolutions of the Cabine t of Ministers No. 26 of 21 January 1994 and
No. 358 of 28 May 1994)
- Resolution of the Government No. 622 of 18 August 1992 On Customs Regime of Processing
of Tolling Raw Materials and Goods Within the Customs Territory of the Kyrgyz Republic
- Resolution of the Government No. 119 of 20 March 1996 On Adoption of Regulations on
Equipping Transport Vehicles (Containers) for Carriage of Goods with Customs Stamps and
Seals
- Resolution of the Government No. 725 of 23 September 1994 On Regulations on the State
Inspection for Standardization and Metrology at the Government of the Kyrgyz Republic
- Government Decree No. 82 of 28 February 1 996 On Programme of Denationalization and
Privatization of State Property in the Kyrgyz Republic for 1996-1997
- Resolution of the Government No. 9 of 8 Ja nuary 1996 On Approval of the Resolution on
Procedures of Use of the Excise Marks in  the Kyrgyz Republic on Production, Import and
Realization of Tobacco Goods and Alcoholic Drinks
- Resolution of the Government No. 901 of 30 December 1994 On Regulating the Import of
Goods, Things and Other Objects by Ph ysical Persons in the Kyrgyz Republic
- Resolution of the Government No. 97 of 22 March 1995 On Main Directions of Foreign
Economic Activity of the Kyrgyz Republic
- Resolution of the Government No. 10 of 9 January 1996 On Temporary Regulation On
Applying Excise Seals On Oil Produc ts Imported to the Kyrgyz Republic
- Resolution of the Government No. 109 of 30 March 1992 On Ratification of Resolutions on
Procedures for Registration of Securities, on Proc edures of Licensing the Right for Professional
Stock Market Activities, on Procedures for Collecting Securities Registration Fees, Licensing
and Certifying the Right for Implementation of Professional Stock Market Activities and for
Collecting Other Fees, on Procedures for Maintain ing the General State Registry of Joint Stock
Companies, Recording and Accountability in Joint Stock Companies
- Resolution of the Supreme Soviet of the Ky rgyz Republic No. 1126-XII of 18 December 1992
On Introduction of State Licen sing in Construction Activity in the Kyrgyz Republic
- Resolution of the Government No. 29 of 24 Ja nuary 1994 On Creation of the State Regulation
of Production, Storage and Distri bution of Ethyl Spiritus a nd Establishing Control over
Production and Sale of Strong Drinks in the Kyrgyz Republic
- Resolution of the Government No. 120 of 14 Ma rch 1994 On the Results of the Reconstruction
and Privatization in 1991-1993 and on the Programme of the Reconstruction and Privatization
of State Property in the Kyrgyz Republic in 1994-1995
- Presidential Decree No. 121 of 2 April 1992 On Regulation of Foreign Economic Activity in the
Kyrgyz Republic
- Resolution of the Supreme Soviet No. 1220-XI I of 7 May 1993 On Karakol, Alai, Chon-Alai
and Kara-Kuldji Free Economic Zones
- Resolution of the Cabinet of Mi nisters No. 135 of 27 March 1996 On  Clarification of the List of
Subjects-Monopolists for 1996WT/ACC/KGZ/26
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- Resolution of the Government No. 146 of 5 April 1996 On Supplement of the List of the
Productions (Works, Services) Produced in the Kyrgyz Republic and Imported to its Territory
Be Subject to Obligatory Certification of th e Index Safety, Stipulated to Introduce on the
III Stage, Approved by the Resolution of th e Government of the Kyrgyz Republic No. 260 of
28 April 1994
- Resolution of the Legislative Assembly of Jo gorku Kenesh  of the Kyrgyz Republic No. 151-1
of 23 June 1995 On Creation of Free  Economic Zones of Bishkek City
- Resolution of the Cabinet of Ministers N o. 559 of 21 December 1995 On the Development
Programme for Export of the Kyrgyz Re public for 1996 and Middle-Term Prospects
- Resolution of the Cabinet of Ministers No. 167 of 16 May 1995 On the Work of the Ministry of
Communication on Carrying Out First Project of  Telecommunication in the Republic Financed
by the World Bank/MAR and European Ba nk of Reconstruction and Development
- Resolution of the Government No. 209 of 10 May 1996 On the Concept of Development of
Free and Private Market for Grain in the Kyrgyz Republic
- Resolution of the Cabinet of Ministers No. 242 of 2 June 1993 On Approving the Regulation on
the Procedure of Licensing Attracti on (Hiring) of Manpower from Abroad
- Resolution of the Government No. 260 of 28 April 1994 On Approval of the Products' List
(Works, Services) Produced in the Territory of the Kyrgyz Republic and Imported to itsTerritory, Being Subject for Compulsory  Certification on Safety Indications
- Resolution of the Cabinet of Ministers No. 270 of 7 July 1995 On Approving the Procedure for
Calculation and Collection of Excise Tax on Produced and Imported Al cohol and Liquor-Vodka
Products
- Resolution of the Cabinet of Minister s No. 290 of 7 May July 1993 On Creation of
Customs-Tariff Council Under the Cabinet of Ministers
- Resolution of the Government No. 298 of 21 July 1995 On Implementation of the State
Regulation of Production, Storag e and Distribution of Ethyl Spiritus and Strong Drinks
- Resolution of the Government No. 3 of 5 Ja nuary 1996 Regulations On the Procedures of
Imposition of Penalties and Economic Sanctions for Violations of the Anti-MonopolisticLegislation, Pricing Discipline a nd Consumers' Rights Protection
- Resolution of the Cabinet of Ministers No. 300 of 1 July 1996 On Stat e Customs Inspectorate
Under the Cabinet of Ministers
- Resolution of the Cabinet of Ministers No. 327 of 17 July 1996 On the Course of Implementing
Regulations of the Parliament and the Cabinet of  Ministers On Issues of Introduction of State
Monopoly in the Sphere of Pr oduction, Storage and Sale of Alcohol and Alcoholic Products
Instructions and Regulations
- Instruction On Customs Procedures for Transit Cargo (approved by Order No. 145 of the State
Customs Inspection on 23 August 1993)
- Instruction of the Order to Fill the Carg o Customs Declaration (approved by Decree
No. 05-06/13 of the State Custom s Inspection  on 24 January 1996)
- Instruction On Application of Pe rsonal Examination  (approved by  Order No. 176-1 of the State
Customs Inspection on 17 September 1993)
- Order No. 45 of 14 February 1994 On the Proce dure for Licensing Entrepreneurship Activity of
Paid (i.e. for pay) Medical, Pharmaceutical and Educational Institutions and Persons Engaged in
Private Medical, Pharmaceutical  Practice and Paid Training
- Instruction No. 99-p of 19 March 1993 to appr ove "Statute on the Order of Design, Expert
Examination and Adoption of Inve stment Projects for the Construction Sector in the Territory
of the Kyrgyz Republic"
- Regulations for Opening Commercial Banks in the Kyrgyz Republic (approved by the Board of
the National Bank of the Kyrgyz Republic N o. 1/8 of 23 July 1994 with amendments and
additions No. 16/4 of 30 June 1995WT/ACC/KGZ/26
Page 7
- Order No. 05-06/12 of 24 January 1996 On Approv al of the Regulation on Procedure of Control
Over the Goods Exported from the Territory of the Customs Union (State Customs Inspectorate
Under the Government of the Kyrgyz Republic)
- Temporary Regulations On Drawing, Submitting and Considering Applications On Official
Registration of Software, Databases and Topog raphies (Main Department of Intellectual
Property of the Ministry of Educa tion and Science of 29 August 1995)
- Document Regulations On Activities of the Branches Representative Offices of Foreign Banks
in the Kyrgyz Republic of 30 June 1994
- Regulation On State Licensing of Constr uction Activities in the Kyrgyz Republic (with
amendments by Decree of the Gosstroi of th e Kyrgyz Republic No. 16 of 30 March 1994 and
No. 30 of 28 September 1995)
- Temporary Provisions on Industrial Property of the Kyrgyz Republic (adopted by Decree of the
State Committee on Science and New T echnologies No. 3 of 2 August 1993)
- Temporary Provisions On Work Inventions, Utility Models and Industrial Designs
- Order of Receiving Payments for Licence Extradition
- Regulations On the Procedures of Impositi on of Penalties and Economic Sanctions for
Violations of the Anti-Monopolistic Legislati on, Pricing Discipline and Consumers' Rights
Protection (passed by Resolution of th e Government No. 3 of 5 January 1996)
- Temporary Provisions On Selec tion Achievements of 24 July 1995
- Regulations on the State Inspection for Standa rdization and Metrology At the Government of
the Kyrgyz Republic (passed by Resolution of  the Government No. 725 of 23 September 1994)
- Temporary Regulations On the St ate Fund of Industrial Property (approved by the Ministry of
Education and Science on 24 July 1995)
- Regulation On Department of Patent Agency for Trademark and Industrial Model Examination
- Regulation on Equipping Transport Vehicles (C ontainers) for Carriage of Goods With Customs
Stamps and Seals (approved by the Resoluti on of the Government of the Kyrgyz Republic
No. 119 of 20 March 1996)
Draft laws and regulations
- Draft Law on Anti-Dumping
- Draft Law on Subsidies and Countervailing Measures
- Draft Law on Safeguards
- Draft Law On Selection Achievements
- Draft Amendments to the Law On Certification- Draft Amendments to the Law On Standardization
- Draft Amendments to the Law On Plant Quarantine
- Draft Amendments to the Law On Veterinary
- Draft Amendments to the Customs Code
- Draft Amendments to the Tax Code
- Draft Regulations On Import/Export Licensing
- Draft Regulations on Amendments to Certain Decisions of the Government
- Draft Amendments on Introducing Changes and Amendments to some Legislative Acts of the
Kyrgyz Republic (amendments to the Law on No rmative Acts and the Law on Publication of
Laws)
III. ECONOMIC POLICIES
- Foreign exchange and payments system
4. In response to requests for information, the representative of the Kyrgyz Republic informed
members of the Working Party that a highly pro-active monetary policy was being pursued by the
National Bank of the Kyrgyz Republic (NBKR) to stab ilize the foreign exchange value of the Som.  The
Kyrgyz Republic did not maintain any exchange restri ctions on current account or capital transactions.WT/ACC/KGZ/26
Page 8
Individuals and legal entities could import and export foreign currency without limitations provided they
declared the amount to the customs.
5. The representative of the Kyrgyz Republic added that the Kyrgyz Republic had joined the IMF
on 8 May 1992.  The Kyrgyz Republic accepted the obligations of Article VIII of the IMF Articles of
Agreement in March 1995 and maintained a fully convertible currency.  The Kyrgyz Republic's quota
was Special Drawing Rights (SDR) 64.5 million (about  US$96 million) and its outstanding use of IMF
credit currently totalled SDR 83.6 million (about US$120 million).   He further noted that on
11 December 1995, the International Monetary Fund (I MF) had approved a first Enhanced Structural
Adjustment Facility (ESAF) loan in the amount of  SDR 88.15 million.
- Investment regime
6. Some members of the Working Party enquired whether there were any restrictions to the
national treatment principle in relation to investment s by foreign persons in the Kyrgyz Republic.  The
representative of the Kyrgyz Republic stated that the new Law on Foreign Investment of16 September 1997 provided guarantees of national treat ment, equitable and fair treatment, and full and
constant protection for foreign investors.  Excep tions from national treatment, according to the same
law, were restrictions connected with defence and th e protection of national security, the health of the
population, and public moral.  At this point, no such  restrictions had been introduced.  The Law on
Denationalization and Privatization of State Pr operty of 12 January 1994 provided the Cabinet of
Ministers with the authority to restrict or otherw ise limit foreign investors from participating in the
privatization of certain industries;  the Cabinet of Ministers had not yet exercised this authority, although
foreign investors could purchase residential real property only with the permission of the Cabinet of
Ministers.  Foreign citizens and legal persons c ould rent immovable property on the same basis as
Kyrgyz citizens and legal persons.   The Kyrgyz Republic would not use such authority in a manner thatwas inconsistent with its obligations as a future member of the WTO.  Foreign investors could freely
repatriate investments made or profits earned in th e Kyrgyz Republic in a freely convertible currency.
7. Some members of the Working Party asked whether foreign investors were protected against
expropriation or nationalisation of their assets.  In response, the representative of the Kyrgyz Republic
stated that Article 5 of the new Law on Foreign Investment of September 1997 guaranteed foreign
investments from expropriation (nationalization, requis ition or any other equivalent measure), except in
cases when such expropriation is carried out for an overriding public purpose, on a non-discriminatory
basis.  In the event of expropriation of a foreig n investment, the Law on Foreign Investment requires
that a foreign investor be paid prompt, adequate and effective compensation.  Such compensation is
freely transferable and payable in a freely useable  currency.  Rights established under the Law on
Foreign Investment are enforceable against the go vernmental bodies with any applicable procedure
agreed upon between the foreign investor and the authorized governmental bodies of the Kyrgyz
Republic.  When such agreement is absent an inve stment dispute between the authorized governmental
bodies of the Kyrgyz Republic and a foreign investor  shall be settled through arbitration in accordance
with one of the following procedures:
- Regulations of the Arbitration Court under th e Chamber of Industry and Commerce of the
Kyrgyz Republic;
- Convention for the Settlement of Investment Di sputes between States and Citizens of any
other States, ("Convention ICSID" sign ed in Washington DC on 19 March 1965) if
applicable;
- Arbitration (Auxiliary) Regulations of the Inte rnational Centre for the Settlement of the
Investment Disputes (ICSID), if applicable;  andWT/ACC/KGZ/26
Page 9
- Arbitration Regulations of the United Nations Commission on International Trade Law
(UNCITRAL Regulations);  in this case the appointing body shall be the General Secretary
of the ICSID.
8. In response to questions concerning the ow nership of land by foreign investors, the
representative of the Kyrgyz Republic noted that th e Constitution of the Kyrgyz Republic prohibited the
private ownership of land by private persons or legal entities, either foreign or local.  There were no
plans to eliminate that restriction.  Foreign c itizens and legal entities could purchase residential
immovable property attached to land - such as apar tments and houses - only with the specific permission
of the Cabinet of Ministers.  Foreign citizens and legal entities could rent immovable property on the
same basis as Kyrgyz citizens and legal entities.
- State ownership and privatization
9. The representative of the Kyrgyz Republic stat ed that the Government’s privatization plans
were organized according to industrial and sectoral prio rities.  In the electric energy sector, the plan was
to attract foreign investment for the development of hydroelectric power engineering, to privatize
sectoral  enterprises and to modernize and reconstruc t electric grid networks.  In the coal industry, the
plan was to restructure the sector and sector en terprises by reorganizing and, where  necessary,
liquidating sector enterprises, to develop coal ope n-pit mining with the aim of decreasing production
costs and to promote energy saving technologies.  In the oil and gas sector, the plan was to construct and
bring into operation two small oil refineries in the next two years and to develop a package of
documents for conducting an international tender intended for the purpose of attracting foreign
investment into the exploration and exploitation of oil and gas deposits, to conduct the tender.  In the
gold extracting industry, the plan was to attract fore ign investment into the exploration and exploitation
of gold deposits.  Non-ferrous metallurgy (mercury , antimony, tin, tungsten) would be reformed to
attract foreign investment into the developmen t of the antimony and mercury metallurgy industry.
10. The representative of the Kyrgyz Republic furthe r added that in the machine building and metal
processing sector, the Government planned to re organize the production of machines, equipment (and
the parts thereof) for (i) processing agricultural products, (ii) mechanizing small peasant and family
farms and (iii) use in the  coal mining industry.  The Government also planned to reform theelectrotechnical sector to orient enterprises toward  the production of complex electrical appliances and
equipment for the electric energy industry.  Light i ndustry would be reformed to speed up the structural
transformation of the sector and to find new market s both within and outside the CIS.  More modern
equipment would be purchased with the aid of Ge rman and  Japanese loans.  Food production and
processing industries would be reformed to establish small and medium-sized on-siteproduction/processing facilities for milk, meat, fruit and vegetable production and processing.  The
pharmaceuticals sector would be reformed to attract foreign investment into the domestic
pharmaceutical industry generally and to complete the construction of "bishkekbiofarm", a chemical
pharmaceutical plant.  The agriculture sector would be  reformed to attract fo reign investment for the
purpose of developing export-oriented agricultural enterp rises; and to create joint ventures with foreign
investors for the production of agricultural products.   The construction sector would be reformed to
attract foreign investment into the housing construc tion industry and to encourage the manufacturing of
energy-saving construction materials.
11. In response to requests for information concerning  restrictions on foreign investors participation
in privatisation, the representative of the Kyr gyz Republic stated that Article 8 of the Law on
Denationalization of State Property of 12 January 1994, provided that during the privatization of State
owned assets, the Cabinet of Ministers could "reduc e the number of purchasers to guarantee the priority
rights of citizens and legal entities of the Kyrgyz Republic."  He noted, however , that this power had not
yet been exercised.WT/ACC/KGZ/26
Page 10
12. The representative of the Kyrgyz Republic stated that the status of privatization in the Kyrgyz
Republic was provided in Tables 1 and 2 below.  As of 1 January 1998, approximately 64 per cent of
State-owned objects (base is 1 January  1991) had b een privatized. The total value of privatized State
objects since 1991 was som 13,418,900 million.  The value of remaining State assets was 10.872 billion
som.  The mass privatization program was completed on 30 June 1997.  The shares of 1,056 Joint-Stock
Companies were sold using coupon auctions.  A ccording to Article 4 of the Kyrgyz Republic
Constitution of 5 May 1993, land, minerals, water, air space, forests, plant and animal life and all other
natural resources were the exclusive property of th e State.  According to Article 3 of the Law on
Privatization and Denationalization of 12 January 1994, objects in exclusive ownership of the Kyrgyz
Republic could not be subject to privatization.  The le ase of such property was, however, possible.   The
Law on Privatization and Denationalization also authorized the Cabinet of Ministers to specify
additional objects not subject to denationalization a nd privatization, even though their privatization and
denationalization might not be specifically prohibited in the Kyrgyz Republic Constitution and theKyrgyz Republic Law On Privatiza tion and Denationalization.  The current list of objects not subject to
privatization is the following:
- mineral resources, forest fund, water resources, air space;
- protected or used in a special manner natural territories;
- objects of historical and cultural heritage of the people of Kyrgyzstan (unique cultural and
natural monuments, objects of nature, history, culture, science and technology, as well as
rarities kept in state museums, libraries and their subsidiaries, the association of folk art
production "Kyial");
- property compounds of state power and management bodies;
- funds of the republican budget and foreign currency reserve of the Kyrgyz Republic, Social
Fund under the Kyrgyz Republic Government, ot her State out-of-the-budget funds, as well
as the gold reserve;
- National Bank of the Kyrgyz Republic, Treasury, Monetary chamber;
- arms, military equipment and other property of military use, budget-financed entities and
organizations (including arsenals), as well as vehicle columns of military type under the
operative management of the Ministry of De fense of the Kyrgyz Republic, Ministry of
National Security of the Kyrgyz Republic; Ministry on emergencies and civil defense of
the Kyrgyz Republic, Ministry of interior of  the Kyrgyz Republic, other ministries and
agencies that have military units;
- military objects of CIS countries located on the Kyrgyz Republic territory in accordance
with existing inter-state agreements;
- objects of the civil defense of the Ministry  of Emergencies and Civil Defense of the
Kyrgyz Republic;
- science-technical entities and organizations within  the system of the State agency on forests
under the Kyrgyz Republic Government;
- enterprises and science-technological entities and organizations within the system of the
State inspection on standardization and metr ology under the Kyrgyz Republic Government
and State archive agency under the Kyrgyz Republic Government;WT/ACC/KGZ/26
Page 11
- entities and organizations subordinate to the National Committee on Statistics of the
Kyrgyz Republic;
- enterprises and organizations of  hydro-meteorological service, services of control over the
state of environment and protection of the nature;
- enterprises and organizations of the mapping-geodesic service;
- enterprises and entities of sanitary-epidemi ological and quarantine service of the Kyrgyz
Republic, plant protection service;
- objects and equipment for permanent storage of hard industrial and household wastes, hard
and liquid radioactive wastes, animal cemeteries;
- cemeteries, enterprises on their service and provision of ritual services;  and,
- technical inventory bureau.
The Law on Denationalization and Privatization of  State Property of 12 January 1994 provided the
Cabinet of Ministers with the authority to restrict or otherwise limit foreign investors from participating
in the privatization of certain industries; however the Cabinet of Ministers had not yet exercised this
authority.   The Kyrgyz Republic would not use such authority in a manner inconsistent with its
obligations as a future member of the WTO.  Foreign investors currently particip ated in the privatization
process in the Kyrgyz Republic accord ing to the same rules applied to domestic investors.  Privatization
methods which will be used for privatizing remain ing State assets, subject to privatization were:
(i) corporatization (turning a State-owned en terprise into a Joint Stock Company-JSC)
followed by privatization through sales of shares using auctions or commercial tenders
(used mainly for the privatization of medium and large scale enterprises);
(ii) transformation of a State-owned object in to a limited liability partnership followed by
sale of partnership rights;
(iii) direct sale (including bidding) to strate gic investors (especially foreign companies) of
large-scale objects.  Companies are invited to bid through international press;
(iv) direct sale (including bidding), aucti ons, and commercial tenders of any objects;
(v) lease (contract management) for a period of time including the right of purchase by
lessee.
During 1998, the Kyrgyz Republic planned to begin privatization and denationalization of  large
enterprises in strategic sectors of the economy including mining, energy, telecommunications, and
systems of supply (oil and gas).  These include co mpanies such as Kyrgyztelecom-telecommunications
company, Kyrgyz Aba Zholdoru-National airline company, Karabalta-Mining, Kadmajay Antimony,
Uchkun JSC-Printing, Akyl JSC-Printing, Kyrgyz Energy Holding, Kyrgyzgasmunaizat, and BishkekMachinery JSC.  Also, the Kyrgyz Republic plan s to privatize and denationalize companies and
facilities of the non-productive sphere (e.g. movie theatres, recreation objects, resorts) in 1998-2000.WT/ACC/KGZ/26
Page 12
Table 1:  Sectoral Privatization Data Profile for 1991-1997
Sector Number of Objects
of State Property as
of 1 January 1991Number of Privatized
Objects as of
31 December 1997Percentage of
Privatized Objects
as of 1 January 1998
Industry 602 531 88.2
Consumer Services 1,919 1,917 99.9
Oil Production Sector 1,253 434 34.6
Trade and Public Catering 1,949 1,894 97.1
Agriculture 855 354 41.4
Construction 730 418 57.3
Transport 295 154 52.2
Other sectors 2,306 673 28.2
Total 9,989 6,375 63.8
Table 2:  Sectoral Privatization Data Profile by Privatization Modes For 1991-1997
Sector Privatization Mode Number of
Privatized Objects
Industry Lease with subsequent buy-out
Auctioning
Sale through auctions
Sale through tenders
Gratis transfers
Direct sale to private entities
Direct sale to labour collectives (bodies)Incorporation (Joint-Stock Companies)8
400
16
12
1
18
4927
Consumer Services Lease with subsequent buy-out
Auctioning
Sale through auctions
Sale through tenders
Direct sale to private entities
Direct sale to labour collectives (bodies)Incorporation (Joint-Stock Companies)17
36
170
529
717
440
8
Non-production sector Lease with subsequent buy-out
Auctioning
Sale through auctions
Sale through tenders
Direct sale to private entities
Direct sale to labour collectives (bodies)
Incorporation (Joint-Stock Companies)2
277
30
8
41
28
48
Trade and public catering Lease with subsequent buy-out
Auctioning
Sale through auctionsSale through tenders
Direct sale to private entities
Direct sale to labour collectives (bodies)
Incorporation (Joint-Stock Companies)41
213
151581
307
549
52WT/ACC/KGZ/26
Page 13
Sector Privatization Mode Number of
Privatized Objects
Agriculture Lease with subsequent buy-out
AuctioningSale through auctions
Sale through tenders
Direct sale to private entities
Direct sale to labour collectives (bodies)
Incorporation (Joint-Stock Companies)4
128
6
1
30
177
8
Construction Lease with subsequent buy-out
Auctioning
Sale through auctions
Sale through tendersDirect sale to private entities
Direct sale to labour collectives (bodies)
Incorporation (Joint-Stock Companies)2
298
11
3
13
69
22
Transport Auctioning
Direct sale to private entities
Direct sale to labour collectives (bodies)
Incorporation (Joint-Stock Companies)137
3
11
3
Other sectors Lease with subsequent buy-out
Auctioning
Sale through auctions
Sale through tendersDirect sale to private entities
Direct sale to labour collectives (bodies)
Incorporation (Joint-Stock Companies)24
151
77
28
171
193
28
He noted that the private sector accounted for 49 per ce nt of GDP in the industrial sector;  98 per cent of
GDP in the agriculture sector;  97 per cent of GDP in the retail sector 79 per cent of GDP in the
construction sector and 24 per cent of GDP in the transportation sector.
13. Some members of the Working Party stated that the Kyrgyz Republic should accept a
commitment to transparency in this area whic h was appropriate to its particular situation.
14. The representative of the Kyrgyz Republic st ated that the Kyrgyz Republic would provide
annually to WTO Members information on developments in its privatization for as long as itsprogramme of privatization is in existence along th e lines of the information provided to the Working
Party during the accession process, and on other issues related to its economic reforms as relevant to its
obligations under the WTO.    The Working Party took note of this commitment.
- Pricing policy
15. At the earlier stages of the deliberations, the representative of the Kyrgyz Republic stated that
all prices had been liberalized except when the conc erned item was supplied by an entity that has been
classified as either a natural, permitted or temporary monopoly. Certain natural monopolies (electricity,
gas pipelines, telecommunications, railroad and aviati on) were regulated through either price or profit
restrictions by the Anti-Monopoly Department within th e Ministry of Finance.  Prices of water supply,
heat, hot water and public transport were set by c ity or oblast administrations.  Non-natural monopolies
with  a dominant position in the market (more th an 35 per cent market share) were subject to
profitability control.  The allowable margin of pr ofitability had ranged from 25 per cent to 50 per cent.
At that time, there were 105 companies (mostly goods producers) subject to profitability control.WT/ACC/KGZ/26
Page 14
Companies which exceeded their allowable profitability  margin had to provide a written justification to
the Anti-Monopoly Department.
16. Some members of the Working Party requested further information on which natural
monopolies were subject to pricing or profit controls, and how such controls were operated.  In
response, the representative of the Kyrgyz Republic later on, describing the current situation, stated that
tariff rates were required to be approved by th e Anti-Monopoly Department at the Ministry of Finance
(AMD), on the basis of levels and norms of profitabili ty: cost of operating a specific infrastructure (e.g.
power transmission line, pipeline) or producing a sp ecific product plus a profit margin set by the AMD.
The following natural monopolies were subject to price and/or profit controls:
- Kyrgyz Energy Holding production, transmi ssion, and distribution of electricity and
thermal power);
- Kyrgyzgasmunaizat (natural gas);
- Kyrgyztelecom (communication services);- Kyrgyzalco (alcohol and alcoholic products - subject only to profit controls);
- Kyrgyztamekesi (tobacco and tobacco produc ts - subject only to profit controls);
- Kyrgyz Aba Joldoru (air transport of passengers and cargo); and
- Kyrgyzrailroad (rail transport of passengers and cargo).
In addition, the prices of services provided by Ky rgyztelecom (e.g. cost for installing a phone, rate of
long distance calls/per minute) were set by th e AMD.  The prices of services provided by
Kyrgyzgasmunaizat (only gas for population) a nd Kyrgyz Energy Holding (e.g. electricity
HS 2716 rate/kwh) were established by the State Agen cy on Energy.  Prices for using sewage systems,
water, and city public transport were  set by city or oblast administrations.   All fees for services provided
by the state were subject to control (e.g. fee fo r driver’s license, fee for obtaining phytosanitary
certificate, fee for obtaining veterinary certifi cate).  Permitted monopolies (eight companies) and
temporary monopolies (34 companies) were  companies which had  a dominant position in the market
(more than 35 per cent market share).  Those compan ies were  not subject to price or profitability
control.  Permitted monopolies were required to notify their prices to the Anti-Monopoly Department at
the Ministry of Finance.   All other natural monopolies were permitted to set their prices freely.
17. The representative of the Kyrgyz Republic stated that the Kyrgyz Republic's regime for price
and profit control for natural monopolies would be operated in conformity with the requirements of
Articles II and III of the GATT 1994 and Article VIII of the GATS.
18. Some members of the Working Party noted that  two of the covered entities dealt with the
production and sale of alcohol and tobacco: Kyr gyzalco and Kyrgyztamekesi.  They requested
additional information on the profit controls applied.   In response, the representative of the
Kyrgyz Republic stated that Kyrgyzalco was a St ate Joint Stock Company within which there were
currently 14 joint stock companies.  The domestic market share of companies under the structure of
Kyrgyzalco in the sale of alcoholic products wa s approximately 60 per cent.  Wholesale prices of
alcoholic products were established separately by each of the enterprises under Kyrgyzalco.  Enterprises
under Kyrgyzalco were required to declare their prices to the Anti-Monopoly Department under the
Ministry of Finance and were subject only to pr ofit control by the Anti-Monopoly Department. Profit
could not exceed 20 per cent on products covere d by HS code 2204, 2205, 2206, 2207 and 2208.  ThereWT/ACC/KGZ/26
Page 15
were no plans to eliminate Kyrgyzalco and take away  its authority to license the trade and production of
alcohol and alcoholic products.
19. In relation to Kyrgyztamekesi, the representative of the Kyrgyz Republic added that it was a
State Joint Stock Company with seven companies unde r its structure (six were joint stock companies
and one was a State enterprise).  The domestic ma rket share of Kyrgyztamekesi was approximately
16 per cent for tobacco products.  Kyrgyztamekesi was required to declare its prices to theAnti-Monopoly Department under the Mi nistry of Finance and was subject only to profit control by the
Anti-Monopoly Department.  Its profit was not perm itted to exceed 20 per cent on products covered by
HS code 2401, 2402 and 2403.
20. In response to requests from some members of the Working Party, the representative of the
Kyrgyz Republic explained that the controls men tioned above were authorized by the Law of the
Kyrgyz Republic on Limitation of Monopolistic Ac tivities and the Development and Protection of
Competition of 15 April 1994 and sub-central authoritie s applied such controls in accordance with the
same law.  The purpose of price and profits control was to regulate natural monopolies and fees for
services charged by State bodies.  In general, the Government of the Kyrgyz Republic wished to avoid
application of such measures, and intended to do so in the future in accordance with the law.
21. The representative of the Kyrgyz Republic stated that all price and profit controls on products
and services still in effect, at the central and sub-central level were listed in paragraphs15, 18 and 19above by HS code where applicable. All other pri ces for goods and services in the Kyrgyz Republic
were determined by market forces.  Any changes in price controls or additional controls would be
published in official publications.  All price and pr ofit controls would be applied in a WTO-consistent
fashion, taking into account the interests of exporti ng WTO Members as provid ed for in Article III:9 of
the GATT 1994 and in Article VIII of the General Agreement on Trade in Services (GATS).  TheWorking Party took note of these commitments.
IV. FRAMEWORK FOR MAKING AND ENFORCING POLICIES
- Powers of executive, legislative and judiciar y, administration of policies on WTO-related
issues
22. The representative of the Kyrgyz Republic stated that under the Constitution of the
Kyrgyz Republic, governmental power was divide d among the executive, legislative and judicial
branches, with the President being afforded the most  significant power.   The President was the Head of
State and the highest government official.  The executive powers were exercised by the Government
(principally, the Cabinet of Ministers) formed by th e President.  The head of the Government was the
Prime Minister.  The President was elected to a 5-y ear term of office on the basis of universal (persons
18 years of age and older), equal and direct suffrage by secret ballot.  The Constitution gave the
President wide-ranging powers:  he was the highes t representative of the Kyrgyz Republic both within
the country and in international relations; he dete rmined the basic direction of domestic and foreign
policy and had the right to propose and veto legislation;  his assent was required for any bill passed by
the Parliament to become law (unless the Parliament was exercising a presidential veto).  He had the
power to issue decrees and to suspend or invalidate acts of the Cabinet of Ministers and other executive
bodies.  The President was responsible for appoi nting members of the Cabinet of Ministers.
23. The representative of the Kyrgyz Republic furthe r added that the Cabinet of Ministers was the
principal institution of Government.  Executive powe r was exercised by the Cabinet of Ministers, as
well as the individual ministries, State committees, ad ministrative departments, other central executive
bodies and local State administrations under the contro l of the Cabinet of  Ministers.  The Cabinet of
Ministers consisted of the Prime Minister, all Vice- Prime Ministers, all Mini sters and Heads of State
Committees.  The Government was the highest body within the executive power system of the KyrgyzWT/ACC/KGZ/26
Page 16
Republic, (except the President) and as such directly  controls activities of local state administrations on
a range of issues, including those involving external  trade matters and implementation of provisions of
international treaties to which the Kyrgyz Republic is a party.  Article 6 of the Civil Code provided that
international agreements ratified by the Kyrgyz Republic were to take precedence over conflicting
provisions in civil legislation.  The Kyrgyz Republic Law "On Government" of 25 March 1997 No. 17
set out the functions and authority of the central go vernment and provides in Article 20 and 21 that the
Government shall direct the implementation of a ll laws and decrees of the Kyrgyz Republic.  The
Kyrgyz Republic Law "On local self-government and local state administrations in the Kyrgyz
Republic" of 19 April 1991 N-437-XII set out the power s of the local governments.  These powers were
subordinate to those of the national government a nd did not entail authority concerning trade policy,
which is the sole purview of the central authorities.
24. The representative of the Kyrgyz Republic stated that the Parliament exercised legislative power
was implemented by the Parliament which consisted of two chambers:  the Legislative Assembly andthe Assembly of People’s Representatives.  Judicial authority was exclusively exercised by the Courts.
The Court system consisted of a commercial di vision and an ordinary division.  Generally, the
commercial division dealt with business and commercial disputes between legal entities, whereas the
ordinary division had exclusive jurisdiction over all ot her types of disputes, including civil, criminal and
administrative law matters, as well as commercial disputes where at least one of the litigants was anindividual or a collective farm.  Both Court systems were divided into tiers.  The commercial division
had two tiers.  Seven regional commercial Courts of  general primary jurisdiction (one for the city of
Bishkek and one for each of the six oblasts) constitu ted the lower tier.  The Supreme Commercial Court
constituted the upper tier.  It had appellate jurisdiction over the decisions of  the regional commercial
Courts, and primary jurisdiction over disputes involv ing any "non-normative" aspect of an act of any
governmental body, institution or offi cial.  The ordinary Court system was divided into three tiers.  The
lower tier was composed of district Courts.  Th e middle tier was composed of seven regional Courts
(one for the city of Bishkek and one for each of the six oblasts), which had initial appellate jurisdiction
over the decisions of the district Courts.  The S upreme Court alone had final appellate jurisdiction over
the decisions of the regional Courts.    By virtue of the Constitution judges had immunity when acting in
their official capacity.  Any member of the three hi gh Courts (the Constitu tional Court, the Supreme
Court and the Supreme Commercial Court) c ould be removed from his/her post upon a formal
presentation to the Parliament by the President.  Lo wer Court judges could be removed if they failed  a
qualification test.
25. The representative of the Kyrgyz Republic said that agency actions affecting trade were subject
to administrative and appellate review.  Article 2(3) of  the Civil Code provided for the right to appeal an
administrative decision in court.  Specifically, Ar ticles 417 to 428 of the Customs Code of 1 October
1997 provided for the right to appeal decisions of  the customs bodies.  Article 57 of the Tax Code
provided for administrative appeals of decisions of an  official of the Tax Service.   Article 58 provided
for appellate review of any final decision of th e Tax Service.  Article 18 of the Law on Licensing
provided for the right to appeal to the Commercial C ourt for issues relating to the refusal to  issue a
license.
26. The representative of the Kyrgyz Republic stat ed that the Kyrgyz Republic would provide a
right of appeal to an independent body for foreig n and domestic importers and exporters of official
measures affecting trade.  The Working Party took note of this commitment.
- Authority of sub-central governments
27. The representative of the Kyrgyz Republic stated that the Kyrgyz Republic was divided into
seven regional executive administrations, under the di rect supervision and control of the Cabinet of
Ministers.  Within each  regional executive ad ministration were a number of departments having
regional competence over certain specified matters, e. g., a Department of Agriculture, a Department ofWT/ACC/KGZ/26
Page 17
Economy, which reported both to the regional executive administration and to its corresponding national
Ministry.  Because the regional executive administra tions were under the control and supervision of the
Cabinet of Ministers and each national Ministry, local  governmental policy affecting trade in goods and
services was  exclusively determined by the central  Government.  Governors headed the oblast regional
executive administrations, and were appointed by th e President with the consent of the corresponding
kenesh.  At the lowest level of government were the rayon (district) executive administrations.  The
President, with the consent of the kenesh of the ra yon, appointed the head of each rayon administration
after considering the recommendation of the concerne d governor or mayor.  The President could also
remove the head of the local rayon administration after taking into account the recommendation of the
concerned governor or mayor.  In addition to th e regional executive administrations, Bishkek and the
oblasts each had a locally elected unicameral legisl ature called a kenesh.  Each regional kenesh was
responsible for legislation dealing with regional so cial and economic matters.  Each kenesh must also
approve the budget prepared by its corresponding regi onal executive administration.  If a kenesh passed
a piece of legislation on a matter within its competen ce, it automatically became law.  Each rayon had a
local kenesh composed of 15-25 elected representa tives, the primary responsibility of which was to
adopt legislation dealing with a small range of local matters.
28. The representative of the Kyrgyz Republic conf irmed that central authorities would be solely
responsible for establishing foreign trade policy a nd that the central Government would implement the
provisions of the WTO relevant to sub-central  governments, including Article XXIV:12 of the
GATT 1994, the corresponding WTO Understanding and Article I:3(a)of the GATS.  He further
confirmed that, from the date of accession, the central  government would eliminate or nullify measures
taken by sub-central authorities in the Kyrgyz Repub lic that were in conflict with the WTO Agreement
when those measures were brought to its attention.  The Working Party took note of these commitments.
V. POLICIES AFFECTING TRADE IN GOODS
- Registration and right to trade
29. The representative of the Kyrgyz Republic stated  that, pursuant to the Law on State Registration
of Legal Entities dated 12 July 1996,  all natural and legal persons engaging in any type of economic
activity in the Kyrgyz Republic were required to be registered.  He noted that the Kyrgyz Republic hadno special registration requirements for persons enga ging in importing or exporting nor were individuals
or firms restricted in their ability to import or e xport based on the scope of business of their registration.
There were no restrictions, such as capital or nationality requirements, on persons wishing to engage in
foreign trade.  The representative of the Kyrgyz Re public also confirmed that the former State monopoly
in foreign trade had been abolished.
30. The representative of the Kyrgyz Republic confirmed that from the date of accession, the
Kyrgyz Republic would ensure that all of its laws a nd regulations relating to the right to trade in goods,
and all fees, charges or taxes levied on such righ ts would be in full conformity with its WTO
obligations, including Articles VIII:1(a), XI:1 and III:2 and 4 of the GATT 1994 and that it would also
implement such laws and regulations in full conform ity with these obligations.  The Working Party took
note of these commitments.
- Customs tariff
- Ordinary customs duties
31. The Kyrgyz Republic engaged in market access negotiations on goods.  The tariff concessions
resulting from these negotiations are reproduced in the Schedule annexed to the Protocol of Accession
of the Kyrgyz Republic which is reproduced in the Appendix to this Report.WT/ACC/KGZ/26
Page 18
32. In response to requests for information, the repres entative of the Kyrgyz Republic stated that the
Customs Tariff of the Kyrgyz Republic was containe d in the Cabinet of Ministers Resolution No. 358 of
28 May 1994 issued pursuant to the Customs Tariff  Law of 15 December 1992.  The temporary tariff
was a flat 10 per cent tariff on all imported goods, except those for which an explicit exemption had
been created by the Customs Tariff Law .  Under the temporary flat 10 per cent regime, the average
trade-weighted level of import duties (after adjus ting for exempted items and items qualifying for the
Kyrgyz Republic’s preference scheme) was 8.4 per cent in 1995.  In 1997, by Government Decision, the
Kyrgyz Republic had converted the tariff nomenclature to  HS 96 which had not altered the tariff rates
set in   1992.  Tariff descriptions were coded at the 6 and 9-digit levels.  In response to further questions,
he noted that the Kyrgyz Republic was engaged in negotiations to join the World Customs Organization.
33. He further added that under the Kyrgyz Republic ’s System of Preferences, goods originating in
developing countries were subject to a duty rate which was 50 per cent of the tariff rate while goods
produced in and imported from least developed countries  were free of duty.  The system of preferences
may be modified from time to time, in accordance with the provisions of the Customs Code of
30 July 1997.
34. In response to questions concerning the seasonal duties, the representative of the
Kyrgyz Republic stated that according to the Custom s Code of 30 July 1997, the Cabinet of Ministers of
the Kyrgyz Republic may establish seasonal duties.  The representative of the Kyrgyz Republic stated
that if imposed, seasonal duties would not exceed the bound level of tariffs and would be applied in a
manner consistent with the requirements of the WTO Agreement.  Also, adequate notice would be
provided before imposing seasonal duties.  The Working Party took note of these commitments.
- Tariff quotas, tariff exemptions
35. In response to questions from some members of the Working Party, the representative of the
Kyrgyz Republic stated that any business enterpri se operating in the Kyrgyz Republic, (including
wholly or partially foreign owned enterprises) could apply to the Ministry of Industry and Foreign Trade
to receive tariff exemptions for imports of certa in items used in the production of final products,
pursuant to Government Resolution No. 358 of 28 Ma y 1994.  Applications for tariff exemptions were
not automatically approved by the Ministry of I ndustry and Foreign Trade.  The criterion applied in
consideration of an application was whether the items will be used in the production of final products.
Import substitution or export performance were not factors in consideration of the requests.  The
exemptions were granted to the requesting enterprise alone.  Since 30 March 1994, 436 businesses had
enjoyed the benefits of the duty exemptions.
36. Some members of the Working Party noted that exemptions were granted to some products
originating in CIS countries.   They asked if the Kyrgyz Republic was prepared to enter a commitment
that tariff exemptions would only be given to thir d countries in the context of a WTO compatible Free
Trade Agreement or Customs Union Agreement.
37. The representative of the Kyrgyz Republic stated that upon accession to the WTO, any tariff
exemptions would only be implemented in conform ity with the relevant WTO provisions including
Articles I and XXIV of the GATT 1994.  The Working Party took note of this commitment.
- Other duties and charges
38. The representative of the Kyrgyz Republic confirmed that the Kyrgyz Republic levied no duties
and charges on imports other than ordinary custom s duties.  He further confirmed that the Kyrgyz
Republic had bound other duties and charges within th e meaning of Article II:1(b)of the GATT 1994  at
zero in its Schedule of Concessions on Goods which is  reproduced in Part I of the Annex to the Protocol
of Accession.WT/ACC/KGZ/26
Page 19
- Fees for services rendered
39. Some members of the Working Party requested information on any fees applied to imported and
exported products.  In response, the representa tive of the Kyrgyz Republic stated that an ad valorem
customs processing fee was levied on imported and e xported goods.  In response, some members of the
Working Party stated that the fee did not appear to be consistent with Article VIII of GATT 1994, which
required that fees and charges related to importati on and exportation be limited to the cost of services
rendered.  The representative of the Kyrgyz Republic stated that the government was considering how to
alter the current customs clearance fee from an ad valorem  fee into a fee that recovered the actual cost of
the service provided.  The Kyrgyz Republic was attemp ting to calculate the actual cost of the services
rendered in connection with importation and exportati on.  The representative of the Kyrgyz Republic
added that the Kyrgyz Republic would ensure that  all fees and charges related to importation and
exportation reflected the cost of services rendered.
40. Following further requests for information, the re presentative of the Kyrgyz Republic noted that
the Kyrgyz Republic  used an  ad valorem  rate of 0.15 per cent with minimum and maximum (600 som,
approximately US$32) limits.  The limits would be  determined on an annual basis to account for
inflation. The minimum and maximum fees were de termined using a methodology that was based on
internationally recognized cost acc ounting principles and practices.  The minimum fee consisted of two
components: direct costs a nd indirect costs.  Direct costs were those that were exclusively incurred to
process  a declaration, and consisted of employee cost s to process a declaration.  The time spent by an
employee to process various categories of  goods  was analyzed and the average employee cost to
process a declaration was computed.  Indirect costs were those that were incurred for various customs
activities including import and export processing.  These costs, also called overhead costs, were
allocated based on approximate total time spent by customs employees.  On average, Kyrgyz Customsemployees spent about 50 per cent of their time proce ssing import declarations.  As a result, 50 per cent
of the total overhead costs were allocated to import processing.  The maximum fee was based on the
total costs of Kyrgyz Customs. It was estimated that approximately 50 per cent of Customs resources
were consumed to process import declarations. As  a result, about 50 per cent of total costs were
allocated to import processing.  The Kyrgyz Repub lic would create a revolving fund to finance import
processing activities.  All revenues collected from import and export processing fees would be credited
to this fund. The proceeds from the fund would be used only to meet the costs of import and export
processing of the imports and exports subject to the fee.
41. Following further requests for information on th e customs processing fee, the representative of
the Kyrgyz Republic stated that in pursuance of Article VIII of the GATT 1994, the new Customs Codeof the Kyrgyz Republic put into effect on 1 Oct ober 1997, provided that customs fees collected for
customs clearance must not exceed the approx imate cost of the services provided.
42. The representative of the Kyrgyz Republic also noted that an import/export License Fee was
also charged.  The current fee was som 1,000 (US$56) .  Analysis had revealed that the current fee
reflected the cost of services rendered.  In response to questions he provided the following table listing
all customs fees applied to all imports and exports.  The following fees imposed by Government
Resolution No. 368 of 19 June 1998 On  Establishing the Fees for Customs Processing and Issuance of
Certificates of Origin were  charged by the Dir ectorate on the Technical Development of the Customs
Infrastructure under the State Customs Committee for customs storage:WT/ACC/KGZ/26
Page 20
No. Name Units Price including
VAT (in Som)
1 Storage of trucks containing goods (fee charged per 100 kg of
goods: units not divisible (i.e.  120 kg = fee charged for 200 kg):
up to 24 hourseach additional day100 kg
100 kg7
10
2 Storage of oil products and other goods at rail yard:
per day0.1 per cent of the
value of goods
3 Storage of goods delivered by air transport over the CIS from the
moment of notification:
first 5 days
from 5 days up to 10 daysover 10 days1 kg of goods
1 kg of goods1 kg of goods0.20/day
0.40/day0.60/day
4 Parking within the customs control zone:
first hourfor each additional hour and for each further day1 place
1 place3
5
43. The representative of the Kyrgyz Republic stated  that prior to the date of accession to the WTO,
the Government of the Kyrgyz Republic woul d adopt, through implementing Regulations, the
provisions and methodology for the application of  the customs processing fees as described in
paragraphs 40, 41 and 42 above.  He later stated that those Regulations (On Establishment of the
Amount of the Fees for Customs Clearance and Certif icate of Origin , No. 368 of 1998) had entered into
force on 19 June 1998.
44. The representative of the Kyrgyz Republic confirmed that all fees and charges for services
related to importation or exportation  would be opera ted in conformity with the provisions of Article
VIII of the GATT 1994 from the date of accession. The Working Party took note of this commitment.
- Tariff rate quotas
45. In response to questions from some members of the Working Party, the representative of the
Kyrgyz Republic stated that the Kyrgyz Republic maintained no tariff quotas, and did not intend to
introduce tariff rate quotas in the future.  Any ta riff rate quotas introduced in the future would be
operated in conformity with the relevant WTO prov isions, including Article XIII:5 of the GATT 1994.
Application of intern al taxes on imports
- Value Added Tax
46. In response to requests for information, the repr esentative of the Kyrgyz Republic stated that a
20 per cent VAT was imposed on all sales of goods within the Kyrgyz Republic, as well as on goodsimported from non-CIS countries. The VAT was imposed on non-CIS imports at the time of
importation, and was collected by the customs author ities. The base for assessment of the VAT was the
sum of (i) the customs value of the goods plus (ii) transportation, insurance and other costs related to the
importation of goods where applicable.  With re spect to goods imported from CIS countries, no VAT
was collected until the good was sold within the Kyr gyz Republic;  and the seller was permitted to claim
a VAT credit for the amount of VAT paid in the exporting CIS country.  This VAT-credit mechanism
for imports from CIS countries was in effect in all CIS countries.  In addition, VAT exemptions weregranted for (i) goods imported to render assistance in connection with natural disasters, armed conflicts,
or accidents;  (ii) goods imported as humanitarian a ssistance as specified under an order of the Cabinet
of Ministers;  (iii) imported goods which the importe r had previously exported;  (iv) goods temporarily
imported under bond, provided such goods were e xported in an unaltered condition within twelveWT/ACC/KGZ/26
Page 21
months;  (v) goods mistakenly imported into the Kyrg yz Republic and being returned to the original
exporter;  (vi) goods in transit through the Kyrgyz Republic;  (vii) imported goods intended for official
use by foreign embassies or similar representative offices of foreign governments and imported goods
intended for the personal use of the diplomatic, admi nistrative or technical personnel of such embassies
or representative offices or the family members of such personnel; (viii) pharmaceuticals and medicinal
supplies specified by Cabinet of Ministers;  (ix)  educational supplies and school equipment;  (x) baby
food;  (xi) capital goods imported by a legal entity or entrepreneur for use in its/his productive economic
activity;  and (xii) other imported goods specified as   VAT-exempt pursuant to the customs legislation
of the Kyrgyz Republic.
47. Some members of the Working Party stated that Article XXIV of the GATT 1994 does not
exempt regional integration agreements from applica tion of the MFN principle with regard to internal
taxation.  They requested an indication when the Kyrgyz Republic would bring its system of VAT
application into line with Article I of the GATT 1994.  In response the representative of theKyrgyz Republic stated that the Kyrgyz Republic understood the need to bring its VAT system into
conformity with accepted world practice, i.e. applying  the VAT to all goods sold or imported into the
Kyrgyz Republic regardless of their country of origin, and exempting exported goods regardless of their
country of destination.  However, he noted that because it was necessary to obtain the agreement of
other CIS countries to do so it was not possible to give  a date for elimination of the practice.  A bilateral
agreement had been reached with Kazakstan (entry  into force 21 July 1997), with the result that
Kazakstan was treated as a "non-CIS" country with respect to the application of VAT.  Moreover,
analogous agreements had been negotiated but not yet initialled with Armenia, Azerbaijan and Belarus,
initialled with Georgia, and concluded with Tadjik istan (entry into force 6 May 1998), Ukraine (entry
into force 10 April 1998) and Uzbekistan (entry into  force 22 April 1998).  A Protocol signed with the
Russian Federation recently would change this practice in their trade as of 1 January 1999.
Amendments of the Tax Code provided for appli cation of VAT to imports from CIS countries which
applied the destination principle to their export s to the Kyrgyz Republic.  VAT would also not be
applied to exports to CIS countries which applied the destination principle with regard to their exports to
the Kyrgyz Republic.
48. The representative of the Kyrgyz Republic stated that the Law on Making Amendments and
Supplements to the Tax Code of the Kyrgyz Republic  would be adopted and enter into force no later
than 1 January 1999 and that as soon as possible from the date of accession  but not later than 1 January
1999, the Kyrgyz Republic would ensure that value a dded taxes would be applied to imports in full
conformity with WTO requirements, in particular, the most-favoured-nation requirements of Article I
and the national treatment provisions of Article III of the GATT 1994.  The Working Party took note of
this commitment.
- Excise Taxes
49. In response to requests for information on the excise taxes applied in the Kyrgyz Republic, the
representative of the Kyrgyz Republic stated that excise taxes were imposed on certain goods whether
produced in or imported into the Kyrgyz Republic.  He further added that the new Tax Code specified
that the following goods were subject to excise taxes:  (i) alcoholic beverages, drinks, spirits and liquors;(ii) items destined for wine production;  (iii) t obacco and tobacco products;  (iv) gold, silver and
platinum jewellery;  (v) processed and non-processed fur hides (except for the hides of moles, rabbits,
dogs, deer, or sheep);  (vi) clothing made of natura l fur (except for apparel made of the hides of moles,
rabbits, dogs, deer, or sheep);  (vii) coats, short co ats, jackets and cloaks trimmed with fur (except for
the fur of moles, rabbits, dogs, deer or sheep);  (v iii) clothes made from natural leather;  (ix) crystal
items, including lighting appliances made of crysta l;  and (x) firearms, including gas weapons (other
than those procured by State authorities).  The following imported goods were exempted from excise
tax:  (i) goods needed to operate or repair vehi cles being used for the international conveyance of
passengers, baggage or cargo;  (ii) goods which were damaged and thereby made useless prior to theirWT/ACC/KGZ/26
Page 22
entry into the Kyrgyz Republic;  (iii) goods importe d as humanitarian aid;  (iv) goods imported for
charitable or aid purposes, including technical assist ance supplied by foreign States and international
organizations;  (v) goods confiscated by or escheated to the State;  (vi) goods in transit through the
Kyrgyz Republic; and (vii) goods intended for official use by foreign embassies or similar representative
offices of foreign governments and imported goods intended for the personal use of the diplomatic,
administrative or technical personnel of such embassies  or representative offices or the family members
of such personnel.
50. The representative of the Kyrgyz Republic added that some excise taxes were assessed on an
ad valorem  basis, while others were assessed on a quant ity basis.  Domestic and imported goods were
subject to differing excise tax rates.  Imported goods  subject to excise tax were exempted from customs
duties.  Some members also requested information on the methodology used to calculate excise rates for
domestic,  CIS and other imported products.  In response, the representative of the Kyrgyz Republic
stated that the Cabinet of Ministers Resoluti on No. 557 of 26 September 1997, and Resolution No. 702
of 4 December 1997 established the methodology to be used for calculating excise taxes.  This
methodology was the same for goods produced in the Kyrgyz Republic and imported from other
countries including CIS countries.
In cases where the excise tax rate was establis hed in proportion of the w holesale price of goods:
H= C x A:100 per centwhere
H = the amount of excise tax
C = the wholesale price of goods (or thei r customs value at the point of import)
A = the rate of excise tax in per cent.
In cases where the excise tax rate was estab lished in US$ to the physical volume of goods:
H = O x T x K
where
H = the amount of excise tax
O = the physical volume of manufactured or imported goods (kilogram, litre, units, tons)
T = the rate of excise tax in US$ per unitK = the US$ exchange rate to the Kyrgyz Som.
The Som was the only currency that could be used for payment of excise taxes for both imports and
domestic products.  Conversion into Soms was based on the official exchange rate of the National Bank
of the Kyrgyz Republic.
51. The representative of the Kyrgyz Republic further added that the new Tax Code, which came
into effect on 1 July 1996, substantially changed the list of goods subject to excise tax.  However, no
rates had been set for the items newly subject to exci se tax.  In the interim, customs duties applicable to
such items had temporarily been increased.  He stated  that the current system of excise taxation treated
imported and domestic products differently.  In response, some members of the Working Party stated
that although they welcomed the Kyrgyz Republic's  recognition that the current excise tax system
treated domestic and imported products differently, which was inconsistent with Article III of the
GATT 1994, they asked that the system be brought into  conformity with that provision and requested a
progress report on the reform of the system.   In response, the representative of the Kyrgyz Republic
stated that following a review of excise tax ra tes, the Legislative Assembly had in December 1996
approved the following table of excise tax rates.WT/ACC/KGZ/26
Page 23
Table 3:  Excise Tax Regime
Goods Domestic Rates Imported Rates HS Codes
Ethyl alcohol and purified ethyl alcohol
produced from raw materials (except thoseimported by special consumers withinstipulated limits)US$1.4/litre US$1.4/litre 2207
Vodka US$0.90/litre U S$0.90/litr e 220890110-220890390
Liqueurs and vodka produ cts US$0.90/litr e $0.90 /litre 220810,
220830,220890510-220890790,220890910,
220890990
Alcoholized beverages, juice an d balsam* US$0.90 /litre US$0. 90/litr e 220840,
220850
Grape wineother winesUS$0.35/litre
US$0.29/litre
Wine US$0.35 /litre 220421-220429,
2205,2206
Cognac US$0.60/litr e US$0.80 /litre 220820100
Sparkling wines US$0.40/litre US$0.45/litre 220410
Beer:
- packaged- unpackagedUS$0.80/litre
US$0.05/litreUS$0.25/litre 2203
Raw materials for wine production US$0.15/litre US$0.20/litre 220430
Tobacco products**
- filter cigarettes- unfiltered cigarettesUS$1.5/1000 each
US$0.75/1000 eachUS$5/1000 each
US$2/1000 each2402
2402
Other tobacco-containing items, including
fermented tobacco12 per cent 240110,
240120, 2403
Gold, platinum or silver jewellery 20 per cent 30 per cent 7113-7118
Processed and raw fur hides (other thanmole, rabbit, deer, dog and sheep skin)0 per cent 10 per cent 4110,
4103-4104,
4106-4109
Wearing apparel made of natural fur,including coats, short-coats, jackets, capes,stoles, scarves, headgear, collars, fur coatsand fur pieces (other than apparel made ofhides of mode, rabbit, dog, deer or sheep
skin)0 per cent 10 per cent 4303
Coats, short-coats, jackets and capes
trimmed with fur (other than mole, rabbit,
dog, deer or sheep skin)0 per cent 10 per cent 4303
Clothing made of natural leather 0 per cent 10 per cent 4203
Crystalware 0 per cent 30 per cent 701321,
701331,701391
Firearms and gas weapons (other thanthose acquired for the needs of Stateagencies)10 per cent 20 per cent 9301-9393,
9305-9306WT/ACC/KGZ/26
Page 24
Goods Domestic Rates Imported Rates HS Codes
Oil products:
- gasoline, soft and medium distillatesUS$45/ton $45/ton 2707,
271000330,271000350,271000390,
271000110,
271000150,271000210,271000250,271000410,
271000450
Aircraft fuel US$45/ton 271000510-271000590
Diesel fuel US$0/ton US$45/ton 271000610,
271000650,
271000690
Black oil US$0/ton US$0/ton 271000710,
271000750,27100790
Other US$0/ton US$0/ton 271000550,
271000910,271000930,271000990
Coffee and cocoa products 10 per cent 0901, 1801, 1803-1805
Carpets and rugs (except floor coverings) 0 per cent 35 per cent 57
* Excise tax rates were calculated based on the content of ethyl alcohol in such items, the base being a
beverage containing 45 per cent alcohol.
** Pursuant to Resolution No. 430 of 23 July 1997 of the Kyrgyz Republic for imported tobacco products
(topped cigarettes and without tops) with excise stamps, the rate of excise tax is U$1.5 per 1000cigarettes, pursuant to Resolution No. 430 of 23 July 1997 of the Kyrgyz Republic.
52. Some members of the Working Party stated that  the proposed new rates of excise taxation did
not appear to resolve the problems of inconsistent rate s of taxation, in particular higher rates of taxation
for certain imported products.  They requested that  the system be brought into conformity with
Article III of the GATT 1994, and that imported products not be subject to tax rates in excess of those
applied to domestic products.  In response, the representative of the Kyrgyz Republic stated that the
excise tax system prevailing in the Kyrgyz Re public was already in full conformity with WTO
most-favoured-nation requirements.  He noted that  no imported goods to the Kyrgyz Republic were
subject to both excise taxes and import duties at the same time, although it was not contrary tointernational practices or WTO rules to have appl y both excise taxes and import duties to an imported
good.  In response to further statements by members of the Working Party that the rates of excise tax
listed in Table 3 discriminated against imported products, the representative of the Kyrgyz Republic said
that Government Resolution No. 348 of 13 June 1998 On Rates of Excise Taxes (which required
approval  by Parliament) had established the following rates of excise taxes:WT/ACC/KGZ/26
Page 25
Table 4 - Harmonized rates of Excise tax
Goods Domestic Rates Imported Rates HS Codes
Ethyl alcohol and purified ethyl alcohol
produced from raw materials (except thoseimported by special consumers within stipulatedlimits)US$1.4/litre US$1.4/litre 2207
Vodka US$0.90/litre U S$0.90/litr e 220890110-
220890390
Liqueurs and vodka product s US$0.90/litre US$0.90/litre 220810,
220830,220890510-
220890790,
220890910,220890990
Alcoholized beverages, juice and balsam* US$0.90/litre US$0.90/litre 220840,
220850
Wines US$0.35/litre US$0.35/litre
Cognac US$0.60/litre U S$0.60/litr e 220820100
Sparkling wines US$0.40/litre US$0.40/litre 220410
Beer:
- packaged- unpackagedUS$0.11/litre
US$0.08/litreUS$0.11/litre 2203
Raw materials for wine produc tion US$0.15/litre US$0.15/litre 220430
Tobacco products
- filter cigarettes- unfiltered cigarettesUS$1.6/1000 each
US$0.75/1000 eachUS$1.6/1000
each
US$0.75/1000
each2402
2402
Other tobacco-containing items, includingfermented tobaccoUS$0.10/1 kg US$0.10/1 kg 240110,
240120, 2403
Gold, platinum or silver jewellery 10 per cent 10 per cent 7113-7118
Processed and raw fur hides (other than mole,rabbit, deer, dog and sheep skin)5 per cent 5 per cent 4110,
4103-4104,4106-4109
Wearing apparel made of natural fur, includingcoats, short-coats, jackets, capes, stoles,scarves, headgear, collars, fur coats and furpieces (other than apparel made of hides of
mode, rabbit, dog, deer or sheep skin)5 per cent 5 per cent 4303
Coats, short-coats, jackets and capes trimmed
with fur (other than mole, rabbit, dog, deer orsheep skin)5 per cent 5 per cent 4303
Clothing made of natural leather 5 per cent 5 per cent 4203
Crystalware, lighting appliances of crystal 20 per cent 20 per cent 701321,
701331,701391
Firearms and gas weapons (other than thoseacquired for the needs of State agencies)20 per cent 20 per cent 9301-9393,
9305-9306WT/ACC/KGZ/26
Page 26
Goods Domestic Rates Imported Rates HS Codes
Oil products:
-  gasoline, soft and medium distillates 
and other gasolineUS$50/ton US$50/ton2707,
271000330,271000350,271000390,
271000110,
271000150,271000210,271000250,271000410,
271000450
-  jet fuel (except needs of the 
"Kyrgyzstan Aba Joldoru" air 
company)*US$50/ton
-  diesel fuel US$25/ton US$25/ton 271000610,
271000650,271000690
-  black oil US$25/ton US$25/ton 271000710,
271000750,27100790
-  other US$35/ton US$35/ton 271000550,
271000910,
271000930,
271000990
-  raw oil and raw oil products got from 
bituminous materialsUS$10/ton US$10/ton
Coffee and cocoa* 10 per cent 0901, 1801,
1803-1805
Carpets and rugs (except floor coverings) 10 per cent 10 per cent 57
* No domestic production of such goods.
53. The representative of the Kyrgyz Republic stated that the Regulations on the Harmonization of
Excise Tax Rates (No. 348 of 13 June 1998) had passed  the first reading in Parliament on 30 June 1998
and would be adopted by 15 Septem ber 1998.  He also stated that from the date of accession to the
WTO, the Kyrgyz Republic would ensure that excise  taxes were applied to imports in full conformity
with WTO requirements, in particular the most favoured nation requirements of Article I and the
national treatment provisions of Article III of the GATT 1994.  The Working Party took note of these
commitments.
- Quantitative import restrictions
54. In response to questions, the representative of the Kyrgyz Republic stated that the
Kyrgyz Republic maintained  few quantitative import re strictions and it did not plan to introduce import
restrictions except in those circumstances permitted by the WTO Agreements. The Kyrgyz Republic did
not foresee balance of payment problems in the next 2 years provided that the current economic
situation continued to evolve favourably.  Curre ntly, the only import restrictions applied in the
Kyrgyz Republic applied to military arms and goods;  explosives;  nuclear materials and technology for
military use;  virulent poisons;  and narcotic s (including those used in pharmaceuticals) and
psychotropic substances.  The system applied to goods originating in and coming from all countries,
including other CIS countries.
55. The representative of the Kyrgyz Republic stated that if the Kyrgyz Republic introduced import
quotas as an emergency measure in the future they would be in conformity with Article XIX of the
GATT 1994 and the Agreement on Safeguards.  If import quotas were introduced for balance ofWT/ACC/KGZ/26
Page 27
payments purposes they would be in conformity with Article XII and Article XVIII of the GATT 1994,
the Understanding on the Application of Restricti ons for Balance-of-Payments Purposes and the WTO
Agreement.
- Import licensing procedures
56. In response to requests for information, the representative of the Kyrgyz Republic stated that
previously, import licences had been required for fi ve broad categories of goods.  A Draft Regulation
finalised and submitted to the Working Party specified  in greater detail the goods subject to licensing,
and broke down the covered goods into 19 sub-items.  The representative of the Kyrgyz Republic
provided the Working Party, with the fo llowing table listing the covered goods:
Table 5:  List of Specific Goods Imported under Licenses
contained in the Regulation on Import/Export Licensing
(No. 1100-1, implemented 8 June 1998)
No. Goods HS Code Rationale/Justification
1. Ciphering devices (including
ciphering equipment, spare parts forthe  ciphering equipment, ciphering
programs), normative and technical
documents to the ciphering devices(including designing andexploiting)8471 (ciphering equipment only),
847330000 (for the cipheringequipment only), 854380900
(ciphering equipment only),
854390900 (ciphering equipmentonly)To protect the Republic’s
national security
2. Arms and weapons, specific parts
for their production, works andservices in the area of military -
technological cooperationby the list of the Ministry of
Defense of the Kyrgyz RepublicTo protect the Republic’s
national security
3. Protection devices from the battle
poisoning substances, parts and
accessories thereofby the list of the Ministry of
Defense of the Kyrgyz RepublicTo protect the Republic’s
national security
4. Military uniform, clothing and
attributesby the list of the Ministry of
Defense of the Kyrgyz RepublicTo protect the Republic’s
national security
5. Normative and technical documents
to the military products(construction and exploitation)by the list of the Ministry of
Defense of the Kyrgyz RepublicTo protect the Republic’s
national security
6.  Gun powder and explosives,
explosive devices and pyrotechnics3601 (except for the hunting
powder), 3602, 3603, 3604To protect the Republic’s
national security
7. Nuclear materials, technologies,
equipment and plants, special non -
nuclear materials, sources for the
radioactive radiation, includingradioactive wasteby the list approved by the
President of the Kyrgyz Republic
(Resolution No. 55, 2 June 1996,
the Government of the KyrgyzRepublic)To maintain the Republic’s
national security, as well as to
adhere to international
commitments related tonon-proliferation of massdestruction and productiontechnologies thereof
8. Materials, equipment and
technologies which are intended for
peaceful purposes but can not be
used while creating weapons formass exterminationIn accordance with the list passed
by the President of the Kyrgyz
Republic (Resolution No. 55,
2 June 1996, the Government of theKyrgyz Republic)To maintain the Republic’s
national security, as well as to
adhere to international
commitments related tonon-proliferation of massdestruction and productiontechnologies thereof.WT/ACC/KGZ/26
Page 28
No. Goods HS Code Rationale/Justification
9. Certain types of raw materials,
equipment, technologies andscientific information which can beapplied while creating weapons and
military techniquesby the list approved by the
President of the Kyrgyz Republic(Resolution  No. 55, 2 June 1996,the Government of the Kyrgyz
Republic)To maintain the Republic’s
national security, as well as toadhere to internationalcommitments related to
non-proliferation of mass
destruction and productiontechnologies thereof
10. Precious metals, alloys, goods made
from them, metals plated   withprecious metals and goods madefrom them; ores; concentrates; scrap
and waste2616 (ores and concentrates), 2843
(metals, junctions, amalgams),300640000 (from precious metalsonly), 7106-7112, 711311000,
711319000, 711411000,
711419000, 711510100,711590100, 711590900, 7118(from precious metals only), 8544(only with conductors from
precious metals), 960810300,
960839100To protect national treasures of
artistic, historic orarchaeological value;  to
conserve exhaustible natural
resources.
11. Precious natural stones and goods
from them, powder and recuperateof precious natural stones, goodsfrom them.7101, 7102, 7103 (precious stones
only), 7105 (from precious stonesonly), 7116 (from precious stonesonly).To protect national treasures of
artistic, historic orarchaeological value;  toconserve exhaustible naturalresources.
12. Narcotics and psychotropic drugs,
virulent and stupefying concoctionsby the list of the State Commission
for Drug Control under the
Government of the KyrgyzRepublicTo protect the population’s life
and welfare
13. Virulent poisons by the list approved by the
Government of the KyrgyzRepublic (Resolution of theGovernment of the Kyrgyz
Republic of 6 February 1996, No. 
55)To protect the population’s life
and welfare, as well as flora andfauna in general
14. Hazardous wastes by the list of the Basil Convention
on the Control over Trans-borderTransportation of hazardous cargoof 22 March  1989, approved byResolution of the Parliament of the
Kyrgyz Republic of
18 January 1996, No. 304-1)To protect the population’s life
and welfare, as well as flora andfauna in general
15. Chemical means of protection of
plants3808 (preparations for the plant
protection only)To protect the population’s life
and welfare, as well as flora andfauna in general
16 Pharmaceuticals by the list of the Ministry of Health
of the Kyrgyz RepublicTo protect the population’s life
and health
17. Service and civil guns by the list of the Ministry of
Internal Affairs of the Kyrgyz
RepublicTo maintain public order
18. Tobacco by the list of
"Kyrgyztamekisi"2401, 2402, 2403To protect the health and life of
the population
19. Spirits and alcoholic products by the list of the State Joint Stock
Company "Kyrgyzalco"2204,2205, 2206, 2207, 2208, , 220840,220850, 220860, 220870, 220890To maintain public order and
protect the health and life of thepopulationWT/ACC/KGZ/26
Page 29
The import licensing system was required to protect public health and safety, the environment,
consumer welfare and national security.  The licen sing procedure was not intended to restrict the
quantity or value of imported goods.   Imports subject  to licensing amounted to about 2 per cent of the
value of the Kyrgyz Republic’s total imports.  Goods subject to import licensing were designated by the
Cabinet of Ministers upon recommendation by intere sted ministries and government bodies and were
not subject to administrative discretion.
57. The representative of the Kyrgyz Republic further added that to obtain a licence for import (and
also for the export) of alcohol and alcoholic produ cts (except beer, for which there were no import or
export licensing requirements) and tobacco products, an importer was required to submit an application
for a license and the following documents:  (i) import or export contract;  (ii) copy of the purchase-sale
contract if the applicant does not own the goods;  (iii)  copy of the certificate of registration;
(iv) certificate of compliance;  (v) certificate of  origin;  (vi) conclusion of expert-organization;
(vii) copy of tax-payer registration card.  There we re no quotas connected with the import and export of
alcohol, alcoholic or tobacco products.  A licence was required to be issued within ten days of
application.  A licence could be obtained after goods ha d arrived at the border.  For imports of alcoholic
beverages,  Kyrgyzalco was the sole agency w ith responsibility for determination of the licence
application.  Licenses were required to be granted unless the application for a licence was not complete
or the information contained therein was not reliable .  Article 8 of the Law on Licensing provided that
foreign legal entities or individuals, as well as indivi duals without citizenship were entitled to receive
licences on the same conditions and pursuant to the same procedures as legal entities and individuals of
the Kyrgyz Republic.  Whenever a licence application was refused, reasons for the refusal were required
to be provided to the applicant in writing.  In the case of a refusal, applicants had a  right of appeal to a
Court, per Article 18 of the Law on Licensing of 3 March 1997.
58. In response to further questions concerning th e procedure for granting of an import licence, he
added that none of the items subject to import licensi ng were restricted as to the quantity or value of
those imports.  Licence applications were normally approved in about 1 week.  In urgent cases an
application could be approved in a shorter time.   Applications for an import licence could only be
refused in an application did not meet the stipulated criteria.  The reasons for refusal were required to beprovided in writing to the applicant.  A decision to refuse to grant a licence could be appealed to the
Ministry which refused the application and further a ppealed to an independent Court.   All persons,
firms and institutions were eligible to appl y for an import licence under the system of the
Kyrgyz Republic.  There was no system of registration of persons or firms permitted to engage in
importation.  The licence was valid for up to six mont hs, or one year in the case of importers having
long-term relationships with foreign exporters.  The licence could be renewed for a further period of six
months.  There was no penalty for non-utilization of the licence or a portion of a licence.  The licence
was not transferable.  The current fee to obt ain an import license was som 1000 (approximately
US$56.00).  He provided members of the Working Party w ith a detailed analysis of the cost of provision
of the service recovered by the fee in Attachment  A.IV to document WT/ACC/KGZ/13.  In his view that
fee reflected the cost of services rendered in  conformity with Article VIII of the GATT 1994.
59. Some members of the Working Party asked whet her the import licensing would be brought into
conformity with the Agreement on Import Licensing .  In response, the representative of the
Kyrgyz Republic stated that the Government of th e Kyrgyz Republic was in the process of drafting
regulations to establish new import licensing pr ocedures in conformity with WTO requirements,
including the Agreement on Import Licensing.  That  Regulation had been passed by Parliament on 8
June 1998 and was already in force.
60. The representative of the Kyrgyz Republic conf irmed that the Kyrgyz Republic would, from the
date of accession, eliminate and shall not introduce, re-introduce or apply quantitative restrictions on
imports or other non-tariff measures such as li censing, quotas, bans, permits, prior authorization
requirements, licensing requirements and other restri ctions having equivalent effect that cannot beWT/ACC/KGZ/26
Page 30
justified under the provisions of the WTO Agreements .  He added that the special import licenses listed
in items 10  11, 18 and 19 of Table 5 would be issued  in conformity with the provisions relating to
automatic licensing in the Agreement on Import Licensi ng Procedures and would not restrict the right to
import these products into the Kyrgyz Republic or in any way discriminate against imported products.
He further confirmed that the legal authority of the Government of the Kyrgyz Republic to suspend
imports and exports or to apply licensing requirement s that could be used to suspend, ban or otherwise
restrict the quantity of trade would be applied from the date of accession in conformity with the
requirements of the WTO, in particular Articles XI, XII, XIII, XIX, XX and XXI of the GATT 1994,
and the Multilateral Trade Agreements on Agriculture, Sanitary and Phytosanitary Measures, Import
Licensing Procedures, Safeguards and Technical Barriers to Trade.  The Working Party took note of
these commitments.
- Customs valuation
61. In response to requests for information concerning the customs valuation system, the
representative of the Kyrgyz Republic stated that the Customs Code put into effect on 1 October 1997
provided for six methods to determine the cust oms value according to the WTO Customs Valuation
Agreement.  He further added that the Kyrgyz Republic did not have any import reference prices in
place and any such measures would not be reintr oduced after accession, except in accordance with WTO
Agreements.
62. The representative of the Kyrgyz Republic also stated that the rules to  determine the customs
value contained in the Customs Code which came into force on 1 October 1997 were largely in
compliance with the WTO requirements.  Amendmen ts "On Changes and Amendments to the Customs
Code of the Kyrgyz Republic" adopted on 19 June 1 998 had brought the Customs Code valuation rules
into full conformity with the WTO.  He further stat ed that subsidiary legislation to fully implement the
Interpretative Notes contained in Annex I to the Agreement on Implementation of Article VII of the
GATT 1994 had been submitted to the State Customs Committee and would  enter into force on 1
September 1998.
63. The representative of the Kyrgyz Republic i ndicated that the Kyrgyz Republic would fully
apply the WTO provisions concerning customs valuation from the date of accession, including, in
addition to the Agreement on the Implementation of  Article VII of the GATT 1994, the provisions for
the Valuation of Carrier Media Bearing Software fo r Data Processing Equipment and the provisions on
the Treatment of Interest Charges in Customs Valu e of Imported Goods.  He further confirmed that, as
an international agreement, the provisions of th e WTO Agreement on the Implementation of Article VII
of the GATT 1994 would supersede domestic law after accession. He stated that upon accession,minimum import prices would not be applied for cu stoms valuation purposes.  The Working Party took
note of these commitments.
- Rules of origin
64. In response to questions from some members of the Working Party, the representative of the
Kyrgyz Republic stated that the Kyrgyz Republic had no country of origin marking requirement.  A
certificate of origin certified by an authorized go vernmental body in the country of origin was required
for all imported goods.  Pursuant to the Customs C ode, origin was determined by methods specified in
the Kyoto Convention Annex.  Once the Customs Code  was passed by Parliament, the Kyrgyz Republic
would require time to develop implementing regulations  on the determination of origin. It was envisaged
that the primary method used would be the tariff shif t method.  The Customs Code did not define the list
of operations that would be considered as sufficient  to confer origin.  No other specific implementing
regulations or rules had been developed.  He also added that the Kyrgyz Republic intended to adopt the
rules of origin that were being developed in the WTO.WT/ACC/KGZ/26
Page 31
65. In response to further requests for information on the customs origin provisions of the Customs
Code, the representative of the Kyrgyz Republic st ated that Chapter 55 of the Customs Code provided
for issuance of preliminary decisions on various i ssues including the country of origin. Assessments
remained effective for three years.  Implementing in structions describing the process in detail would be
developed at a later stage.  Chapters 58, 59 and 60 of the Customs Code provided that administrative
actions taken by customs bodies coul d be appealed.  The Customs Code  also provided that goods that
are wholly produced in a country are considered as  originating in that country.  A list of wholly
produced goods was adopted from the Kyoto Conventi on Annex.  The Customs Code provided for three
methods of determining origin as specified in the Kyoto Convention Annex.  However, the tariff shift
method of determining origin was, at present, the only method in use.  There were no regulations
implementing the ad valorem  or specific manufacturing or processing methods.
66. The representative of the Kyrgyz Republic confirmed that the Kyrgyz Republic would remedy
any departures from full conformity with the WTO Ag reement on Rules of Origin prior to its accession,
and that by that time, the Kyrgyz Republic's applica tion of rules of origin for both MFN and preferential
trade would be administered in conf ormity with the provisions of the Agreement.  The Kyrgyz Republic
would adopt the Harmonized Rules of  Origin once finalized by the WT O in co-operation with the World
Customs Organization.  The Working Pa rty took note of this commitment.
- Pre-shipment inspection
67. In response to questions, the representative of the Kyrgyz Republic stated that the
Kyrgyz Republic had no plans to introduce any pres hipment inspection requirements; however, if such
requirements were introduced, they would be consis tent with the requirements of the Agreement on
Preshipment Inspection.  The Working Pa rty took note of this commitment.
- Anti-dumping, countervailing and safeguards
68. Some members of the Working Party expresse d concern that both the current Customs Tariff
Law in force and the proposed law departed from WTO rules on imposition of anti-dumping duties in
several respects.  These members requested that the legislation be amended so as to be WTO-consistent
from the date of the Kyrgyz Republic's accession to th e WTO.   In response, the representative of the
Kyrgyz Republic stated that dumping, countervailing,  and safeguard measures would be governed by
new laws currently being drafted in conformity with respective WTO agreements.  Draft laws on
dumping, countervailing, and safeguard measures were submitted in October 1997 to the Working Party.
69. Some members of the Working Party requested that the Government of the Kyrgyz Republic
undertake a commitment that any anti-dumping, c ountervailing or safeguards measures would only be
taken pursuant to legislation in conformity with  the WTO Agreement on Subsidies and Countervailing
Measures, the Agreement on Interpretation of Article VI of the GATT 1994, and the Agreement on
Safeguards.
70. The representative of the Kyrgyz Republic stated that the Laws on Anti-Dumping, Safeguards
and on Subsidies and Countervailing Measures woul d be adopted in October 1998.  Any legislation in
place at the time of accession or implemented in the future providing for the application of measures
taken for anti-dumping, countervailing duty, or safegu ard purposes would confor m to the provisions of
the WTO Agreements of Anti-Dumping, on Subsidies and Countervailing Measures, and on Safeguards.In the absence of such legislative authority in place at the time of accession, the Kyrgyz Republic would
not apply measures for anti-dumping, countervailin g duty, of safeguard purposes until legislation in
conformity with the provisions of these WTO Agre ements had been implemented.  The Working Party
took note of these commitments.WT/ACC/KGZ/26
Page 32
- Export Regulation
- Customs tariffs, fees and charges and internal taxes applied to exports
71. In response to requests for information the representative of the Kyrgyz Republic stated that
there were no export duties.
72. The representative of the Kyrgyz Republic stated that like all CIS countries - a VAT was
charged on exports destined for other CIS countries . The importing CIS country was required to grant
the person who first sold the good a VAT credit in th e amount of the VAT paid to the Kyrgyz Republic.
VAT did not apply on exports to non-CIS countries.  He recalled that amendments of the Tax Code
provided for application of VAT to imports from CI S countries which applied the destination principle
to their exports to the Kyrgyz Republic - in this context VAT would also not be applied to exports to
CIS countries which applied the destination princi ple with regard to their exports to the Kyrgyz
Republic.  The VAT would be applied to exports in accordance with the destination principle as of
1 January 1999.
- Export restrictions
73. The representative of the Kyrgyz Republic stated that with the exception of quantitative
restrictions specified in an Agreement w ith the European Communities on Textiles, the
Kyrgyz Republic maintained no quantitative expor t restrictions, nor prohibitions on exports.
- Export licensing
74. The representative of the Kyrgyz Republic info rmed members of the Working Party that export
licences were required for the export of military arms and goods;  explosives;  nuclear materials and
technology for military use;  virulent poisons;  narc otics (including those used in pharmaceuticals) and
psychotropic substances;  works of art and antiquities  having historical, cultural or scientific value;
ferrous, precious and rare-earth metals extracte d and produced in the Kyrgyz Republic and their
fragments;  and rare types of raw materials of vegetable or animal origin having pharmacological
applications.  Except for non-ferrous metal fragmen ts and waste, the licensing requirement was not
intended to restrict the quantity or value of the exports  of these goods, but rather to protect public health,
consumer welfare, the environment, national patrimony and national security.  He further noted that
licensing was mandatory for textile exports to the European Communities.
75. In response to requests for more information concerning the requirement to obtain a licence for
the exportation of ferrous, precious and rare-earth  metals extracted and/or processed in the
Kyrgyz Republic, the representative of the Kyrgyz Republic stated that any manufacturing/mining entity
or intermediary entity (regardless of form or ownershi p) was eligible to apply for such a licence.  The
licence application was required to be submitted to the Ministry of Industry and Trade. When applyingfor an export licence, an applicant must submit:  (i) an application on a standard form;  (ii) a copy of the
export contract;  (iii) a copy of the applicable bilate ral agreement on deliveries, if any;  and (iv) a short
description of how the transaction benefits th e Kyrgyz Republic.  Upon receipt of a complete
application,  a licence would be granted automatical ly within 20 days. The licence was non-transferable.
Once the licence was granted, the recipient must prov ide it to the  State Customs Inspectorate together
with a customs declaration.  A "single shipment" li cence must be used within six months from the date
of issuance. A "multiple shipment" li cence must be used within 12 months.
76. The representative of the Kyrgyz Republic stated that the following non-ferrous metal and
wastes and scrap thereof, and HS tariff number,  were subject to export licensing:WT/ACC/KGZ/26
Page 33
7404 Copper wastes and scrap
7503 Nickel wastes and scrap
7802 Lead wastes and scrap
7602 Aluminum wastes and scrap
7902 Zinc wastes and scrap
8002 Tin wastes and scrap8101 Wolfram and articles thereof, including wastes and scrap
2611 Tungsten ores and concentrates
8102 Molybdenum and articles thereof, including wastes and scrap
2613 Molybdenum ores and concentrates
8103 Tantalum wastes and scrap
8104 Magnum wastes and scrap
8105 Cobalt wastes and scrap8106 Bismuth wastes and scrap
8107 Cadmium wastes and scrap
8108 Titanium wastes and scrap
8109 Zirconium wastes and scrap
8110 Antimony and articles thereof, including wastes and scrap2617 Antimony concentrates
2825 Antimony oxides
8111 Manganese wastes and scrap
8112 Rhenium and articles thereof, including wastes and scrap
8112 Chrome, germanium, vanadium, beryllium and niobium wastes
and scrap
77. Some members of the Working Party requested information on Cabinet of Ministers Resolution
No. 56 of 6 February 1996.  They noted that the Resolution provided for licensing requirements and
controls on exports, including  textile goods, wear ing apparel, silicon carbide, ammonium nitrate, and
raw aluminum, required by bilateral agreements between the Russian Federation and theEuropean Communities, and for general exports of pr ecious stones, precious metals, articles containing
precious metals, and precious metal waste.  The repr esentative of the Kyrgyz Republic stated that the
restrictions set out in that draft Resolution would co me into force only if the Kyrgyz Republic became a
member of the Customs Union.  The goal of the draft legislation would be to protect electric
transmission and communication lines and ferrous and non-ferrous metal items from theft by personsdesiring to resell those metals to scrap metal processi ng firms.  In the view of the Government of the
Kyrgyz Republic, the measures were justifiable on national security grounds.
78. In response to further questions concerning the reason for the requirement to obtain export
licences for exports of non-ferrous metal and wastes and scrap thereof, the representative of the
Kyrgyz Republic stated that when an application for an export licence was received, the
Kyrgyz Republic reviewed the prices of the products  to be exported.  While the export licences were not
refused on the basis of low prices, recommendations were made to the applicant to ensure that prices
were comparable to world market prices.  He c onfirmed that no sanctions were imposed on exporters
who continue to export these products that were c onsidered to be below world market prices. The
Kyrgyz Government did not consider the export of these products at low prices in its decision to grant or
renew an enterprise's licence to purchase or sell fr agments and waste of non-ferrous and ferrous metals.
Some members of the Working Party remained concerne d that the export licensing regime applied to the
items listed in paragraph 76 above could be discreti onary, and be employed to protect domestic industry.
79. The representative of the Kyrgyz Republic stated that the Kyrgyz Republic would ensure that its
system of export licensing was in conformity with  the requirements of Article XI of the GATT 1994 as
from the date of accession.  The Working Party took note of this commitment.WT/ACC/KGZ/26
Page 34
- Export subsidies
80. In response to questions, the representative of the Kyrgyz Republic stated that the
Kyrgyz Republic had no policies or measures to finance exports.  Certain limited export promotion
programmes were maintained.  The Kyrgyz Republic imposed no export performance requirements.
Drawback on goods imported for completion, assembly , or processing for re-export must be claimed
within a time limit set by the State Customs Inspect orate and the processed goods must be exported
within two years after the importation of the concerne d items.   He further added that the Customs Code
also exempted from duties and taxes goods re-exporte d within six months of importation.  If the goods
were not re-exported within six months, customs dutie s, taxes and interest were collected on the goods.
81. Some Working Party members noted that the 1991 Foreign Investment Law granted profit tax
exemptions for Kyrgyz legal entities for two to five years based on foreign participation, depending on
the nature of its activity.  After the expiration of the profits tax exemption, varying reductions in the
applicable profits tax are provided for under certain circumstances, including a 25 per cent reduction ifat least 50 per cent of the entity's production is expor ted.  In addition, the Directorate of the Bishkek
Free Economic Zone (Information Bulletin No. 2) pr ovides exemptions from lease payments for up to
15 years for establishments which (i)  are engaged in export-oriented and import substitution production
activities;  (ii)  use domestic raw materials and spare parts;  and (iii)  employ a certain number of people
per year.  In addition, export-oriented production is exempt from quantitative restrictions.  Some
Working Party members sought a commitment from th e Kyrgyz Republic to eliminate these measures,
which constituted prohibited subsidies within the meaning of Article 3 of the WTO Agreement on
Subsidies and Countervailing Measures.
82. In response to further questions, the representa tive of the Kyrgyz Republic stated that certain
lease payment provisions of the Bishkek Free Economic Zone provide an incentive for importsubstitution and exportation.  However, the representa tive of the Kyrgyz Republic stated that there were
no explicit restrictions on the sourcing of impor ts for production in the free economic zones.  An
enterprise (i) was not prohibited or limited in its ability  to import products used in or related to its local
production and (ii) was not required to use local produ cts as input for its production.   Some members of
the Working Party stated that the tax incentives based on export performance provided by Article 24 of
the previous Foreign Investment Law of June 1991 should be eliminated prior to accession to the WTO.
In response, the representative of the Kyrgyz Repub lic stated that the new Foreign Investment Law of
September 1997  did not provide any tax incentives.  He added that the new foreign investment law
provided that the tax incentives based on export pe rformance provided by Article 24 of the previous
Foreign Investment Law of June 1991 could no long er be offered to new investors in the Kyrgyz
Republic.  Firms that had been granted the benefit of those tax incentives based on export performance
provided by Article 24 of the previous Foreign Inve stment Law of June 1991 could continue to use them
until the expiration of their period of validity.  Any a ttempt to terminate those incentives prior to their
expiration would cause significant problems for exis ting foreign investors.  He confirmed that his
Government did not intend to apply an y export subsidies to industrial goods.
83. The representative of the Kyrgyz Republic st ated that the lease payment exemption for
export-oriented and import substitution production pr ovided for the Bishkek Free Economic Zone and
other such free zones which could be considered to  conflict with the requirements of the Agreement on
Subsidies and Countervailing Measures would be el iminated by 31 December 2002.  He further stated
that the Regulations No. 376 On the Amendments to  Certain Decisions of th e Government, which will
have the effect of prohibiting any and all such  export performance and import substitution incentives
within free economic zones,  in conformity with the requirements of the Agreement on Subsidies and
Countervailing Measures had been adopted and impl emented as of 23 June 1998, prior to the Kyrgyz
Republic's date of  accession.  The Workin g Party took note of these commitments.WT/ACC/KGZ/26
Page 35
84. The representative of the Kyrgyz Republic confirmed that no government or public body within
the territory of the Kyrgyz Republic provides an y other subsidy which was inconsistent with the
provisions of Article 3 of the Agreement on Subsidie s and Countervailing Measures.  He stated that his
Government would terminate, by 31 December 2002, all incentives granted under prior foreign
investment laws which had retained their validity fo llowing enactment of the Foreign Investment Law of
September 1997.  The Working Party took note of these commitments.
- Internal Policies Affecting Trade in Goods
- Industrial policy, including subsidies
85. In response to requests for information, the repres entative of the Kyrgyz Republic stated that the
Government had a general policy to create a broad-based market economy and to privatize all
government-owned commercial enterprises and assets.  The Government also had a general policy to
attract foreign investment into the country and to  involve, as far as possible, foreign investors,
technology and know-how in all sectors of the econom y for the purpose of furthering the creation of a
broad-based market economy and the privatization of government-owned commercial enterprises and
assets.   The Government did not intend to maintain any policies which would distort trade;  nor protect
any industry, market or business entity.
86. Some members of the Working Party asked whether the Kyrgyz Republic would maintain
subsidies prohibited by Article 3 of the Subsidies and Countervailing Measures Agreement upon itsaccession to the WTO and whether it would have recourse to Article 29 of the same Agreement to
justify such subsidies.  In response, the represen tative of the Kyrgyz Republic stated that, excepting
other subsidies described above, the only subsidies had been certain tax exemptions provided by the
Foreign Investment Law of 1991.  The new foreign investment law which eliminated tax exemptions
based on export performance had been adopted in September 1997.
- Technical Barriers to Trade
87. In response to requests for information, the representative of the Kyrgyz Republic stated that
standards and certification requirements in the Kyrgyz  Republic were not intended to distort or establish
technical barriers or to disrupt trade.  The object of  such standards and certification requirements were to
(i) ensure the safety and/or quality of goods, works and services, (ii) to protect the environment and the
health, life, work and property of citizens, (iii) to  ensure uniformity of measurement and the technical
compatibility and interchangeability of products;  and (iv) to preserve all types of resources.  Both
domestic-origin and foreign-origin goods were equally subject to the same requirements on standards
and certification.    Importers of goods subject  to  obligatory certification of conformity with national
safety requirements and other technical requirements were required to present a certificate at the border
stating that the goods met the applicable requireme nts, along with the import declaration and other
supporting documents.  If an international agreement to which the Kyrgyz Republic is a party provides
for other rules other than those stipulated by the legislation of the Kyrgyz Republic on standardization
then the rules of the interna tional agreement would prevail.
88. The representative of the Kyrgyz Republic added that the State Directorate on Standardization
and Metrology under the Cabinet of Ministers (Kyrgyzstandard) was the agency responsible for
developing, realizing and administering the Ky rgyz Republic’s policy on technical regulations,
standards and certification requirements.  The Cabinet of Ministers Resolution No. 260 of
28 April 1994, as amended by Resolution No.146 of 5 April 1996, listed seven general product
categories that require certification prior to sale, wit hout regard to the origin of the concerned products.
For health-related products, sanitary/hygiene test results  were used as the basis for granting the
certificate of compliance.  Kyrgyzstandard was responsible for accrediting certification and testing
bodies.  As of 1 January 1998, there were 11 accredited certifying bodies and 19 accredited testingWT/ACC/KGZ/26
Page 36
laboratories in the Kyrgyz Republic.  In addition, th e four regional branches of Kyrgyzstandard were
also authorized to conduct certification procedures .  In accordance with the Agreement On a Uniform
Policy on Standardization, Metrology and Certifi cation, which was executed by all CIS countries,
Kyrgyzstandard accepted certificates issued by an y accredited institution of Armenia, Azerbaijan,
Belarus, Georgia, Kazakstan, Moldova, the Ru ssian Federation, Tajikistan, Turkmenistan and
Uzbekistan.  He further added that it was possible fo r foreign companies to be accredited as certification
bodies or testing laboratories by Kyrgyzstandard;  however, no such companies had yet applied. The
requirements for accreditation and the procedures to be followed were the same for both domestic and
foreign certification bodies.  In response to requests for further information, the representative of the
Kyrgyz Republic stated that the Law "On Prot ection of Consumers’ Rights", set mandatory
requirements for products which posed a substantial pot ential threat to the environment or the safety,
lives and/or health of citizens.  Kyrgyzstandard would issue a certificate of compliance and a licence to
mark the concerned goods with a "mark of complia nce.”  Sale or import of such goods in the
Kyrgyz Republic without such prior certification and marking was prohibited.  Goods imported for
personal use did not require certification.  Other requirements (indications) were voluntary.  Goods
subject to voluntary certification could be certified on the basis of an agreement between the applicant
and Kyrgyzstandard.  Voluntary certification could also be performed by any body authorized by
Kyrgyzstandard to do so.  The met hod of voluntary certification was c hosen by the applicant from those
accepted by Kyrgyzstandard.   In response to reque sts for information on the process for obtaining a
certificate and mark of compliance the representative of the Kyrgyz Republic stated that the issuance of
a certificate and mark of compliance required:  (i ) the filing of an applic ation with the responsible
ministry or State body;  (ii) a review of the appl ication, including the choi ce of certification method;
(iii) the identification and selection of samples and thei r testing;  (iv) a review of the test results and a
comparison with the applicable standards;  and (v ) the issuance of a certificate of compliance and a
licence to use the mark of compliance.  It was generally possible for the certifying body to accept the
declaration of a manufacturer or producer, but the acceptance of a declaration was subject to the
discretion of the Ministry or Stat e body responsible for certifying the compliance of the goods.  Pursuant
to document KMS40.03-97 "System of Certification Ky rg. St. Procedure for Certification of Products",
the certifying body would accept manufactur ers' declarations of compliance.
89. In response to requests for information on the bringing of standards used in the
Kyrgyz Republic into compliance generally accepted in ternational standards, the representative of the
Kyrgyz Republic stated that Kyrgyzstandard was cu rrently a corresponding member of the International
Standards Organization (ISO).  The Kyrgyz Republic was in the process of moving from the use ofGOST-standards to the use of international standards.  The Kyrgyz Republic was a member of the CIS
Inter-Governmental Council on Standardization, Metr ology and Certification, which was recognized by
ISO as a regional organization moving towards even tual implementation and usage of international
standards.  A timetable for the change-over had not been finalised.  The Kyrgyz Republic had also
adopted over 120 standards of the International El ectrotechnical Commission (IEC).  The acceptance of
certificates issued by foreign certification bodies was generally dependent on the existence of a bilateral
or multilateral agreement on the matter.  The Govern ment was currently in the process of negotiating
bilateral agreements on standards with Austria, th e People’s Republic of China, Germany, India, Iran
and Turkey.
90. The representative of the Kyrgyz Republic further added that accreditation of a certification and
testing organization was performed by Kyrgyzstanda rd and other State bodies authorized to conduct
mandatory certification within their area of co mpetence (for example, the Kyrgyz Ministry of
Construction and Architecture was responsible for cert ifying the compliance of construction materials).
An applicant must provide Kyrgyzstandard with its organizational documents, the desired scope of
accreditation, a brief description of its legal status, as well as a description of its organizational structure.
An organization applying for an accreditation mus t:  (i) be independent and unbiased; and (ii) be
sufficiently competent, i.e. possess sufficient means, qualified professionals, etc.WT/ACC/KGZ/26
Page 37
91. In response to requests for information on the fee structure for certificates, the representative of
the Kyrgyz Republic stated that the Kyrgyz Republic had conducted a detailed assessment of all fees
connected with issuance of certificates (including the certificate of compliance, certificate of origin,
phytosanitary certificate, and veterinary certificate ) to determine whether or not such fees were in
conformity with the WTO requirements, especia lly Article VIII of the GATT 1994.  He provided
detailed analysis supporting the following report:
- Phytosanitary Certificate:  the current costs of  issuing a Phytosanitary Certificate (minimum fee
som 70, maximum fee som 223) exceeded the fee currently charged (minimum fee som 36,
maximum fee som 265) for such a certificate.  Accordingly, the Kyrgyz Republic considered
that the current fee structure was in full conform ity with Article VIII.  In response to requests by
some members of the Working Party, the Kyrgyz Republic provided the list of goods (using HS
Code) subject to Phytosanitary Certificates along  with the fees charged for each category.  This
certificate was issued by the Ministry of Agriculture;
- Veterinary Certificate:  the currents costs of  issuing the Veterinary Certificate (minimum
fee som 250, maximum som 3,272) exceeded the fee currently charged (minimum fee som 30,
maximum fee som 500) for such a certificate.  Accordingly, the Kyrgyz Republic considered
that the current fee structure was in full conform ity with Article VIII.  In response to requests by
members of the Working Party, the Kyrgyz Republic provided the list of goods (usingHS Code) subject to Veterinary Certificates.  This certificate was issued by the Ministry of
Agriculture;
- Certificate of Origin:  currently the following fees are charged for obtaining the certificate of
origin:  (a)  CIS countries - som 100 for natural persons and som 300 for legal entities;  and
(b)  non-CIS countries - som 200 for natural persons and som 400 for legal entities.  The KyrgyzRepublic recognized that the fee structure was in violation of Article I and Article VIII of the
GATT 1994.  The representative of the Kyrgyz Republic stated that, as of the date of accession
to the WTO, the fee for issuing the certificate  of origin would be som 400 (reflecting the
approximate cost of issuing a certificate of origin) for all legal and natural persons in conformity
with Article I of the GATT 1994.  This certificat e was issued by the Chamber of Commerce and
Industry Regulations to bring this fee into conformity with the requirements of the WTO
Agreement  entered into force on June 20 1998 (No. 368 of 1998);
- Certificate of Compliance:  the current cost for the Certificate of Compliance ranges from
approximately US$50 to US$1,390 depending on the ty pe of products and required tests.  The
representative of the Kyrgyz Republic provided detailed information of various schemes fortesting and the cost of using different schemes.  The Kyrgyz Republic considered that the
current cost of issuing the Certificate of Complia nce was in conformity with Article VIII of the
GATT 1994 and reflected the cost of services rendered.  In response to requests by some
Working Party members, the Kyrgyz Republic pr ovided a list (using HS Code) of all goods
requiring a Certificate of Compliance);
92. Some members of the Working Party asked whether any difficulties were foreseen in the
application of the Agreement on Technical Barriers to Trade upon accession.  In response, therepresentative of the Kyrgyz Republic stated that the Kyrgyz Republic does not foresee difficulties in
the application of the TBT Agreement.  He noted that , at present, draft standards, technical regulations,
and conformity assessment procedures were not pub lished for public comment.  There were at present
no formal notice requirements, although within the CI S, regulations have been developed that operate
like notice provisions.  The Law on Standardization and the Law on Certification were being amended
to meet the TBT requirements for publication of draft standards and technical regulations.
Kyrgyzstandard published a quarterly periodical en titled the Information Bulletin of Kyrgyzstandard
where such notices will be published.  Under Resolution No. 12  of 6 January 1997 the Cabinet ofWT/ACC/KGZ/26
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Ministers of the Kyrgyz Republic officially establis hed the Information Centre of the State Inspectorate
on Standardization and Metrology (Kyrgyzstandard) as the Inquiry Point for standards and sanitary and
phytosanitary measures in the Kyrgyz Republic.  This Inquiry Point met WTO requirements, it
contained all adopted and proposed standards and conformity assessment procedures and information
concerning the membership and participation of the Kyrgyz Republic in regional and international
standardizing bodies as well as in bilateral and mu ltilateral arrangements.  The Inquiry Point received
questions and sent responses by telephone, mail, fax and e-mail.  Kyrgyzstandard had hired employees,
fluent in Russian and English, who would receive a nd transmit information in English.  To the extent
that resources allowed, Kyrgyzstandard would  par ticipate in international standards activities.  The
Kyrgyz Republic was a corresponding member of th e ISO.  It was also a member of the CIS
Inter-Governmental Council on Standardization, Metrology and Certification.  This body was
recognized by the ISO as a regional organization moving towards the eventual implementation and
usage of international standards.
93. The representative of the Kyrgyz Republic stated that the Law on Making Amendments and
Supplements to Certain Legislative Acts which was fully consistent with the WTO Agreement on
Technical Barriers to Trade  had been adopted on 8 June 1998.   The Law on Certification had been
implemented on 17 June 1998.
94. The representative of the Kyrgyz Republic stat ed that his Government would apply the WTO
Agreement on Technical Barriers to Trade from the date of accession without recourse to any transition
period.  He further confirmed that, in particular, the Kyrgyz Republic would apply the same controls,
criteria, and rules regarding technical regulations, standards, certification, and labelling requirements to
imported and domestic goods, and would not use such  regulations to restrict imports.  The Kyrgyz
Republic would ensure that its technical regulations, standards, certification and labelling requirements
are not applied to imports in an arbitrary manner, in  a way that discriminates between supplier countries
where the same conditions apply or as a disguised restriction on international trade, and would also
ensure that from the date of accession its criteria for granting licenses or securing required certification
for imported products will be published and availabl e to traders, and that its sanitary and other
certification requirements are administered in a transparent and expeditious manner.  The Kyrgyz
Republic would be willing to consult with WTO Memb ers concerning the effect of these requirements
on their trade with a view to resolving specific problems.  The Working Party took note of these
commitments.
- Sanitary and phytosanitary measures
95. The representative of the Kyrgyz Republic stat ed that it was the policy of the Government to
develop and maintain sanitary standards solely for the purpose of  protecting the health of human,
animal and plant life and not for the purpose of crea ting technical barriers to foreign products or for
protecting domestic producers.  Development of sanitary standards was the responsibility of several
technical committees in cooperation with the Ministry of Health. The consent of the Ministry of Health
was required before Kyrgyzstandard could issue any standard constituting a sanitary measure.  He
further explained that Cabinet of Ministers Resolution No. 260 of 28 April 1994, as amended by
Resolution No. 146 of 5 April 1996, listed seven gene ral product categories that require certification
prior to sale, without regard to  the origin of the concerned products. All covered products required
certification of safety indicators, sanitary and en vironmental reasons.  For health-related products,
sanitary/hygiene test results were used as the basi s for granting the certificate of compliance.  Product
categories subject to sanitary measures were included in this list.  Any  accredited certification body
could certify a product as being in conformity with the applicable sanitary requirements if the required
sanitary/hygiene tests had been performed by a compet ent testing laboratory and the required test results
obtained.  He provided the Working Party with a lis t of goods subject to phytosanitary and veterinary
certificates together with correspond ing fees in document WT/ACC/KGZ/16.WT/ACC/KGZ/26
Page 39
96. The representative of the Kyrgyz Republic further added that importers of goods subject to
sanitary and/or phytosanitary measures were required to  present a certificate at the border stating that the
goods met the applicable requirements, along with the import declaration and other supporting
documents.  If the container or packaging was damaged, or was not accompanied by the required
documentation, the product could not be cleared through customs.
97. Some members of the Working Party requested information on whether the Kyrgyz Republic’s
procedures for adopting trade measures relating to concerns with human, animal and plant health were
in conformity with the requirements of the SPS Agre ement.  In response, the representative of the
Kyrgyz Republic stated that the appropriate minist ries and State bodies (particularly, the Ministry of
Health, the Ministry of Agriculture and Food, th e Ministry of Environmental Protection, and the
Veterinary-Sanitary Supervisory Office) had reviewed the provisions of the SPS Agreement and had
brought  their respective procedures into conformity with the SPS Agreement.   The amendments to the
Law on Veterinary (implemented on 12 June 1998) and the Law on Plant Quarantine (implemented on
12 June 1998) necessary to implement the provisions of the SPS Agreement were provided to the
Working Party.
98. Some members of the Working Party asked whether proposals for SPS measures were
published in advance, and whether there was an oppor tunity for public comment by interested parties,
both domestic and foreign.  They also asked whether there was a requirement to conduct riskassessments prior to the adoption of SPS measures, including a requirement that such measures be based
on scientific evidence.  In response, the representative of the Kyrgyz Republic said that the Amendments
to the Law on Plant Quarantine and the Law on Vete rinary (both enacted on 2 June 1998) provided that
notifications on draft developed phytosanitary measures significantly affecting trade, if not substantially
the same as international standards, guidelines and recommendations, or if international standards,
guidelines and recommendations do not exist, shall be published at an early stage in such a manner as to
enable interested parties to make their comments and suggestions.  He also stated that draft amendments
to the Law on Plant Quarantine and the Law on Veteri nary require that risk assessments be employed
and that SPS measures be based on scientific evidence.
99. Some members of the Working Party asked whether the sanitary and phytosanitary standards in
the Kyrgyz Republic were in conformity with intern ational standards, in particular those developed by
the Codex Alimentarius Commission, the Internationa l Office of Epizootics, a nd the international and
regional organizations operating within the framework  of the International Plant Protection Convention.
In response, the representative of the Kyrgyz Republic  stated that the appropriate ministries and State
bodies (particularly, the Ministry of Health, the Ministry of Agriculture and Food, the Ministry of
Environmental Protection, and the Veterinary-San itary Supervisory Office) had been conducting
comparisons of their standards with internationa l standards through the Eurasian Organization on
Standardization, and were engaged in the necessary wo rk to ensure the harmonization of their standards
in conformity with the SPS Agreement.
100. The representative of the Kyrgyz Republic said that the Government was currently considering
draft Regulations "On measures for transition to international standards and improving the order of
using technical regulations" which set out the progra m of work required to harmonize Kyrgyz sanitary
and phytosanitary standards with international standards in 1999. The Kyrgyz Republic would report
annually on progress in the work on harmonization until their standards were in conformity with WTO
requirements. The Working Party took note of this commitment.
101. Some members of the Working Party expressed concern that Cabinet of Ministers Resolution
No. 260 required that safety certificates be obtain ed for imports of "agricultural and food industry
products".  They requested details of the scientific evidence or risk assessments upon which Resolution
No. 260 was based.  In response, the representativ e of the Kyrgyz Republic stated that Resolution
No. 260 was based on the evaluation of the possibility  of entry of pests and diseases and potentialWT/ACC/KGZ/26
Page 40
biological consequences. Certific ation requirements for items listed in Resolution No. 260 were based
on scientific studies and were imposed only to the ex tent necessary to protect human life and health and
the environment.
102. The representative of the Kyrgyz Republic stat ed that the Kyrgyz Republic would apply the SPS
Agreement in full upon accession.  He noted that the Law On Amendments to the Law on Veterinary
and the Amendments to the Law on Plant Quarantine  were fully consistent with the SPS Agreement and
were enacted  on 2 June 1998.
103. The representative of the Kyrgyz Republic stated that from the date of accession to the WTO his
Government would apply all its sanitary requirement s consistently with the requirements of the WTO
Agreements on Sanitary and Phytosanitary Measures  and Import Licensing Pro cedures without recourse
to any transitional arrangements.  In particular, he stated that if a decision was taken to require
notification of diseases other than those listed in  OIE Classes A and B, an y such decision would be
taken in conformity with the requirements of the Agreement on Sanitary and Phytosanitary Measures.
He added that the Kyrgyz Republic would not require additional certification or sanitary registration for
products which have been certified as safe for human use and consumption by recognized foreign or
international bodies, and the Kyrgyz Republic would ensure that from the date of accession its criteria
for granting prior authorization or securing the required certification for imported products would be
published and available to traders.  He confirmed that  sanitary and other certification requirements in the
Kyrgyz Republic were administered in a transparen t and expeditious manner, and that his Government
would be willing to consult with WTO Members concerning the effect of these requirements on their
trade with a view to resolving specific problems.  The Working Party took note of these commitments.
- Trade Related Investment Measures (TRIMs)
104. Some members of the Working Party noted th at bids to purchase State owned assets were
scored according to a number of factors,  Include d among the factors considered was the commitment
by the bidder "to maintain certain employment levels".  They asked whether this requirement was
inconsistent with obligations in the TRIMs Agreem ent.  In response, the representative of the
Kyrgyz Republic stated that giving weight to a bidde r’s willingness to make a commitment to maintain a
certain employment level did not contradict the TR IMs Agreement.  There was no trade-related aspect
imposed by the State on the buyer in connection with  this commitment.  The State was currently the
major stock-holder in these entities, and in that ro le could require a potential purchaser to maintain
certain employment levels. Furthermore, a requirement  to maintain employment levels did not mean that
a buyer was required to use only local labour.  Th e requirement was imposed on the buyer for the
purpose of avoiding de-stabilizing simultaneous mass lay-offs during an initial period of transition andmass privatization.  This requirement was phased out within a limited time after the transaction. In his
view nothing in the arrangements violated the TRIMs Agreement.
105. Following questions in relation to the compatibility of certain aspects of the Bishkek Free
Economic Zone with the requirements of the TRIMs Agreement, the representative of the
Kyrgyz Republic stated that the lease payment which required the employment of a certain number of
people per year was not TRIMs inconsistent, because the TRIMs Agreement referred only to products .
The lease payment conditioned on use of domestic raw materials and spare parts could be TRIMsinconsistent and would be eliminated upon accession to the WTO.  The representative of the Kyrgyz
Republic stated that the Amendments to the Re gulations on Free Economic Zones which would be in
conformity with the requirements of the TRI Ms Agreement had been  adopted on 19 June 1998
(No. 368).  By the date of accession to the WTO the Kyrgyz Republic would ensure that the operation of
the free economic zones would be WTO-consistent.WT/ACC/KGZ/26
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106. The representative of the Kyrgyz Republic stated that from the date of accession, the Kyrgyz
Government would not maintain measures that were not in conformity with the Agreement on
Trade-Related Investment Measures.  The Wo rking Party took note of this commitment.
- State-trading practices
107. Some members of the Working Party noted that the Kyrgyz Republic had earlier described
enterprises that enjoyed  natural monopolies.  They asked whether the trade activities of thoseenterprises were State-trading in terms Article XV II of the GATT 1994 of Article VIII of the GATS.  In
response, the representative of the Kyrgyz Republic stated that the Government of the Kyrgyz Republic
had reviewed the operations, legal status and privile ges of the listed natural monopolies to determine
whether they should be notified as State-trading entitie s within the meaning of Article VIII of the GATS
or Article XVII of the GATT.  If the Government determ ined that an entity fell within the definition of a
State-trading enterprise, that entity would be notified as such to the WTO.  At present, the Government
had  examined the following enterprises:
- Management Department of Kyrgyzrailroad (intra-republic passenger and goods
transportation);
- Ministry of Communication (telecomm unication services rendered to public);
- Kyrgyz Energy Holding Company (e lectric power and thermal energy);
- "Kyrgyzgas" (natural and liquefied natural gas);- "Kyrgyzjilkommunsojuz" (thermal energy, water-pipe water and sewage);
- "Kyrgyzalco" (alcohol and alcohol products, other than beer); and
- "Kyrgyztamekesi" (tobacco fermentation, ma nufacture of tobacco products, sale of
fermented tobacco).
He further added that Kyrgyzpharmacia had no role  whatsoever in the issuance of licenses and,
therefore, would not be notified as a State trading company.  Later, the representative of the
Kyrgyz Republic stated that further examination of the State trading sector had revealed that State
trading monopolies currently existed in the alcohol, tobacco, and electrical en ergy sectors: Kyrgyzalco
(de jure ), Kyrgyztamekesi ( de jure ), and Kyrgyz Energy Holding (d e facto).  He added that those
enterprises would be notified to the WTO as State tr ading enterprises.  In response, some members of
the Working Party stated that Kyrgyzaltyn should also  be notified as a state trading enterprise, because
since 1994, that fully State owned enterprise had been the only producer, importer, or exporter of
antimony.  In response, the representative of the Kyrgyz Republic stated that although Kyrgyzaltyn had
been the only, de facto, producer, importer, and exporter of antimony, the Kyrgyz Republic did not
believe that this company fell under the definition of Article XVII of the GATT 1994.  Kyrgyzaltyn didnot have any exclusive or special rights or privile ges in conducting foreign trade.  Any person could
apply for and obtain a license to export antimony.  Licenses were not required for the import of
antimony.
108. Concerning the tobacco sector, Kyrgyztamekesi  was the sole provider of licences for the
production of tobacco products in the Kyrgyz Republic .  Any person could obtain a licence to engage in
the production of tobacco products.  Imported t obacco products were marketed freely in the
Kyrgyz Republic, licenses were not required for the domestic distribution or sale of tobacco products.
109. The representative of the Kyrgyz Republic stated that concerning the alcohol sector, Article 8 of
the Law on Licensing of 3 March 1997 stated that foreign legal entities or individuals, as well as
individuals without citizenship should receive licenses on the same conditions and in the same
procedure as legal entities and individuals of th e Kyrgyz Republic, unless otherwise stipulated by
legislative acts. Currently, no legislative acts stipul ated otherwise for licenses issued by Kyrgyzalco.
Article 18 of the same law permitted license applicants to have judicial appeal.  Any MFN or national
treatment (Article III) violations may be appealed to the court by license applicants.  Policy decisions
with respect to any quantitative restrictions and pr ohibitions are made by the Government and not byWT/ACC/KGZ/26
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Kyrgyzalco.  The Kyrgyz Republic commits to ensure that the operations of Kyrgyzalco in the issuance
of import and export licenses for alcohol and alcoholic  products are administered in a manner consistent
with WTO requirements.
110. Concerning the energy sectors, there were no prohibitions by the government on the export of
oil products, natural gas, and liquefied gas.  Currently, there were no firms (including
Kyrgyzgasmunaizat) engaged in the exportation of oil products, natural, and liquefied gas, due to high
domestic demand and insufficient supply.  There were five privately-owned companies engaged in the
importation of oil products: Lukoil Kyrgyzstan, Tyan-Sha n Oil, Sato Petroleum, Datka, and Ekooil.  In
addition to Kyrgyzgasmunaizat which imported approximately 50 per cent of the natural gas and
liquefied gas to the Kyrgyz Republic, a number of State companies (e.g. Kadamjai Antimony Group,
Maili Suu Lamp Plant) were currently importing na tural gas to meet their own demand.  These State
companies had their own contracts with Uzbekist an for importing natural gas and had a commercial
contracts with Kyrgyzgasmunaizat to transport gas from Uzbekistan to the Kyrgyz Republic.
111. Some members of the Working Party requested further information on trade in the electrical
energy sector.  These members welcomed th e recognition that although there were no de jure  barriers to
trade in electrical energy in the Kyrgyz Republic, there was a de facto monopoly in the hands of the
Kyrgyz Energy Holding Company.  In response, th e representative of the Kyrgyz Republic stated that
the production and sale of the electrical energy was ca rried out by Kyrgyz Energy Holding.  There were
no regulatory barriers to entry.  Any person coul d apply for a licence for the generation, transmission,
distribution, and sale of electrical energy.  The draf t regulations outlining the procedures, criteria, and
requirements for obtaining such licences were curr ently being developed in accordance with the Law on
Licensing of 3 March 1997.  He noted that no applications for such licences had been submitted to the
Licensor (the "State Energy Agency under the Cabinet of Ministers").  He a dded that electrical power
was equally available to all firms and individuals in  the Kyrgyz Republic.  In general, the rates for
households were lower than the rates for legal persons.  There was no difference in the rates charged to
(1) a legal person (without foreign ownership), (2) a legal person (fully or partially foreign-owned), and
(3) a representative or branch office.   Export pri ces of bartered electrical energy established with
Uzbekistan and Kazakstan were negotiated on annual basis and depended upon the traded volume andconditions of the inter-governmental agreement.  The volume and the commercial value of bartered
goods were considered during negotiation.
112. Some members of the Working Party requested that the Kyrgyz Republic undertake a
commitment  that, upon accession to the WTO, all Stat e trading enterprises would be eliminated.   In
response, the representative of the Kyrgyz Re public stated that Article XVII of the GATT 1994
authorized State trading activities.  The Kyrgyz Republic was not prepared to undertake a commitment
that State trading would be abolishe d in the alcohol and tobacco sectors.
113. The representative of the Kyrgyz Republic conf irmed that his Governme nt would apply its laws
and regulations governing the trading activities of State-owned enterprises and other enterprises with
special or exclusive privileges, as noted  in paragra ph 107 of this Report, in conformity with the relevant
provisions of the WTO Agreement, and woul d abide by the provisions for notification,
non-discrimination, and the applicati on of commercial considerations for trade transactions for any
enterprise whose activities were subject to Article XVII of the GATT 1994, the WTO Understanding on
that Article, and Article VIII of the GATS.  He fu rther confirmed that the Kyrgyz Republic would notify
any enterprise falling within the scope of Article XVII at the time of accession.  The Working Party took
note of these commitments.
- Free zones
114. In response to requests for information on free zones operating in the Kyrgyz Republic, the
representative of the Kyrgyz Republic stated that existing legislation and the Customs Code authorizedWT/ACC/KGZ/26
Page 43
the establishment of free economic zones, which offered special customs, tax, labour relations and
procedural benefits to enterprise s locating within such a zone.  E ach free economic zone was required to
be established by an act of Parliament.  Specific benefits included:  (i) exemption from the imposition of
customs duties and other payments on foreign-origin goods entered into such a zone and intended for
reexport;  (ii) simplified border clearances;  (iii) abolition of non-tariff restrictions on import and export;
(iv) exemption from all taxes and charges (however, entities were required to pay the GeneralDirectorate an annual fee of 0.1 - 2 per cent of the proceeds generated from the sale of goods and
services);  (v) collective labour agreement and indi vidual contracts;  (vi) free circulation and use of
foreign currency, including payments between lega l entities and natural persons in the zone;  and
(vii) simplified entrance, departure and salary transfer  abroad for foreign citizens.  Four economic zones
had been created by law, but only the Bishkek zone was operational.  In response to that information,
some members of the Working Party asked whether or not any free or free economic zones established
in the future would be fully consistent with all WTO obligations relating to free and free economiczones.
115. The representative of the Kyrgyz Republic stated that the free zones and special economic zones
authorized by the legislation described in paragraph 114 above were fully subject to the coverage of the
commitments of the Kyrgyz Republic in its Protocol  of Accession to the WTO Agreement and that the
Kyrgyz Republic would ensure enforcement of its WTO obligations in those zones.  In this regard, he
confirmed that the Regulations on the Amendments to Certain Decisions of the Government had been
adopted and implemented from 23 June 1998 by the date of accession to the WTO.  In addition, goods
produced in these zones under tax and tariff provisi ons that exempt imports and imported inputs from
tariffs and certain taxes would be subject to normal  customs formalities when entering the rest of the
Kyrgyz Republic, including the application of tariffs and taxes.  The Working Party took note of these
commitments.
- Government procurement
116. In response to requests for information, the repr esentative of the Kyrgyz Republic stated that in
the past there was no specific law regulating governme nt procurement practices.  Each branch, ministry,
agency, or other governmental body was free to u tilize whatever method it desired to acquire required
goods and services.  Open competitive bidding was not required.  Details of Government purchasing in
recent years were provided to the Working Party in Tables 1-29 and 1-30 of Annex 1 of document
WT/ACC/KGZ/3.  He further added that as part of the reform process, the Law on State Procurement
was adopted by the Parliament of the Kyrgyz  Republic on 15 April 1997, enacted on 13 May 1997, and
came into force on 1 June 1997.
117. In response to requests for information on the purchasing process under the  law on government
procurement, the representative of the Kyrgyz Republic stated that the law was based on the
UNCITRAL Model Law on Procurement and  required th at procedures and criteria for the evaluation of
bids be set forth in the solicitation documents issued  for each procurement.  The  law required procuring
entities to act in strict accordance with the applicable solicitation documents.  Price, subject to any
margin of preference applied pursuant to the law, was the only criterion unless the solicitation
documents stated that the award will be based on ot her objective and quantifiable criteria. Alternative
criteria must be specified in advance in the so licitation documents.  The State Procurement Agency
under the Cabinet of Ministers was established a ccording to Presidential Decree No. 31 of 29 January
1997. This new central agency would control the appli cation of the legal system, supervise the decisions
of all purchasing organizations, monitor infringements of public law and settle di sputes.  Disputes could
be pursued in the economic Court system; however, j udicial redress was generally  available only after
the exhaustion of administrative remedies. He not ed, however, that the following matters were not
subject to judicial review:WT/ACC/KGZ/26
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- the selection of the method of procurement;
- the choice of a selection procedure;
- the limitation of procurement proceedings on the basis of nationality;
- a decision by the procuring entity to reject all tenders, proposals, offers, or quotations;
- a refusal by the procuring entity to respond to  an expression of interest to participate in
request-for-proposal proceedings; and
- an omission of reference to laws and regulations in the solicitation documents.
118. In response to questions concerning whether procurement proceedings could be limited to
domestic suppliers, the representative of the Kyrgyz  Republic stated that Article 3(1) of the Law on
State Procurement of Goods, Cons truction and Services permitted the Procuring Entity to exclude
foreign suppliers from participation in the tender pro cess.  If foreign suppliers were included in the
tender process, the Procuring Entity could not discriminate between or exclude different foreign
suppliers of goods, works and services on the basis of nationality.  If foreign suppliers were included inthe tender process, consideration of their bids was required to be undertaken on the same basis as
domestic suppliers, as provided in Article 3(6) of  the Law on State Procurem ent of Goods, Construction
and Services .
119. Some members of the Working Party asked that as part of its protocol accession commitments,
the Kyrgyz Republic accede to the Government Pr ocurement Agreement (GPA) and submit a schedule
of commitments to the GPA Committee to initiate ne gotiations no later than three months after the date
of accession to the WTO.
120. The representative of the Kyrgyz Republic stated that the Kyrgyz Republic would initiate
negotiations for membership in the Government  Procurement Agreement upon accession by tabling an
entity offer at that time.  He also confirmed that, if the results of the negotiations were satisfactory to the
Kyrgyz Republic and the signatories of the Ag reement, the Kyrgyz Republic would complete
negotiations for membership in the Agreement by 31 December 1999.  The Working Party took note of
this commitment.
- Trade in civil aircraft
121. Some members of the Working Party sought a commitment from the Kyrgyz Republic that it
adhere to the WTO Agreement on Trade in Civil Aircraft at the time of accession.  In response, the
representative of the Kyrgyz Republic stated that hi s Government would consider the issue of joining
the Plurilateral Trade Agreement on Trad e in Civil Aircraft from 1 January 1999.
122. The representative of the Kyrgyz Republic confirmed that his Government would become
signatory to the Agreement on Trade in Civil Airc raft on terms and conditions acceptable to it and the
other parties to that Agreement within a reasonable period of time, but in no case later than the date on
which it accords duty free treatment on the products covered by the Agreement to another country which
has also become signatory to the Agreement.  The Working Party took note of this commitment.
-T r a n s i t
123. The representative of the Kyrgyz Republic stated that under the Customs Code, goods in transit
through the territory of the Kyrgyz Republic were required to be declared to the State Customs
Inspectorate  ("SCI") at the point of entry.  U pon release from the entry point, the goods could move
freely through the customs territory of the Kyrgyz  Republic.  No payment of duties or taxes was
required on goods in transit.  Goods classified as "g oods in transit," were required to remain unchanged
except for normal wear and tear and should not be  used for any economic purpose.  The goods were
required to be transported to their customs destinati on according to the routes and directions established
by the SCI.  If  the goods were not presented to th e SCI at the point of exit within a reasonable time, theWT/ACC/KGZ/26
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carrier was responsible for the payment of all duties a nd taxes due as if the goods had been released into
free circulation (the carrier may also be assessed an administrative penalty), unless the goods can be
proved to have been exported, destroyed, or lost as a consequence of an accident or force majeure event.
- Policies Affecting Trade in Agricultural Products
- Imports - description of the types of border protection maintained
124. In response to requests for information, the representative of the Kyrgyz Republic stated that
agricultural products were not subject to import licensi ng, or other restrictions such as quotas.  Certain
categories of agricultural products, specified in the list approved by Cabinet of Ministers Resolution No.
260 of 28 April 1994 were subject to certification, the purpose of which was to protect the health of
Kyrgyz citizens by restricting the importation of poor quality products and raw material.  Imported
agricultural products were subject to rates of duty not exceeding ten per cent.
-E x p o r t s
125. He further added that no licence was required to export agricultural products.  There were no
export tariffs, quotas, restrictions or prohibitions on the export of agricultural products.  No export
credits, export credit guarantees, export credit insura nce, or other financial support or assistance was
available for agricultural exports.
- Internal policies - i.e. description of and the budgetary expenditure and any
revenue foregone involved in each of the domestic support measures in place
126. In response to requests for information, the representative of the Kyrgyz Republic stated that
one of the basic aims of the Kyrgyz Republic’s polic y in agriculture was to ensure the stability and
growth of the supply of agricultural products to the domestic market.  The Kyrgyz Republic was
therefore pursuing a process of de-collectivization, reorganization and privatization of  agricultural
enterprises.  Agricultural prices had been liberaliz ed.  From the end of 1995, all direct State financial
support payments to all agricultural enterprises, had ceased - with the exception of 6 special animal
breeding and 26 seed producing farms.  He further noted however, that due to a lack of funds, even
those enterprises did not receive regular financial suppo rt from the State.  In partial replacement of direct
State financial support, funds loaned to the Governme nt of the Kyrgyz Republic by various international
organizations and institutions were being used by  the Government to provide low-interest credit
facilities to agricultural enterprises to enable them to  make purchases of key inputs, e.g., seeds, fertilizer,
equipment, etc.  The loans had annual interest rates of between 7 per cent and 12 per cent.  The
follow-on loans to the agricultural en terprises had rates of between 1 per cent and 5 per cent.  In this
connection he noted that annual interest rates char ged by private commercial lenders, currently ranged
between 50 per cent and 60 per cent.
127. In response to this information, some members of the Working Party asked whether the average
tariff rate for agricultural products under the ne w tariff regime would exceed the existing 10 per cent
average rate.  In response, the representative of the Kyrgyz Republic stated that the average tariff rate for
agricultural products under the proposed tariff regime would remain at about 10 per cent.
128. Some members of the Working Party asked whether the Kyrgyz Republic would enter a
commitment to not require licences for export of ag ricultural products and to not impose tariffs or quotas
on the export of agricultural products.  In response, th e representative of the Kyrgyz Republic stated that
the Kyrgyz Republic would bind its existing policies of  not requiring licences for export of agricultural
products and not imposing tariffs or quotas on the export of agricultural products, except in accordance
with WTO Agreements.WT/ACC/KGZ/26
Page 46
129. The representative of the Kyrgyz Republic provided information on domestic support and
export subsidies in documents WT/ACC/SPEC/KG Z/1/Rev.1 and WT/ACC/SPE C/KGZ/14.  He stated
that the Kyrgyz Republic would bind export subsidies at zero for agricultural products.
130. Some members of the Working Party asked whether the direct State financial support payments
to the special animal breeding and seed producing fa rms would be stopped in the future.  In response,
the representative of the Kyrgyz Republic stated th at due to a lack of financial resources, the State
currently provided no support to the above-menti oned farms. Breeding farms engaged in raising
pedigree horses had been able to cover their costs without State assistance, but farms for the production
of seeds were supported by the European Commissi on on Technical Issues.  The assistance rendered in
1995 was an estimated som 15-20 million.  In 1997 assi stance for such farms was provided for in a
government programme for sheep breeding.
131. The Kyrgyz Republic's commitments on agricultural tariffs, on domestic support and export
subsidies for agricultural products are reproduced in Part I of the Schedule of Concessions and
Commitments of the Annex to the Protocol of  Accession of the Kyrgyz Republic to the WTO.
- Textiles regime
132. In response to requests for information on textile products, the representative of the
Kyrgyz Republic stated that imported textile products  were subject to rates of duty ranging from 0 to
30 per cent, and that textile products for children mu st comply with the app licable safety standards.
This certification requirement was establishe d by Cabinet of Ministers Resolution No. 520 of
2 December 1995 and applied equally to locally produced children’s textiles.  The export of textile
products was only to an Agreement between the Kyrgyz Republic and the European Communities on
Trade in Textile Products (the EC Textile Agreement) imposing a quota on Kyrgyz-origin textiles into
the European Communities.  The EC Textile Agreem ent provided that the quotas did not take effect
until 1 January 1997.  According to the EC Textile Agreement, the Kyrgyz Republic could export
textiles to the European Communities according to the following quotas (established as percentages of
the total imports of such goods into the Eu ropean Communities during the previous year):
- 0.35 per cent for category I goods;
- 1.20 per cent for category II goods;  and- 4.00 per cent for category III, IV and V goods.
VI. TRADE-RELATED INTELLECTUAL PROPERTY REGIME (TRIPS)
1. General
(a) Intellectual property policy
133. The representative of the Kyrgyz Republic stated that the intellectual property system of the
Kyrgyz Republic was still undergoing a transition from the system inherited from the former
Soviet Union.  It was the policy of the Government to put into place a system of intellectual property
protection modelled on the systems found in develope d market economy countries.  In pursuit of this
policy the Kyrgyz Republic has adopted (i) Part 2 of the Civil Code, (adopted 5 December 1997,
effective 1 March 1998) containing provisions esta blishing basic intellectual property rights and
protection, (ii) the Patent Law (adopted 16 Decembe r 1997, effective 4 February 1998), (iii) the Law on
Copyright and Related Rights (adopted 16 December 1997, effective 23 January 1998), (iv) the Law onTrademarks, Service Marks and Appellations of Pl aces of Origin of Goods (adopted 16 December 1997,
effective 28 January 1998).  In addition, separate laws covering:  integrated circuits, software and
databases, selective breeding achievements and the la w on commercial secrets ha d been adopted by the
Parliament.  The Anti-Monopoly law enacted on 15 Ap ril 1994 contained provisions regarding unfairWT/ACC/KGZ/26
Page 47
competition as well as the misappropriation of intellectual property.  The Criminal Code (Section on
Intellectual Property) entered into force 1 Janu ary 1998;  the Law on PC, Software Programs, and
Databases entered into force on 4 April 1998, the Law on Integrated Circuits entered into force on 10
April 1998 , and the Law on Commercial secrets en tered into force on April 10 1998 .  The Law on
Legal Protection of Breeding Achievements had ente red into force on 1 July 1998.  He further added
that in preparing those laws, the Kyrgyz Republic had taken into account the requirements of the TRIPS
Agreement.  The representative of the Kyrgyz Republic  stated that Part 2 of the Civil Code  had come
into force 1 March 1998, and includes Chapter V - Inte llectual Property, which complies with the TRIPS
Agreement requirements.
134. Some members of the Working Party said that the Kyrgyz Republic should enter a commitment
to apply fully the TRIPS Agreement by the date of its accession to the WTO.
(b) Responsible agencies for policy formulation and implementation
135. In response to requests for further information, the representative of the Kyrgyz Republic stated
that on 4 March 1996, the President issued a decree, which established a central intellectual property
agency, the  State Agency for Intellectual Property (also known as Kyrgyzpatent).  This agency was
responsible for the registration of patents, tradem arks, industrial designs, copyrights and associated
rights and breeding achievements (i.e. new varietie s of  plants and new breeds of animals).  The
Anti-monopoly Department within the Ministry of Finance was responsible for the administration andenforcement of the Anti-monopoly Law, which, at  section 5, prohibited "unscrupulous competition",
defined as  including  the unauthorized use of tr ademarks, trade dress and confidential/proprietary
business information.
(c) Membership of international intellectual property conventions
136. The representative of the Kyrgyz Republic stated that as of 20 February 1998 the Kyrgyz
Republic was a member of the following multilateral treaties, agreements and conventions:
- Convention Establishing the World Inte llectual Property Organization (WIPO):
- Paris Convention for the Protection of Industr ial Property, (signed by the Kyrgyz Republic
Prime-Minister 6 January 1994, deposit ed with WIPO 14 February 1994);
- Madrid Agreement Concerning the Internati onal Registration of Marks, (signed by the
Kyrgyz Republic Prime-Minister 6 Janua ry 1994, deposited with WIPO 14 February
1994);
- The Patent Cooperation Treaty, (signed by the Kyrgyz Republic Prime-Minister 6 January
1994, deposited with WIPO 14 February 1994);
- Eurasian Patent Convention (the translation is  being adjusted to conform to the official
version of 1994);
Moreover, the Kyrgyz Republic was in the process of acceding to:
- Berne Convention for the Protection of Literary and Artistic Works;
- WIPO Copyright Treaty;
- Locarno Agreement Establishing an Interna tional Classification for Industrial Designs
(ratified by the Jogorku Kenesh (Upper House) 26 January 1998, and submitted to the
Chamber of the People's Representatives for ratification);
- Strasbourg Agreement Concerning the Internati onal Patent Classification (ratified by the
Jogorku Kenesh (Upper House) 26 January 1998 and submitted to the Chamber of the
People's Representatives for ratification);
- Vienna Agreement Establishing an International Classification of the Figurative Elements
of Marks (ratified by the Jogorku Kenesh (Upper House) 26 January 1998 and submitted tothe Chamber of the Peoples Representatives for ratification);WT/ACC/KGZ/26
Page 48
- Nice Agreement Concerning the International Classification of Goods and Services for the
Purposes of Registration of Marks (ratified by the Jogorku Kenesh (Upper House) 26
January 1998, and submitted to the Chamber of People's Representatives for ratification).
In addition to these multilateral treaties, the Kyr gyz Republic had entered into bilateral agreements
concerning industrial property with the following countries:
- Russian Federation (1995)
- Uzbekistan (1996)
- Kazakstan (1997)
- Armenia (1997)
- Azerbaijan (1997).
The Kyrgyz Republic has yet to take the necessary  steps to accede to the following conventions for
reasons unrelated to the substance of the conventions themselves.
- International Convention for the Protection of Performers, Producers of Phonograms and
Broadcasting Organizations (Rome Convention);
- Convention for the Protection of Producer s of Phonograms Against Unauthorized
Duplication of Their Phonogram (Geneva Convention);
- WIPO Performances and Phonograms Treaty;
- Treaty on Intellectual Property in Respect of Integrated Circuits (Washington Agreement);
- Universal Copyright Convention.
Nevertheless the  Law on Integrated Circuits ente red into force on 10 April 1998.  This Law provided
the protection listed in the Washington Agreement and comports to the requirements of the TRIPS
Agreement.  Moreover, Chapter 55 of the Civil C ode covers neighbouring rights as did the Law on
Copyright and Neighbouring Rights adopted on 16 December 1997.  These laws protect the right ofperformers, producers of phonograms and broadcasting or ganizations for a term of fifty years and are
consistent with requirements of TRIPS.
137. The rights of producers of phonograms were  protected by the Law "On Copyright and
Neighbouring Rights", which included basic provisi ons protecting the rights of these producers in
compliance with applicable WTO requirements.  The re presentative of the Kyrgyz Republic said that the
Kyrgyz Republic was in the process of acceding to the Berne Convention on Protection of Literary and
Artistic Works and had ratified the WIPO Copyright Agreement (1996) on 30 June 1998.
(d) Application of national and MFN treatment to foreign nationals
138. The representative of the Kyrgyz Republic noted that the policy of the Kyrgyz Republic
regarding application of its intellectual property laws to foreign nationals was to accord national
treatment to foreign citizens, stateless persons a nd foreign legal entities, unless such treatment was
contrary to the provisions contained in other intern ational agreements to which the Kyrgyz Republic was
a party.  The exception to this "national treatment po licy" was that Article 17 of the adopted Patent Law
and Article 6 of the Law On Trademarks, Service Ma rks and Appellations of Origin of Goods provide
that applications filed by foreign legal entities and natural persons residing outside of the Kyrgyz
Republic shall be through a patent agent regist ered with State Agency on Intellectual Property
(Kyrgyzpatent).  Furthermore, the representative of the Kyrgyz Republic stated that in order to ensure
national treatment, the State Agency for Intellectual Property (Kyrgyzpatent) was now reviewing all
laws and regulations to ensure national treatment of foreign persons, for example, a uniform fee
structure had  been adopted by the Resoluti on on Fees for Intellectual Property, No. 346 of
12 June 1998.
139. Some members of the Working Party asked how the Kyrgyz Republic intended  to comply with
Article 4 of the TRIPS Agreement.  The representative  of the Kyrgyz Republic said that with respect toWT/ACC/KGZ/26
Page 49
the MFN principle, the Kyrgyz Republic intended to follow the requirements of Article 4 of the TRIPS
Agreement.
(e) Fees and taxes
140. He noted that fees were charged for the proces sing of trade mark and service mark registration
applications, patent applications for inventions  and industrial designs and applications for the
certification of utility models.   Levies would also be  collected for the extension of the term of a patent
for an industrial design, a utility model, and for an extension of the registration of a trademark, service
mark and the use of an appellation of the place of origin of the good.  He noted in this regard that section
18 of the Temporary Regulations set different methods  for calculating the application/registration and
other fees to be paid by Kyrgyz citizens and CIS na tionals (fees set in varying shares of the "minimum
salary") and those to be paid by non-CIS nationals (fees set in varying amounts of US Dollars).
Pursuant to the Patent Law and the Law On Tradem arks, Service Marks and Appellations of Origin of
Goods, regulations were being developed which woul d provide for a unified method to accrue levies.
However, prior to the adoption of this regulation, the rules of the temporary regulation on levies applied
for the patenting of inventions, utility models, industr ial designs, registration of trademarks and service
marks (1994).
141. The representative of the Kyrgyz Republic st ated that the Kyrgyz Republic would provide
national treatment in respect of all fees charged fo r the granting of intellectual property rights by the
time of accession to the WTO.  In this respect, Resolution No.346 on Intellectual Property Fees which
provided national treatment ha d been adopted on 12 June 1998.
2. Substantive Standards of Protection, Including Procedures For the Acquisition and
Maintenance of Intelle ctual Property Rights
142. The representative of the Kyrgyz Republic noted that the basic legal recognition of intellectual
property rights was established under several articles  of the Civil Code.  Article 22 of the Civil Code
listed the objects of civil rights, namely protected undisclosed information and other results of
intellectual activity, trade names, trademarks and ot her means of individualization of goods.  Article 53
of the Civil Code stated that a citizen can have th e right to intellectual property as well as personal
non-economic property rights. Article 22 specifically d ealt with brands, trademarks and other means of
distinctively marking articles.  Article 53 of the Civil Code provided, inter alia, that a person may have
authorship rights in scientific works, works of art,  literature, inventions and other results of intellectual
activity.  Article 32  provides that a person has the exclusive right in and to the resultant objective
expression of their intellectual activity, including an y means created and used for identifying  a legal
entity, or a product, work, or service produced or offe red by a physical person or legal entity (e.g., firm’s
name, product brand, trade mark, service mark, etc.).   Article 32 also provided that a third person could
use such an "objective expression" only with the c onsent of the person/entity holding the right thereto.
These intellectual property provisions were containe d in Part I of the Civil Code. The Anti-monopoly
Law, which proscribed "unscrupulous  competition," included "the unauthorized use of  a trademark,
name or marking of goods;  the unauthorized duplication of  a form, package or appearance of goods"
and "the unauthorized use or disclosure of confiden tial scientific, technical, engineering or commercial
information".
(a) Copyright and related rights , including rights of perfor mers, producers of phonograms
and broadcasting organizations
143. The representative of the Kyrgyz Republic further added that Part I of the Civil Code provides
generally for the protection of rights of authorship.  Article 7 provides that intellectual property rights
arise as a consequence of the creation of works of science, literature, arts, invention and other products
of intellectual activity.  Kyrgyzpatent’s Temporary Regulations on the Official  Registration of ComputerWT/ACC/KGZ/26
Page 50
Programs, Databases and Integrated Circuit T opologies extend copyright protection to computer
programs - other than computer programming languages - and to databases, which were treated as
compilations. These Temporary Regulations had provided  the owner of such  a program, data base or
topology with the option of formally registering hi s copyright therein.  The Temporary Regulations had
been replaced by the Law on Copyright and Neighbouring Rights, effective 23 January 1998, which
regulated relations resulting from the creation of wo rks of science, literature and art (copyright),
phonograms, performances, productions and broadcas ts by cable and broadcast organizations
(neighbouring rights).
144. The representative of the Kyrgyz Republic st ated that the Law on Copyright and Neighbouring
Rights  which had entered into effect on 23 January 1998 was in full conformity with the requirements
of TRIPS Agreement.
(b) Trademarks, including service marks
145. The representative of the Kyrgyz Republic said that the Law on Trademarks, Service Marks and
Appellations of Origin of Goods pr ovided for the registration of a trademark, which was valid for ten
years from the date a conforming application is fi led with the State Agency on Intellectual Property
(Kyrgyzpatent).  Article 20 of this law provided for the nullification of the registration of a trademark if
it had not been used for three years.  Pursuant to Article 6 bis of the Paris Convention on Protection of
Industrial Property, Article 5 of the Kyrgyz Republic  Trademark Law provided that trademarks which
are similar to the extent likely to cause confusion w ith well-known trademarks within the territory of the
Kyrgyz Republic may not be registered.  Article 41 of the Trade Mark Law provides liability for the
illegal use of a trademark.  Seizure and destruction of goods in respect of which a trademark had been
illegally used were listed among legal remedies.  Article 5 of the law provided for the rejection of an
application to register a trademark, which reproduced  a trade name (in full or in part) owned by others
who have been granted an earlier ownership right.
146. The representative of the Kyrgyz Republic stated that the Law of the Kyrgyz Republic on
Trademarks, Service Marks and Appellations of Origin  of Goods, passed by the Legislative Assembly of
the Parliament of the Kyrgyz Republic on 16 Dece mber 1997, signed by the President of the Kyrgyz
Republic on 14 January 1998, which had entered into effect on 28 January 1998, was in compliancewith the requirements of the TRIPS Agreement.
(c) Geographical indications, including appellations of origin
147. The representative of the Kyrgyz Republic sa id that the newly adopted Law of the Kyrgyz
Republic On Trademarks, Service Marks and Appellation of Origin of Goods enacted in December 1997
which had entered into force on 28 January 1998 governed relations involving the registration, legalprotection and use of trademarks, service marks a nd appellations of origin of goods.  For example,
Articles 27-38 of this law contained provis ions on appellations of origin of goods.
148. The representative of the Kyrgyz Republic stated that the Law on Trade Marks, Service Marks
and Appellation of Origin of Goods had brought the regime on appellations of origin of goods in the
Kyrgyz Republic into full conformity with  the requirements of the TRIPS Agreement.
(d) Industrial designs
149. The representative of the Kyrgyz Republic said that the recently adopted Patent Law of the
Kyrgyz Republic provided for the protection of indust rial designs for ten years from the priority date.
Article 21 of the law provided an opportunity to esta blish a priority date from the date an application
was filed in a member state of the Paris Conventi on on Protection of Industria l Property (conventional
priority), if the application was filed with the State Agency on Intellectual Property (Kyrgyzpatent)WT/ACC/KGZ/26
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within 6 months from the indicated date. A limited grace period was provided for disclosures by the
author or person who obtained the disclosed info rmation from the author.  Excluded from protection
were architectural structures and works contradictin g the public interest or the principles of humanity.
In response to requests for clarification of the concepts  of contradiction of  "principles of humanity", the
representative of the Kyrgyz Republic stated that th e definitions were not  based on official normative
documents and could only be accompanied by referen ces to sources which had a statement of humane
ideas and moral-ethic standards formed in the society,  in conformity with the international standards set
forth in the applicable international agreements.
(e) Patents
150. The representative of the Kyrgyz Republic noted  that the Patent Law of the Kyrgyz Republic
provided that the term of a patent was 20 years from the priority date. An invention was patentable if it
was new, has an inventive level and was industrially applicable.  Applications were to be filed with
Kyrgyzpatent and were examined on request of the applicant.  A grace period was established fordisclosures made by the inventor or a person who obtained the disclosed information from the inventor.
Integrated Circuits were protected in a separate Act currently pending before Parliament.  Similarly,
patent protection was excluded for works contradicting the public interest or the principles of humanity.
Importation satisfied the working requirement.
151. The representative of the Kyrgyz Republic stat ed that the Patent Law of the Kyrgyz Republic
passed by the Legislative Assembly of the Par liament of the Kyrgyz Republic on 16 December 1997,
signed by the President of the Kyrgyz Republic on 14 January 1998 which had become effective on 4
February 1998 had brought the patent regime of the Kyrgyz Republic into full conformity with the
requirements of the Agreement on Trade Relate d Aspects of Intellectual Property Rights.
(f) Plant variety protection
152. The representative of the Kyrgyz Republic said that plant varieties were not patentable pursuant
to the Patent Law of the Kyrgyz Republic.  However,  the legal protection for plant varieties and animal
breeds was provided by the temporary regulation of  breeding achievements.  The  Law of the Kyrgyz
Republic on Legal Protection of Selection Breed ing Achievements had entered into force on
1 July 1998.
(g) Layout designs of integrated circuits
153. The representative of the Kyrgyz Republic stated that layout designs of integrated circuits were
the subject matter of a specific law that incorporates the requirements of TRIPS.  The law had been
adopted by Parliament and enacted in March 1998.
154. The representative of the Kyrgyz Republic stat ed that the Law On Topologies of Integrated
Circuits  had been adopted on 31 March 1998 and had brought the regime on protection of layout
designs of integrated circuits into full conform ity with the requirements of the TRIPS Agreement.
(h) Requirements on undisclosed information, including trade secrets and test data
155. The representative of the Kyrgyz Republic stated that pursuant to Articles 22 and 34 of the
Civil Code, protected undisclosed information, which is  a trade secret, was also listed among the objects
of civil rights.  Such information must have actua l or potential commercial value due to its secrecy to
third parties, it cannot be accessed on any legal basis and its holder must undertake measures to keep itconfidential.  Commercial secrets were the subj ect of separate legislation which was enacted on
30 March 1998.  Damages were available for misappropr iation of such information by persons who had
obtained it illegally or who had divulged it in viola tion of a contractual obligation.  Article 202 of theWT/ACC/KGZ/26
Page 52
Civil Code obliged a commercial representative to keep  confidential all information learned about sales
transactions, even after the completion of his or her employment.  The Criminal Code also provided
penalties for copying information from computers.
156. The representative of the Kyrgyz Republic stated that the Law on Commercial Secrets enacted
on 30 March 1998 had brought the regime  on protection of commercial secrets into full conformity with
the requirements of the TRIPS Agreement.
(i) Any other categories of intellectual property
157. The representative of the Kyrgyz Republic stated that under Kyrgyzpatent’s Temporary
Regulations on the Procedure for the Registra tion of Licensing Agreements of 24 July 1995,
relationships on "know-how" were protected.  Trade names were protected under Article 89 of the Civil
Code which provides that a legal entity, whose firm name has been registered, has an exclusive right to
its use.  Article 89 provided that a legal entity which had first registered a particular business name had
the exclusive right to use that name.  A person who unlawfully uses another firm's registered name was
obliged to stop using the name upon demand and to indemnify the registered owner for any damage
caused by such use.  Kyrgyzpatent had submitted for approval the draft regulation on firm names which
would be in force until the adoption of the appropriate law.
3. Measures to Control Abuse of Intellectual Property Rights
158. The representative of the Kyrgyz Republic stated that Article 12 of the Patent Law provided that
in cases where an invention, utility model or industria l design was not used or used insufficiently within
three years from the date the patent is granted, any entity willing or prepared to use the protected object
(if the patent holder refuses to enter into a licensi ng agreement with the entity) shall have the right to
resort to court and file a petition requesting the gr ant of a compulsory license.  Such license shall be
granted if the patent holder fails to prove that in sufficient use or non-use of the object is caused by
justifiable reasons.
4. Enforcement
(a) Civil judicial procedures and remedies
159. The representative of the Kyrgyz Republic stated that Article 10 of the Civil Code provided that
a plaintiff could obtain relief from the Court to enforce obligations recognized by civil rights.
Accordingly, the Civil Code provided that the Court could order (i) specific performance of an
obligation, (ii) compensation of losses, (iii) exaction of penalties and other penalties. Article 14
permitted the recovery of  losses;  including  bot h direct and consequential damages, including lost
profits, as well as the profits made by the violator  from the violation of the right.  Compensation for
moral rights  was available under Article 16. The protection of honour, dignity and business reputation
was provided under Article 18, where remedies incl uded both the right of refutation and compensation
for  losses and/or moral harm.
(b) Provisional measures
160. The representative of the Kyrgyz Republic said that Article 35 of the Patent Law provided that
courts, within the limits of their authority, had jurisdiction to hear the following disputes:  actions
involving copyright to industrial property, disput es involving the issuance of protection documents,
determinations as to who holds the patent, issues involving compulsory licenses, actions for breach of
the exclusive rights to the object of industrial pr operty, as well as disputes concerning other economic
rights of the patent owner.WT/ACC/KGZ/26
Page 53
(c) Any administrative procedures and remedies
161. The representative of the Kyrgyz Republic stated that Article 10 of the Civil Code provided that
administrative enforcement of rights could be exer cised only in cases stipulated by law and such
decisions were appealable in Court.  The Patent  Law and the Law on Trademarks, Service Marks and
Appellations of Origin of Goods provides for Appellate Council review of disputes involving:
inventions, utility models, industrial designs, trademarks and service marks, as well as appellations oforigin of goods.  The Appellate Council was the fi rst body of review for these disputes. The consumer
protection agency had administrative authority to  address various forms of unscrupulous business
activity, including passing off, the sale of items not fit for ordinary use (including mislabelled items of
food and drink) and trade mark counterfeiting.  Under Article 20 of the Anti-Monopoly Law, the
Anti-Monopoly Department had the power to levy and collect fines for engaging in unscrupulous
business activity, including acts of passing o ff, trade mark misappropriation and unauthorized
use/disclosure of  proprietary information.  In  addition to fines, Article 22.1 provided that, upon
successful application by the Anti-Monopoly Departme nt to a commercial Court, a violator may be
required to surrender all profits made from the concerned activity.  Finally, Article 22.2 permitted  the
damaged person or legal entity to recover losses in an action filed in an appropriate Court.
(d) Any special border measures
162. The representative of the Kyrgyz Republic stated that Articles 28 to 31 of the Customs Code,
enacted on 29 July 1997, and effective on 1 October 1997, provided for border measures related to
intellectual property.  These measures include the su spension of the release of goods where there is an
indication the goods violate intellectual property rights.
(e) Criminal procedures
163. The representative of the Kyrgyz Republic stated that the new Criminal Code, passed
18 September 1997, had entered into force on 1 January 1998.  Articles 150 and 191 detailed the
offences for violation of copyright, neighbouring rights and the rights of a patent holder, as well as for
illegal use of trademarks, service marks and appellations of origin of goods.
164. The representative of the Kyrgyz Republic conf irmed that his Government would fully apply
the provisions of the TRIPS Agreement by the date of its accession to the WTO without recourse to atransitional period.  The Working Part y took note of this commitment.
VII. POLICIES AFFECTING TRADE IN SERVICES
165. The Government of the Kyrgyz Republic entered into bilateral negotiations on market access in
Services, on the basis of the offer circulated to Working Party members in document
WT/ACC/SPEC/KGZ/3.  The results of those negotiati ons are reproduced in the Schedule of Specific
Commitments contained in Part II of the Annex to the Protocol of Accession of the Kyrgyz Republic.
166. In response to requests for information, the representative of the Kyrgyz Republic stated that
since independence, the type, quality and number of service providers had been expanding rapidly.
Private companies and individual suppliers now dom inated the sector.   As of 1 January 1998, the
service sector accounted for approximately 40 pe r cent of total employment.  The service sector
accounted for approximately 30 per cent of GDP in  1996 and approximately 32 per cent in 1997.  He
provided the Working Party with a detailed descrip tion of selected service industries and the legal
regime governing each.  He noted that the primary goal s of State regulation of the services sector were:
protection of the life, health and economic interest s of consumers, protection of the environment and
suppression of unfair competition.  The Kyrgyz Re public pursued these goals through a system of
regulation intended to impose a minimum of burdens on service suppliers.   The regulatory system, withWT/ACC/KGZ/26
Page 54
a relatively few minor exceptions, was imposed equally on both foreign and domestic suppliers
(including foreign-owned domestic suppliers).  Ther efore, foreign suppliers generally enjoyed national
treatment.  In addition, the Kyrgyz Republic did not discriminate among foreign suppliers of services on
any basis.
VIII. TRANSPARENCY
167. In response to questions from some members of the Working Party, the representative of the
Kyrgyz Republic stated that there was no legal requi rement to publish all legislation and administrative
acts on WTO related issues.  However, in practice, all laws, decrees, and resolutions were published in
national newspapers.  In response, some members of the Working Party stated that the Kyrgyz Republic
appeared to lack a legislative basis for the implementation of Article X of the GATT 1994 and other
publication requirements of WTO Agreements, e.g., the requirement that standards be published for
prior review and comment before finalization and implementation.  These members stated that the
Kyrgyz Republic should make efforts to institute appropriate legislation on these points.  In response tothose requests, the representative of the Kyrgyz Republic stated that amendments to the Law on
Normative Acts and Amendments to the Law on P ublication of Laws,  prepared to ensure the
transparency of trade laws and regulations, and to  ensure conformity with Article X of the GATT 1994
and other publication requirement s of WTO Agreements had entered into force on 15 July 1998.
168. The representative of the Kyrgyz Republic said that upon entry into force of the Protocol of
Accession, the Kyrgyz Republic would submit all ini tial notifications required by any Agreement
constituting part of the WTO Agreement.  Any regulations subsequently enacted by the Kyrgyz
Republic which gave effect to the laws enacted to  implement any Agreement constituting part of the
WTO Agreement would also conform to the requireme nts of that Agreement.  The Working Party took
note of these commitments.
IX. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH THIRD
COUNTRIES
169. The representative of the Kyrgyz Republic stated that the Kyrgyz Republic had signed some 27
bilateral agreements relating to foreign trade in g oods and/or services.  He provided the Working Party
with a list of those agreements and a summary of the terms of the agreements.  The agreements had beensigned with 21 foreign countries (six of which we re CIS countries).  All of the agreements were
currently in force and were generally concerned with  the granting of mutually advantageous terms and
conditions for trade and economic cooperation.  The Kyrgyz Republic had free trade areas or customs
unions with the following countries:  CIS countri es according to the CIS Free Trade Area Agreement;
Kazakstan and Uzbekistan according to the Central Asia Economic Area Agreement (20 April 1994);Kazakstan, Belarus and the Russian Federation (accord ing to the Agreement on Joining to the Customs
Union, 28 March 1996);  Bilateral Agreement with Ar menia (4 July 1994);  Bilateral Agreement with
Kazakstan (22 June 1995);  Bilateral Agreement with Moldova (26 May 1995);  Bilateral Agreement
with the Russian Federation (8 October 1992);  Bilateral Agreement with Ukraine (26 May 1995).
170. Some members of the Working Party recalled that Article I of the GATT 1994 required
application of the MFN principle, whilst Article XX IV permitted exceptions to Article I in the case of
regional integration initiatives provided that the c onditions of Article XXIV and the Understanding were
complied with and requested further information on whether the Parliament expected to ratify the
Customs Union with Russia, Kazakstan and Belarus by  the Kyrgyz Republic.  The representative of the
Kyrgyz Republic stated that the agreement on joining the Customs Union was ratified by the Legislative
Assembly;  however, internal procedures on its en forcement had not been adopted.  Currently, within
the Customs Union, expert consultati ons were being held on this issue.WT/ACC/KGZ/26
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171. Some members of the Working Party asked how the Government of the Kyrgyz Republic
planned to meeting the requirement containe d in the Customs Union Agreement that the
Kyrgyz Republic harmonise its customs and trade legi slation with that of the other parties to the
Customs Union.  In response, the representative of the Kyrgyz Republic stated that the harmonisation of
the Kyrgyz Republic's legislation connected with fo reign trade with the Customs Union's requirements
were currently being studied at the level of minist ries and State agencies of the Kyrgyz Republic.
172. The representative of the Kyrgyz Republic st ated that his Government would observe the
provisions of the WTO including Article XXIV of the GATT 1994 and Article V of the GATS in its
participation in trade agreements, and would ensure that the provisions of these WTO Agreements for
notification, consultation and other requirements concerning free trade areas and customs unions of
which the Kyrgyz Republic was a member were met from the date of accession.  He confirmed that the
Kyrgyz Republic would,  upon accession, submit notifica tions and copies of its Free Trade Area and
Customs Union Agreements to the Committee on Re gional Trade Agreements (CRTA).  He further
confirmed that any legislation or regulations requir ed to be altered under its Trade Agreements would
remain consistent with the provisions of the WT O and would, in any case, be notified to the CRTA
during its examination of the same.  The Working Party took note of these commitments.
X. CONCLUSIONS
173. The Working Party took note of the explana tions and statements of the Kyrgyz Republic
concerning its foreign trade regime, as reflected in  this Report.  The Working Party took note of the
commitments given by the Kyrgyz Republic in relati on to certain specific matters which are reproduced
in paragraphs 14, 21, 26, 28, 30, 34, 37, 44, 48, 53, 60, 63, 66, 67, 70, 79, 83, 84, 94, 100, 103, 106, 113,
115, 120, 122, 164, 168 and 172 of this Report.  The Work ing Party took note that these commitments
had been incorporated in paragraph 2 of the Protoc ol of Accession of the Kyrgyz Republic to the WTO.
174. Having carried out the examination of the foreign trade regime of the Kyrgyz Republic and in
light of the explanations, commitments and concessions made by the representative of the
Kyrgyz Republic, the Working Party reached the conclusion that the Kyrgyz Republic be invited to
accede to the Marrakesh Agreement Establishing the WTO under the provisions of Article XII.  For this
purpose, the Working Party has prepared the draft D ecision and Protocol of Accession reproduced in the
Appendix to this Report, and takes note of the Kyrgyz Republic's Schedule of Concessions and
Commitments on Goods (document WT/ACC/KG Z/26/Add.1) and its Schedule of Specific
Commitments on Services (document WT/ACC/KGZ/26/A dd.2) that are annexed to the Protocol.  It is
proposed that these texts be adopted by the Gene ral Council when it adopts the Report.  When the
Decision is adopted, the Protocol of Accession w ould be open for acceptance by the Kyrgyz Republic
which would become a Member thirty days after it accepts the said Protocol.  The Working Party
agreed, therefore, that it had completed its work concerning the negotiations for the accession of the
Kyrgyz Republic to the Marrakesh Agreement Establishing the WTO.WT/ACC/KGZ/26
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APPENDIX
ACCESSION OF THE KYRGYZ REPUBLIC
DRAFT
Decision
The General Council,
Having regard to the results of the negotiations directed towards the establishment of the terms
of accession of the Kyrgyz Republic to the Marrakesh Agreement Establishing the World Trade
Organization and having prepar ed a Protocol for the Accession of the Kyrgyz Republic,
Decides, in accordance with Article XII of th e Marrakesh Agreement Establishing the World
Trade Organization, that the Republic of the Kyrgyz Republic may accede to the Marrakesh Agreement
Establishing the World Trade Organization on the terms set out in the said Protocol.WT/ACC/KGZ/26
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PROTOCOL OF ACCESSION OF THE KYRGYZ REPUBLIC
TO THE MARRAKESH AGREEMENT ESTABLISHING
THE WORLD TRADE ORGANIZATION
DRAFT
The World Trade Organization (hereinafter referred to as the "WTO"), pursuant to the approval
of the General Council of the WTO accorded under Article XII of the Marrakesh Agreement
Establishing the World Trade Organization (hereinaft er referred to as "WTO Agreement"), and the
Kyrgyz Republic,
Taking note of the Report of the Working Party on the Accession of the Kyrgyz Republic to the
WTO in document WT/ACC/KGZ/26 (hereinafter re ferred to as the "Working Party Report"),
Having regard to the results of the negotiations  on the accession of the Kyrgyz Republic to the
WTO,
Agree as follows:
Part I - General
1. Upon entry into force of this Protocol, th e Kyrgyz Republic accedes to the WTO Agreement
pursuant to Article XII of that Agreement and thereby becomes a Member of the WTO.
2. The WTO Agreement to which the Kyrgyz Re public accedes shall be the WTO Agreement as
rectified, amended or otherwise modified by such legal instruments as may have entered into force
before the date of entry into force of this Pr otocol.  This Protocol, which shall comprise the
commitments referred to in paragraph 173 of the Workin g Party Report, shall be an integral part of the
WTO Agreement.
3. Except as otherwise provided for in the paragra phs referred to in paragraph 173 of the Working
Party Report, those obligations in the Multilatera l Trade Agreements annexed to the WTO Agreement
that are to be implemented over a period of time star ting with the entry into force of that Agreement
shall be implemented by the Kyrgyz Republic as if  it had accepted that Agreement on the date of its
entry into force.
4. The Kyrgyz Republic may maintain a measure incons istent with paragraph 1 of Article II of the
GATS provided that such a measure is recorded in the list of Article II Exemptions annexed to this
Protocol and meets the conditi ons of the Annex to the GATS on Article II Exemptions.
Part II - Schedules
5. The Schedules annexed to this Protocol sh all become the schedule of Concessions and
Commitments annexed to the General Agreement on Tariffs and Trade 1994 (hereinafter referred to as
the "GATT 1994") and the Schedule of Specific Comm itments annexed to the General Agreement on
Trade in Services (hereinafter referred to as "GAT S") relating to the Kyrgyz Republic.  The staging of
concessions and commitments listed in the Schedules shall be implemented as specified in the relevant
parts of the respective Schedules.WT/ACC/KGZ/26
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6. For the purpose of the reference in paragraph 6(a) of Article II of the GATT 1994 to the date of
that Agreement, the applicable date in respect of the Schedules of Concessions and Commitments
annexed to this Protocol shall be the date of entry into force of this Protocol.
Part III - Final Provisions
7. This Protocol shall be open for acceptance, by signature or otherwise, by the Kyrgyz Republic
until 1 December 1998.
8. This Protocol shall enter into force on the thirtieth day following the day of its acceptance.
9. This Protocol shall be deposited with the Dire ctor-General of the WTO.  The Director-General
of the WTO shall promptly furnish a certified copy of this Protocol and a notification of acceptance
thereto pursuant to paragraph 7 to each Me mber of the WTO and the Kyrgyz Republic.
10. This Protocol shall be registered in accordance with the provisions of Article 102 of the Charter
of the United Nations.
11. Done at Geneva this ... day of  .... one thousa nd nine hundred and ninety eight, in a single copy
in the English, French and Spanish languages each te xt being authentic, except that a Schedule annexed
hereto may specify that it is authentic in only one or more of these languages.WT/ACC/KGZ/26
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ANNEX
SCHEDULE CXLII  - THE KYRGYZ REPUBLIC
Part I – Goods
[Circulated in docum ent WT/ACC/KGZ/26/Add.1]
Part II – Services
[Circulated in docum ent WT/ACC/KGZ/26/Add.2]
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