WORLD TRADE
ORGANIZATIONWT/REG73/1
15 June 1999
(99-2398)
Committee on Regional Trade Agreements
FREE TRADE AGREEMENT BETWEEN THE KYRGYZ REPUBLIC
AND THE RUSSIAN FEDERATION
The following text reproduces the Agreement and the Protocol on Exceptions to the Free
Trade Regime between the Kyrgyz Republic and the Russian Federation.
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AGREEMENT ON FREE TRADE BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF KYRGYZSTAN AND
THE GOVERNMENT OF THE RUSSIAN FEDERATION
The Cabinet of Ministers of the Republic of Kyrgyzstan and the Government of the Russian
Federation , hereinafter referred to as the “Contracting Parties”,
Being guided by  the provisions of the Agreement on Friendship, Collaboration and Mutual
Aid between the Russian Federation and the Republic of Kyrgyzstan, signed on 10 June 1992,
Taking into consideration  the multilateral Agreement on Collaboration  in the Area of Foreign
Economic Activity, as of 15May 1992,
Considering  the multilateral Agreement on the Coordination of Work on the Issues of Export
Control of Raw Materials, Materials, Equipment, Technologies and Services, which can be used to
create weapons of mass extermination and rocket resources for its delivery, as of 26 June 1992,
Aspiring to the development of economic trade cooperation between the Republic of
Kyrgyzstan and the Russian Federation based on equality and mutual benefit,
Proceeding  from the sovereign right of each Contracting Party to carry out an independent
foreign economic policy and provide the execution of relevant international obligations and
realization of proclaimed intentions,
Intending  to assist in the creation of a single market of goods, services, capitals, and
manpower,
Wishing  to further the creation of conditions required for the formation of a customs union,
Hereby agreed as follows:WT/REG73/1
Page 2
Article 1
1. The Contracting Parties shall not apply the customs duties, taxes and levies, which have
equivalent effect, with respect to importation and exportation of goods originating in the customs
territory of one of the Contracting Parties and intended for the customs territory of the otherContracting Party.  The features of using a trade regime between both countries based on the agreed
nomenclature of goods shall be in the form of a yearly Protocol which is integral part of this
Agreement.
2. For the purposes of this Agreement and for the period it is effective, the goods originated
from the territory of the Contracting Parties shall be the goods:
(a) wholly produced on the territory of the Contracting Parties;
(b) which were subject to processing on the territory of the Contracting Party with the
use of raw materials, materials and parts originated from third countries, which
changed (because of that) their belonging based on the classification of theHarmonized Commodity Description and Coding System proceeding from the first
four digits;
(c) produced with the use of  raw materials, materials, and parts mentioned in
paragraph (b), provided that their total cost does not exceed a fixed share of theexport price for saleable goods.
The Contracting Parties will coordinate the de tailed rules of goods’ origin in a separate
document which will be integral part of this Agreement.
Article 2
The Contracting Parties will not:
- directly or indirectly impose on goods, subject to this Agreement, domestic taxes or
levies which exceed the relevant taxes or levies imposed on  similar domestically
produced goods or goods originated from third countries;
- with respect to importation or exportation of goods, subject to this Agreement,
introduce any special restrictions or requirements which are not similarly applied to
similar domestically produced goods or goods originated from third countries,
- with respect to warehousing, transhipping, storing and transporting goods originated
from the other Contracting Party and with respect to payments and transfer of
payments, apply rules other than those which are similarly applied with respect to its
own goods or goods originated from third countries.
Article 3
1. Under this Agreement the Contracting Parties will refrain from applying quantitative
restrictions or measures, equivalent with them, with respect to exportation and/or importation of
goods.
2. The quantitative restrictions mentioned in paragraph 1 of this Article may be unilaterally
established in reasonable limits and for a strictly appointed term in cases of:WT/REG73/1
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- acute deficit of this product in the domestic market until the market situation is
stabilized;
- acute deficit of balance of payments until the situation with the balance of payments
is stabilized;
- carrying out measures provided by Article 4 of this Agreement.
3. The quantitative restrictions mentioned in paragraph 1 of this Article may also be established
by mutual agreement of the Parties and shall be included in yearly Protocols mentioned in paragraph 1
of Article 1 hereof.
4. A Contracting Party which applies quantitative restrictions in compliance with paragraph 2 of
this Article, upon inquiry of the other Contracting Party, shall provide it with necessary information
concerning the reasons for the introduction, forms and possible terms of applying the mentioned
restrictions.
5. The Contracting Parties will aspire to solve all questions arising in connection with the
application of quantitative restrictions in compliance with paragraph 2 of this Article by way of
consultations.
Article 4
Each Contracting Party will not allow re-exportation of goods with respect to exportation of
which the other Contracting Party, where these goods originate from, applies measures of tariff and/or
non-tariff regulation.
Re-exportation of such goods to third countries can be carried out only by written consent and
on terms determined by the authorized body of the State which is the country of origin of these goods.
In the event that this provision is not followed, a Contracting Party, whose national interests have
been violated, shall have the right to unilaterally introduce measures for the regulation of exportation
of goods to the territory of the State which allowed a non-sanctioned re-export.  And  currency
earnings from such re-exportation shall return to the country of origin of the relevant goods.
Re-exportation shall mean that goods originated from the customs territory of one of the
Contracting Parties, as defined  in paragraph 2 of Article 1 hereof, are exported by the other
Contracting Party outside the customs territory of th e latter with the aim of exporting them to a third
country.
Article 5
The Contracting Parties will, on a regular basis, exchange information on customs issues, as
well as customs statistics.  The relevant authorized bodies of the Contracting Parties shall coordinate a
procedure of exchanging such information and shall conclude a relevant agreement.
Article 6
1. The Contracting Parties will take measures to bring together the levels of customs duty rates
applied in trade with third countries.  For these purposes they have agreed to conduct regularconsultations.
2. The Contracting Parties shall inform each other of all exceptions to the current customs tariffs
which are unilaterally applied.WT/REG73/1
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Article 7
The Contracting Parties shall consider unfair business practice incompatible with the
objectives of this Agreement that is in particular expressed in the following:
- in concluding agreements between enterprises, their associations aimed at impeding
or restricting competition, or violating conditions for the competition on the
territories of the Contracting Parties;
- in carrying out actions with the help of which one or several enterprises use their
dominant position restricting competition on the whole or considerable part of theterritories of the Contracting Parties.
Article 8
In carrying out measures of tariff and non-tariff regulation of bilateral economic relations, for
exchanging statistical information and carrying out customs procedures, the Contracting Parties will
apply a single nine-digit Goods Nomenclature of Foreign Economic Activity (GN FEA) based on the
Harmonized Commodity Description and Coding Systems and the Combined Tariff Statistical
Nomenclature of the European Economic Community .  And for own needs the Contracting Parties
shall, if necessary, carry out the development of the Goods Nomenclature beyond nine-digits.
The Russian Party shall carry out the maintenance of a standard copy of the Goods
Nomenclature through the available representative offices in the relevant international organizations
for that period of time until the Kyrgyz Party announces its independent maintenance of the standard
copy.
Article 9
The Contracting Parties will not use the State aid in the form of subsidies to enterprises or in
any other form if such State aid would cause violation of normal economic conditions on the territory
of the other Contracting Party.
Article 10
The Contracting Parties have agreed that the observance of the principle of transit freedom
shall be the most important condition for achieving the objectives of this Agreement and shall be an
essential element of the process of their attachment to the system of international division of labourand cooperation.
In this connection, each Contracting Party shall provide a free transit, via its territory, of
goods originated in customs territory of the other Contracting Party and/or third countries and
intended for the customs territory of the other Contracting Party or any third country.  Each
Contracting Party shall provide exporters, importers or carriers with all means and services available
and necessary to provide transit on terms not worse than those on which the same means and services
are provided to their own exporters, importers or carriers or to exporters, importers or carriers of any
third country.
Tariffs on transit of any kind of transport including tariffs on loading and unloading works
will be economically substantiated and will not exceed normal working expenses, including a
reasonable rate of profit.  The Contracting Parties will not require payment for services on
warehousing, transhipping, storing and transporting goods in currency of any third country.WT/REG73/1
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Article 11
Nothing herein must prevent a Contracting Party from taking measures which it considers
necessary to protect its vital interests or which are undoubtedly necessary for the implementation ofthe international agreements to which it is a signatory, if these measures concern:
- information damaging interests of national defence;
- trade in weapons, ammunition and military equipment;
- investigations or production connected with needs of defence;
- deliveries of materials and equipment used in nuclear industry;
- defence of public moral and public order;- protection of industrial or intellectual property;
- gold, silver or other precious metals and stones;
- protection of people’s health, animals and plants.
Article 12
In order to carry out an agreed policy with re spect to third countries in compliance with the
Agreement on the Coordination of Work on the Issues of Export Control of Raw Material, Materials,
Equipment, Technologies and Services, which can be used to create weapons of mass extermination
and rocket means for its delivery, as of 26 June 1992, the Contracting Parties will create anIntergovernmental Coordinating Council for Export Control as part of Heads of the national state
bodies of export control with the Working Office based on the Export Control Commission of the
Russian Federation.  The functions of the Interg overnmental Coordinating Council shall include the
approval of  single control lists, consideration of facts of violation of export control requirements,
preparation of suggestions on introducing and cancelling sanctions, and other issues of export control.
Article 13
For the purposes of developing trade between the two countries, the Contracting Parties will
render assistance in the participation in trade fairs and exhibitions held in one of the two countries.
Article 14
The provisions of this Agreement shall replace provisions of the agreements earlier concluded
between the Contracting Parties to that extent to which the latter is either not compatible with the
former or is identical to them.  The Contracting Parties shall instruct their competent bodies to prepare
and sign a relevant Protocol on this issue.
Article 15
This Agreement shall not affect actions of  the Agreements concluded earlier by the
Contracting Parties with third countries.WT/REG73/1
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Article 16
Nothing herein shall prevent the Contracting Parties from carrying out relations, which do not
contradict the objectives and terms hereof, with third countries and their associations and international
organizations.
Article 17
Disputes between the Contracting Parties regarding the interpretation or application of the
provisions hereof will be settled by way of negotiations.
Article 18
To carry out this Agreement and work out recommendations on improving trade economic
cooperation between the two countries, the Contract ing Parties have agreed to establish a joint
Russian-Kyrgyz Commission.
Article 19
The Contracting Parties have agreed that the Republic of Kyrgyzstan may establish its trade
representative office in the Russian Federation, and the Russian Federation may establish its trade
representative office in the Republic of Kyrgyzstan.  The legal status of these trade representativeoffices, their functions and location shall be determined by a separate Agreement.
Article 20
Any State may, provided that the Contracting Parties approve this, join this Agreement on
terms and conditions which will be agreed between a joining state and the Contracting Parties.
Article 21
The Protocol on exceptions to free trade regime to be signed by the Parties within one-month
period from the date of signing the Agreement shall be integral part hereof.
Article 22
This Agreement may be amended and supplemented by mutual consent of the Contracting
Parties.  The mentioned amendments and supplements must be in writing.
Article 23
This Agreement shall come into force from the date of exchanging notifications on the
fulfilment by the Contracting Parties of all inner-governmental procedures necessary for this
Agreement to come into force.WT/REG73/1
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The Agreement shall be invalid upon the expiration of 12 months from the date of a written
notification of one of the Contracting Parties concerning the intention to terminate the Agreement.
Done in the city of Bishkek on 8 October 1992, in duplicate.  Each is in Kyrgyz and Russian.
And both texts shall be equally valid.
For the Cabinet of Ministers of the Republic of Kyrgyzstan
For the Government of the Russian FederationWT/REG73/1
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ANNEX
Protocol on Exceptions to Free Trade Regime to the Agreement on
Free Trade between the Cabinet of Ministers of the Republic of Kyrgyzstan
and the Government of the Russian Federation, as of 8 October 1992
The Cabinet of Ministers of the Kyrgyz Republic and the Government of the Russian
Federation, hereinafter referred to as the Parties, agreed as follows:
Article 1
Exceptions provided by Article 1 of the Agreement on Free Trade between the Cabinet of
Ministers of the Republic of Kyrgyzstan and the Government of the Russian Federation, as of
8 October 1992, (further referred to as the Agreement on Free Trade) shall apply to:
- goods subject to the Kyrgyz legislation on export tariff/and licensing of exportation
of goods (works, services) which is in force at the moment of customs clearance of
goods during their exportation from the Kyrgyz Republic to the Russian Federation
(at the moment of signing this Protocol the following documents are in force: the
Presidential Decree of the Kyrgyz Republic “On some measures for the protection
and development of private entrepreneurship”, as of 25 March 1994, and No 613Resolution of the Cabinet of Ministers of the Kyrgyz Republic “Temporary Customs
Tariff of the Kyrgyz Republic”, as of 30 December 1993);
- goods subject to the Russian legislation on export tariff and licensing and quoting of
exportation of goods (works, services) which is in force at the moment of customsclearance of goods during their exportation from the Russian Federation to the
Kyrgyz Republic (at the moment of signing this Protocol the following documents are
in force: No 1103 Resolution of the Cabinet of Ministers - Government of the
Russian Federation “On approving export customs duty rates and a schedule of goods
with respect to which they are applied”, as of 30 October 1993, No 854 Resolution of
the Government of the Russian Federation “On licensing and quoting of exportation
and importation of goods (works, services) on the territory of the RussianFederation”, as of 6 November 1992, and No 1102 Resolution of the Cabinet of
Ministers – the Government of the Russian Federation “On measures for
liberalization of foreign economic activity” with further amendments).
The Parties shall immediately inform each other of all changes to domestic legislation on the
aforementioned issues.
Article 2
With respect to goods to which tariff and non-tariff export restrictions are applied in
compliance with Article 1 of this Protocol, the Parties shall provide the MFN treatment to each other
with respect to:
- customs duties and levies charged in exportation of goods, including the methods for
charging such duties and levies;
- procedures and rules relating to exportation (importation) of goods including those
which relate to their customs clearance, transit, warehousing and transhipment;WT/REG73/1
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- taxes and other domestic levies of any kind directly or indirectly connected with
exported (imported) goods;
- rules on selling, purchasing, transporting, distributing and using goods in the
domestic market;
- ways and transfer of payments.
Article 3
The provisions of Article 2 hereof shall not be applied to advantages and privileges granted
by each of the Parties to:
- third countries with the purpose of creating a customs union or a free trade area, or as
a result of creating such a union or such an area;
- developing countries on the basis of the international agreements.
Article 4
The Parties shall not impose export duties on goods delivered for the national needs on a
mutually agreed basis in compliance with the Intergovernmental Agreement on Trade EconomicCooperation in 1994.
Article 5
This Protocol shall be integral part of the Agreement on Free Trade.
The Protocol on Exceptions to Free Trade Regime between the Republic of Kyrgyzstan and
the Russian Federation, as of 26 December 1992, shall be invalid on the day when this Protocol comes
into force.
Article 6
This Protocol shall come into force on the date it is signed  and shall be valid until the new
Protocol provided by Article 1 of the Agreement on Free Trade comes into force.
Done in the city of Moscow on 12 July 1994, in two originals.  Each is in the Kyrgyz and
Russian languages.  And both of the texts shall be equally valid.
For the Cabinet of Ministers of the Kyrgyz Republic
For the Government of the Russian Federation
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