RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/KAZ/22
23 June 1999
(99-2553)
Working Party on the
Accession of KazakstanOriginal: English
ACCESSION OF KAZAKSTAN
Additional Questions and Replies
The Ministry of Energy, Industry and Trade of the Republic of Kazakstan have submitted the
replies to the additiona l questions submitted by Members.  Th e replies are reproduced hereunder
_______________WT/ACC/KAZ/22
Page i
TABLE OF CONTENTS
Question No. Page No.
II. ECONOMY, ECONOMIC POLICIES AND
FOREIGN TRADE
2. Economic Policies(a) Main directions and goals 1 1
Pricing policy 2-4 3
III. FRAMEWORK FOR MAKING AND ENFORCING
POLICIES AFFECTING FOREIGN TRADE INGOODS AND TRADE IN SERVICES54
4. Any Legislative Programmes or Plans to Change the
Regulatory Regime6-8 5
5. Laws and Legal Acts 96
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulation(a) Registration requirements for engaging in importing 10-11 7(c) Tariff quotas and tariff exemptions 12 7(d) Other duties and charges, specifying any charges for
services rendered13-26 8
(e) Quantitative import restrictions, including prohibitions,
quotas and licensing systems22 13
(h) Customs valuation 23-24 13
(i) Other customs formalities 25-27 14(k) Application of internal taxes on imports 28-38 16(l) Rules of origin 39 24(m) Anti-dumping regime 40 24(n) Countervailing duty regime 40 24(o) Safeguard regime 40 24
3. Internal Policy Affecting Foreign Trade in Goods
(a) Industrial policy, including subsidy policies 41-45 24(b) Technical regulations and standards, including measures
taken at the border with respect  to imports46-55 26
(c) Sanitary and phytosanitary measures, including measures
taken with respect to imports56 29
(d) Trade-related investment measures 57 29
(e) State-trading practices 58 30(l) Government procurement practices 60 30
4. Policies Affecting Foreign Trade in Agricultural
Products
(b) Exports 61-68 31(e) Internal policies 69-82 33WT/ACC/KAZ/22
Page ii
Question No. Page No.
V. TRADE-RELATED INTELLECTUAL PROPERTY
REGIME
1. General 83 37
(d) Application of national and M.F.N. treatment to foreign
nationals84
37
2. Substantive standards of protection, including
procedures for the acquisition and maintenance ofintellectual property rights
(a) Copyright and related rights, including rights of
performers, producers  of  phonograms and broadcastingorganizations85-87 38
(b) Trademarks, including service marks 88-89 40
(g) Layout designs of integrated circuits 90 40(h) Requirements on undisclosed information, including trade
secrets and test data91 41
4. Enforcement 92-100 41
VI. TRADE-RELATED SERVICES RÉGIME 101 45
VII. INSTITUTIONAL BASIS FOR TRADE AND
ECONOMIC RELATIONS WITH THIRDCOUNTRIES
1. Bilateral or Plurilateral Agreements Relating to
Foreign Trade in Goods and Trade in Services102 45
2. Economic Integration:  Customs Union and Free Trade
Area Agreements103-104 46WT/ACC/KAZ/22
Page 1
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic Policies(a) Main directions and goals
Private sector development/privatization
Question 1.As noted at the last meeting, we appreciate Kazakstan's willingness, noted in its response to
Question 1 in WT/ACC/KAZ/11, to undertake a commitment to additional transparency as its
privatization and reform programmes proceed.
We would appreciate an update prior to the next meeting on its privatization efforts, describing
how privatization is proceeding and including a ch art similar to those produced for Latvia and
the Kyrgyz Republic Working Party reports to indicate progress.
Answer:
The Kazakstan privatization programme is implemented in three stages. This programme had
been initiated from "mass privatization" as well as "small privatization".  Mass privatization has been
implemented through the allocation of coupons, as well as by way of the assignment of assets to the
ownership of employees of such enterprises. Small privatization has been completed with the
privatization of retailed sale enterprises and the enterprises in the sphere of services. The second
stage, which covers  the privatization of "middle" enterprises (with the number of employees from
200 up to 5000 people) also will be completed soon.  The third stage includes the privatization of
separate big enterprises about 150 enterprises, including the enterprises of power complex, oil and gaspipelines) banks, airports and other objects.
In 1998, on a case-by-case privatization project, ten enterprises have been tendered, out of
them eight enterprises were sold, and among them one  of the biggest banks of Kazakstan - JSC of the
close type "Turan Alem Bank" has been privatized (100  per cent of the State package of shares, sales
value is US$72 million, and US$69 million have been paid to the budget).  The information on the
number of the privatized enterprises for the period 1991-1998 is presented in Table 1.  As to the
privatization methods for the period 1991-1998, the information is presented in Table 2.
Table 1: Sectoral Privatization Data Profile for 1991-1998
Sector Number of
Enterprises of State
Property as of 
1 January 1991Number of Privatized
Enterprises as of
31 December 1997Percentage of
Privatized
Enterprises as of
1 January 1999
Industry 1,988 1 451 73.0
Consumer Services 5,894 5 103 86.6
Trade and PublicCatering9,127 9 127 100.0
Agriculture 2,120 2 120 100.0
Construction 620 413 66.0
Transport 880 703 80.0
Other sectors 3,242 3 242 100.0
Total 23,871 22 159 93.0WT/ACC/KAZ/22
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Table 2: Sectoral Privatization Data Profile by Privatization Modes For 1991-1998
Sector Privatization Mode Number of
Privatized Objects
Industry Lease with subsequent buy-out
Auctioning
Sale through auctions
Sale through tendersGratis transfers
Direct sale to private entities
Direct sale to labor collectives
Incorporation (Joint-Stock Companies)850
601
Consumer Services Lease with subsequent buy-out
Auctioning
Sale through auctions
Sale through tendersDirect sale to private entities
Direct sale to labor collectives
Incorporation (Joint-Stock Companies)3,860
1,243
Trade and public catering Lease with subsequent buy-out
Auctioning
Sale through auctions
Sale through tenders
Direct sale to private entitiesDirect sale to labor collectives
Incorporation (Joint-Stock Companies)6,546
2,581
Agriculture Lease with subsequent buy-out
AuctioningSale through auctions
Sale through tenders
Direct sale to private entities
Direct sale to labor collectives
Incorporation (Joint-Stock Companies)2,120
Construction Lease with subsequent buy-out
Auctioning
Sale through auctions
Sale through tendersDirect sale to private entities
Direct sale to labor collectives (bodies)
Incorporation (Joint-Stock Companies)160
253
Transport Auctioning
Sale through tenders
Direct sale to private entities
Direct sale to labor collectives (bodies)Incorporation (Joint-Stock Companies)272
431WT/ACC/KAZ/22
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Sector Privatization Mode Number of
Privatized Objects
Other sectors Lease with subsequent buy-out
AuctioningSale through auctions
Sale through tenders
Direct sale to private entities
Direct sale to labor collectives
Incorporation (Joint-Stock Companies)2,040
1,202
Pricing policy
Question 2.
Based on the information provided in WT/ACC/KAZ/14, can Kazakstan confirm that there are,
at this time, no price controls on goods in Kaza kstan with the exception of energy products, and
that all other prices for goods and services in every sector are determined by market forces?
Answer:
Kazakstan confirms that, at this time, there are no price controls on goods with the exception
of energy products.
With respect to services, currently only the following activities provided by natural monopoly
entities are subject to price controls:
- transportation of oil and oil products through trunk pipelines;
- transportation of gas and gas condensate through trunk and distribution pipelines;
- transmission and distribution of electric power and heat;
- operation of railroad routes;
- air-navigation, port and airport services;
- rendering telecommunication services via local line networks;
- water supply and sewerage services;
- postal services.
(Law of the Republic of Kazakstan “On Natural Monopolies”, Article 4, 9 July 1998,
submitted to WTO in November 1998).
Entities, which provide utility services, are subject to the State regulation. Besides, the
Authorized Body is entitled to undertake measures to establish fixed prices, mandatory for the
subjects, which have a dominant position in the market. (The Law “On Housing Relations,” the
Resolution of the Government of the Republic of Kazakstan of 29 September 1997, N 1377, the Law
of the Republic of Kazakstan “ On Development of Competition and Restriction of Monopolistic
Activity”).
Question 3.
Can Kazakstan confirm that from the date of accession, the price controls in place and any
applied in the future will be applied in a WTO-consistent fashion, taking account of the interests
of exporting WTO members as provided for in Article III:9 of the GATT 1994?WT/ACC/KAZ/22
Page 4
Answer:
Kazakstan confirms that from the date of accession, the price controls in place and any applied in the
future will be applied in a WTO-consistent fashion, taking account the interests of exporting WTO
members as provided for in Article III:9 of the GATT 1994.
Question 4.
Will Kazakstan publish the list of notified goods and services subject to state price controls in its
Official Gazette  and any future changes from those notified?
Answer:
The list of goods and services subject to State price controls is regularly published in the official print
media ("The State Register of Natural Monopolies of the Republic of Kazakstan").
III. FRAMEWORK FOR MAKI NG AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES
Question 5.In response to Question 8 in KAZ/14, Kazakstan states that "the imperative, provided in the
constitution (Article 4(3)), therefore, does not require a special law, establishing a procedure to
apply a ratified and effective treaty on the territory of Kazakstan."
Please explain in detail and with specific examples, based on WTO inconsistent measures
currently applied by Kazakstan, how ratification of  its protocol package would, from the date of
accession, be translated operationally as Kazakstan law.
For example, would Kazakstan cease its practice of exempting CIS imports from VAT, would
its customs fee be abolished automatically, woul d any applied tariffs in excess of the bindings
negotiated automatically cease to be applied at customs borders, would any promulgation of
standards related laws or regulations become illegal without publication for prior comment?
Answer:
As noted in the response to Question 8 of WT/ACC/KAZ/14, Article 4(3) of the Constitution
of the Republic of Kazakstan provides that international agreements ratified by Kazakstan have
priority over its national legislation, such as acts of the President, or Resolutions of the Government
and Orders of the Prime Minister of the Republic of Kazakstan and other normative legal acts,including implementing regulations thereof, and su ch international agreements are applied directly
except in those cases where it can be inferred from the international agreement that it is necessary to
adopt a law for such an agreement to become applicable. Pursuant to Article 22 of the Presidential
Decree with the force of law “On the Procedur e for Conclusion, Execution and Denunciation of
International Agreements of the Republic of Kazakstan” (of 12 December 1995), the Government andother concerned State bodies are obligated to ensure that Kazakstan fulfills all obligations it assumes
under international agreements of Kazakstan.
Obligations, which Kazakstan will assume upon accession to the WTO, and which contradict
the provisions of international agreements of the Republic of Kazakstan, will take effect in Kazakstanonly after incorporation of appropriate amendments to such international agreements and/or after the
expiry of their duration or their denunciation pursuant to the Decree of the President of the Republic
of Kazakstan “On the Procedure for Conclusion, Execution and Denunciation of InternationalWT/ACC/KAZ/22
Page 5
Agreements of the Republic of Kazakstan” of 12 December 1995, and the Vienna Convention “On
International Treaty Law of 23 May 1969.
A concrete example of how such changes become part of the Kazakstan law is the agreement
that Kazakstan entered into on 10 June 1997, with Azerbaijan to apply VAT at the point of destination
(import) rather than the point of production. In accordance with Article 54 of the Constitution, theParliament of the Republic of Kazakstan ratified this Agreement (“Law on Ratification of Agreement
with Azerbaijan Regarding Indirect Taxes” (2 9 June 1998, No. 239-1). After the Parliament of
Azerbaijan also ratified the Agreement, the parties exchanged ratification instruments, and, thereafter,
the Agreement took effect and became obligatory for execution by all interested ministries and
agencies. The obligations resulting from this Agreement became part of the Kazakstan legislation
through issuance of internal instructions by the Customs Committee of the Ministry of State Revenues
and after obligations of Kazakstan resultant from this Agreement were clarified.
Any Legislative Programmes or Plans to Change the Regulatory Regime
Question 6.
The response to questions 17 and 19 of WT/ACC/KAZ/11, gave a status report on efforts to
meet requirements of key WTO agreements and the statement that Kazakstan "plans to enact
new legislation and amend existing legislation in order to conform to the WTO agreements."
We would appreciate an update and expansion of the table indicating which laws have been
enacted, and if they have been submitted to th e Working Party for review in their revised state.
Answer:
Since the reply to the previous set of questions in February 1998, the following laws have
been enacted:
- Law on Joint Stock Companies, enacted 10 July 1998 (WT/ACC/KAZ/18);
- Law on Natural Monopolies, enacted 8 July 1998 (WT/ACC/KAZ/18);
- Law on Limited Liability Partnerships, enacted 22 April 1998 (WT/ACC/KAZ/18);
- Law on Unfair Competition , enacted 9 June 1998 (WT/ACC/KAZ/18);
- Law on Safeguards, enacted 28 December 1998 (WT/ACC/KAZ/20);
- Law on Plant Quarantine, enacted 11 February 1999 (WT/ACC/KAZ/20);
- Law on Payments and Money Transfers, enacted 29 June 1998 (WT/ACC/KAZ/18).
The following draft laws are expected to be on the agenda of the Parliament for 1999:
- Draft Amendments to the Customs Code (WT/ACC/KAZ/21);
- Draft Law on Anti-Dumping Measures;
- Draft Law on Subsidies and Countervailing Measures and Subsidies;
- Draft Law on Trade Marks, Service Marks and Appellations of Places of Origin of
Goods;
- Draft Law on Standardization WT/ACC/KAZ/21;
- Draft Law on Certification WT/ACC/KAZ/21.
Drafts of these Laws will be forwarded to the Secretariat of the WTO after approval by the
Government of the Republic of Kazakstan.WT/ACC/KAZ/22
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Question 7.
Can Kazakstan report on the fate of the draft Customs Code, which was slated for enactment
earlier this year?
Answer:
The draft was meticulously further elaborated in the course of a year due to the necessity to
introduce changes and amendments to the Customs Legislation in addition to those needed for
Kazakstan’s accession to the WTO, including those aimed at simplifying of customs clearance
procedures, shortening the period of time for customs clearance, and other proposals for amendment
of the Customs Code.  The developed draft includes  provisions related to customs valuation, country
of origin, adoption of a preliminary decision, as well as provisions related to the authorities of theCustoms Bodies in respect of protection of objects of intellectual property.  Currently, the Draft Law,
approved by the Government of the Republic of Kazakstan (Resolution of the Government of March
16, 1999, N 248) was submitted to Majilis of the Parliament for consideration and was forwarded to
the WTO Secretariat.
Question 8.
In order to ensure that the next meeting make s substantive progress towards the completion of
the negotiations for terms of WTO accession, we believe that Kazakstan should be prepared to
provide copies of all the relevant legislation that will address these issues and/or a description ofhow Kazakstan has met its WTO obligations in these areas, prior to the scheduling/scheduling
of the next Working Party meeting.
Answer:
After approval by the Government of the Republic of Kazakstan, Kazakstan will submit to the
WTO Secretariat the draft laws, which are aimed at bringing its legal basis in compliance with the
WTO Agreements.  Please see the response to question 6 regarding Kazakstan’s legislative drafting
agenda for this year.
5. Laws and Legal Acts
Question 9.This member fully agrees with the Chairman’s conc lusion that further meaningful discussion of
the Kazak trade regime will be difficult until the Kazak delegation is able to supply:
- Copies of legislation already cited;
- A precise legislative action plan setting out the state of pending legislation, and a
timetable for its achievement. This list should cover, but not be limited to, the pending
legislation, which the Kazakstan delegation itself has already referred, including,
taxation, the Customs Code (covering inter alia, Rules of Origin, Customs Valuation,
fees for services rendered), Licensing, TBT, SPS, TRIPS, TRIMs, Services.
Answer:
The following draft laws are to be reviewed by the Parliament in 1999:
- Draft Amendments to the Customs Code(WT/ACC/KAZ/21);
- Draft Law “On Anti-Dumping”;WT/ACC/KAZ/22
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- Draft Law “On Subsidies and Countervailing Measures”;
- Draft Amendments to the Law “On Trademarks, Service Marks and Appellations of Origin of
Goods”;
- Draft Law “On Standardisation” (WT/ACC/KAZ/21);
- Draft Law “On Certification” (WT/ACC/KAZ/21).
These draft laws will be forwarded to the WTO Secretariat after their approval by the
Government of the Republic of Kazakstan.
These documents should be submitted before the next session of the Working Party.
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import regulation
(a) Registration requirements and trading rightsQuestion 10.Can Kazakstan confirm that the former State monopoly in foreign trade has been abolished and
that no restrictions exist on the right of foreign and domestic individuals and enterprises to
import and export goods and services within Kazakstan's customs territory except as provided
for in WTO agreements?
Answer:
Kazakstan confirms that there is no State monopoly on foreign trade and there are no
restrictions on the right of foreign and domestic individuals and enterprises to import and exportgoods and services except as provided for in WTO agreements.
Question 11.
Can Kazakstan confirm that individuals and firms are not restricted in their ability to import or
export based on their registered scope of business, and the criteria for registration of companies
in Kazakstan are generally applicable and published in the Official Gazette?
Answer:
Kazakstan confirms that there are no restrictions to import or export based on registered scope
of business. The criteria for registration are set out in the “Law on State Registration of LegalEntities” (No. 2198) of 17 April 1995 and are applicable to all companies in Kazakstan and are of
normative nature. The law was published in the Official Gazette (Vedomosti Verkhovnogo Soveta
Nos. 3-4, 15-16, and 20 (1995); Vedomosti Parlamenta 1,14 (1996), 12 (1997), and Kazakstanskaya
Pravda 20.04.95).
(c) Tariff quotas, tariff exemptions
Question 12.Are Kazakstan's laws covering tariff exemptions set out in the Customs Code in Chapter 22
implemented in regulations? If not, why not?WT/ACC/KAZ/22
Page 8
Answer:
Normative acts have been issued to further implement the concerned statutory provisions that
are related to all customs duty exemptions set out in Chapter 22 of the Customs Code, except for cases
related to the issues of border trade with the non-CIS neighbouring countries. For example, these
include regulations on duty-free importation of humanitarian aid (Government Regulation No. 1090, 7August 1995, as amended); goods imported by natural persons (Government Regulation No. 1712,
13 December 1996, as amended); temporary importation of goods (Government Regulation No. 342,
25 March 1996); goods imported for re-export (Government Regulation No. 1003, July 20, 1995), and
goods exported for processing outside the customs territory (Customs Committee Order No. 118,
3 June 1996).
(d) Other duties and charges, and charges and f ees for services, whether or not for customs
purposes.
Question 13.Excise duties still discriminate between domestic and imported products in the case of alcohol,
tobacco and automobiles. Please specify what steps are being taken to remove this
discriminations.
Answer:
Excise duties on alcohol, tobacco, automobiles, gasoline and diesel fuel differ as a result of
efforts undertaken at present to harmonise rates of excise taxes on imported goods and domestic
goods.  Certain measures have been undertaken to decrease the excise taxes on domestic production in
order to protect domestic producers in the area of production and distribution of ethyl spirits and
alcoholic products as well as in the area of oil production.  This has been done with the intention tostabilise the markets for alcoholic and oil products and to weaken the existing shadow businesses in
these areas.  Work to harmonise the rates of excise taxes will continue in the future.
Question 14.
The response to questions 10 and 12 of WT/ACC/KAZ/14 states that a review to evaluate state
fees and duties to ensure they reflect the cost of services rendered was ongoing, in addition to
efforts to bring the 0.2 percent customs fee in to line with article VIII of the GATT, and that
Kazakstan will conduct a review of its licensing fee in June 1998 and provide the WTO with a
proposal for changing such fee in July 1998.
Could Kazakstan give a status report on these reviews? Could Kazakstan provide a list in a
single chart of all fees for service currently applied to imports and in other cases covered by
WTO provisions, noting where applicable the rate  applied to imports differs from that applied
to similar domestic goods subject to the same service? These include, but may not be limited to
fees for import/export licenses, veterinary certificates, certificates of origin, and certificates of
conformity to standards.WT/ACC/KAZ/22
Page 9
Answer:
Fees and Charges for Services Provided in Respect of Imports
Fee Unit of Measure
RateNormative (Legal) Act
1. Customs fees for the Customs
processing of goods in transit by
railroad transportUS$ 14 The Resolution of the
Government of the Republic of
Kazakstan3 March 1999 N 258
2. Customs Fees for Clearance of Goods
Carried through the Customs Border
by Legal and Natural Persons0.2% of their Customs
ValueResolution of the Government of
the Republic of Kazakstan # 1479
7 November 1995
3. Customs Fees for Customs Clearance
of Goods and Vehicles Outside of theDesignated Areas and Regular Office
HoursDouble the normal rate Resolution of the Government of
the Republic of Kazakstan #14797 November 1995
4. Customs Fee for Storing Goods at a
Temporary Storage Warehouse
established by Customs0.04 EURO for one gross
kilo per night (or 24
hours)Resolution of the Government of
the Republic of Kazakstan #1479
7 November 1995
5. For Storing Vehicles Transported as
Goods3 EURO for a Vehicle
per night (or 24 hours)Resolution of the Government of
the Republic of Kazakstan #1479
7 November 1995
6. Customs Fees for Storing Goods at
Warehouses founded by the Customs
Bodies0.02 EURO for one gross
kilo per night (24 hours)Resolution of the Government of
the Republic of Kazakstan #1479
7 November 1995
7. Customs Fees for Storing Goods at a
Warehouse established by the
Customs Bodies on specially adjusted
premises (e.g. special equipment,
maintenance of temperature at acertain required level)0.03 EURO per one gross
kilo per night (24 hours)Resolution of the Government of
the Republic of Kazakstan #1479
7 November 1995
8. Customs Fees for Convoying Goods
within a Customs Region100 EURO Resolution of the Government of
the Republic of Kazakstan #1479
7 November 1995
9. Customs Fees for Convoying Goods
outside the Customs Regions200 EURO Resolution of the Government of
the Republic of Kazakstan #1479
7 November 1995
10. Fees for Information and Consulting
Services5 EURO Resolution of the Government of
the Republic of Kazakstan #1479
7 November 1995
11. Fee for Import Licensing 20 Monthly Evaluation
IndicesThe Resolution of the Cabinet of
Ministers of the Republic of
Kazakstan
16 August  N 1127
12. Fee for issuing of Certificate of
Origin450-10,000 Tenge (300
per hour 1.5 hour - 32
hours)WT/ACC/KAZ/22
Page 10
Fee Unit of Measure
RateNormative (Legal) Act
13. Fee for Certification of Conformity 500-1,500 Tenge + 300
tenge per hour (testingworks)The List of Paid Services
Rendered by the GovernmentalBodies pursuant to the Legislative
Acts of the Republic of Kazakstan
29 April 1997 (negotiable prices)
14. Fee for Veterinary Certification Issuing of veterinary
documents- 40 tenge,
examination of animals-
30 tenge, examination
while loading or
unloading per one ton -56 tenge.The List of Paid Services
Rendered by the Governmental
Bodies pursuant to the Legislative
Acts of the Republic of Kazakstan
29 April 1997 (prices to be
approved by Anti-monopolyBodies )
15. Fee for Phytosanitary Certification 500-1500 tenge + 300
tenge per hour ( testing)Decree #3928 of the President of
the Republic of Kazakstan
27 April 1998, “On the Protection
of Rights of Citizens and Legal
Persons to Freedom of
Entrepreneurship” repealedResolution #1093 of the
Government of the Republic of
Kazakstan of 10 July 1997, “On
Amendments to Resolution #676
of the Cabinet of Ministers of theRepublic of Kazakstan of
13 August 1992,” which charged
the Ministry of Economy and
Trade of the Republic of
Kazakstan with the approval of
the price list for services rendered
by the Chief State PlantQuarantine under the Ministry of
Agriculture of the Republic of
Kazakstan to enterprises and
organizations.
16. Fee for Electronic Declaration USD 56 per one copy
declaration, VAT
includedOrder #1136 of 30 June 1997, of
the Ministry of Energy, Industry
and Trade
Question 15.
We would like to see a specific, detailed plan on how Kazakstan plans to bring its licensing fees,
its 0.2 percent customs fee, and any of the other fees listed into conformity with Article VIII.This plan should include the levies of application, a menu of fees for service, and timetable with
specific dates for implementation.
We believe that Kazakstan's fees for service appl ied to imports should be consistent with WTO
provisions prior to accession.WT/ACC/KAZ/22
Page 11
Answer:
In accordance with the Edict of the President of the Republic of Kazakstan of 27 April 1998,
No. 3928 “On Protection of the Rights of Citizens and Legal Entities to the Freedom of
Entrepreneurial Activity,” and Resolution  No. 651 of the Government of the Republic of Kazakstan
of 9 July 1998, the following has been approved:
- Rules on the provision of chargeable services by the state bodies;
- Rules on establishment and determination of the amount of fee for the state bodies
services;
- Rules on keeping the State Register of chargeable services, rendered by the state
bodies.
In accordance with the Order of the Agency of the Republic of Kazakstan “On Regulation of
Natural Monopolies and Protection of Competition” of 19 March 1999 N 16-OD, the list of the State
fees has been determined, the cost of which shall be  equivalent to the cost of the services actually
provided and this list is presented in the response to question 14.
Fees for the issuance of licenses by the Customs Bodies, as well as the customs fees charged
by the customs bodies for the customs processing of goods, storage of goods in the temporary storage
warehouses, as well as customs accompanying of goods, in accordance with the Customs Code, are
the customs payment, being forecasted for transfer to  the state budget.  In this connection, transferred
customs fees can not be included in the State Register of Chargeable Services, which is being formedin accordance with the rules, established by the Resolution of the Government of the Republic of
Kazakstan of 9 July 1998, N 651. At the same time, non-incorporation of the above fees in the
Register, does not mean absence of the necessity to establish the amounts thereof within the limits of
the sums, not exceeding the amount of actually provided services. That is why the fee rate (0.2  per
cent of the customs processing) for the customs processing of goods in transit by the railroad transporthas been changed by the Resolution of the Government of 18 March 1999, N 258 to US$14 per unit
of transported vehicle.
Customs fees and charges
Question 16.
Could Kazakstan provide an update on the steps they are taking to bring their customs fees into
line with WTO requirements.  Regarding the reply to question 10 of WT/ACC/KAZ/14, we
would be grateful if Kazakstan could explain:
Why will it not be possible for Kazakstan to fully meet GATT Article VIII requirements as of
the date of accession?  What obstacles are there which can not be overcome prior to accession?
Answer:
Kazakstan has begun to persistently work towards meeting the requirements set forth in
Article VIII of GATT 1994 by way of adopting Resolution No. 258 of the Government of the
Republic of Kazakstan on 18 March 1999, which changes the rate of customs fee charged for customs
clearance of goods in railroad transit (from 0.2  per cent of the customs value) to US$14 per cargo unit
transported.WT/ACC/KAZ/22
Page 12
Question 17.
What exactly is meant by setting the price of  import processing fees in accordance with
"internationally accepted principles of accounting"?
Answer:
The reference is intended to have the same meaning as “generally accepted accounting
principles” as defined in the General Note to Annex 1 (the Interpretative Notes) to the Agreement on
Implementation of Article VII of the General Agreement on Tariffs and Trade 1994.
Question 18.
What are the specified maximum and minimum limits for import processing fees?
Answer:
Single fees are charged for customs processing at the rate of 0.2  per cent of the customs value.
Question 19.
Why are import processing fees made to depend upon the value of the goods within these
specified limits rather than the cost  of the service that is rendered?
Answer:
To bring the Kazakstan customs processing fee into conformity with GATT 1994, the
customs processing fee that is applied in the United States has been taken as a model.  According tothis model, customs processing fee is an ad valorem  fee with maximum and minimum limits.
Question 20.
Can Kazakstan clarify whether import processing fees are levied in the same manner on all
imported goods regardless of the country of origin.
Answer:
The current import processing fee is levied in the same manner on all imported goods
regardless of country of origin.  The Republic of Kazakstan Government Resolution No. 258 of
18 March 1999, changes the rate of fee charged for railroad transit of goods (from 0.2  per cent of the
customs value) for US$14 per transported cargo unit.
Storage requirements for customs clearance
Question 21.The situation portrayed in question 16 of WT/ACC/KAZ/14 and in Kazakstan’s reply is clearly
inconsistent with GATT Article VIII.  The mandatory storage requirements for customs
processing will therefore need to be eliminated prior to accession.  Could Kazakstan clarify
whether the State Customs Committee has reviewe d these requirements and if so, what was the
outcome of the review.WT/ACC/KAZ/22
Page 13
Answer:
The purpose of the temporary storage regime provided under the Customs Code is to ensure
that goods imported to Kazakstan are held and not released into commerce until Customs has
determined that all legal requirements are met and payment of any required duty, taxes or fees is
assured.  As stated in the response to question 16 of WT/ACC/KZA/14, this regime used to beimplemented initially through use of warehouses licensed by the State Customs Committee.  As noted
in the response to question 16 of WT/ACC/KAZ/14, the Customs Committee took measures to permit
alternatives to mandatory warehousing of imported goods on 8 July 1997.  The State Customs
Committee issued an order to provide for expedited Customs processing of urgent consignments,
which allows such goods to be released directly to the importer upon arrival without placement in a
temporary storage warehouse (State Customs Committee Order No. 176-P).  Similarly, in an order
registered with the Ministry of Justice on 7 August 1997, the State Customs Committee of theMinistry of State Revenues has provided for a pre-arrival declaration procedure (under which goods
may be customs cleared prior to their arrival to Kazakstan) and a periodic declaration procedure
which permits an approved importer to file one declaration for multiple shipments over a month (State
Customs Committee Order No. 161-P).  Under both procedures, goods may be released directly to the
importer without placement in a temporary storage warehouse.  In addition, by regulation of theCustoms Committee of the Ministry of State Revenues, no physical placement of goods in a
temporary storage warehouse is required where goods are cleared by Customs within three hours of
presentation and the owner of the nearest temporary storage warehouse agrees to assume
responsibility for such goods within this period of time.
 (e) Quantitative import restrictions, including prohibitions, quotas and licensing systems
Question 22.Does Kazakstan still limit alcohol imports to 20 percent of domestic consumption?  If so, this is
a violation of Article XI of the GATT, and the prac tice should be eliminated as soon as possible,
but in no case later than the date of accession.
Answer:
In the future, the Republic of Kazakstan will use import quotas as a temporary measure to
regulate foreign trade, the application of which will be in compliance with WTO requirements.
(h) Customs Valuation
Question 23.
Kazakstan states in KAZ/14 that amendments to the Customs Code that implement the WTO
Agreement on Customs Valuation will be enacted in March 1998.
Has the Customs Code been revised?  When wi ll we be able to review these amendments?
Answer:
See the response to question 7, above.WT/ACC/KAZ/22
Page 14
Question 24.
We seek a WTO consistent customs valuation regime fully implemented in Kazakstan prior to
accession.  This includes the full incorporation of  the interpretive notes in Kazakstan law, and
the adoption of the decisions on the valuat ion of software and other relevant decisions.
Answer:
With regard to the Amendments to the Customs Code, which do not include changes
necessary to conform the Code to the clarification provision the WTO Agreement on Customs
Valuation, but cover the norms, which do not comp ly with the above Agreement, please see response
to question 7, above.  However, right after the adoption of the amendments to the Customs Code, the
implementing regulations of the normative acts wi ll be brought into compliance with the above
documents. Kazakstan will incorporate the interpretative notes and WTO Valuation Committee
decisions into Kazakstan law prior to accession.
(i) Other customs formalities
Question 25.
In question 15 of WT/ACC/KAZ/14, a member noted certain requirements for customs
documentation that appeared to constitute arbitrary and costly burdens on importation.
Kazakstan stated in response that it was "current ly in the process of analyzing this practice and
will provide information during the next Working Party meeting".  Is Kazakstan prepared to
respond to question 15 of WT/ACC/KAZ/14?
Answer:
The introduction of a Unified Automated Information System (“UAIS”) is necessary to fulfill
obligations of the Customs Committee to provide the external trade with full and reliable information
and statistics and to comply with international st andards (electronic copies are used in the United
States, European Union and other me mbers).  In order to establish an UAIS, the Government of the
Republic of Kazakstan attracted an investor, the closed joint stock company “Akcept.” Based on theassessment method of investment projects devel oped by UNIDO, a temporary fee in the amount of
US$56 was established for the issuance of an electronic copy of a cargo customs declaration (CCD).
In 1999, this amount of the fee will be at the same level.  In the future, the Government of the
Republic of Kazakstan will consider the opportunity to decrease this temporary fee. Taking into
account that the electronic customs declaration is a standard in world practice, the temporary fee in
the amount of US$56 for the purpose of the UAIS development has been conditioned by the value of
costs for the implementation of the project.  Such United States companies as Sun Microsystems,Informix Inc, Dell and Hewlett Packard, which won the tender, participated in the implementation of
the Project on Introduction of UAIS, which was supported by the United States Embassy in
Kazakstan.  Measures on protection of confidential information of the participants of external
economic activity are envisaged in UAIS.  The introduction of new technologies required gradual
cancellation of the previous one and that is the reason of use of paper customs declaration.
Question 26.
In question 16 of WT/ACC/KAZ/14, certain questions were raised on the issue of temporary
customs warehouse storage Kazakstan stated that it was "reviewing the issue".  What are the
results of the review?WT/ACC/KAZ/22
Page 15
Answer:
The purpose of the temporary storage regime provided under the Customs Code is to ensure
that goods imported to Kazakstan are held under Customs control and not released into commerce
until Customs has determined that all legal requirements are met and payment of any required duty,
taxes or fees is assured.  As described in question 16 of WT/ACC/KAZ/14, this regime has beenimplemented primarily through use of warehouses licensed by the State Customs Committee.  As
noted in the response to question 16 of WT/ACC/KAZ/14, the State Customs Committee has taken
measures to permit alternatives to mandatory warehousing of imported goods. On 8 July 1997, the
State Customs issued an order to provide for expedited Customs processing of urgent consignments,
which will allow such goods to be released directly to the importer upon arrival without placement in
a temporary storage warehouse (State Customs Co mmittee Order No. 176-P). Similarly, in an order
registered with the Ministry of Justice on 7 August 1997, the Customs Committee of the Ministry ofRevenues has provided for a pre-arrival declaration procedure (under which goods may be customs
cleared prior to their arrival to Kazakstan) and a periodic declaration procedure (which permits an
approved importer to file one declaration, as permitted by Customs, for multiple shipments over a
month) (State Customs Committee Order No. 161-P) . Under both procedures, Customs goods may be
cleared and released directly to the importer without placement in a temporary storage warehouse. Inaddition, by regulation of the State Customs Committee of the Ministry of State Revenues, no
physical placement of goods in a temporary storage warehouse is required where the goods are
cleared by Customs within three hours of presentation,  and where the owners of a nearest temporary
storage warehouse agree to assume responsibility for such goods within this period.
Question 27.
We understand that Kazakstan requires traders to have an import or export "transaction
passport" which contains a copy of certain information contained on customs documentation
normally required for clearance, e.g., price paid for the goods, the name of the purchaser, the
date of delivery, etc.
This would appear to be an unnecessary duplication of documentation already available to
customs authorities. Are fees charged for the "pa ssport"?  If so, please indicate.  How long does
it take to acquire this document? What approvals are necessary? Why is it required?
Answer:
The purpose of the procedure for the use of a transaction passport is to control the use of
currency funds by importers and exporters in accordance with the currency legislation of Kazakstan.
Currency controls shall ensure that currency earnin gs flow into the country in full and in a timely
fashion as well as to ensure justified use of funds in foreign currency and Tenge for the purpose ofimport.
The basic document of currency control is the transaction passport. The transaction passport
on import is used in order to implement the monitoring of import deliveries, equivalent in value to the
funds, which have been transferred abroad in accordance with the requirement of the currencylegislation. The transaction passport on export is aimed at implementation of the monitoring of the
obligation of exporters to ensure the receipts of foreign currency funds to a bank account in
Kazakstan, in value equivalent to the exported goods.
The passport contains the information on the nature of the transaction, terms of payment,
currency of payment, the value of contract, the amount of monetary funds subject to receipt
(transference), payee (payer), bank details of a resident of the Republic of Kazakstan. Customs Bodies
do not charge for the transaction passport.WT/ACC/KAZ/22
Page 16
The transaction passport is issued within four days. This term has been established in order to
consider documents in the customs bodies and a bank, to check the consistency of the submitted
documents with the terms of the contract, to verify signatures, to confirm the existence of a bank
account, and exchange the documents between the customs body and the bank. It should be taken into
account that this term for issuing of the transaction passport does not cause any delays in customsprocessing of goods or payments because, in accordance with the regulation, a participant of the
external activity shall complete the transaction passport registration prior to the initiation of the
customs processing or before the payments is due.
(k) Application of internal taxes on imports
Concerning value added taxes:Question 28.Kazakstan's reply to question 17 of WT/ACC/KAZ/14 refers to a number of categories of VAT
exemptions, applied to imports. We would appreciate clarification of the following exemptions:Regarding category (ii) of VAT exemptions, what are the "norms of duty-free import of goods"
which apply?  Are any such exemptions in an y way conditional on the origin of good or
services?
Answer:
In the answer to question 17 of WT/KAZ/14 the reference to “import of goods by individuals
in accordance with the norms of the duty-free import of goods” means those goods that are under the
personal exemption from duty for non-commercial im portation by individuals.  Article 108 of the
Customs Code provides that, under terms established by the Government, physical persons mayimport goods exempt from duty not intended for production or other commercial activities.  Pursuant
to Government Regulation No. 1712 (31 December 1996), physical persons may import without
payment of duty goods the value of which does not exceed $2000 and weigh not more than 70
kilograms.  In accordance with Article 61 of the Decree of the President of the Republic of Kazakstan
“On Taxes and Other Obligatory Payments to the Budget” (the law referenced in the answer toquestion 17 of WT/KAZ/14) such goods are also exempt from VAT on importation.  The exemption
is not conditional on the origin of the goods.
Question 29.
Regarding category (iii) of VAT exemptions, what "organizations funded by the state budget"
enjoy this exemptions?  For example, does any private organization receiving a subsidy receiveexemptions? Are any such exemptions in any way conditional on the origin of the good or
services?
Answer:
Beginning 1 April 1999, the VAT exemptions are granted to all organizations that acquire
technological equipment with state budgetary funds.  At the same time, imports of other goods by
such organizations, including State ones, are not VAT exempt.WT/ACC/KAZ/22
Page 17
Question 30.
Regarding category (v) of VAT exemptions, could Kazakstan please provide details of the
provisions of the treaties under which these ex emptions are provided and how the reciprocal
payments are provided?
Answer:
“Category v” described in the response to question 17 of WT/ACC/KAZ/14 refers to Articles
57 and 61 of the Tax Code, which provide an exemption for import of goods supplied under
international agreements to which Kazakstan is a party.  At present, this exemption is applied only to
imports from certain CIS countries pursuant to an agreement of 13 March 1992 (“Agreement between
the Governments of CIS Countries on Coordinated Pr incipals of Tax Policy”).  Article 2 of that
Agreement provides for a uniform system for calculation and payment of VAT assessment among
CIS countries, pursuant to which VAT is collected at the point of production rather than destination,
thus continuing the practice that existed prior to division of the Soviet Union into the independent
countries of the CIS.  As noted in the response to question 25, below, Kazakstan has entered into
separate agreements with the Kyrgyz Republic, Moldova and Azerbaijan, and is actively negotiatingwith the remaining CIS countries, to change to a sy stem of VAT assessment at the point of destination
(import).
Question 31.
Kazakstan states in the reply to question 17 of WT/ACC/KAZ/14 that "VAT is currently being
applied on an MFN basis" to "all imports subject to VAT."
Will Kazakstan commit to applying VAT on an MFN basis in the future?
Answer:
At present, Kazakstan does not collect VAT on imports from certain CIS countries.  Goods
imported from Georgia, Ukraine, Uzbekistan, Russia , Belarus, Turkmenistan, Tajikistan and Armenia
are not subject to VAT on import.  However, Kazakstan is negotiating with these CIS countries tochange to a system of charging VAT on imports in accordance with the destination principle.  As soon
as the relevant agreements with these CIS countries are reached and ratified, VAT will be charged on
imports without regard to the country of export of the goods. Such agreements have been reached with
Kyrgyz Republic, Moldova and the Republic of Azerbaijan.
Question 32.
The response to question 17 in WT/ACC/KAZ/14 stated that "all imports subject to VAT are
charged VAT regardless of source."  VAT is currently being applied on an MFN basis. Products
originating in CIS and non-CIS countries are charged VAT."
WT/ACC/KAZ/17, however, states that the newly promulgated presidential edict "on taxes and
other mandatory payments to the budget" 1998 No. 260 of 10 July 1998, eliminates "double
taxation" for CIS- countries vis-a-vis VAT.
Does this mean that Kazakstan now does not apply VAT taxes to imports from CIS?
Answer:
See the response to question 5.WT/ACC/KAZ/22
Page 18
In accordance with the Agreement of 13 November 1992 between the governments of the CIS
countries “On Coordinated Principles of Tax Policy in Settlement for Goods, Works and Services
within CIS Countries” the “place of origin” principle for collection of VAT has been established
correspondingly.  VAT is not levied on the import of goods from the CIS countries.
Upon conclusion of agreements between Kazakstan and separate CIS countries on principals
of levying indirect taxes on export and import of goods, Kazakstan is going to use the “place of
destination” principle in levying VAT. For exampl e, with respect to the goods, which are imported
from the Kyrgyz Republic and the Republics of Azerbaijan (the countries with which the agreements
on principals of levying of indirect taxes on import and export of goods have already been concluded
and become effective), VAT shall be paid on importation thereof to Kazakstan.
Similar agreements have been signed with the Republic of Belarus, Ukraine, the Republics of
Uzbekistan, Moldova and Georgia will become effective after the fulfillment of intrastate procedures
(with respect to the Agreement with the four latter countries, the Republic of Kazakstan has already
fulfilled all intrastate procedures). Agreements wi th the Republics of Turkmenistan and Tajikistan are
currently at the stage of signing. Procedure for the collection of excise taxes on import and export issimilar to the procedure of the collection of VAT.
Question 33.
Where do matters stand on the harmonization of excise rates for imported goods and
domestically produced goods (reply to que stion 19 of WT/ACC/KAZ/14 refers). When will
harmonization be completed for all of the products for which excise is not presently applied on a
national treatment basis?
Answer:
At present, excise rates for imported and goods produced domestically are the same with the
exception of five categories of goods:  alcohol, tobacco, automobiles, gasoline and diesel fuel.  The
process of harmonization will continue in 1999.
Question 34.
The Kazak delegation has noted that, while it has signed bilateral agreements with Uzbekistan,
Moldova and Azerbaijan for the application of VAT at destination, Kazakstan is still in
negotiation with Russia.  We would welcome an update on the progress in those negotiations.
Answer:
VAT is levied on goods imported from the Kyrgyz Republic and Republic of Azerbaijan at
destination.  Similar bilaterals have been signed with the Republics of Belarus, Ukraine, Uzbekistan,
Moldova and Georgia.  They will take effect after the concerned countries complete all appropriate
internal legal procedures (Kazakstan has already co mpleted all internal legal procedures in respect of
the bilaterals with the last four countries of the aforementioned).  Bilaterals with the Republic of
Belarus, Turkmenistan and Tajikistan are in the process of being signed.  Negotiations with Russia are
still in progress in terms of the further elaboration of the content of the Bilateral and the timeline for
its conclusion.  The procedure to levy excise taxes on imports and exports of goods is similar to the
procedure used to collect VAT.
The Agreement of 13 November 1992, between the governments - CIS members on the
concerned principles of tax policy in respect of goods, works and services distributed in the territoriesWT/ACC/KAZ/22
Page 19
of the CIS members provides that VAT is collected at the place of origin.  Therefore, VAT is not
collected on importation of goods from the CIS member states.
While agreements on principles of collection of indirect taxes on imports and exports of
goods are being concluded with the CIS member states.  Kazakstan is switching over to VAT
collection at destination.  For example, goods that are imported from the Kyrgyz Republic and theRepublic of Azerbaijan (the states with whom Kazakstan has appropriate agreements on the principles
of collection of indirect taxes that have taken effect) are subject to VAT payments on their
importation into Kazakstan.
Question 35.
WT/ACC/KAZ/17 also seems to indicate that Ka zakstan does apply VAT to imports from the
Kyrgyz Republic and Azerbaijan.
Can Kazakstan list all the CIS countries to which it applies the destination principle in VAT
application?
Answer:
See the response to question 32, above.
Question 36.
Please update information on which countries are exempted from application of the VAT to
their exports to Kazakstan. Please indicate when Kazakstan will bring its VAT application into
line with Article II of the GATT.
Answer:
See the response to question 32, above. Products from CIS countries (Georgia, Ukraine,
Uzbekistan, Russia, Belarus, Turkmenistan, Armenia and Tajikistan) are not subject to VAT on
import. Kazakstan is negotiating with these CIS countries to change to a system of charging VAT onimports in accordance with the “destination principle”. Agreements have been reached with the
Kyrgyz Republic, Moldova and the Republic of Azerbaijan. As soon as similar agreements with the
other CIS countries have been reached and ratified, VAT will be charged on imports regardless of the
exporting country.
Question 37.
Concerning excise taxes:
The response to question 17 in WT/ACC/KAZ/14  stated that "as for excise taxes ... goods
originating and imported from CIS countries are charged excise taxes at source rather than
destination."
The response to question 19 states "work towards further harmonization is currently in
progress".
Answer:
Excise taxes will be charged on imports from all CIS countries in accordance with the
destination principle as soon as the relevant agreements have been ratified with CIS countries, toWT/ACC/KAZ/22
Page 20
which this principle does not yet apply. Kazakstan has to date reached agreements to charge excise
taxes in accordance with the destination principl e with two CIS countries (Moldova and Azerbaijan).
An agreement with the Kyrgyz Republic has also been negotiated.
Question 38.
Please update the response to question 19 in WT/ACC/KAZ/14  and list by HS number all
domestic and imported products to which an excise tax is applied, and list the rate at which it is
assessed on imports and domestic products, and what is being done to harmonize rates among
import suppliers
As has been indicated in previous meetings, it is imperative that Kazakstan state categorically
when it will adopt the destination principle in application of domestic taxes (both VAT andexcise) to imports from all its trading partners. There is no Article XXIV exception from
application of domestic taxes to imports from other customs union or FTA trading partners.
Exemption of CIS imports from VAT and excise taxes, when the tax is applied to other imports,
is discriminatory and a violation of Article II of the GATT.
Answer:
Updated information in the requested format is provided herewith. With regard to the
question about what is being done to harmonize rates among import suppliers, please see the
responses to questions 20 and 23, above.WT/ACC/KAZ/22
Page 21
Attachment 1 to the Resolution of the Government
 of the Republic of Kazakstan of 26 June 1998 N 608
EXCISE TAX RATES
on excisable goods, produced in the Republic of Kazakstan and imported to the customs territory
 of the Republic of Kazakstan, and gambling business
Commodity
codeDescription of products Unit of
measure-
mentExcise rates on
produced goods
(in EURO per unit
or in % to the
value in whole
selling price
without VAT and
Excise taxes;
Tenge per kilowatt
in hour)Excise rates for
imported goods (in
EURO per unit or in %
to the customs value in
tenge per kilowatt in
hour)
123 45
2402 Tobacco items, other
tobacco items, containtobacco1000 units 0,75 2,0
Ex 0301,
0302,
0303,
0304,
0305,
1604Sturgeon and Salmon,
Caviar of Sturgeon and
Salmon, delicacy of
Sturgeon and Salmon and
Caviar100% 100%
Ex 7113,
710239000,
7114,
7116Jeweler’s items of gold,
platinum or silver10% 10%
Ex 701321,
701331,701391,
940510500Lead crystal items, crystal
lamps-- -
From 9303,
9304,
9305Firearms and gas arms 10% 10%
271600 000 Electricity tenge/
kilowatt per
hour0,03 0,03
8703 Cars 10%, but not less than
0,5 EURO/cub.cm
(only for the cars with
engine capacity more
then 3000 cub.cm)
Gambling business 20%WT/ACC/KAZ/22
Page 22
Attachment 1 to the Resolution of the Government
of the Republic of Kazakstan of 22 April 1999 N 455
EXCISE TAX RATES
on excisable goods, produced in the Republic of Kazakstan and imported to the customs territory
of the Republic of Kazakstan, and gambling business
Commodity
codeDescription of products Unit of
measure-
mentExcise rates on
produced goods
(in EURO per unit
or in % to the
value in whole
selling price
without VAT and
Excise taxes;
Tenge per
kilowatt in hour)Excise rates for imported
goods (in EURO per unit
or in % to the customs
value in tenge per
kilowatt in hour)
123 45
271000270
-
271000360Gasoline 1 ton 5000 133 EURO
Except for:
Exported to CIS countries
where indirect taxes are
levied according to the
principal country of origin1 ton 2000
From
271000610,
271000650,
271000690Diesel fuel 1 ton 600 88 EURO
From
270900Crude oil, including gas
condensate1 ton - -WT/ACC/KAZ/22
Page 23
Attachment 5 to the Resolution of the Government
of the Republic of Kazakstan of 24 April 1999 N 465
EXCISE TAX RATES
on excisable goods, produced in the Republic of Kazakstan and imported to the customs territory
of the Republic of Kazakstan, and gambling business
Commodity
codeDescription of products Unit of
measure-
mentExcise rates on
produced goods
(in Tenge per unit
or in % to the
value in whole
selling price
without VAT and
Excise taxes;
Tenge per
kilowatt in hour)Excise rates for imported
goods (in EURO per unit
or in % to the customs
value in tenge per
kilowatt in hour)
123 45
Ex. 2207
  2208All kinds of spirits (except
those delivered for theproduction of medical and
pharmaceutical items, if the
producer has a license in
the Republic of Kazakstan
for the right to producesuch items, as well as
spirits delivered to medical
institutions)1 litre 300 3
From all kinds of spirits,
delivered for the production
of liquor-vodka items,
strong beverages, strong
juices, wine, balsam, if the
producer has a license ofthe Republic of Kazakstan
for the right to produce
such items1 litre 30 0.3
- Vodka, Liquor-vodka
items, Strong beverages,
strong juices and balsam,1 litre 70 1.7
- Brandy 1 litre 20 1.7
Ex 2204
(except
2204 30),
2205,
2206 00Wine 1 litre 10 0.4
- Sparkling wine 1 litre 20 0.4
- Wine materials 1 litre 10 0.4
2203 00 Beer 1 litre 5 0.2
Kazakstan will adopt the destination principle in application of VAT and excise taxes to CIS
countries after concluding appropriate agreements, since as indicated in the response to the preceding
questions, Kazakstan is actively negotiating agreements with other CIS countries for this purpose.WT/ACC/KAZ/22
Page 24
(l) Rules of origin
Question 39.We still hope to see the amendments to the Customs Code that are intended to address the issues
we raised in question 31 of WT/ACC/KAZ/11.
Answer:
With regard to the status of amendments to the Customs Code, which include changes
necessary to conform the Code to the WTO Agreement on Rules of Origin, please see the response to
question 7, above.
(m) Anti-dumping regime
(n) Countervailing duty regime
(o) Safeguard regime
Question 40.Has Kazakstan provided the most recent drafts and texts of its antidumping, countervailing
duties, and safeguard laws for Working Party review? If not, please do.
Answer:
The Law of the Republic of Kazakstan “On Measures of Protection of Internal Market of
Goods” was adopted and took effect on 28 December 1998. This law have been submitted to the
WTO. The laws “On Anti-dumping” and “On Subsid ies and Countervailing Measures” are currently
at Majilis of the Parliament. Upon translation thereof, they will be submitted to the WTO Secretariat.
3. Internal Policies Affecting Foreign Trade in Goods
(a) Industrial policy, including subsidy policiesQuestion 41.We understand that Kazakstan is currently discussing the development of an industrial policy
programme.
Could Kazakstan describe these proposals, including information on any trade-related
measures, state-ownership proposals, local content requirements, budgetary subsidies, or
subsidies of any other kind that are being contemplated?
Answer:
At this time, the concept of the industrial policy is under debate within the Government.
Kazakstan will provide the requested information to the Working Party when the final draft is
approved.WT/ACC/KAZ/22
Page 25
Question 42.
Would this plan involve the establishment of an y State enterprises with special or exclusive
mandates or other benefits?
Answer:
In connection with the restructuring of the State bodies, the functions, which are not typical
for such bodies, have been transferred to the State enterprises, which implement their activity in the
area of state monopoly.
Non-agricultural subsidies
Question 43.
In question 38 of WT/ACC/KAZ/14, the US noted Kazakstan's responses to question 47 of
WT/ACC/KAZ/11 and question 68 of WT/ACC/KAZ/6  which reported that Kazakstan intends
to notify some prohibited subsidies and seek a transition period within which to bring them intoconformity with the subsidies agreement or eliminate them. Kazakstan noted that subsidies for
food, light, coal, machinery building and cons truction materials industries were involved.
When will these proposals be tabled? What step s has Kazakstan taken during the last year to
provide for the eventual elimination of these prohibited subsidies? By what fixed date is
Kazakstan prepared to have eliminated these programmes?
Answer:
Kazakstan acknowledges that certain sectors of its economy receive prohibited subsidies at
present. As noted in document WT/ACC/KAZ/14, Kazakstan intends to take advantage of Article 29
of the WTO Agreement on Subsidies and Countervailing Measures from the moment of accession to
the WTO to begin gradual elimination of such prohibited subsidies during the following seven years
as indicated in the response to question 38 of document WT/ACC/KAZ /14.
Question 44.
Regarding the response to question 48 of WT/ACC/KAZ/11 please confirm that regional
subsidies (so-called) are budget transfers to regional governments solely for the purpose of
carrying out governmental activities, e.g. creating local infrastructure, running schools, making
social income support payments unrelated to pro duction of goods, etc. If this is not correct,
please elaborate on the original response to clarify the issue.
Answer:
In accordance with the Law “On Budgetary System” No. 3571 of 1 April 1999, subventions
are officials transfers, which lower level budgets will receive from higher level budgets within thelimits of the approved amounts for the purpose of targeted use or programmes. Amounts of official
transfers of budget-supported oblasts for each fiscal year are determined by the Law of the Republic
of Kazakstan “On Republican Budget” for the appropriate year. Official transfers (subventions) are
forwarded to the budget of oblasts first of all for the financing of expenditures, which are not subject
to sequestrating, in other words for payment of wages to the employees of budgetary sphere, fees tothe state social insurance fund, as well as payment of the state social benefits. The Ministry of Finance
of the Republic of Kazakstan implements control over specific purpose use of transfers, which are
transferred from the republican budget to the budgets of oblasts.WT/ACC/KAZ/22
Page 26
Question 45.
Concerning Article 7 of the law on State support to direct investment of 28 February 1997
which stipulates that the State Committee of the Republic of Kazakstan on Investments may
grant income tax exemptions aimed at supporting direct investments and developing newindustries:
Will Kazakstan alter this law to ensure conformity with the WTO Agreement on Subsidies and
Countervailing Measures?
Answer:
The Law “On the State Support of Direct Investments” is in compliance with the WTO
Agreement on Subsidies and Countervailing Measures. Pursuant to Article 7 of this Law and other
relative normative acts of the State Committee for Investments of the Republic of Kazakstan,
enterprises that invest in amounts less than US$10 million in the priority sectors of the economy
receive standard tax benefits (privileges) for a limited period of time depending of the sector of theeconomy and the amount of such investments. The priority sectors of the economy are determined on
the basis of the “List of Most Important Productions for the Attraction of Domestic and Foreign
Investments until the Year 2000” approved by th e State Committee for Investments of the Republic of
Kazakstan. Such benefits are not prohibited under the WTO Agreement on Subsidies and
Countervailing Measures, because neither expansion of exports nor import substitution is amongst thecriteria for granting such benefits.
(b) Technical regulations and standards
Question 46.We appreciate the information provided by Kazakstan to date. The information in Annex 5 of
WT/ACC/KAZ/3 is particularly interesting. We have some concerns, however.
Question 42 of WT/ACC/KAZ/14 asks for information on "technical regulations" but the
response refers to "standards".
Does Kazakstan recognize a difference in law and in practice between "technical regulations"
and "standards".
Answer:
In the standardization system of the Republic of Kazakstan, technical regulations are
contained in the normative document "standard" as well as other normative documents. A “standard”
includes mandatory and recommended requirements. The requirements in the standard that are
mandatory are called technical regulations.
Question 47.
Is Kazakstan interpreting "technical regulations" to mean "mandatory standards"? Is
Gosstandard truly the only organization in Kazakstan empowered to issue technical
regulations/mandatory standards?WT/ACC/KAZ/22
Page 27
Answer:
See the response to question 46 concerning the definition of technical regulations.
The Committee on Standardization, Metrology and Certification of the Ministry of Energy,
Industry and Trade is the only body empowered to issue officially standards.
Question 48.
While responses to questions in WT/ACC/KAZ/3, WT/ACC/KAZ/6 and WT/ACC/KAZ/14
address publication of draft standards (which possibly includes technical regulations as well), it
is not clear that Kazakstan has in place a system for soliciting comments on these drafts or for
considering these comments in drafting final regulations.
Please clarify if Kazakstan has in law or regulation a procedure requiring prior publication for
comment and a process to accept comments on standards related proposals.
Answer:
Currently, interested parties may submit comments on draft standards.
The comments are taken into account in the process of finalizing draft standards. A standard
is adopted only after comments are received, listed and attached thereto, and agreement is reachedbetween the interested organizations.
The new draft Law “On Standardization” (WT/ ACC/KAZ/21) contains a provision stating
that in the absence of an international standard, when a standard is being developed, annotations to
such standards are to be published in the mass media and special editions of the Committee onStandardization, Metrology and Certification of the Ministry of Energy, Industry and Trade for
comment by interested parties. Under this Law, the state standardization system establishes a
procedure to process and analyze comments.
Question 49.
On a related issue, the response to Question  73 in WT/ACC/KAZ/6 states that "standards in
Kazakstan have mandatory and recommended requirements.  Thus it appears that it would be
necessary for a manufacturer or importer to id entify any relevant standards for their product,
and then to obtain copies of these standards and read them to determine which requirements
are mandatory and which are only recommended,
If this is the case, how does this meet the transparency requirements of the WTO?
Answer:
The recommended requirements that were referenced in Question 73 in WT/ACC/KAZ/6 are
contained in each standard on products along with the mandatory requirements. Any interested party
can obtain necessary information at the Inquiry Point.
Question 50.
In the response to question 42, in WT/ACC/KAZ/14, Kazakstan also notes that the law on
standardization and certification is being amended.WT/ACC/KAZ/22
Page 28
Has the law been amended? If so, please provide a copy of the new law.
Answer:
The Republic of Kazakstan is currently in the process of drafting two new laws that will meet
the requirements of the WTO TBT Agreement: a Law “On Standardization” and a Law “OnCertification.” Copies of these two Laws have been forwarded to the WTO Secretariat
(WT/ACC/KAZ/21).
Question 51.
In ACC/KAZ/14,  the response to question 44 states that “manufacturer” self declaration (for
mandatory certification) may be used only in  cases where the testing of a product is not possible
by any of the accredited bodies (foreign or domestic) of Gosstandard."
This seems somewhat counterintuitive, since manufacturers' self declaration is more common
for products where specified requirements are well defined and relevant tests easily replicated.
The Kazak definition appears to reserve manu facturers self-declaration for products that
cannot be adequately tested or certified by a qualified third party.  Please clarify.
Answer:
The procedure for certification of products provides that a manufacturer’s declaration can be
filed for products, for which relevant tests can be easily replicated and can be performed by the
producer and in respect of products, which cannot be adequately tested by a third party.
Other documents are also required to be presented, such as records of the testing procedures
performed and documents that guarantee safety of the product. Upon review of all necessary
documents, a certificate may be issued by an accredited laboratory (center).
Question 52.
Our exporters have identified a number of prob lems with Kazakstan's standards certification
system. These are mostly issues of transparency, burdensome and unnecessary procedures, and
due process that would appear to engage the TBT Agreement provisions in Annex III:E that
state that standards should not be applied with the effect of creating unnecessary obstacles to
international trade.
Why are original certificates of conformity ne cessary at each step in the approval process?
Would not certified copies be sufficient?
Answer:
Copies of the certificate may be used, however, they must be issued and certified by the body
that issued the original certificate of conformity. This procedure is designed to prevent use offraudulent certificates. The importer can obtain as many copies as needed. Such copies are issued on
blank forms that are numbered and registered, and contain watermarks. The cost of the forms is 7-8
Tenge .
Question 53.
Does Kazakstan have regulations addressing procedures for sampling in the certification
process, to ensure that excessive samples are not taken?WT/ACC/KAZ/22
Page 29
Answer:
The number of samples that are required for testing for each product are listed in the standard
on the concerned product or in a separate document called “Rules of Certification of Certain
Products.”  Information on the required number of samples for each product can be obtained from theInquiry Point.
Question 54.
Why is it necessary to receive separate permis sion from the chief veterinarian to transport
imports within the Kazakstan market even aft er obtaining a valid certificate of conformity?
Answer:
Such permission from the chief veterinarian for importation of certain products, even with the
certificate of conformity, is legally justified under Article 2 of the Agreement on Technical Barriers to
Trade, namely the intention to protect the health and safety of people or animals.  This procedure isobligatory for importers and domestic producers of goods in transporting goods that are subject to the
state veterinary control (#06-1-4-216 of 2 August 1996).
Question 55.
Why must new certificates of conformity be ob tained for pharmaceutical imports identical to
those that have already obtained the certificate before?
Answer:
In order to protect the health and safety of people and animals, pharmaceutical products are
included on the official list of products that require mandatory certification.
(c) Sanitary and phytosanitary measures, including measures taken with respect to imports
Question 56.
We appreciate Kazakstan’s  candor in response to question 45 outlining the deficiencies in its
SPS regime. We look forward to reviewing the prop osed draft legislation, to assist Kazakstan in
developing WTO-consistent legislation prior to the next Working Party meeting.
Answer:
The Law on Plant Quarantine was enacted on 19 February 1999, and submitted to the WTO in
March 1999 (WT/ACC/KAZ/20).
(d) Trade-related investment measures
Question 57.We appreciate Kazakstan’s identification of TRIMs inconsistent measures (i.e., the preference
for the use of local inputs in foreign investment activities) in the Law on petroleum and the lawon subsurface utilization.WT/ACC/KAZ/22
Page 30
We expect that Kazakstan will initiate efforts to eliminate these TRIMs inconsistent measures
now, in the course of accession negotiations.
We believe that Kazakstan should contemplate the elimination of the practice prior to its
accession.
If Kazakstan has a different proposal, it should incorporate a fixed date for the elimination,
based on Kazakstan's understanding now that the practice is inconsistent with WTO
membership.
Answer:
The law “On Petroleum “and the law “On Subsoil” contain provisions requiring use of
domestic equipment, materials, and final products manufactured in Kazakstan, if they are competitive
in terms of ecological and technical qualities, price, working parameters, and terms of delivery.
Kazakstan, as a country with transition economy, offers to have these inconsistencies eliminated
within the transition period after the accession to the WTO.
(e) State-trading practices
Question 58.Please confirm that the laws and regulations governing the trading activities of state owned
enterprises in Kazakstan, whether or not notified as state trading enterprises, will be applied in
conformity with the relevant provisions of the WTO Agreement, including where relevant,
Article XVII of the GATT 1994, the WTO Understanding  on that article, and Article VIII of the
GATS.
Answer:
Kazakstan confirms that laws and regulations regulating trade activity of state owned
enterprises will be applied in accordance with the WTO Agreement.
Question 59.
Please confirm that 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, Kazakstan
will abide by the provisions for notification , non-discrimination, and the application of
commercial considerations for trade transa ctions incorporated in those provisions.
Answer:
Kazakstan confirms that for any enterprise whos e activities are subject to Article XVII of the
GATT 1994, the WTO Understanding on that Article, and Article VIII of the GATS, Kazakstan will
abide by the provisions for notification, non-discrimination, and the application of commercialconsiderations for trade transactions incorporated in those provisions.
(l) Government procurement practices
Question 60.We note Kazakstan’s commitment to join the WTO Agreement on Government Procurement
after accession, and to make alterations in its laws to meet its provisions.WT/ACC/KAZ/22
Page 31
Answer:
It is the intention of the Republic of Kazakstan to bring its legislation governing state
procurement of goods and services into conformity  with the requirements of the WTO Agreement on
Government Procurement after Kazakstan’s accession to the GPA. Kazakstan offers to discuss the
timetable and procedures for acceding to the GPA during negotiations.
4. Policies Affecting Foreign Trade in Agricultural Products
(b) ExportsAgricultural Export Subsidies
Following are additional questions on WT/ACC/SPEC/KAZ/2:
Question 61.We appreciate Kazakstan’s submission of its rev ised WT/ACC/4 information and note that this
document represents an improvement over the original WT/ACC/4 submission. Nevertheless,
we have additional modifications to suggest and additional information to request.
We appreciate the additional details and descri ptive information provided in the answer to
question 38  of WT/ACC/KAZ/11.
However, it would be helpful if Kazakstan would resubmit another revision of its WT/ACC/4
document with these details in cluded in the document itself
It would also be very helpful to the Working Party if Kazakstan would consult with the WTO
Secretariat for guidance on use of the proper format for completing the supporting tables on
domestic support, using the guidelines outlined in technical memo WT/ACC/4.
For example, merely copying the descriptions from Annex 2 does not help to clarify Kazakstan's
domestic policies. Please resubmit these tables following the guidelines for completing ACC/4.
We again ask the Government of Kazakstan to provide a complete description of all measures
listed under 2.(f) and provide full justification for listing these items under DS:1 as green box
measures.
Answer:
Kazakstan is completing the preparation of an updated version of document WT/ACC/4,
where the agricultural subsidies for the period from 1996 up to 1998 will be presented.
In attached table DS:1, Kazakstan continues to insist that its state procurement of grain as
public stockholding is carried out only for food security purposes.
Question 62.
We are unsure that Kazakstan's grain procurement programme meets the criteria of paragraph
3 of Annex 2, which requires that purchasing for public stockholding for food security purposesbe made at market price. Could Kazakstan clarify how these purchases are made?WT/ACC/KAZ/22
Page 32
Answer:
The state procurement of grain for food security purposes were effectuated by the State
Product Contract Corporation since 1996 (please, see the responses to questions 54-55 in Document
WT/ACC/KAZ/6/Add.1) at market prices at the co mmodity exchange, i.e. in compliance with the
requirements of paragraph 3 of Annex 2. Therefore, they were included in the “green box” measures.
Question 63.
Will Kazakstan please explain the difference between preferential credits to agriculture (in
table DS:2) and direct credits to agricult ural producers (in tables DS:4, DS:9)
Answer:
See the response to Question 61.
Question 64.
Please clarify for the Working Party what is me ant by "repay the debts on salaries" in tables
DS:4 and DS:9 for 1994? Are these wages to state sector workers or are they a form of income
support?
Answer:
See the response to Question 61.
Question 65.
We appreciate the inclusion of value of production in Kazakstan’s supporting tables, including
production values for specific products.
It would be helpful if Kazakstan also added in the value of production for sugar beet, potato,
and corn seeds.
Answer:
The updated version of document WT/ACC/4, the part related to domestic agricultural
support measures, contains all required data on the volumes of production for subsidized agricultural
products.
Question 66.
This member would appreciate further clarification and descriptive information on measures
reported in supporting tables DS:9, especially th e items "reschedule of arrears, foreign forgiven
debt, and farm's development."
Answer:
See the response to Question 61.WT/ACC/KAZ/22
Page 33
Question 67.
In WT/ACC/4 Kazakstan indicates that it does not apply export subsidies to agricultural
products.  Can Kazakstan pledge that it will not use export subsidies of any kind in the future?
Finally, we note that Kazakstan reports certain items in Tenge and others in US Dollars.  Please
resubmit all AMS calculations in local currenc y, including share of AMS in total production.
Answer:
See the response to Question 61.
Question 68.
We are pleased that Kazakstan has indicated that it does not use export subsidies.  We expect
that export subsidies will be bound at zero as appears to be indicated by the table on export
subsidies.
Answer:
Kazakstan is finalizing an updated version of document WT/ACC/4 that will contain
agricultural subsidies for 1996 - 1998.
(e) Internal Policies
Question 69.The Kazak delegation noted during the Working Party that further information on agriculture
support programmes in year 1997 would be submitted by 10 November 1998. We would
welcome early submission of that information.
Answer:
Kazakstan is completing its work to prepare an updated version of Document ACC/4 which
will contain subsidies provided from 1996 to 1998.
Agricultural domestic support
Question 70.
Some of our concerns raised by the original tables  have been addressed in the revision.  We note
however that in the revised tables provided the re have been changes in the level of figures from
the earlier ones provided. We hope that some  of the changes are the result of further
examination of the domestic support programmes and not an attempt to increase the amount of
the aggregate measure of support (AMS) to allow greater flexibility it introduce new amber box
policies in the future, when the budgetary position may be better.
Could Kazakstan confirm that the figures provid ed in the tables are actual expenditure rather
than budgetary estimates.WT/ACC/KAZ/22
Page 34
Answer:
Kazakstan is finishing its work to update document WT/ACC/4.
Supporting table DS:1 - Green Box policies
Question 71.
We note that Kazakstan continues to include state procurement of grain under (3) public
stockholding for food security purposes.  We would appreciate more details about the state
procurement of gain and whether purchases and sales are made at current market prices
Answer:
The state procurement of grain for the purpose of food security was implemented by the State
Products Contract Corporation (please see the responses to questions 54-55 in document
WT/ACC/KAZ/6/Add.1) at market prices through th e commodity exchange, i.e. in compliance with
the requirements set forth in paragraph 3 of Annex 2 to the Agreement on Agriculture, and, therefore,has been included among the green box measures.
Question 72.
We notice that while the period 1994-96 has been used in both sets of tables, figures for some
programmes have increased substantially, for example, support for research appears much
larger in the revised tables. We realize that this is green box support and therefore has no
bearing on the aggregate measure of support AMS.  But we would be interested in the reasons
for the change.
Answer:
Kazakstan is finalizing an updated version of document WT/ACC/4.
Supporting table DS:2 - special and differential treatment
Question 73.Kazakstan is seeking developing country status under the Agriculture Agreement. This is an
issue that will need to be considered multilaterally.  We note that neighbouring Kyrgyz
Republic has agreed to treatment as a developed country for its agriculture commitments, and
has agreed to use five per cent de minimis . We would expect that the same commitment will be
sought from Kazakstan.
Answer:
Given objective criteria, such as its GDP per capita and its low level of economic
development, particularly in the agricultural regions, Kazakstan would like to be granted developing
country status in this context.
Question 74.
We would be interested in more details on the programmes, "preferential credit to agriculture"
and "state guarantees on external loans".  We note that in the most recent tables
(WT/ACC/SPEC/KAZ/2), there are changes in the figures from those of earlier tables.  SupportWT/ACC/KAZ/22
Page 35
for preferential credits to agriculture decreased for 1994 and 1996, while support for state
guarantees on external loans had increased.  Could Kazakstan provide information on the
reasons for changes in the support levels of these programmes?
Answer:
Please see the response to question 68.
Supporting table DS:4 Calculation of total AMS
Question 75.We welcome the provision of information on the value of total agricultural production for 1994,
to enable us to determine whether its agricultural support is de minimis  (as no product specific
support was provided in 1994).  However, we note that for 1995 and 1996, Kazakstan has used
the total of its product specific support and non-product specific support to work out the share
of AMS in agricultural production. Kazakstan should determine its AMS/agricultural
production for each agricultural product (as it appears to have done in supporting table DS:6)to determine whether there is de minimis  for product-specific support and a separate calculation
of its total agricultural production to determine de minimis  for non-product specific support.
Answer:
Kazakstan is finalizing an updated version of document WT/ACC/4, which will list domestic
support measures for 1996-1998.
Supporting table DS:6 - non-exempt direct payments
Question 76.
It appears from the information provided by Kazakstan that support for fruit, cattle and sheep
is under five per cent, and would therefore be under developed country de minimis  levels of
support.
We would be interested in further details of the value of production for sugar beet, potatoes and
maize, to enable us to clarify the level of support and whether they also have de minimis levels of
support.
Answer:
Kazakstan is finalizing an updated version of document WT/ACC/4.
Question 77.
We note that in the revised tables provided, fo r 1996 the figures for seeds of grain crops, seeds
of potatoes, seeds of maize, cattle and sheep have increased, and would be interested in the
reasons for this increase.
Answer:
Please see the response to question 73.WT/ACC/KAZ/22
Page 36
Question 78.
It appears that in the revised table, fruits has now been included for 1996, while poultry has
been excluded. Could Kazakstan provide the reas ons for these changes? Does this mean that
there was no product-specific support for poultry?
Answer:
Please see the response to question 73.
Supporting table DS:9
Question 79.We note that for 1995, the reschedule of arrears has increased from T 525,193,000 in the
original table to T 35,922,300,000 (although table DS:9 refers to US dollars). We understand
that this is the amount of debt of agricultural producers reallocated to the agricultural support
fund in 1995 under government resolutions No. 224 of 3 March 1995 and No. 1719 of14 December 1995. This appears to be the amount of  the loans - is the amount of the loans the
same as the amount of revenue foregone (in ot her words what is the actual amount of the
subsidy)? Kazakstan should provide furth er details on how this programme operates.
Answer:
Kazakstan is finishing its work to finalize an updated version of document WT/ACC/4.
Question 80.
We note that in the tables provided as an annex to WT/ACC/KAZ/3, Kazakstan had indicated
that in 1994, it did not provide any product-specific or non-product specific support.  However,
in the revised table for 1994, there are now three items included under non-product specific
support - (1) to repay the debts on salaries, (2) to carry out spring field works, and (3) direct
credits to agricultural producers.
Answer:
Please see the response to question 76.
We would be interested in further informatio n on these programmes and why they were not
included in the first set of tables provided.  Could Kazakstan advise whether the repayment of
debt on salaries applies only to the agriculture sector?
Answer:
Please see the response to question 76.
Question 81.
We would be interested in further details on the carrying out of spring field works.
Answer:
Please see the response to question 76.WT/ACC/KAZ/22
Page 37
Question 82.
We would also like further details on how the programme on direct credits to agricultural
producers is administered.
Answer:
Please see the response to question 76.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. GeneralQuestion 83.All countries acceding to the WTO should apply the provisions of the TRIPS Agreement on the
date of their accession in accordance, without recourse to any transition period
We are interested in Kazakstan’s plans to bring its laws, regulations and procedures into full
compliance with the obligations of the TRIPS Agreement.
Answer:
Kazakstan is working continually towards bringing its National Legislation into compliance
with the requirements of the TRI PS Agreement. To this end and with  regard to the area of legal
protection of industrial property, new drafts of the Patent Law of the Republic of Kazakstan, the Law
of the Republic of Kazakstan “On Trademarks, Service Marks and Appellations of Places of Origin”,the Law of the Republic of Kazakstan “On Selective Breeding Achievements”, the Law of the
Republic of Kazakstan “On Commercial Secret”, the Regulation “On Legal Protection of Integrated
Microcircuits”, which take into account the requirements of all relative Articles of the TRIPS
Agreement, have been prepared and are being reviewed by the Legislative Bodies of the Republic of
Kazakstan.
(d) Application of national and M.F.N. treatment to foreign nationals
Question 84.In document WT/ACC/KAZ/10 of 25  July 1997 and document WT/ACC/KAZ/11 of
5 August 1997, the Government of Kazakstan st ated that it plans to phase-out existing
differentiation in fees between domestic and foreign applicants for industrial property rights,
but that certain preferences might be retained for applicants from countries with an annual
GDP per capita of less than US$ 3,000.
Please describe phase-out plans aimed at complying with the national treatment and the most-
favoured nation treatment obligations of the TRIPS  Agreement.
Answer:
It is planned to eliminate the existing differences during the transition period by establishing a
single scale (schedule) for procedural patent duties and duties collected to maintain valid patents.  It is
expected to introduce a scheme of preferences for applicants originating from countries where the
GDP per capita is less then US$ 3,000 in order to account for the differences in so-called “purchasingWT/ACC/KAZ/22
Page 38
power/capacity” between developed and developing countries. If there are several applicants, each of
them must meet these criteria. The list of such countries will be developed in accordance with the UN
Classification of Countries based on their GDPs in order to determine the amount of annual
contributions.
2. Substantive standards of protection, incl uding procedures for the acquisition and
maintenance of intellectual property rights
(a) Copyright and related rights, including rights of performers, producers of phonograms
and broadcasting organizations
Question 85.
In response to Question 68 of document WT/ACC/KAZ/11 of 5 August 1997, the Government of
Kazakstan states that violators of copyright and related rights may be fined an amount ranging
from 500 monthly evaluation index (US$ 3,766) to 1,500 monthly evaluation index (US$ 11,300)
but that if experience proves that the established fines are not effective deterrents, fines will be
raised. Given the amounts of money that can be  realized from copyright piracy of software,
audio and video recordings because the cost of copying is minor, making profits substantial, this
member does not believe that the penalties indicated are sufficient to deter persons who pirate
such works. The fines indicated would be co nsidered nothing more than a cost of doing
business. Because the fines are so minor in re lation to the cost of enforcement actions,
government officials also would be unlikely to bring actions for violations of the law.
We urge the government of Kazakstan to increase the penalties for copyright piracy and impose
penalties for trademark counterfeiting that are sufficient to act as a deterrent to potential
pirates and counterfeiters and to encourage Government officials to pursue actions against
those who do pirate copyrighted works and counterfeit trademarked products.
Answer:
In our opinion, the measures provided in the legislation of the Republic of Kazakstan in
respect of infringes of copyright and neighbouring rights are sufficiently strict.
For example, Article 184 of the Criminal Code provides in paragraph 1 for monetary penalties
equivalent to 100 to 500 Monthly Evaluation Indexes or the salary or income collected by the
infringer over a period up to five months.
Furthermore, pursuant to Article 49 (paragraph 1) of the Law of the Republic of Kazakstan
“On Copyright and Neighbouring Rights,” the prot ection of copyright and neighbouring rights is
enforced by court by way of:
- Paragraph 4) indemnifying for losses, including lost profits;- Paragraph 5) recovering profits received by the infringer as a result of his/her infringement
upon somebody else’s copyright and neighbouring rights;
- Paragraph 6) paying a compensation in the amount from 20 to 50 thousand minimal monthly
wages and in case of infringement upon the author’s rights in a computer program or
database, in the amount from 500 to 50,000 monthly evaluation indices as established by theLegislation of the Republic of Kazakstan.WT/ACC/KAZ/22
Page 39
- The amount of compensation is determined by the court instead of indemnification for losses
or recovery of profits.
- Paragraph 7) applying other measures provided by legislative acts as relevant to the protection
of such rights.
- The measures set forth in paragraphs 4, 5 and 6 of this Article are applied at the discretion of
the owner of copyright and neighbouring rights
Article 8 of the Law “On Unfair Competition” provides that losses incurred by a legal entity,
physical person or consumers as a result of unfair competition shall be subject to compensation
pursuant to the procedure established by the legislation ( in other words pursuant to court procedure).
The profit, which has been obtained by the subject of market relations as a result of unfaircompetition, shall be seized in favour of the state budget in accordance with court determination.
Actions aimed at limitation or elimination of la wful competition shall be subject to imposition
of a penalty according to and in the amount, determined by the applicable statutory procedure.
Question 86.
Kazakstan provides protection for copyrighted works created on or after 27 May 1973, the date
on which the former Soviet Union became a me mber of the Universal Copyright Convention.
The TRIPS Agreement, which incorporates Articl e 18 of the Berne Convention by reference,
requires that existing works of other WTO members be given copyright protection if they are
still under copyright in their country of origin a nd have not fallen into the public domain in the
acceding country through expire of the term of protection previously granted. TRIPS Article
14.6 requires that the provisions of Article 18 of th e Berne Convention apply also to the rights of
performers and producers of phonograms.
Please describe the plans of the Government of Kazakstan for providing protection for existing
works of other WTO members on the date of accession.
Answer:
Recently, the Republic of Kazakstan adopted a Law “On the Accession of the Republic of
Kazakstan to the Berne Convention on the Protection of Literary and Artistic Works.” Paragraph 1 of
Article 18 of this Convention states: “This Conven tion shall apply to all works which, at the moment
of its coming into force, have not yet fallen into the public domain in the country of origin through the
expiry of the term of protection.” Since it has been adopted without any reservations and conditions,
Kazakstan intends to adhere to its requirements in full.
Question 87.
We urge the Government of Kazakstan not to wait until its accession to the WTO but to provide
such so-called "retroactive" protection for copy righted works and to the rights of performers
and phonogram producers as soon as possible.
Answer:
As stated in the answer to question 85, the Republic of Kazakstan acceded to the Berne
Convention on 10 November 1998, without any reservations. This means that Kazakstan extends
protection to works that by the moment of its accession to the Convention have not fallen within the
public domain of their countries of origin by virt ue of the expiry of protection attached thereto.WT/ACC/KAZ/22
Page 40
(b) Trademarks, including service marks
Question 88.In response to question 61 of document WT/ACC/KAZ/10 of 25 July 1997, the Government of
Kazakstan states that well-known trademarks are protected without  restriction by classes of
products and services as is required by the TRIPS Agreement. The Government of Kazakstan
states further, however, that the criteria for determine what is 'well known' are not yet
completely defined by WIPO and, therefore, demonstrating the authenticity of the trademarks
should fall upon the trademark owner.
What is meant by the phrase "demonstrating the authenticity"?
Answer:
Upon review, the use of the phrase “demonstratin g the authenticity of the trademark” in the
response to question 61 of WT/ACC/KAZ/10 was not accurate. The intention was to state that “thecriteria for determining what is ‘well known’ are not yet completely defined by WIPO and therefore
the trademark owner bears the burden of establishing that the mark is ‘well known.’” In that regard,
please also see the response to question 89, below.
Question 89.
What evidence would be required from the owner of a trademark to demonstrate that its mark
was well-known in Kazakstan?
Answer:
In order for a trademark to be recognized well  known in Kazakstan, its owner is required to
prove that the following factors are present:
− the existence of production and sales of goods with this trademark attached;
−τ he cost/value of the trademark;
− the extent to which the trademark is recognizable by wide circles of consumers;
−τ he presence of intensive advertising of the trademark and its distribution.
(g) Layout designs of integrated circuits
Question 90.
In to question 64 of document WT/ACC/KAZ/11 of 5 August 1997, the Government of
Kazakstan states that a Draft "Regulation on the legal protection and of topologies or integral
micro-schemes" is currently being prepared. An English translation of the aforementioned
draft regulations will be forwarded to the WTO Secretariat as soon it has been officially
approved.
What is the status of the approval process? When  will the translation be provided to the WTO
Secretariat? When is it expect ed that the regulation will be implemented in Kazakstan?WT/ACC/KAZ/22
Page 41
Answer:
The process of adoption of the prepared draft Regulation “On Legal Protection of Integrated
Microcircuits” can be started after the adoption of the Special Part of the Civil Code of the Republic
of Kazakstan. At present, the Special Part of the Civil Code of the Republic of Kazakstan is being
reviewed by the Senate of the Parliament of the Republic of Kazakstan.
(h) Requirements on undisclosed information, including trade secrets and test data
Question 91.Article 39.3 of the TRIPS Agreement requires that WTO Members protect against unfair
commercial use undisclosed data submitted as a condition for obtaining marketing approval ofpharmaceuticals and agricultural chemicals utilizing  new chemical entities. The data also is to
be protected against disclosure.
Does the Government of Kazakstan require submission of undisclosed data as a condition for
obtaining marketing approval of pharmaceutica ls and agricultural chemicals, if so, please
describe how such data are protected from unfair commercial use and disclosure.
Answer:
The information required for marketing pesticides is set out in the Ministry of Agriculture
regulation “On Registration of Tests and Pesticide Registration in the Republic of Kazakstan,” which
was authorized by Governmental Resolution No. 399 (8 April 1996). Article 5.7 of that regulation
provides that submitted test results and their registration are the property of the applicant and shall not
be transferred to third parties without permission.
Disclosure or unfair commercial use of any information required to obtain approval for
distribution of pharmaceuticals and agricultural chemicals that is a commercial secret is prohibited by
Article 126 of the General Part of the Civil Code of the Republic of Kazakstan.
Moreover, Article 200 of the Criminal Code prohibits collection of information that
constitutes a commercial or banking secret by the person who has received such information in a job
or work capacity, including disclosure or use of such information for mercenary or other personal
interest without the consent of the owner. Such disclosure is punishable by imprisonment for up to
three years, fines, arrest, or sentencing to correctional works.
4. Enforcement
Question 92.
In answer to question 65 of document WT/ACC/KAZ/11 of 5 August 1997, the Government of
Kazakstan describes the Code on Administrative Violations of the Republic of Kazakstan that
applies to:
Illegal use of a trade mark or similar sign for the homogeneous goods, and 8150 places of origin
of a product (Articles 170-2);
Sales, rent and other illegal use of copies of masterpieces or phonograms an commercial
purposes (Articles 170-3);WT/ACC/KAZ/22
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Refusal in giving necessary information on profits/income and also submission at wrong data on
profits/income received due to the us e of author's rights (Articles 170-4) ;
And states that facts of violation are consider ed by the Administrative Commissions of local
authorities and in case of real Violation the guilty party is imposed with a penalty.
Please describe in detail the procedures followed by the administrative Commissions in
reviewing allegations of violation and descri be the remedies the Commissions can impose.
Answer:
Under the Administrative Code, a case to review  a violation of the Code may be initiated on
the basis of the following:
- direct finding by the concerned official of the fact of commitment of an
administrative violation;
- information from law-enforcement agencies as well as from other state bodies, and
self-governing (non-governmental) bodies;
- notification or application received from natural persons and legal entities and also
notice received through the official press.
Protocols on administrative violations, stipulat ed by the Articles 170-2(b), 170-3(b) and 170-4
shall be drawn up only by those bodies so authoriz ed by the Administrative Code. For example, the
body authorized under the Code to draw up a protocol on trademark violations is the Patent Office of
the Ministry of Energy, Industry and Trade; the authorized body with respect to violations of
copyright is the  Copyright Committee of the Ministry of Justice. The case is then reviewed by the
body so authorized under the Administrative Code, which may include Administrative Commissions.
Review of the case starts with the introduction of the members of the Commission or other
review body, or single officials in cases wher e the Administrative Code permits such review.
The chairman of the body meeting or the official that is reviewing the case shall announce the
case that constitutes the subject matter of review, name the involved parties subject to administrativereview, and explain their rights and duties. The Protocol on Administrative Violation is also
announced.
Petitions shall be permitted during meetings, the persons that participate in the review of the
case shall be given a hearing, and the evidence shall be examined.
In reviewing the case, the body shall keep a prot ocol or a record of the proceeding which later
shall be signed by the chairman of the meeting and the secretary.
After consideration of the case, the administrative body shall issue one of the following
resolutions:
- to impose an administrative sanction;
- to terminate the proceedings.
The body that has reviewed the case on administrative violation can impose the following
sanctions:
- for violations stipulated in Articles 170-2, a penalty;WT/ACC/KAZ/22
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- for violations stipulated in Article 170-3, a penalty with confiscation of counterfeit
materials, works and phonograms;
- Confiscated works or phonograms are subject to destruction unless the copyright
holder or neighbouring rights possessor requests them;
- for violations stipulated in Article 170-4, a penalty;
- If the parties disagree with the Administrative Commission decision, they shall have
the right to apply to the court of appropriate jurisdiction.
Question 93.
Please explain what is included in the defi nition of "masterpiece" in the second item?
Answer:
There appears to be an error in translation of the answer to question 65 of document
WT/ACC/KAZ/11 of 5 August 1997. The word “masterpiece” does not appear in Article 170-3 of the
Administrative Code.  Rather, Article 170-3 concerns “sale or release or other illegal use of works or
phonograms.”
Question 94.
Please describe in detail what steps a foreign party would take to have an administrative
commission consider a violation of that party's intellectual property rights.
Answer:
To have an administrative commission consider a violation of its intellectual property rights, a
foreign party should submit an application to the Patent Office or the  Copyright Committee of theMinistry of Justice, depending upon the nature of the right violated. The Committee would review the
application and, where a violation is found, draw up a protocol on violation. As described in the
response to Question 91, the protocol shall be sent to the appropriate administrative body. If the
violation involves actions described in Article 170 of the Administrative Code, the appropriate
administrative body as defined by the Code is the Administrative Commission of the Akimat (a localgovernment authority). The Administrative Code also authorizes the Patent Office to review
violations of 170-3 and 170-4.
Question 95.
In answer to Question 66 of document WT/ ACC/KAZ/11 of 5 August 1997, the Government of
Kazakstan states that amendments to the Cust oms Code, establishing a procedure for customs
detention of goods suspected of bearing counterfeit trademarks or of being pirated copies of
copyrighted works, would be finalized by the end of September 1997 and that a copy of these
draft amendments will be submitted to the WTO in early October 1997.  Have the amendments
been finalized?
Answer:
See the response to question 7 above regarding the status of amendments to the Customs
Code.WT/ACC/KAZ/22
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Question 96.
Please describe the amendments in detail and indi cate when copies will be made available to the
WTO.
Answer:
The draft amendments to the Customs Code will establish a procedure for intellectual
property right owners to apply to Customs to suspend release of imported goods suspected of
violating their rights. The amendments provide that Customs may suspend release of the goods for a
period of ten days upon application of the owner of the right. Customs may extend the period of
suspension for an additional ten days. The amendments will require Customs to notify the applicant
and the importer of the suspension of release of the goods. The amendments provide that the rightowner will be required to provide a security to Customs to protect the importer’s rights (should a court
determine that the application for suspension is groundless).
Within the ten day period (as extended), the owner of the right is required to apply to a court
to enforce his rights against the infringing goods and the importer of the goods. If the right owner failsto provide Customs with evidence that court proceedings have been initiated, Customs is required to
release the goods upon expiration of the ten day period (or 20 day period, if extended).
With regard to when the draft amendments will be available to WTO members, please see the
response to question 8, above.
Question 97.
When is enactment of these amendments expected?
Answer:
See the response to question 7, above.
Question 98.
In answer to question 67 of document WT/ACC/KAZ/11 of 5 August 1997, the Government of
Kazakstan refers to provisions to prevent trad e in counterfeit trademarked goods contained in
Article 199 of the Draft criminal code (Special Part).
What is the status of this draft on Criminal Code? When is it expected that the Code will be
enacted?
Answer:
The provisions to prevent trade in goods with counterfeit trademarks contained in Article 199
referenced in the answer to question 67 of document WT/ACC/KAZ/11 came into force on1 January 1998.
Question 99.
What efforts are being made to educate the police, prosecutors, and judges in Kazakstan
regarding trademark counterfeiting so that when the draft Code comes into force, those
responsible will be able carry out their responsibilities.WT/ACC/KAZ/22
Page 45
Answer:
In September 1997, the National Patent Office (Kazpatent) in cooperation with the WIPO and
the European Patent Office (EPO) conducted an international regional seminar dedicated to the issues
of application of legislation in the area of patents and trademarks. The seminar was held for judges,
customs officers, police and the CIS patent offices. As a result of this seminar, a compilation ofmaterials was prepared and published and further circulated and distributed for public notice.
In November 1998, a similar international seminar to address a variety of issues related to
patents, trademarks and copyright was held in Tashkent. This seminar was also attended by judges,
customs and police officials, patent office officials and officials of the Copyright Committee of the
Ministry of Justice of Kazakstan.
Question 100.
What efforts being made to educate the public to avoid activities that infringe the rights of
trademark owners?
Answer:
The National Patent Office (Kazpatent) conducted in 1997-99, and will conduct until 2000, a
series of regional seminars to explain the Legislation of the Republic of Kazakstan relating to the area
of protection of objects of intellectual property. These seminars are conducted on the premises ofregional scientific and technical libraries for a wide segment of inventors, scientific and technical
workers, specialists and professionals. Officials of the Kazpatent appear on radio and television
shows, and publish and disseminate materials related to the area of protection of industrial property
through the mass media in Kazakstan.
.
VI. TRADE RELATED SERVICE REGIME
Question 101.We look forward to receiving Kazakstan’s revised services offer.
Answer:
The revised Offer on Services will be submitted to the WTO Secretariat after approval by the
Government of the Republic of Kazakstan.
VII. INSTITUTIONAL BASIS FOR TRADE AND ECONOMIC RELATIONS WITH THIRD
COUNTRIES
1. Bilateral, Plurilateral and Multilateral agreements relating to foreign trade in Goods
and trade in services
Question 102.
We remain interested in Kazakstan’s adherence at the time of accession to the WTO Agreement
on Trade in Civil Aircraft, and adoption of "z ero" duties for the importation of aircraft and
parts.WT/ACC/KAZ/22
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Answer:
At this time, Kazakstan is not planning to join the WTO Agreement on  Trade in Civil Aircraft
by the date of accession.
2. Economic Integration:  Customs Union and Free-trade Area Agreements
Question 103.Please, provide an update on the extent of tariff harmonisation between Kazakstan, Belarus and
Russia.
Answer:
Further work to formulate a Single Customs Tariff (SCT) between the three countries, i.e.
Kazakstan, Belarus and Russia, is still in progress.  The rates of import duties on goods from 22
nomenclature groups that make up 57  per cent of the CIS NG FEA are similar and provide a
foundation for the SCT.  The other duties for the rest of the nomenclature groups are similar tovarious extents.  A principle of further harmonisation of rates of import duties that are different have
been developed, including a schedule to formulate a SCT with due consideration given to 15 per cent
of the total imports of  “sensitive” products of each state.
Question 104.
In light of its customs union with Russia, what measures is Kazakstan taking to harmonise to
recent Russian legislation on the production, sale and distribution of alcohol?
Answer:
Analysing the experience of Russia related to the regulation of its market for alcoholic
products in terms of production, the Republic of Kazakstan pursues the policy designed to strengthen
the state regulation in this area with the intention to increase the quality and competitiveness of
domestic products, to collect taxes to a maximum extent and to protect domestic producers of goods.All types of activities in the area of production and distribution of ethyl spirits and alcoholic products
are subject to licensing pursuant to the Presidential Decree “On Licensing.”  The number of producers
and distributors of alcohol is augmented with the intention to expand the size of the legal market in
the area based on tightened qualification requirements.
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