RESTRICTED
WORLD TRADE WT/ACC/KAZ/6
3February 1997
ORGANIZATION(97-0404)
Original: English
ACCESSION OFKAZAKSTAN
Questions andReplies
totheMemorandum ontheForeign Trade Régime
(Document WT/ACC/KAZ/3)
Inacommunication, dated 29January 1996(WT/ACC/KAZ/1), theGovernment ofKazakstan
applied foraccession under Article XIIoftheMarrakesh Agreement Establishing theWorld Trade
Organization (WTO).
Atitsmeeting on16April 1996, theGeneral Council established aWorking Party withthe
following terms ofreference: "Toexamine theapplication oftheGovernment ofKazakstan toaccede
totheWTO Agreement under Article XII,andtosubmit totheGeneral Council recommendations
which mayinclude adraftProtocol ofAccession." Themembership isopentoallWTO Members
indicating theirwishtoserve ontheWorking Party. Indocument WT/ACC/KAZ/3, Members had
beeninvited tosubmit questions inwriting concerning theforeign traderégime ofKazakstan. Questions
submitted byMembers andthereplies thereto provided bytheauthorities ofKazakstan arereproduced
hereunder. Theattachments mentioned inthisdocument areavailable intheSecretariat (Accessions
Division, Room 1126) forconsultation. Additional questions andreplies willbecirculated asaddenda
tothisdocument.
DelegationswishingtoraiseadditionalquestionsconcerningtheforeigntraderégimeofKazakstan
might inform thedelegation ofKazakstan (with acopytotheSecretariat) ofsuchquestions inadvance
ofthenextmeeting oftheWorking Party, sothatconsidered replies canbemade available byKazakstan
toMembers atthetimeoftheWorking Party meeting.WT/ACC/KAZ/6
Pageii
TABLE OFCONTENTS
Page
No.Quest.
No.
I. GENERAL 1 1-6
II. ECONOMY, POLICIES AND FOREIGN TRADE 2
2. Economic Policies 2 7-12
(a) Main directions ofongoing economic policies 2 7-9
(c) Foreign exchange andpayments system 2 10
(d) Foreign anddomestic investment policy 3 11
(e) Competition policy 3 12
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES
AFFECTING FOREIGN TRADE INGOODS AND TRADE IN
SERVICES3 13-18
1. Powers oftheExecutive, Legislative andJudicial Branches of
Government3 13-14
4. AnyLegislative Programmes orPlans toChange theRegulatory
Régime4 15-18
IV. POLICIES AFFECTING TRADE INGOODS 6 19-111
1. Import Regulation 6 19-55
(a) Registration requirements forengaging inimporting 6 19-20
(c) Tariff quotas, tariff exemptions 6 21-25
(d) Other duties andcharges, specifying anycharges forservices
rendered7 26-38
(e) Quantitative import restrictions, including prohibitions, quotas and
licensing systems11 39-41
(f) Import licensing procedures 11 42-44
(j) Pre-shipment inspection 12 45
(k) Application ofinternal taxes onimports 13 46-47
(l) Rules oforigin 13 48-51
(m) Anti-dumping régime 16 52-53
(n) Countervailing dutyrégime 16 54-55
(o) Safeguard Regime 17 56-58
2. Export Regulation 17 59-167
(b) Customs tariff nomenclature, types ofduties, dutyrates, weighted
averages ofdutyrates17 59
(d) Export licensing procedures 17 60-61
(e) Other measures, e.g.minimum export prices, voluntary export
restrictions, orderly marketing arrangements21 62-66
(h) Import dutydrawback schemes 22 67
3. Internal Policies Affecting Foreign Trade inGoods 22 68-110
(a) Industrial policy, including subsidy policies 22 68-70WT/ACC/KAZ/6
Pageiii
Page
No.Quest.
No.
(b) Technical regulations andstandards, including measures taken at
theborder withrespect toimports22 71-80
(c) Sanitary andphytosanitary measures, including measures taken with
respect otimports27 81
(d) Trade-related investment measures 27 82-83
(f) Freezones 27 84-85
(g) Freeeconomic zones 28 86-87
(l) Government procurement practices 28 88-109
(m) Regulation oftrade intransit 32 110
4. Policies Affecting Foreign Trade inAgricultural Products 32 111
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 32 112-134
1. General 32 112-114
2. Substantive standards ofprotection, including procedures forthe
acquisition andmaintenance ofintellectual property rights33 115-129
(a) Copyright andrelated rights 33 115-116
(b) Trademarks, including service marks 33 117-121
(c) Geographical indications, including appellations oforigin 36 122
(d) Industrial designs 36 123-124
(e) Patents 37 125-128
(f) Plant variety protection 37 129
4. Enforcement 38 130-134
(d) Border measures 38 130-134
VI. TRADE-RELATED SERVICES REGIME 40 135-167
1. General 40 135
Professional services 41 136-142
Legal services 41 136-138
Accounting andauditing 41 139-140
Other 42 141-142
Other business services 43 143
Postal services 43 144-145
Telecommunications services 44 146-148
Financial services 44 149-164
General 44 149
Banking 45 150-158
Securities 47 159-161
Insurance 48 162-164
AirTransport services 48 165-166
Road Transport services 49 167WT/ACC/KAZ/6
Pageiv
Page
No.Quest.
No.
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC
RELATIONS WITH THIRD COUNTRIES49 168-170
2. Economic Integration, Customs Union andFreeTrade Agreements 49 168-170
Annex Listofattachments 52WT/ACC/KAZ/6
Page1
I. General
Question 1.
Towhat extent doesKazakstan consider thatitwillremain a"separate customs territory" within
theWTO definition oncetheCustoms Union Agreement withRussia, Belarus andtheKyrgyz
Republic isratified?
Answer:
TheaimoftheMembers oftheCustoms Union istocreate asingle customs territory with
acommon customs tariff. When thisstage isreached, Kazakstan willnolonger remain aseparate
customs territory within theWTO definition. Thisstage has,however, notyetbeenreached. Itis
foreseen thatinthesecond stage oftheimplementation oftheCustoms Union Agreement thecommon
tariff willenter fullyintoforce, andtheestablishment ofasingle customs territory willbeachieved.
Question 2.
Please provide theWorking Party withthetextoftheCustoms Union Agreement andallrelated
legislative andadministrative acts.
Answer:
ThetextoftheCustoms Union Agreement andallrelated legislative andadministrative acts
areprovided inAttachment Atothisdocument.
Question 3.
Kazakstan iscommitted tointroducing acommon external tariff withitsCustoms Union partners.
How, inthelightofthiscommitment, doesKazakstan intend toproceed withrespect tothataspect
oftheaccession negotiations pertaining totariffs?
Answer:
Asalready mentioned, thecommon external tariffhasnotyetentered intoforce. Themembers
oftheCustoms Union willproceed independently withtheirWTO accession, i.e.negotiate separately,
buttheywillkeepinclose contact withtheother members andexchange information andconsult on
thedevelopment oftheiraccession negotiations.
Question 4.
PleaseprovidedetailedinformationonthetimetableforeseenintheCustomsUnionforharmonising
legislation affecting foreign trade.
Answer:
Apreliminary general timetable hasbeendrafted forharmonizing legislation affecting foreign
tradebetween Customs Union members. Kazakstan willprovide suchtimetable assoonasitisfinalized.
Question 5.
How willfuture amendments ornewlegislation bedealt withbytheCustoms Union?
Answer:
Themember states oftheCustoms Union haveagreed thatallmatters concerning theirexternal
economic andtradelegislation should bedecided inconsultation andcollaboration between themembers
oftheCustoms Union.
Question 6.
How does Kazakstan intend toproceed intheWorking Party discussions inthelight ofthis
commitment toharmonise legislation?WT/ACC/KAZ/6
Page2
Answer:
InaccordancewithaprotocolagreedbetweenthesignatoriesoftheCustomsUnionAgreement
on19December 1996, themember countries willproceed independently inthedeliberations intheir
Accession Working Parties butinclose contact andconsultation witheachother.
II ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
II.2. Economic Policies
II.2(a) Main directions andgoals
Question 7.
Areanygoods (asopposed toservices) subject toprice control?
Answer:
Twogoods aresubject toprice control, inthecontext ofpublic services/utilities. These are
heatandwater.
Question 8.
Please clarify what ismeant by"tariff rates" inthelastsentence ofthesection onpricing policy.
Answer:
Thereference heretotariff ratesconcerns costofuseofnatural monopolies. Tariff rates
aredesigned toregulate thecostoftransport ofgoods andcommodities andusage ofnatural monopoly
infrastructure.
Question 9.
Please listallthenatural monopolies forwhich there aretariff rates.
Answer:
Natural monopolies inthefollowing sectors aresubject totariff rates:
- transmission anddistribution ofelectricity
- distribution ofheat
- oilandoilproducts pipelines
- gaspipelines
- railroads
- water sewage systems
- airnavigation (landing/take-off andusage ofairroutes)
- telecommunication networks
- statepostoffice
II.2(c) Foreign exchange, payments system andrelations withtheInternational Monetary Fund
(IMF)
Question 10.
When doesKazakstan envisage theestablishment offullcurrent account convertibility andIMF
membership under Article VIII?
Answer:
Kazakstan accepted Article VIIIobligations andestablished fullcurrent account convertibility
lastyear.WT/ACC/KAZ/6
Page3
II.2(d) Foreign anddomestic investment policies
Question 11.
Isthere anydomestic legal protection forforeign investors incases ofexpropriation ?
Answer:
Yes. TheConstitution oftheRepublic ofKazakstan andtheLawonForeign Investments
bothprovide domestic legalprotection toforeign investors intheevent ofexpropriation. According
toArticle 26(3) and(4)oftheConstitution, private property maybeexpropriated forpublic useonly
in"extraordinary cases stipulated bylaw"andagainst payment of"equivalent compensation". Article 7
oftheLawonForeign Investments, moreover, goestoprovide that,"foreign investments maynot
benationalized, expropriated orsubject tomeasures equivalent tonationalization orexpropriation
except...where effectuated forapublic purpose, incompliance withproper legal order, without
discrimination andwithpayment ofprompt, adequate andeffective compensation".
II.2(e) Competition policies
Question 12.
Does Kazakstan intend tonotify anyofits"natural" monopolies listed insection 2(a),under
Article XVII oftheGATT 1994 orArticle VIIIoftheGATS? Ifnot,whynot?
Answer:
NaturalmonopoliesinKazakstanactastransportcarrierswithequalopenaccesstoallsuppliers
andoperators regardless offormandtypeofownership. Noexclusive rights orspecial privileges are
granted tothesenatural monopolies. Therefore, suchnatural monopolies donotfallunder thedefinition
ofArticle XVII ofGATT 1994 orArticle VIIIofGATS.
III. FRAMEWORKFORMAKINGANDENFORCINGPOLICIESAFFECTINGFOREIGN
TRADE INGOODS AND TRADE INSERVICES
III.1 Powers oftheExecutive, Legislative andJudicial Branches ofGovernment
Question 13.
How iscoordination between theMinistry ofEconomy (responsible forforeign economic policy)
andtheCommittee forEconomic Cooperation withtheCIS(responsible forforeign economic
policy forCISmembers) assured?
Answer:
On29October 1996, theStateCommittee oftheRepublic ofKazakstan onCooperation with
CISCountries wasabolished.
Question 14.
What process willbeneeded tocomplete national procedures relating toWTO accession? Will
implementing legislation berequired?
Answer:
According toArticle 4(3)and(4)oftheConstitution oftheRepublic ofKazakstan, allratified
international agreements areself-executing unless theyarespecifically negotiated torequire the
promulgation ofalawinorder tobeimplemented. Whether additional legislation willberequired
toimplement theterms andconditions oftheRepublic ofKazakstan 'santicipated accession totheWorldWT/ACC/KAZ/6
Page4
Trade Organization will,therefore, depend upontheresults ofKazakstan 'snegotiations withitsprincipal
trading partners.
III.4 AnyLegislative Programs orPlans toChange theRegulatory Régime
Question 15.
Please indicate whether, andinwhat respects thedrafting agenda forthenextthree years has
been changed asaresult ofsubmission arising from Resolution 211of19February 1996.
Answer:
Thedrafting agenda forthenextthree years hasnotchanged significantly aftertheadoption
ofGovernment Resolution No.211of19February 1996, asitalready contained mostnecessary draft
laws. Added tothedrafting agenda, asresult ofGovernment Resolution No.211,arethefollowing:
Amendments totheCustoms Code andnewLawonCountervailing Duties.
Question 16.
Canthelegislative drafting agenda bealtered onceithasbeen drawn up?
Answer:
TheGovernment 'slegislative drafting agenda isadopted annually byGovernment Resolution.
Thelegislative drafting agenda, however, isoften amended ontheproposals ofministries orState
agencies. While formal amendments totheagenda require Government Resolution, deviations from
theagenda willnotpreclude consideration bytheGovernment ofaparticular draftlaw.
Government Resolution No.14of7January 1997 provided anupdated legislative drafting
agenda for1997. Legislation relevant toKazakstan 'sforeign trade regime which arescheduled for
drafting in1997 arethefollowing:
i Criminal Code
ii Criminal Procedure code
iii OnAmending theCivil Code-General Part
iv OnPartnerships withLimited Liability
v OnAmending thePresidential Edict Having theLawForce (1)onSubsurface Utilization
and(2)onOil(asaresult oftheamending theLawoftheRepublic ofKazakstan onForeign
Investments
vi OnCustoms Authorities
vii OnAmending theLawoftheRepublic ofKazakstan onArchitecture andUrban Planning
viii OnLabour
ix OnAmendingtheCurrentLegislationRegardingtheMechanismofBorrowers'Responsibility
andProtection ofInvestors andDepositors
x Administrative Infractions Code
xi Civil Procedure Code
xii OnIndividual Entrepreneurship (without formation ofalegalentity)
xiii OnAdvertising
xiv OnAmending theLegislation onFormation ofEconomic andTaxBenefits inMaking
Investments, andontheDevelopment ofSmall andMedium Sized Business
xv OnLegal Profession
xvi OnDumping andOnCountervailing Measures
xvii OnAmending thePresidential Edict Having theLawForce onStateRegistration ofRights
inimmovable Property andRelated Transactions
xviii OnMinimal Consumer Budget andMinimal Monthly Wages (new version)
xix OnLocal Representative andExecutive Bodies intheRepublic ofKazakstanWT/ACC/KAZ/6
Page5
xx OnLocal Self-government
xxi OnNatural Monopolies
xxii OnConcessions
xxiii OnState Procurement
xxiv OnState Participation inFormation andActivities ofEconomic Partnership
xxv OnLeasing
xxvi OnAmending theLegislation onPayments fortheSpecial UseofNatural Resources
xxvii OnJoint Stock Companies
xxviii OnUnfair Competition
xxix OnAmendingthePresidentialEdictHavingtheLawForceonCustomsAffairsintheRepublic
ofKazakstan ("Customs Code")
xxx OnRegistration ofSecured Transactions withMovable Property
xxxi OnAmending thePresidential Edict Having theLawonForce onLand
xxxii OnPayments andSettlements within theRepublic ofKazakstan
xxxiii OnEcological Control
xxxiv OnAmending theLawonStandardization andCertification
Question 17.
Which oftheactslisted inthissection have nowbeen enacted orarecurrently before the
Parliament?
Answer:
TheParliament oftheRepublic ofKazakstan hasalready adopted:
- Law"OnExport Control overArmaments, Military Equipment andDouble Designation
Production" of18June1996;
- Law"OnState Duty" of31December 1996;
- Law"OnBankruptcy;" of27January 1997;
- Amendments totheTaxCode of31December 1996; and
- Law"OnCurrency Regulations" of24December 1996.
Thefollowing draftlawsarecurrently being considered bytheParliament:
- Draft Law"OnEcological Expertise;" and
- Draft Law"OnNotary".
Question 18.
Does Kazakstan intend tosubmit toWTO Working Party members forcomment anyofthese
pieces oflegislation whilst theyarestillinadraft form?
Answer:
Upon request byanymember oftheWTO Working Party, Kazakstan willsubmit draft
legislation forcomments.WT/ACC/KAZ/6
Page6
IV. POLICIES AFFECTING TRADE INGOODS
IV.1 Import Regulation
IV.1(a) Registration requirements forengaging inimporting
Question 19.
Cannatural persons engage inimportation activities? Ifnot,whynot?
Answer:
Yes. Natural persons mayengage inimportation activities.
Question 20.
When doesKazakstan intend tobring itstariff nomenclature intolinewiththeHS96System?
Answer:
Kazakstan intends tobring itstariff nomenclature intolinewiththeHS96System in
April 1997.
IV.1(c) Tariff quotas andtariff exemptions
Question 21.
Please explain thereasons whythere isaspecific reference toHSChapter 22inthissection?
Answer:
Thereference insection 1(c)oftheMemorandum isnottoHSChapter 22,buttoChapter 22
oftheCustoms Code oftheRepublic ofKazakstan which determines theorder ofprivileges and
preferences incustoms duties payments andlistgoods exempt from customs payments.
Question 22.
Please indicate which products generally benefit from tariff exemptions.
Answer:
Acomprehensive listofgoods which generally benefit fromtariffexemptions wasprovided
insection IV.1.c titled Tariff Quotas andExemptions ofWT/ACC/KAZ/3.
Question 23.
Aretariff exemptions (except those applied inthecontext ofaCustoms Union orFree Trade
Agreement) applied onanMFN basis?
Answer:
Yes.Tariff exemptions areapplied onanMFN basis.
Question 24.
Please clarify what iscovered bytheexemption "goods imported asgratuitous assistance and/or
charity...".
Answer:
Thisexemption covers goods thatareprovided freeofcharge byaforeign stateorgovernment
oraninternational organisation toaKazakstani governmental orlegalentity ornatural person. The
exemption islimited todonations bysuchentities forsocio-economic development andreform, and
would notcover imports ofgoods forsaleorother commercial purpose. Theexemption would cover,WT/ACC/KAZ/6
Page7
forexample, laboratory instruments, computers, transport, communication orindustrial equipment,
orscientific publications thatareprovided byaforeign statetotheGovernment ofKazakstan in
connection withatechnical assistance project sponsored bythatforeign government.
Question 25.
With regard totheexemption granted tosome products originating inCIScountries; Article I
oftheGATT 1994 requires application oftheMFN principle, whilst Article XXIV allows for
exception forregional integration initiatives where these arecompatible withtherequirements
ofArticle XXIV andoftheUnderstanding onthatArticle. IsKazakstan prepared toundertake
thatexemptions willonlybegiven tothird countries inthecontext ofaWTO compatible Free
Trade Agreement orCustoms Union Agreement?
Answer:
Kazakstan willonlygranttariffexemptions tocountries withwhich Article XXIV agreements
areinforce orwhich arecovered bytheEnabling Clause.
IV.1(d) Otherdutiesandcharges,specifyinganychargesforservicesrenderedCustomsprocessing
feesandother customs services
Fees
Question 26.
Asanadvalorem fee,theCustoms Processing Feedoesnotappear tobeconsistent withArticle
VIIIofGATT 1994, which requires thatfeesandcharges related toimportation arelimited to
thecostofservices rendered. What steps doesKazakstan intend totaketobring itssystem into
linewithGATT practice?
Answer:
During accession totheWTO, Kazakstan willbring itsCustoms Processing Feeinlinewith
Article VIIIofGATT 1994. Feesandcharges related toimportation willbechanged toreflect the
costofservices rendered. Either afixed feeoranadvalorem withaceiling willbeestablished.
Question 27.
Isthe15ECU processing feeforvehicles inaddition tothe0.2%general fee?
Answer:
Government Resolution No.1061of28August 1996, titled"Onintroduction ofamendments
andadditions tosome decisions oftheGovernment oftheRepublic ofKazakstan", cancelled the15
ECU processing feeforvehicles. The0.2% customs processing feeapplies equally toallgoods.
VAT
Question 28.
ArticleXXIVoftheGATT1994doesnotexemptRegionalIntegrationAgreementsfromapplication
oftheMFN principle withregard tointernal taxation. Please indicate when Kazakstan intends
tobring itssystem ofVAT application intolinewithArticle IoftheGATT 1994, sothatitis
applied equally toimports from allthird countries.
Answer:
Withrespect toCIScountries, VATapplies atsource rather thandestination. Inother words,
VAT applies onimports fromCIStoKazakstan atthecountry oforigin. Kazakstan iscurrently inthe
process ofnegotiation withotherCIScountries tomake VATapplicable atdestination rather thansource.WT/ACC/KAZ/6
Page8
Question 29.
AreVAT exemptions applied withfullrespect forthenational treatment andMFN principles?
Answer:
Yes.
Question 30.
Please clarify what ismeant bygoods imported forcharitable purposes, including theprovision
oftechnical assistance from State, government andinternational agencies.
Answer:
Thisexemption covers goods thatareprovided freeofcharge byaforeign stateorgovernment
oraninternational organisation toaKazakstani governmental orlegalentity ornatural person. The
exemption islimited todonations bysuchentities forsocio-economic development andreform, and
would notcover imports ofgoods forsaleorother commercial purpose. Theexemption would cover,
forexample, laboratory instruments, computers, transport, communication orindustrial equipment,
orscientific publications thatareprovided byaforeign statetotheGovernment ofKazakstan in
connection withatechnical assistance project sponsored bythatforeign government.
Excise Taxes
Question 31.
Does Kazakstan accept thatitscurrent excise taxsystem (with itsdifferent levels and/or methods
ofcalculation forimported anddomestically produced goods) isnotcompatible withArticle III
oftheGATT 1994 ?
Answer:
Kazakstan understands thatitscurrent excise taxsystem isnotcompatible withArticle III
oftheGATT 1994 andneeds toconform toWTO principles during accession.
Question 32.
What measures isKazakstan taking tobring itsexcise taxsystem intolinewiththenational
treatment principle? What istheanticipated timetable?
Answer:
During accession totheWTO, Kazakstan willwork toward bringing itsexcise taxsystem
inlinewiththenational treatment principle ofWTO.
Question 33.
Does table 4.2provide thefulllistofgoods subject toexcise duty?
Answer:
Atthetimeofsubmission ofWT/ACC/KAZ/3, Table 4.2provided thefulllistofgoods
subjecttoexciseduty.However,GovernmentResolutionNo.1747of31December1996andResolution
No1748of31December 1996introduced newexcise duty. Anupdated version ofTable 4.2isprovided
below:WT/ACC/KAZ/6
Page9
Goods Subject toExcise Tax Domestic Rates Import Rates
1.Allalcohol 3.0ECU/L 3.5ECU/L
2.Liqueurs andvodka products 0.6ECU/L 0.6ECU/L
3.Vodka 0.7ECU/L 3.0ECU/L
4.Fortified drinks, juices andbalsam 0.6ECU/L 3.0ECU/L
5.Wine 0.2ECU/L 0.8ECU/L
6.FineWine 0.2ECU/L 0.8ECU/L
7.Cognac 0.3ECU/L 3.0ECU/L
8.Champagne 0.2ECU/L 0.8ECU/L
9.Beer 0.5ECU/L 0.2ECU/L
10.Wine-making ingredients 0.2ECU/L 0.8ECU/L
11.Tobacco products andother products containing
tobacco0.75ECU per
1000 units2.0ECU per1000
units
12.Sturgeon andsalmon, theirroe,anddelicacies made
therefrom100% 100%
13.Gold, platinum orsilver jewellery 40% 40%
14.Cured andnon-cured furskins (except mole, rabbit,
dog,deer, sheep skins)7% 50%
15.Cured andnon-cured furskins ofKarakul 7% 50%
16.Wearing apparel made ofKarakul 10% 50%
17.Coats, short coats, jackets, andmantles with
decoration made from Karakul10% 50%
18.Wearing apparel made ofnatural fur(except mole,
rabbit, dog,deer, sheep)10% 50%
19.Overcoats, short coats, jackets andmantles with
decoration made from fur(except mole, rabbit, dog,
deer, sheep)10% 50%
20.Clothing made ofnatural leather 50% 50%
21.Objects made ofcrystal, including lighting appliances 50% 50%
22.Crude oil 7ECU perton 7ECU perton
23.Diesel fuel 6ECU perton 6ECU perton
24.Gasoline (other thanaviation gasoline) 31ECU perton 31ECU perton
25.Passenger automobiles N/A 10-50%
26.Lorries withacarrying capacity under 1.25ton N/A 15%
27.Oldlorries withacarrying capacity under 1.25ton
(more than10yearold)N/A 30%
28.Firearms andgasweapons (other thanthose forthe
needs ofState agencies)20% 40%WT/ACC/KAZ/6
Page10
Question 34.
Allalcohol intended foruseintheproduction ofliqueurs, vodka products, fortified drinks and
juice, wineandbalsam provided thatitispurchased byalicensed producer isexempt from excise
tax. Isimported alcohol treated inthesame wayasdomestic alcohol forthese purposes?
Answer:
Government Resolution No.974of14July1995 stipulated thatalldomestically produced
alcohol intended foruseinproduction ofliqueurs, vodka products, fortified drinks andjuice, wine
andbalsam, provided thatitispurchased byalicensed producer isexempt fromexcise tax.Government
Resolution No.891of28June1996stipulated thesame thing asResolution No.974of14July1995
butforimported alcohol.
Government Resolution No.974of14July1995 andGovernment Resolution No.891of
28June1996 were bothrecognized invalid respectively byGovernment Resolution No.1747 of
31December 1996 andGovernment Resolution No.1748 of31December 1996.
Inaddition,GovernmentResolutionNo.1747of31December1996statedthatalldomestically
produced winematerials areexempt from excise taxprovided theyarepurchased byalicensed wine
producer withintention ofuseintheproduction ofwine.
Seasonal Duties
Question 35.
Under Kazak Lawistheimposition ofseasonal taxes limited tocertain product sectors?
Answer:
Article 109ofthePresident 'sDecree of20July1995onCustoms Activities intheRepublic
ofKazakstan No.2368("Customs Code") provides forthepossibility ofapplication ofseasonal duties
without limiting ittocertain product sectors.
Question 36.
Please listallthetariff headings which aresubject toseasonal duties.
Answer:
Kazakstan hasnot,sofar,enacted regulations forapplying seasonal duties orapplied seasonal
duties. Therefore, thelistoftariff headings which maybesubject toseasonal duties hasnotyetbeen
developed.
Question 37.
When areseasonal duties applied?
Answer:
Kazakstan hasnot,sofar,enacted regulations forapplying seasonal duties orapplied seasonal duties.
Therefore, thisissuehasnotyetbeenaddressed. Application ofseasonal duties willbeinconformity
withWTO rules.
Question 38.
Isadistinction made between imported anddomestic products?
Answer:
Seasonal duties arecustoms duties onimported products andcannotbydefinition beimposed
ondomestic products. Application ofseasonal duties willbeinconformity withWTO rules.WT/ACC/KAZ/6
Page11
IV.1(e) Quantitative import restrictions, including prohibitions, quotas andlicensing systems
Question 39.
Does Kazakstan currently maintain anyimport prohibitions?
Answer:
AccordingtoGovernmentResolutionNo.129of19February1993,printedorpaintedmaterials
directed toward undermining stateandpublic system, promoting war,terrorism, racism aswellas
pornography areprohibited from importation toKazakstan.
Question 40.
What sortofimport restricting measures could Kazakstan envisage taking toprotect theright
ofconsumers ortoprotect ownership rights?
Answer:
Kazakstan hascurrently asystem ofcertification (seesection IV.3.b andIV.3.c andAnnex 5
ofWT/ACC/KAZ/3) andasystem ofimport licensing (seesection IV.1.f andAnnex 3of
WT/ACC/KAZ/3) toprotect therightofconsumers. Kazakstan doesnotenvisage using anyother
systems inthefuture. Regarding protection ofproperty rights suchasintellectual property, Kazakstan
plans toestablish border enforcement mechanisms andiscurrently intheprocess ofdrafting necessary
regulations.
Question 41.
CanKazakstan confirm thatitdoesnotintend inthefuture tointroduce import quotas?
Answer:
Kazakstan doesnotintend tointroduce import quotas inthefuture asamatter oftradepolicy.
However, Kazakstan mayintroduce import quotas incases connected with(i)balance ofpayment
problems andinaccordance withWTO rules and(ii)asanemergency measure according toArticle
XIXofGATT.
IV.1(f) Import licensing procedures
Question 42.
Kazakstan states that"when alicense isrefused theapplicant ...mayappeal totheMinistry
ofIndustry andTrade onanadministrative basis". Could Kazakstan please clarify iftheapplicant
hasrecourse toanindependent appeal body, since theMinistry ofIndustry andTrade isalso
theauthority thatissues thelicense?
Answer:
Yes. Anapplicant forimport license mayappeal, according toarticle 20oftheLawon
Licensing, toacourt oftheRepublic ofKazakstan within 30daysfrom thedateofrefusal toissue
suchlicense bytheMinistry ofIndustry andTrade.
Question 43.
Ifnot,what istherationale behind thisarrangement?
Answer
Question isnotapplicable. Seeabove answer.WT/ACC/KAZ/6
Page12
Question 44.
There isanadministrative charge forissuing alicense of9,200 Tenge. Could Kazakstan give
more precise indications onhowexactly these charges arecalculated tocover theservices rendered
(GATT art.VIII) ?
Answer:
Theadministrative charge ofTenge 9,200 forissuing alicense isnotcurrently based onthe
costofservices rendered (GATT article VIII). Prior toaccession totheWTO, Kazakstan willreview
thisadministrative charge toensure thatitreflects thecostofservices rendered.
IV.1(j) Pre-shipment inspection
Question 45.
PleaseprovideamoredetaileddescriptionofKazakstan'sPreShipmentInspectionsystem,including
explanations astohowthissystem isinconformity withtherelevant WTO Agreement, inparticular
onPre-shipment Inspection andCustoms Valuation.
Answer:
Thesystem ofPre-Shipment Inspection (PSI) wasintroduced 1January 1996 according to
Government Resolution No.1301 of4October 1995. Thepurpose ofintroducing PSIistoverify
quality, quantity andprices ofimported goods aswellastohavereliable classification andexact
calculation ofcustoms payments andfees. Allproducts imported toKazakstan aresubject toPSIexcept
thefollowing:
- allproducts originating from CIScountries;
- shipment under US$3,000 (contract value);
- precious stones andmetals;
- objects ofart;
- explosives;
- ammunition, weapons, implements ofwar;
- liveanimals;
- current newspapers andperiodicals;
- household andpersonal effects;
- parcel postandcommercial samples;
- giftsbyortoforeign governments, international organizations, charities, humanitarian
organizations;
- giftsandsupplies todiplomatic andconsular missions andtoorganizations depending on
theUnited Nations; and
- nuclear materials ortechnology.
PreShipment Inspection inKazakstan isconducted bytheSociété Générale deSurveillance
andisimplemented according toGovernment Resolution No.1302of4October 1995, theAgreement
between theCustoms Committee ofKazakstan andtheSociété Générale deSurveillance, theWTO
Agreement onPreShipment Inspection aswellasinternationally accepted practices inthesphere of
independent inspection.
PreShipment Inspection inKazakstan operates inconformity withWTO Agreement on
PreShipmentInspectionwithoneexception;PreShipmentInspectiondoesnotapplytogoodsoriginating
from CIScountries.
Customs Valuation ofgoods isperformed onthebasisofrulesofcustoms valuation ofgoods
according totheWTO Agreement onCustoms Valuation.WT/ACC/KAZ/6
Page13
Please note PreShipment Inspection hasbeentemporarily suspended inKazakstan. The
Customs Committee iscurrently re-negotiating contract withtheSociété Générale deSurveillance.
IV.1(k) Application ofinternal taxes onimports
Question 46.
TheMemorandum mentions Kazakstan 'spolicy onNational Treatment oninternal taxation but
notonregulatory aspects ofsale,offering forsale,purchase, transportation, distribution oruse.
What isthecontent ofKazakstan 'spolicy inthisarea?
Answer:
Imported goods aresubject tonational treatment onallregulatory aspects ofsale,offering
forsale,purchase, transportation, distribution andusewithonlyoneexception. TheLawonOiland
theLawonSubsurface Utilization require investors togivepreferences toKazakstani goods and
equipmentiftheyarecompetitiveintermsofecologicalandtechnologicalcharacteristics,price,operating
parameters, andsupply conditions.
Question 47.
Please explain howitcomplies withArticle III.4 ofGATT ?
Answer:
Withtheexception ofgoods andequipment intheoilandgassector, thereisnodiscrimination
between imported anddomestic goods inallregulatory aspects ofsale,offering ofsale,purchase,
transportation, distribution anduse.
IV.1(l) Rules ofOrigin
Question 48.
Please clarify whether proof oforigin isrequired forproducts originating from allcountries or
onlyfrom those countries exporting toKazakstan under apreferential scheme ?
Answer:
Acertificate oforigin ismandatory forgoods thatareexported toKazakstan under a
preferential tariff scheme. However, importers ofgoods from allcountries arerequired todeclare
toCustoms thecountry oforigin oftheirgoods. Pursuant toArticle 144oftheCustoms Code, if
Customs hasreason tobelieve thatinformation withrespect toorigin isnotreliable, orifthedocuments
presented toCustoms donotcontain anyinformation concerning origin, Customs mayrequire that
theimporter provide acertificate oforigin.
Inaddition, Article 144provides thatacertificate oforigin isrequired inthefollowing
circumstances: forgoods thataresubject toquantitative restrictions (quotas) orother foreign trade
measures; where stipulated ininternational treaties towhich Kazakstan isaparty; and,where required
bylegislation oftheRepublic ofKazakstan intheareaoftheprotection ofthenatural environment,
public health, protection oftherights ofKazakstani consumers, public order, national security and
anyother vitalinterests oftheRepublic ofKazakstan. Atpresent, suchcircumstances donotexist.
Question 49.
Where proof oforigin isrequired, what constitutes thatproof ?
Answer:
Acertificate oforigin constitutes proof oforigin. Pursuant toArticle 145oftheCustoms
Code, acertificate oforigin must unequivocally witness thatthegoods originate from thespecifiedWT/ACC/KAZ/6
Page14
country, anditmust contain (1)thewritten declaration oftheconsignor thatthegoods comply with
therelevant criteria oforigin, and(2)thewritten assurance oftheauthorized body inthecountry of
export which issued thecertificate thattheinformation presented inthecertificate istrue. IfCustoms
hasdoubt about theauthenticity ofthecertificate ortheinformation contained therein, itmayrequest
additional information fromthebodythatissued thecertificate oforigin ortheauthorized bodyofthe
country thatisindicated asthecountry oforigin ofthegoods.
Particular forms oforigin certificates arerequired forcertain shipments. A"Form A"is
required forgoods imported under theGeneralized System ofPreferences. A"CT-1" isrequired
forgoods originating inCIScountries thatareeither subject toexcise tax(with theexception of
automobiles) orareclassified under oneofthefollowing tariff categories:
Code of
Commodity
NomenclatureName ofGoods
0901 21000
9001 22000
0902 10000
0902 30000
From 5705 00
8471
8473 330000
8521
From 8522 90910
From 8522 90990
8525 30919
8528
8516 50000
9009
61
except
611593100
62
except
621132100
621133100
621142100
621143100Coffee roasted
Tea
Carpets
Automatic dataprocessing machines
Party andaccessories oftheautomatic dataprocessing machines
Video recording orreproducing apparatus
Parts andaccessories ofapparatus ofvideo recording orreproducing
apparatus
Television cameras
Television receivers
Microwave ovens
Photocopying apparatus
Knitwear garment andaccessories
Textile garments andaccessories
Question 50.
Please provide amore detailed explanation ofhowthecountry oforigin isascertained.
Answer:
Therulesfordetermination oforigin ofgoods aresetoutinArticles 141to147ofKazakstan 's
CustomsCodeandthe"AgreementoftheHeadsoftheCommonwealthofIndependentStatesConcerning
theRules forIdentifying theCountry ofOrigin ofGoods" (September 24,1993). Inaddition, the
rulesoforigin forpurposes oftheGeneralized System ofPreferences aredescribed intheagreement
among CIScountries concerning "Rules toDetermine theOrigin ofGoods ofDeveloping Countries
forGranting Tariff Benefits" (April 12,1996).WT/ACC/KAZ/6
Page15
These rules arelargely based ontheprinciples ofAnnex D.1oftheKyoto Convention.
Imported goods aredeemed tooriginate inthatcountry where theyarewholly produced ormanufactured
or,where twoormore countries contribute tothemanufacture oftheimported good, thatcountry in
which thegood islastsubstantially transformed.
Thefollowing goods areconsidered tohavebeenwholly produced ormanufactured in
onecountry:
i. mineral products extracted fromitssoilorinitsterritorial waters oronitscontinental shelf;
ii. vegetable products harvested orgathered inthatcountry;
iii. liveanimals bornandraised inthatcountry;
iv. products obtained from liveanimals inthatcountry;
v. products ofhunting andfishing inthatcountry;
vi. production extracted orproduced intheworld ocean byvessels ofthatcountry, orvessels
leased (chartered) bythatcountry;
vii. secondary rawmaterials andwaste which aretheresult ofproduction orother operations
which areperformed inthatcountry;
viii. production obtained inopencosmos onspace ships ofthatcountry orspace ships leased by
thatcountry; and
ix. goods manufactured orproduced exclusively from production ofitems 1-8.
Agoodisconsidered tohaveundergone asubstantial transformation if:(1)thereisachange
inthetariff classification ofthegoodatthefour-digit levelasaresult ofthatprocessing, (2)thegood
hasundergone industrial ortechnological operations which areconsidered sufficient toconfer origin,
or(3)acertain percentage value ofthegood maybeattributed tothatcountry. Additional legislation
concerning rulesoforigin areintheprocess ofbeing drafted. Article 142oftheCustoms Code further
provides thatachange inorigin willnotberecognized where thegood merely undergoes oneofthe
following operations: operations necessary forthepreservation ofthegoods during storage or
transportation, operations forpreparation ofgoods forsalesandtransportation (such asbreaking bulk,
grouping ofpackages, sorting, andrepacking), simple assembly operations, ormixing ofgoods without
changing theessential characteristics ofthegoods.
Question 51.
Under what circumstances might a"group ofcountries beconsidered asonecountry fororigin
purposes"? Forexample, doestheEuropean Community count asonecountry fororigin purposes?
Answer:
Under Article 141oftheCustoms Code, agroup ofcountries maybeunderstood asthesingle
country oforigin oftheimported good. Thecircumstances under which agroup ofcountries may
besotreated arenotfurther defined bylaw.
Atpresent, theonlygroup ofcountries thataretreated asonefororigin purposes arethe
CIScountries. The"Resolution oftheHeads oftheCommonwealth ofIndependent States Concerning
theRules forIdentifying theCountry ofOrigin ofGoods" (September 24,1993) thusprovides that
ifgoods areprocessed consecutively intwoormore CIS-member states, those states maybeconsidered
asasingle whole forthepurposes ofdetermining origin ofthegoods.WT/ACC/KAZ/6
Page16
IV.1(m) Anti-dumping regime
Question 52.
Itisstated thatredress isgranted when "imports inflict orthreaten toinflict damage todomestic
manufacturers ofsimilar ordirectly competing goods", which doesnotappear tobeinlinewith
current WTO standards. Could Kazakstan stateprecisely thelevelofinjury which issufficient
toauthorised anti-dumping measures andthetypes ofdomestic products which maybenefit from
anti-dumping measures under Article 115oftheCustoms Code.
Answer:
Kazakstan iscurrently intheprocess ofdrafting alaw"OnAnti-Dumping Measures" which
willbetheonlylegislation governing dumping measures inKazakstan. Above raised issues willbe
regulated inthislawandinlinewithWTO standards.
Inaddition, itisnotyetdefined which types ofdomestic products maybenefit from
anti-dumping measures.
Question 53.
Could Kazakstan alsoprovide information onanyprogress inthepreparation ofanew
anti-dumping law, which isonitslegislative agenda forthenext three years according to
paragraph III.4 oftheMemorandum ontheForeign Trade Regime.
Answer:
Kazakstan iscurrently drafting alaw"OnAnti-Dumping Measures" taking intoaccount WTO
requirements. Thislawisexpected tobesubmitted toParliament in1997.
IV.1(n) Countervailing dutyregime
Question 54.
Itisstated thatredress isgranted when subsidised products "inflict damage", which doesnot
appear tobeinlinewithcurrent WTO standards. Could Kazakstan please statetheprecise level
ofinjury which issufficient toauthorize countervailing dutymeasures under Article 116ofthe
Customs Code?
Answer:
Kazakstan iscurrently intheprocess ofdrafting alaw"OnCountervailing Measures" which
willbetheonlylawgoverning countervailing dutymeasures inKazakstan. Above raised issues will
beregulated inthislawandinlinewithWTO standards.
Question 55.
Could Kazakstan alsoprovide information onanylegislative development inthefield
ofsubsidies andCountervailing duties, which donotappear asaseparate itemonitslegislative
agenda forthenextthree years according toparagraph III.4oftheMemorandum ontheForeign
Trade Regime.
Answer:
Kazakstan iscurrently drafting thelaw"OnCountervailing Measures" taking intoaccount
WTO requirements. Thislawisexpected tobesubmitted toParliament in1997.WT/ACC/KAZ/6
Page17
IV.1(o) Safeguard regime
Question 56.
TheMemorandum ontheForeign Trade Regime states thatredress isgranted when
imports "inflict orthreaten toinflict damage", which doesnotappear tobeinlinewithcurrent
WTO standards. Could Kazakstan please state theprecise levelofinjury which issufficient to
authorize safeguard measures under Article 114oftheCustoms Code.
Answer:
Kazakstan iscurrently intheprocess ofdrafting alaw"OnSafeguard Measures" which will
betheonlylawgoverning safeguard measures inKazakstan. Above raised issues willberegulated
inthislawandinlinewithWTO standards.
Question 57.
Could Kazakstan alsoprovide information onanylegislative development inthefieldofsafeguards,
which donotappear asaseparate itemonitslegislative agenda forthenextthree years according
toparagraph III.4 oftheMemorandum ontheForeign Trade Regime.
Answer:
Kazakstan iscurrently drafting thelaw"OnSafeguard Measures" taking intoaccount WTO
requirements. Thislawisexpected tobesubmitted toParliament in1997.
Question 58.
Furthermore, please confirm thatnosafeguard measures havebeentaken andthatnoinvestigation
hasbeen opened onthebasis ofArticle 114oftheCustoms Code.
Answer:
TheGovernment ofKazakstan confirms thatnosafeguard measures havebeenadopted and
thatnoinvestigation hasbeenopened onthebasis ofArticle 114oftheCustoms Code.
IV.2 Export Regulation
IV.2(b) Customs tariff nomenclature, types ofduties, dutyrates, weighted averages ofdutyrates
Question 59.
When willtheexport duties applied towheat other thandurum wheat beeliminated?
Answer:
Theexport duties applied towheat otherthandurum wheat wereeliminated on1August 1996
(theResolution oftheGovernment oftheRepublic ofKazakstan asof12March 1996, No299).
IV.2(d) Export licensing procedures
Question 60.
Please specify more precisely thaniscurrently thecaseinAnnex 9,which products aresubject
toexport licensing.
Answer:
Kazakstan would like,first, toprovide thefollowing amendments toTable A9.1 ofAnnex 9:WT/ACC/KAZ/6
Page18
i. Thefollowing itemshould beadded toTable A9.1 according toGovernment Resolution No
712of6June1996 "Onintroduction ofAmendments andAdditions toGovernment Resolution No
298of12March 1996".
Name ofGoods Code ofCommodity
NomenclatureTheMinistries and
Departments Whose
Prior Approval is
Required
Special technical devices intended
forperformance ofspecial operative
andinvestigation efforts, devices for
protection ofinformation, other
devices ofdouble application
(including parts thereto, software),
instructive andtechnical
documentation relating tospecial
technical devices (including both
design andmaintenance)8301, 8517, 8518, 8520, 8521,
8525, 8526, 8527, 8528, 8531,
9013, 9022 (only special
technical devices, devices for
protection ofinformation and
other devices ofdouble destiny)
8529, 8543 (only forspecial
technical devices)Committee for
National Security.
ii. According toGovernment Resolution No.1154 of23September 1996, goods under the
twocodes 2804and280540100 arenolonger subject toexport licensing. Atthesametime, thegoods
under thefollowing twocodes became subject toexport licensing: 380450 and380490.
Inaddition, Kazakstan would liketoaddthefollowing tosection IV.2(c) "Quantitative Export
Restrictions, including prohibitions, quotas andlicensing systems":
- Government Resolution No.1269 of15October 1996 requires thattheexport of
electro-technical products intheformofscraps andwaste ofnon-ferrous metals (aluminium
andcopperconductors,powerandcommunicationcables,startersandtransformerssubstations
elements) isonlypossible afterobtaining thepermission oftheStateInspection onControl
ofRational Utilization ofFerrous andNon-Ferrous Metals.
Table A9.1precisely describes thegoods subject toexport licensing except forthefollowing:
a. Narcotics andpsychotropic agents, venoms. Government Resolution No.1027 of
19August1996definesthelistofnarcotics,highlyactivesubstances,poisonoussubstances,andchemical
agents subject tocontrol when exported orimported. Theresolution doesnotspecify thecodes of
suchgoods. However, goods subject tocontrol fallunder thefollowing lists:
- listofnarcotics agents according toUnified Conventions onNarcotics Agents of1961 ;
- listofhighly active substances andlistofpoisonous substances according toUnited Nations
Convention onFight against Illegal Turnover ofNarcotics of1961 and1988; and
- listofchemical agents contained inTables IandIIofUnited Nations Convention of1988.
b. Certain types ofrawmaterials, materials, equipment, technologies andscientific technical
information, which maybeusedincreation ofarmaments andcombat equipment. Aprecise listis
currently being defined. Kazakstan willnotify WTO assoonassuchlistisapproved bytheGovernment.
c. Materials, equipment andtechnologies which havepeaceful application butmaybeusedfor
creation ofrocket. nuclear, chemical, andother types ofmass destruction weapons. Aprecise listWT/ACC/KAZ/6
Page19
iscurrently being defined. Kazakstan willnotify WTO assoon assuchlistisapproved bythe
Government.
d. Service andCivil Armaments. TheLawonState Control forTurnover ofSome Types of
Weapons of27October 1993defines service andcivilarmaments without codenomenclature. Service
armaments arethose armaments used byenterprises, organizations, andestablishments during
implementation oftaskstheyareauthorized toperform suchasprotection oflifeandhealth ofpeople,
property, natural resources aswellasarmaments usedbyParliament deputies andofficials. Civil
armaments arethose armaments forusebycitizens forthepurpose ofselfdefense, hunting andsport.
Civil armaments aredivided intothefollowing three categories: (1)gasweapon ofselfdefense, (2)
sport weapons, and(3)hunting weapons.
e. Devicesforprotectionfromcombatpoisonoussubstances,componentsandaccessoriestherefor.
Aprecise listiscurrently being defined. Kazakstan willnotify WTO assoonassuchlistisapproved
bytheGovernment.
Question 61.
Foreachproduct subject toexport licensing, please provide theWTO justification forrequiring
suchlicensing.
Answer:
Thefollowing tablesummarizes thereasons behind export licensing.
Name ofGoods Reasons forExport License
1.Pharmaceuticals, medical equipment Medical Safety
2.Pharmaceuticals forveterinary purposes and
veterinary equipmentMedical Safety
3.Ivory, horns, hoofs, antlers ofyoung Siberian stag,
corals andsimilar materialsEcological Safety
4.Pharmaceutical rawmaterials ofvegetable and
animal originMedical Safety
5.Narcotics andpsychotropic agents, venoms Illegal turnover ofnarcotics, venoms
andpoison agents
6.Information onthesubsurface byregion anddeposit
offuelandenergy andmineral rawmaterials, located
intheterritory oftheRepublic ofKazakstan andwithin
theboundaries ofthecontinental shelfandmarine
economic zone. Collection materials onmineralogy and
palaeontology (970500000 -onlyonmineralogy and
palaeontologyEconomic Safety
7.Certain types ofrawmaterials, materials, equipment,
technologies andscientific-technical information, which
maybeusedincreation ofarmaments andcombat
equipmentNational Security andinaccordance
withtheLawonExport Control of
Armaments, Military Equipment and
Product ofDual Use
8.Materials, equipment andtechnologies which have
peaceful application butmaybeusedatcreation of
rocket, nuclear, chemical andother types ofmass
destruction weaponsNational Security andinaccordance
withtheLawonExport Control of
Armaments, Military Equipment and
Product ofDual UseWT/ACC/KAZ/6
Page20
Name ofGoods Reasons forExport License
9.Enciphering devices (including enciphering
equipment, parts forenciphering equipment and
software forenciphering), instructive andtechnical
documentation relating toenciphering devices
(including bothdesign andmaintenance)National Security andinaccordance
withtheLawonExport Control of
Armaments, Military Equipment and
Product ofDual Use
10.Powder, explosive devices andpyrotechnics National Security andinaccordance
withtheLawonExport Control of
Armaments, Military Equipment and
Product ofDual Use
11.Precious natural stones anditems made thereof,
waste, powders andrecovered precious natural stones,
pearls anditems made thereof, amber anditems made
thereofEconomic Safety
12.Precious metals, alloys, items made thereof:
metals, plated precious metals anditems made thereof:
oresandconcentrated oresofprecious metals, wastes
andscrapEconomic Safety
13.Semi precious stones anditems made thereof Economic Safety
14.Service andcivilarmaments Human Safety
15.Devices forprotection from combat poisonous
substances, components andaccessories thereforNational Security andinaccordance
withtheLawonExport Control of
Armaments, Military Equipment and
Product ofDual Use
16.Instructive documentation relating toproducts of
military designation (design andoperation) National
Security andinaccordance withtheLawonExport
Control ofArmaments, Military Equipment and
Product ofDual UseNational Security andinaccordance
withtheLawonExport Control of
Armaments, Military Equipment and
Product ofDual Use
17.Special technical devices intended forperformance
ofspecial operative andinvestigation efforts, devices
forprotection ofinformation, other devices ofdouble
application (including parts thereto, software),
instructive andtechnical documentation relating to
special technical devices (including bothdesign and
maintenance)National Security andinaccordance
withtheLawonExport Control of
Armaments, Military Equipment and
Product ofDual Use
18.Raremetals, rare-earth metals, rawmaterials for
manufacture, alloys, compounds anditems made
thereofEconomic Safety
19.Wild animals, wildplants Ecological Safety
20.Armaments andmilitary equipment, special
components fortheirmanufacture, works andservices
inthesphere ofmilitary technology collaborationNational Security andinaccordance
withtheLawonExport Control of
Armaments, Military Equipment and
Product ofDual Use
21.Nuclear materials, technologies, equipment and
installations, special non-nuclear materials, sources of
radioactive radiation, including radioactive wasteInternational Obligations "Agreement
onNon-Proliferation ofNuclear
Armaments", 1993WT/ACC/KAZ/6
Page21
Thereasons forrequiring permission toexport electro-technical products intheformofscraps
andwaste ofnon-ferrous metals (aluminium andcopper conductors, power andcommunication cables,
starters andtransformers substations elements) arethefollowing:
- providesafetyofvitallyimportantobjectsofenergycommunicationsandindustrialenterprises;
and
- prevent misappropriation ofnon-ferrous metals, scrap andwastes anddeplenishment of
equipment containing non-ferrous metal units.
IV.2(e) Other measures, e.g.minimum export prices, voluntary export restrictions, orderly
marketing arrangements
Question 62.
What isthepurpose ofregistering export contracts?
Answer:
Inaddition tostatistical purposes, thepurpose ofregistering export contract onacommodity
exchange istoprevent theexport atdumping prices ofproducts listed inTable A9.3 ofAnnex 9of
WT/ACC/KAZ/3.
PleasenotethatTableA9.3ofAnnex9needstobeamended.GovernmentResolutionNo.895
of12July1996 removed "crude oil--including gascondensate --"(2709) from thelistofproducts
subject toexport contract registration. Inaddition, "Guts, bladders andstomachs ofsheep" (05400000)
and"cotton linters" (140420000) needtobeadded toTable A9.3.
Asaresult oftheaforementioned amendments, approximately 11%(instead ofapproximately
26%previously) oftotalvalue ofexport (based on1995export date)issubject tocontract registration.
Question 63.
Isregistration ofexport contracts anautomatic process which doesnotaffect theability ofthe
exporter toproceed withexportation?
Answer:
Inaddition tostatistical information, theexport contract isreviewed forthepurpose of
comparing prices toaverage world market prices ofsimilar goods. Ifprices arewaybelow average
world market prices, thentheexporter isrequested toprovide justification forsuchlowprices.
Question 64.
Please provide afulllistofproducts forwhich there areminimum export prices, giving thelevel
oftheminimum export price.
Answer:
Government Resolution No.1492 of5December 1996 eliminated theprocedures for
establishing minimum export prices.
Question 65.
Foreachproduct, what isreason forapplying minimum export prices?
Answer:
Question isnotapplicable. Seeabove.WT/ACC/KAZ/6
Page22
Question 66.
Please explain howtheminimum export prices were calculated.
Answer:
Question isnotapplicable. Seeabove.
IV.2(h) Import dutydrawback schemes
Question 67.
Aretheimport dutydrawbacks andrefunds mentioned inthisparagraph granted inexcess of
thelevelofapplicable duties?
Answer:
Import dutydrawbacks arelimited totheamount ofduties andtaxes paiduponimportation.
IV.3 Internal Policy, Affecting Foreign Trade inGoods
IV.3(a) Industrial policy, including subsidy policies
Question 68.
Could Kazakstan please statewhether itplans toeliminate itsexport subsidies (andother prohibited
subsidies itmight have inforce) upon accession totheWTO.
Kazakstan 'samount ofprohibited subsidies wasapproximately US$100million in1996and
constituted approximately 0.5% ofGDP. Kazakstan doesnotplantoeliminate export subsidies upon
accession totheWTO. ButKazakstan plans togradually eliminate suchsubsidies inaccordance with
Article 29oftheSubsidies andCountervailing Measures Agreement.
Question 69.
DoesKazakstan wishtoinvoke Article 29oftheSubsidies andCountervailing Measures
Agreement inrespect ofanyofitssubsidies?
Answer:
Yes. Allsubsidy programmes inforce inKazakstan arecovered byArticle 29andKazakstan
wishes toinvoke theprovisions ofthisarticle inrespect ofallsuchsubsidy programmes.
Question 70.
Does Kazakstan maintain anysubsidy contingent ontheuseoflocally produced inputs, within
themeaning ofArticle 3oftheSubsidies andCountervailing Measures Agreement?
Answer:
Yes. Subsidies contingent ontheuseoflocally produced inputs wasapproximately
US$25million in1996 andconstituted approximately 0.1% ofGDP.
IV.3(b) Technical regulations andstandards, including measures taken attheborder withrespect
toimports
Question 71.
Kazakstan willhavetoaccede totheTBT-Agreement from thefirstdayofaccession totheWTO.
What practical steps isKazakstan taking orplanning totaketoprepare fortheaccession tothe
TBT Agreement?WT/ACC/KAZ/6
Page23
Answer:
Kazakstan hasjoined ISOandInternational Organization ofLegislative Metrology (IOLM)
andtakes into account International standards indeveloping andrevising itsstandards.
Reference-Information Fund ("Inquiry Point") hasbeenestablished anditsfunctions areconnected
withtheobligations ofaccession totheWTO. Kazakstan plans toreview (andamend ifneeded) during
accession itslegal regime concerning standards andtheoperations ofexisting inquiry point and
consultation agency toensure fullconformity toWTO agreement onTBT.
Question 72.
Could Kazakstan please provide anoverview ofregulations relating todifferent products/product
areas.
Answer:
InKazakstan, thefollowing types ofregulations relating todifferent products/products areas
areused:
i. Standards (GOSTs, STRK)developed bytechnical committees andissued byGosStandard.
These documents include mandatory andrecommended requirements related tothegroups
ofunified products andmethods oftesting.
ii. Technical Conditions (TU) developed byproducers andregistered byGosStandard. These
documents relate tospecific products andtheycannotestablish lower requirements thanthe
mandatory requirements ofstandards.
Inaddition, Annex 5ofWT/ACC/KAZ/3 provides anoverview ofother regulations relating
todifferent products/product areas.
Question 73.
Could Kazakstan please comment onthefactthattheLaw"Onstandardization andcertification"
hasasoneofitsmain goals tomeet "consumers 'interests related toquality" andthat"quality"
isnotlegitimate objective within themeaning ofGATT TBT Agreement articles 2and5.
Answer:
Provisions oftheLawOnStandardization andCertification concerning quality arefocused
ontheprotection ofconsumers 'interests concerning product quality related toassuring safety forlife
andhealth oftheconsumers andprotection oftheenvironment.
Article 8.3ofthesame lawliststhefollowing asmandatory requirements ofstandards:
- safety forlifeandhealth ofpopulation
- protection ofenvironment
- compatibility andinterchangeability capacities; and
- rules ofpackaging, marking andmethods ofcontrol ofcorrespondence tomandatory
requirements.
Therequirements assuring consumers 'characteristics related toquality ofproducts are
recommended ones.
Question 74.
Arethestandards used inKazakstan voluntary ormandatory? Iftheyaremandatory, could
Kazakstan please state therational behind this?WT/ACC/KAZ/6
Page24
Answer:
Standards inKazakstan havemandatory andrecommended requirements. Therational behind
mandatory requirements istoensure:
- safety forlifeandhealth ofpopulation;
- protection ofenvironment;
- compatibility andinterchangeability; and
- rules ofpackaging andmarking, andmethods ofcontrol ofcorrespondence tomandatory
requirements.
According toarticle 8.3oftheLaw onStandardization andCertification, mandatory
requirements maybestipulated toprotect theinterests oftheentity requesting theintroduction ofa
specific standard. However, asdescribed inAnnex 5ofthedocument WT/ACC/KAZ/3, there isa
process fordevelopment andintroduction ofnewstandards inwhich allconcerned parties participate.
Recommended requirements include those ensuring consumers 'characteristics related tothe
quality ofproducts.
Question 75.
HasKazakstan theintention ofgradually moving away from theuseofGOST-standards tothe
useofinternational standards? Ifso,what isthetimetable andthepriorities forthischange-over?
Answer:
Newly developed standards andrevised GOST standards represent authentic translation of
ortakeintoaccount requirements ofinternational standards. Anumber ofGOST standards currently
correspond completely toISO/IEC standards. Itisexpected thatduring thenextfiveyears, halfof
GOST standards willbeharmonized withrequirements ofinternational standards. TheLawOn
StandardizationandCertificationenvisagesdirectuseofinternationalstandardsbyKazakstaniproducers.
Question 76.
Could Kazakstan please provide more in-depth information ontheprocedures andrequirements
connected withthemandatory andthevoluntary system ofcertification. Forexample :Does the
Kazak certification system contain thepossibility ofusing amanufacturers 'declaration? Does
Kazakstan usepre-market certification inanyproduct areas?
Answer:
TheKazak Certification System (KCS) isregulated byanumber ofnormative documents.
Themain normative document isSTRK3.0-94 "State system ofcertification oftheRK.General
provisions". Allterms anddefinitions usedinthese documents correspond toGuideline ISO/IEC 2
andstandard ISO8402.
Mandatory certification means certification ofproducts forcorrespondence tomandatory
requirements ofstandard orother normative documents providing safety forlifeandhealth ofpeople,
property ofindividuals andenvironment.
Voluntary certification means certification ofproducts carried outbyinitiative ofproducer,
seller orcustomer fortheircorrespondence tostandards orother normative documents andspecial
requirements ofthecustomer.
Themain purposes oftheKCSarethefollowing:
- protection ofthecustomers against purchase (usage) ofcertain products, including imported
ones, which aredangerous forlifeandhealth ofpeople, property ofpeople andenvironment;WT/ACC/KAZ/6
Page25
- annulment oftechnical barriers totrade, provision ofcompetitiveness ofproducts.
KCSisopenforparticipation ofstatebodies, enterprises andorganizations ofallproperty
forms located inKazakstan andforeign firms andorganizations. Theaccreditation ofcertification
bodies, inspection bodies, testing labs(centres) andauditors iscarried outbytheAccreditation
Commission ofGosStandard. Theprocess ofaccreditation offoreign andnational certification entities
isthesame.
Toensure confidence intheresults ofcertification, thecertification body should fulfil the
following criteria:
- independence ofcertification body;
- organizational structure providing forimplementation ofcertification tasks;
- availability ofafundofnormative andtechnical documentation onthequality systems,
production andtesting methods according towhich certification iscarried outorconfirmed
access tosuchfund;
- availability ofaccredited testing labs(centres) thatarepartofthestructure ofthecertification
body orinteract withitoncontractual basis;
- availability ofskilled andspecially trained andattested personnel;
- ability todemonstrate itscapacities inrendering services initsdeclared fieldofcertification
onadequate levelaccording torequirements ofGosStandard.
Thenormative-methodical baseoftheKCSincludes:
- standardsandothernormativedocuments(RK,national,GOSTandinternational)inaccordance
withwhich product certification andmethods ofproduct testing arecarried out;
- normative documents forquality systems (international standards ISO9000 -9004);
- asetofState standards andguidance documents ofKCS;
- asetofguidance documents determining systems ofcertification;
- reference, reporting andother documentation concerning certification.
KCSenvisages thefollowing procedure ofconducting work concerning product certification:
- submission ofapplication tocertification body bytheapplicant;
- sending ofdecision concerning theresults ofconsideration oftheapplication totheapplicant;
- making acontract between theapplicant andcertification body toconduct work onproduct
certification;
- making acontract between certification body andparticipants called upon bycertification
body toconduct product certification work;
- selection, identification ofsamples (probes) oftheproduct andtheirsubmission totesting
lab(centre);
- testing ofthesamples oftheproduct;
- analysis oftheobtained results andtaking decision concerning possibility toissuecertificate
ofcorrespondence andlicense;
- issuanceofcertificateandintroductionofcertifiedproductintoStateRegisterofKCS.Making
licensing agreement between certification body andapplicant;
- inspectioncontroloverstabilityofcertifiedcharacteristicsofproductandfunctioningofsystem
ofquality (ifitisenvisaged bycertification scheme);
- information about theresults ofcertification ofproduct.WT/ACC/KAZ/6
Page26
Iftheapplicantwishestoappealthemeasuresrelatedtoitsapplicationforproductcertification,
theapplicant should submit anappeal inwritten formtotheappellation commission ofthecertification
bodynolaterthanonemonth aftergetting notification regarding thedecision made. Thereasons should
bedescribed indetail. Submission oftheappeal doesnotsuspend thedecision made.
Iftheapplicant doesnotagree withthedecision oftheappellation commission, itmay
eventually appeal totheAppellation Commission ofGosStandard. Thedecision made bytheAppellation
Commission ofGosStandard isfinal.
TheKazak Certification System (KCS) allows thepossibility tousemanufacturer 'sdeclaration
ifitisnotpossible tocarry outtesting ofagiven product inKazakstan. Pre-market certification is
notusedinKazakstan.
Question 77.
Does Kazakstan accept asequivalent certificates from third country certification bodies?
Answer:
Kazakstan recognizes certificates issued bystatecertification bodies ofother CIScountries.
Certificates issued forproducts produced inthird countries arenotrecognized inKazakstan. For
example, aRussian certificate issued forproducts produced inJapan isnotrecognized inKazakstan
Inaddition, thefollowing foreign firms have been accredited byGosStandard toissue
certificates: GasdeFrance (France), Mertcontrol (Hungary), Société Générale deSurveillance
(Switzerland), Turkish Institute ofStandards (Turkey).
Question 78.
HasKazakstan developed aquality assurance system?
Answer:
Therequirements forquality assurance aredetermined inevery standards forspecific kind
ofproduct. Certificate ofquality istobeissued byproducer. Asarule,consumers 'characteristics
ofproduct areindicated inthecertificate ofquality.
Question 79.
Could Kazakstan please provide further information onthissystem oronanyplans todevelop
suchasystem.
Answer:
Inthefuture, Kazakstan plans tofurther develop andimprove itssystem ofquality assurance
forcertain groups ofproducts including perishable products, parts andcomponents forassembling
inmachinery building andother industries.
Question 80.
Could Kazakstan alsoplease provide further information onitsaccreditation system?
Answer:
Accreditation ofacertification bodyisanofficial recognition byGosStandard thatsuchbody
isauthorized tocarry outcertification ofaproduct forcorrespondence totherequirements ofspecific
standards andother normative documents. Accreditation means delegation byGosStandard ofits
functions andrights forcertification toacertification body.WT/ACC/KAZ/6
Page27
Accreditation ofcertification bodies envisages thefollowing stages:
- submission andexpertise ofapplication documents;
- appointment ofacommission oninspection ofapplicant entity;
- inspection ofapplicant entity; and
- expertise ofthematerials ofinspection ofapplicant entity, preparation andissuance ofthe
accreditation documents.
Inspection overtheactivity ofanaccredited certification bodyiscarried outbyGosStandard
withassistance ofinspection control bodies accredited fortherighttoconduct control overthisactivity.
Planned inspection control iscarried outduring thewhole period ofaccreditation onaverage twice
peryear. Grounds forconducting unscheduled inspection ofacertification body arethefollowing:
- information about non-observance byacertification body ofthegeneral
- procedures ofcertification ofproducts established byKCS; and
- complaints concerning thequality ofproducts certified byaspecific certification body.
Please seeanswer toquestion number 76ofthisdocument foradditional information on
accreditation system.
IV.3(c) Sanitary andphytosanitary measures, including measures taken withrespect toimports
Question 81.
Does Kazakstan anticipate anydifficulties inapplying theSPSAgreement infullonaccession?
Answer:
Kazakstan anticipates difficulties inapplying theSPSAgreement infullonaccession and
willneed anadjustment period tobring domestic rules andsanitary-hygiene norms inlinewith
international standards.
IV.3(d) Trade-related investment measures
Question 82.
DoesKazakstan intend tonotify themeasures listed related toinvestment intheoilandsubsurface
sectors under theTRIMS Agreement.
Answer:
Yes.
Question 83.
Please confirm thatKazakstan maintains noother TRIMS Agreement inconsistent measures.
Answer:
Kazakstan doesnotmaintain anyother TRIMS Agreement inconsistent measures.
IV.3(f) Freezones
Question 84.
Please confirm whether ornotanyfreezones established inthefuture willbefully subject to
thecoverage ofKazakstan 'sfuture commitments asaWTO member.WT/ACC/KAZ/6
Page28
Answer:
Free zones established inthefuture willbefully subject tothecoverage ofKazakstan 'sfuture
commitments asaWTO member.
Question 85.
Please indicate whether ornotgoods produced orimported intofreezones under thespecial tax
andtariff regimes envisaged forthese zones willbesubject tonormal customs formalities, taxes
andtariffs when entering therestofKazakstan.
Answer:
Goods produced orimported intofreezones under thespecial taxandtariffregimes envisaged
forthese zones willbesubject tonormal customs formalities, taxes andtariffs when entering therest
ofKazakstan.
IV.3(g) Freeeconomic zones
Question 86.
Please confirm whether ornotfreeeconomic zones willbefully subject tothecoverage of
Kazakstan 'sfuture commitments asaWTO member.
Answer:
Freeeconomic zones willbefullysubject tothecoverage ofKazakstan 'sfuture commitments asa
WTO member.
Question 87.
Please indicate whether ornotgoods produced orimported intofreeeconomic zones under the
special taxandtariff regimes envisaged forthese zones aresubject tonormal customs formalities,
taxes andtariffs when entering therestofKazakstan.
Answer:
Goods produced orimported intofreeeconomic zones under thespecial taxandtariffregimes
envisaged forthese zones aresubject tonormal customs formalities, taxes andtariffs when entering
therestofKazakstan.
IV.3(l) Government procurement practices
Question 88.
Does Kazakstan intend tojointheGovernment Procurement Agreement? Ifnot,why?
Answer:
Yes. Please notethatKazakstan iscurrently intheprocess ofdrafting agovernment
procurement lawbased onUNCITRAL model government procurement law. Thislawisexpected
tobesubmitted totheParliament in1997.
Question 89.
Does theKazakstan Government collect statistics onprocurement?
Answer:
Noexcept forprocurement ofgrain forState reserves (seeSection 3.cofAnnex 1of
WT/ACC/KAZ/3)WT/ACC/KAZ/6
Page29
Question 90.
What istheoverall value ofpublic sector purchasing inKazakstan?
Answer:
Such information isnotavailable.
Question 91.
Please provide abreakdown ofthepublic procurement market bothbycontracting entity and
product type?
Answer:
Such information isnotavailable.
Question 92.
Isprice theonlycriterion forevaluating bidsunder Resolution No586orarecontracts also
evaluated byreference toan"economically most advantageous offer" approach?
Answer:
According toArticles 10and16ofResolution 586,thecriteria usedtoevaluate bidsareset
byaBidding Commission (inprocurements forGoods onthe"General Purpose List" hereinafter the
"List") orother State Procuring agencies (forprocurements ofgoods notontheList)onacaseby
casebasis. Price, however, isseldom theonlycriterion applied inawarding contracts.
Question 93.
Ifso,under what conditions arethedifferent evaluation methods used?
Answer:
Seetheanswer tothepreceding question.
Question 94.
Isthere acentral agency which controls theapplications ofResolution No586andmonitors possible
infringements.
Answer:
TheMinistry ofEconomy andtheMinistry ofFinance bothbroadly control theapplication
ofResolution 586.AllMinistries, StateCommittees andotherorganizations funded bytheStatebudget,
which procure goods andservices (hereinafter State Procuring Agency) submit their forecasts of
anticipated procurements totheMinistries ofEconomy andFinance onaperiodic basis. ABidding
Commission oftheMinistry ofEconomy, moreover, procures allgoods andservices which appear
onthe"List ofGeneral Purpose Goods andServices" (the"List") regardless oftheMinistry, State
Committee orotherorganization requiring theprocurement. There isnocentral agency, assuch, which
hasaspecific mandate tomonitor possible infringements; rather, eachStateProcuring Agency -whether
itistheBidding Commission, Ministry, StateCommittee orotherorganization monitors theapplication
ofResolution 586.
Question 95.
Dodetailed rules existontherequirement topublish tender andcontract award notices?
Answer:
Resolution 586contains nodetailed rulesgoverning publication oftender terms orcontract
award notices. Theonlyspecific language inResolution 586which addresses publication isfoundWT/ACC/KAZ/6
Page30
inArticles10and16whichmerelyrequirethat"...announcementofintenttoprocureandthepreparation
ofrequirements andconditions of[participation] shallbecommunicated through publication inthe
mass media andcirculation ofInvitations toBidtopotential bidding participants" (emphasis added).
Question 96.
Ifso,what information must these notices contain, andwhere aretheypublished?
Answer:
Seeanswer toprevious question
Question 97.
Cansuppliers whodispute theaward ofacontract seekredress through national courts ora
tribunal system?
Answer:
Asupplier whodisagrees withthedecision ofaStateProcuring Agency hastherighttoappeal
thatdecision asfollows:
- administratively -within theState Procuring Agency andthereafter totheGovernment of
theRepublic ofKazakstan;
- judicially -tothe"Arbitration Board" ofthecourt where thepetitioner islocated and
thereafter atahigher leveljudicial authority;
- criminally -bycomplaining totheDirectorate ofPublic Prosecution.
Question 98.
What remedies areavailable?
Answer:
Remedies mayinclude annulment oftheoffending procurement decision, theconduct ofthe
tender anew, andadministrative orcriminal fineswhere appropriate.
Question 99.
Canforeign suppliers participate intenders covered byResolution No.586?
Answer:
Yes. Resolution No.586doesnotstipulate anyconstraints totheparticipation offoreign
suppliers ingovernment procurement tenders.
Question 100.
Isthere anoffset policy and,ifso,howoften areoffset arrangements negotiated onacase-by-case
basis?
Answer:
Resolution No.586doesnotstipulate anyoffset policy.
Question 101.
DoesKazakstan 'sprocurement lawmake provision forasystem ofdomestic andprice preferences?
Answer:
Yes.WT/ACC/KAZ/6
Page31
Question 102.
Arethese mandatory oroptional?
Answer:
Theaforementioned domestic price preferences aremandatory.
Question 103.
How, precisely, dotheyoperate?
Answer:
Resolution No.586stipulates that,forprocurement ofgoods orservices appearing onthe
List,domestic suppliers aregiven apriority overforeign suppliers where, other things being equal,
theirprices donotexceed those oftheforeign supplier bymore than20%.
Question 104.
How aretheymanaged?
Answer:
Theaforementioneddomesticpricepreferencesapplyonlytoprocurementofgoodsandservices
appearing ontheListandassuchtheapplication ofthesepricepreferences aremanaged bytheBidding
Commission within theMinistry ofEconomy.
Question 105.
Does apolicy tosupport local industry existinKazakstan?
Answer:
There isnopolicy tosupport localindustry which isreflected inResolution No.586beyond
theselection ofgoods andservices which appear ontheList.
Question 106.
Istheprocurement ofcertain products reserved forlocal industry?
Answer:
Theanswer isno.
Question 107.
Ifso,isthelistofthese products available?
Answer:
Seetheprevious answer
Question 108.
What aretheprocedures andthecriteria toshort-list candidates inthecases oflimited tendering?
Answer:
There isnoprocedure forlimited tendering setforth inResolution No.586.
Question 109.
DoesKazakstan haveanytrade agreements withother countries which cover public procurement?
Ifso,which countries?WT/ACC/KAZ/6
Page32
Answer:
Kazakstan hasnoagreements ofsuchtype.
IV.3(m) Regulation oftrade intransit
Question 110.
Please explain inmore detail what ismeant bythelastpartofthissection, which states that
"Article 35oftheCustoms Code provides thatthetransit ofgoods shall becarried outunder
permission oftheCustoms except forcases where theGovernment hasadopted another decision
asaretaliatory measure todiscrimination orother actions byforeign governments orunions which
encroached ontheinterest ofKazakstan."
Answer:
Thequoted provision isintended toallow theGovernment ofKazakstan tolimitthetransit
through theterritory oftheRepublic ofgoods originating incountries ortheirunions which havetaken
actions thatharm theinterests ofKazakstani entities. Thecircumstances inwhich theprovision may
beapplied arenotfurther defined bylaworimplementing legislation. Thisprovision hasnotbeen
applied todate.
IV.4 Policies Affecting Foreign Trade inAgricultural Products
Question 111.
Please provide theinformation requested inWT/ACC/4 ondomestic support andexport subsidies.
Answer:
Information requested inWT/ACC/4 ondomestic support andexport subsidies wascirculated
asAnnex 11ofWT/ACC/KAZ/3.
V. TRADE RELATED INTELLECTUAL PROPERTY REGIME
V.1 General
Question 112.
HastheKazak Government theintention toadhere toanyinternational conventions other than
those mentioned initsForeign Trade Memorandum, forexample theRome Convention? Ifso,
what isthepossible time-frame?
Answer:
TheRepublic ofKazakstan isintending toaccede totheRome Convention, unfortunately,
ithasnotyetformally defined atime-frame foraccession.
Question 113.
TheKazak Government states thatitisprepared tocomplete theprocess ofaccession totheBerne
Convention. What isthetime-frame, please?
Answer:
TheStateAgency onCopyrights andRelated Rights hassubmitted aformal proposal tothe
Government thattheRepublic ofKazakstan accede totheBernConvention. Thatproposal iscurrentlyWT/ACC/KAZ/6
Page33
being considered byrelevant State agencies. Unfortunately, aformal time-frame foraGovernment
Resolution onaccession hasnotyetbeendefined formally.
Question 114.
With regard tofeesandtaxes, could theGovernment ofKazakstan bemore precise when using
theterm "monthly evaluation index" (Annex 10oftheMemorandum)?
Answer:
Article 5,Clause 13oftheTaxCode oftheRepublic ofKazakstan provides thattheMonthly
Evaluation Index isamonthly ratedefined annually intheRepublican Budget (orother legislative act)
forthepurposeofcalculatingpensions,allowances,andothersocialpaymentsandforapplyingpenalties,
taxes, feesandother payments. During 1996, theMonthly index varied quarterly asfollows: inthe
firstquarter -320Tenge, inthesecond -380,inthethird-460,inthefourth -530Tenge. TheDraft
Budget for1997 provides thefollowing projections: firstquarter -550Tenge, second -565,third-
585,fourth -620Tenge.
V.2 Substantive standards ofprotection, including procedures fortheacquisition and
maintenance ofintellectual property rights
V.2(a) Copyright andRelated Rights
Question 115.
How arecomputer programs protected?
Answer:
According toArticle 7(1)and(2)ofthe"Law Concerning Copyright andRelated Rights"
(hereinafter the"Copyright Law"), computer programs (including operational systems forelectronic
calculating machines) areprotected bycopyright. Recent amendments tovarious laws, assetforth
in"Additions andAmendments toCertain Legal ActsofKazak SSR" dated 16July1996, moreover,
provides foradministrative, civilandcriminal responsibility fortheviolation ofcopyrights.
Question 116.
How doesKazak legislation incorporate Article 18Berne Convention withregard toperformers
andproducers ofphonograms?
Answer:
TheCopyright Lawsetsforth theRepublic ofKazakstan 'sapplication oftheprincipal of
theexpiry ofterms ofprotection, (referenced inArticle 18oftheBerne Convention) toperformers
andproducers ofphonograms. Article 29thereof provides thattheexpiry oftheterms ofprotection,
regardless ofwhether thecopyright wasorwasnotpreviously granted protection intheRepublic of
Kazakstan, renders theworks towhich thecopyright previously applied as"national property". As
such, these works maybeusedbyanyperson freeofcharge. Thename andprotection oftheauthors '
reputation, however, must beobserved.
V.2(b) Trademarks, Including Service Marks
Question 117.
What rights areconferred byatrademark?
Answer:
Trademarks provide theirholder withthefollowing rights:WT/ACC/KAZ/6
Page34
- toatrademark certificate which certifies thefactofregistration ofatrademark, thepriority
ofthetrademark, andtheexclusive rightoftheowner ofthetrademark inrespect togoods
andservices indicated inthecertificate (Article 17(2) oftheTrademark Law);
- tointroduce thetrademark, inconnection withgoods orservices asspecified inthetrademark
certificate, into"business circulation" (Article 3oftheLawonTrademarks);
- toenjoy theexclusive useofthetrademark inconnection withgoods orservices asstipulated
inthetrademark certificate foraperiod of10years from thedateofthereceipt ofthe
trademark application bythePatent Office (Article 18oftheLawonTrademarks);
- toassign orotherwise grant theexclusive righttoatrademark inconnection withgoods or
services asspecified inthetrademark certificate toanyperson (whether natural orjuridical)
provided thattheassignment orother agreement isappropriately registered withthePatent
Office (Article 26(1) and(2)oftheLawonTrademarks);
- toapply thetrademark ofanintermediary involved inthesaleofgoods together withthe
trademark ofthegoods 'manufacturer, provided there isamutual agreement between the
manufacturer andintermediary tothiseffect (Article 24(3) oftheLawonTrademarks); and
- todemand thatpersons (whether natural orjuridical) who violate therights ofa
trademark-holder: (a)cease using thetrademark, (b)paytothetrademark-holder full
compensation foranyprofits gained bytheunauthorized useofthemark and(c)remove
anyunauthorized mark orsimilar symbol fromgoods ortheirpackaging, (d)topublish the
decision ofthebody determining theunauthorized useofthemark (Article 31oftheLaw
onTrademarks).
Question 118.
How doesKazak lawprotect well-known marks?
Answer:
Legal protection oftrademarks intheRepublic ofKazakstan isprovided onthebasisofthe
registration andissuance ofatrademark certificate inaccordance withtheprocedures setforthinthe
LawonTrademarks. Article 15(1) oftheTrade Mark Lawspecifically prohibits theregistration of
marks astrademarks which aresimilar oridentical tothose which areprotected byvirtue ofinternational
conventions towhich Kazakstan isaparty. Since theGovernment oftheRepublic ofKazakstan has
declared itsparticipation intheParis Convention, theterms ofthatconvention, specifically Article
6bis,aredirectly applicable inaccordance withArticle 4oftheConstitution. While Kazak lawdoes
notperseprovide protection forwell-known marks, well-known marks will,therefore, beprotected
intheRepublic ofKazakstan byvirtue oftheterms oftheParis Convention.
Question 119.
What aretheexceptions from protecting amark, ifany?
Answer:
Certain names, words orsymbols, assetforthinthefollowing twoArticles oftheLawon
Trademarks, maynotberegistered astrademarks intheRepublic ofKazakstan:
Article 14.Granting therighttouseanitemofindustrial property
1. Anypersonwhichisnotapatentholdershallhavetherighttouseanitemofindustrialproperty
which isprotected byapreliminary patent orpatent onlywiththepermission ofapatent holder (on
thebasis ofalicensing agreement). Inaccordance withthelicensing agreement thepatent holder
(licensor) shallbeobliged togrant therighttousetheprotected iteminthevolume which isstipulated
bytheagreement totheother person (licensee) andthelatter shallassume theundertakings tomake
payments tothelicense orinaccordance withtheagreement andtocarry outanyother actions whichWT/ACC/KAZ/6
Page35
arestipulated intheagreement. Thepayments ofthelicensee shallbeincluded intothecostofproduction
andshallbeequated tothematerial expenditures.
2. Alicensing agreement shallbesubject toregistration withthePatent Department without
which itshallbedeemed invalid.
3. Apatent holder maysubmit tothePatent Department anapplication togrant toanyother
person therighttoobtain thelicense (anopenlicense). Thestatedutyforthesupport ofapatent in
force shallbereduced inthatcaseby50%from thedateofthepublication ofthatapplication.
Aperson whoexpressed thedesire toacquire theindicated licence shallbeobliged toconclude
withthepatent holder theagreement onpayments. Disputes inrespect oftheterms andconditions
ofconcluding theagreement shallbeconsidered bythecourt. Theapplication ofapatent holder to
begranted therighttoopenlicense shallnotberevocable.
4. Intheinterests ofthenational security theCabinet ofMinisters oftheRepublic ofKazakhstan
shallhavetherighttopermit theuseofanitemofindustrial property without theconsent ofthepatent
holder withthepayment tohimofcommensurate compensation.
Thedisputes concerning theamount ofcompensation shallberesolved incourts.
Article 15.Violation ofpatent.
1. Anyphysical person orlegalentity which usesitems ofindustrial property which areprotected
bypreliminary patent orpatent incontradiction tothislawshallbedeemed tobeaviolator ofpatent.
2. Bydemand ofapatent holder theviolation ofapreliminary patent orpatent mustbeterminated
andthephysical person orlegal entity which isguilty ofviolating thepatent shall beobliged to
compensate tothepatent holder theamounts oflosses inflicted, inaccordance withthelegislation of
theRepublic ofKazakhstan.
3. Theclaims toaviolator ofapreliminary patent orapatent maybealsosubmitted bythe
licensee provided thisisstipulated inthelicensing agreement.
Question 120.
IntheMemorandum itissaidthataninterested party mayfileapetition fornon-use ifsuch
non-use canbeestablished for5consecutive years. Does Kazak lawrecognize anyvalid reasons
fornon-use bythetrademark owner?
Answer:
Yes. Article 24(5) oftheLawonTrademarks provides thattheowner ofatrademark,
challenged forthenon-use thereof, maysubmit evidence demonstrating thatnon-use hasdueto
circumstances beyond thecontrol oftheowner. ThePatent office, inrendering itsdiscretionary
determination onnon-use, will,therefore, "take the[evidence] intoaccount".
Question 121.
Does Kazak lawcontain anyprovisions determining theconditions onlicensing andassignment
oftrademarks? Please explain.
According toArticle 26oftheLawonTrademarks, thefollowing shallbetheconditions
forlicensing andassignment ofrights toatrademark:WT/ACC/KAZ/6
Page36
- awritten agreement licensing orassigning thetrademark;
- provisions within thelicensing agreement stipulating thatthequality ofthegoods associated
withthelicensee 'suseofthetrademark willnotbeinferior tothose ofthelicenser 's;
- provisionsinthelicensingagreementprovidingtothelicensertherighttosupervisecompliance
withtheterms oftheagreement; and
- compulsory registration oftheagreement between thetrademark holder andlicensee (or
assignee) withthePatent Office.
V.2(c) Geographical Indications
Question 122.
Please explain howKazak lawprotects wines andspirits.
Answer:
Theexisting legislation oftheRepublic ofKazakstan doesnotprotect wines andspirits as
such. Toacertain extent, however, suchprotection maybeinferred from theprotection offered to
products bearing geographical indications assetforthinArticles 16and24oftheLawonTrademarks.
V.2(d) Industrial Designs
Question 123.
InitsMemorandum theGovernment ofKazakstan speaks about preliminary andfullpatents
ofindustrial designs. Could theGovernment ofKazakstan explain what thedifference between
these twoterms isandwhat thelegal effects are?
Answer:
Thedegreeofprotectionprovidedbyapreliminarypatentforanindustrialdesignisfunctionally
equivalent tothatprovided byapatent. Theprincipal difference between these twoterms liesinthe
procedure forissuance andperiod ofvalidity. Inaccordance withArticles 1and24ofthePatent Law,
Preliminary patents forindustrial designs maybeissued afterformal expertise oftheapplication and
arevalidforaperiod offiveyears fromthedateofreceipt oftheapplication formbythepatent office.
Patents forindustrial designs areissued afterconducting anexpertise inessence ofthepatent application,
provided thatthepatent application isreceived within fouryears ofthedatethePatent Office originally
received theapplication forthepreliminary patent. Theexpertise inessence shallinclude acheck
oftheconditions ofpatentability oftheindustrial design (novelty, originality andindustrial application).
Thepatent isthen valid foraperiod oftenyears. Itispossible, moreover, toprolong thevalidity
ofanindustrial design patent foruptofiveyears upon receipt ofapetition bythepatent holder. If
theapplicant, however, doesnottimely submit anapplication forextension, legalprotection ofthe
industrial design shallbecancelled fromthemoment ofthepreliminary patent 'sdateofexpiration.
Question 124.
How aretextile designs protected, please explain?
Answer:
Protection totextile designs isprovided under thegeneral category ofindustrial designs in
accordance withArticle 19ofthePatent Law.WT/ACC/KAZ/6
Page37
V.2(e) Patents
Question 125.
Dotheconditions forgranting apatent include aninventive step?
Answer:
Yes. According toArticle 5ofthePatent Lawaninvention issubject tolegal protection
ifitisnew, contains aninventive stepandcanbeindustrially applied. ThePatent Lawdefines an
inventive stepasastepnotapparent toanexpert inthefieldbased upon information available inthe
relevant fieldofapplication.
Question 126.
Could theGovernment ofKazakstan alsointhiscontext explain inmore detail theterm ofa
"preliminary patent"?
Answer:
Inaccordance withArticles 4and22ofthePatent Law, thetermofvalidity ofapreliminary
patent isfor(5)years fromthemoment theapplication forapreliminary patent isreceived bythePatent
Office. Preliminary patents, moreover, maynotbeextended beyond theinitial 5yearterm; although
itispossible toconvert apreliminary patent intoapatent provided thattheholder ofthepreliminary
patent fulfils allpreconditions forpatentability.
Question 127.
IntheMemorandum itissaidthatnon-use canbeareason forgranting acompulsory license.
Arethere anyother cases thatcanleadtoacompulsory license? Please explain.
Answer:
Inaccordance withArticle 14(4) ofthePatent Law, theGovernment oftheRepublic of
Kazakstan, intheinterests ofnational security, hastherighttopermit theuseofindustrial property
without thepermission ofthepatent holder provided thattheGovernment paystothepatent holder
appropriate compensation.
Question 128.
Does theimportation ofapatented product fulfil thecondition of"working suchapatent"?
Answer:
According toArticle 11(3) and(4)ofthePatent Law, patent holders areobliged to"use[the
patent]". Theuseofthepatent includes, "theintroduction intobusiness circulation oftheproduct which
wascreated withtheuseoftheinvention". Theimportation ofapatented product constitutes the
introduction ofthepatented product intobusiness circulation and,hence, theusethereof.
V.2(f) Protection ofPlant Varieties
Question 129.
IntheMemorandum theGovernment ofKazakstan states thataLawofSelection Achievements
isforeseen forthelegislative process in1997-1998. Does adraft textalready exist? Ifso,could
theKazak Government hand oversuchatextandexplain themain elements?
Answer:
Anofficial draftofaLawonSelection Achievements hasnotyetbeenapproved.WT/ACC/KAZ/6
Page38
V.4 Enforcement
V.4(d) Border measures
Question 130.
IntheMemorandum itisstated thatappropriate adjustments willbemade inthecontext ofthe
adoption ofanewLawonCopyrights andRelated Rights. Could theGovernment ofKazakstan
bemore specific about thepossible time-frame?
Answer:
Theaforementioned amendments willbepresented toParliament thisyear. TheGovernment
hasalready instructed theCustoms Committee toprepare itsproposals onthismatter.
Question 131.
Please provide adraft textandexplain itsmain elements inmore detail?
Answer:
Anofficial version ofthedraftamendments totheCustoms Code hasnotyetbeenprepared.
TheRepublic ofKazakstan willforward acopyoftheofficial draftamendments when theyhavebeen
prepared andapproved. Please note, however, thattheCopyright Agency hasalready submitted a
formal letter totheCustoms Committee requesting amendments tospecific articles totheCustoms
Code Criminal procedures.
Question 132.
Could theKazak Government bemore specific about possible fines incases ofinfringement of
intellectual property rights?
Answer:
(a) Fines Provided forintheAdministrative Code
TheAdministrativeCodeoftheRepublicofKazakstanstipulatesresponsibilityforthefollowing
administrative violations inthesphere ofintellectual property:
i. Article 170-2.
Theusage ofatrademark, asymbol similar thereto, orthename ofaplace oforigin for
goods inviolation oftheestablished norms andrulesshallentail finesupon individuals inanamount
ofuptothree minimum wages, andupon officials inanamount ofuptofiveminimum wages.
Thesame actions committed repeatedly within thecourse ofoneyearupon imposition of
theadministrative punishment stipulated bythefirstpartofthisarticle shallentail finesuponindividuals
intheamount ofuptofiveminimum wages, anduponofficials -intheamount ofuptoseven minimum
wages.
ii. Article 170-3.
Selling, leasing andother illegal useofcopyrighted works orphonograms forcommercial
purposes where thecopyright orworks:
- arecounterfeit, inaccordance withlegislation oftheRepublic ofKazakstan;WT/ACC/KAZ/6
Page39
- contain false information concerning their manufacturer, place ofproduction orother
information which canmislead consumers;
- signhasbeendestroyed orchanged ;
shallentail finesuponindividuals intheamount fromthreetofiveminimum wages, anduponofficials
-intheamount from fivetotenminimum wages asestablished bylegislation oftheRepublic of
Kazakstan withconfiscation ofcounterfeit copies ofworks ofphonograms.
Thesame actions committed byaperson whowithin thesame yearwassubject toan
administrative punishment foroneoftheviolations stipulated inthefirstpartofthisarticle, -shall
entail finesupon individuals intheamount from fivetotenminimum wages, andupon officials -in
theamount fromtentotwenty minimum wages asestablished bylegislation oftheRepublic ofKazakstan
withconfiscation ofcounterfeit copies ofworks orphonograms.
Copies ofworks orphonograms confiscated inaccordance withthefirstandsecond parts
ofthisarticle shallbesubject todestruction except forthecases oftheirtransfer totheholder ofthe
copyright orrelated rights atthecopyright holder 'srequest.
iii. Article 170-4.
Refusal toprovide anauthorized body withtherequired information onincome aswellas
provision offalseinformation onincome received inrelation touseofthecopyright andrelated right
items, -shallentail finesuponindividuals intheamount fromthreetofiveminimum wages, andupon
officials -intheamount fromfivetotenminimum wages asestablished bylegislation oftheRepublic
ofKazakstan onthemoment theoffense iscommitted.
Thesame actions committed repeatedly within thesame yearupon imposition ofthe
administrative punishment, -shallentail finesuponindividuals intheamount fromfivetotenminimum
wages,anduponofficials-intheamountfromtentotwentyminimumwagesasestablishedbylegislation
oftheRepublic ofKazakstan.
(b) Fines Provided forintheCriminal Code
TheCriminal Code oftheRepublic ofKazakstan provides responsibility forthefollowing
types ofcrimes inthesphere ofintellectual property:
i. Article 129.
Appropriation ofauthorship, orthecompulsion ofanauthor toacknowledge co-authorship
bypersons whodidnotparticipate inthecreative activity thatledtoadiscovery, aninvention ora
rationalisation proposal, thedisclosure oftheessence ofadiscovery, aninvention, arationalization
proposal prior totheapplication date-shallentail correctional activity fortheperiod fromonetotwo
years orafineintheamount from twotosixminimum wages, orthecaseshallbepassed ontothe
comrades 'court.
Bureaucracy andprocrastination intheprocess ofreviewing andintroducing inventions and
rationalization proposals, evasion from informing aninventor orarationalization about usage ofhis
inventionorrationalizationproposal,intentionalinaccurateeconomiccalculationorintentionalinaccurate
calculation ofremuneration anddelay inpayment thereof, committed byofficials, -shall entail
correctional activity fortheperiod from onetotwoyears orafineintheamount from twotosix
minimum wages, ordismissal.WT/ACC/KAZ/6
Page40
Disclosure ofanyinformation associated withconfidential discoveries, inventions and
rationalization proposals without anysigns ofstatecrime, -shallentail deprivation offreedom fora
period ofuptooneyearorcorrectional activities fortheperiod ofuptotwoyears, ordismissal.
ii. Article 129-1.
Violation ofcopyrights andrelated rights resulted inillegal useofcopyright andrelated rights
items committed forthepurpose ofgaining profit which inflicted large damage totheholder ofthe
copyright andrelated rights, -shallentail deprivation offreedom foratermfrom onetothree years
withconfiscation ofcounterfeit copies aswellasmaterials andequipment forreproduction thereof
orafineintheamount fromfivehundred toonethousand fivehundred minimum wages asestablished
bythelegislation oftheRepublic ofKazakstan.
Question 133.
What isthepossible time-frame forthenewLawonAuthorship andArtistic Performance
which willamend theCriminal LawandtheCode ofCriminal Procedure?
Answer:
TheCopyright Law (newlaw"OnAuthorship andArtistic Performance") wasadopted on
10June1996. Thecorresponding amendments totheCriminal Code wereintroduced on16July1996.
Amendments totheCode ofCriminal Procedure havenotyetbeendrafted. Suchamendments arelikely
tobeadopted inearly 1998.
Question 134.
Please provide adraft text?
Answer:
AcopyoftheCopyright Law wasprovided totheWTO Secretariat inAugust 1996.
OnJuly16,1996 theLawoftheRepublic ofKazakstan "OnIntroducing Amendments and
Additions toCertain Legal ActsofKazak SSR" hasintroduced additions toCriminal Code ofthe
Republic ofKazakstan intheformoftheArticle 129-1 "Infringement ofCopy andRelated Rights with
thePurpose ofGenerating Profit" withfollowing content:
- "Infringement ofcopy andrelated rights expressed inillegal reproduction, circulation,
distribution oranother illegal usage ofobjects ofcopyorrelated right, performed withthe
purpose togenerate profit thatinflicted serious damage totheowners ofcopy andrelated
rights shallbepunished bydeprivation offreedom fortheperiod ofoneyeartothree years
withconfiscationofcounterfeitcopiesaswellasmaterialsandequipmentfortheirreproduction
orshallbepunished byfineintheamount from 500to1500 minimum salaries established
bylegislation".
VI. TRADE-RELATED SERVICES REGIME
VI.1 General
Question 135.
Kazakstan isrequested toprovide theWorking Party assoonaspossible withasubstantial initial
offer onservices intheGATS framework, binding liberal market access conditions andnational
treatment guarantees onanMFN basis forforeign service suppliers.WT/ACC/KAZ/6
Page41
Answer:
Kazakstan willprovide aninitial offeronservices intheGATS framework, binding liberal
marketaccessconditionsandnationaltreatmentguaranteesonanMFNbasisforforeignservicesuppliers,
prior tothebeginning ofnegotiations.
Professional services
Legal Services
Question 136.
Could Kazakstan explain whether there areannationality requirements inthelegal sector?
Answer:
There arenonationality requirements inthelegalsector inKazakstan. Inorder tobeaState
employee, however, onemustbeacitizen oftheRepublic ofKazakstan. Nevertheless, foreign nationals
arepermitted torender legalservices onbehalf ofState bodies.
Question 137.
Areforeign nationals restricted tothepractice ofinternational laworthelawoftheirhome country,
oraretheypermitted topractice within theKazak lawsystem?
Answer:
Foreign nationals arepermitted topractice within theKazakstani lawsystem.
Question 138.
What requirements govern establishment inthelegal services sector?
Answer:
Theregistration requirements andprocess forlegalentities rendering legalservices arethe
same asforanyother business entity. Licenses, inaddition, arerequired inorder toprovide certain
types oflegalservices (e.g.advocate services, investigation services, court services).
Accounting andauditing
Question 139.
Arethere anynationality requirements governing accounting orauditing?
Answer:
There arenonationality requirements governing accounting orauditing inKazakstan. In
order tobeastateemployee, however, onemustbeacitizen oftheRepublic ofKazakstan. Nevertheless,
foreign nationals arepermitted torender accounting andaudit services onbehalf ofstatebodies.
Inaddition, according totheLawonAudit Activity dated 18October 1993, foreign auditing
firms must obtain permission from theQualification Commission under theMinistry ofFinance to
conduct audit activities inKazakstan.
Question 140.
Arethere anyrestrictions onthetypeofcompany thatcanbeestablished -e.g.doesestablishment
have totaketheform ofapartnership; must aKazak national beinaposition ofauthority?WT/ACC/KAZ/6
Page42
Answer:
Accounting andauditing companies maytaketheform ofpartnership oranyother typeof
legalentity (state enterprise andproduction co-operative) permitted under theKazakstani legislation.
There arefiveforms inwhich partnership maybeestablished: FullLiability Partnership, Commandite
Partnership, LLP(limited Liability Partnership), Partnership withAdditional Liability, andJSC(Joint
Stock Company). Please notethatthere isnorulerequiring thataKazak national beinaposition
ofauthority.Inaddition,anindividualmaypracticeauditingandaccountingactivitieswithoutregistering
asalegalentity.
Other
Question 141.
Inengineering, architectural, integrated engineering andurban planning services itisstated that
permission must begranted forestablishment inthefieldfrom localbodies -what form doesthis
permission takeandwhat arethecriteria?
Answer:
Theprovisions referred toconcern construction permission from theHead ofOblast
Administration (Akim) toconstruct onaspecific landplotandfromthelocalbodyofStateArchitecture
Construction Inspection (SACI).
Two permits areactually required from theAkim. Thefirstpermit isissued afterthe
preliminary project design isagreed upon bythefollowing inthelisted order:
- aprivate orstatecompany licensed andaccredited toapprove construction design. Thisentity
reviews thepreliminary project design forcorrespondence toconstruction norms, rulesand
standards; technological andengineering concerns; environmental, fire,sanitary, andsafety
concerns.;
- Oblast Anti-Fire Department forfireconcern;
- Oblast Department ofEcology andBio-Resources forenvironmental concerns;
- Oblast Sanitary andEpidemiological Inspection forsanitary concerns;
- Chairman ofOblast Land Committee;
- Chief Engineer ofOblast Department ofArchitecture andUrban Planning;
- Chairman ofOblast Department ofArchitecture andUrban Planning;
- Head ofDistrict Administration;
- Deputy Akim (1st); and
- Deputy Akim (2nd).
After thesignatures ofallabove mentioned entities andofficials areobtained, theAkim issues
thefirstpermit. TheConstruction company mayproceed anddevelop afinaldesign which should
bereviewed andapproved byalicensed legal entity ornatural person. Thefinaldesign must be
evaluated forthefollowing concerns: fire,sanitary, environmental, seismological, andsafety. The
second Akim 'spermit isissued afterapproval ofthefinalproject design byalicensed legalentity or
natural person.
Before starting construction, apermit fromthelocalbodyofSACI isrequired. Thispermit
isobtained uponsubmission toSACI ofthefollowing: (i)approval ofthefinalproject design, (ii)the
twopermits issued bytheAkim, and(iii)other relevant documents fromother localbodies (e.g.energy
supervision, municipal andlocal Inspectorate) depending onthetypeandlocation ofthefacility to
beconstructed.WT/ACC/KAZ/6
Page43
Theprocess described above applies equally toforeign andnational construction companies.
Question 142.
Arethecriteria non-discriminatory between foreign andnational service suppliers?
Answer:
Thecriteria formeeting construction norms andrulesandenvironmental, sanitary, andsafety
standards apply equally toforeign andnational service suppliers inthese spheres.
Other Business Services
Question 143.
Under thissection, theMemorandum states thatlicensing requirements areinplace inmany sectors
-could Kazakstan indicate whether anyofthese requirements discriminate between foreign and
national service suppliers? What criteria areapplied?
Answer:
According toarticle 8oftheLaw onLicensing of17April 1995, foreign legal and
natural"persons shallbegranted licenses under thesameconditions andprocedures aslegalandnatural
persons oftheRepublic ofKazakstan, unless itisotherwise stipulated byother legislative acts. As
oftoday, noother legislative actsoftheRepublic ofKazakstan havestipulated discriminatory treatment
inissuing licenses.
Inorder toobtain alicense, anapplicant mustsubmit thefollowing: application; proof of
payment oflicense fee;copyofcertificate ofregistration (ifalegalentity isapplying forlicense); and
documents demonstrating appropriate qualification (qualification requirements).
Currently, statebodies responsible forissuing licenses areintheprocess ofdefining the
qualification requirements foreachtypeoflicenses. Forcertain types oflicenses, approval ofsanitary,
mining, and/or ecological supervision isrequired.
Postal Services
Question 144.
Could Kazakstan explain what the"ecological experience" entails asmentioned inthissection.
Answer:
Thereference inthissection isto"ecological expertise" andnotto"ecological experience".
Anapplicantforalicensetodesign,construct,andoperatenationalmainandinternationalcommunication
linesneeds tosubmit thelicense application package tothestateecological supervision body tobe
evaluated forenvironmental concerns.
Question 145.
IsthePostOffice considered a"natural monopoly" orarethere competing companies inthesector?
Answer:
TheState PostOffice isconsidered a"natural monopoly" andtariff ratesareregulated by
theAnti-Monopoly Committee (AMC). Currently, there areplans toeliminate theStatePostOffice
fromthelistofnatural monopolies in1997. Rates established byprivate competing companies inthis
sector arenotregulated bytheAMC.WT/ACC/KAZ/6
Page44
Currently, thereisnosignificant competition forpostal services within Kazakstan. However,
there arenobarriers toenter thissector. Licenses arerequired tobeengaged inpostal services and
could beapplied forattheMinistry ofTransport andTelecommunications according totheLawon
Licensing.
Please notethattherearecurrently morethandozen national andforeign companies rendering
parcel andcourier services throughout Kazakstan. Companies likeDHL, UPS, Pony Express, TNT,
AseExpress dominate ininternational courier services.
Telecommunications Services
Question 146.
Doalllicensed operators have tousetheKazaktelecom network, oraretheypermitted alsoto
build andoperate their ownnetworks?
Answer:
Licensed operators donothavetouseonlyKazTelecom (Kazaktelecom) network. They are
permitted tobuild andoperate theirownnetworks.
Question 147.
How dothecontracts withforeign telecoms companies tomodernise anddevelop thenetwork
operate?
Answer:
Contracts concluded between foreign telecom companies andKazTelecom tomodernize and
develop thenetwork arecommercial contracts.
Question 148.
Onwhat basis arelicences allocated forthedifferent types oftelecoms services -voice telephony,
mobile telecoms, paging?
Answer:
Inorder toobtain alicense toprovide anytypeoftelecom services, anapplicant should submit
anapplicationaccordingtotheLawonLicensing(application,license,fee,certificateofstateregistration,
andqualification requirements). Qualification requirements should reflect thefollowing: activity and
previous experience inthefieldofcommunication; business planwithgeneral anddetailed description
oftechnical equipment; technical interaction andinterrelation withexisting structure ofthenetwork
tobeusedbytheapplicant; andalllegalrelations connected withfinancing, consumers, andpartners.
Tendersareconductedfortheallocationofradiofrequencyspectraandcellularcommunication.
Financial services -General
Question 149.
What regime isapplied inKazakstan inthefieldoffinancial services tothecross-border supply
ofservices without establishment?
Answer:
There arenorestrictions onthenumber ofnon-resident financial service suppliers andalso
onthevolume ofoperations. Exceptions arethefollowing:WT/ACC/KAZ/6
Page45
- non-residents arenotpermitted topurchase more thancertain share ofstatetreasury bonds
inaspecific auction. Suchshare isdefined bytheMinistry ofFinance priortoeachauction.
Forinstance, non-residents werenotpermitted topurchase more than15%inthelastauction
(28January 1997); and
- nomore than95%ofinsurance riskmaybere-insured outside ofKazakstan.
Banking
Question 150.
Thelaw"OnBanksandBankingActivities"significantlylimitsforeignparticipationinthebanking
sector: thetotalregistered charter fundofallbanks withforeign participation should notexceed
25%oftheoverall registered charter fundofallbanks inKazakstan. Exceptions maybegranted
onacase-by-case basis toforeign banks. This leaves room fordiscretionary measures. Has
Kazakstan considered removing thisrestriction, atleastprogressively overafixed period oftime?
Answer:
Thepurpose ofthe25%limitistodevelop andstrengthen thedomestic banking sector of
Kazakstan. There areplans tostartcancelling suchrestriction beginning 1January 1999.
Question 151.
Could Kazakstan alsoexplain theconditions forthegranting ofexceptional licences?
Answer:
Thetotalregistered charter fundofallbanks withforeign participation is12.9% oftheoverall
registered charter fundofallbanks inKazakstan asof1December 1996. Duetothefactthatsuch
afigure iswaybelow thepermitted ceiling (25%), theNational BankofKazakstan hasnotyetdeveloped
anyadditional regulations todefine theconditions forgranting exceptions onacasebycasebasis.
Question 152.
Could Kazakstan clarify whether direct branching isallowed inthebanking sector, andwhether
foreign banks aresubject toanyceilings asregards their participation inlocal banks?
Answer:
Direct branching isnotallowed inKazakstan.
According toArticle 18oftheLawonBank andBanking Activities of31August 1995, a
non-resident bankhastherighttoopenanaffiliate bank(subsidiary) inKazakstan.
Anon-resident bankmayopenarepresentative office inKazakstan. Buttherepresentative
office isnotallowed torender anybanking services.
Foreign banks arenotsubject toanyceilings withregard totheirparticipation inlocalbanks.
Question 153.
Foreign banks arerequired todeploy their funds indomestic assets. Thisrestriction islikely to
constitute animportant barrier toforeign banks 'operations inKazakstan. Has Kazakstan
considered easing thisrequirement?
Answer:
There areplans tocancel thisrestriction beginning 1January 1999.WT/ACC/KAZ/6
Page46
Question 154.
Kazakstan listsatotal of6prudential ratios setbytheNational Bank. Asalready indicated in
theMemorandum, some ofthem aremore ofarestrictive nature. DoesKazakstan intend tophase
outsuchlimitation inthenearfuture?
Answer:
Themain goalofprudential ratios istoprovide stability inthebanking system andreduce
risksofoperations ofcommercial banks. TheNational Bank ofKazakstan doesnotviewthese ratios
aslimitations toinvestment inthebanking sector. Inaddition, these prudential ratios areconsistent
withtheBasel Agreement.
Question 155.
Foreign banks arerequired toestablish arepresentative office inKazakstan oneyearprior to
thegranting ofalicence. Thisrequirement represents anunnecessary burdensome andcostly
barrier toaccess tothelocal market. HasKazakstan considered eliminating thisrequirement?
Answer:
Thepurpose ofrequiring foreign banks toestablish arepresentative office inKazakstan one
yearprior tothegranting ofalicence istoallow foreign banks tobeacquainted withthecurrent
normative basisinKazakstan anddetermine themaindirections ofbankactivity andnecessary capital.
There areplans tocancel thisrequirement beginning 1January 1999.
Question 156.
Investment banks aresubject tominimum capital requirements. CanKazakstan confirm that
these areapplied onanon-discriminatory basis bothtolocal andforeign investment banks?
Answer:
Minimum capital requirements areapplied onanon-discriminatory basis bothtolocaland
foreign investment banks.
Question 157.
Lendinghasbeenlimitedtocommerciallendingandfactoring,restrictingtheprovisionofconsumer
credit andmortgage services. Canafurther market opening beexpected, ordohighinherent
risks exclude anysuchperspective?
Answer:
WT/ACC/KAZ/3 stated thefollowing:
"Inpractice, lending hasbeenlimited tocommercial lending andfactoring, aswellasto"repo" type
operations withstatesecurities. Consumer credit andmortgage services arelimited atthemoment
duetotheirhighinherent risk".
There arenolegalorregulatory restrictions ontheprovision ofconsumer credit ormortgage
services. However, atthemoment mostcommercial banks perceive risksinperforming suchoperations.
Question 158.
Could Kazakstan confirm thatforeign banks have unrestricted access totheprofessional
Association ofBanks andthatthisisanon-governmental organisation?WT/ACC/KAZ/6
Page47
Answer:
Association ofBanks isapublic, non-governmental organization withanequal openaccess
toforeign anddomestic banks.
Securities
Question 159.
TheMemorandum doesnotcontain adetailed description oftheconditions applying toforeign
securities firms asregards market access andnational treatment. Aretheyallowed toestablish
acommercial presence inallpossible forms (subsidiary, branch, acquisition ofexisting firms),
atleastwithrespect tothose activities which arecurrently permitted inKazakstan?
Answer:
Foreign securities firms arepermitted toestablish acommercial presence inallpossible legal
forms under theKazakstan legislation including different types ofpartnerships, jointstock companies,
andsubsidiaries. Inaddition, foreign securities firms mayacquire existing domestic firms. The
registration process offoreign securities firms isthesame asforanyother legalentity withforeign
participation.
Foreign security firms andnatural persons areallowed toconduct alltypes ofpermitted
securities market activities provided theyobtain proper license(s) from theNational Securities
Commission (forallactivities except securities clearing activity) andtheNational Bank ofKazakstan
(forsecurities clearing activity). Domestic securities firms donothaveanyadvantages overforeign
securities firms inobtaining licenses orconducting securities market activities. Exception towhathas
beensaidisthefollowing: non-residents arenotpermitted topurchase more thancertain share ofstate
treasury bonds inaspecific auction. Such share isdefined bytheMinistry ofFinance prior toeach
auction. Forinstance, non-residents werenotpermitted topurchase more than15%inthelastauction
(28January 1997).
Question 160.
Asregards theissue ofsecurities, theissuer must beaKazak juridical person. WillKazakstan
consider offering foreign juridical persons theright toissue securities?
Answer:
Kazakstan willnotconsider offering foreign juridical persons theright toissue securities
inKazakstan. However, aforeign company registered inKazakstan asaKazakstani legalentity will
havetherighttoissue securities.
PleasealsonotethatforeignsecuritiesareallowedtocirculateinKazakstanwiththepermission
oftheNational Securities Commission.
Question 161.
Asset management services areeither notregulated ornotpermitted (e.g.trust services) under
thecurrent legislation. Could Kazakstan indicate thestateofplayonlegislative/regulatory work
andthelikeliness ofaGATS binding commitment forsuchactivities?
Answer:
Asset management services arepermitted bycurrent legislation oftheRepublic ofKazakstan.
However, implementing regulation fortrustservices isintheprocess ofbeing elaborated.WT/ACC/KAZ/6
Page48
Regarding aGATS binding commitment forsuchactivities, Kazakstan willinform theWTO
inthenearfuture prior tothebeginning ofnegotiations.
Insurance
Question 162.
Foreign insurers arepermitted access tothemarket through establishment ofjointventures with
localcompanies, buttheirparticipation islimited toamaximum of50%. Could Kazakstan clarify
whether direct branching andacquisition ofexisting companies ispossible?
Answer:
Foreign insurers arenotallowed tohave direct branching inKazakstan forengaging in
insurance activities. Direct branching, however, isallowed forengaging inre-insurance activities.
Foreign insurance companies, re-insurance companies, andre-insurance brokers areallowed
toestablish wholly-owned subsidiaries intheform orrepresentative orbranch offices butmayonly
beengaged inre-insurance activities. Acquisition ofexisting insurance companies ispossible. Aforeign
insurer maypurchase upto50%ofalocalinsurance company.
Question 163.
Does Kazakstan intend topermit foreign insurance companies toestablish wholly -owned
subsidiaries?
Answer:
Foreign insurance companies areallowed toestablish wholly-owned subsidiaries intheform
orrepresentative orbranch offices butmayonlybeengaged inre-insurance activities. Inorder to
beengaged ininsurance activities, however, aforeign insurer mustformajointventure withalocal
insurance company. Foreign participation inthiscasemaynotexceed 50%.
Question 164.
Could Kazakstan confirm thatminimum charter capital isapplied inanon-discriminatory manner
bothtodomestic insurers andcompanies withforeign participation?
Answer:
Minimum charter capital isapplied inanon-discriminatory manner bothtodomestic insurers
andcompanies withforeign participation.
AirTransport Services -Supporting Services
Question 165.
Could Kazakstan specify whatsortoflicensing requirements areinplace inthissector andindicate
what timetable isplanned forpermitting other companies toenter themarket forairtransport
supporting services incompetition withKazakstan AirWays?
Answer:
Kazakstan doesnotprohibit companies fromentering themarket forairtransport supporting
services. However, suchcompanies must obtain appropriate licenses. According totheLawOn
Licensing, transportation ofgoods andpassengers aswellasairport activity related toservices tothe
aircraft, goods andpassengers inairports requires license. Foreign anddomestic companies aresubject
tothesame licensing requirements.WT/ACC/KAZ/6
Page49
Anapplicant foralicense mustsubmit anapplication, proof ofpayment oflicense fee,copy
ofcertificate ofregistration (ifalegal entity isapplying forlicense), anddocuments demonstrating
appropriate qualification (qualification requirements). TheRules andnorms areinconformity with
International Civil Aviation Organization (ICAO) requirements. Kazakstan isamember ofICAO.
Question 166.
Istheoperation andpricing ofthese services currently overseen theAnti-Monopoly Committee?
Answer:
Theoperation andpricing ofthese services arenotcurrently overseen theAnti-Monopoly
Committee.
Road Transport Services
Question 167.
Could Kazakstan specify therules governing establishment inthefieldofroad transport -are
foreign service providers permitted toestablish inKazakstan andprovide domestic services?
Answer:
Foreign service providers inthefieldofroadtransport arepermitted toestablish inKazakstan
andprovide domestic services (e.g.repair, technical maintenance, towing, carrental). There areno
restrictions toentry.
VII. INSTITUTIONALBASISFORTRADEANDECONOMICRELATIONSWITHTHIRD
COUNTRIES
VII.2 Economic Integration: Customs Union andFreeTrade Area Agreements
Question 168.
Which trade agreements doesKazakstan consider willneed tobenotified under Article XXIV
oftheGATT 1994 orArticle VoftheGATS?
Answer:
Alltrade agreements ofKazakstan were listed inSections AandBofAnnex 8of
WT/ACC/KAZ/3.
Question 169.
Please provide theWorking Party withthetextsofallFreeTrade Agreements towhich Kazakstan
isaParty.
Answer:
Attachment Btothisdocument provides thetextsofallFreeTrade Agreements, which are
inforce (ratified byallparties), towhich Kazakstan isaParty. Inaddition, Attachment Aprovides
thetextoftheCustoms Union Agreement andallrelated legislative andadministrative acts.
Question 170.
ForeachFreeTrade Agreement, please provide details ofthe%trade overall andineachmajor
sector which isexcluded from thefreetrade regime.WT/ACC/KAZ/6
Page50
Thefollowing tableprovides the%tradeofthetreetraderegime resulting fromtheCustoms
Union between Russia, Kazakstan, andBelarus for1995andthefirstthreequarters of1996. Article 5
oftheCustoms Union Agreement foresees thepossibility tointroduce, incritical situations, temporary
exceptions from freetrade. Currently, nosuchexceptions exist.
1995 January-October 1996
Export Th.
US$%of
total
exportImport Th.
US$%of
total
importExport, Th.
US$%of
total
exportImport Th.
US$%of
total
import
Russian
Federation2,102,631.2 42.3 1,854,404 49.02,426,484.5 45.8 1,960,152.4 56.1
Belarus 57,472.8 1.2 79,767.4 2.1 37,401.9 0.7 104,402.0 3.0
Total: 2,160,104.0 43.5 1,934,171 51.1 2,463,886.4 46.5 2,064,554.0 59.1
Thefollowing tableprovides the%trade ofthetwoFreeTrade Agreements inforce with
theKyrgyz Republic andMoldova, for1995 andthefirst3quarters of1996.
1995 January-October 1996
Export Th.US$ %of
total
exportImport
Th.US$%of
total
importExport,
Th.US$%of
total
exportImport
Th.US$%of
total
import
Kyrgyz
Republic73,274.4 1.53 30,838.0 0.82 91,733.4 1.72 78,098.4 2.24
Moldova 2,467.3 0.05 5,553.5 0.14 1,971.0 0.04 7,913.1 0.23
Total 75,741.7 1.58 36,391.5 0.96 93,704.4 1.76 86.011.5 2.46
Since March 1996, Kazakstan nolonger hasexceptions fromthefreetrade regime withthe
Kyrgyz Republic, given thatKyrgyzstan signed theCustoms Union Agreement.
Thefollowing tableprovides %tradeineachmajor sector excluded fromthefreetraderegime
withMoldova.
1995 January-October
1996
HS Export
Th.US$Import
Th.US$Export
Th.US$Import
Th.US$
1001 Wheat (alltypes) 158.3 - - -
1002 Rye 36.1 - - -
1003 Barley 40.7 - - -
1004 Oats 9.5 250.9 - -
1006 Rice-grain, rice-groats 13.6 - 12.9 -
1007 Sorghum - 30.2 - -
0102 Rye - 2.7 - -WT/ACC/KAZ/6
Page51
1995 January-October
1996
HS Export
Th.US$Import
Th.US$Export
Th.US$Import
Th.US$
4102 Rawskins orsheep orlambs 1.7 - - -
1512 Sunflower-seek, safflower orcotton-
seedoilandtheirfractions butnot
chemically modified- 1.5 - 13.1
1104-1105 Groats 25.6 - 36.4 -
Total 285.5 285.3 49.3 13.1
-notrade
Thepercentages ofexport andimport excluded fromfreetraderegime withMoldova interms
ofKazakstan 'stotalvalue offoreign export andimport arerespectively:
- 0.0057% and0.0057% for1995; and
- 0.0015% and0.0007% forthefirstthree quarters of1996.
Please notethatallpercentages arecomputed withrespect toKazakstan 'soverall foreign
trade.WT/ACC/KAZ/6
Page52
ANNEX
Listofattachments available forconsultation andindiskette form intheSecretariat
(Accessions Division, Room 1126)
A. Customs Union Agreement andRelated Materials
1. Decree ofthePresident oftheRepublic ofKazakstan "OnRatification oftheAgreement
"Concerning theCustoms Union" between theGovernment oftheRepublic ofBelorussia,
theRepublic ofKazakstan andtheRussian Federation" of15September 1995
2. Agreement ontheCustoms Union between theRussian Federation andtheRepublic of
Belorussia of6January 1995
3. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment of
theRussian Federation ontheUniform Procedure forRegulation Foreign Economic Activities
of20January 1995
4. Resolution oftheIntergovernmental Belorussian -Kazakstani -Russian Commission "Terms
ofFormation oftheCustoms Union" of22November 1995
5. Protocol"OnIntroductionofFreeTradeRegimeWithoutExceptionsandRestrictionsBetween
theRepublic ofKazakstan andtheRussian Federation" of20January 1995
6. Protocol between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Kyrgyz Republic andtheGovernment ofUzbekistan Concerning Discussion ofIssues of
ParticipationoftheRepublicofKazakstanintheCustomsUnionbetweenBelorussia,Kazakstan
andRussia ofJuly1995
7. Protocol between theGovernment oftheRepublic ofBelorussia, theGovernment ofthe
Republic ofKazakstan andtheGovernment oftheRussian Federation Concerning Completion
oftheFirstStage ofEnforcement oftheTreaty ontheCustoms Union of22November 1995
B. FreeTrade Agreements (inForce)
1. AgreementonFreeTradebetweentheGovernmentoftheKyrgyzRepublicandthegovernment
oftheRepublic ofKazakstan asof22June1995
2. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment of
theRepublic ofMoldova onFreeTrade of26May199549