RESTRICTED
WORLD TRADE WT/ACC/KGZ/3
23August 1996
ORGANIZATION(96-3306)
Original: English
ACCESSION OFTHE KYRGYZ REPUBLIC
Memorandum ontheForeign Trade Régime
Inacommunication dated 18January 1996(WT/ACC/KGZ/1), theGovernment oftheKyrgyz
Republic applied foraccession under Article XIIoftheAgreement Establishing theWorld Trade
Organization (WTO).
Atitsmeeting on16April 1996, theGeneral Council established aWorking Party withthe
following terms ofreference: "Toexamine theapplication oftheGovernment oftheKyrgyz Republic
toaccede totheWTO Agreement under Article XII,andtosubmit totheGeneral Council
recommendations which mayinclude adraftProtocol ofAccession." Themembership isopentoall
WTO Members indicating theirwishtoserve ontheWorking Party.
Inaccordance withtheestablished procedures (WT/ACC/1), theSecretariat iscirculating the
attached Memorandum ontheForeign Trade Régime received from theGovernment ofthe
Kyrgyz Republic. WTO Members wishing tosubmit questions ontheMemorandum areinvited to
dosoby11October 1996 fortransmission totheauthorities oftheKyrgyz Republic.WT/ACC/KGZ/3
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TABLE OFCONTENTS
Page No.
I. INTRODUCTION 1
II. ECONOMY, POLICIES AND FOREIGN TRADE
1. Economy
(a) General description 1
(b) Current economic situation 3
2. Economic Policies
(a) Main directions ofongoing economic policies 5
(b) Monetary andfiscal policy 10
(c) Foreign exchange andpayments system; relations withtheIMF 12
(d) Foreign anddomestic investment policy 14
(e) Competition policy 14
3. Foreign Trade inGoods andServices (Annex 1refers) 16
4. Domestic Trade inServices 17
5. Information onFinancial Movements Related toNationals Working
Abroad, Remittances, etc. 18
6. Information onGrowth inTrade inGoods andServices 18
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES
AFFECTING FOREIGN TRADE INGOODS AND TRADE INSERVICES
1. Powers ofExecutive, Legislative, andJudicial Branches ofGovernment 18
(a) Powers oftheExecutive 18
(b) Powers oftheLegislature 20
(c) Powers oftheJudiciary 21
2. Government Entities Responsible forMaking andImplementing
Policies Affecting Foreign Trade 21
3. Division ofAuthority Between Central andSub-central Governments 23
4. Legislative Programmes orPlans toChange theRegulatory Régime 23
5. Laws andLegal Acts 25
6. Description ofJudicial, Arbitral orAdministrative Tribunals orProcedures
(a) Judicial procedures 25
(b) Arbitral procedures 25
(c) Administrative procedures 26
IV. POLICIES AFFECTING TRADE INGOODS
1. Import Regulation
(a) Registration requirements forengaging inimporting 26WT/ACC/KGZ/3
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(b) Characteristics ofnational tariff, customs tariff nomenclature (HS),
types ofduties, general description ofthecustoms tariff structure,
weighted average levelofduties onmain customs tariff groupings,
application ofMFN tariff rates, tariff preferences 26
(c) Tariff quotas, tariff exemptions 26
(d) Other duties andcharges, specifying anycharges forservices rendered 27
(e) Quantitative import restrictions, including prohibitions,
quotas andlicensing systems 28
(f) Import licensing procedures (Annex 3refers) 28
(g) Other border measures 28
(h) Customs valuation (Annex 4refers) 28
(i) Other customs formalities 28
(j) Pre-shipment inspection 29
(k) Application ofinternal taxes onimports 29
(l) Rules oforigin 30
(m) Anti-dumping regime 30
(n) Countervailing dutyregime 31
(o) Special purpose duties 31
2. Export Regulation
(a) Registration requirements forengaging inexporting 31
(b) Custom tariff nomenclature, types ofduties, dutyrates,
weighted averages ofrates 32
(c) Quantitative export restrictions, including prohibitions,
quotas andlicensing systems 32
(d) Export licensing procedures 32
(e) Other measures 32
(f) Export financing, subsidy, andpromotion policies 32
(g) Export performance requirements 32
(h) Import dutydrawback schemes 32
3. Internal Policies Affecting Foreign Trade inGoods
(a) Industrial policy, including subsidy policy 33
(b) Technical regulations andstandards, including border measures 33
(c) Sanitary andphytosanitary measures 34
(d) Trade-related investment measures 35
(e) State-trading practices 35
(f) Freezones 35
(g) Freeeconomic zones 35
(h) Trade-related environmental policies 36
(i) Mixing regulations 36
(j) Government-mandated countertrade andbarter 36
(k) Trade agreements leading tocountry-specific quotas allocation 36
(l) Government procurement practices 36
(m) Regulation oftrade intransit 37
4. Policies Affecting Foreign Trade inAgricultural Products
(a) Imports 37
(b) Exports 37
(c) Export prohibitions andrestrictions 37
(d) Export credits, export credit guarantees orinsurance programs 37
(e) Internal policies 37WT/ACC/KGZ/3
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5. Policies Affecting Foreign Trade inOther Sectors
(a) Textiles regime 38
(b) Policies affecting foreign trade inother major sectors 38
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
(a) Intellectual property policy 39
(b) Responsible agencies forpolicy formulation andimplementation 39
(c) Membership ofinternational intellectual property conventions 39
(d) Application ofnational andMFN treatment toforeign nationals 40
(e) Feesandtaxes 40
2. Substantive Standards ofProtection 42
(a) Copyright andrelated rights 43
(b) Trademarks, including service marks 43
(c) Geographical indications, including appellations oforigin 43
(d) Industrial designs 43
(e) Patents 44
(f) Plant variety protection 44
(g) Layout designs ofintegrated circuits 44
(h) Requirements onundisclosed information 44
(i) Anyother categories ofintellectual property 44
3. Measures toControl Abuse ofIntellectual Property Rights 45
4. Enforcement
(a) Civil judicial procedures andremedies 45
(b) Provisional measures 45
(c) Anyadministrative procedures andremedies 45
(d) Anyspecial border measures 45
(e) Criminal procedures 45
5. Laws, Decrees, Regulations andOther Legal ActsRelating totheAbove 46
6. Statistical data 48
VI. TRADE-RELATED SERVICES REGIME
1. General 49
2. Policy Affecting Trade inServices
(a) Government departments, agencies orother bodies 49
(b) Judicial, arbitral oradministrative tribunals 51
(c) Qualification requirements, technical standards andlicensing 52
(d) Provisions governing theexistence andoperation ofmonopolies or
exclusive service suppliers 52
(e) Safeguard measures inrespect oftrade inservices 53
(f-g) Provisions relating tointernational transfers andpayments for
current andcapital transactions inservices 53
(h) Provisions governing theprocurement bygovernmental agencies of
services 53WT/ACC/KGZ/3
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(i) Provisions concerning anyform ofaid,grant, domestic subsidy, tax
incentive orpromotion scheme affecting trade inservices 53
3. Market Access andNational Treatment
(a) Limitations onthenumber ofservice suppliers 53
(b) Limitations onthetotalvalue ofservice transactions andassets 53
(c) Limitations onthetotalnumber ofservice operations oronthetotal
quantity ofservice output 53
(d) Limitations onthetotalnumber ofnatural persons thatmaybe
employed inaparticular service sector 53
(e) Restriction on,orrequirements ofspecific types oflegalentity
through which aservice maybesupplied 53
(f) Limitations ontheparticipation offoreign capital 54
(g) Measures providing forlessthanthetreatment accorded tonational
services orservice suppliers 54
4. Most-Favoured-Nation Treatment 54
5. Description oftheMarket andtheMechanism forRegulating
theMost Prominent Service Sectors
(a) Legal services 54
(b) Telecommunication services 55
(c) Health services 57
(d) Education services 58
(e) Banking services 58
(f) Transport services 60
(g) Construction services 62
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC
RELATIONS WITH THIRD COUNTRIES
1. Bilateral, Plurilateral andMultilateral Agreements Relating
toForeign Trade inGoods andTrade inServices
(a) Bilateral agreements relating toforeign trade ingoods andtrade
inservices (Annex 8arefers) 64
(b) Plurilateral agreements relating toforeign trade ingoods andtrade
inservices (Annex 8brefers) 82
(c) Multilateral agreements relating toforeign trade ingoods andtrade
inservices (Annex 8crefers) 82
2. Economic Integration, Customs Union andFreeTrade Agreements
(a) Economic Integration Agreements (Annex 8drefers) 82
(b) Customs Union Agreements (Annex 8erefers) 84
(c) FreeTrade Area Agreements (Annex 8frefers) 84
3. Labour Market Integration Agreements 85
4. Multilateral Economic Cooperation, Membership intheMultilateral
Organizations, Trade-Related Programmes of
Other Multilateral Organizations 85
_______________WT/ACC/KGZ/3
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ANNEX 1 STATISTICS AND PUBLICATIONS
1. Foreign Trade Statistics forGoods andServices: Responsible Agencies 87
2. Publications Related toStatistics 87
3. Statistical Data 87
(a) Main economic indicators
(i) Gross domestic product (GDP) 88
(ii) GDP percapita 94
(iii) Budget 94
(iv) Production andconsumption ofbasic goods 97
(v) Annual changes inprices 97
(vi) Employment indifferent sectors 99
(vii) Levels ofemployment 100
(viii) Balance ofpayments 101
(ix) Foreign exchange 102
(b) Foreign trade statistics
(i) Foreign trade (aggregates atthetwo-digit HSlevel) 102
(ii) Export statistics 106
(iii) Import statistics 108
(iv) Imports from main suppliers 110
(v) Trade bygeographic areas (main trade partners) 112
(c) Government procurement statistics 114
ANNEX 2 LIST OFLAWS AND LEGAL ACTS 120
1. ListofLaws andLegal ActsRegulating theActivity ofthe
Customs Authorities: Responsible Agencies 120
2. ListofLaws andLegal ActsRelating toNon-Tariff
Regulation ofImports, Exports andTrade inTransit,
Rules ofOrigin: Responsible Agencies 121
3. ListofLaws andRegulations Relating toForeign
Investment: Responsible Agencies 123
4. ListofOther Laws andLegal ActsDealing with
Economic Issues thatAffect Trade: Responsible Agencies 125
5. Material ofRelevance toGATS
(a) Existing laws, regulations oradministrative guidelines which
significantly affect trade inservices 129
(b) Publications orsources ofinformation, concerning measures of
general application, ofrelevance totheGATS 130
(c) Enquiry points, ifany,asforeseen inArticle IIIofGATS 131
ANNEX 3 INFORMATION ONIMPORT LICENSING PROCEDURES 132
1. Outline ofSystems 132
2. Purposes andCoverage ofLicensing 132
3. Procedures 132
4. Eligibility ofImporters toApply forLicense 134
5. Documentation andOther Requirements forApplication forLicense 134
6. Conditions ofLicensing 136
7. Other Procedural Requirements 136WT/ACC/KGZ/3
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ANNEX 4 INFORMATION ONIMPLEMENTATION AND ADMINISTRATION
OFTHE CUSTOMS VALUATION AGREEMENT 137
ANNEX 5 INFORMATION ONTECHNICAL BARRIERS INTRADE 140
1. Description ofRelevant Laws, Regulations, Administrative
Orders, etc.Relating toImplementation andAdministration
ofTechnical Barriers toTrade (allnecessary references should beprovided) 140
2. Information Regarding:
(a) Thenames ofpublications, ifany,onwork relating todraft
technical regulations orstandards andprocedures 144
(b) Thenames andaddresses oftheenquiry points foreseen in
Articles 10.1and10.3oftheWTO Agreement ontechnical barriers to
trade (theAgreement) withanindication astowhether theyare
fullyoperational 144
(c) Thename andaddress oftheagency dealing withconsultations as
foreseen inArticle 14oftheAgreement 145
(d) Thenames andaddresses ofagencies dealing withspecific functions
foreseen intheAgreement 145
(e) Thescope ofresponsibility ofthecentral government authorities in
theareaofnotification requirements foreseen inArticle 10.11
oftheAgreement andofindividual government authorities, ifthe
responsibility isdivided among twoormore suchauthorities 145
(f) Measures andarrangements toensure thatnational andsub-national
authorities preparing newtechnical regulations orsubstantial
amendments toexisting ones, provide early information ontheir
proposals 145
ANNEX 6 INFORMATION ONSTATE-TRADING 146
1. Enumeration ofState-Trading Enterprises 146
2. Reason andPurpose forIntroducing andMaintaining
State-Trading Enterprises 146
3. Description oftheFunctioning ofState-Trading Enterprises 146
4. Statistical Information 147
5. Reasons WhyNoForeign Trade HasTaken Place
(ifthisisthecase) IntheProducts Affected 147
6. Additional Information 147
ANNEX 7 SERVICES 148
1. Business Services
(a) Professional services 148
(b) Computer andrelated services 151
(c) Research anddevelopment services 152
(d) Realestate services 152
(e) Rental/leasing services without operators 152
(f) Other business services 153
2. Communication Services
(a) Postal services 156
(b) Courier services 156WT/ACC/KGZ/3
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(c) Telecommunication services 156
(d) Audiovisual services 157
(e) Other communication services 157
3. Construction andRelated Engineering Services 157
4. Distribution Services 158
5. Educational Services 159
6. Environmental Services 159
7. Financial Services
(a) Allinsurance andinsurance-related services 160
(b) Banking andother financial services (excluding insurance) 161
8. Health Related andSocial Services 165
9. Tourism andTravel Related Services 165
10. Recreational, Cultural andSporting Services (other thanaudiovisual services) 166
11. Transport Services 166
ANNEX 8 169
(a) ListofBilateral Agreements Relating toForeign Trade inGoods
andTrade inServices 169
(b) ListofPlurilateral Agreements Relating toForeign Trade inGoods
andTrade inServices 170
(c) ListofMultilateral Agreements Relating toForeign Trade inGoods
andTrade inServices 171
(d) ListofEconomic Integration Agreements 171
(e) ListofCustoms Union Agreements 171
(f) FreeTrade Area Agreements 172
(g) ListofTrade Agreements orParts ofThem Which Contain
Preferential Trade Provisions, Indicating byHS(2digit)
theTariff Lines Involved, theMargin ofPreference Granted,
Reciprocity Provisions andDetails ofAnyPreferential Treatment 172
ANNEX 9 EXCISE TAX RATES 176
ANNEX 10 SUMMARY OFPROPOSED CUSTOMS DUTY RATES 177WT/ACC/KGZ/3
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I. INTRODUCTION
TheKyrgyz Republic declared itsindependence from theSoviet Union on31August 1991.
Since independence, theKyrgyz Republic hassteadily andconsistently pursued itsmajor economic
objective oftransforming itscentrally planned economy intoamarket economy. Ofallthenewrepublics
created fromdissolution oftheSoviet Union, theKyrgyz Republic iscurrently considered bytheworld
community tohavemade themost significant progress inthetransformation effort.
Thenational currency, introduced inmid-1993, isfreely convertible anditsforeign exchange
value ishighly stable. Prices havebeenliberalized andinflation hasbeensteadily reduced from an
annual rateof1369 percentin1993 toanannual rateof32percentin1995. Thevastmajority of
Stateowned commercial assets andenterprises havebeenprivatized andtheprivatization programme
isscheduled tobecompleted bytheendof1997. Import/export restrictions havebeeneliminated for
almost allitems (with theexception ofsensitive goods likemilitary equipment). Government subsidies
inallareas oftheeconomy havebeeneliminated orarebeing phased out. Theforeign investment
environment isopen, withforeign investors enjoying national treatment. After declining steadily since
independence, GNP experienced positive growth inthefirstquarter of1996.
Thedirection andcomposition offoreign trade isincreasingly shifting away from itsprior,
nearly exclusive, CIS-orientation toward other sources ofsupply andmarkets. TheKyrgyz Republic
believes thatthelongtermsuccess ofitseconomic reforms, aswellasthespeed anddirection ofits
economic development, ishighly dependent onitsfullintegration intotheworld trading system. As
asmall economy, theKyrgyz Republic recognizes itsneedtorelyonforeign suppliers forcertain raw
materialsandfinishedproducts.Therefore,theKyrgyzRepublicdesirestohaveaccesstoalargenumber
ofsuchsuppliers onthemostfavourable terms available. TheKyrgyz Republic alsodesires tosecure
access toforeign markets forKyrgyz products onthemostfavourable terms available. Gaining such
access tonewforeign markets isnecessary bothforbalance ofpayments purposes andtoencourage
investment -bothdomestic andforeign -inthose industries inwhich theKyrgyz Republic hasa
comparative advantage internationally.
Fortheabove reasons, theKyrgyz Republic attaches extremely highimportance toachieving
membership intheWTO. ThisMemorandum contains detailed information ontheeconomy ofthe
Kyrgyz Republic, aswellasitstrade-related policies, legalregime andinternational agreements. It
wasprepared byaninter-ministerial working group andisintended tofacilitate thedeliberations of
theWTO Working Party ontheaccession oftheKyrgyz Republic. TheGovernment ofthe
Kyrgyz Republic isready toprovide anyadditional information thatanymember State oftheWTO
mayrequest.
II. ECONOMY, POLICIES AND FOREIGN TRADE
1. Economy
(a) General description (territory, population, economic specialization, main economic
indicators)
Territory andpopulation TheKyrgyz Republic lieswithin thegeographic areaknown as"Central
Asia" andfallsonthesame latitude asNewYork, Italy, northern Turkey andnorthern Japan. The
timezoneisfivehoursaheadofGMT.TheKyrgyzRepublicbordersKazakstantothenorth,Uzbekistan
tothewest, Tajikistan tothesouth andsouth-west andChina tothesouth-east. Thetotalareais
approximately 199,900 square kilometres. Thetotallength ofitsborder is4,500 km.Thedistance
between north andsouth is453.9 kmandbetween eastandwestis925km. TheKyrgyz Republic
isfairly mountainous, withapproximately 90percentoftheareahaving anelevation exceeding 1,500
meters above sealevel.WT/ACC/KGZ/3
Page2
Ofthetotal landarea, forests account foronly some 5.5percentandarable landfor
approximately 7percent. Cultivated landtotals only1.4million ha,while 9million haareinuse
aspasture land. Theprincipal rivers aretheNaryn, Talas andChui, allofwhich flowwestward and
areusedforirrigation andhydropower generation purposes.
Themaincitiesarethecapital Bishkek (591,700 inhabitants), Osh(222,400), Karakol (62,100),
Jalal-Abad (72,900), Tokmok (62,900) andKara-Balta (49,900). TheRepublic isadministratively
divided intoseven geographic administrative areas, oneforthecityofBishkek andoneforeachof
theRepublic ’ssixoblasts:
- Chui (20,200 sq.km.; 740,000 inhabitants);
- Issyk-Kul (43,100 sq.km.; 424,100 inhabitants);
- Naryn (45,200 sq.km.; 263,300 inhabitants);
- Talas (11,400 sq.km.; 203,800 inhabitants);
- Osh(46,200 sq.km.; 1,461,100 inhabitants); and
- Jalal-Abad (33,700 sq.km.; 826,000 inhabitants).
Asof31December 1995, thetotalpopulation oftheKyrgyz Republic wasapproximately
4,545,100 with65.2 percentliving inruralareas. Population density averages 23persons persquare
kilometre. Theethnic composition ofpopulation consists ofKyrgyz (59.7 percent), Russians
(16.2 percent), Uzbeks (14.1 percent), Ukrainians (1.7percent)andothers (8.3percent)ofwhich
Germans, Tatars, Kazaks, Koreans, Uighurs, Tajiks andDungans arethemostsignificantly represented.
Theaverage lifeexpectancy intheKyrgyz Republic is66.Thegrowth rateofthepopulation
in1995wasapproximately 1.8percent(i.e.abirthrateof2.6percentandadeath rateof0.8percent);
netemigration-immigration emigration\immigration wasinsignificant. Theinfant mortality ratein
1995 was2.7percent. Theliteracy ratein1995 wasapproximately 89percent.
Under theConstitution, asamended on16February 1996, onlyKyrgyz istheofficial language
oftheKyrgyz Republic; however, theConstitution alsoguarantees equal protection forRussian and
other languages. Inpractice, Russian remains thecommon language ofcommunication andall
government legal andsublegal actsarepublished inbothKyrgyz andRussian. Islam isthemost
predominantreligion(nearly80percentofthepopulation),withasubstantialChristianminority(around
18percent) andother minorities (around 2percent).
Economic Specialization Tables summarizing themaineconomic indicators oftheKyrgyz Republic
areprovided forinAnnex 1ofthisMemorandum. Theeconomy oftheKyrgyz Republic isprimarily
agricultural; however only7percentofthelandisarable, ofwhich three-fourths areirrigated. In
1995, agricultural production represented over40percentofgross domestic product (GDP) and
employed over41percentofthepopulation. SeeTables 1-2and1-11inAnnex 1.Theprimary crops
andagricultural commodities aretobacco, grains, potatoes, cotton, meatandwool. Seventy-eighty-
seven percentofallagricultural production in1995 wascontributed bytheprivate sector.
After agriculture, industry isthenextmostimportant sector accounting forabout 22.1percent
ofGDP in1995. In1995, theheavy industry subsector (including construction) accounted for
45.6percentofallindustrial production. Themajor heavy industries were(i)theelectricity generating
-esp.hydroelectric -industry (17percentofallindustrial production), (ii)theferrous andnon-ferrous
mining (especially gold) andmetallurgy industries (10.4 percent) and(iii)themachine-building and
metal-working industries (9.7percent). Inthesame period, thelightindustry subsector accounted
for17.7percentofallindustrial production, mostly duetothecontribution ofthetextile manufacturing
industry (15.6 percentofallindustrial production). Finally, thefoodproduction/processing subsectorWT/ACC/KGZ/3
Page3
accounted for20.9percentofallindustrial production in1995, predominantly duetotheperformance
ofthefoodprocessing industry (17.7 percentofallindustrial production).
Thesignificant industries include:
- electric energy generation andtransmission sector;
- non-ferrousmetallurgy:antimony,mercury,tin,gold,tungsten,uranium,molybdenum,
bismuth, copper andsilver;
- machine building andmetal processing: electro-technical sector, machine tools and
metal-cutting tools;
- foodproduction andprocessing industry: meatproducts, milkproducts, sugar, candies
andbaked goods andconfections;
- textiles andfootwear; lightindustry: textiles andfootwear;
- consumer goods production industry: assembly oftelevision sets,tape-recorders,
washing machines, heaters andhousehold appliances;
- construction materials: cement, bricks, construction panels, reinforced concrete,
asbestos pipes, roofing, marble plates, lime-stones andgypsum.
TheKyrgyz Republic possesses major non-ferrous metal resources including antimony and
antimony oxide, metallic mercury, silver, uranium oxide, tin,tungsten andgold. TheRepublic ’s
antimony output was9,558 tonsin1994and7,053 tonsin1995in1994made up9,588 tons,in1995
-7,053 (around 13percentofworld supply). TheKyrgyz Republic isthethirdlargest producer of
mercury intheworld. Itproduces 14different types ofrareearth metals suchascerium, dysprosium,
erbium, gadolinium andholmium. More than1,000 potential mining siteshavebeenidentified inthe
country, ofwhich 65aregolddeposits. TheKumtor golddeposit (intheIssyk-Kul Oblast region)
isconsidered tobetheeighth largest intheworld.
TheKyrgyz Republic ’stotalhydroelectric potential isestimated at142.5 billion kwperyear.
Atpresent theenergy system consists of20power stations withacapacity totalling 3,500,000 kw,
including 18hydropower stations andtwothermal power stations. In1995, hydropower stations
accounted for11.113 billion kworabout 90.5percent ofallelectricity generated inthe
Kyrgyz Republic. Thermal plants accounted fortheremaining 9.5percent(1.17 billion kw). The
Kyrgyz Republic ’selectric energy system islinked toregional energy gridsconnecting several Central
Asian countries. These grids aremade upofmore than70,000 kilometres oftransmission linesand
482transformer substations withatotalcapacity of7,955 MW.
Themajorindustriesintheservicesectoroftheeconomyincludetransportation,communications,
education andhealth services. Theservice sector hasaccounted forasteady share oftotalemployment
overthelastthreeyears (around 37percentofthetotalemployed population). Inaddition, theservice
sector share ofGDP wasapproximately 30percentin1995.
Attheendof1995, there were anestimated 2,290,000 people inthetotalworkforce. A
breakdown oftheworkforce bysector isshown inAnnex 1,Table 1-11.
(b) Current economic situation
Duringthepost-independenceyears,theKyrgyzeconomyexperiencedasevereeconomicdecline.
GDP for1995 wasapproximately onehalfoftheGDP for1991. Although allsectors generally
participated inthedecline, heavy andlightindustry suffered themost withoutput declining over
50percentfrom1993to1995. However, by1995thedecline appeared tobelevelling off,withGDP
falling 20.1percentbetween 1993 and1994, butonly6.23percentfrom 1994 to1995. Nominal
GDP (i.e.incurrent prices) in1995was15,606.07 million Som(approximately, US$1.442 billion),WT/ACC/KGZ/3
Page4
ofwhich 40.3percentwasgenerated byagriculture, 15.5percentbyheavy andlight industry,
6.6percentbyconstruction and9.4percentbyretailtrade. TheGDPpercapita (based onanestimated
averageannualpopulationof4,514,300450,700)was3,457506.40Somin1995(approximatelyUS$319).
Themost recent dataavailable showed realGDP growth of2percentforthefirstquarter of1996
overthesame quarter of1995.
Thebudget deficit was7.7percentofGDP in1994and11.4percentin1995. Government
expenditures stillexceeded revenues mainly duetoaweak taxcollection system andtothedeclining
taxbasecaused byduetothegeneral economic contraction.
TheKyrgyz Republic participated inthesubstantial inflation thataffected allcountries inthe
ruble zoneduring theearly 1990’s.Significant increases inenergy costs combined withsubstantial
increases inadministrative prices andtheextension oflargedirected credits toStatesector enterprises
continued todrive upprices intheruble zonethrough early1993. InMay1993, theKyrgyz Republic
lefttheruble zone, adopting anational currency (theSom). TheSomwasintroduced atarateof
4Som/US$ 1.Restrictive credit-monetary policies andreduced budgetary expenditures in1994
contributed toreduce theannual rateofinflation. Theinflation ratedecreased from 1365 percent
in1993 to87.2percentin1994 andto31.9percentin1995. Forthefirstthree months of1996,
themonthly inflation ratehasaveraged under 4percent.
TheSomdevaluedagainsttheUS$atanannualrateof210percentduring1993and130percent
during 1994. During 1995, theSombecame relatively stable compared toUS$, devaluating atanannual
rateofbetween 10-11 percent.
Theauction-determined refinance rates oncredits increased significantly during 1993. The
realinterest ratewasapproximately 190percentinAugust 1994, butonly90percentattheendof
thatyear. Beginning inmid-1994, theforeign exchange value oftheSomstabilized, theinflation rate
continued todecline andconsequently realinterest ratesbegan tofall.Throughout 1995realinterest
ratesdecreased steadily, levelling offataround 46percentinDecember of1995. Therealinterest
rateforthemonth ofJune1996 wasapproximately 45percent.
External tradehasbecome substantially liberalized since1994. Import andexport quotas have
beentotally eliminated andimport andexport licensing hasbeeneliminated forthevastmajority of
goods. Currently, customs duties intheKyrgyz Republic hadbeenassessed ataflatrateof10percent;
however, theCabinet ofMinisters intends tointroduce anewtariffschedule establishing varying rates
ofdutyonorbefore 30September 1996. Asummary oftheproposed newtariff schedule issetforth
inAnnex 10.Under boththecurrent andproposed tariff regimes, imported goods subject toexcise
taxes areexempt fromcustoms duties. Atthebeginning of1996, export customs duties weretotally
eliminated. Statetrading practices havebeenlargely eliminated except forenterprises engaged inthe
saledisposal ofwaste forofferrous andnon-ferrous metal scraps (seeAnnex 6).
Open competition currently exists inalmost allsectors oftheeconomy. Prices havebeen
liberalized except forthose ofcertain thesix“natural ”monopolies, which havebeendesignated as
such bytheAnti-monopoly Department oftheMinistry ofEconomy.
Dueinlarge measure tosignificant progress inprivatization, foreign investment andthe
development ofdomestic entrepreneurship, theshare oftheprivate sector inGDPhasbeenincreasing.
Inaddition,theprivatesectorshareoftotalemploymenthasbeenincreasing(fromapproximately
47percentin1993 to60percentin1995); however, thesectoral distribution ofemployment has
notchanged significantly. (SeeAnnex 1,Table 1-11). Registered unemployment hasbeengradually
increasing andcurrently stands atabout 5.7percent.WT/ACC/KGZ/3
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2. Economic Policies
(a) Main directions ofongoing economic policies; tactical andstrategic goals ofeconomic
policies; pricing policy; economic development plans; privatization plans; sectoral
priorities; regional development plans; other
Main directions ofongoing economic policies; tactical andstrategic goals thereof Soonaftergaining
independence intheautumn of1991, theKyrgyz Government initiated areform programme totransition
from acentrally planned planning toamarket economy. Initially, economic policy wasprimarily
concerned withachieving macro-economic stabilization. Astheeconomy stabilizes, thefocus of
economic policy willbeprimarily concerned withachieving balanced economic development.
TheKyrgyz Government hasbeenattempting (i)toestablish thefundamental institutions and
mechanisms toenable theeconomy tofunction onafreemarket basis andtoenable thegovernment
toregulate thateconomy through fiscal andmonetary policies, (ii)toincrease foreign direct investment
byexpanding theopportunities available toforeign investors andbyensuring thesecurity oftheir
investments; (iii)toutilize inanincreasingly more efficient manner foreign loans andcredits; (iv)to
incrementally establish incrementally adiversified economy through theprivatization ofStateproperty
andthecreation ofconditions forthedevelopment ofasmall andmedium-scale entrepreneurial
enterprises, (v)toidentify andreorganize orliquidate unprofitable andinsolvent State enterprises;
(vi)tointroduce asound andworkable bankruptcy process; and(vii)tostabilize theeconomy and
theliving standards ofthepopulation by,among other things, reducing inflation toanacceptable level.
Despitethedeepeconomiccrisis,sinceachievingindependencetheKyrgyzRepublichasmanaged
tocreate thefundamental preliminary conditions needed foreconomic growth anddevelopment: the
introduction ofarelatively stable national currency; theestablishment ofasound rudimentary legal
regime; fortheattraction offoreign investment, credits andloans; thesuccessful ongoing privatization
ofState property; thedevelopment ofeconomic conditions andlegal structures needed tofoster
entrepreneurship andsmall business andtoattract foreign investment andcredits; andthecreation
ofasystem oflawintended toprotect property andhuman rights andtopermanently secure theeconomic
reforms.
During thecoming years, theKyrgyz Government plans (i)tocomplete thestructural
reorganization ofthenational economy, (ii)toachieve stable ratesofdevelopment incertain priority
economic sectors andindustries aswellastheeconomy asawhole; (iii)toachieve abalanced budget
andaviable balance ofpayments; and(iv)toestablish andpursue necessary social programmes aimed
atimproving theliving conditions ofthepopulation.
Pricing Policy Currently, allprices havebeenliberalized except where theconcerned itemissupplied
byanentity thathasbeen classified aseither anatural, permitted ortemporary monopoly. See
section 2(e)below (Competition Policy) thefollowing fivenatural monopolies (electricity, gaspipelines,
telecommunications, railroad andaviation) areregulated through either tariffapproval orprofitability
control bytheAnti-monopoly Department within theMinistry ofEconomy. Prices ofwater supply,
heat,hotwater andpublic transport aresetbycityoroblast administrations. Non-natural monopolies
which haveadominant position inthemarket (more than35percentmarket share) aresubject to
profitability control. Theallowable margin ofprofitability varies from oneindustry toanother and
ranges from25percentto50percent. Currently, thereare105companies (mostly goods producers)
subject toprofitability control. Thisnumber varies fromoneyeartoanother asresult ofannual market
analysis.Companieswhichexceedtheirallowableprofitabilitymarginmustprovideawrittenjustification
totheAnti-monopoly Department.
Privatization/Agriculture Theprocess oflandreform wasstarted quickly afterindependence under
presidential decrees issued in1991and1992thatspecified several different methods forreorganizingWT/ACC/KGZ/3
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andprivatizing Stateandcollective farms. By1January 1994, theStateprivatization agency, theState
Property Fund orSPF,hadprivatized approximately 41percentofallState-owned agricultural assets.
During thisearly period, thisprogramme resulted inthecreation ofabout 17,800 private farms plus
235newagricultural cooperatives. Under apresidential decree issued on22February 1994,
responsibility forthefurther privatization oftheagricultural sector wastransferred from theSPFto
theMinistry ofAgriculture andFood Provision (MAFP); however, significant responsibility forthe
actual implementation oflandreform remains withlocalgovernment officials.
TheprogrammeoflandreforminitiallyintendedtoeliminatetheremainingState-ownedcollective
farms byearly 1995. Inpart, thisprogramme wasdeveloped asapiece oftheStrategy Planfor
Agricultural Reforms developed largely bytheMAFP. However, during 1994and1995, privatization
oftheagricultural sector actually stalled, primarily because ofthedifficulty offinding solutions for
certain issues relating totheactual mechanics ofdividing theland, thedivision oftheassets ofthe
collective farms andthetransfer ofthedebts ofcollective farms tothenewowners. These issues have
recently beenresolved andtheprocess offinishing theprivatization ofagriculture isexpected toresume
afterthe1996 growing season.
Under current law,individual farmers andagricultural cooperatives andenterprises havethe
righttouselandunder leases thatmayhaveamaximum termof99years. Thelawdoesnotyetprovide
fortheprivate ownership ofland; however, theParliament intends toconsider alawcreating such
rights inthefallof1996. There arerelatively fewrestrictions ontheuseofland; however, land
designated asagricultural landmust beusedforagricultural purposes, butthechoice ofcrops is
unrestricted. Therighttouselandcanbesold,exchanged, leased, orusedascollateral forobtaining
bankcredits.
Privatization/Small Enterprises
Privatization Plans Privatization ofnon-agricultural enterprises inKyrgyzstan began in1992with
thesalethrough cashauctions ofthrough theauctioning ofsmall-scale retail trade, catering andservice
establishments. Thisaspect ofprivatization wasgoverned bythelawOnGeneral Principles of
Denationalization, Privatization andEntrepreneurship of20December 1991 (the1991 Privatization
Law). Bytheendof1993, over3400, approximately 95percent, ofsuchestablishments hadbeen
sold; andbytheendof1995, theownership ofvirtually every suchestablishment hadbeentransferred
toprivate physical persons orlegalentities. TheStateretains noownership interest insuchenterprises.
In1991, these establishments represented anestimated 35percentofallState-owned enterprises.
Beginning inMay1993, theState Property Fund (SPF) ofKyrgyzstan initiated thedevelopment and
implementation oftheMass Privatization Programme (MPP). Designed torapidly transfer medium
andlargescaleindustrial Stateenterprises totheprivate sector viacoupon andcashauctions, theMPP
sought togiveeachcitizen ofKyrgyzstan theopportunity toparticipate inthetransformation ofthe
economy anddirectly invest inthefuture ofindividual enterprises.
Privatization/Medium andLarge Enterprises Privatization ofmedium andlarge non-agricultural
enterprises initially began under the1991Privatization Law. The1991Privatization Lawprincipally
relied onvouchers which could beusedbytheconcerned workers andworkers collective topurchase
ownership interests intheirownenterprise. During 1992and1993, only736medium andlarge scale
enterprises (about 7.5percentofallState-owned enterprises) hadbeenprivatized through thismethod:
259inmanufacturing, 223inconstruction, 62intransportation and192inother industries.
Dissatisfaction withthepaceoftheprivatization ofthese enterprises resulted intheadoption
ofanewprivatization lawon12January 1994, theLawonDenationalization andPrivatization of
State-Owned Assets (the1994 Privatization Law). Article 3ofthislawgenerally provides thatall
State-owned assets inallsectors oftheeconomy areeligible forprivatization, withtheexception of
land, mineral resources, forests, waters andother natural resources. Furthermore, theCabinet ofWT/ACC/KGZ/3
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Ministers wasgiven broad authority toestablish aprivatization programme forsuchassets andthe
StateProperty Fund wasgiven theresponsibility forcarrying outthatprogramme. Indeveloping the
programme, Article 5gavetheCabinet ofMinisters thediscretionary authority toexclude thefollowing
classes ofassets from privatization: assets used fornational defence, national security, social
development, environmental protection, orpublic health, aswellasassets needed toguarantee aState
monopoly overcertain (unspecified) kinds ofactivities. Article 8gives theCabinet ofMinisters the
authority torestrict foreign participation in“certain sectors ”oftheeconomy; however, theCabinet
ofMinistries hastaken noaction pursuant tothisauthority.
Pursuant tothe1994 Privatization Law, theCabinet ofMinisters issued Resolution No.120
of14March 1994setting forththeGovernment ’sprivatization programme for1994-1995. Under this
1994-95 programme, thevastmajority ofStateenterprises immediately became eligible forprivatization
under theMass Privatization Programme (MPP) thathadbeenunder development bytheSPFsince
1993. Under theMPP, 5percentoftheownership ofState owned enterprises wastobegiven to
theconcerned workers ’collective andanother 25percentwastobesoldtoKyrgyz citizens viacoupon
auctions. TheSPFwasgiven theauthority toselltheremaining 70percenttoinvestors viaavariety
oftransfer mechanisms; however, theprincipal method hasbeenthecashauction. Other methods
involve adirect negotiated salewithforeign and/or domestic investors, apublic offering. Originally,
fiftymedium andlargescaleenterprises deemed strategically important weredesignated forprivatization
ona“competing projects ”basis; thatis,theSPFwastosellorotherwise transfer theresidual
70percentthrough acompetitive tender onacase-by-case basis.
TheMPP wasdesigned totransfer rapidly medium andlarge scaleindustrial Stateenterprises
totheprivate sector viacoupon andcashauctions. TheMPP sought togiveeachcitizen ofthe
KyrgyzRepublictheopportunitytoparticipateinthetransformationoftheeconomyandtoinvestdirectly
inthefuture ofindividual enterprises. Under theMPP, eachcitizen wasentitled toreceive, until
November 1994, special means ofpayment, or“coupons, ”through aformula linked totheindividual ’s
salary andlength ofwork service. These coupons could (i)beusedtobidinthecoupon auctions
organized bytheSPF,(ii)beexchanged forownership oftheresidence currently occupied bythecoupon
holder, or(iii)since September 1994, besoldforcashattheStock Exchange. Acoupon isafreely
transferable bearer instrument denominated inpoints rather thancurrency. Distribution ofcoupons
tocitizens began inearly 1994 andessentially ended inNovember ofthatyear. During thatperiod,
approximately 80percentofthecitizens entitled toreceive coupons hadclaimed them. Theunclaimed
coupons havebeenretained bytheSPF.
Asof30June1996, 946enterprises hadbeenplaced through coupon privatization, ofwhich
578arenowconsidered fullyprivate, largely because theresidual 70percentownership interest in
these enterprises wassubsequently soldeither inacashauction (547enterprises) orinacompetitive
tender (31enterprises). Although theMPP wasintended tobecompleted bytheendof1995, ithas
nowbeenextended forthree reasons: (i)the1994-95 Programme specified thattheprivatization of
enterprises incertain industries (including enterprises engaged intelecommunications, printmedia,
airport andaviation services, energy generation andtransmission andthemining ofprecious metals,
precious andsemi-precious stones andrareearthmetals) required special permission fromtheCabinet
ofMinisters, thuseffectively removing theseenterprises fromtheMPP; (ii)thesystem ofcashauctions
moved slowly, dueprimarily tothesetting ofhigh“floor”prices; and(iii)coupons wereoriginally
notscheduled toexpire untiltheendof1996, meaning many citizens heldontotheir coupons in
anticipation ofbetter investment objects (theexpiration datehasnowbeenextended to1July1997).
On28February 1996, theCabinet ofMinisters issued Resolution No.82setting forth its
privatizationprogrammefor1996-97.Inthisprogramme,theCabinetofMinisterssignificantlynarrowed
thelistofenterprises requiring special authorization forprivatization. Suchauthorization isstillrequired
forenterprises engaged inenergy transmission orthemining ofrareearth ornon-ferrous metals. TheWT/ACC/KGZ/3
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SPFiscurrently developing MPP privatization plans forenterprises inthefollowing industries:
telecommunications, civilaviation, tourism andprintmedia.
“Coupons ”-afreely transferable, bearer instrument denominated inpoints rather thancurrency
-were printed inJanuary 1994. Distribution ofcoupons tocitizens ofKyrgyzstan thenbegan and
essentially ended inNovember of1994 when approximately 80percentofthose citizens entitled to
coupons hadclaimed them. Beginning inNovember 1994, theSPFOffered 25percentoftheshares
oftheincluded State enterprises tocitizens atcoupon auctions. Fivepercentoftheshares ofthe
enterprise aredistributed toworker collectives. Theremaining State interests intheenterprises are
soldatcashauctions heldatauction centres located ineachofthesixoblasts oftheKyrgyz Republic.
TheTotalnumber ofenterprises eligible formassprivatization is979.Currently 946enterprises
havebeenprivatized through thecoupon auctions. AsofJune1996, 578enterprises areconsidered
fully private, largely asaresult ofthecashauctions (547companies) andcompetitive tenders (31
companies) following thecoupon auctions.
Theprivatization oflargeandstrategically important enterprises isconducted onanindividual
basis. Thevarious methods include: auctions, competitive tender, direct sale,management contract
through tender, assetsalesthough tender orauctions. Seventy enterprises qualify forthisprogramme
ofwhich 51havebeenprivatized. TheState retained minimum shares inmost ofthese enterprises.
Notsubject toprivatization arethefollowing: land, subsurface resources, forests, water and
natural resources. Inaddition, thelistofcompanies ofnotsubject toprivatization isnotyetdefined
bythegovernment.
Theprivatization process intheKyrgyz Republic isopentoforeign anddomestic participation
according tothesame rules. However, under theLawonDestatization andDestatization ofState
Property of12January 1994, theCabinet ofMinisters hastheauthority torestrict foreign participation
in“certain sectors ”oftheeconomy. TheCabinet ofMinistries hasnottaken anyactions sofarpursuant
tothisauthority.
Privatization/Enterprise Reform andResolution Agency Twenty-nine largelossmaking enterprises
havebeenpermanently excluded fromtheMPPandreserved forrestructuring andsalebytheEnterprise
Resolution andReform Agency (ERRA) under theWorld Bank financed PESAC programme. The
ERRA wasestablished inMay1994 andgiven responsibility forrestructuring orliquidating these
enterprises. ERRA hasmanaged toshutdown production atmostofthese andtoplace them under
acareandmaintenance programme. Workers inenterprises under thisprogramme havebeenplaced
onlongtermadministrative leave untiladecision isreached onthefuture oftheenterprise. Todate,
afinancial analysis ofeachenterprise hasbeencompleted. Each ofthese enterprises willeventually
beliquidated orreorganized under theBankruptcy Law. Inthelatterinstance, a51percentcontrolling
block ofshares willbesoldtoastrategic investor chosen onthebasis ofacompetitive tender. All
oftheremaining shares willlikewise besold, either asblocks toother selected investors orthrough
apublic offering.
Sectoral Priorities Thefollowingtablesummarizesthegovernment’sindustrialandsectoralpriorities:
- electric energy sector:
- toattract foreign investment forthedevelopment ofhydroelectric power engineering,
- toprivatize sector enterprises and
- tomodernize andreconstruct electric gridnetworks;WT/ACC/KGZ/3
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- coal:
- torestructure thesector andsector enterprises by,including reorganizing and,where
necessary, liquidating ofsector enterprises,
- todevelop coalopen-pit mining withtheaimofdecreasing production costs and
- topromote energy saving technologies;
- oilandgas:
- toconstruct andbring intooperation twosmall oilrefineries inthenexttwoyears and
- todevelop apackage ofdocuments forconducting aninternational tender intended
forthepurpose oftoattracting foreign investment intotheexploration andexploitation
ofoilandgasdeposits, toconduct thetender;
- goldextracting industry:
- toattract foreign investment intotheexploration andexploitation ofgolddeposits;
- non-ferrous metallurgy (mercury, antimony, tin,tungsten):
- toattract foreign investment intothedevelopment oftheantimony andmercury
metallurgy industry;
- machine building andmetal processing:
- toorganize theproduction ofmachines, equipment (and theparts thereof) for
(i)processing agricultural products, (ii)mechanizing small peasant andfamily farms
and(iii)useinthecoalmining industry;
- electrotechnical:
- toorient enterprises toward theproduction ofcomplex electrical appliances and
equipment fortheelectric energy industry;
- lightindustry:
- tospeed upthestructural transformation ofindustries within thesector andtofind
newmarkets bothwithin andoutside thecisand
- topurchase modern equipment withgerman andjapanese loans;
- foodproduction/processing:
- toestablish small andmedium-sized on-site production/processing facilities formilk,
meat, fruitandvegetable production andprocessing;
- pharmaceuticals:
- toattract foreign investment intothedomestic pharmaceutical industry and
- toattract foreign investment tocomplete theconstruction of“bishkekbiofarm, ”a
chemical pharmaceutical plant;
- agriculture:
- toattract attraction offoreign investment forthepurpose ofdeveloping export-oriented
agricultural andanimal husbandry enterprises; andtheplant-growing andlive-stock
farming mainly intended toexport and
- tocreate creation ofjointventures withforeign participation forontheproduction
ofagricultural products;
- construction:
- toattract foreign investment intothehousing construction industry and
- toencourage themanufacturing ofenergy-saving construction materials.WT/ACC/KGZ/3
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(b) Monetary andfiscal policy
Monetary Policy Both fiscal andmonetary policy intheKyrgyz Republic aredriven bythe
immediate goalofachieving macro-economic stability. Therefore, theKyrgyz Republic iscurrently
pursuing arestrictive monetary policy, theprimary object ofwhich istostabilize prices. Thismonetary
policy alsoserves thesecondary purposes ofstabilizing thefinancial system andcontrolling bothreal
andnominal interest rates. Because theKyrgyz Republic isaneconomy intransition withafreely
floating exchange rate,ahighly pro-active monetary policy isbeing pursued bytheNational Bank of
theKyrgyz Republic (NBKR) tostabilize theforeign exchange value oftheSom.
TheKyrgyz Republic hasatwo-tier banking system consisting oftheNational Bank ofthe
Kyrgyz Republic (NBKR) and15commercial banks. Thecentral banklaw(theLawOntheNational
Bank oftheKyrgyz Republic ofDecember 1992(theCentral Bank Law)) establishes arelatively high
degree ofindependence fortheNBKR and,since theintroduction ofnational currency, theSom, in
Mayof1993, theNBKR hasconducted monetary policy withincreasing autonomy.
TheKyrgyz Republic participated inthesubstantial inflation thataffected allcountries inthe
ruble zoneduring theearly 1990’s.Significant increases inenergy costs combined withsubstantial
increases inadministrative prices andtheextension oflargedirected credits toStatesector enterprises
continued todrive upprices intheruble zonethrough early1993. InMay1993, theKyrgyz Republic
lefttheruble zone, adopting anational currency (theSom). TheSomwasintroduced atarateof
4Som/US$ 1.
Since late1993, oneofthemajor aimsofmonetary policy hasconsistently been tobring
down inflation while accommodating theincrease inmoney demand thathasaccompanied thegradually
increasing confidence intheSom.
Restrictive credit-monetary policies andreduced budgetary expenditures in1994 contributed
toreduce theannual rateofinflation. Theinflation ratedecreased from 87.2percentin1994 to
31.9percentin1995. Forthefirstthree months of1996, themonthly inflation ratehasaveraged
under 4percent. Therealinterest ratewasapproximately 190percentinAugust 1994, butonly
90percentattheendofthatyear. In1995 realinterest ratescontinued tofall,steadily decreasing
throughout theyearandlevelling offataround 46percentinDecember of1995. Therealinterest
rateforthemonth ofJune1996 was45percent.
Inaddition tocontrolling inflation, another major aimofmonetary policy hasbeentostabilize
theforeign exchange value oftheSom. When theSomwasintroduced, theNBKR opted foraflexible
exchange rateregime, duetoitslowlevels ofreserves andconsiderable uncertainty surrounding external
developments aswellaspotential money demand. Between July1993 andMarch 1994, theSom
depreciated bymore than160percentagainst theUS$, butthen, appreciated byalmost 20percent
inthesecond quarter of1994. However, considerations ofexternal competitiveness ledtheNBKR
tomoderate theappreciation oftheSomandbythefallof1994 oneofthemajor aimsofmonetary
policy hasbeentostabilize theexchange rateoftheSom. TheSomdevalued against theUS$atan
annual rateof130percentduring 1994. However, almost allofthatdevaluation occurred during
thefirsthalfofthatyear. From 1July1994 to30June1996 theforeign exchange rateofSomhas
remained highly stable, devaluing onlysome 10percentagainst theUS$overthatentire two-year
period.
Fiscal Policy Thereform offiscal institutions intheKyrgyz Republic plays animportant roleinthe
whole process ofeconomic transformation. Thefiscal policy oftheKyrgyz Republic involves using
suchinstitutions toachieve macro-economic stabilization andotherwise creating favourable conditions
foreconomic growth anddevelopment. Itisthecurrent fiscal policy oftheKyrgyz Republic tograduallyWT/ACC/KGZ/3
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balance itsbudget bycontrolling public spending andincreasing taxrevenues through more effective
taxcollection andexpanding theprivate sector taxbase.
Thecontrol ofpublic expenditures involves theelimination ofsubsidies required byunprofitable
State-owned enterprises andtheeventual saleofthose enterprises ortheirassets. Theprivatization
ofState-owned enterprise furthers thegovernment ’sfiscal policy byraising revenue fromthesaleof
Stateenterprises, expanding theprivate sector taxbaseandeliminating theneedtosubsidize unprofitable
Stateenterprises. Thegovernment further intends toexpand thetaxbasebycreating andmaintaining
favourable conditions foreconomic growth.
Thefiscal policy isunderpinned bymajor fiscal adjustment, which involves theprojected
stabilization ofthebudget deficit at2-3percentofGDPby1997(down from11.4percentin1995).
Taxes Ontherevenueside,thegovernmentintendstoimplementmoreeffectivetaxcollectionmeasures,
while maintaining taxes atalevelnotinimical toeconomic growth. TheStateTaxInspectorate (STI)
isresponsibleforadministeringtaxlawsandadoptingandenforcingimplementingregulations.Important
changes have beenalready been carried outintaxlawandpolicy. In1992, thetaxsystem was
fundamentally reorganized: aVATwasintroduced, excise taxeswereimposed andmany taxexemptions
werecancelled. On26June1996, thePresident oftheKyrgyz Republic signed acomprehensive Tax
Code intolaw.
ThenewTaxCode, which wentintoeffect on1July1996 wasprepared withtheassistance
oftheIMFandother foreign specialists. It,provides forfivebasic types oftaxes: (i)anincome
taxonphysical persons; (ii)aprofit taxonlegalentities; (iii)aVAT; (iv)excise taxes oncertain
items and(v)alandtax.
TheVAT iscollected atfrom enterprises, organisations, private andfamily enterprises ata
uniform rateof20percent. TheVAT applies tovirtually allcategories oftaxpayers. Although
theKyrgyz Republic government generally follows apolicy ofmaintaining uniform ratesoftaxation
onallforms ofeconomic activity, itdoesattimes usetaxlawsandregulations inorder tofurther
domestic social policy. VAT LowVAT taxrates-evenratesofzerooroutright VAT exemptions
-areestablished forcertain items andservices toensure greater public availability ortopursue other
public policies. Forexample, aVAT rateofzeroisimposed onexport sales(except forexports to
CIScountries), orsalestopersons holding diplomatic orsimilar privileges. VAT exemptions have
beenestablished fortransactions involving certain goods orservices, including: thesaleorlease of
residential property; abroad variety offinancial services, (transactions involving thegranting or
transferringofloans,credits,creditguarantees,transactionsconnectedwithdepositandcurrentaccounts,
liabilities, checks, transactions withcurrency, banknotes andfinancial instruments, transactions with
securities, financial leasing andother transactions indirectly related toauditing andinvestment fund
management services); lifeinsurance andpension services; citytransport services; postal services;
privatization transactions; deliveries carried outbynon-commercial organizations; gambling; imports
ofthebasic means oflifeandimports provided inconnection withtohumanitarian aid.
Inaddition totheVAT, theKyrgyz Republic generally imposes aprofits taxof30percent
onthenetworld-wide profits income ofallKyrgyz legalentities andtheKyrgyz-source profits ofall
non-Kyrgyz legalentities. Thetaxisimposed ontheprofits netincome oftheentity, determined as
thetotalamount ofrevenues fromallsources lessallowable expenses anddeductions. Certain classes
ofentities aretaxed atother rates, e.g.,thenetincome ofanentity owned predominantly (70percent)
bydeafandblind persons istaxed atarateofzero, while thegambling receipts ofagaming enterprise
aretaxed ata70percentrate. Alegalentity forwhich landistheprincipal productive assetisexempt
from theprofits taxandmust onlypaytheapplicable landtax.WT/ACC/KGZ/3
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Allinterest anddividend income issubject toa15percentwithholding taxrate.Thetaxis
required tobewithheld andremitted bythesource.
Allpersons resident intheKyrgyz Republic aswellasnon-resident citizens aresubject tothe
personal income tax.Taxable income isdefined asthedifference between totalannual income minus
allowable expenses anddeductions. Total annual income includes allitems ofvalue received, including
money, goods, works andservices. Certain types ofincome areexcluded from thecalculations of
totalannual income, including: inheritance revenues, alimony, subsidies, pensions andother transfers
received from theGovernment.
Excise taxes aregenerally imposed onthecustoms value ofcertain types ofimported goods:
alcoholic beverages; tobacco products; gold, silver andplatinum jewellery; furhides; natural fur
articles, leather clothes; crystal articles andfirearms.
Plots oflandaregenerally subject toalandtax.Theresponsible taxpayer istheperson or
legalentity possessing anauthorization fromtheStatetousetheland. Private landownership isstill
notpermitted. Therateoftaxation varies depending onseveral factors: location, sizeandfertility
ofthesoil. Iftheconcerned plotoflandisinanareathattheGovernment hasdesignated ashaving
unfavourable physical orclimactic conditions, theTaxCode provides thattheuserisresponsible only
for50percentoftheotherwiseapplicabletax.Inaddition,theTaxCodeprovidesanoutrightexemption
forlandowned by“enterprises, organizations andestablishments financed bytheState budget. ”
Banking Asaresult ofthedifferent functions tobeserved bytheNBKR andcommercial banks,
atwo-tier banking system wasestablished inDecember of1992. Today 15commercial banks function
inthecountry, most ofwhich areorganized asjoint-stock companies. TheNBKR conducts loan
refinancing auctions inorder toprovide amarket approach tothedistribution ofloans andinterest
rates. TheNBKR determines theamount offunds offered inloanauctions, taking intoaccount the
applicable quarterly loanceilings thatwhich theCommittee onCredit-Monetary Policy establishes in
accordance withtheprogramme worked outjointly withIMF. Thediscount ratedecreased from
89.09 percentin1994 to46percentin1995 andinApril of1996 itwas36.2percent.
Anewlegalregime onbanking gives theNBKR certain powers toregulate theactivities of
financial institutions licensed bytheNBKR. TheNBKR isalsoresponsible forlicensing commercial
banks andcontrolling thefunctioning ofthepayment system.
Securities AtthistimeasecuritymarketintheKyrgyzRepublicisunderdevelopedandasecondary
market ofsecurities isstillembryonic. TheKyrgyz Stock Exchange (KSE) started functioning in
May1995 andbytheendofthatyearaggregate securities transactions totalled 608,479.17 Soms.
Stocks ofbothKyrgyz andforeign enterprises arequoted ontheKSE. Foreign citizens andcompanies
mayparticipate inthesecurities market.
(c) Foreign exchange andpayments system; relations withtheIMF; application offoreign
exchange controls, ifany
Foreign exchange andpayments system; application offoreign exchange controls When thenational
currency wasintroduced inMayof1993, theNBKR opted forafreely floating exchange system, with
aninterbank market offoreign exchange channelled tothecommercial banks through regular foreign
exchange auctions bytheNBKR. Informal controls onthese auctions wererelaxed inlate1993 and
allexchange bureaus wereallowed toparticipate intheauctions fromJanuary 1994andonward. The
auctions areheldtwice aweek andtheNBKR registers theofficial exchange ratesofselected foreign
currencies (e.g., US$, DM,Russian Rouble); however, theactual exchange rateachieved intheauction
should notvaryfrom theexisting average interbank ratebymore than2percent.WT/ACC/KGZ/3
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TheKyrgyz Republic doesnotmaintain anyexchange restrictions oncurrent account orcapital
transactions.
Themajor piece oflegislation affecting foreign currency exchange transactions istheLawon
Operations inForeign Currency of5July1995. Thatlawpermits bothresidents andnon-residents
topurchase andsellforeign currency without restrictions. Abanks oraswellasforeign exchange
offices must obtain alicences from theNBKR inorder tooffer handle foreign exchange services
currency. Abanks having suchcurrency alicences mayopenforeign currency accounts foralllegal
andnatural persons. There arenorestrictions imposed onthecurrency operations oftheaccount holders.
Specifically, therearenorestrictions imposed ontheconvertibility ofeither current accounts orcapital
accounts. Furthermore, foreign currency maybewithdrawn without restrictions. Citizens mayopen
abank account andmaintain deposits inaforeign bank outside thecountry, buttheymust register
suchaccounts withtheNBKR.
Individuals andlegalentities canimport andexport foreign currency without limitations but
arerequired toindicate theamount inthecustoms declaration.
Relations withInternational Monetary Fund On11December 1995, theInternational Monetary
Fund (IMF) approved anaugmented second annual loanequivalent toSDR 32.25 million (about
US$48 million) fortheKyrgyz Republic under theEnhanced Structural Adjustment Facility (ESAF)1
insupport oftheGovernment ’seconomic andstructural reform programme through September 1996.
Thedecision, based onthestrength oftheprogramme, raises access under thesecond annual loanby
SDR 8.6million (about US$13 million). Thetotalthree-year ESAF loanhasalsobeenincreased to
SDR88.15million(aboutUS$131million)fromtheoriginalSDR70.95million(aboutUS$105million)
approved on20July1994.2
TheKyrgyz Republic hasachieved significant progress initsreform andstabilization efforts
under thefirstannual ESAF loan. Themonthly inflation rateaveraged lessthan1percentduring
thelastninemonths of1995, while monetary andcredit targets werelargely ontrack. Theexchange
ratefortheSomremained stable against theUSdollar andwasaccompanied byanaccumulation of
reserves. External tradeexpanded rapidly, asitshifted awayfromformer Soviet Union trading partners
andtheGovernment made significant progress onstructural reforms, particularly inprivatization and
enterprise restructuring. TheKyrgyz Republic accepted theobligations ofArticle VIIIoftheIMF
Articles ofAgreement inMarch 19953andmaintains afullyconvertible currency.
Theprogramme covering theperiod through September 1996thatissupported bythesecond
annual ESAF loanaimsatachieving realGDP growth of2.5percentin1996, atholding therateof
annual inflation to15percentbyend-1996 andatfurther strengthening international reserves. To
these ends, theprogramme envisages areduction inthebudget deficit to5.5.percentofGDPin1996
from11.4percentin1995through acombination ofrevenue andexpenditure measures. Ontherevenue
side, thefocus willbeonimproved taxcollection andadministration; ontheexpenditures side, a
rationalization ofoutlays willallow forareduction ofgovernment expenditures relative toGDPwithout
impairing thesocial safety net.Theauthorities willmaintain atightmonetary andcredit stance, as
wellasafullyliberalized exchange andtrade system.
1TheESAF isaconcessional IMFfacility forassisting eligible developing members thatare
undertaking economic reforms tostrengthen theirbalance ofpayments andfoster growth. ESAF loans
carry aninterest rateof0.5percentandarerepayable over10years, witha5.5yeargrace period.
2IMFPress Release No.94/53.
3IMFPress Release No.95/16.WT/ACC/KGZ/3
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Under theprogramme, theGovernment intends todeepen structural reforms inseveral areas,
includingprivatizationandStateenterpriserestructuring,financialsectorreform,aswellastoimplement,
legal, regulatory andinstitutional reforms. TheGovernment further intends tomake theenergy sector
increasingly self-financing rather thandependent onpublic orexternal assistance.
TheGovernment ’ssocial strategy focuses onimproving thetargeting ofsocial assistance and
ensuring theprovision ofbasic services, while remaining within theprogramme ’sfiscal objectives.
Priorities include strengthening thefinancial position oftheSocial Fund andtherationalization of
social expenditures.
TheKyrgyz Republic joined theIMFon8May1992. Itsquota4isSDR64.5million (about
US$96million) anditsoutstanding useofIMF credit currently totals SDR 83.6 million (about
US$120 million).
(d) Foreign anddomestic investment policy
Thegovernment oftheKyrgyz Republic hasestablished anattractive legal framework for
domestic andforeign investment. TheKyrgyz Republic isconsidered tohaveoneofthemost, ifnot
themost, liberal investment regimes among thecountries oftheformer Soviet Union. Inparticular,
theForeign Investment Lawof28June1991 creates aforeign investment regime thattreats foreign
investors andtheirlocalinvestment vehicles atleastaswellasdomestic investors anddomestically
ownedinvestmentvehicles.Incertainsectorslegalentitieswithsubstantialforeignparticipationinvestors
enjoy 2-5years (depending onthesector) aprofits taxexemption holiday foraperiod ofbetween two
andfiveyears (depending ontheindustry). However, theCabinet ofMinisters hastheauthority under
the1994Privatization Lawtorestrict foreign investors fromparticipating intheprivatization ofcertain
sectors. TheCabinet ofMinister hassofarnotexercised suchauthority. Itistheexpress policy of
theKyrgyz Republic topermit thewidest possible foreign participation intheeconomy andtoactively
attract foreign investment intocertain priority industries, particularly those industries requiring the
investment oflarge amounts ofcapital, theintroduction ofexpensive modern technology and/or the
dedication ofknow-how notcurrently locally available, e.g.,thenatural resource exploitation industries
andtheagribusiness andfoodprocessing industries. TheGovernment hasestablished theAgency for
theAttraction ofForeign Direct Investment under theSPFStateProperty Fund toseekandassist foreign
investors.
TheGovernment alsoplans tofurther develop theenact animportant number oflegislation
tofurther improve itscurrent legalregime affecting foreign investment. Seesection 4.
(e) Competition policies
Itisthepolicy oftheKyrgyz Republic tocreate theconditions necessary forafullyfunctional
market economy based onfree,fairandopencompetition. Therefore, thelawOntheRestriction of
Monopolistic Activity andtheDevelopment andProtection ofCompetition of15April 1994 (the
Anti-monopoly Law)prohibits thecreation ofmonopolies andtheuseofunfair methods ofcompetition..
TheAnti-monopoly Department (AMD) within theMinistry ofEconomy isresponsible fordeveloping
andmaintaining thecompetitive environment byidentifying enterprises classifiable as“natural
monopolies ”or“dominant enterprises ”(35percentormore market share). TheAMD isresponsible
forregulating theprices charged bynatural monopolies. TheAMD may,ifitisfound tobenecessary,
regulate theprices charged byadominant enterprise ifitisfound tobeabusing itsdominant position.
4Amember ’squota intheIMFdetermines, inparticular, theamount ofitssubscription, itsvoting
weight, itsaccess toIMFfinancing anditsallocation ofSDRs.WT/ACC/KGZ/3
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TheAMD alsohastheauthority toorder thedemonopolization (break-up) ofadominant enterprise
under certain circumstances.
A“natural monopoly ”isgenerally defined toinclude anyentity forwhich thecreation of
competition isimpossible; however, theterm“natural monopoly ”isalsodefined tocover avariety
ofindustries thatarenotnormally considered as“natural, ”including enterprises forwhich theState
hasactually created amonopoly bylaw. Specifically mentioned as“natural ”monopolies are:
(i)enterprises engaged infertilizer production andthemining andprocessing ofmineral resources,
(ii)monopoliescreatedbytheStateforproducingweapons,poisons,narcotics,drugsandothercontrolled
items and(iii)enterprises engaged intheprovision ofpublic utilities (i.e.thedistribution ofheat,electric
energy, gasorwater andtheprovision ofsewage services), orinproviding other public services (e.g.,
telecommunications andpublic transportation, including railway and,civilaviation andtrolley-bus
service). Theprices charged byanatural monopoly aretobesetbytheAMD inaprice schedule
or“tariff”taking intoaccount information supplied bytheconcerned enterprise.
A“permitted monopoly ”isanentity which hasa“dominant ”share (i.e.35percent) ofthe
market foraproduct needed bythepublic andunder existing market conditions suchdominant position
cannot beeliminated. Anentity identified bytheAMD asa“permitted monopoly ”mustdeclare its
prices totheAMD andthese prices must beapproved bytheAMD. Such prices arethenpublished
ina“register ofdeclared prices ”maintained bytheAMD.
A“temporary monopoly ”isanentity which simply hasadominant share ofthemarket for
anyproduct. Suchanentity maystillsetitsownprices, butitsactivities andprices willbemonitored
bytheAMD. Intheevent suchanentity isfound tobeabusing itsdominant position, theAMD may
impose restrictions reasonably intended toinhibit theenterprise ’sability toabuse itsdominant position.
IftheAMD determines thatanymonopolistic entity isviolating theAnti-monopoly Lawor
anyregulation ororder oftheAMD, itmay(i)order thebreak-up oftheentity, (ii)require theentity
todisgorge allillegal profits, (iii)require theentity topayafineand/or (iv)require theentity tomake
compensatory payments toother legal entities orpersons which orwhohavebeendamaged bythe
illegal activity ofthemonopoly. Theprocedure forimposing finesandeconomic sanctions arecontained
intheRegulations ontheProcedure forApplying Penal andEconomic Sanctions forViolations ofthe
Anti-monopoly Law, Pricing Policy andConsumer Rights (theSanction Procedures), which were
approved byCabinet ofMinisters Resolution No.3of5January 1996.
Alldecisions imposing finesorothereconomic sanctions mustbeapproved byaspecial meeting
oftheAMD andthensigned bytheAMD director andhis/her deputies. Thirty percentofthefines
paidandprofits disgorged aretoberetained bytheAMD tofinance itsfurther operations. Theremaining
70percentgoesintothegeneral State budget. Anentity desiring toprotest adecision oftheAMD
mustfirstappeal totheMinister ofEconomy andthentothecommercial court having jurisdiction over
theentity. TheCabinet ofMinisters can,onitsowninitiative, overturn adecision oftheAMD.
Ifaninvestigation bytheAMD reveals thatanentity isnotnowinadominant position, but
ismoving toward achieving adominant position, theAMD maytakeaction toprevent suchentity from
achieving suchposition.
Itisthepolicy oftheKyrgyz Republic tocreate theconditions necessary forafullyfunctional
market economy based onfree,fairandopen competition. Therefore, theLawonRestrictions on
Monopolistic Activity andtheDevelopment andProtection ofCompetition of15April 1994prohibits
thecreation ofmonopolies andtheuseofunfair methods ofcompetition. TheAnti-monopoly
DepartmentwithintheMinistryofEconomyisresponsiblefordevelopingandmaintainingthecompetitive
environment byprohibiting enterprises fromabusing adominant market position orotherwise engagingWT/ACC/KGZ/3
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inanti-competitivebehaviour.Ithastheauthoritytoorderdemonopolizationofcompanieswithdominant
position thatviolate theanti-monopoly law.
3. Foreign Trade inGoods andServices: volume andvalue oftrade, exports andimports,
foreign trade balance, structure oftrade, trade bygeographic areas anddynamics oftrade,
accompanying statistical dataandinformation onpublications (Annex 1refers)
Overthepastseveralyears,thetradepatternsoftheKyrgyzeconomyhavechangedsignificantly.
Several major trends havebecome visible inthischange.
First, thebreakdown inthepayment arrangements andthelossofsupply linkages among FSU
(former Soviet Union) countries havehadasevere impact onKyrgyz domestic production anditstrade
withFSUcountries. Astheactivities ofmany State owned enterprises became unprofitable, they
decreased production andinter-enterprise arrears among FSUcountries havegrown. Atthesametime,
theKyrgyz Republic hasexpeditiously liberalized itstradeandexchange systems andmaintained them
freeofrestrictions. Asaresult, ashiftintradeaway fromFSUtonon-FSU partners tookplace through
1994andappeared toleveloffin1995. During thisperiod, thepercentage ofrecorded export shipments
destined forFSUcountries declined, from more than95percentduring 1989-92 to65.57 percent
in1994and65.84 percentin1995. Atthesame time, thepercentage ofimports fromFSUcountries
haslikewise declined, fromabout 80percentduring 1989-92 toapproximately 66.09 percentin1994
and67.69 percentin1995. SeeTables 1-16through 1-20inAnnex 1.
Second,exportshavebeenreorientedawayfromheavyindustry,particularlythedefenceindustry,
toward lightindustry, especially those industries engaged intheproduction ofwoolandcotton items,
inwhich theKyrgyz Republic hasacomparative advantage. Third, export markets havediversified
among non-FSU countries, withgreater salestoindustrial countries.
Thecomposition ofexports toFSUcountries hasalsoundergone considerable change. Energy,
mainly thetransmission ofhydroelectricity toUzbekistan andKazakstan, hascontinued toconstitute
amajor export itemtoneighbouring FSUcountries; however, exports ofmachinery, including electrical
equipment, which wasoncethelargest export itemwithashare of30-45 percentin1991-92, have
fallen substantially, mostly because suchexports often involved specialized production designed to
meetspecific needs under theoldSoviet system.
Imports from FSUcountries havealsodeclined significantly. Official statistics showed that
overall energy imports havedeclined by60percentinvolume since 1991, including adramatic fall
of78percentingasoline imports. However, thesevolumes areprobably understated duetotheamount
ofunrecorded fuelimports thatarebelieved tohavebeenbrought inprivately bytrucks. Prices for
imported energy havegradually approached theworld levelassubsidies havebeenremoved. These
prices roseatanannual rateof160percentin1993and44percentin1994. Eventhough thevolume
ofenergy imports hasdeclined, theincrease inprices hasactually caused thevalue oftotalenergy
imports toincrease slightly. Non-energy imports fromFSUcountries havealsodeclined bymore than
50percentsince1992, reflecting disruptions intraderelations withFSUcountries aswellasthesevere
domestic economic downturn.
Theshare ofbothimport andexport tradewithnon-FSU countries hasincreased significantly
since independence. Among exports, thelargest andmostrapidly growing category islightindustry,
including wool, cotton andsilkproducts, where theprivate sector hasbeenmostactive. After textiles,
thenextlargest category isinnon-ferrous metallurgy, including antimony andmercury.
Aswithimports fromFSUcountries, thevolume ofimports fromnon-FSU countries hasalso
declined, butnotassignificantly. Similarly, there havebeenimportant changes inthecompositionWT/ACC/KGZ/3
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ofnon-FSU imports. Thepattern ofimports from non-FSU countries isaffected bylarge grants in
kindfromnon-FSU donors, including foodaidfromtheUnited States. Also, project aidhascaused
imports ofcapital goods tobefarabove thelevelwhich otherwise would haveoccurred.
Direction oftrade dataindicate thatexports tonon-FSU countries arehighly concentrated to
China (48percent) andtheUnited Kingdom (25percent), although diversification hasextended to
other industrial countries, including Germany, Canada, France andTurkey.
In1993, thetotalvalue ofrecorded Kyrgyz exports wasUS$360.2 million. In1994, thetotal
value ofexports declined 5.5percenttoUS$340.1 million, butthenrosetoUS$408.9 million in
1995, a20percentincrease from 1994 anda13.5percentincrease from 1993. Thetotalvalue of
recorded imports showed thesamegeneral pattern, declining 29percentbetween 1993and1994(from
US$447.8 million to317million) andthenrebounding toUS$522.3 million in1995, a65percent
increase from1994anda17percentincrease over1993. TheKyrgyz Republic ’sforeign tradebalance
wasUS$-87.6 million in1993, US$23.1million in1994 andUS$-113.4 million in1995.
Detailed foreign tradestatistics areprovided inTables 1-15through 1-28located inAnnex 1.
4. DomesticTradeinServices,includingthevalueandcompositionofforeigndirectinvestment
Theservice sector accounted forapproximately 31percentofGDP in1994 and30percent
in1995. Theshare ofthelabour force employed intheservice sector in1995 wasapproximately
37percent. Themajor components ofthedomestic service sector include (i)retail tradeandcatering,
9.5percent of1994 GDP, (ii)credit services, 4.8percent (iii)education, 4.6percent
(iv)transportation, 3.1percentand(v)health care, social security, physical culture andsports,
2.7percent.There arecurrently noreliable statistics onforeign tradeinservices. Furthermore, detailed
statistics onforeign investment intheservice sector arenotavailable; however, there isreason to
believe thatthemajority ofenterprises withforeign investment intheservice sector havebeensetup
intherelatively labour-intensive industries, suchastrade, scientific research, automobile repair and
transport, tourism, project andconstruction work, medicine, financial services, marketing andbusiness
consultancy.
Thefinancial services sector isonlygradually evolving. Available banking services include
awell-functioning payments system fordomestic, intra-CIS andinternational transactions, foreign
currency accounts, factoring, leasing, working capital loans andtrade finance. However, money and
capital markets, including long-term investment finance, areatanearly stage ofdevelopment.
Approximately 50insurance companies offer awiderange oflifeandnon-life insurance.
TheGovernment ’sgeneral long-term policy forservices istoencourage theexpansion of
transportation andtelecommunication services byaccelerating thedevelopment oftheinfrastructure
needed bythose industries. TheGovernment alsodesires toencourage theexpansion ofthefinancial
services sector andapplied research anddevelopment services. Asregards policy instruments, the
emphasis isonliberalization, privatization, private sector development andanti-monopoly regulation.
While theprocess ofeconomic reform hasbeenmoving well, itmust benoted thatprogress inthe
services sector hasbeenmore rapid thanelsewhere. Thiscanbeexplained, first,bythegreater number
ofopportunities thatexist forsmall andmedium-sized enterprises toenter themarket. Second,
completely newindustries offering financial andbusiness services haveappeared andaredeveloping
onthebasisofmarket principles. Atpresent therearenoreliable statistics onforeign tradeinservices,
therefore onlydataonforeign trade ingoods isprovided insection 3-Volume andValue ofForeign
Trade inGoods. In1993, thetotalvalue ofrecorded Kyrgyz exports wasUS$360.2 million. In1994,
thetotalvalue ofexports declined 5.5percentto340.1 million, butthenrosetoUS$408.9 million
in1996, a20percentincrease from 1994 anda13.5percentincrease from1993. ThetotalvalueWT/ACC/KGZ/3
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ofrecorded imports showed thesame general pattern, declining 29percentbetween 1993 and1994
(from US$447.8 million to317million) andthenrebounding toUS$522.3 million in1995, a
65percentincrease from 1994 anda17percentincrease over1993.
Kyrgyzstan ’sforeign tradebalance wasUS$-87.6 million in1993, US$23.1million in1994
andUS$-113.4 million in1995.
5. Information onFinancial Movements Related toNationals Working Abroad, Remittances,
etc.
Citizens andenterprises resident intheKyrgyz Republic receive income andremittances from
non-resident citizens andother persons, especially persons having relatively highlevels ofincome.
Because thisprocess started todevelop onlyrecently andbecause suchincome andremittances are
nearly always paidincash, itisimpossible tocalculate themoney flowinvolved intheprocess.
6. Information onGrowth inTrade inGoods andServices Over Recent Years andForecasts
forYears toCome
Available historical information onforeign trade ingoods forrecent years isprovided in
Tables1-16,1-18,1-19and1-21.Reliablehistoricalinformationonforeigntradeinservicesisgenerally
unavailable. Forecasts ontheanticipated future levels ofandtrends intheforeign trade ingoods and
services arebeing developed, butareasyetunavailable.
III. FRAMEWORKFORMAKINGANDENFORCINGPOLICIESAFFECTINGFOREIGN
TRADE INGOODS AND TRADE INSERVICES
1. Powers ofEexecutive, Legislative andJudicial Branches ofGovernment
Under theConstitution oftheKyrgyz Republic, governmental power isdivided among the
executive,legislativeandjudicialbranches,withthePresidentbeingaffordedthemostsignificantpower.
(a) Powers oftheExecutive
ThePresident ThePresident istheHead ofStateandthehighest government official. Theexecutive
powers areexercised bytheGovernment (principally, theCabinet ofMinisters) formed bythePresident.
However, thePresident isnottheheadoftheGovernment; thatposition, under theConstitution, is
heldbythePrime Minister. ThePresident iselected toa5-year termofoffice onthebasisofuniversal
(persons 18years ofageandolder), equal anddirect suffrage bysecret ballot.
TheConstitutionaffordsthePresidentwithwide-rangingpowers.Heisthehighestrepresentative
oftheKyrgyz Republic bothwithin thecountry andininternational relations. Hedetermines thebasic
direction ofdomestic andforeign policy andhastherighttopropose andvetolegislation. Hissignature
isrequired foranybillpassed bytheParliament tobecome law,thesoleexception being intheevent
ofaParliamentary override ofapresidential veto5.
5Aparliamentary override ofapresidential vetorequires asuper-majority voteofeachhouse of
Parliament having original responsibility forthelegislation. Insome cases thiswillrequire anoverride
voteinonlyonehouse andinother cases anoverride votewillberequired inbothhouses. Inmost
cases, a2/3super-majority voteisnecessary; however, iftheconcerned legislation originally required
a2/3majority voteforpassage, avetooverride willrequire asuper-majority.WT/ACC/KGZ/3
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ThePresident issolely responsible fordetermining thestructure oftheCabinet ofMinisters,
theprincipal institution intheexecutive branch. Hehasthepower toissue decrees andtosuspend
orinvalidate actsoftheCabinet ofMinisters andother executive bodies. ThePresident alsohasthe
power tocreate andabolish other independent State agencies notunder thecontrol oftheCabinet of
Ministers. Furthermore, subject toafewimportant exceptions noted below, thePresident hasthe
exclusivepower,exercisablewithinhissolediscretion,toappointandremovefromofficeanynon-elected
governmentofficialsincluding(i)membersoftheCabinetofMinisters,(ii)supervisorsofadministrative
departments, (iii)heads oflocalState administrations and(iv)alllower court judges.
There areseveral limitations onthePresident ’sotherwise broad power ofappointment and
removal. ThePresident must, forexample, obtain theconsent oftheAssembly ofPeople ’s
Representatives (theAPR, oneofthetwohouses oftheParliament) totheappointment ofthePrime
Minister, theChairman oftheNational Bank andtheProcurator General (thechief lawenforcement
officer ofthecountry). However, thePresident needs nosuchconsent toremove anyoftheseofficials.
Furthermore, thePresident hasnopower toappoint anymember ofthecountry ’sthree highest courts
(theConstitutional Court, theSupreme Court andtheSupreme Commercial Court). However, hedoes
havetheexclusive power tonominate anyperson whoistoserve asamember orthechairman ofany
ofthose courts. Presidential nominees formembership onorthechairmanship ofeither theSupreme
Court ortheSupreme Commercial Court mustbeelected byasimple majority voteoftheAPR; such
nominees fortheConstitutional Court must beelected separately byeachChamber ofParliament.
Furthermore, there arelimitations onthePresident ’spower toissue decrees, which mustbe
consistentwiththeConstitutionandwithlawspassedthroughtheparliamentaryprocess.ThePresident’s
decree-issuing power isbroadest inthefollowing circumstances: (i)where thesubject matter ofthe
decree iswithin theambit ofoneofthepowers specifically granted tothePresident bytheConstitution;
(ii)where thedecree isissued pursuant toatemporary6specific delegation oflegislative power tohim
byoneorbothchambers ofParliament, or(iii)where thedecree isissued atatimewhen noParliament
exists because ithasbeendissolved7.Inthefirstinstance, thedecree doesnothaveequal status with
alawpassed through theparliamentary process; however, adecree issued pursuant toadelegation
oflegislative power orduring aperiod when Parliament hasbeendissolved doeshavesuchstatus.
TheCabinet ofMinisters TheCabinet ofMinisters istheprincipal institution ofandisgenerally
referred toas,theGovernment. Theexecutive power isexercised bytheCabinet ofMinisters, as
wellastheindividual ministries, Statecommittees, administrative departments, other central executive
bodies andlocalState administrations under thecontrol oftheCabinet ofMinisters.
TheCabinet ofMinisters consists ofthePrime Minister, allVice-Prime Ministers, allMinisters
andHeads ofStateCommittees.8TheCabinet ofMinisters isthesupreme executive body; however,
allofitsmembers aredirectly appointed bythePresident. ThePrime Minister istheheadofthe
CabinetofMinisters.AlthoughthePresidentisnottheheadoftheGovernment,theCabinetofMinisters
6TheConstitution permits suchadelegation oflegislative power tothePresident onlyforaspecific
period oftime, nottoexceed oneyear; however, theon-going routine renewal ofsuchdelegation
isnotprohibited.
7There areseveral situations where theParliament maybedissolved. Insuchasituation, the
President mustcallnewParliamentary elections intimeforanewParliament tobeelected andseated
within sixmonths afterthedateofdissolution oftheprior Parliament.
8Itshould benoted thateventhough theConstitution provides fortheappointing oftheheads of
State committees, thePresidential Decree OntheStructure andComposition oftheGovernment of
4March 1996 didnotprovide foranysuchcommittees.WT/ACC/KGZ/3
Page20
isautomatically dissolved when anewly elected President takes office, leaving thePresident freeto
form anewGovernment. ThePresident maydismiss, totally within hisdiscretion, anyorallofthe
members oftheCabinet ofMinisters. Furthermore, ifthePresident ispresent atameeting oftheCabinet
ofMinisters, hehastheright toassume thechairmanship ofthatmeeting. Thus, thePresident has
effective direct control overthework oftheCabinet ofMinisters.
Anymember oftheCabinet ofMinisters hastherighttosubmit hisorherletter ofresignation
tothePresident; however, thePresident hasthediscretion toaccept orreject suchletter. IfthePrime
Minister submits aletterofresignation thatisthenaccepted bythePresident, allmembers oftheCabinet
ofMinisters arelikewise deemed tohaveresigned.
TheCabinet ofMinisters isresponsible fordrawing upanational budget andpresenting itfor
consideration andapproval totheAPR. After suchapproval isobtained, theCabinet ofMinisters is
responsible foritsimplementation. TheCabinet ofMinisters isalsoresponsible forimplementing all
lawspassed bytheParliament. Although theNational BankoftheKyrgyz Republic (theNational Bank
orNBKR)isresponsiblefortheestablishmentandimplementationofbothmonetaryandcurrencypolicy,
itisformally required toconsult onsuchmatters withtheCabinet oftheMinisters. TheCabinet of
Ministers oversees theactivity ofallministries, Statecommittees, administrative departments andlocal
Stateadministrations andmaynullify anyactofsuchinstitutions thattheCabinet ofMinisters considers
tobecontrary tolaw.
(b) Powers oftheLegislature
Thelegislative power isimplemented bytheParliament which consists oftwochambers: the
Legislative Assembly (theLA)andtheAssembly ofPeople ’sRepresentatives (theAPR). There are
35members oftheLAand70members oftheAPR. Parliamentary elections areheldonceevery five
years. Allparliamentary elections areconducted onthebasis ofelectoral districts, i.e.thecountry
isdivided into35LAdistricts forthepurpose ofelecting members oftheLAand70APR districts
forthepurpose ofelecting members totheAPR.
TheLAispermanently insession, withtheonlyexception being atwomonth summer recess.
TheAPR, hastwolegislative sessions peryear, oneusually inthespring andoneintheautumn.
Although theLAhastheprimary responsibility within theParliament fordrafting legislation,
either chamber mayinitiate legislation, regardless ofthesubject matter. Allproposed legislation -with
theexception ofbudgetary legislation, legislation ontheredistricting ofterritorial subdivisions and
legislation amending theConstitution oraffecting itsimplementation -mustinitially bepassed bythe
LA. Ifsuchlegislation concerns taxes, amnesty, levies, bankactivity, financial orcustoms matters
ortheratification orrenunciation ofaninternational agreement, itmustthenalsobeapproved bythe
APR; otherwise thelegislation doesnotrequire theapproval oftheAPR. TheAPRhas60daysafter
legislation passes theLAtovoteonthatlegislation. IftheAPRfailstoactonthelegislation within
thatsixtydayperiod, theAPRwillbedeemed tohaveapproved thelegislation. If,within thespecified
60-day period, theAPR rejects thelegislation, theLAmay“override ”theAPR’srejection bya
2/3majority vote.
Ifthelegislation concerns budgetary orpolitical redistricting matters, itmust firstpassthe
APRandthentheLA.TheLAthenhas60daysafterreceiving legislation fromtheAPRtovoteon
it.IftheLAfailstoactonthelegislation within that60-day period, theLAwillbedeemed tohave
approved thelegislation. If,within thespecified 60-day period, theLArejects thelegislation, the
APR may“override ”theLA’srejection bya2/3majority vote.WT/ACC/KGZ/3
Page21
Ifthelegislation (i)involves theamendment oftheConstitution, (ii)affects theimplementation
ofaspecificprovisionoftheConstitution,(iii)changesnationalbordersor(iv)involvesaninterpretation
oftheConstitution orconstitutional laws, itmust bepassed bybothchambers, butnospecific time
limitgoverns thisprocess.
Finally, alllegislation successfully passing through theparliamentary process requires the
President ’ssignature tobecome law.
(c) Powers oftheJudiciary
Thejudiciary power isexercised bythecourt system. Thecourt system isessentially divided
intotwodistinct systems, thecommercial court system andtheordinary court system. Generally, the
commercial court system handles business andcommercial disputes between legalentities, whereas
theordinary court system hasexclusive jurisdiction overallother types ofdisputes, including civil,
criminal andadministrative lawmatters, aswellascommercial disputes where atleastoneofthelitigants
isanindividual oracollective farm. Bothcourt systems aredivided intotiers.
Thecommercialcourtsystemhastwotiers.Sevenregionalcommercialcourtsofgeneralprimary
jurisdiction (oneforthecityofBishkek andoneforeachofthesixoblasts) constitute thelower tier.
TheSupreme Commercial Court alone constitutes theupper tier. Ithasappellate jurisdiction over
thedecisions oftheregional commercial courts. Italsohasprimary jurisdiction overdisputes involving
any“non-normative ”9aspect ofanactofanygovernmental body, institution orofficial.
Theordinary court system isdivided intothreetiers. Thelower tieriscomposed ofanumber
ofRayon (district) courts. Themiddle tieriscomposed ofseven regional courts (oneforthecity
ofBishkek andoneforeachofthesixoblasts), which haveinitial appellate jurisdiction overthedecisions
oftheRayon courts. TheSupreme Court alone constitutes theupper tierandhasfinalappellate
jurisdiction overthedecisions oftheregional courts.
Inaddition tothetwocourt systems, theConstitution establishes aspecial Constitutional Court
thatisresponsible forprotecting theConstitution. TheConstitutional Court handles cases involving
constitutional litigation, i.e.disputes concerning theinterpretation oforrights established bythe
Constitution.
TheConstitutionestablishestherightofjudicialimmunityforjudgeswhenactingintheirofficial
capacity. However, anymember ofthethreehighcourts (theConstitutional Court, theSupreme Court
andtheSupreme Commercial Court) canberemoved from his/her postupon aformal presentation
totheParliament bythePresident. Lower court judges canberemoved iftheyfailtopassa
qualification test.
2. Government Entities Responsible forMaking andImplementing Policies Affecting Foreign
Trade
Policy affecting foreign trade isanimmediate partofthegeneral foreign policy ofthe
Kyrgyz Republic. TheConstitution provides thePresident withthepower todetermine thedirection
offoreign policy andthusforeign trade policy.
9A“non-normative ”actisanactdirected ataspecific person oragroup ofpersons anddoesnot
establish anobligatory norm ofgeneral application.WT/ACC/KGZ/3
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Inpractice, theactual development andimplementation oftheKyrgyz Republic ’sforeign trade
policy ishandled bytheCabinet ofMinisters through several ministries, agencies andState bodies
headed byorunder thegeneral direction oftheCabinet ofMinisters. Although general responsibility
fortheconduct offoreign affairs ishandled bytheMinistry ofForeign Affairs, nospecific ministry
hasprimary responsibility thedevelopment offoreign economic policy; however, theMinistry of
Economy andtheMinistry ofIndustry andTrade playtheleading roles inthedevelopment and
implementation ofpolicies affecting foreign economic relations andinternational trade.
TheMinistry ofEconomy isresponsible fordeveloping andimplementing thegeneral economic
policy ofthecountry. Inaddition, theMinistry ofEconomy hasanAnti-monopoly Department, which
isresponsibleforthedevelopmentandimplementationofgovernmentalcompetitionpolicy.TheMinistry
ofIndustry andTrade isresponsible fordeveloping andimplementing auniform international trade
policy withtheexception ofWTO accession, theresponsibility forwhich hasbeendelegated toan
inter-ministerial working group under theleadership oftheMinistry ofEconomy.
Inaddition, theKyrgyz Republic hasaCustoms Tariff Council (CTC), which isgenerally
responsible forestablishing andmaintaining theCustoms Tariff. TheCTC isgenerally responsible
for(i)proposing changes intheratesofcustoms duties andmaking recommendations regarding the
imposition ofadditional duties (i.e.anti-dumping duties, countervailing duties andspecial duties), both
ofwhich actions require theapproval oftheCabinet ofMinisters tobecome effective and(ii)preparing
drafts oflaws, international agreements andregulations specifically dealing withcustoms tariff and
non-tariff matters. TheCTC alsohasthediscretionary authority tomake changes inthecustoms tariff
nomenclature. TheCTC isalsocharged withinvestigating charges ofdumping. Oneofthefour
VicePrime Ministers, appointed atthediscretion ofthePresident, serves astheheadoftheCTC.
Twodeputies arealsoappointed bythePresident toserve ontheCTC, oneofwhich must bethe
Director oftheStateCustoms Inspectorate (SCI), theactual agency incharge ofday-to-day customs
operations. TheDirector oftheSCIalsoserves astheSecretary oftheCTC andtheadministrative
work oftheCTC isactually handled bytheadministrative apparatus oftheSCI.
TheState Commission onForeign Investment andEconomic Assistance (Goscominvest) is
anindependent executive commission having several functions, including: (i)theformation and
implementation ofauniform national policy fortheattraction offoreign investment and(ii)the
coordination offoreign economic andtechnical aidtothecountry and(iii)theoversight ofthe
privatization process. Theexecutive bodyofthecommission istheStateProperty Fund (SPF), which
isincharge ofprivatization. Goscominvest isgenerally charged withresponsibility forimplementing
theCabinet ofMinisters ’policy ofachieving thebroadest possible participation offoreign investors
inthereformation ofthecountry ’seconomy. AllStatebodies, enterprises andorganizations arerequired
toabide bythedecisions ofGoscominvest. Organizationally, atthetopoftheGoscominvest structure
isthecommission itself, immediately below which istheBoard ofDirectors ofGoscominvest.
Goscominvest hastwoagencies under itsdirect control: theSPFandtheConsultative Agency on
Procurements (CAP). Inaddition, Goscominvest hasindirect control overthethree sub-agencies of
theSPF: theProject Promotion Agency, theTechnical Cooperation Agency andtheAgency on
Attracting Foreign Direct Investment.
Goscominvest ischaired bythePrime Minister. TheFirstDeputy Chairman istheVicePrime
Minister incharge ofeconomic policy issues. Inaddition, there aretwoDeputy Chairmen: theVice
Prime Minister incharge ofagricultural policy issues andtheGeneral Director ofGoscominvest, who
isalsoincharge oftheSPF’sday-to-day-operations. Theother members ofthecommission arethe
Head oftheNational Bank, theMinister ofEconomy, theMinister ofIndustry andTrade, theMinister
ofWater Economy, theMinister ofAgriculture, theMinister ofCommunication, theMinister of
Transport andtheseven heads ofthevarious regional Stateadministrations (onefromeachOblast and
thecityofBishkek).WT/ACC/KGZ/3
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3. Division ofAuthority Between Central andSub-central Governments
Regional andDistrict Executive Administrations Atthenext level ofgovernment, the
Kyrgyz Republic hasseven regional executive administrations, eachofwhich isunder thedirect
supervision andcontrol oftheCabinet ofMinisters: oneforeachoblast andthecityofBishkek and
inevery sixregions. Within eachsuchregional executive administration areanumber ofdepartments
havingregionalcompetenceovercertainspecifiedmatters,e.g.,adepartmentofagriculture,adepartment
ofeconomy, etc.Each ofthese departments reports bothtotheregional executive administration
ofwhich itisapart,aswellasitscorresponding national ministry.
Because theregional executive administrations areunder thecontrol andsupervision ofthe
Cabinet ofMinisters andeachdepartment within those administrations reports toitscorresponding
national ministry, thelocal governmental policy affecting trade ingoods andservices isalmost
exclusively determined bythecentral Government.
Theheads oftheoblast regional executive administrations arecalled “governors ”andare
appointed bythePresident withtheconsent ofthecorresponding kenesh (discussed below). The
President mayremove them from office onthebasis ofapresentation bythePrime Minister orthe
President ’sadministrative apparatus. Theheadoftheregional executive administration ofBishkek
iscalled the“mayor ”andisdirectly elected bythecitypopulation. Themayor canberemoved from
office bythePresident either forcrimes orif2/3ofthelocalkenesh requests himtodoso.
Atthelowest level ofgovernment aretherayon (district) executive administrations. The
President, withtheconsent ofthekenesh oftherayon, appoints theheadofeachrayon administration
aftertaking intoaccount therecommendation oftheconcerned governor ormayor. ThePresident
mayalsoremove theheadofthelocalrayon administration aftertaking intoaccount therecommendation
oftheconcerned governor ormayor.
TheRegional andDistrict Keneshes Inaddition totheregional executive administrations, Bishkek
andtheoblasts eachhavealocally elected legislature, aunicameral representative assembly legislature
called akenesh. These regional keneshes arecomposed of25-35 members. Therepresentatives in
akenesh arecontemporaneously elected tooffice foratermoffiveyears. Elections areheldonthe
basis ofuniversal (adults atleast18years ofage), equal anddirect suffrage. Each regional kenesh
isresponsible forlegislation dealing withregional social andeconomic matters. Each kenesh must
alsoapprove thebudget prepared byitscorresponding regional executive administration. Ifakenesh
passes apiece oflegislation onamatter within itscompetence, itautomatically becomes law; no
additional procedure needbecomplied with.
Finally, eachrayon hasalocalkenesh composed of15-25 elected representatives, theprimary
responsibility ofwhich istoadopt legislation dealing withasmall range oflocalmatters.
4. Legislative Programmes orPlans toChange theRegulatory Regime
According totheParliament ’swork programme for1996, thefollowing lawsarecurrently
under preparation:
- AlawOntheProcedure forAcquiring, Purchasing, Processing andExporting Non-Ferrous
andFerrous Metals andIndustrial Scrap Thereof;
- AlawOntheQuarantine ofPlants;
- AlawOntheProcurement ofGoods (Works) andServices;WT/ACC/KGZ/3
Page24
- AlawOnState Enterprises;
- ALand Code;
- ACustoms Code;
- AlawOnSubsurface Resources;
- AlawOnMedicinal Drugs andPreparations;
- AlawOnLocal State Administration;
- AlawOnLocal Self-Administration;
- ALabour Code;
- AlawOnGovernment Service;
- AlawOnPostal Service andTelecommunications;
- AlawOntheProcedures forExiting andEntering theRepublic;
- AlawOnElectric Power;
- AlawOnPower Engineering;
- AlawOnPatent Rights;
- AlawOnTrademarks, Service Marks andAppellations ofOrigin;
- AlawOnCopyright andRelated Rights;
- AHousing Code;
- AMortgage Law;
- AlawOntheApproval ofthe‘Land TaxRates fortheUseofFarm Land;
- AlawOntheApproval ofthe‘Land TaxRates fortheUseofNon-Farm Land;
- ACriminal-Judicial Code;
- AlawOnLand Registration;
- AlawOnLand Ownership;
- ACode onAdministrative Violations;
- AlawOnCooperative Societies;
- AlawOnOil;WT/ACC/KGZ/3
Page25
- AlawOntheProtection andUseofBotanical Resources;
- AlawOnTourism;
- AlawOnNotaries;
- Amendments tothelawOnLeasing andLeasing Relations of17December 1992;
- Amendments tothelawOnGeneral Principles ofDenationalization, Privatization and
Entrepreneurship of20December 1991;
- AlawOnCommercial Courts;
- AlawOnBanks andtheBanking System;
- AlawOntheNational Bank oftheKyrgyz Republic; and
- AlawOnForeign Investment.
5. Laws andLegal Acts
Alistoflawsandlegalactsaffecting economic activity ingeneral andforeign trade ingoods
andservices isfound inAnnex 2ofthisMemorandum.
6. Description ofJudicial, Arbitral orAdministrative Tribunals orProcedures, ifany
(a) Judicial procedures
Foreign companies havethesame righttoinitiate andpursue claims inthecommercial court
system asKyrgyz enterprises. When initiating anaction inacommercial court, theplaintiff should
present documents (copies ofletters, etc.)proving thattheparties attempted totakemeasures tosolve
thedispute bythemselves andthattheywereunable todosoorthatthedefendant ignored theplaintiff ’s
attempts toresolve thedispute. Disputes areconsidered anddetermined byasingle judge ofthe
commercial court having primary jurisdiction overthedispute. Atanystage oftheproceeding prior
torendering ofjudgment bythecommercial court, theparties mayagree tosettle thedispute. Insuch
event, thecourt willrecord theterms ofthesettlement agreement anddismiss thecase. Ajudgment
ofacommercial court becomes finalandcomes intoforce 30daysafteritisrendered, during which
period either party mayappeal ittothesamecourt. Intheevent ofsuchanappeal, thecaseisreviewed
byapanel ofnolessthanthree commercial court judges; however, thefiling ofsuchanappeal does
notsuspend thejudgment. Within 30daysafterthejudgment hascome intoforce, either party may
appeal thejudgment totheSupreme Commercial Court andinthiscasetheSupreme Commercial Court
maysuspend thejudgment upon theapplication ofaparty.
Notethatacommercial court may, where appropriate, apply foreign law.Furthermore, ifan
international agreement establishing another procedure isapplicable, thatprocedure willbefollowed.
(b) Arbitral procedures
Foreign investors havetherighttohavedisputes settled byanarbitral tribunal, ifsuchprocedure
hasbeen agreed tobytheother party. Theparties arefreetochoose anarbitral tribunal inthe
Kyrgyz Republic orinanyotherplace. Thejudgments ofthetribunal areenforceable byKyrgyz courts.
On31May1995, theKyrgyz Republic signed theNewYork Convention (1958) ontheRecognition
andEnforcement ofForeign Arbitration Awards.WT/ACC/KGZ/3
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(c) Administrative procedures
Adispute overthedecision ofagovernmental official must firstbeappealed tothehighest
official intheconcerned agency orministry. Thereafter, thematter maybeappealed tothecompetent
ordinary court. Administrative decisions arerendered inaccordance withprinciples oftheCode on
Administrative Violations of7December 1984.
IV. POLICIES AFFECTING TRADE INGOODS
1. Import Regulation
(a) Registration requirements forengaging inimporting
TheKyrgyz Republic hasnoregistration requirements forengaging inimporting.
(b) Characteristics ofnational tariff (themost recent edition ofwhich should besupplied),
customs tariff nomenclature (HS), types ofduties, general description ofthecustoms tariff
structure, weighted average levelofduties onmain customs tariff groupings, application
ofMFN tariff rates, tariff preferences
Thecurrent legalauthority forthetariff regime oftheKyrgyz Republic istheCustoms Tariff
Lawof15December 1992(theCustoms Tariff Law). Pursuant totheCustoms Tariff Law, theCabinet
ofMinisters issued Resolution No.358of28May1994, temporarily establishing aflat10percent
tariff onallimported goods, except those forwhich anexplicit exemption hadbeencreated bylaw.
NoMFN dutyratesareprovided forunder thistemporary tariff regime. TheCabinet ofMinisters
intends tointroduce anew tariff schedule establishing varying general rates ofduty by
30September 1996. Annex 10contains apreliminary summary ofthebasicparameters oftheproposed
newtariff regime. Thenewtariffregime willbesupplied totheWTO immediately afteritsadoption.
TheKyrgyz Republic willbaseitstariff negotiations attheWTO onthenewtariff regime. Under
theexisting flat10percentregime, theaverage weighted levelofimport duties -afteradjusting for
exempted items anditems qualifying fortheKyrgyz Republic ’spreference scheme -was8.4percent
in1995.
Thecurrent import nomenclature isbased ontheCommodity ListofForeign Economic Activity
andisidentical tothatoftheRussian Federation, which isgenerally patterned aftertheInternational
Harmonized System developed bytheWorld Customs Organization. Tariff descriptions arecoded
atthe6-and9-digit levels. There aresome structural andcoding differences between thenomenclature
oftheKyrgyz Republic andtheInternational Harmonized System.
Under theKyrgyz Republic ’sSystem ofPreferences, goods originating inandimported from
developing countries aresubject toadutyratewhich is50percentoftheMFN rate-eventhough
nospecial MFN rateshaveyetbeenestablished -while goods produced inandimported from least
developed countries arefreeofduty. Alistofthese countries isprovided inAnnex 8Galong with
adescription ofthegoods excluded from thepreference schedule. Thesystem ofpreferences may
bemodified fromtimetotime. TheKyrgyz Republic isitselfabeneficiary developing country under
thepreference systems ofcertain developed countries, suchastheUnited States.
(c) Tariff quotas, tariff exemptions
TheKyrgyz Republic hasnotariff quotas.
Import dutyexemptions aregranted bytheCustoms Tariff Lawfor(i)vehicles ininternational
trade andtheirsupplies andrepair parts; (ii)localandforeign currency andsecurities; (iii)goodsWT/ACC/KGZ/3
Page27
which havebecome theproperty oftheState byoperation oflaw; (iv)goods totally damaged (i.e.
goods damaged tothepoint where theyhave nocommercial value) before release intodomestic
commerce; (v)previously duty-paid goods which havebeenexported andre-imported; and(vi)other
goods exempted bytheCabinet ofMinisters. Pursuant tothisfinalexemption category oftheCustoms
Tariff Law, theCabinet ofMinisters issued Resolution No.613of30December 1993which, interalia,
created anexemption for(vii)goods exempted fromcustoms duties under theterms ofaninternational
agreement. Later, theCabinet ofMinisters issued Resolution No.358of28May1994which created
additionalexemptionsfor(viii)goodsandarticlesimportedinconnectionorpurchasedwithhumanitarian
aidorfunds loaned orgranted byinternational financial organizations ordonor States; (ix)goods
purchased attheexpense ofthebudget oftheKyrgyz Republic; (x)goods andarticles supplied as
aidinconnection withnatural disasters andother humanitarian aidinaccordance withinternational
regulations; (xi)goods andarticles supplied forpersonal useandbelonging toforeign citizens who
come totheKyrgyz Republic torender humanitarian, technical andotheraidaccording togovernmental
andotherofficialagreements;(xii)technicalequipment,rawmaterials,materials,reagents,components,
replacements,spareparts,semi-manufacturesandotherarticles,whichareimportedbydomesticbusiness
enterprises (regardless ofownership) notforresale butfortheproduction offinalproducts inthe
Kyrgyz Republic10;(xiii) goods andarticles subject toanexcise taxuponimportation; and(xiv)goods
originating inaCIScountries thatdoesnotimpose import duties onKyrgyz products orexport duties
ongoods destined fortheKyrgyz Republic. Inaddition, theLawonFree Economic Zones of
16December 1992, asamended, creates aforeign economic zones regime thatprovides fortheduty-free
entry ofarticles intoafreeeconomic zone. Finally, Cabinet ofMinisters Resolution No.57of
6February 1996 established apreference scheme exempting, withcertain limited exceptions, goods
from certain specified leastdeveloped countries (seeAnnex 8G).
(d) Other duties andcharges, specifying anycharges forservices rendered
Article 23oftheCustoms Code of2July1992, asamended, (theCustoms Code) authorizes
theCabinet ofMinisters toestablish ratesofcustoms fees. Pursuant tothisprovision, theCabinet
ofMinisters issued Resolution No.57of5February 1993, requiring theStateCustoms Inspectorate
(SCI) tocharge afeeof0.15percentofthecustoms value forcustoms processing ofgoods. Itshould
benoted thatanewcustoms codeiscurrently being considered byParliament (theProposed Customs
Code) along withanewcustoms tarifflaw(theProposed Customs Tariff Law). TheProposed Customs
Code, ascurrently drafted, requires theimposition ofafeeequal to0.15percentofthecustoms value
forcommercial importations andafeeequal to0.1percentofthecustoms value fornon-commercial
importations.
Avalue-added tax(VAT) andexcise taxesareassessed andcollected onimported goods. These
taxes aredescribed inparagraph 1(k)below.
10On30December 1994, theCabinet ofMinisters issued Resolution No.901,which required all
ministries andagencies toprepare andsubmit totheMinistry ofIndustry andTrade (theMIT), by
mid-January 1995, alistspecifying eachbusiness enterprise anditsconcerned inputs thatshould be
considered asqualifying forthisexemption. Resolution No.901originally required theMITtoprepare
andsubmit afinallistofsuchenterprises andtheirconcerned inputs totheCabinet ofMinisters by
theendofJanuary 1995. Resolution No.901wasthenamended togivetheMITuntilthemiddle
ofSeptember 1995 tosubmit therequired list.Thatlistwassosubmitted bytheMITtotheCabinet
ofMinisters, which thentransmitted alistofqualifying enterprises andtheirinputs totheStateCustoms
Inspectorate. Enterprises and/or concerned inputs maybeadded ordeleted tothelistbytheCabinet
ofMinisters upon information submitted bytheMIT.WT/ACC/KGZ/3
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Anti-dumping, countervailing andspecial-purpose duties areauthorized under theCustoms
Tariff Law; andsimilar duties areprovided forintheProposed Customs Tariff Law. These duties
aredescribed inparagraphs 1(m), 1(n)and1(o)below. Seasonal duties arealsoauthorized under the
existing Customs Tariff Lawforaperiod nottoexceed fourmonths fromthedateofimposition; and
similar duties areprovided forintheProposed Customs Tariff Lawforaperiod nottoexceed sixmonths
from thedateofimposition. TheGovernment hasyettoimpose anyanti-dumping, countervailing,
special-purpose orseasonal duties.
Theexisting Customs Code andtheProposed Customs Code authorize other feesforlicences,
customs brokers, storage, goods escort, information andconsultancy andparticipation incustoms
auctions.ThecurrentCustomsCoderequiresthatthesefeesnotexceedtheapproximatevalueofservices
rendered, butthere isnosimilar requirement intheProposed Customs Code.
(e) Quantitative import restrictions, including prohibitions, quotas andlicensing systems
TheKyrgyz Republic hasnoquantitative import restrictions. Neither doesithaveanyabsolute
prohibitions onimports.
(f) Import licensing procedures (Annex 3Refers)
Import licences arenowrequired forfivecategories ofgoods, asdescribed inAnnex 3.
Licensing isrequired onlytoprotect public health andsafety, theenvironment, consumer welfare and
national security. Thelicensing procedure isnotintended torestrict thequantity orvalue ofimported
goods.
(g) Other border measures
TheKyrgyz Republic hasnoother border measures thathavetheintent oreffect ofrestricting
thequantity orvalue ofimported goods.
(h) Customs valuation (Annex 4refers)
Thecustoms valuation system isestablished bytheCustoms Tariff Lawandisbased primarily
onpurchase price. Intheabsence ofreliable information onpurchase price, theCustoms Tariff Law
provides certain alternative methods ofvaluation. TheProposed Customs Tariff LawandtheProposed
Customs Code bothcontain provisions pertaining tovaluation. Under bothexisting andproposed law,
customs value isusedforlevying advalorem ratesofduty, customs fees,theVAT andexcise taxes.
Customs value isalsousedincompiling foreign tradestatistics andintheapplication ofother
measures ofStateregulation oftradewhich require anassessment ofthevalue ofgoods. SeeAnnex 4
forfurther information oncustoms valuation.
(i) Other customs formalities
TobringimportedgoodsintotheKyrgyzRepublic,importersmustpresentanimportdeclaration
accompaniedbytheimportcontract,commercialinvoiceand,whererequired,importlicences,certificates
oforigin and/or other documents forspecific types ofgoods. Inaddition, theymustpaytherequired
duties, taxes andfeesandreceive anofficial release forthegoods. Duties, taxes andfeesarepayable
atthemoment offiling theimport declaration, except inthecaseofgoods placed under aconditionally
duty-free regime.WT/ACC/KGZ/3
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(j) Pre-shipment inspection
TheKyrgyz Republic hasnoarrangements orcontracts forpre-shipment inspection.
(k) Application ofinternal taxes onimports
Value Added Tax TheKyrgyzRepublicgenerallyimposesa20percentVATonallsalesofgoods
within theKyrgyz Republic, aswellasongoods imported fromnon-CIS countries. TheVATisimposed
onsuchnon-CIS imports atthetimeofimportation. Thetaxowed ispaidtothecustoms authorities.
TheVAT isassessed onthesumof(i)thecustoms value ofthegoods plus(ii)anyandallduties, taxes
orother charges dueandpayable atthetimeofimportation. With respect togoods imported from
CIScountries, noVAT iscollected untilthegood isactually soldwithin theKyrgyz Republic; and
theseller ispermitted toclaim aVAT credit fortheamount ofVAT paidtotheexporting CIScountry.
ThisVAT-credit mechanism forimports fromCIScountries isineffect inallCIScountries. However,
itdoesnotapply toimports fromnon-CIS countries, primarily because non-CIS countries -asarule
-donotcharge VAT onexports. However, CIScountries docharge VAT onexports destined for
other CIScountries.
Inaddition,VATexemptionsaregrantedfor(i)goodsimportedtorenderassistanceinconnection
withnatural disasters, armed conflicts, oraccidents; (ii)goods imported ashumanitarian assistance
asspecified under anorder oftheCabinet ofMinisters; (iii)imported goods which theimporter had
previously exported; (iv)goods temporarily imported under bond, provided suchgoods areexported
inanunalteredconditionwithintwelvemonths;(v)goodsmistakenlyimportedintotheKyrgyzRepublic
andbeing returned totheoriginal exporter; (vi)goods intransit through theKyrgyz Republic;
(vii)imported goods intended forofficial usebyforeign embassies orsimilar representative offices
offoreigngovernmentsandimportedgoodsintendedforthepersonaluseofthediplomatic,administrative
ortechnical personnel ofsuchembassies orrepresentative offices orthefamily members ofsuch
personnel; (viii) pharmaceuticals andmedicinal supplies specified byCabinet ofMinisters;
(ix)educational supplies andschool equipment; (x)babyfood; (xi)capital goods imported byalegal
entity orentrepreneur foruseinits/his productive economic activity; and(xii)other imported goods
specified asVAT-exempt bytheSCIpursuant tothecustoms legislation oftheKyrgyz Republic.
Excise Taxes Inaddition totheVAT, excise taxes areimposed oncertain goods whether produced
inorimported intotheKyrgyz Republic. Some oftheexcise taxratesareassessed onanadvalorem
basis, while others areassessed onaquantity basis. Domestic andimported goods aresubject todiffering
excise taxrates. Imported goods subject toexcise taxareexempt from customs duties.
ThenewTaxCode, which came intoeffect on1July1996, substantially changed thelistof
goods subject toexcise tax.Certain items were added andcertain items weredeleted from thelist.
ThenewTaxCode alsostates thattheCabinet ofMinisters isresponsible forproposing theratesof
excise taxes andthese ratesmust beapproved bytheParliament; however, nosuchrateshaveyet
beenproposed orapproved fortheitems newly made subject toexcise taxes. Annex 9summarizes
theitems nowsubject toexcise taxes, including thenewly added items forwhich noratehasyetbeen
established. Intheinterim, theCabinet ofMinisters, which hastheauthority under theCustoms Tariff
Lawtosettheratesofcustoms duties, hastemporarily increased thelevelofcustoms duties applicable
tosuchitems untiltheapplicable excise taxrateshavebeenestablished.
ThenewTaxCode specifies thatthefollowing goods aresubject toexcise taxes: (i)alcoholic
beverages, drinks, spirits andliquors; (ii)items destined forwineproduction; (iii)tobacco andtobacco
products; (iv)gold, silver andplatinum jewellery; (v)processed andnon-processed furhides (except
forthehides ofmoles, rabbits, dogs, deer, orsheep); (vi)wearing apparel made ofnatural fur(except
forapparel made ofthehides ofmoles, rabbits, dogs, deer, orsheep); (vii)coats, short coats, jacketsWT/ACC/KGZ/3
Page30
andcloaks trimmed withfur(except forthefurofmoles, rabbits, dogs, deerorsheep); (viii) clothes
made from natural leather; (ix)crystal items, including lighting appliances made ofcrystal; and
(x)firearms, including gasweapons (other thanthose procured byState authorities).
ThenewTaxCodeestablishesexcisetaxexemptionsforthefollowingimportedgoods:(i)goods
needed tooperate orrepair vehicles being usedfortheinternational conveyance ofpassengers, baggage
orcargo; (ii)goods which aredamaged andthereby made useless prior totheir entry intothe
Kyrgyz Republic; (iii)goods imported ashumanitarian aid;(iv)goods imported forcharitable or
aidpurposes, including technical assistance supplied byforeign States andinternational organizations;
(v)goods confiscated byorescheated totheState; (vi)goods intransit through theKyrgyz Republic;
and(vii)goods intended forofficial usebyforeign embassies orsimilar representative offices offoreign
governments andimported goods intended forthepersonal useofthediplomatic, administrative or
technical personnel ofsuchembassies orrepresentative offices orthefamily members ofsuchpersonnel.
(l) Rules oforigin
Thecurrent rulesoforigin arecontained intheCustoms Tariff Law. TheProposed Customs
Code alsocontains provisions onrulesoforigin. Boththecurrent rulesandtheproposed rulesgenerally
follow thetransitional disciplines governing theapplication ofrules oforigin setforth inthe
GATT Agreement onRules ofOrigin.
TheKyrgyzrulescontemplatetwobasiccategories:(i)goodswhollyproducedinagivencountry
where onlythatcountry maybeconsidered indetermining origin and(ii)goods which havebeen
produced, manufactured, processed orassembled inonecountry using some inputs fromatleastone
other country. Thefirstcategory mainly covers natural products suchasliveanimals, minerals, fruits,
etc.,whereas thesecond category applies togoods which havebeenproduced inonecountry using
some foreign inputs. Inthelatter case, various criteria areestablished todetermine theappropriate
country oforigin, suchas(i)whether theforeign input orinputs usedtoproduce theresulting good
haveundergoneasignificant(i.e.4-digit)changeincustomstariffclassification,(ii)whethertheresulting
good hasbeenproduced through certain specified production ortechnological operations which are
ofsuchacharacter soastojustify considering thegood asoriginating inthecountry where those
operations tookplace, or(iii)whether asignificant amount ofvalue hasbeenadded totheresulting
good inthecountry ofproduction.
Theprovisions governing theapplication ofthese criteria aregenerally inaccord withthe
transitional disciplines governing theapplication ofrulesoforigin setforthintheGATT Agreement
onRules ofOrigin. Nevertheless, itshould benoted thatKyrgyz officials generally make acountry
oforigin determination solely onthebasisofwhether thegoodhasundergone asignificant (i.e.4-digit)
change incustoms tariff classification.
(m) Anti-dumping regime
Anti-dumping duties areauthorized under theCustoms Tariff Law. TheProposed Customs
Code alsoprovides forsuch duties. Under thecurrent lawandtheProposed Customs Code,
anti-dumping duties maybeimposed ongoods which arebeing imported intotheKyrgyz Republic
atprices which aresubstantially lower thantheirmarket price inthecountry ofexportation, ifsuch
imports aredetermined tobeinflicting orthreatening toinflict damage todomestic manufacturers of
similar ordirectly competing goods, orimpeding theorganization orexpansion oftheproduction of
similar goods intheKyrgyz Republic. Petitions containing allegations ofdumping maybefiledwith
theCustoms Tariff Council (CTC) through theStateCustoms Inspectorate (SCI) byinterested Kyrgyz
orforeign bodies, enterprises ororganizations. Such petitions areinvestigated bytheSCIonbehalf
oftheCTCifprevious consultations between theparties havenotbeensuccessful. Anti-dumping dutiesWT/ACC/KGZ/3
Page31
maybeimposed bytheCabinet ofMinisters ontheadvice oftheCTC aftertheconclusion ofthe
investigation. Theamount oftheduties imposed must benomore thanthedifference between the
priceofthedumped goods atthemoment ofexport andtheaverage priceoflikeordirectly competitive
goods intheKyrgyz market.
TheKyrgyz Republic hasnotyetimposed anti-dumping duties.
(n) Countervailing dutyregime
Countervailing(compensatory)dutiesareauthorizedundertheCustomsTariffLaw.TheProposed
Customs Code alsoprovides forsuchduties. Under thecurrent lawandtheProposed Customs Code,
countervailing duties maybeimposed onimports, themanufacture orexport ofwhich hasbeendirectly
orindirectly subsidized, ifsuchgoods aredetermined tobeinflicting orthreatening toinflict damage
todomestic manufacturers ofsimilar ordirectly competing goods, orimpeding theorganization or
expansion oftheproduction ofsimilar goods intheKyrgyz Republic. Theprocedural rules forthe
imposition ofcountervailing duties arethesame asthose foranti-dumping duties.
TheKyrgyz Republic hasnotyetimposed countervailing duties.
(o) Special purpose duties
Safeguard Special purpose duties areauthorized under theCustoms Tariff LawandtheProposed
Customs Tariff Lawwhen goods areimported insuchquantities oronsuchterms astoinflict orthreaten
toinflict damage todomestic manufacturers ofsimilar ordirectly competing goods.
Warning Measure Special purpose duties mayalsobeimposed asawarning measure toabusiness
participating intheforeign economic relations oftheKyrgyz Republic when suchbusiness isviolating
theinterests ofthecountry. Such duties areauthorized bytheexisting Customs Tariff Lawbutnot
bytheProposed Customs Tariff Law.
Unfair Competition Special purpose duties mayalsobeimposed asameans ofpreventing unfair
competition asdefined under theAnti-monopoly Law. Suchduties areauthorized byboththeexisting
Customs Tariff LawandtheProposed Customs Tariff Law.
Retaliation Finally, theexisting Customs Tariff LawandtheProposed Customs Tariff Lawpermit
theimposition ofspecial duties asaretaliatory measure intheevent ofdiscriminatory actions taken
byanother country orunion ofcountries against theKyrgyz Republic. Furthermore, theProposed
Customs Tariff Lawwould alsopermit theimposition ofretaliatory duties inresponse toother actions
byacountry orunion ofcountries infringing theinterests oftheKyrgyz Republic.
Under theexisting Customs Tariff Law, theamount ofsuchspecial duties istobedetermined
onacase-by-case basis. Under theProposed Customs Tariff Law, theamount ofsuchduties mustbe
commensurate withtheamount ofdamage orinjury asdetermined intheinvestigation. Otherwise,
theprocedural rules forallsuch special duties aregenerally thesame asforanti-dumping and
countervailing duties.
TheKyrgyz Republic hasnotyetimposed anysuchspecial purpose duties.
2. Export Regulation
(a) Registration requirements forengaging inexporting
TheKyrgyz Republic hasnoregistration requirements forengaging inexporting.WT/ACC/KGZ/3
Page32
(b) Custom tariff nomenclature, types ofduties, dutyrates, weighted averages ofrates
TheKyrgyz Republic currently hasnoexport duties; however, theKyrgyz Republic -like
allCIScountries -charges aVAT onexports destined forother CIScountries. Theimporting CIS
country isrequired togrant theperson whofirstsellssuchgood inthatcountry aVAT credit inthe
amount oftheVATpaidtotheKyrgyz Republic. NoVATiscollected onexports tonon-CIS countries.
(c) Quantitative export restrictions, including prohibitions, quotas andlicensing systems
Withtheexception ofthequantitative restrictions specified intheAgreement withtheEuropean
Union onTextiles (seesection 5(a)below), theKyrgyz Republic hasnoquantitative export restrictions.
Neither doesithaveanyabsolute prohibitions onexports.
(d) Export licensing procedures
Licences arerequired fortheexport ofmilitary armsandgoods; explosives; nuclear materials
andtechnology formilitary use;virulent poisons; narcotics (including those usedinpharmaceuticals)
andpsychotropic substances; works ofartandantiquities having historical, cultural orscientific value;
ferrous, precious andrare-earth metals extracted andproduced intheKyrgyz Republic andtheir
fragments; andraretypes ofrawmaterials ofvegetable oranimal origin having pharmacological
applications. Except forferrous andnon-ferrous metal fragments andwaste (seeAnnex 6),thelicensing
requirement isnotintended torestrict thequantity orvalue oftheexports ofthese goods, butrather
toprotect public health, consumer welfare, theenvironment, national patrimony andnational security.
Inaddition, licensing isneeded fortextile exports totheEuropean Union (seesection 5(a)).
(e) Other measures, e.g.minimum export prices, voluntary export restrictions, orderly
marketing arrangements
TheKyrgyz Republic hasnoother measures torestrict exports.
(f) Export financing, subsidy andpromotion policies
TheKyrgyz Republic hasnopolicies ormeasures tofinance exports. TheKyrgyz Republic
hascertain limited export promotion programmes. These aredescribed insection 3(d)(TRIMS),
3(f)(Free Zones) and3(g)(Free Economic Zones).
(g) Export performance requirements
TheKyrgyz Republic imposes noexport performance requirements (seesection 3(d)).
(h) Import dutydrawback schemes
Under thecurrent Customs Code, drawback maybegranted forduties paidongoods imported
forcompletion, assembly, orprocessing forre-export within oneyearafterimportation. Under the
ProposedCustomsCode,drawbackmaybegrantedfordutiespaidongoodsimportedformanufacturing,
processing, repair, ortobeusedinorforthefacilitation ofproduction where thegoods areconsumed
intheprocess. Toclaim thedrawback onsuchgoods, theymustbeprocessed within atimelimitset
bytheSCI(such timelimittobeappropriate tothetypeofprocessing involved) andtheprocessed
goods must beexported within twoyears aftertheimportation oftheconcerned items.
TheProposed Customs Code alsoallows anexemption fromduties andtaxesforgoods declared
tobeintended forre-export, provided suchgoods areactually re-exported within sixmonths fromWT/ACC/KGZ/3
Page33
importation. Ifthegoods arenotre-exported within sixmonths, customs duties, taxes andinterest
areassessed onthegoods. Drawback maybegranted forthose duties andtaxes if(i)thegoods are
re-exported inthesame condition asimported, (ii)re-export iscarried outwithin twoyears aftertheir
importation and(iii)there-exported goods havenotbeenusedforincome-producing purposes.
3. Internal Policies Affecting Foreign Trade inGoods
(a) Industrial policy, including subsidy policy
TheKyrgyz Republic currently hasnoindustrial policy. InMarch of1996, aVicePrime
Minister wasmade responsible forindustrial policy, butnosuchpolicy hasyetbeenadopted bythe
Government.
TheGovernment doeshaveageneral policy tocreate abroad-based market economy andto
privatize allgovernment-owned commercial enterprises andassets. TheGovernment alsohasageneral
policy toattract foreign investment intothecountry andtoinvolve, asfaraspossible, foreign investors,
technology andknow-how inallsectors oftheeconomy forthepurpose offurthering thecreation of
abroad-based market economy andtheprivatization ofgovernment-owned commercial enterprises
andassets.
TheKyrgyz Republic maintains nopolicies theintent ofwhich istodistort trade; nordoes
theKyrgyz Republic maintain anytrade policy intended toprotect anyindustry, market orbusiness
entity.
TheGovernment doesmaintain certain agricultural andnon-agricultural subsidies, none of
which areintended topromote exports. Detailed information onthese subsidies willbeprovided in
aReport onDomestic Support Measures, tobesubmitted totheWTO inAugust 1996.
TheKyrgyz Republic doesprovide Kyrgyz legalentities having significant foreign participation
withasmall taxincentive toexport (seesection 3(d)).
(b) Technical regulations andstandards, including measures taken attheborder withrespect
toimports
Standards andcertification requirements intheKyrgyz Republic arenotintended todistort
orestablishtechnicalbarrierstodisrupttrade.Theobjectofsuchstandardsandcertificationrequirements
areto(i)ensure thesafety and/or quality ofgoods, works andservices, (ii)toprotect theenvironment
andthehealth, life,work andproperty ofcitizens, (iii)toensure uniformity ofmeasurement andthe
technical compatibility andinterchangeability ofproducts; and(iv)topreserve alltypes ofresources.
Bothdomestic-originandforeign-origingoods,regardlessofthecountryoforigin,mustcomply,without
exception,withthesamerequirementsonstandardsandcertification.Annex5summarizesthelegislation
andprocedures related totechnical regulations, standards andcertification requirements andprocedures.
TheState Inspectorate onStandardization andMetrology under theCabinet ofMinisters
(Kyrgyzstandard) istheagency responsible fordeveloping, realizing andadministering the
Kyrgyz Republic ’spolicy ontechnical regulations, standards andcertification requirements.
Cabinet ofMinisters Resolution No.260of28April 1994, asamended byResolution No.146
of5April 1996, listsseven general product categories thatrequire certification prior tosale,without
regard totheorigin oftheconcerned products. Thelistisprovided inAnnex 5andcovers allproducts
thatrequire certification forsafety, sanitary andenvironmental reasons. Forhealth-related products,
sanitary/hygiene testresults areusedasthebasis forgranting thecertificate ofconformity.WT/ACC/KGZ/3
Page34
Kyrgyzstandardisresponsibleforaccreditingcertificationandtestingbodies.Asof1June1996,
therewere8accreditedcertificationbodiesand13accreditedtestinglaboratoriesintheKyrgyzRepublic.
Inaddition, thefourregional branches ofKyrgyzstandard arealsoauthorized toconduct certification
procedures.
Inaccordance withtheAgreement OnaUniform Policy onStandardization, Metrology and
Certification, which wasexecuted byallCIScountries, Kyrgyzstandard nowaccepts acertificate issued
byanyaccredited institution ofaCIScountry. TheKyrgyz Republic therefore honours certificates
provided bytheState-accredited certification bodies ofArmenia, Azerbaijan, Belarus, Georgia,
Kazakstan, Moldova, theRussian Federation, Tajikistan, Turkmenistan andUzbekistan.
Itispossible forforeign companies tobeaccredited ascertification bodies ortesting laboratories
byKyrgyzstandard; however, nosuchcompanies haveapplied. Therequirements foraccreditation
andtheprocedures tobefollowed arethesame forbothdomestic andforeign certification bodies.
Itisthepolicy oftheGovernment tobring itsstandards intoharmony withgenerally accepted
international standards. Kyrgyzstandard iscurrently acorresponding member oftheInternational
Standards Organization (ISO). TheKyrgyz Republic hasalsoadopted over120standards ofthe
International Electrotechnical Commission (IEC). TheGovernment iscurrently intheprocess of
negotiating bilateral agreements onstandards withAustria, thePeople ’sRepublic ofChina, Germany,
India, IranandTurkey.
Importers ofgoods subject toobligatory certification ofconformity withnational safety
requirementsandothertechnicalrequirementsmustpresentthecertificationtotheSCIuponimportation,
along withtheimport declaration andother required supporting documents.
(c) Sanitary andphytosanitary measures
Itisthepolicy oftheGovernment todevelop andmaintain sanitary standards solely forthe
purpose ofprotecting thehealth ofhuman, animal andplant lifeandnotforthepurpose ofcreating
technical barriers toforeign products orforprotecting domestic producers. Thedevelopment ofsanitary
standardsistheresponsibilityofseveraltechnicalcommitteesincooperationwiththeMinistryofHealth.
Theconsent oftheMinistry ofHealth isrequired before Kyrgyzstandard mayissue anystandard
constituting asanitary measure. Goods which havebeendesignated asbeing hazardous tohealth must
meettheapplicable standards.
Cabinet ofMinisters Resolution No.260of28April 1994, asamended byResolution No.146
of5April 1996, listsseven general product categories thatrequire certification prior tosale,without
regard totheorigin oftheconcerned products. Thelistisprovided inAnnex 5andcovers allproducts
thatrequire certification forsafety, sanitary andenvironmental reasons. Forhealth-related products,
sanitary/hygiene testresults areusedasthebasis forgranting thecertificate ofcompliance. Product
categories subject tosanitary measures areincluded inthislist.Any accredited certification body,
seesection 3(b), maycertify anysuchproduct asbeing incompliance withtheapplicable sanitary
requirementsiftherequiredsanitary/hygienetestshavebeenperformedbyacompetenttestinglaboratory
andtherequired testresults obtained.
Importers ofgoods subject tosanitary and/or phytosanitary measures must, uponimportation,
present acertificate attheborder thatthegoods meettheapplicable requirements, along withtheimport
declaration andother required supporting documents. These measures aredescribed insection 3(b).
Ifthecontainer orpackaging isdamaged, theresponsible Customs officer mustinform theChief State
Sanitary Inspector whomust thenensure thattheitempasses certain prescribed sanitary tests. Ifit
doesnotpasssuchtests, itmaynotbecleared through customs.WT/ACC/KGZ/3
Page35
(d) Trade-related investment measures
TheKyrgyz Republic maintains thefollowing trade-related investment measure: Article 20
oftheForeign Investment Lawgrants certain taxadvantages toaKyrgyz legal entity ifisatleast
51percentowned byforeigners, orif30percentofitscharter fundhasbeencontributed byforeigners.
Initially, suchalegal entity receives aprofits taxexemption of2-5years, depending onthenature
ofitsactivity. After theexpiration oftheprofits taxexemption, varying reductions intheapplicable
profits taxareprovided forunder certain circumstances, including a25percentreduction ifatleast
50percentoftheentity ’sproduction isexported. Itshould alsobenoted thattheprivatization process
applicable tothesaleofmedium andlarge State-owned enterprises caninvolve acompetition among
potential buyers (both foreign anddomestic) onthebasis ofacommercial tender. Inthatprocess,
abidwillbescored according toanumber offactors (such asthepurchase priceoffered, thecommitment
bythebidder tomaintain certain employment levels, etc.). Abidder willreceive additional points
formaking acommitment toexpand themarket fortheproducts oftheconcerned enterprise.
(e) State-trading practices
Except asfurther described inthisparagraph andAnnex 6,thereisnoprivate orStateenterprise
orentity ofanydescription having anyexclusive orspecial right orprivilege orstatutory or
constitutional power, theexercise ofwhich allows ittoinfluence, byitspurchases orsales, thelevel
ordirection ofimports orexports. Theoneexception involves 29companies which havetheexclusive
righttoexport domestic-origin ferrous andnon-ferrous metal fragments andwaste. Otherwise, both
State andprivate enterprises have theright toengage inexport/import activities without special
registrations orrestrictions, except where theconcerned goods aresubject toexport orimport licensing.
Details onthementioned exception arecontained inAnnex 6.
(f) Freezones
There isnoauthority under existing lawforfreezones, asopposed tofreeeconomic zones,
intheKyrgyz Republic. There isauthority forfreeeconomic zones withaspecial customs regime
(described insection 3(g)). Furthermore, theProposed Customs Code doescontain provisions for
thecreation offreecustoms zones andfreewarehouses. Under theProposed Customs Code, such
freecustoms zones could beauthorized orabolished bytheCabinet ofMinisters andfreewarehouses
could beauthorized andabolished bytheSCI. Inboththeenvisioned freecustoms zones andfree
warehouses, production andallother commercial operations would beauthorized, except forretail
trade. Customs duties andtaxes would notbelevied, noreconomic restrictions applied, ongoods
entered intoorexported from suchzones orwarehouses.
(g) Freeeconomic zones
ExistinglegislationandtheProposedCustomsCodeauthorizetheestablishmentoffreeeconomic
zones, which offerspecial customs, tax,labour relations andprocedural benefits toenterprises locating
within suchazone. Each freeeconomic zonemust becreated anditsborders established byanact
ofParliament. Suchzones aremanaged andadministered theGeneral Directorate ofFreeEconomic
Zones, thegeneral director ofwhich isappointed bytheCabinet ofMinisters. Specific benefits include:
(i)exemption fromtheimposition ofcustoms duties andotherpayments onforeign-origin goods entered
intosuchazoneandintended forreexport; (ii)simplified border clearances; (iii)abolition ofnon-tariff
restrictions onimport andexport; (iv)exemption fromalltaxes andcharges (however, entities must
paytheGeneral Directorate anannual feeof0.1-2percentoftheproceeds generated fromthesale
ofgoods andservices); (v)labour costcontrol through acollective agreement andindividual contracts;
(vi)freecirculation anduseofforeign currency, including payments between legalentities andnaturalWT/ACC/KGZ/3
Page36
persons inthezone; and(vii)simplified entrance, departure andsalary transfer abroad forforeign
citizens. Foureconomic zones havebeencreated bylaw,butonlytheBishkek zoneisoperational.
(h) Trade-related environmental policies
TheGovernment hasestablished certain mandatory product standards. Each suchstandard
hasbeenestablished forthepurpose ofprotecting theenvironment orthelife,health orproperty of
Kyrgyz citizens.
There areseven general product categories subject tocompulsory safety testing andcertification
(seeAnnex 5).Theenvironmental testing/certification requirements areequally applicable toboth
foreignanddomesticoriginproducts.Suchrequirementshavenotbeenestablishedeithertodiscriminate
against foreign products ortoprotect localproducers.
Allgoods coming from acountry withanunfavourable radiation situation aresubject to
obligatoryradiationtesting.Furthermore,productscomingfromacountryhavingasignificantincidence
ofadisease requiring quarantine measures mustbeaccompanied bydocuments confirming thesafety
oftheproducts imported.
Inorder toensure thattherequirements onenvironmental protection areobserved, acontract
involving theimportation ofgoods subject toenvironmental standards orregulations should include
aprovision requiring thatsuchgoods beartherequired mark ormarks, issued byKyrgyzstandard or
anaccredited certification body, indicating thatsuchgoods comply withsuchstandards orregulations.
Inaddition suchgoods should beaccompanied byanappropriate certificate ofcompliance issued by
Kyrgyzstandard orsuchaccredited certification body.
(i) Mixing regulations
TheKyrgyz Republic hasnomixing requirements orregulations. TheKyrgyz Republic has
nolocalcontent requirements.
(j) Government-mandated countertrade andbarter
TheKyrgyz Republic permits countertrade andbarter arrangements, butthere isno
government-mandated countertrade orbarter.
(k) Trade agreements leading tocountry-specific quotas allocation
Withtheexception ofthequantitative restrictions specified intheAgreement withtheEuropean
Union onTextiles (seesection 5(a)below), theKyrgyz Republic hasnotrade agreements containing
provisions requiring orleading tocountry-specific quota allocations.
(l) Government procurement practices
TheKyrgyzRepubliccurrentlyhasnospecificlawregulatinggovernmentprocurementpractices.
Eachbranch, ministry, agency, orother governmental bodyisfreetoutilize whatever method itdesires
toacquire required goods andservices. Although suchbodies mayemploy opencompetitive bidding,
thisisnotrequired.
Adraftlawongovernment procurement entitled OntheProcurement ofGoods, Works and
Services iscurrently being prepared bytheGovernment. Itisbeing modeled primarily onthe
UNICITRAL Model LawontheProcurement ofGoods, Works andServices.WT/ACC/KGZ/3
Page37
(m) Regulation oftrade intransit
Under bothcurrent lawandtheProposed Customs Code, goods intransit must bedeclared
totheSCIatthepoint ofentry and,uponrelease fromthatentry point, maymove freely through the
customs territory oftheKyrgyz Republic. Nopayment ofduties ortaxesisrequired ongoods intransit.
Aslongasthegoods areclassified as“goods intransit, ”theymustremain unchanged except
fornormal wearandtearandnotbeusedforanyeconomic purpose. Suchgoods mustbetransported
totheircustoms destination according totheroutes anddirections established bytheSCI. Ifthegoods
arenottimely presented totheSCIatthepoint ofexit,thecarrier isresponsible forthepayment of
allduties andtaxes dueasifthegoods hadbeenreleased intofreecirculation (thecarrier ismayalso
beassessed anadministrative penalty), unless thegoods canbeproved tohavebeenexported, destroyed,
orlostasaconsequence ofanaccident orforce majeure event.
Under thecurrent Customs Tariff Law, theGovernment mayimpose restrictive customs transit
procedures asaretaliatory measure against goods and/or carriers from foreign countries orcustoms
unions inresponse toactions infringing theinterests oftheKyrgyz Republic oritscitizens. There
isnosimilar provision ineither theProposed Customs Code ortheProposed Customs Tariff Law.
4. Policies Affecting Foreign Trade inAgricultural Products
(a) Imports -i.e.comprehensive description ofthetypes ofborder protection maintained:
customs duties and/or anyother border measures
Theimport ofagricultural products doesnotrequire licensing. Restrictions suchasquotas
donotexist. Certain categories ofagricultural products, specified inthelistapproved byCabinet of
Ministers Resolution No.260of28April 1994 aresubject tocertification, thepurpose ofwhich is
toprotect thehealth ofKyrgyz citizens byrestricting theimportation ofpoorquality products andraw
material. Seesection 3(h)above. Imported agricultural products arecurrently subject toaflat
10percentcustoms duty; however, itisanticipated thatunder thenewtariff régime tobeadopted
inSeptember 1996, theywillbecome subject toratesofdutyranging from 0to25percent.
(b) Exports -i.e.description ofandthebudgetary expenditure andanyrevenue foregone
involved ineachoftheexport subsidy measures inplace
Nolicence isrequired toexport agricultural products. There arenoexport tariffs orquotas.
There arenoexport subsidies foragricultural products.
(c) Export prohibitions andrestrictions
There arenorestrictions orprohibitions ontheexport ofagricultural products.
(d) Export credits, export credit guarantees orinsurance programmes
TheKyrgyz Republic hasnoprogrammes establishing orotherwise offering export credits,
export credit guarantees, export credit insurance, orotherfinancial support orassistance foragricultural
exports.
(e) Internal policies -i.e.description ofandthebudgetary expenditure andanyrevenue
foregone involved ineachofthedomestic support measures inplace
Oneofthebasic aimsoftheKyrgyz Republic ’spolicy inagriculture istoensure thestability
andgrowth ofthesupply ofagricultural products tothedomestic market. TheKyrgyz Republic isWT/ACC/KGZ/3
Page38
therefore pursuing aprocess ofde-collectivization, reorganization andprivatization ofagricultural
enterprises. Agricultural prices havebeenliberalized.
TheGovernment ’sprogramme forthereform oftheagricultural sector oftheeconomy provides
forthecomplete cessation -asof1995 -ofdirect Statefinancial support payments toallagricultural
enterprises, withtheexception of6special animal breeding and26seedproducing farms. However,
duetoalackoffunds, inreality eventhese enterprises donotreceive either substantial orregular
financial support from theState.
Inpartial replacement ofdirect State financial support, funds loaned totheGovernment of
theKyrgyz Republic byvarious international organizations andinstitutions arebeing usedbythe
Government toprovide low-interest credit facilities toagricultural enterprises forthepurpose ofenabling
themtomake purchases ofcertain keyinputs, e.g.,seeds, fertilizer, equipment, etc.These loans bear
annual interest ratesofbetween 7percentand12percent. Thefollow-on loans totheagricultural
enterprises bearratesofbetween 1percentand5percent. Thisshould becompared totheannual
interest ratescharged byprivate commercial lenders, which currently ranges between 50percentand
60percent.
5. Policies Affecting Foreign Trade inOther Sectors
(a) Textiles regime
Imported textile products aresubject toratesofdutyranging from0to30percent. Inaddition,
imported children ’stextiles mustbecertified ascomplying withtheapplicable safety standards. This
certificationrequirementwasestablishedbyCabinetofMinistersResolutionNo.520of2December1995
andapplies equally tolocally produced children ’stextiles.
Theexport oftextile products isnotsubject toanyduties orother restrictions; however, on
26October 1993, theKyrgyz Republic andtheEuropean Union initialled thetextofanAgreement
onTrade inTextile Products (theEUTextile Agreement) imposing aquota onKyrgyz-origin textiles
intotheEuropean Union. TheEUTextile Agreement provides thatthequotas donottakeeffect until
1January 1997. TheCabinet ofMinisters issued Resolution No.56of6February 1996 providing
fortheimplementation ofthisagreement and,among other things, creating anexport licensing system
forexporters oftextiles totheEU.However, Resolution No.56byitsownterms willbecome effective
only ifandwhen theParliament approves theaccession oftheKyrgyz Republic tothe
Russia-Kazakstan-Belaruscustomsunion.AccordingtotheEUTextileAgreement,theKyrgyzRepublic
mayexport textiles totheEUaccording tothefollowing quotas (established aspercentages ofthetotal
imports ofsuchgoods intotheEUduring theprevious year):
- 0.35percentforcategory Igoods;
- 1.20percentforcategory IIgoods; and
- 4.00percentforcategory III,IVandVgoods.
(b) Policies affecting foreign trade inother major sectors
There arenopolicies affecting foreign trade inother sectors.WT/ACC/KGZ/3
Page39
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
(a) Intellectual property policy
Theintellectual property system oftheKyrgyz Republic isstillundergoing atransition from
thesystem inherited fromtheformer Soviet Union, which wasbased onSoviet political andeconomic
principles,includingStateownershipofproperty.AlthoughtheSovietUnionprovidedfortheprotection
ofintellectual property, theownership ofmostinventions andworks ofauthorship resided intheState
when theinvention orwork wascreated byanemployee ofaState-owned enterprise. Anindividual
who, outside ofaStateinstitution, created aninvention orwork ofauthorship wasentitled tocertain
intellectual property rights therein; however, those rights were mainly forrecognition purposes,
providingtheinventororauthorwithlittlefinancialrewardandabsolutelynocontroloverthesubsequent
useoftheinvention orwork ofauthorship.
Since independence, theregulatory agencies responsible forintellectual property matters have
promulgated anumber oftransitional intellectual property regulations.11Today, itisthepolicy ofthe
Government toputintoplace asystem ofintellectual property protection modeled onthesystems found
indeveloped market economy countries. Inpursuit ofthispolicy, theKyrgyz Republic isintheprocess
ofadopting (i)aCivil Code containing provisions establishing basic intellectual property rights and
protection and(ii)various additional specialized laws, eachdealing ingreater detail withaspecific
typeofintellectual property. Inaddition, oneother lawaddressing other subject matter (specifically,
theAnti-monopoly Law12)contains provisions proscribing andproviding penalties andcivilremedies
forcertain types ofbusiness conduct involving themisappropriation ofintellectual property.
(b) Responsible agencies forpolicy formulation andimplementation
On4March 1996, thePresident issued adecree, which, interalia,established acentral
intellectual property agency13,theStateAgency forIntellectual Property (alsoknown asKyrgyzpatent).
Thisagency isresponsible fortheregistration ofpatents, trademarks, industrial designs, copyrights
andassociated rights andbreeding achievements (i.e.newvarieties ofplants andnewbreeds ofanimals).
TheAnti-monopoly Department within theMinistry ofEconomy isresponsible forthe
administration andenforcement oftheAnti-monopoly Law,which, atsection 5,prohibits “unscrupulous
competition, ”defined asincluding theunauthorized useoftrademarks, trade dress and
confidential/proprietary business information.
(c) Membership ofinternational intellectual property conventions
Theformer Soviet Union wasamember ofanumber ofinternational conventions concerning
intellectual property. On14February 1994, theGovernment oftheKyrgyz Republic deposited a
declaration thatthefollowing conventions would continue tobeapplicable within theterritory ofthe
Kyrgyz Republic:
- TheConvention Establishing theWorld Intellectual Property Organization (WIPO);
11Alistofalllaws, including thesetemporary regulations, affecting intellectual property iscontained
insection V.5.
12LawOntheRestriction ofMonopolistic Activities andtheDevelopment andProtection of
Competition of15April 1994.
13Presidential Decree No.45OntheStructure andComposition ofGovernment of4March 1996.WT/ACC/KGZ/3
Page40
- TheParis Convention fortheProtection ofIndustrial Property;
- TheMadrid Agreement Concerning theInternational Registration ofMarks; and
- ThePatent Cooperation Treaty.
TheKyrgyz Republic alsoacceded totheEurasian Patent Convention, done atMoscow,
9September 1994, ratified 29September 1995.
Bilaterally, theKyrgyz Republic hassigned anAgreement Between theGovernment ofthe
Kyrgyz Republic andtheGovernment oftheRussian Federation onCooperation intheSphere of
Protection ofIndustrial Property, doneatBishkek, 13October 1995.
(d) Application ofnational andMFN treatment toforeign nationals
Thepolicy oftheKyrgyz Republic regarding application ofitsintellectual property lawsto
foreign nationals, asexpressed inArticle 51oftheCivilCode14andsection 1.5-1.6 ofKyrgyzpatent ’s
Temporary Regulations onIndustrial Property15istoaccord national treatment toforeign citizens,
stateless persons andforeign legalentities, unless suchtreatment iscontrary totheprovisions contained
inother international agreements towhich theKyrgyz Republic isaparty.
Nevertheless, therearecertain exceptions tothis“national treatment ”policy: First, section 8.1
ofKyrgyzpatent ’sTemporary Regulations onIndustrial Property requires aforeign legalentity having
itspermanent location inaforeign country orastateless person residing outside theKyrgyz Republic
towork through aregistered local patent attorney16when filing anapplication forapatent orthe
registration ofatrademark. Second, section 18ofthose same Temporary Regulations establishes
different methods forcalculating theapplication/registration andotherfeestobepaidbyKyrgyz citizens
andCISnationals (feessetinvarying shares ofthe“minimum salary ”)andthose tobepaidbynon-CIS
nationals (fees setinvarying amounts ofUS$).17Inaddition, throughout thevarious temporary
regulationsthathavebeenpromulgatedonintellectualpropertymatters,provisionsmaybefoundreducing
oreliminating feesforcertain classes ofpersons (specifically, veterans oftheGreat Patriotic War,
students anddisabled persons).
Itshould alsobenoted thatsection 12oftheTemporary Regulations onIndustrial Property
provide forthere-registration ofUSSR patents andpending patent applications. Additional cooperation
isprovided forunder theEurasian Patent Convention andthebilateral agreement withRussia (see
section 1(c)above).
(e) Feesandtaxes
Feesarecharged fortheprocessing oftrade mark andservice mark registration applications,
patent applications forinventions andindustrial designs andapplications forthecertification ofutility
models. Feesarealsocharged fortherenewal ofinvention andindustrial design patents. Finally,
feesarecharged inconnection withtheregistration ofcomputer programs, databases andintegrated
circuit topologies. Theschedule ofthese feesisprovided inthefollowing tables.
14PartIoftheCivil Code, containing Articles 1-414, wassigned intolawon8May1996andcame
intoforce on1June1996.
15Kyrgyzpatent ’sTemporary Regulations No.3OnIndustrial Property of2August 1993.
16Registered withtheIntellectual Property Office Kyrgyzpatent.
17Thisdifference intreatment isatemporary situation andwillbeeliminated induecourse.WT/ACC/KGZ/3
Page41
TABLE V-1
FeesforPatenting Inventions andIndustrial Designs andforCertifying Utility Models
CIS
NationalsNon-CIS
Nationals
Feeforfiling apatent application foraninvention or
industrial design, orforfiling acertificate application
forautility model0.5min.salary 100US$
Feeforpreliminary expert examination ofa
patent orcertificate application0.4min.salary 80US$
Feeforgeneral expert examination ofpatent
application for:
aninvention 2.5min.salary 500US$
anindustrial design 1.0min.salary 200US$
Feeforgeneral expert examination of
certificate application forautility model1.0min.salary 200US$
Feeforappealing therejection ofanapplication fora
preliminary patent oracertificate when suchrejection
occurs during thepreliminary expert examination0.5min.salary 100US$
Feeforappealing therejection ofanapplication fora
preliminary patent, patent orcertificate when such
rejection occurs during thegeneral expert examination1.0min.salary 200US$
Feefortheissuing ofapatent orpreliminary patent for
aninvention orindustrial design, oracertificate fora
utility model1.5min.salary 300US$
Feeforregistering alicensing agreement 1.5min.salary 150US$
TABLE V-2
FeesforRegistration ofTrade Marks andService Marks
CIS
NationalsNon-CIS
Nationals
Feeforfiling atrade mark orservice mark registration
application0.4min.salary 75US$
Feefortheexpert examination ofaregistration
application1.0min.salary 200US$
Feeforappealing therejection oftrade mark
registration application1.0min.salary 200US$
Feefortheissuance ofatrade mark registration
certificate0.75min.salary 200US$
Feefortheregistration ofalicensing agreement 1.0min.salary 200US$WT/ACC/KGZ/3
Page42
TABLE V-3
FeesforRenewal ofInvention Patent
Years CIS
NationalsNon-CIS Nationals
third-fourth 0.5min.salary 100US$
fifth-sixth 1.0min.salary 150US$
seventh-eighth 1.25min.salary 200US$
ninth-tenth 1.5min.salary 250US$
eleventh-twelfth 2.0min.salary 300US$
thirteenth-fourteenth 2.5min.salary 350US$
fifteenth-sixteenth 3.0min.salary 400US$
seventeenth-eighteenth 3.5min.salary 50US$
nineteenth-twentieth 4.0min.salary 500US$
TABLE V-4
FeesforRenewal ofIndustrial Design Patent
Years CIS
NationalsNon-CIS Nationals
third-fourth 0.5 min.salary 100US$
fifth 0.75min.salary 125US$
sixth 1.0 min.salary 150US$
seventh 1.25min.salary 175US$
eighth 1.5 min.salary 200US$
ninth 2.0 min.salary 225US$
tenth 2.5 min.salary 250US$
2. Substantive Standards ofProtection, Including Procedures FortheAcquisition and
Maintenance ofIntellectual Property Rights
Atthistime, thebasic legalrecognition ofintellectual property rights iscontained inseveral
articles oftheCivil Code. Article 7provides thatrights canariseasaconsequence ofthecreation
ofworks ofscience, literature, art,invention andother products ofintellectual activity. Article 22
specifically listsfirmbrands, trademarks andother means ofindividualizing articles among theobjects
ofsuchrights. Article 53oftheCivil Code provides, interalia,thatacitizen18mayhaveauthorship
rights inscientific works, works ofart,literature, inventions andother results ofintellectual activity.
Article 32provides thatacitizen hastheexclusive rightinandtotheresultant objective expression
ofhis/her/itsintellectualactivity,includinganymeanscreatedandusedforidentifying(“individualizing”)
18Although bothArticles 32and53usetheword “citizen, ”Article 51states that,unless otherwise
specifically provided, foreign citizens andstateless persons enjoy thesamerights under theCivilCode
asthose provided tocitizens.WT/ACC/KGZ/3
Page43
alegalentity, oraproduct, work, orservice produced oroffered byaphysical person orlegalentity
(e.g., firm’sname, product brand, trade mark, service mark, etc.). Article 32alsoprovides thata
thirdperson mayusesuchan“objective expression ”onlywiththeconsent oftheperson/entity holding
therightthereto.
These intellectual property provisions arecontained inPartIoftheCivil Code andreflect the
policy oftheKyrgyz Republic toprotect intellectual property. They alsoestablish aframework that
isintended tobefurther developed andrefined byadditional provisions inlaterpartsoftheCivil Code
(notyetadopted) andother specialized laws(alsonotyetadopted).
Some general intellectual property protection isalsoprovided bysection 5oftheAnti-monopoly
Law, which proscribes “unscrupulous competition, ”defined toinclude “theunauthorized useofa
trademark, name ormarking ofgoods; theunauthorized duplication ofaform, package orappearance
ofgoods ”and“theunauthorized useordisclosure ofconfidential scientific, technical, engineering
orcommercial information. ”
(a) Copyright andrelated rights, including rights ofperformers, producers ofphonograms
andbroadcasting organizations
PartIoftheCivilCode provides generally fortheprotection ofrights ofauthorship. Article 7
provides thatintellectual property rights ariseasaconsequence ofthecreation ofworks ofscience,
literature, arts,invention andother products ofintellectual activity. However, further implementing
legislation isneeded. Kyrgyzpatent ’sTemporary Regulations ontheOfficial Registration ofComputer
Programs,DatabasesandIntegratedCircuitTopologiesextendcopyrightprotectiontocomputerprograms
-other thancomputer programming languages -andtodatabases, which aretreated ascompilations.
These Temporary Regulations provide theowner ofsuch aprogram, databaseortopology withthe
option offormally registering hiscopyright therein. AdraftlawOnCopyrights andRelated Rights
iscurrently pending before theParliament. Initscurrent form, theproposed copyright lawwould
provide additional clarification astotherights ofauthors, performers, producers ofphonograms and
broadcasting organizations.
(b) Trademarks, including service marks
Kyrgyzpatent ’sTemporary Regulations onIndustrial Property provide fortheregistration of
trade marks foraperiod often(10)years from thepriority date. Trade marks andservice marks
arebothprotected andtreated inthesame manner under thislaw. Amore comprehensive drafttrade
mark lawiscurrently pending before theParliament.
(c) Geographical indications, including appellations oforigin
Thecurrent lawcontains noprovisions regarding geographical indications orappellations of
origin. Thedrafttrade mark lawpending before theParliament contains provisions ontheprotection
ofgeographical indications andappellations oforigin.
(d) Industrial designs
TheTemporaryRegulationsonIndustrialPropertyprovidefortheprotectionofindustrialdesigns
foraperiod of10years fromthepriority date. Thepriority dateandthedateoffiling withKyrgyzpatent
maydiffer byasmuch assixmonths forapplicants establishing priority byfirstfiling inanother country.
Industrial designs maybeprotected byanindustrial design patent iftheindustrial design isnew,original
andindustrially applicable. Alimited grace period isprovided fordisclosures bytheauthor orpersonWT/ACC/KGZ/3
Page44
whoobtained thedisclosed information fromtheauthor. Excluded fromprotection arearchitectural
structures andworks contradicting thepublic interest ortheprinciples ofhumanity.
(e) Patents
TheTemporary Regulations onIndustrial Property provide fortheissuance ofinvention patents
having aneffective period oftwenty years fromthepriority date. Aninvention ispatentable ifitis
new,hasaninventive levelandisindustrially applicable. Applications aretobefiledwithKyrgyzpatent
andareexamined onrequest oftheapplicant. Agrace period isestablished fordisclosures made by
theinventor oraperson whoobtained thedisclosed information from theinventor. Certain works
aretobeexcluded frombeing recognized asinventions. Theexclusions include, forexample, integrated
circuit topologies, which aregenerally notthesubject ofpatent protection, because theylacknovelty
oraninventive step. Similarly, patent protection isexcluded forworks contradicting thepublic interest
ortheprinciples ofhumanity.
(f) Plant variety protection
Plant varieties areexcluded frompatentability under theTemporary Regulations onIndustrial
Property. However, protection forbothplant andanimal breeding achievements isprovided under
theTemporary Regulations onBreeding Achievements.19
(g) Layout designs ofintegrated circuits
Layout designs ofintegrated circuits areprotected under Kyrgyzpatent ’sTemporary Regulations
ontheLegal Protection ofComputer Programs, Databases andIntegrated Circuit Topologies.20
Additional regulations establish thefeesforgranting acertificate totheauthor ofsuchitems.21The
effect ofsuchacertificate appears tobeprimarily evidentiary.
(h) Requirements onundisclosed information, including trade secrets andtestdata
TheCivilCodeprovides, atArticle 22,thatrights mayariseinprotected information. Article 34
provides thatinformation which contains anofficial orcommercial secret shallbeprotected when the
information isofrealorpotential commercial value byvirtue ofitsconfidentiality, when legitimate
access totheinformation isrestricted andwhen theowner oftheinformation takesmeasures toprotect
itsconfidentiality. Damages areavailable formisappropriation ofsuchinformation bypersons who
haveobtained itillegally orwhohavedivulged itinviolation ofacontractual obligation. Article 202
oftheCivil Code obligates acommercial representative tokeepconfidential allinformation learned
about salestransactions, evenafterthecompletion ofhisorheremployment. TheCriminal Code also
provides penalties forcopying information from computers.
(i) Anyother categories ofintellectual property
UnderKyrgyzpatent’sTemporaryRegulationsontheProcedurefortheRegistrationofLicensing
Agreements of24July1995, relationships on"know-how" areregulated byagreement. Trade names
areprotected under theCivil Code andunder thetrademark law.Articles 86and87oftheCivil Code
1924July1995.
20No.2/11of14March 1995.
21Temporary Regulations OntheRegistration Fees fortheOfficial Registration ofComputer
Programs, Databases andIntegrated Circuit Topologies of25September 1995.WT/ACC/KGZ/3
Page45
require State registration oflegal entities, including thefirmname intheregistration documents or
charter. Article 89requires thatalegalentity shallhaveaname andprovides thatalegalentity whose
firmname hasbeenregistered incompliance withestablished procedures shallhavetheexclusive right
tousethatname. Aperson whounlawfully usesanother firm'sregistered name isobliged tostop
using thename upon demand andtoindemnify theregistered owner foranydamage caused bysuch
use.Article 6ofthedraftlawOnTrade Marks, Service Marks andAppellations ofOrigin provides
thattrade marks arenotregistrable iftheyreproduce company names orparts thereof known inthe
Kyrgyz Republic andowned byother persons whoobtained therighttousethename before thetrade
mark application wasfiledifthetrade mark application isforanalogous goods.
3. Measures toControl Abuse ofIntellectual Property Rights
Section6.3oftheTemporaryRegulationsonIndustrialPropertyrequiresthatapatentedinvention
beusedwithin fouryears andapatented industrial design orcertified utility model beusedwithin
three years, from thedateofgrant. Otherwise, anyparty maydemand alicence from thepatent or
certificate holder. Iftheowner oftheindustrial property refuses, suchparty mayapply tothecourt
forthegrant ofacompulsory licence, which thecourt must grant unless theowner demonstrates a
good reason forthefailure touseortheinsufficient use.
4. Enforcement
(a) Civil judicial procedures andremedies
Some enforcement measures areprovided under theCivil Code. Article 10provides forcourt
enforcement ofrights created orrecognized bytheCivil Code. Thecourt having jurisdiction isto
bedetermined bytheapplicable contract orlawonprocedure. Article 11provides formethods of
enforcement, including theissuance ofacourtorder requiring (i)specific performance ofanobligation,
(ii)compensation oflosses, (iii)exaction ofpenalties andother means provided bylaw. Article 14
clarifies thatlosses include bothdirect andconsequential damages, including lostprofits, aswellas
theprofits made bytheviolator from theviolation oftheright. Compensation formoral harm is
available under Article 16.Theprotection ofhonour, dignity andbusiness reputation isprovided under
Article 18,where remedies include boththerightofrefutation andcompensation forlosses and/or
moral harm.
(b) Provisional measures
Section 22oftheTemporary Regulations onIndustrial Property provides fortheresolution
ofdisputes onauthorship, establishment ofpatent ownership, infringement ofpatent rights, licensing,
compensation foruseduring theperiod when atemporary patent orprotection certificate isineffect
foraninvention, industrial design orutility model, onvarious issues related toremuneration andon
theright ofprior use. These disputes aretobeadjudicated bytheappropriate court inaccordance
withthelegislation oncivilprocedure. Disputes arising inconnection withlabour rights (i.e.of
employed authors andinventors) aretobesettled inaccordance withlabour legislation. Issues dealing
withexaminationofobjectsofindustrialproperty,protests,oppositionandinvalidationsaretobehandled
bytheAppeal Council ofKyrgyzpatent.
(c) Anyadministrative procedures andremedies
Pursuant toArticle 10oftheCivilCode, administrative enforcement ofrights maybeexercised
onlyincases stipulated bylawandsuchdecisions areappealable incourt. TheTemporary Regulations
onIndustrial Property provide thatissues relating totheexamination ofvarious forms ofindustrial
property -patents andprotection certificates forinventions andindustrial designs, protective certificatesWT/ACC/KGZ/3
Page46
forutility models andregistration fortrade marks andservice marks, aretobehandled through an
appeal process within Kyrgyzpatent.
Theconsumer protection agency hasadministrative authority toaddress various forms of
unscrupulous business activity, including passing off,thesaleofitems notfitforordinary use(including
mislabelled items offoodanddrink) andtrade mark counterfeiting. Theconsumer protection agency
stilloperates under therules thatwere ineffect intheSoviet Union; however, newrules arebeing
formulated toreplace those rules.
UnderArticle20oftheAnti-monopolyLaw,theAnti-monopolyDepartmentwithintheMinistry
ofEconomy hasthepower tolevyandcollect finesagainst andfromphysical persons, legalentities,
governmental bodies andofficers oflegalentities andgovernmental bodies whoorwhich engage in
unscrupulous business activity, including actsofpassing off,trade mark misappropriation andthe
unauthorized use/disclosure ofproprietary information. Inaddition tofines, Article 22.1provides
that,uponsuccessful application bytheAnti-monopoly Department toacommercial court, aviolator
mayberequired tosurrender allprofits made fromtheconcerned activity. Finally, Article 22.2permits
thedamaged person orlegalentity torecover losses inanaction filedinanappropriate court.
(d) Anyspecial border measures
Kyrgyz lawdoesnotcurrently provide anyspecial border measures related tointellectual
property.
(e) Criminal procedures
TheKyrgyz Republic isconsidering theadoption ofanewcriminal code. Until suchtime
asanewcriminal codeisenacted, theapplicable criminal lawisthatoftheformer Kyrgyz SSR, as
amended. Thecurrent Criminal Code contains provisions concerning theinfringement ofcopyrights
orpatents, production andsaleofpoorquality goods, dishonest competition, useoftrademarks without
permission, cheating buyers andcustomers andcopying information from computers. Thecurrent
draftoftheproposed criminal codecontains provisions establishing penalties forinfringing copyrights
orpatents, using atrademark orcompany name without permission, commercial espionage, disclosure
ofacommercial secret, dishonest competition andcheating buyers andcustomers.
5. Laws, Decrees, Regulations andOther Legal ActsRelating TotheAbove
- Civil Code (Part I)of8May1996;
- Criminal Code of29December 1960;
- Code onCivil Procedure of30July1960;
- ThelawOnScience andthePrinciples ofStateScientific-Technical Policy of15April 1994;
- ThelawOnMass Media of2July1992;
- ThelawOntheRestriction ofMonopolistic Activities andtheDevelopment andProtection
ofCompetition of15April 1994;
- ThelawOntheProtection ofConsumer Rights of28February 1992;WT/ACC/KGZ/3
Page47
- Cabinet ofMinisters Resolution No.20-16 OnInternational Agreements intheSphere of
Industrial Property ofDecember 1993;
- Presidential Decree No.45OntheStructure andComposition ofGovernment of4March 1996;
- Cabinet ofMinisters Resolution No.523OntheRates ofCopyright Royalties of18July1994;
- Kyrgyzpatent ’sTemporary Regulations No.3OnIndustrial Property of2August 1993;
- Kyrgyzpatent ’sTemporary Regulations No.2/11OnLegal Protection ofComputer Programs,
Software andLayout Designs ofIntegrated Circuits of14March 1995;
- Kyrgyzpatent ’sTemporary Regulations OnBreeding Achievements of24July1995;
- Kyrgyzpatent ’sTemporary Regulations OnInventions, Utility Models andIndustrial Designs
Produced intheScope oftheInventors Employment of14March 1995;
- Kyrgyzpatent’sTemporaryRegulationsOntheProcedureforConsideringApplicationsSubmitted
bytheState Industrial Property Fund fortheProtection ofIndustrial Property Rights of
14July1995;
- Kyrgyzpatent ’sTemporary Regulations OnFeesforPatenting Inventions, Utility Models and
Industrial Designs andforRegistering Trade Marks andService Marks of8April 1994;
- Kyrgyzpatent ’sTemporary Regulations OntheProcedure forRegistering Licence Agreements
of24July1995;
- Kyrgyzpatent ’sTemporary Regulations OntheAppeals Council ofKyrgyzpatent of
15August 1995;
- Kyrgyzpatent ’sTemporary Regulations OnPatent Attorneys of26August 1993;
- Kyrgyzpatent ’sTemporary Regulations OnRegistration FeesfortheOfficial Registration of
Computer Programs, Databases andIntegrated Circuit Topologies of25September 1995;
- Kyrgyzpatent ’sTemporary Regulations OntheComposition, Submission andConsideration
ofApplications fortheOfficial Registration ofComputer Programs, Databases andIntegrated
Circuit Topologies of25August 1995;
- Kyrgyzpatent ’sTemporary Regulations OnPatent Fees forBreeding Achievements of
25September 1995;
- Kyrgyzpatent ’sTemporary Regulations OntheProcedure fortheHandling ofSecret Inventions,
Utility Models andIndustrial Designs of2July1995;
- Kyrgyzpatent ’sTemporary Regulations OntheStateIndustrial Property Fundof24July1995;
and
- Kyrgyzpatent’sRegulationsOnKyrgyzpatent’sExpertExaminationDepartmentforTradeMarks
(Service Marks) andIndustrial Designs of28July1994.
Thefollowing aredraftlawsunder consideration bytheParliament:WT/ACC/KGZ/3
Page48
- AlawOnCopyrights andRelated Rights;
- AlawOnTrade Marks, Service Marks andAppellations ofOrigin;
- AlawOnBreeding Achievements;
- AlawOntheLegal Protection ofSoftware andDatabases;
- AlawOntheLegal Protection ofIntegrated Circuit Topologies;
- APatent Law;
- AnewCriminal Code.
6. Statistical Data onApplication ForandGrants ofIntellectual Property Rights, aswell
asAnyStatistical Data ontheir Enforcement
TABLE V-5
Statistical Data onApplications Received andDecisions Rendered
1993
(from 16.6.93)1994 1995
Applications oninventions received: 29 383 134
from localapplicants 21 132 119
from foreign applicants 8 251 15
Decisions onissuing protection documents for
invention:10 83 66
forlocalapplicants 10 73 53
forforeign applicants --- 10 13
Applications onIndustrial design: 1 8 6
from localapplicants 1 --- 6
from foreign applicants --- 8 ---
Positive decisions onissuing protection documents for
industrial design--- --- ---
Applications ontrade marks received: 182 3387 463
from localapplicants 10 134 61
from foreign applicants 172 3253 402
Applications forregistration according toMadrid
Agreement received--- 3589 5937
Decisions made onregistration oftrade marks --- 2517 731
forlocalapplicants --- 35 59
forforeign applicants --- 2482 672WT/ACC/KGZ/3
Page49
VI. TRADE-RELATED SERVICES REGIME
1. General
Since independence, thetype, quality andnumber ofservice providers hasbeenexpanding
rapidly. Private companies andindividual suppliers dominate thesector. In1995, thesector accounted
forapproximately 40percentoftotalemployment. Theservice sector accounted for31.6percent
ofGDP in1994 and30percentin1995. Adescription ofselected service industries andthelegal
regime governing eachisprovided insection 5andAnnex 7.
2. Policy Affecting Trade inServices
(a) Governmentdepartments,agencies,professionalassociationsorotherbodieswithauthority
orarolerelevant totheconduct ofservice activities
Theprimary goals ofStateregulation oftheservices sector are:protection ofthelife,health
andeconomic interests ofconsumers, protection oftheenvironment andsuppression ofunfair
competition. TheKyrgyz Republic pursues these goals through asystem ofregulations intended to
impose aminimum ofburdens onservice suppliers. Theregulatory system, witharelatively few
minor exceptions, isimposed equally onbothforeign anddomestic suppliers (including foreign-owned
domestic suppliers). Therefore, foreign suppliers generally enjoy national treatment. Inaddition, the
Kyrgyz Republic doesnotdiscriminate among foreign suppliers ofservices onanybasis.
Thesupplying ofcertain services issubject tolicensing and/or certification requirements that,
withfewminor exceptions, areimposed equally onallconcerned suppliers. Forasummary ofthe
exceptions tothispolicy ofnational treatment forservice suppliers, seesection 3.
Article 21oftheLaw OnGeneral Principles ofDenationalization, Privatization and
Entrepreneurship of20December 1991specifies alistofactivities thataresubject tolicensing, many
ofwhich directly affect suppliers ofservices. Pursuant tothislaw,thePresident, on19June1992,
issued adecree entitled OntheLicensing Procedure forCertain Kinds ofEntrepreneurship (theLicensing
Decree). Thisdecree reiterates thelistofactivities requiring licensing andspecifies theparticular State
bodyresponsible forthelicensing ofeach. TheLicensing Decree alsocontains some general provisions
ontheprocedure tobefollowed intheissuing oflicences; however, theLicensing Decree alsoauthorizes
eachsuchStatebodytoestablish, within itsdiscretion anddepending onthetypeoflicence involved,
thequalifications andtechnical requirements thatmust bemetbyanapplicant.
Thefollowing Table VI-1setsforththeactivities specified intheLicensing Decree which are
ofparticular interest toservice providers. Table VI-1alsoprovides thename oftheresponsible State
body:
TABLE VI-1
Type ofActivity Requiring Licence Responsible State Body
Searching for,exploring andexploiting
mineral deposits.Ministry ofGeology andMineral Resources
Constructing dams onrivers and
reservoirs.Ministry ofWater Resources withthe
consent ofMinistry ofGeology and
Mineral Resources
Repairing hunting, sports andother arms;
private detective andguard activities.Ministry ofInterior
Health careandveterinary services. Ministry ofHealthWT/ACC/KGZ/3
Page50
Type ofActivity Requiring Licence Responsible State Body
Producing andtrading inmedicines and
pharmaceuticals; Producing perfumes,
cosmetics andchemicals, alsoselling any
suchitems iftheitemhasnotbeencertified
byKyrgyzstandard.Ministry ofHealth withtheconsent ofthe
Ministry ofIndustry andTrade
Legal services. Ministry ofJustice
Creation andmaintenance ofgaming
establishments andorganization ofgames of
chance.Ministry ofInterior
Production andshowing of
pornographic anderotic movies andvideo
products.State Concern Kyrgyzkino, iftheExpert
Examination Commission under the
Ministry ofJustice hasdetermined the
material tobepornographic.
Publication and/or trade inproducts witha
pornographic anderotic content.State Concern Akyl iftheExpert
Examination Commission under the
Ministry ofJustice hasdetermined the
material tobepornographic.
Tourism, excursion andalpine activity. Ministry ofTourism andSports
Aviation transportation ofpassengers,
baggage, mailandgoods; theconduct of
aviation works; performing services
connected withthetake-off orlanding of
civilaircraft; performing technical services
onaircraft oraviation equipment; offering
civilaviation transportation services.
Road transportation activity andservices;
services connected withsuchtransportation;
freight forwarding services.Ministry ofTransportation
Passenger transportation activity and
services within thecityofBishkek.Bishkek Mayoral Administration
Town-planning services; architectural
design ofbuildings andconstruction
projects; implementation ofconstruction
andassembly works; certification testing of
building materials andcomponents;
engineering examination ofbuilding
components; services intherepairing,
restoration, reconstruction and
reinforcement ofbuildings andstructures;
control overthequality ofworks on
architectural design, building materials,
structures, goods andconstruction-assembly
works.Ministry ofArchitecture andConstruction
Banking andfinancial services. National Bank oftheKyrgyz Republic
Professional services rendered inconnection
withthepurchase andsaleofsecurities.State Agency fortheSupervision of
Securities Operations
Pension fundservices. Ministry ofLabour andSocial Security
Insurance services. State Insurance AgencyWT/ACC/KGZ/3
Page51
Type ofActivity Requiring Licence Responsible State Body
Production oftopographic andgeodesic air
photographs andcartographic works;
geodesic engineering research.State Agency onGeodesy andCartography
under theMinistry ofGeology andMineral
Resources
Trade inalcoholic products. State Joint Stock Company Kyrgyzalco with
theconsent oftheMinistry ofHealth
Independent property appraisal services. State Property Fund
Inaddition totheactivities specified inTable VI-1, which aresubject tolicensing pursuant
totheLicensing Decree, fourother types ofactivities aresubject tolicensing: (i)according tothe
Ministry ofCommunication ’sTemporary Regulations ontheGranting ofLicences forCertain Types
ofActivity intheSphere ofCommunication of27January 1994, aprivate company orState-owned
enterprisemustobtainalicenceinordertoprovidetelecommunicationservices;(ii)CabinetofMinisters
Resolution No.33of26January 1993 authorizes theCouncil ofAuditors -amixed State/private
organization -tolicence andestablish thelicensing requirements applicable to,auditors; (iii)according
tothelawOnCertification of2April 1996 (theCertification Law) andthelawOnUniformity of
Measurement ofthesamedate,persons whosell,leaseorrepair measuring equipment mustbelicensed
byKyrgyzstandard; and(iv)alsounder theCertification Law, anyperson performing certification
services orcertification testing must havealicence from Kyrgyzstandard.
Thesamebodyresponsible forissuing alicence isgenerally alsoresponsible forpromulgating
andadministering theregulations governing thelicensed activity.
TABLE VI-2
State Bodies andProfessional Associations Having Authority Related toServices
State bodies withauthority related to
servicesScope ofauthority
1.State Mining Technical Inspectorate Ensures thecompliance ofmining works
withsafety norms.
2.Chamber ofAuditors Establishes professional standards for
auditors andsupervises theiractivity.
3.College ofAdvocates Establishes professional standards for
advocates andsupervises theiractivity.
4.State Company “Kyrgyzstan Airlines ” Establishes standards forcivilaviation air
carriers andcertifies theircompliance.
(b) Judicial, arbitral oradministrative tribunals orprocedures providing forthereview of,
orremedies inrelation to,administrative decisions affecting inservices
Anyadministrative decision ofaStatebodymaybeappealed firsttotheheadoftheconcerned
State body andthereafter totheordinary court having jurisdiction. Seesection III.6.WT/ACC/KGZ/3
Page52
(c) Provisions, including those ininternational agreements, concerning qualification
requirements andprocedures, technical standards andlicences and/or registration
requirements forthesupply ofservices
According toCabinet ofMinisters Resolution No.260of28April 1994, asamended on
5April 1996, themethods ofsuppliers ofthefollowing types ofservices must becertified:
- repair ofcommunication devices andequipment;
- repair oftechnical means andequipment foraccounting, planning andanalysis ofoperations
andoffice equipment;
- repair ofhunting, sports andother arms forpersonal use;
- repair ofleadstarter batteries;
- repair andmaintenance ofcashcontrol devices;
- repair andmaintenance ofrefrigerators usedinpublic catering andtrade;
- repair andmaintenance ofgasmeters;
- repair ofradio devices;
- repair ofhousehold devices andmachines;
- repair andmaintenance ofprivate means oftransportation;
- repair andproduction ofoptical instruments anddevices forspectacles;
- public catering services;
- dry-cleaning services; and
- laundering services.
Kyrgyzstandard grants acertificate (analogous toalicence) tothesuppliers ofthese services.
Thegeneral procedure requirements forthecertification ofservices complies withtheGuiding Principles
oftheInternational Standards Organization (ISO) andwithEuropean standards. Inaccordance with
theAgreement onCoordinated Policy onStandardization, Metrology andCertification signed within
theCISandthebilateral agreements based onit,Kyrgyzstandard recognizes certificates onservices
granted byother CIScountries. Agreements withTurkey, India, China, Cyprus, Iran, Austria and
Germany onstandardization andcertification measures applicable toservices arenowunder negotiation.
(d) Provisionsgoverningtheexistenceandoperationofmonopoliesorexclusiveservicesuppliers
Thebasiccompetition lawofKyrgyzstan isthelawOntheRestriction ofMonopolistic Activity
andtheDevelopment andProtection ofCompetition of15April 1994. ThisAnti-monopoly Lawis
administeredbytheAnti-monopolyDepartment(AMD)intheMinistryofEconomyandappliesgenerally
toalleconomic entities, including service suppliers. Thelawprovides fortheclassification and
regulationofmonopolisticentities.Threeclassesofmonopoliesareprovidedfor:“natural”,“permitted”
and“temporary ”.Seesection II.2(e). Themost recent listof“natural ”monopolies contains three
service suppliers:
Table VI-3
Listof“Natural ”Service Monopolies
Name ofNatural Monopoly Type ofservice
1.Kyrgyz Energy Holding Electric Power
2.Management Department oftheKyrgyz Railroad Railway Passenger Transportation
3.Ministry ofCommunication Telecommunication Services
There arenoservice-suppliers whohavebeengiven anexclusive status.WT/ACC/KGZ/3
Page53
(e) Provisions relating tosafeguard measures inrespect oftrade inservices
TheKyrgyz Republic doesnothavesafeguard measures inrespect oftrade inservices.
(f-g) Provisions relating tointernational transfers andpayments forcurrent andcapital
transactions inservices
ThelawOnTransactions inForeign Currency of5July1995 guarantees thefreemovement
offoreign currency toandfrom abroad (Article 13).
(h) Provisions governing theprocurement bygovernmental agencies ofservices
Procurement ofservices bygovernmental agencies isregulated inthesame wayasthe
procurement ofgoods mentioned insection IV.3.
(i) Provisions concerning anyform ofaid,grant, domestic subsidy, taxincentive orpromotion
scheme affecting trade inservices
TheKyrgyz Republic provides certain limited taxincentives toencourage foreign investment
inanumber ofdomestic industries, including certain specified service industries (i.e.construction,
transportation, communications, trade, tourism, banking andinsurance). These incentives aresetforth
inthelawOnForeign Investment of28June1991. Under thislaw,if51percentofadomestic legal
entity isforeign owned orif30percentofitscharter fundwascontributed byforeigners, thatentity
willbeentitled toaprofits taxexemption for2-5years, depending onthenature ofitsactivity:
(i)manufacturing orconstruction, 5years; (ii)mining, processing ofnatural resources, agriculture,
transportation orcommunication, 3years; (iii)trade, tourism, banking orinsurance, orother kinds
ofactivity, 2years.
3. Market Access andNational Treatment
(a) Limitations onthenumber ofservice suppliers
There arenolimitations onthenumber ofservice suppliers.
(b) Limitations onthetotalvalue ofservice transactions andassets
There arenosuchlimitations.
(c) Limitations onthetotalnumber service operations oronthetotalquantity ofservice output
There arenosuchlimitations.
(d) Limitations onthetotalnumber ofnatural persons thatmaybeemployed inaparticular
service sector
There arenosuchlimitations.
(e) Restrictions on,orrequirements ofspecific types oflegal entity through which aservice
maybesupplied
With theexception ofthefollowing, there arenosuchrestrictions orrequirements: (i)a
pawnshopmustbeorganizedasanextendedliabilitycompanyorageneralpartnership,(ii)aninvestmentWT/ACC/KGZ/3
Page54
fundmust beorganized intheform ofanopen joint-stock company and(iii)aninsurance provider
must beorganized asaKyrgyz legalentity.
(f) Limitations ontheparticipation offoreign capital
Under Article 113oftheAirCode of15April 1994 (theAirCode), anyKyrgyz legalentity
offering airtransportation services forpassengers orgoods mayhavenomore than49percentforeign
ownership. Only Kyrgyz legal entities may offer internal airtransport services within the
Kyrgyz Republic. Foreign legal entities offering international airtransport services arenotsubject
tothe49percentlimitation onforeign ownership andmayoffersuchinternational airtransport services
iftheyhavebeenproperly licensed bytheMinistry ofTransportation (however, seesection VI.5(f)
foradescription ofthecurrent situation ontheissuing ofairtransportation licences).
(g) Measures providing forlessthanthetreatment accorded tonational services orservice
suppliers
TheKyrgyz Republic provides foreign service providers withnon-discriminatory treatment
except asfollows: (i)aKyrgyz legal entity thatoffers banking services andisatleast20percent
foreign-owned isrequired tohaveaminimum authorized fundof20million Soms, anamount twice
aslargeasthatrequired forbanks having lessthan20percentforeign ownership; (ii)only“firstclass”
foreign banks mayopenbranches intheKyrgyz Republic; (iii)onlyindividual Kyrgyz citizens (not
legalentities)canobtainalicencetoperformauditingservices;however,aKyrgyzlegalentity(including
aforeign owned Kyrgyz legalentity) mayoffersuchservices ifithasatleastonelicensed employee.
Insuchacase,theotheremployees ofthatlegalentity mayoffersuchservices andthelicensed employee
isresponsible fortheresults oftheiractivity; and(iv)onlyanindividual citizen oftheKyrgyz Republic
maybecome anadvocate andonlyanadvocate mayrender attorney services incriminal cases; inall
other legalservice areas, foreign attorneys mayobtain alicence andofferlegalservices onthesame
basis asKyrgyz citizens.
4. Most-Favoured-Nation Treatment
TheKyrgyz Republic doesnotmaintain anymeasures affecting service providers thatare
inconsistent withMFN treatment.
5. Description oftheMarket andtheMechanism forRegulating theMost Prominent Service
Sectors
(a) Legal services
Alllawyers musthavealawdegree. Thelegalprofession isdivided intothreebasiccategories
oflawyers: (i)advocates, i.e.lawyers inprivate practice whohavebecome members oftheirlocal
College ofAdvocates, theprofessional barassociation, (ii)other private practice lawyers, i.e.lawyers
andlawfirms whoorwhich haveobtained alicence fromtheMinistry ofJustice toofferlegalservices
tothepublic and(iii)lawyers notengaged inprivate practice, suchasin-house company lawyers and
government lawyers (notethatnotary services areonlyprovided bygovernment lawyers atStatenotary
offices).
Anadvocate hastherighttorender alllegalservices tothepublic, including legal services
inconnection withcriminal matters. Anadvocate maynotrender services tothegovernment. Other
licensed private practice lawyers andlawfirms havetherighttoofferlegalservices tothepublic and
thegovernment, butmaynotdealwithcriminal matters. Other lawyers -suchaslawyers employed
directly bythegovernment oracompany -donotrequire alicence. Thevastmajority oflawyers
inthecountry fallintothisfinal category.WT/ACC/KGZ/3
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Theconduct ofadvocates isregulated bytheLaw onRegulation ofAdvocates ofthe
Kyrgyz Republic of11November 1980andtheLawonAdvocates oftheUSSR of30November 1979.
Advocates generally offertheirservices tothepublic through theirlocalCollege ofAdvocates. Each
suchCollege ofAdvocates employs non-advocate lawyers asinterns, who, afteraninternship ofsix
months tooneyear, mayapply foradmittance totheCollege asanadvocate. Inaddition, anyperson
whohastwoyears ofpractical experience asalawyer years mayapply foradmittance asanadvocate.
Only individual Kyrgyz citizens maybecome advocates.
Theconduct oflawyers andlawfirms inprivate practice isregulated bytheLicensing Decree
andCabinet ofMinisters Resolution No.590of30November 1992. Anyperson, including aforeign
citizen, holding alawdegree from anyinstitution intheworld andwhohasthree years ofpractical
experience asalawyer, aswellasanyKyrgyz legalentity employing suchaperson, mayapply for
alicence tooffernon-criminal legalservices tothepublic. TheMinistry ofJustice conducts areview
oftheapplicant ’scredentials andconducts anoralexamination oftheapplicant ortheconcerned
employee oftheapplicant. Upon successful completion oftheexamination, theMinistry ofJustice
willissue alicence granting theapplicant therighttooffernon-criminal legalservices tothepublic.
Since thebeginning of1995, theMinistry ofJustice hasgranted 27licences forprivate practice: 11to
legalentities (3ofwhich haveforeign participation) and16tonatural persons.
Therearenoavailablestatisticsonthenumberofunlicensedlawyersworkingforthegovernment
orasin-house lawyers atcompanies.
(b) Telecommunication services
Inthetelecommunications services market, telephone services arealmost wholly provided by
theState-owned telephone company Kyrgyztelecom. On7July1994theKyrgyz Republic entered into
adevelopment credit agreement foratelecommunications project withtheInternational Development
Association (IDA). Pursuant totheterms ofthatagreement, theCabinet ofMinisters issued Resolution
No.167of16May1995 entitled OntheWork oftheMinistry ofCommunication fortheRealization
oftheFirstTelecommunication Project Funded bytheWorld Bank/IDA andtheEuropean Bank for
Reconstruction andDevelopment. Insection 2ofthisResolution, theCabinet ofMinisters directed
theMinistry ofCommunications togrant Kyrgyztelecom, theState-owned telephone company, the
exclusive righttoprovide telecommunication services overtrunk (inter-city) andinternational lines
inKyrgyzstan. Other firms desiring tooffertelecommunication services utilizing theselinesmustenter
intoanagreement withKyrgyztelecom.
Kyrgyzpost, theState-owned postal service provider, hasanagreement withKyrgyztelecom
toprovide retailtelegram services andretailinter-city andinternational telephone services tothewalk-in
public. Kyrgyzpost provides suchservices atmost ofitsoffices throughout Kyrgyz Republic. In
addition, private companies canlease linesfrom Kyrgyztelecom.
Thelinesoperated byKyrgyztelecom areutilized forvoice anddatacommunication, including
theexchange ofcomputer dataandfacsimile communication.
There isalsoaState-owned production association ofState-owned enterprises involved in
providing radio-relay maincables services andtelevision andradio broadcast services. Finally, there
areseven private Kyrgyz legalentities providing telecommunication services (three ofwhich arepartly
foreign owned). These private companies provide e-mail andmobile cellular telephone communication
services.
Income fromcommunication services was115million somsin1994and221.8 million in1995.WT/ACC/KGZ/3
Page56
TABLE VI-4
Income from Telecommunication Services in1995
Type ofService Millions
ofSomsPercent ofTotal Value of
AllTelecommunication
Services
1.Telegraph 8.9 4.0
2.International Line 128.9 58.1
3.Trunk Line 46.0 20.7
4.Urban andRural Telephone Wire Communication 36.3 16.4
5.Sound Wire Communication 1.7 0.8
Thelevel oftelephone installation intheKyrgyz Republic is13.3percent. There isan
automatic telephone station (ATS) for150,000 numbers installed inBishkek accounting for40percent
ofthetotalnumber oftelephones inthecountry, eventhough only13percentofthepopulation live
there. Theaverage leveloftelephone installation intherestofthecountry isabout 5percent. There
isstillaconsiderable waitfortelephone installation andapproximately 85,000 applications fortelephone
installation arepending.
Atariffforbasic telecommunication services isestablished bytheAnti-monopoly Department
under theMinistry ofEconomy.
International traffic goesthrough theMoscow lockstation. Recently, asmall share ofthetraffic
hasbegun togothrough Turkey, which usestheINTELSAT satellite communication system. However
thissystem provides insufficient coverage duetolimited territory thatmayreceive thesatellite signal
currently inuse.
TheMinistry ofCommunication isgenerally responsible foradministering theregulations
affecting thetelecommunications industry. Inaccordance with theMinistry ofCommunication ’s
Temporary Regulations ontheGranting ofLicences forCertain Types ofActivity intheSphere of
Communication of27January 1994, aprivate company orState-owned enterprise mustobtain alicence
inorder toprovide anyofthefollowing services:
- localtelephone communication;
- telegraph communication;
- datatransfer;
- audio-conference communication;
- video-conference communication;
- mobile radio communication;
- mobile radiotelephone communication;
- cellular communication;
- personal radio-call (paging communication);
- transmission ofsound programmes overwirenetwork;
- transmission oftelevision broadcasting;
- transmission ofradio broadcasting;
- reception, transportation anddelivery ofpostal mail;
- figure system ofintegral service (ISDN);
- international communication; and
- inter-city (trunk) communications.WT/ACC/KGZ/3
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Section 1.5ofthose Temporary Regulations states thatthelicence canspecify arestricted
geographic territory within which theservices maybeprovided.
(c) Health services
State health institutions render medical anddental services tocitizens freeofcharge.
InJulyof1991, private health careproviders -including pharmacists -began offering services
individuallyandthroughKyrgyzlegalentities.PursuanttotheLicensingDecree,theseprivateproviders
must obtain alicence from theMinistry ofHealth. Since Juneof1992 when theLicensing Decree
wasissued, 608licences havebeengranted toprivate providers ofmedical, dental andpharmaceutical
services.
TABLE VI-5
Basic Parameters ofHealth
1994 1995
Number ofphysicians inallspecialties 14,674 14,990
Number ofmedical support personnel 41,939 42,296
Number ofhealth careestablishments 353 348
Number ofhospital beds 44,082 40,196
Number ofhealth careestablishments offering out-patient
polyclinic services641 605
Providers ofhealth careservices areregulated bythe“LawonHealth Protection ofthe
Population ”of2July 1992, asamended on18December 1992 andbytheLaw on
Sanitary-Epidemiological Well-being ofthePopulation of2July1992. Inaddition, pursuant tothe
delegation oflicensing authority intheLicensing Decree, on14February 1994theMinistry ofHealth
promulgated itsRegulations ontheLicensing Procedure forEntrepreneurial Activity ofPaidMedical,
Pharmaceutical Enterprises andEducational Establishments andPersons Dealing withPrivate Medical,
Pharmaceutical Practice andPaidEducation. These regulations establish theprocedures forlicensing
private health careproviders.
Privatehealthcareprovidersarenotallowedtotreattuberculosis,mentalillness,venerealdisease,
oncological disorders (cancer), orserious infectious diseases (including leprosy andAIDS). Private
pharmaceutical enterprises arenotallowed toproduce, store orsellnarcotic, psychotropic orother
virulent medicines.
Aperson whohasgonethrough theappropriate medical training andeducation andreceived
adiploma upongraduation or-inthecaseofaspecialist -acorresponding certificate aftergraduation
hastherighttoobtain alicence authorizing himorhertoofferhealth careservices forpaytothepublic.
Aperson whohasacquired amedical education anddiploma inaforeign country alsohassuchright,
provided thatthediploma isofastatus equal todiplomas ofmedical educational establishments of
theKyrgyz Republic. Note, however, theMinistry ofHealth hasnotyetissued anyregulations
identifying those foreign countries orforeign medical educational institutions, themedical licences
ordiplomas ofwhich willbeaccepted. Noregulations haveyetbeenissued establishing thecriteria
thatwillbeusedtomake suchadetermination.WT/ACC/KGZ/3
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(d) Education services
TheState provides nineyears ofcompulsory education freeofcharge toallKyrgyz citizens.
Thereafter, acitizen hastherighttocontinue hisorhereducation freeofcharge ata“medium special ”
Stateinstitution oraStateinstitution ofhigher education (e.g., auniversity, atechnical institute, an
agricultural school, amedical school, etc.). Thebasic9-year education iscompulsory forevery citizen,
butthismaybeprovided either byaState orprivate educational institution. There are1,844 State
schools and19wholly private and13partly private schools providing thiscompulsory education.
There are11Stateand11private institutions ofhigher education. Allprivate educational institutions
must obtain alicence from theMinistry ofEducation andScience.
TABLE VI-6
Number ofStudents inHigher Educational Institutions
asoftheBeginning oftheAcademic Year (thous.)
1994\95 1995\96
Number ofeducational institutions 22 22
Number ofstudents 55.2 57.2
TABLE VI-7
Number ofStudents inSpecial Medium Secondary Educational Institutions
asoftheBeginning oftheAcademic Year (thous.)
1994\95 1995\96
Number ofeducational institutions 52 54
Number ofstudents 32.7 29.4
Theeducational system isregulated bytheLawonEducation of16December 1992 and
Cabinet ofMinisters Resolution No.395of25August 1993 approving, interalia,theRegulations
ontheMultilevel Structure ofHigher Education, which hadbeendrafted bytheMinistry ofEducation
andScience.
ThelicensingandregulationofeducationalservicesandactivitiesisadministeredbytheMinistry
ofEducation andScience. TheMinistry ofEducation andScience establishes educational standards,
which alleducational institutions arerequired tomaintain. Inaddition, thatministry establishes certain
other mandatory requirements thatprivate educational establishments must fulfil inorder toobtain
licence (e.g., requirements onthefinancial situation oftheestablishment, thequalifications ofits
instructors, thenumber ofitsinstructors andtheadequacy ofitsmaterial resources).
There arenorestrictions orspecial requirements imposed onforeign participation inthe
educational industry.
(e) Banking services
Twomajor pieces oflegislation govern theoffering ofbanking andfinancial services inthe
Kyrgyz Republic: theLawontheNational Bank oftheKyrgyz Republic of12December 1992(the
Central Bank Law) andtheLawonBanks andBanking Activity of11December 1992 (theBanking
Law). These twolawsestablish atwo-tier banking system intheKyrgyz Republic. ThefirsttierisWT/ACC/KGZ/3
Page59
composed ofthecentral bank, theNational Bank oftheKyrgyz Republic (NBKR). Thesecond tier
iscomposed ofcommercial banks (15atpresent) which arelicensed andregulated bytheNBKR.
TheNBKR hasagreatdealofautonomy inestablishing andadministering monetary andcredit
policy intheKyrgyz Republic. TheNBKR establishes suchpolicy inaccordance withtherequirements
oftheIMF. TheNBKR isalsorequired toconsult withtheCabinet ofMinisters; however, theCabinet
ofMinisters doesnothavetherighttorequire changes inthemonetary andcredit policy conducted
bytheNBKR. TheNBKR isrequired topresent anannual report onitsactivities totheParliament,
which under Article 7oftheCentral Bank Law, hastheauthority torequire theNBKR tochange its
monetary andcredit policy through theadoption ofa“normative act”.
On25October 1995, theNBKR signed anAgreement onCreating aRegional Group onBanking
Supervision forTranscaucas andCentral Asian States. Theother signatories areArmenia, Georgia,
Kazakstan, Tajikistan, Turkmenistan andUzbekistan. Thisagreement commits thesignatories tocreate
acouncil onbanksupervision forthepurpose ofcoordinating banksupervision policy andpractice;
however, itsresolutions arenotbinding onthesignatories. Theagreement requires thecouncil to
adopt resolutions andother actsinaccordance withthestandards oftheBasel Committee (e.g.,
establishing requirements fortheadequacy ofcapital, adopting international banking accounting
principles, setting minimum reserve requirements, defining requirements forhigh-risk banking
operations, etc.).
Since 1993, theNBKR hasgranted 26commercial banking licences. Eleven ofthose licences
havebeenrevoked. Asof10June1996, 15commercial banks were licensed andoperating inthe
country. Ofthe15,fivehaveforeign participation. Almost allofthese banks havetheirheadoffices
inBishkek. These 15banks haveapproximately 65branches throughout thecountry. Although the
State hasaminority ownership interest inseveral ofthese commercial banks, 90percentofthe
aggregate shares areprivately held.
Inorder tocoordinate andimprove themanagement ofcommercial banks, aCouncil ofBanks
hasbeenorganized, themembers ofwhich arethetopexecutives fromthecommercial banks andthe
NBKR. Common problems withthebanking system arediscussed atitsmeetings. Inaddition, there
aretwoprivate banking associations representing thecommon interests ofcommercial banks: theUnion
ofBanks andtheAssociation ofBanks ofKyrgyzstan.
Acommercial bank needs aspecial licence from theNBKR toconduct foreign currency
operations. Currently, 14outofthe15commercial banks holdsuchalicence. Abankholding such
alicence mayconduct foreign currency exchange services andmaintain foreign currency accounts for
itsclients. AllKyrgyz legalentities andnatural citizens mayfreely openaccounts ineither soms or
foreign currency. Inaddition, foreign legalentities registered intheKyrgyz Republic andaliens holding
resident visas mayalsoopensuchaccounts.
Kyrgyz legalentities andnatural citizens mayopenaccounts abroad without receiving prior
permission from anygovernment agency; however, theymust report suchaccounts totheNBKR.
Thesame applies toforeign accounts opened byforeign natural persons permanently residing inthe
Kyrgyz Republic whohaveregistered withtheDepartment oftheImmigration attheMinistry ofInternal
Affairs.
On1February 1995, theaggregate deposits inKyrgyz commercial banks byindividuals was
180.2 million soms orUS$16.7million. By1May1996the aggregate deposits inKyrgyz commercial
banks ofallindividuals totalled 258.4 million soms orUS$22.2million (379.5 million soms or
US$35.1million). On1May1996, theaggregate deposits ofalllegalentities inKyrgyz commercial
banks totalled 576.3 million soms orUS$49.5million.WT/ACC/KGZ/3
Page60
Inorder tooffer commercial banking andother financial services, itisnecessary forthe
concerned legalentity toobtain alicence from andberegistered with, theNBKR. Abankneednot
register withanyother State body.
Ageneral licence gives thegrantee therighttooffer11basic banking services. Ifabanking
entity desires toconduct otherbanking operations, suchastransactions inforeign currency, transactions
withprecious metals andother transactions notincluded inthegeneral licence (including “high-risk ”
activitiessuchascurrencyswapsandsecuritiestransactions),anadditionallicencespecificallyauthorizing
thedesired operations must beobtained.
Toobtain thegeneral licence, itisnecessary toprovide theNBKR with(i)complete information
onthebank’sfinances; (ii)complete information ontheprofessional suitability oftheperson who
willbethechief executive ofthebank, theperson whowillbethechief accountant andthepersons
whowillbemembers oftheboard ofdirectors; and(iii)awritten report ofalicensed auditor or
auditing organization onthefinancial status ofthefounders confirming theirfinancial soundness and
thelegality oftheorigin oftheirfinancial resources. Ifafounder isaforeign legalentity, theNBKR
must beprovided withthatentity ’saudited financial statements forthemost recent three years. If
afounder isaforeign natural person, afirstclassforeign bankmustprovide theNBKR withawritten
document confirming theindividual ’ssolvency; inaddition, theindividual mustprovide theNBKR
withwritten recommendations fromnolessthantwoforeign legalentities and/or natural persons which
orwhoareknown tobesolvent.
Withtheexception oftheminimum capital requirement, foreign legalentities andindividuals
mayestablish, ownandoperate Kyrgyz banking entities onthesame terms andconditions asKyrgyz
legalentities andpersons. According totheNBKR ’sregulations entitled OntheIncrease oftheCapital
Required forCommercial Banks intheKyrgyz Republic of9August 1995, commercial banks having
lessthan 20percentforeign ownership arerequired tohave aminimum charter capital of
10million soms (currently about US$800,000) andcommercial banks having 20percentormore
foreign ownership arerequired tohaveaminimum charter capital of20million soms(US$ 1,600,000).
Otherwise, Kyrgyz banks wholly orpartly owned byforeign legalentities and/or individuals aresubject
tothesame lawsandregulations asKyrgyz banks wholly owned byKyrgyz legal entities and/or
individuals.
Inaddition, theregulations oftheNBKR provide thatafirst-class foreign bank, asdefined
inaccordance withinternational banking practice, mayopen a“branch ”inKyrgyzstan; however,
though there arenospecial provisions regulating creation ofbranches, inpractice suchbranches are
subject tothesame licensing requirements asdomestic banks. Inaddition suchbranches musthave
aminimum capital of20million soms.
(f) Transport services
General There are191,000 kmofroads intheKyrgyz Republic, 88.5percentofwhich arepaved,
giving itthehighest roaddensity inCentral Asia. There are425kmofrailway track. Thisgives the
country araildensity of2.13kmper1000sq.km.There areexternal andinternal airlinks, butthese
havebeendisrupted since late1991 byshortages offuelandspare parts.
Asofthebeginning of1996, there were 616enterprises engaged inoffering transportation
services, ofwhich 409were privately owned. TheGovernment continues toprivatize State-owned
transportation enterprises. However, 113oftheseStateenterprises arenotyetsubject toprivatization.
Theyinclude theState-owned aircarrier, Kyrgyzstan Airlines, theStateenterprises engaged inproviding
railtransportation andallStateenterprises engaged inroadmaintenance. Thetariffapplicable torailWT/ACC/KGZ/3
Page61
transportation services isestablished bytheAnti-monopoly Department intheMinistry ofEconomy.
Intotalthere are529passenger cars, 1200 freight carsandfiveengines.
Although Kyrgyzstan isaland-locked country, marine transportation services areoffered in
thecountry, primarily overLake Issyk-Kul.
In1995,82percentofthetotalvolumeofgoodsand27.2percentofallcargoturnover(ton/km)
carried bytransportation service providers moved byroad transportation carriers. Inaddition,
77percentofallpassengers utilized roadtransportation service providers. Roadtransportation service
providers accounted for61.3percentofallpassenger turnover.
TABLE VI-8
Goods Turnover (inmillions ofton-kilometres)
Method ofTransport 1994 1995
Motor Vehicle 263.5 188.2
Railway 628.9 402.4
Air 64.5 94.4
Internal Marine 9.0 6.2
Total 965.9 691.2
TABLE VI-9
Passenger Turnover (inmillions ofpassenger-kilometres)
Method ofTransport 1994 1995
Motor Vehicle 1,900.5 1,774.4
Railroad 172.4 86.9
Air 606.3 855.5
Electric (trolley-bus) 150.6 175.2
Internal marine -- --
Total 2,829.8 2,892.0
Thebasic laws governing theprovision oftransportation services are: (i)thelawOn
Motor Vehicle Roads of27May1994 (road transportation); (ii)theAirCode of15April 1994 (air
transportation); and(iii)theRailways Charter of11May1976 (railtransportation).
Allpersons andlegalentities offering transportation services tothepublic, including freight
forwarders andpersons orlegal entities offering transportation-related repair ortechnical services
tothetransportation industry orthegeneral public, mustbelicensed bytheTransportation Inspectorate,
adepartment within theMinistry ofTransportation. TheTransportation Inspectorate isalsoresponsible
forcreating andmaintaining theconditions necessary forthenormal functioning ofthetransportation
services market. Itisalsorequired toprotect theinterests oftransportation consumers:
Motor Vehicle Transportation Services Inorder tooffercertain motor vehicle transportation
services, aperson orlegal entity must holdtheappropriate licence. Alicence isrequired forthe
following types ofactivity:WT/ACC/KGZ/3
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- transportation ofgoods;
- transportation ofpassengers;
- transportation/forwarding services; and
- providingtransportation-relatedtechnicalorrepairservicestothetransportationindustry
orthegeneral public.
Allvehicles utilized inthetransportation services industry, including vehicles offoreign
registration, mustberegistered andlicensed ascommercial vehicles. Allsuchlicences mustberenewed
onayearly basis. Inaddition, allcommercial vehicles must comply withthesafety andtechnical
regulations applicable toallsuchvehicles. Suchsafety andtechnical regulations areissued bytheState
Motor Vehicle Inspectorate, adepartment within theMinistry ofInternal Affairs.
Withtheexception ofairtransportation, foreign suppliers oftransportation services mayobtain
anyoftheabove-mentionedlicencesonthesametermsandconditionsasdomesticsuppliers.Inaddition,
withtheexception ofairtransportation, therearenorestrictions onforeign participation inorownership
ofKyrgyz transportation service suppliers.
Finally, bypresidential decree, themayoral administrations ofBishkek andKarakol havebeen
authorized toestablish their ownregulations governing thelicensing andoperation ofintra-city
transportation providers (e.g., buses andtaxicabs).
AirTransportation Services Article 113oftheAirCode specifies thatonlyKyrgyz legalentities
mayoffer domestic airtransportation services; andArticle 113alsoprovides thatnomore than
49percentofaKyrgyz legal entity offering domestic airtransportation services maybeowned by
foreigners.
InadditionArticle 124oftheAirCode establishes ageneral licensing requirement forall
providers ofairtransportation services. Article 124alsorequires the“Statecivilaviation administration
body”toissue suchlicences onatender basis. Article 125authorizes theCabinet ofMinisters to
promulgate regulations governing theissuance ofsuchlicences. Inaddition, Article 126provides that
foreign companies offering international airtransportation services must obtain alicence from the
“Statecivilaviationadministrationbody.”Article126authorizestheCabinetofMinisterstopromulgate
additional regulations specifically governing theissuance oflicences toforeign international aircarriers.
Inissuing suchregulations, theCabinet ofMinisters isrequired byArticle 126totakeintoaccount
theprovisions ofinternational aviation agreements.
ItshouldbenotedthatnospecialStatecivilaviationadministrationbodyhasyetbeenestablished.
Therefore, intheLicensing Decree, thePresident specified thattheMinistry ofTransportation shall
serve astheState body authorized toissue civilaviation licences. Neither theCabinet ofMinisters
northeMinistry ofTransportation haveyetpromulgated anyoftheanticipated regulations onlicensing.
Atthistime, theMinistry ofTransportation hascurrently licenced onlytheState-owned aircarrier
Kyrgyzstan Airlines.
Except fortheabove-mentioned differences, foreign aircarriers receive national treatment.
(g) Construction services
Inboth1994 and1995, theconstruction services industry employed some 77,000 people,
accounting forabout 4.7percentoftotalemployment. Asoftheendof1995, there were 1081
enterprises intheconstruction services industry; ofthese, 186-or17.2percent-wereState-owned
enterprises awaiting privatization. Thevastmajority ofallconstruction service providers wereprivately
owned small enterprises employing less20persons.WT/ACC/KGZ/3
Page63
Themajor lawsandregulations governing thesupplying ofconstruction services are(i)the
lawOnTown Planning of11January 1994; (ii)thelawOnIndividual Housing Construction of
21December 1991; (iii)theregulations oftheState Committee onConstruction entitled OnState
Licensing ofConstruction Activity of8February 1993, asamended on30March 1994 and
28September 1995(theGeneral Regulations onConstruction Licensing); and(iv)theregulations of
theState Committee onConstruction entitled OnState Licensing oftheConstruction Activity of
EnterpriseswithForeignInvestmentof10February1995(theLicensingRegulationsforForeign-Owned
Construction Enterprises). Itshould benoted thaton4March 1996, thePresidential Decree Onthe
Structure andComposition oftheGovernment elevated theState Committee onConstruction tothe
status ofaministry andchanged itsname totheMinistry ofArchitecture andConstruction.
TheGeneral Regulations onConstruction Licensing apply toallKyrgyz andforeign
organizations,cooperatives,enterprises,companiesandotherlegalentitiesengagedincertainenumerated
construction activities. Although physical persons arenotexplicitly mentioned inthelistof“subjects ”
whorequire alicence, inpractice theregulations arealsoapplied tothem. Theannex tothese
regulations contains alistoftheconstruction activities thatrequire alicence. Suchactivities aredivided
intofivebroad categories: (i)construction engineering andrelated services; (ii)construction designing
andrelated services; (iii)theproduction ofconstruction materials andcomponents, (iv)on-site
constructionandrenovationservicesand(v)otherconstruction-relatedservices(includingtestingservices
conductedforthepurposeofcertifyingtheconformityofconstructionmaterialsandbuildingcomponents
withapplicable standards).
Thelicences areissued bytheMinistry ofArchitecture andConstruction. Alicence gives
theconcerned organization orperson theright tocarry outonlytheactivity specifically mentioned
inlicence. Thelicence isgenerally issued foraone-year period andmustberenewed yearly. The
General Regulations onConstruction Licensing contain aprovision requiring theregistration offoreign
construction licences withtheMinistry ofArchitecture andConstruction. Inpractice, thisprovision
hasbeeninterpreted tomean thataforeign construction organization possessing aforeign licence may
belicensed toperform similar services intheKyrgyz Republic upon registration ofthelicence with
andacceptance by,theMinistry ofArchitecture andConstruction; however, suchaforeign licence
willonlybeaccepted ifissued byaforeign country withwhich theKyrgyz Republic hasanapplicable
international agreement.
TheLicensing Regulations forForeign-Owned Construction Enterprises establish aspecial
licensing regime forKyrgyz legalentities having foreign participation. Thelicensing regime contained
inthese regulations isslightly more favourable thanthatcontained intheGeneral Regulations. These
regulations areintended tofurther thegovernment policy ofattracting foreign investment intothe
constructionindustry.Therefore,domesticconstructionlegalentitieshavingforeignparticipationreceive
slightly better treatment thanother domestic orforeign construction organizations. Theregulations
donotspecify anyminimum limitontheamount offoreign ownership thatisnecessary inorder for
aKyrgyz legalentity totakeadvantage ofthese regulations
Note thattheForeign Investment Lawprovides a5-year exemption from theprofits taxfor
aKyrgyz legalentity engaged inconstruction ifithasatleast51percentormore foreign ownership
orifatleast30percentofitscharter fundwascontributed byforeigners.
TheconstructionofdamsandreservoirsislicensedseparatelybytheMinistryofWaterResources
incooperation withtheMinistry ofGeology andMineral Resources.WT/ACC/KGZ/3
Page64
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH THIRD
COUNTRIES
Prefatory Note
Under thenewamendments totheConstitution, which became effective on17February 1996,
theratification byParliament isnowrequired forallinternational agreements (Art. 58(a)) withthe
exception ofinternational financial contracts andinternational credit agreements, which thePresident
hasthepower toratify (Art. 48).
Prior totheadoption ofthenewamendments, alawentitled OntheSigning, Ratification,
Implementation andRenunciation ofInternational Agreements (theLawonInternational Agreements)
divided international agreements intofourclasses (i.e.inter-State, inter-parliament, intergovernmental
andinterdepartmental). Theclassification ofanygiven agreement didnotdepend onitssubject matter
butonlyonthelevelatwhich itwassigned, i.e.onthegovernmental body orofficial which orwho
executed theagreement. Specific procedures weresetforth togovern thenegotiation andexecution
ofeachclass. Furthermore, ifanagreement dealtwithcertain specified subject matter, itwasrequired
toberatified bytheParliament.
Almost allagreements mentioned inthisPartVIIandAnnex 8weresigned priortotheeffective
dateofthenewamendments totheConstitution. Allofthese agreements -except where specifically
otherwise noted -arecurrently inforce, i.e.theywere negotiated, executed and-where required -
ratified byParliament, inaccordance withtheprovisions oftheapplicable law,i.e.theLawon
International Agreements ortheamended Constitution.
Although theLawonInternational Agreements isstillinforce, asignificant number ofits
provisions arenowinconflict withtheConstitution asamended. Those provisions arenolonger being
observed andthelawisbeing revised tobring itintoconformity withtheamended Constitution.
1. Bilateral, Plurilateral andMultilateral Agreements Relating toForeign Trade inGoods
andTrade inServices
(a) Bilateral agreements relating toforeign trade ingoods andtrade inservices (Annex 8A
refers)
TheKyrgyzRepublichassignedsome27bilateralagreementscontainingoneormoresubstantive
provisions directly affecting foreign tradeingoods and/or services (e.g., anMFN provisiona national
treatment provision, afreetradeprovision etc.). Alisting oftheseagreements issetforthinAnnex 8A.
These agreements havebeensigned with21foreign countries (sixofwhich areCIScountries). When
these agreements were signed, theywere classifiable aseither “inter-State ”or“intergovernmental ”
agreementsthe terminology oftheLawonInternational Agreements. Allofthese agreements are
currently inforce andaregenerally concerned withthegranting ofmutually advantageous terms and
conditions fortrade andeconomic cooperation.
Table VII-1 below, which tracks thelistofbilateral agreements enumerated inAnnex 8A,
summarizes themost significant trade provisions oftheKyrgyz Republic ’sbilateral trade-related
agreements. Itshould benoted thattheKyrgyz Republic hasalsosigned other bilateral agreements
concerning economic andbusiness matters (e.g., themutual protection ofinvestments, theavoidance
ofdouble taxation, etc.). While itistruethatsuchagreements generally haveasignificant potential
foraffecting thequantity, quality andtypeofgoods andservices involved intheforeign trade ofthe
Kyrgyz Republic, those agreements havenotbeenincluded inAnnex 8Aorthefollowing tableexcept
where they contain (i)provisions having adirect applicability totheterms under which the
Kyrgyz Republic ’sforeign trade ingoods and/or services isconducted, or(ii)provisions otherwiseWT/ACC/KGZ/3
Page65
ofobvious interest totheWTO (e.g., special intellectual property guarantees). Allofthefollowing
listed agreements areofareciprocal nature.WT/ACC/KGZ/3
Page66TABLE VII-1
Summary oftheMajor Terms ofBilateral Trade-Related Agreements
Country Date MFN and
Exceptions toMFNNational
TreatmentOther Substantive
Trade-Related
Provisions
1.Austria 30Jan.1995 MFN accorded toproducts inrespect ofcustoms duties and
other import/export taxes, aswellasinrespect ofthemethod of
assessing suchduties andtaxes.
Exceptions toforegoing MFN commitment forprivileges,
advantages orexemptions granted byoneparty: (i)to
contiguous countries forthepurpose offacilitating border trade;
(ii)asaresult ofmembership inacustoms union orfreetrade
area; or(iii)todeveloping countries inaccordance with
multilateral agreements towhich theother party isnota
signatory.Notmentioned None
2.Bangladesh 3Mar. 1992 MFN accorded withrespect toimport andexport taxes (e.g.,
duties), other taxes, rules oftaxation order andcustoms
regulations.
Exceptions forprivileges granted: (i)tocontiguous countries
tofacilitate border traffic; (ii)byKyrgyzstan toex-USSR
countries.Notmentioned None
3.Bulgaria 13Nov. 1994 MFN accorded toproducts inrespect of(i)allcustoms duties
andlevies imposed onimports andexports, (ii)themethod of
assessing suchduties andlevies, (iii)themethod ofpaying,
(iv)therules andformalities related toimporting andexporting,
including those related tocustoms clearance, transportation and
reshipment and(v)therules affecting thesale,purchase,
transportation, distributionstorage andusage ofimported
products indomestic market.Notmentioned Parties required toadopt
domestic legislation
establishing duty-free
treatment forthefollowing
goods: (i)trade samples and
information material usedfor
advertisement andtaking
orders, (ii)replacement
articles forgoods thathave
beenreturned,WT/ACC/KGZ/3
Page67Country Date MFN and
Exceptions toMFNNational
TreatmentOther Substantive
Trade-Related
Provisions
Exceptions toforegoing MFN commitment forprivileges or
advantages granted byoneparty: (i)tocontiguous countries to
facilitate border trade; (ii)asaresult ofmembership ina
customs union orfreetrade area; or(iii)tothirdcountries or
developing countries inaccordance withGATT andother
international agreements.(iii)articles tobeusedin
permanent ortemporary
exhibitions andtrade fairs
and(iv)tools andequipment
tobeusedincarrying out
works projects.
4.China 6Jan.1992 MFN accorded toimported andexported goods inrespect of:
(i)allcustoms duties, rules andprocedures and(ii)other taxes.
Exceptions forprivileges oradvantages granted: (i)to
contiguous countries tofacilitate border trade, or(ii)asaresult
ofmembership inacustoms union orfreetrade area.Notmentioned None
5.China 23Oct.1995 Notmentioned Agreement requires the
establishment ofalistof
products which willrequire
acertificate ofquality in
order tobeimported from or
exported toeither country.
6.Cuba 16Jan.1992 MFN accorded inrespect ofsaleofgoods andother forms of
economic relations. Inparticular, MFN treatment accorded to
goods inrespect ofallmatters relating tocustoms rules,
procedures, duties, feesandtaxes, aswellasanyother taxes
which areorcanbeassessed ontheimport, export, transit or
storage ofgoods.
Exceptions forprivileges andbenefits granted: (i)pursuant to
membership inacustoms union, freetrade areaorother form of
economic integration aimed atfacilitating border or
inter-regional trade; (ii)byKyrgyzstan tocountries ofthe
former USSR; (iii)byCuba todeveloping countries.Notmentioned NoneWT/ACC/KGZ/3
Page68Country Date MFN and
Exceptions toMFNNational
TreatmentOther Substantive
Trade-Related
Provisions
7.Czech Rep. 1992 MFN accorded togoods inallcustoms matters.
Exceptions forprivileges oradvantages granted: (i)to
contiguous countries tofacilitate border trade; (ii)asaresult of
membership inacustoms union orfreetrade area; or(iii)by
Kyrgyz Republic toCIScountries.Notmentioned
8.Hungary 7April 1994 MFN accorded togoods inallcustoms matters.
Exceptions forprivileges oradvantages granted: (i)to
contiguous countries tofacilitate border trade; (ii)todeveloping
countries under UNCTAD GSP; (iii)asaresult ofmembership
inacustoms union orfreetrade area; or(iv)pursuant to
previously executed international agreements.Notmentioned Parties required toadopt
domestic legislation
establishing duty-free
treatment forgoods tobe
usedforadvertisement
purposes, replacement
goods, replacement parts
furnished pursuant to
guaranteecapital equipment
andparts forcapital
equipment.
9.India 18Mar. 1992 MFN accorded toallmatters respecting trade andcommercial
cooperation andspecifically tothegranting ofimport andexport
licences.
Exceptions forprivileges granted: (i)tocontiguous countries
tofacilitate border traffic; (ii)todeveloping countries; (iii)as
aresult ofmembership inacustoms union orfreetrade area;
or(iv)multilateral agreements designed toliberalize trade.Notmentioned NoneWT/ACC/KGZ/3
Page69Country Date MFN and
Exceptions toMFNNational
TreatmentOther Substantive
Trade-Related
Provisions
10.Iran 21Oct.1993 No Notmentioned Theparties established two
lists ofgoods (oneof
articles originating inIran
andtheother ofarticles
originating inKyrgyzstan)
theexportation and
importation ofwhich require
theapproval of“competent
bodies ofthecontracting
parties. ”Thelistsare
attached totheProtocol.
11.Iran 21Oct.1993 Notmentioned
12.Malaysia 20July1992 MFN accorded withrespect toallmatters relating tocustoms
duties andforeign trade formalities inconnection with
import/export ofproducts.
Exceptions forprivileges granted: (i)tocontiguous countries
tofacilitate border traffic; (ii)asaresult ofmembership ina
customs union orfreetrade area; (iii)pursuant tomultilateral
agreement aiming ateconomic integration; (iv)pursuant to
barter arrangements.Notmentioned Products usedintrade fairs
exempt from duties. Parties
freetoadopt contrary
measures forbalance of
payments purposes andfor
theprotection of(i)public
health, morals andsecurity,
(ii)plants andanimals and
(iii)national treasures.
Agreement explicitly
provides thatitistobe
construed consistently with
WTO obligations.
13.Mongolia 10July1993 MFN accorded withrespect toallaspects oftrade andeconomic
cooperation, including transit ofgoods andcustoms regulation.
Exceptions forprivileges granted: (i)tocontiguous countries
tofacilitate border traffic; or(ii)asaresult ofmembership in
acustoms union orfreetrade area.Notmentioned NoWT/ACC/KGZ/3
Page70Country Date MFN and
Exceptions toMFNNational
TreatmentOther Substantive
Trade-Related
Provisions
14.Poland 17June1992 MFN accorded withrespect tothetreatment ofimported and
exported goods.
Exceptions forprivileges andadvantages granted: (i)to
contiguous countries tofacilitate border traffic; or(ii)asa
result ofmembership inaregional economic organization,
customs union orfreetrade area.Notmentioned Agreement tobeconstrued
soasnottocontradict
obligations ofeither party
under existing international
agreements.
15.Romania 18Sept. 1992 MFN treatment extended.
Exceptions forprivileges andadvantages granted: (i)toother
countries tofacilitate border orcoastal trade; or(ii)asa
result ofmembership inacustoms union orfreetrade area.Notmentioned Inevaluating quality of
goods, aparty mayapply its
national standards or
international orEuropean
standards.
Parties required toadopt
domestic legislation
establishing duty-free
treatment forgoods (i)tobe
usedfortests, investigations
andexplorations; however,
eachcountry mayestablish
limits onthevalue ofthe
goods thatmaytake
advantage ofthisexemption;
(ii)goods tobeusedfor
advertisement purposes,
provided thatsuchgoods
havebeenprovided freeof
charge (iii)information
materials foradvertisement
ordocumentation purposes;
(iv)replacement goods and
parts furnished pursuant to
guarantee; and(v)articles
imported onatemporary
basis.WT/ACC/KGZ/3
Page71Country Date MFN and
Exceptions toMFNNational
TreatmentOther Substantive
Trade-Related
Provisions
16.Slovak Rep. 17May1995 MFN accorded totrade ingoods “onthebasis ofArticle Iof
GATT. ”
Exceptions toforegoing MFN commitment forprivileges or
advantages granted: (i)tothirdcountries tofacilitate border
traffic; (ii)asaresult offullmembership inacustoms union or
freetrade area.Notmentioned Each party shallfacilitate the
transportation overits
territory ofthegoods ofthe
other party.
17.USA 8May1992 MFN accorded toproducts for(i)allmatters relating tocustoms
rules, procedures andduties, including method ofpayment,
taxes andother internal charges imposed onimported products
and(ii)rules affecting thetransport, distributionstorage andsale
ofimported products ondomestic market.Notmentioned Each party toaccord
(i)products originating from
orexported totheother
non-discriminatory treatment
withrespect toquantitative
restrictions andgranting of
licences and(ii)imports of
bothproducts andservices
from theother
Exceptions toforegoing MFN commitment forprivileges or
advantages granted: (i)tothirdcountries tofacilitate border
traffic; (ii)asaresult offullmembership inacustoms union or
freetrade area; (iii)tothirdcountries inaccordance with
GATT; (iv)todeveloping countries inaccordance withGATT
andother international agreements, (v)market disruption actions
authorized bytheAgreement.non-discriminatory treatment
withrespect toallocation of
currency topayforimports.
Exceptions totheforegoing
thesame asthose to
“customs ”MFN
commitment.
Additional MFN commitment made forproducts withrespect to
technical regulations andstandards, including conformity testing
andcertification.Parties alsoagree nottouse
technical regulations or
standards inadiscriminatory
manner, ortoobstruct
bilateral trade orprotect
domestic industry.
Parties alsoagree toprovide
forandenforce abroad
variety ofintellectual
property rights.WT/ACC/KGZ/3
Page72Country Date MFN and
Exceptions toMFNNational
TreatmentOther Substantive
Trade-Related
Provisions
18.Armenia 4July1994 MFN established forgoods withrespect to(i)domestic taxes
andlevies, (ii)anyspecial restrictions, (iii)transit rules and
(iv)payment rules.National
treatment for
imports with
respect to
(i)taxes or
other levies,
(ii)other
restrictions or
requirements
and(iii)rules
withrespect to
transit, storage,
warehousing
andpayment.Freetrade provisions:
Theparties agree notto
impose import orexport
duties ortaxes orlevies of
equivalent effect ongoods
originating ontheterritory
ofoneparty anddestined for
theterritory oftheother
party.
Ifoneparty normally
imposes anexport tariff or
other export restriction ona
good originating onits
territory andthatgood is
exported totheterritory of
theother party free-by
virtue ofthisfreetrade
agreement -ofsuchexport
tariff orrestriction, theother
party isprohibited from
permitting there-export of
thatgood unless authorized
bytheparty where thegood
originated.WT/ACC/KGZ/3
Page73Country Date MFN and
Exceptions toMFNNational
TreatmentOther Substantive
Trade-Related
Provisions
19.Armenia 4July1994 Ifacertain classofgoods isspecifically regulated bythe
domestic legislation ofoneparty andthatlegislation contains
provision(s) inconflict withtheprevious freetrade agreement
(see19above), thedomestic legislation willprevail andthe
freetrade agreement willnotapply totheconcerned classof
goods foreither party.Notmentioned
Such “withdrawn ”goods willinstead beaccorded onlyMFN
treatment withrespect to(i)allcustoms duties andlevies
imposed onimports andexports, (ii)themethod ofassessing
suchduties andlevies, (iii)therules andformalities related to
importing andexporting, including those related tocustoms
clearance, transportation andreshipment, (iv)taxes andother
levies directly orindirectly connected withtheactofimporting
orexporting suchgoods, (v)therules affecting thesale,
purchase, transportation, distributionstorage andusage of
imported products inthedomestic market and(vi)themethod of
paying forsuchgoods.
Exceptions toforegoing MFN commitment forprivileges or
advantages granted: (i)asaresult ofmembership inacustoms
union orfreetrade area; (ii)todeveloping countries.
20.Kazakstan 22June1995 MFN established forgoods withrespect to(i)domestic taxes
andlevies, (ii)anyother restrictions, (iii)storage, reloading,
warehousing andtransit rules and(iv)payment rules.National
treatment for
imports with
respect to
(i)domestic
taxes and
levies,
(ii)anyother
restrictions or
requirements
andFreetrade provisions:
Theparties agree notto
impose import orexport
duties ortaxes orlevies of
equivalent effect ongoods
originating intheterritory
ofoneparty anddestined for
theterritory oftheother
party.WT/ACC/KGZ/3
Page74Country Date MFN and
Exceptions toMFNNational
TreatmentOther Substantive
Trade-Related
Provisions
(iii)storage,
re-loading,
warehousing
andtransit
rules and
(iv)payment
rules.Ifoneparty normally
imposes anexport tariff or
other export restriction ona
good originating onits
territory andthatgood is
exported totheterritory of
theother party free-by
virtue ofthisfreetrade
agreement -ofsuchexport
tariff orrestriction, theother
party isprohibited from
permitting there-export of
thatgood unless authorized
bytheparty where thegood
originated.
Parties torefrain from
discriminatory measures,
quantitative restrictions and
measures equivalent to
quantitative restrictions.
Parties mayunilaterally
impose reasonable
quantitative restrictions for
strictly limited periods of
time. Such restrictions must
haveanexclusive character
andmayonlybeimposed
(i)forbalance ofpayments
purposes, or(ii)toaddress a
shortage oftheconcerned
article.WT/ACC/KGZ/3
Page75Country Date MFN and
Exceptions toMFNNational
TreatmentOther Substantive
Trade-Related
Provisions
Each party shallpermit the
dutyandtaxfreetransit over
itsterritory ofgoods
originating (i)intheterritory
oftheother party, or(ii)in
athirdcountry anddestined
fortheother party’s
territory. Theparties agree
thattherules affecting such
transit shallbeonanMFN
ornational treatment basis.
21.Kazakstan 22June1995 Theforegoing freetrade agreement (see20above) doesnot
apply tothefollowing items: (i)Kazak-origin goods onwhich
Kazak lawimposes acontract registration or
requirement(ii) goods, theexport orimport ofwhich requires a
licence approved byKazakstan ’sCabinet ofMinisters,
(iii)goods identified asstrategically important under Kazak
legislation(iv) goods subject toanimport licensing requirement
under thelawofKazakstan, (v)goods subject toanexport tariff
orquota under thelawofKyrgyzstan and(vi)goods, theexport
orimport ofwhich requires alicence under thelawof
Kyrgyzstan.Notmentioned No
Theaforementioned goods aresubject toanyapplicable export
tariff inKazakstan.
Theaforementioned goods shallbeaccorded onlyMFN
treatment withrespect to(i)taxes andlevies imposed on
exports, (ii)themethod ofassessing suchtaxes andlevies,
(iii)therules relating tocustoms clearance, transit,
transportationstorage, reloading andsimilar services, (iv)the
methods ofpayment andtransfer ofpayments, (v)thegranting
ofexport licences andcertificates and(vi)therules affecting the
sale,purchase, transportation, distribution andusage onthe
domestic market.WT/ACC/KGZ/3
Page76Country Date MFN and
Exceptions toMFNNational
TreatmentOther Substantive
Trade-Related
Provisions
Exceptions totheforegoing MFN commitment shallinclude
privileges oradvantages granted: (i)asaresult ofmembership
inacustoms union orfreetrade area; (ii)todeveloping
countries, (iii)tocontiguous States inorder tofacilitate border
trade and(iv)bytheparties toeachother incompliance with
special agreements.
22.Latvia 12Oct.1994 MFN accorded toproducts inrespect of(i)allcustoms duties,
taxes andlevies imposed onimports andexports, (ii)themethod
ofassessing suchduties andlevies, (iii)therules relating to
customs clearance, transit, storage, reshipment andother
services (iv)taxes andother levies charged directly or
indirectly, (v)methods ofpaying andtransferring payments and
(vi)therules affecting thesale,purchase, transportation,
distribution andusage ofproducts inthedomestic market.Notmentioned Parties freetoadopt contrary
measures for(i)protection
ofpublic health, order, or
morals, (ii)protection of
intellectual property,
(iii)prevention ofexhaustion
ofnatural resources and
(iv)protection ofdomestic
producers.
Exceptions toforegoing MFN commitment forprivileges or
advantages granted byoneparty: (i)tocontiguous countries to
facilitate border trade; and(ii)asaresult ofmembership ina
customs union orfreetrade area.
23.Moldova 26May1995 No National
treatment for
imports with
respect to
(i)taxes or
other levies,
(ii)other
restrictions or
requirements
and(iii)rules
affecting
transit, storage,
warehousing
andpayment.Freetrade provisions:
Theparties agree notto
impose import orexport
duties ortaxes orlevies of
equivalent effect ongoods
originating ontheterritory
ofoneparty anddestined for
theterritory oftheother
party.WT/ACC/KGZ/3
Page77Country Date MFN and
Exceptions toMFNNational
TreatmentOther Substantive
Trade-Related
Provisions
National
treatment also
forthetransit
ofshipments
ofthirdcountry
origin goods
destined for
territory ofthe
other partyIfoneparty normally
imposes anexport tariff or
other export restriction ona
good originating onits
territory andthatgood is
exported totheterritory of
theother party free-by
virtue ofthisfreetrade
agreement -ofsuchexport
tariff orrestriction, theother
party isprohibited from
permitting there-export of
thatgood unless authorized
bytheparty where thegood
originated.
Each party shallpermit the
dutyandtaxfreetransit over
itsterritory ofgoods
(i)originating intheterritory
oftheother party and(ii)of
goods originating inthird
country butdestined forthe
other party’sterritory.
24.Russia 8Oct.1992 No Notmentioned Each party shallpermit the
dutyandtaxfreetransit over
itsterritory ofthecitizens of
andgoods originating inthe
other party, including goods
moving through apipeline.WT/ACC/KGZ/3
Page78Country Date MFN and
Exceptions toMFNNational
TreatmentOther Substantive
Trade-Related
Provisions
25.Russia 8Oct.1992 MFN established forgoods withrespect to(i)domestic taxes
andlevies, (ii)anyspecial restrictions, (iii)transit rules and
(iv)payment rules.National
treatment for
imports with
respect to
(i)taxes or
other levies,
(ii)other
restrictions or
requirements
and(iii)rules
withrespect to
transit, storage,
warehousing
andpayment.Freetrade provisions:
Theparties agree notto
impose import orexport
duties ortaxes orlevies of
equivalent effect ongoods
originating intheterritory of
oneparty anddestined for
theterritory oftheother
party.
Ifoneparty normally
imposes anexport tariff or
other export restriction ona
good originating inits
territory andthatgood is
exported totheterritory of
theother party free-by
virtue ofthisfreetrade
agreement -ofsuchexport
tariff orrestriction, theother
party isprohibited from
permitting there-export of
thatgood unless authorized
bytheparty where thegood
originated.
26.Russia 12July1994 Theforegoing freetrade agreement (see25above) doesnot
apply tothefollowing items: (i)Kyrgyz-origin goods onwhich
Kyrgyz lawimposes anexport tariff orforwhich Kyrgyz law
requires anexport licence, (ii)Russian-origin goods onwhich
Russian lawimposes anexport tariff orquota, orforwhich
Russian lawrequires anexport licence.NotmentionedWT/ACC/KGZ/3
Page79Country Date MFN and
Exceptions toMFNNational
TreatmentOther Substantive
Trade-Related
Provisions
Such goods willinstead beaccorded onlyMFN treatment with
respect to(i)allcustoms duties andlevies imposed onexports,
(ii)themethod ofassessing suchduties andlevies, (iii)therules
andformalities related toimporting andexporting, including
those related tostoringcustoms clearance, transportation and
reshipment, (iv)taxes andother domestically levies directly or
indirectly connected withtheactofimporting orexporting such
goods, (v)therules affecting thesale,purchase, transportation,
distributionstorage andusage ofimported products inthe
domestic market and(vi)themethod ofpaying forsuchgoods.
Exceptions toforegoing MFN commitment forprivileges or
advantages granted: (i)asaresult ofmembership inacustoms
union orfreetrade area; (ii)todeveloping countries.
27.Ukraine 26May1995 MFN established forgoods withrespect to(i)domestic taxes
andlevies, (ii)anyspecial restrictions, (iii)transit rules and
(iv)payment rules.National
treatment for
imports with
respect to
(i)taxes or
other levies,
(ii)other
restrictions or
requirements
and(iii)rules
withrespect to
transit, storage,
warehousing
andpayment.Freetrade provisions:
Theparties agree notto
impose import orexport
duties ortaxes orlevies of
equivalent effect ongoods
originating ontheterritory
ofoneparty anddestined for
theterritory oftheother
party.WT/ACC/KGZ/3
Page80Country Date MFN and
Exceptions toMFNNational
TreatmentOther Substantive
Trade-Related
Provisions
Ifoneparty normally
imposes anexport tariff or
other export restriction ona
good originating inits
territory andthatgood is
exported totheterritory of
theother party free-by
virtue ofthisfreetrade
agreement -ofsuchexport
tariff orrestriction, theother
party isprohibited from
permitting there-export of
thatgood unless authorized
bytheparty where thegood
originated.
Each party shallpermit duty,
taxandbarrier freetransit
overitsterritory ofgoods
(i)originating intheterritory
oftheother party and(ii)of
goods originating inathird
country anddestined forthe
other party’sterritory.WT/ACC/KGZ/3
Page81Country Date MFN and
Exceptions toMFNNational
TreatmentOther Substantive
Trade-Related
Provisions
Parties freetotake
quantitative orother
protective measures (i)if
made necessary because ofa
shortage, (ii)forbalance of
payments purposes, (iii)to
redress significant
import-caused injury or
threat ofsignificant
import-caused injury to
domestic producers.
Parties alsofreetoadopt
contrary measures intended
fortheprotection of
(i)public health, morals,
order andsecurity, (ii)plants
andanimals (iii)national
treasures and(iv)intellectual
property.WT/ACC/KGZ/3
Page82
(b) Plurilateral agreements relating toforeign trade ingoods andtrade inservices (Annex 8B
refers)
TheGovernmentoftheKyrgyzRepublicassumesthattheuseofthetermPlurilateralAgreements
intheOutline Format foraMemorandum ontheForeign Trade Regime specifically refers tothefour
agreements enumerated inAnnex 4totheMarrakesh Agreement (i.e.theAgreement onTrade inCivil
Aircraft, theAgreement onGovernment Procurement, theInternational Dairy Agreement andthe
International Bovine Agreement). Kyrgyzstan hasexecuted noneofthese agreements.
(c) Multilateral agreements relating toforeign trade ingoods andtrade inservices (Annex 8C
refers)
TheKyrgyz Republic hasexecuted andratified thefollowing twowell-known multilateral
agreements relating directly toforeign trade ingoods andtrade inservices:
- theUnited Nations Convention onAgreements fortheInternational SaleofGoods of
11April 1980 (Ratified byKyrgyzstan on31May1995) and
- theBasel Convention onControl ofTransborder Carriage ofDangerous Wastes and
theirLiquidation of22March 1989 (Ratified byKyrgyzstan on18January 1996).
Because thesetwoagreements arewell-known, thereisnoneedtosummarize theirprovisions
here.
TheKyrgyz Republic hasalsoexecuted anumber ofother multilateral agreements relating
toforeign trade ingoods andtrade inservices. However, these agreements, some ofwhich haveyet
toberatified orotherwise come intoforce, aremore properly classifiable as“economic integration, ”
“customs union ”or“freetrade”agreementsand suchagreements aretherefore described below in
section VII.2.
2. Economic Integration, Customs Union andFreeTrade Agreements
(a) Economic integration agreements (Annex 8Drefers)
TheKyrgyz Republic isasignatory toanumber ofagreements oneconomic integration with
CISmember-countries. Ofthese, themostsignificant trade-related agreements are(i)theAgreement
ontheCreation ofanEconomic Union, executed on24September 1993 (theCISEconomic Union
Agreement), (ii)theAgreement Establishing anInter-State Eurasia Association ofCoalandMetal,
alsoexecutedon24September1993(theCoalandMetalAssociationAgreement)and(iii)theAgreement
ontheCreation ofaCommon Economic Areaamong theKyrgyz Republic, theRepublic ofKazakstan
andtheRepublic ofUzbekistan, executed on30April 1994 (theCentral Asian Economic Area
Agreement).
TheCISEconomic Union Agreement This agreement wasexecuted bynineCIScountries:
AzerbaijanArmenia, BelarusKazakstan, theKyrgyz Republic, Moldova, Russia, Tajikistan and
Uzbekistan. Ukraine signed onasan“Associate Member ”andGeorgia andTurkmenistan didnot
sign. Itcommits thesignatories toundertake avariety ofmeasures intended tofoster theireconomic
integration, including thecreation ofacustoms union, amonetary union, afreetrade areaforgoods
andservices andacommon market forcapital andlabour. Italsocommits thesignatories toformulate
andimplement auniform foreign economic policy. Atthistime, theparties havetaken certain limited
stepstofulfilthecommitments made intheCISEconomic Union Agreement, including (i)theexecution
ofanumber ofagreements andprotocols directed atthecreation oftheenvisioned customs union (see
section 2(b)below), (ii)theexecution ofafreetrade agreement (seesection 2(c)below) and(iii)the
execution ofcertain labour market agreements (seesection 3below).WT/ACC/KGZ/3
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TheCoal andMetal Association Agreement ThisAgreement wassigned byAzerbaijanArmenia,
BelarusGeorgiaKazakstan, theKyrgyz Republic, Moldova, Russia, Tajikistan, Ukraine andUzbekistan.
ThisAgreement provides forthecreation ofacharter-based inter-State association, theEurasian
AssociationofCoalandMetal.Theprimarypurposeoftheassociationistocreatefavourableconditions
fortherational development ofcoalandmetal producing industries, including thepromotion ofthe
rational useofrawmaterials, thecoordination ofscientific-technical andinvestment policies andthe
promotion ofterms ofsupply andterms ofsalethataremutually beneficial totheparties involved in
asale/purchase transaction. ThisAssociation isrequired tofulfil thisprimary purpose inamanner
thattakes intoconsideration theinterest ofallmember countries andinamanner thatprevents unfair
competition andthecreation ofmonopolies.
TheCentral Asian Economic Area Agreement ThisAgreement wasexecuted byKazakstan, the
Kyrgyz Republic andUzbekistan forthepurpose ofdeepening theireconomic integration overthe
years 1994-2000. Itisabasicframework agreement thatgenerally commits thesignatories toundertake
avariety ofmeasures intended tofoster thiseconomic integration, including thecreation ofafreetrade
areaforgoods andservices, acommon market forcapital andlabour andthemutual adoption ofagreed
policies regarding budgetary, accounting, pricing, customs andcurrency matters. TheAgreement
specifically envisions thecancellation ofcustoms duties, thegradual reduction ofotherimport-inhibiting
levies andrestrictions, thesimplification ofcustoms measures, theharmonization ofcustoms legislation,
theunification ofcustoms documentation andtheremoval oftariffs onandnon-tariff barriers tothe
movement ofgoods, passengers andluggage. Theagreement alsospecifically envisions theformulation
ofagreed policies andtheimplementation ofagreed measures intended to(i)promote theestablishment
ofanetwork ofcommercial andfinancial-credit institutions, (ii)promote foreign investment, (iii)create
favourable conditions fortransborder-border cooperation andtransactions among business entities,
(iv)prevent unilateral action restricting market access, (v)promote prices setbymarket forces,
(vi)preventmonopoliesandunfaircompetitionand(vii)promotecommunicationsandthetransportation
ofgoods andpersons.
Inaddition totheaforementioned three agreements, theKyrgyz Republic isasignatory tothe
following seven agreements among various CIScountries, which agreements mayproperly beclassified
aseconomic integration agreements:
- Agreement Among theGovernments ofState-Participants intheCommonwealth ofIndependent
States onCoordinated Principles ofTaxPolicy (Moscow, 13March 1992);
- Agreement onCoordinated Anti-monopoly Policy (Ashgabat, 23December 1993);
- Agreement Within theCISonCooperation intheSphere ofInvestment Activities (Ashgabat,
24December 1993);
- Agreement onAssistance inCreation andDevelopment ofProduction, Commercial,
Credit-Financial,InsuranceandMixedTransnationalEstablishments(Moscow,15April1994);
- Agreement onGoods Turnover andProduction Cooperation intheSphere ofMachinery on
anInter-Related Basis (Moscow, 9December 1994); and
- Agreement onCooperation intheSphere oftheProtection ofCopyright andRelated Rights
(Moscow, 24September 1993).
- Eurasian Patent Convention (Moscow, 9September 1994).WT/ACC/KGZ/3
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(b) Customs Union Agreements (Annex 8Erefers)
On28March 1996, thePresident oftheKyrgyz Republic signed anagreement whereby the
Kyrgyz Republic agreed tojointhecustoms union formed byRussia, Belarus andKazakstan; however,
thecoming intoforce ofthisAgreement iscontingent upon itsratification bytheParliament. The
creationofthiscustomsunionisintendedastheimplementationofthecustomsunionobligationcontained
intheEconomic Union Agreement (seesection 2(a)immediately above).
Ifratified,thisagreementrequirestheKyrgyzRepublictocoordinatetheoperationofitscustoms
service withother member countries. Italsorequires theKyrgyz Republic toreplace itsexisting tariff
schedules withanagreed upon common external tariff. Furthermore, theKyrgyz Republic willbe
required toharmonize itslegislation affecting foreign trade withthatofother member countries. The
Kyrgyz Republic hasalsosigned anumber ofrelated international agreements andprotocols dealing
withspecific measures thattheKyrgyz Republic willberequired totakepursuant toitscustom union
obligations. Finally, theCabinet ofMinisters haspassed anumber ofresolutions andthePresident
hasissued anumber ofdecrees dealing withvarious custom union matters. Allofthese agreements,
protocols, resolutions anddecrees arecontingent uponparliamentary ratification ofthebasic customs
union membership agreement. Itisthepolicy oftheKyrgyz Republic toensure thatitscustoms union
obligations areconsistent withitsability tofulfil itsobligations totheWTO.
(c) FreeTrade Area Agreements (Annex 8Frefers)
TheKyrgyz Republic hassigned anumber ofbilateral freetradeagreements withformer USSR
countries, i.e.withArmenia, Kazakstan, Moldova, theRussian Federation andUkraine. Themost
significant provisions ofthese agreements aresummarized inTable VII-1 above atitems 18-21, 23
and25-27. Inaddition, boththeCISEconomic Union Agreement andtheCentral Asian Economic
Area Agreement (both ofwhich aresummarized insection 2(a)above) contain general provisions
committing eachparty toestablish afreetrade area. Infulfilment ofitscommitment under theCIS
Economic Union Agreement, theKyrgyz Republic isnowaparty totheAgreement ontheCreation
ofaFreeTrade Area (Moscow, 15April 1994), summarized below.
TheCISFreeTrade AreaAgreement ThisAgreement hasbeenexecuted bytheAzerbaijan Republic,
Republic ofArmenia, Republic ofBelarus, Republic ofGeorgia, Republic ofKazakstan, the
Kyrgyz Republic, Republic ofMoldova, Russian Federation, Republic ofTajikistan, Turkmenistan,
Republic ofUzbekistan andUkraine. Under thisCISFreeTrade Agreement, theparties agree not
toimpose import orexport duties, taxes, levies ofequivalent effect, orquantitative restrictions ongoods
originating ontheterritory ofonepartyanddestined fortheterritory oftheotherparty. ThisAgreement
anticipates thattheparties willmutually agree onaprotocol, specifying thosegoods thatwillbeexcluded
fromthisfreetrade regime; however, untilsuchaprotocol isexecuted theparties arefreetospecify
suchgoods onabilateral basis. Therefore, because nosuchprotocol tothisagreement hasyetbeen
executed, theterms ofbilateral agreements (such asthose summarized atitems 18,20and25of
Table VII-1) willapply.
TheAgreement alsocontains prohibitions ontheunauthorized re-export ofcertain goods. That
is,ifoneparty normally imposes anexport tariff orother export restriction onagood originating on
itsterritory andthatgoodisexported totheterritory ofanother party free-byvirtue ofthisagreement
-ofsuchexport tarifforrestriction, thelatter party isprohibited frompermitting there-export ofthat
good unless authorized bytheparty where thegood originated. TheAgreement explicitly requires
suchre-export issues toberegulated incompliance withtheAgreement onRe-Export ofGoods and
theProcedure ofGranting Authorization forRe-export (Moscow, 15April 1994).
TheAgreement further requires eachparty topermit duty, taxandbarrier freetransit over
itsterritory ofgoods (i)originating intheterritory ofanother party, or(ii)originating inathirdcountryWT/ACC/KGZ/3
Page85
anddestined foranother party’sterritory. TheAgreement alsorequires thesignatories toaccord national
treatment forimports withrespect to(i)domestic taxes andlevies ofafiscal character, (ii)other
restrictions orrequirements and(iii)ruleswithrespect totransit, storage, warehousing andpayment.
Under theAgreement, eachParty isfreetotakequantitative orother protective measures (i)if
madenecessarybecauseofashortage,(ii)forbalanceofpaymentspurposes,or(iii)toredresssignificant
import-caused injury orthreat ofsignificant import-caused injury todomestic producers. Eachparty
alsoremains freetoadopt contrary measures intended fortheprotection of(i)public health, morals,
order andsecurity, (ii)plants andanimals (iii)national treasures or(iv)intellectual property.
3. Labour Market Integration Agreements
On15April 1994, theKyrgyz Republic signed anagreement withother CIScountries entitled
AgreementonCooperationintheSphereofLabourMigrationandontheProtectionofWorkerMigratory
Rights. Inorder topursue itsimplementation, anagreement between theMinistry ofLabour andSocial
Security oftheKyrgyz Republic andtheFederal Service ofEmployment ofRussia isunder preparation,
which isintended toestablish aprocedure onthecoordination ofemployment policy. Inaddition,
theCentral Asian Economic AreaAgreement requires theKyrgyz Republic, Kazakstan andUzbekistan
tocreate allnecessary terms andconditions forthefreemovement oflabour.
TheKyrgyzRepublicandMongoliahaveexecutedanAgreementontheMutualHiringofKyrgyz
andMongol Citizens inEconomic Entities andOrganizations (Ulaanbaatar, 10July1993). Alsothere
isanAgreement between theGovernment oftheKyrgyz Republic andtheGovernment oftheRussian
Federation OntheRegulation oftheProcess ofMigration andSocial Protection ofMigrants (Bishkek,
18July1995). TheKyrgyz Republic hasalsoratified theConvention oftheInternational Labour
Organization OnWorkers-Migrants of1939.
4. Multilateral Economic Cooperation, Membership intheMultilateral Organizations,
Trade-related Programmes ofOther Multilateral Organizations
Thefollowing isalistofeachsuch organization andthedateoftheKyrgyz Republic ’s
membership:
1. Asian Development Bank (ADB) 13April 1994
2. Economic andSocial Commission forAsiaandPacific Ocean (UN) 28July1992
3. European Bank forReconstruction andDevelopment (EBRD) 28March 1992
4. U.N. Food andAgricultural Organization (FAO) 6November 1993
5. “INTELSAT ”-International Telecommunication Satellite Organization 23May1994
6. International Bank forReconstruction andDevelopment (World Bank) 28April 1992
7. International Development Association (IDA) 22April 1992
8. International Finance Corporation (IFC) 16September 1992
9. International Fund forAgricultural Development (IFAD) 23July1992
10. International Labour Organization (ILO) 31March 1992WT/ACC/KGZ/3
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11. International Monetary Fund (IMF) 8May1992
12. International Telecommunications Union (ITU) 27March 1993
13. Intersputnik -International Space Communication Organization 20January 1994
14. Islamic Development Bank 3November 1993
15. Multinational Investment Guarantee Agency (MIGA) 21September 1993
16. Organization forEconomic Cooperation andDevelopment 28November 1992
17. United Nations 2March 1992
18. United Nations Development Programme (UNDP) 5March 1993
19. United Nations Industrial Development Organization (UNIDO) 8April 1993
20. Universal Postal Union (UPU) 26January 1993
21. World Health Organization (WHO) 15May1992
22. World Intellectual Property Organization (WIPO) 14February 1994
23. World Tourism Organization (WTO) 4October 1993WT/ACC/KGZ/3
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ANNEX 1
STATISTICS AND PUBLICATIONS
1. Foreign Trade Statistics forGoods andServices: responsible agencies
TheNational Statistics Committee andtheCustoms Committee areresponsible forforeign trade
statisticsforgoodsandservices.ThesystemofforeigntradestatisticsintheNationalStatisticsCommittee
isbased oninternational standards. Atthepresent time, thecompilation ofstatistical dataontheforeign
tradeoftheKyrgyz Republic isbased onquarterly reports provided bytrading enterprises. Inaddition,
theCustoms Committee compiles databased oncustoms declarations forimport andexport transactions
and,inturn, provides thisdataonamonthly basis totheNational Statistics Committee.
2. Publications Related toStatistics
Theremainder ofthisAnnex 1contains 30tables presenting statistical information about
Publications produced bytheNational Statistics Committee oftheKyrgyz Republic include:
- Statistical Yearbook oftheKyrgyz Republic;
- Report OntheSocial andEconomic Development oftheNational Economy;
- theAnnual Statistical Bulletin; and
- theMonthly Statistical Bulletin.
Inaddition, theInstitute ofEconomics under theMinistry ofEconomy publishes aquarterly
report entitled Monitoring theEconomic Situation oftheKyrgyz Republic.
3. Statistical Data
Theremainder ofthisAnnex 1contains 30tables presenting statistical information about the
Kyrgyz Republic. With theexception ofTable 1-14, which wasprepared bytheNational Bank of
theKyrgyz Republic, thesetables wereprepared based oninformation provided bytheNational Statistics
Committee.WT/ACC/KGZ/3
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(a) Main economic indicators
(i) Gross domestic product (GDP)
Table 1-1-GDP atCurrent Prices (inmillions ofcurrent som)22
1993 1994 1995
ByIndustrial Origin:
Agriculture including forestry 2,094 4,611 6,306
Agriculture excluding forestry 2,091 4,601 6,290
Forestry 3 10 16
Industry andconstruction 1,634 2,871 3,455
Industry 1,344 2,462 2,425
Construction 290 409 1,030
Other 1,378 3,798 4,675
Transportation 173 378 -
Maintenance ofroads 13 54 -
Communication 23 115 -
Wholesale trade 28 18 1,469
Retail trade andcatering 322 1,145 -
Material supply 52 36 38
Procurement 13 10 7
Information andcomputing services 2 5 5
Other branches ofmaterial production 71 76 -
Housing 45 121 -
Public utilities andpersonal services 111 289 -
Health care, social security, physical culture and
sports124 324 -
Education 149 555 -
Culture andart 15 41 -
Science andscientific services 11 32 -
Credit 245 572 -
Insurance 9 5 -
General administration anddefence 91 269 -
Private non-profit institutions serving households 4 28 -
Imputed service charge offinancial intermediaries -123 -277 -
Total gross value added (GVA) 5,106 11,279 14,437
Taxes onproduction andimports (TOPI)23449 1,179 -
Taxes onproducts (TOPI) 335 754 -
Other taxes onproduction (OTOP) 111 378 -
Taxes onimports (TOPI) 3 47 -
Subsidies onproduction andimports (SOPI) 89 61 -
Subsidies onproducts (SOP) 89 61 -
Other subsidies onproduction (OSOP) 0 0 -
221995 figures estimated.
23According toSNA-93 (UN-93). Note also:SOPI: Subsidies onProducts andImports.WT/ACC/KGZ/3
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1993 1994 1995
Subsidies onimports (SOI) 0 0 -
GDP atfactor cost(GVA-TOPI+SOPI) 5,106 11,279 -
NetIndirect Taxes (TOPI-SOPI) 249 740 -
Gross Domestic Product atmarket prices 5,355 12,019 15,606
ByExpenditure Category:
Consumption 5,139 11,662 14,033
Private consumption 4,053 9,230 10,507
Government consumption 1,086 2,432 3,526
Gross domestic investment 625 1,083 2,468
Gross fixed investment 715 1,492 3,466
Change instocks -90 -409 -99824
Resource balance (Netexports GNFS) -409 -726 -895
Exports ofgoods andnon-factor services 1,796 4,020 4,110
Imports ofgoods andnon-factor services 2,205 4,746 5,005
-datanotavailable
24Including statistical deviation.WT/ACC/KGZ/3
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Table 1-2-Percentage Distribution ofGDP AtCurrent Prices25
1993 1994 1995
ByIndustrial Origin:
Agriculture including forestry 39.1 38.4 40.4
Agriculture excluding forestry 39.0 38.3 40.3
Forestry 0.1 0.1 0.1
Industry, total 30.5 23.9 22.1
Industry, other 25.1 20.5 15.5
Construction 5.4 3.4 6.6
Other 25.8 31.5 30.0
Transportation 3.3 3.1 -
Maintenance ofroads 0.2 0.5 -
Communication 0.4 1.0 -
Wholesale trade 0.5 0.1 -
Retail trade andcatering 6.0 9.5 -
Material supply 1.0 0.3 -
Procurement 0.2 0.1 -
Information andcomputing services 0.0 0.0 -
Other branches ofmaterial production 1.4 0.6 -
Housing 0.8 1.0 -
Public utilities andpersonal services 2.1 2.4 -
Health care, social security, physical culture
&sports2.3 2.7 -
Education 2.8 4.6 -
Culture andart 0.3 0.3 -
Science andscientific services 0.2 0.3 -
Credit 4.6 4.8 -
Insurance 0.2 0.0 -
General administration anddefense 1.7 2.2 -
Private non-profit institutions serving
households0.1 0.2 -
Imputed service charge offinancial
intermediaries-2.3 -2.3 -
Total gross value added (GVA) 95.4 93.8 92.5
GDP atfactor cost(GVA-TOPI+SOPI) 95.4 93.8 92.5
NetIndirect Taxes 4.6 6.2 7.5
Gross Domestic Product atmarket prices 100.0 100.0 100.0
ByExpenditure Category:
Consumption 96.0 97.0 89.9
Private consumption 75.7 76.8 67.3
Government consumption 20.3 20.2 22.6
Gross domestic investment 11.6 9.0 15.8
251995 figures estimated.WT/ACC/KGZ/3
Page91
1993 1994 1995
Gross fixed investment 13.3 12.4 22.2
Change instocks -1.7 -3.4 -6.4
Resource balance (Netexports GNFS) -7.6 -6.1 -5.7
Exports ofgoods andnon-factor services 33.5 33.4 26.3
Imports ofgoods andnon-factor services 41.11 39.5 32.0
-datanotavailableWT/ACC/KGZ/3
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Table 1-3-GDP atConstant Prices (inmillions of1993 som)26
1993 1994 1995
ByIndustrial Origin:
Agriculture including forestry 2,094 1,914 1,877
Agriculture excluding forestry 2,091 1,910 1,873
Forestry 3 4 4
Industry, total 1,634 1,024 938
Industry, other 1,344 859 636
Construction 290 165 302
Other 1,378 1,142 1,010
Transportation andRoad Maintenance 186 126 -
Communication 23 21 -
Wholesale andretail trade andcatering 350 340 310
Material supply 52 32 24
Procurement 13 5 2
Information andcomputing services 2 1 1
Other branches ofmaterial production 71 59 54
Housing 45 42 -
Public utilities andpersonal services 111 79 -
Health care, social security, physical culture
&sports124 47 -
Education 149 147 -
Culture andart 15 13 -
Science andscientific services 11 9 -
Credit andInsurance 254 245 112
General administration anddefense 91 87 -
Private non-profit institutions serving
households4 4 -
Imputed service charge offinancial
intermediaries-123 -116 -
Total gross value added (GVA) 5,106 4,081 3,825
Gross Domestic Product atfactor
(GVA-TOPI+SOPI)5,106 4,081 3,825
NetIndirect Taxes (TOPI-SOPI) 249 198 186
Gross Domestic Product atmarket prices 5,355 4,279 4,011
ByExpenditure Category: 5,355 4,279 4,011
Consumption 5,139 4,106 3,485
Private consumption 4,053 3,259 2,604
Government consumption 1,086 847 881
Gross domestic investment 625 406 694
Gross fixed investment 715 512 879
Change instocks -90 -106.0 -185
Resource balance (Netexports GNFS) -409 -233 -168
Exports ofgoods andnon-factor services 1,796 1,948 1,442
Imports ofgoods andnon-factor services 2,205 2,182 1,610
-datanotavailable
261995 figures estimated.WT/ACC/KGZ/3
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Table 1-4-GDP Growth Rates atConstant Prices (inpercent)27
1993 1994 1995
ByIndustrial Origin:
Agriculture including forestry - -8.6 -2.0
Agriculture excluding forestry - -8.6 -2.0
Forestry - 2.9 -
Industry, total - -37.3 -10.5
Industry, other - -36.1 -26.0
Construction - -43.0 83.0
Other - -17.1 -11.6
Transportation andRoad Maintenance - -32.1 -
Communication - -5.9 -
Wholesale andretail trade andcatering - -2.9 -8.9
Material supply - -37.9 -26.0
Procurement - -62.4 -54.0
Information andcomputing services - -16.3 -25.0
Other branches ofmaterial production - -17.5 -4.5
Housing - -6.4 -
Public utilities andpersonal services - -28.7 -
Health care, social security, physical culture &
sports- -62.3 -
Education - -1.4 -
Culture andart - -15.8 -
Science andscientific services - -15.0 -
Credit andInsurance - -3.6 -
General administration anddefense - -4.2 -
Private non-profit institutions serving households - -4.3 -
Imputed service charge offinancial
intermediaries- -5.7 -
Total gross value added (GVA) - -20.1 -6.2
Gross Domestic Product atfactor cost - -20.1 -6.2
NetIndirect Taxes - -20.1 -6.2
Gross Domestic Product atmarket prices - -20.1 -6.2
ByExpenditure Category:
Consumption - -20.1 -13.5
Private consumption - -19.6 -18.3
Government consumption - -22.0 4.3
Gross domestic investment - -35.0 65.0
Gross fixed investment - -28.4 67.8
Change instocks - -17.8 75.5
Resource Balance - -43.0 -16.7
Exports ofgoods andnon-factor services - 8.5 -26.0
Imports ofgoods andnon-factor services - -1.0 -24.5
-datanotavailable
271995 figures estimated.WT/ACC/KGZ/3
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(ii) GDP PerCapita
Table 1-5-GDP PerCapita (incurrent prices)
1993 1994 1995
GDP perCapita (Som) 1,195 2,687 3,457
GDP perCapita (US$) 237 248 319
(iii) Budget
Table 1-6-State Budget (inmillions ofcurrent som)
1994 1995
Total revenues 1,896.2 2,813.7
Taxrevenue 1,804.7 2,534.3
Personal income tax 225.2 291.9
Enterprise profit tax 434.6 503.8
Property tax 9.6 18.5
VAT 528.8 752.6
Retail sales tax 52.8 166.7
Excise tax 172.4 283.0
Emergency fund 104.3 139.9
Customs duties (Import) andlevies 42.6 134.1
Land tax 58.2 114.1
Other taxes 176.2 129.7
Non-tax revenue including: 91.1 188.9
Profit transfers from National Bank * 16.0
Government fees * 95.8
Other non-tax revenue * 77.1
Capital transactions 0.4 6.5
Received official transfers * 54.6
Free balance ofbudget funds covering expenses * 29.3
Total expenditures 2,817.7 4,597.5
General public services 196.5 336.3
Defense 105.4 253.3
Public order &safety 205.5 296.6
Education 730.8 1,065.6
Health 418.3 605.5
Social security andwelfare 370.0 762.3
Housing andcommunity services 131.1 121.3
Recreational, culture andreligious activities 73.4 120.9
Energy complex, agriculture, water resources &
forestry79.7 135.1
Mining, manufacturing, mineral resources &
construction47.8 48.7
Transportation andcommunication 65.6 88.5WT/ACC/KGZ/3
Page95
1994 1995
Other economic affairs andservices 8.7 14.4
Other expenditures 384.9 749.0
Budget Deficit 921.5 1,783.8
Domestic Financing: 449.3 923.0
Credit ofNational Bank 316.3 923.0
Profit ofNational Bank 133.0 0.0
External Financing 515.1 860.8
Surplus funds 42.9 0.0
* prior to1995, these classifications didnotexistWT/ACC/KGZ/3
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Table 1-7-State Budget (inpercent oftotal revenues, expenditures andfinancing)
1994 1995
Total revenues 100 100
Taxrevenue 95.2 90.0
Personal income tax 11.9 10.4
Enterprise profit tax 22.9 17.9
Property tax 0.5 0.7
VAT 27.9 26.8
Retail sales tax 2.8 5.9
Excise tax 9.1 10.1
Emergency fund 5.5 4.9
Customs duties (Import) andlevies 2.2 4.7
Land tax 3.1 4.0
Other taxes 9.3 4.6
Non-tax revenue including: 4.8 6.7
Profit transfers from National Bank * 0.6
Government fees * 3.4
Other non-tax revenue * 2.7
Capital transactions 0.02 0.3
Received official transfers * 1.9
Free balance ofbudget funds covering expenses * 1.1
Total expenditures 100 100
General public services 6.9 7.3
Defense 3.8 5.5
Public order &safety 7.4 6.5
Education 25.9 23.2
Health 14.8 13.2
Social security andwelfare 13.2 16.5
Housing andcommunity services 4.6 2.7
Recreational, culture andreligious activities 2.6 2.6
Energy complex, agriculture, water resources &forestry 2.8 2.9
Mining, manufacturing, mineral resources, &construction 1.7 1.1
Transportation andcommunication 2.3 1.9
Other economic affairs andservices 0.4 0.3
Other expenditures 13.6 16.3
Budget Deficit (percent ofrevenues) 48.6 63.4
Budget Deficit (percent ofexpenditures) 32.7 38.8
Financing: 100 100
Domestic 46.6 51.7
Credit ofNational Bank 32.8 51.7
Profit ofNational Bank 13.8 0.0
External 53.4 48.3
* prior to1995, these classifications didnotexistWT/ACC/KGZ/3
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(iv) Production andConsumption ofBasic Goods
Table 1-8(a) -Production ofBasic Goods
Production
1994 1995
Basic Goods
Meat andmeat products, thousands tons 18.0 9.2
Milk andmilk products, thousands tons 14.6 28.4
Eggs, million units 201.6 146.7
Vegetables, thousands tons 265.6 318.4
Bread andbread products, thousands tons 154.0 90.5
Potatoes, thousands tons 310.9 431.6
Sugar, thousands tons 81.6 69.7
Vegetable oil,thousands tons 3.3 2.6
Table 1-8(b) -Consumption ofBasic Goods PerCapita (inkg)
Consumption
1994 1995
Basic Goods
Meat andmeat products 43 38
Milk andmilk products 183 172
Vegetables 52 44
Bread andbread products 134 109
Potatoes 58 82
Sugar 15.1 14.7
Vegetable oil 5.6 5.0
(v) Annual Changes inPrices
Table 1-9-Consumer Price Index forGoods andServices
(percentage change from December ofprevious year toDecember ofcurrent year)
1993 1994 1995
Allgoods andservices 1,466.0 187.2 131.9
Goods 1,065.0 169.0 132.0
Food goods 934.4 172.6 144.9
Non-food goods 1,260.0 172.8 107.2
Alcoholic products 583.2 142.9 123.0
Services 9,276.4 608.7 128.0WT/ACC/KGZ/3
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Table 1-10. Industrial Wholesale Price Index
(percentage change from December ofprevious year toDecember ofcurrent year)
1993 1994 1995
Industry 1,468.1 192.4 132.4
1. Electric power - 291.8 118.1
2. Fuel industry 1,188.7 193.7 99.5
3. Non-ferrous metallurgy 476.6 401.5 88.7
4. Machinery andmetal-processing 918.1 185.3 135.5
5. Forestry, wood-working and
cellulose-paper763.1 255.5 132.2
6. Construction materials 2,345.6 177.1 134.4
7. Light industry 1,897.4 140.4 146.8
8. Food industry
-food-flavouring
-meat
-butter-cheese-making andcreamery985.0
728.5
2,394.2
1,117.8205.4
202.3
127.4
201.5129.3
121.0
121.4
183.8
9. Flour-grinding grain industry 455.3 252.1 144.2WT/ACC/KGZ/3
Page99
(vi) Employment inDifferent Sectors
Table 1-11 -Employment PerSector (inpercent oftotal employed population)
1993 1994 1995
Industry 16.1 14.6 14.6
Electric power 0.7 0.7 0.8
Fuel industry 0.6 0.5 0.4
Non-ferrous metallurgy 0.9 0.8 0.8
Chemical andnon-chemical industry 0.1 0.1 0.1
Machinery andmetal-processing 4.2 2.8 2.6
Wood processing 0.3 0.2 0.1
Construction materials 0.9 0.6 0.5
Glass industry andchina 0.1 0.1 0.1
Light industry 2.9 2.3 2.6
Food industry 1.5 1.2 1.1
Flour-grinding grain 0.2 0.3 0.3
Palaeographic industry 0.1 0.1 0.1
Other 3.6 5.0 5.1
Construction services 5.3 4.7 4.7
Agriculture 38.8 41.6 41.6
Forestry 0.2 0.4 0.4
Transport andCommunications 5.1 5.1 5.2
Trade andpublic catering 5.3 7.7 7.7
Geology, exploration ofnatural resources, geodesy, and
hydrometeorology services 0.4 0.3 0.3
General commercial activity 2.1 0.8 0.8
Health, social insurance, education, culture, art,and
science19.9 18.0 18.0
State andlocal administration 3.8 4.0 4.0
Other 3.0 2.8 2.7WT/ACC/KGZ/3
Page100
(vii) Levels ofEmployment
Table 1-12 -Population andEmployment (inthousands)
1993 1994 1995
Total Population284,462.6 4,483.4 4,545.1
Total Labour Resources292,256.0 2,261.1 2,290.0
Total Employed Population including: 1,680.6 1,645.4 1,641.0
State Sector30885.3 686.0 656.0
Leased Enterprises 22.2 11.8 6.5
Joint-Stock Companies 143.9 150.4 140.0
Economic Associations 2.4 0.4 14.1
Social Organizations 9.4 8.2 8.0
Joint Ventures 2.7 4.0 7.0
Collective Farms 173.2 165.7 37.0
Cooperatives 35.6 24.9 29.7
Individual Labour Activities 26.7 141.0 140.0
Private Subsidiary Agriculture 209.6 201.0 200.0
Private Agriculture 76.8 139.5 305.0
Students 181.6 169.5 165.0
Religious Workers 0.0 1.2 1.3
Able-Bodied Persons NotEmployed inthe
National Economy 393.5 446.2 484.0
Housewives - -
Military - -
Unemployed - 70.6 100.0
-datanotavailable
28AsofDecember 31.
29Includes students andhomemakers.
30State enterprises, bodies andinstitutions.WT/ACC/KGZ/3
Page101
(viii) Balance ofPayments
Table 1-13 -Balance ofPayments (millions ofUS$)
1994 1995
Current account -69.7 -146.9
Trade balance -58.4 -142.7
Export f.o.b. 340.0 408.9
Import c.i.f. 398.3 551.7
Services -26.9 -62.1
Tourism 0.8 -1.1
Transport services 9.5 5.3
Other services -19.6 -44.3
Interest onCredits -17.5 -22.0
Transfers 15.6 57.9
Official 61.6 78.0
Private -46.0 -20.1
Capital account 128.7 233.2
Medium-term &long-term loans 110.2 93.7
Disbursements 110.8 162.4
Amortization (schedule) -0.6 -68.7
Foreign Direct investments 44.9 185.1
Other capital transactions -26.3 -45.6
Errors andomissions -34.9 -158.8
Overall balance 24.1 -72.5WT/ACC/KGZ/3
Page102
(ix) Foreign Exchange
Table 1-14 -Foreign Exchange (rate ofcurrency insom)
US$ CHF DM
Month 1993 1994 1995 1993 1994 1995 1993 1994 1995
1 8.51 10.72 5.81 8.25 4.90 6.95
2 10.19 10.8 6.98 8.51 5.86 7.20
3 11.66 10.85 8.16 9.24 6.90 7.70
4 12.3 10.9 8.55 9.6 7.24 7.91
5 3.9 12.28 10.94 2.75 8.67 9.26 2.48 7.39 7.69
6 4.28 11.37 10.78 2.93 8.22 9.31 2.62 6.98 7.70
7 4.5 10.96 10.55 2.47 8.23 9.14 2.66 6.98 7.60
8 5.65 10.31 10.47 3.76 7.85 8.74 3.32 6.61 7.24
9 6.22 10.60 10.67 4.37 8.17 8.94 3.83 6.83 7.28
10 7.28 10.65 10.92 5.06 8.4 9.55 4.45 6.98 7.74
11 8.01 10.65 10.97 5.37 8.23 9.63 3.73 6.95 7.77
12 8.04 10.61 11.23 5.5 8.02 9.64 4.71 6.77 7.80
Average 5.983110.84 10.82 4.03 7.94 9.15 3.48 6.70 7.55
Source: National Bank oftheKyrgyz Republic
(b) Foreign Trade Statistics
(i) Foreign Trade (aggregates atthetwo-digit HSlevel)
Table 1-15 -Foreign Trade for1995
(value ofimport andexport andpercent oftotal import andexport)
Group name Export
(thous.
US$)Import
(thous.
US$)Share
intotal
export
(%)Share in
total
import
(%)
01 Live animals 751.6 69.9 0.18 0.01
02 Meat andedible meat offal 2,827.3 561.1 0.69 0.11
03 Fishandcrustaceans, mollusc andother aquatic
invertebrates 0 177.3 0 0.03
04 Dairy products; birds'eggs; natural honey 3,347.7 2,253.4 0.82 0.43
05 Products ofanimal origin, notelsewhere specified
orincluded 47.3 0.2 0.01 0
06 Live trees andother plants 6.7 4.2 0 0
07 Edible vegetables andcertain roots andtubers 12,592.3 150.1 3.08 0.03
08 Edible fruitandnuts 10,238.6 424 2.50 0.08
09 Coffee, tea,mate andspices 80.7 864.4 0.02 0.17
10 Cereals 411.8 15,823.9 0.10 3.03
31Inmaking calculations forcalendar year1993, theNational Statistics Committee usesanaverage
annual exchange rateof5.04soms/1 US$, which isintended totakeintoaccount thefirstfourmonths
of1993 before theintroduction ofthesom.WT/ACC/KGZ/3
Page103
Group name Export
(thous.
US$)Import
(thous.
US$)Share
intotal
export
(%)Share in
total
import
(%)
11 Products ofthemilling industry 992 11,076 0.25 2.12
12 Oilseeds andoleaginous fruits 1,316.5 286 0.32 0.05
13 Shellac; gums, resins andother vegetable sapsand
extracts 294 34.2 0.07 0.01
14 Vegetable plaiting materials 1,356.1 255 0.33 0.05
15 Animal orvegetable fatsandoils 841.2 6,012.2 0.21 1.15
16 Preparations ofmeat, offishorofcrustaceans,
mollusc 2,392.7 179.4 0.59 0.03
17 Sugars andsugar confectionery 21,224.8 36,384.6 5.19 6.96
18 Cocoa andcocoa preparations 606.6 3,761.8 0.15 0.72
19 Products from cereal, flour, starch ormilk; pastry
products 1,170.8 1,823.7 0.29 0.35
20 Processed products made from vegetables, fruit,
nutsorother parts ofplants 1,666.8 591.7 0.41 0.11
21 Miscellaneous edible preparations 401.9 2,428.3 0.10 0.46
22 Beverages, spirits andvinegar 33,627.1 14,133.8 8.22 2.71
23 Residues andwaste from thefood industries 733.1 27.1 0.18 0.01
24 Tobacco andmanufactured tobacco substitutes 22,624.2 959.2 5.53 0.18
25 Salt; sulphur; earths andstone 2,555.9 5,102.4 0.63 0.98
26 Ores, slagandash 126.4 2513.7 0.03 0.48
27 Mineral fuels, mineral oilsandproducts 45,583.2 187,881.2 11.15 35.97
28 Inorganic chemicals 20,356.9 6,203.6 4.98 1.19
29 Organic chemicals 10.9 1,534.9 0 0.29
30 Pharmaceutical products 2,563.2 8,849.1 0.63 1.7
31 Fertilizers 1,056.1 3,744.6 0.26 0.72
32 Tanning ordyeing extracts 255.6 2,697.3 0.06 0.52
33 Essential oilsandresinoids; perfumery, cosmetic or
toilet preparations 208.1 1,171.3 0.05 0.22
34 Soap, organic surface-active agents 181.5 3,303.5 0.04 0.63
35 Albuminoidal substances 157.6 219.2 0.04 0.04
36 Explosives; pyrotechnic products 14.6 2,046.4 0 0.39
37 Photographic orcinematographic goods 187.3 515.1 0.05 0.1
38 Miscellaneous chemical products 30.4 580.9 0.01 0.11
39 Plastics andarticles thereof 780.7 3,212.6 0.19 0.62
40 Rubber andarticles thereof 1,252.8 4,769.4 0.31 0.92
41 Raw hides andskins andleather 4,631.7 556.9 1.13 0.11
42 Articles ofleather 426.4 125.4 0.11 0.02
43 Furskins andartificial fur 436.2 126.8 0.11 0.02
44 Wood andarticles ofwood 566.9 5,541.7 0.14 1.06
45 Cork andarticles ofcork 0 1.2 0 0
46 Manufactures ofstraw 0 0 0 0
47 Paper products made from wood pulporother
fibrous cellulosic material 35.9 0.9 0.01 0WT/ACC/KGZ/3
Page104
Group name Export
(thous.
US$)Import
(thous.
US$)Share
intotal
export
(%)Share in
total
import
(%)
48 Paper andpaperboard 287.3 5,427.5 0.07 1.04
49 Printed books, newspapers, pictures andother
products oftheprinting industry 389 930.9 0.1 0.18
50 Silk 2,562.1 1,224 0.63 0.23
51 Wool, fineandcoarse animal hair 26,695.6 2,181.1 6.53 0.42
52 Cotton 33,109.2 7,973.7 8.10 1.53
53 Other vegetable textile fibber 334.9 119 0.08 0.02
54 Man-made filaments 205.6 1,765.6 0.05 0.34
55 Man-made staple fibbers 56.3 1,892.2 0.01 0.36
56 Wadding, feltandnon-woven materials 1,441.6 434.1 0.36 0.08
57 Carpets andother textile floor-coverings 3,225.2 195.1 0.8 0.04
58 Special woven fabrics 137.8 410.3 0.03 0.08
59 Impregnated, coated, covered orlaminated textile
fabrics 2,481.3 1,635.3 0.61 0.31
60 Knitted orcrocheted fabrics 16.1 24.9 0 0
61 Articles ofapparel andclothing accessories, knitted
orcrocheted 2,783.8 2,183.9 0.68 0.42
62 Articles ofapparel andclothing accessories, not
knitted orcrocheted 4,507.7 1,955.3 1.10 0.37
63 Other finished textile articles 1,230.6 1,605.4 0.30 0.31
64 Footwear, gaiters andthelike 1,558.2 2,668.9 0.38 0.51
65 Headwear andparts thereof 50.3 6.8 0.01 0
66 Umbrellas andparts thereof 0 16.7 0 0
67 Prepared feathers anddown 3.2 0 0 0
68 Articles ofstone, plaster, cement 3,753.7 2,926.1 0.92 0.56
69 Ceramic products 304.8 1,295.2 0.07 0.25
70 Glass andglassware 5,119.7 1,221.3 1.25 0.23
71 Natural orcultured pearls, precious stones, precious
metals 176.8 457 0.04 0.09
72 Ironandsteel 9,438.6 13,063.7 2.31 2.50
73 Articles ofironorsteel 2,621.3 8,185.5 0.65 1.57
74 Copper andarticles thereof 20,113.4 9,172 4.92 1.76
75 Nickel andarticles thereof 0 66.1 0 0.01
76 Aluminum andarticles thereof 5,063.2 2,111.4 1.24 0.41
77 Group reserved forfuture use 0 0 0 0
78 Lead andarticles thereof 0.2 64 0 0.01
79 Zinc andarticles thereof 21.6 419.6 0.01 0.08
80 Tinandarticles thereof 454.1 141.1 0.11 0.03
81 Other basemetals 28,874.3 1,016.7 7.06 0.2
82 Tools, implements, cutlery, spoons, forks ofbase
metal 2,063.5 1,371.7 0.50 0.26
83 Miscellaneous articles ofbasemetal 347.8 611.4 0.09 0.12WT/ACC/KGZ/3
Page105
Group name Export
(thous.
US$)Import
(thous.
US$)Share
intotal
export
(%)Share in
total
import
(%)
84 Nuclear reactors, boilers, machinery and
mechanical appliances 12,213.0 49,101 2.99 9.40
85 Electrical machinery andequipment 17,842.3 14,320 4.36 2.74
86 Railway ortramway locomotives, rolling-stock and
parts thereof 335.2 1,565.1 0.08 0.3
87 Vehicles andparts 6,992.4 28,401.4 1.71 5.44
88 Aircraft, spacecraft andparts thereof 134.6 88.1 0.03 0.02
89 Ships, boats andfloating structures 0 1 0 0
90 Optical, photographic instruments, etc. 1218 4,020.6 0.3 0.77
91 Clocks andwatches andparts thereof 82.2 191.1 0.02 0.04
92 Musical instruments 0 3.9 0 0
94 Furniture; bedding andthelike 1,095.9 9,060.8 0.27 1.73
95 Toys, games andsporting goods 471.8 222.4 0.11 0.04
93,
96Miscellaneous manufactured articles 8,154.1 1,606.4 2.08 0.24
97 Works ofart,collectors ’pieces andarticles 0 0 0 0
Total (without services) 408,938.4 522,334.9 100 100WT/ACC/KGZ/3
Page106
(ii) Export Statistics
Table 1-16(a) -Exports (incurrent prices -millions ofUS$)32
1992 1993 1994 1995 first
quarter of
1996
Total Exports 317.0 360.2 340.1 408.9 87.8
FSU 240.5 248.1 223.0 269.2 65.9
Kazakstan 53.8 71.9 95.2 66.8 14.2
Russia 94.0 113.6 58.5 104.8 23.3
Turkmenistan 5.9 7.2 7.4 2.2 1.1
Ukraine 41.6 14.1 9.1 8.3 3.4
Uzbekistan 24.9 23.8 43.6 70.0 19.2
Other FSU 20.3 17.5 9.2 17.1 4.7
Non-FSU 76.5 112.1 117.1 139.7 21.9
China 28.0 59.2 56.1 68.5 4.7
Germany 5.9 5.4 6.6 2.1 0.6
Turkey 1.8 2.6 3.9 3.2 0.5
United Kingdom 11.6 30.0 29.5 27.4 1.4
USA - 0.0 0.6 4.0 3.8
Other Non-FSU 29.2 14.9 20.4 34.5 15.6
Table 1-16(b) -Exports (inpercent)
1992 1993 1994 1995 first
quarter of
1996
Total Exports 100.00 100.00 100.00 100.00 100.00
FSU 75.87 68.88 65.57 65.84 75.06
Kazakstan 16.97 19.96 27.99 16.34 16.17
Russia 29.65 31.54 17.20 25.63 26.54
Turkmenistan 1.86 2.00 2.18 0.54 1.25
Ukraine 13.12 3.91 2.68 2.03 3.87
Uzbekistan 7.85 6.61 12.82 17.12 21.87
Other FSU 6.40 4.86 2.71 4.18 5.35
Non-FSU 24.13 31.12 34.43 34.16 24.94
China 8.83 16.44 16.50 16.75 5.35
Germany 1.86 1.50 1.94 0.51 0.68
Turkey 0.57 0.72 1.15 0.78 0.57
United Kingdom 3.66 8.33 8.67 6.70 1.59
USA - 0.00 0.18 0.98 4.33
Other Non-FSU 9.21 4.14 6.00 8.44 17.77
32Notincluding unorganized trade.WT/ACC/KGZ/3
Page107
Table 1-17 -Main Export Items andDestination Countries, 1995
(inthousands ofUS$)
Countries Ferrous
metalsChemical
elementsMercury Antimony Electric
powerElectric
lampsWool Cotton Sugar
Canada 1,407.3
China 4,330 453.3 18,026.7 10,144.5
Great Britain 8,090.6 18,878.5
Kazakstan 2,003.5 107 13,768.9 1,181 32.4 37.2 389.3
Russia 11.4 43.5 4,510.1 4,307.7 215.7 576.2 809.1
Tadjikistan 10.8 209.6 1,666.2 176 103.2
Turkey 5.9 135.3 1,128.7
Turkmenistan 58.6
Ukraine 368.5 89.7 313.3
Uzbekistan 243.8 88.6 25,532.7 1,255.5 1.4 15.9 12,099
Table 1-18 -Main Export Partners
Country Ranking Exports (million US$) %ofTotal Exports
1995 1994 1994 1995 1994 1995
Russia 2 58.5 104.8 28.1 25.6
Uzbekistan 4 43.9 70 12.9 17.1
China 3 56.1 68.5 16.4 16.8
Kazakstan 1 95.9 66.8 17.1 16.3
Great Britain 5 29.5 27.4 8.6 6.7
Ukraine 6 9.1 8.3 2.7 2
Tadjikistan 10 3 8.3 0.9 2
Turkey 9 3.9 3.2 1.2 0.8
Turkmenistan 7 7.4 2.2 2.2 0.5
Canada 8 4 1.4 1.1 0.3
Exports toMain Partners 311.3 360.9 91.2 88.3
Total exports 340.1 408.9 100 100WT/ACC/KGZ/3
Page108
(iii) Import Statistics
Table 1-19(a) -Imports (incurrent prices -millions ofUS$)33
1992 1993 1994 1995 first
quarter of
1996
Total Imports 420.7 447.8 317.0 522.4 180.7
FSU 350.2 335.8 209.5 353.6 128.8
Kazakstan 81.4 97.1 58.3 112.5 32.0
Russia 171.7 158.3 69.3 114.3 45.4
Turkmenistan 21.3 8.8 10.4 18.6 4.0
Ukraine 28.5 6.8 3.2 4.9 4.0
Uzbekistan 31.9 58.2 63.7 88.9 40.6
Other FSU 15.4 6.6 15.0 14.4 2.8
Non-FSU 70.5 112.0 107.5 168.8 51.9
China 16.3 18.6 10.6 6.3 2.4
Germany 6.3 3.0 6.8 18.7 4.8
Turkey 3.4 8.8 15.0 38.3 7.5
United Kingdom 3.2 0.8 1.0 1.7 0.3
USA 23.2 54.6 35.0 19.1 4.2
Other Non-FSU 18.1 26.2 39.1 84.7 32.7
Table 1-19(b) -Imports (inpercent)
1992 1993 1994 1995 first
quarter of
1996
Total Imports 100.00 100.00 100.00 100.00 100.00
FSU 83.24 74.99 66.09 67.69 71.28
Kazakstan 19.35 21.68 18.39 21.54 17.71
Russia 40.81 35.35 21.86 21.88 25.12
Turkmenistan 5.06 1.97 3.28 3.56 2.21
Ukraine 6.77 1.52 1.01 0.94 2.21
Uzbekistan 7.58 13.00 20.09 17.02 22.47
Other FSU 3.66 1.47 4.73 2.76 1.55
Non-FSU 16.76 25.01 33.91 32.31 28.72
China 3.87 4.15 3.34 1.21 1.33
Germany 1.50 0.67 2.15 3.58 2.66
Turkey 0.81 1.97 4.73 7.33 4.15
United Kingdom 0.76 0.18 0.32 0.33 0.17
USA 5.51 12.19 11.04 3.66 2.32
Other Non-FSU 4.30 5.85 12.33 16.21 18.10
33Notincluding unorganized trade.WT/ACC/KGZ/3
Page109
Table 1-20 -Main Import Items andCountries ofSupply, 1995
(inthousands ofUS$)
Country Wheat Wheat
flourRaw
sugarPetrol Gas Ferrous
metalsCopper Equipment Ground
vehicle
China 9.9 431.6 45.0 101.4
Cuba 22,748.2
Germany 47.2 0.1 3,374.7 4,654.2
Japan 5,551.1 93.3
Kazakstan 1,250.4 339.9 34,652.5 7,870.8 6,058.3 885 1,624.8
Russia 168.8 15 15,002.5 4,155.2 1,899.5 15,329.8 9,664.9
Turkey 13.3 59.4 196.0 15,132.3 4,843.6
Turkmenistan 14.8 25.2
USA 11173.4 584 246.6
Uzbekistan 23.8 7.5 1,499.8 55,511 808.2 149.1 412.1 434.0
Table 1-21 -Main Import Partners
Country Ranking Imports (million US$) %ofTotal Imports
1995 1994 1994 1995 1994 1995
Russia 1 69.3 114.3 21.9 21.9
Kazakstan 3 58.3 112.5 20.1 21.5
Uzbekistan 2 63.7 89 18.4 17
Turkey 6 15 38.3 4.7 7.3
Cuba 4 11.6 22.7 3.7 4.3
USA 5 35 19.1 11 3.7
Germany 10 6.8 18.7 2.1 3.6
Turkmenistan 8 10.4 18.6 3.3 3.6
Japan 7 2.7 7.2 0.9 1.4
China 9 10.6 6.3 3.3 1.2
Imports from Main Partners 283.5 446.7 89.4 85.5
Total imports 317.0 522.3 100 100WT/ACC/KGZ/3
Page110
(iv) Imports From Main Suppliers
Table 1-22 -Main Imports from Russia in1995
HS Value in
thousand US$Share inImport
(%)
11 Products ofmilling industry 288.8 0.3
15 Animal orvegetable fatsandoils 768.0 0.7
17 Sugar andsugar confectionery 6,625.7 5.8
27 Mineral fuels, mineral oilsandproducts 22,019 19.3
28 Inorganic chemicals 3,118.3 2.7
31 Fertilizers 710.3 0.6
32 Tanning ordyeing extracts 1,602.8 1.4
39 Plastics andarticles thereof 1,973.9 1.7
40 Rubber andarticles thereof 4,147.6 3.6
44 Wood andarticles ofwood 4,886.9 4.3
48 Paper andpaperboard 3,947 3.5
72 Ironandsteel 4,155.2 3.6
74 Copper andarticles thereof 1,899.5 1.7
84 Nuclear reactors, boilers, machinery andequipment 15,329.8 134
85 Electrical machinery andequipment 4,111.8 3.6
87 Vehicles andparts 9,664.9 8.5
Other 27,102.4 25.3
Table 1-23 -Main Imports from Kazakstan in1995
HS Value in
thousand US$Share inImport
(%)
10 Cereals 2,918.4 2.6
22 Beverages, spirits andvinegar 1,505.5 1.3
25 Salt; sulphur; earths andstone 3,297.8 2.9
26 Ores, slagandash 1,295.9 1.2
27 Mineral fuels, mineral oilsandproducts 72,543.8 64.5
28 Inorganic chemicals 1,283.8 1.1
72 Ironandsteel 7,870.8 7.0
73 Articles ofironorsteel 990 0.9
74 Copper andarticles thereof 6,058.3 5.4
82 Tools, implements, cutlery, spoons, forks ofbase
metal1,237.6 1.1
85 Electrical machinery andequipment 1,601 1.4
87 Vehicles andparts 1,624.8 1.4
Other 10,301.4 9.2WT/ACC/KGZ/3
Page111
Table 1-24 -Main Imports from Uzbekistan in1995
HS Value inthousand
US$Share inImport
(%)
18 Cocoa andcocoa preparations 1,064.7 1.2
25 Salt; sulphur; earths andstone 924.6 1.0
27 Mineral fuels, mineral oilsandproducts 70,145.3 78.8
28 Inorganic chemicals 323.6 0.4
31 Fertilizers 2,290.4 2.6
49 Printed books, newspapers, pictures andother
products oftheprinting industry110.9 0.1
52 Cotton 4,676.1 5.3
72 Ironandsteel 808.2 0.9
Other 8,656.2 9.7
Table 1-25 -Main Imports from theUnited States ofAmerica in1995
HS Value inthousand
US$Share inImport
(%)
10 Cereals 12,827.9 67.22
15 Animal orvegetable fatsandoils 1,380.1 7.2
22 Beverages, spirits andvinegar 802.2 4.2
Other 4,071.6 21.4
Table 1-26 -Main Imports from Turkey in1995
HS Value inthousand
US$Share inImport
(%)
15 Animal orvegetable fatsandoils 1,899.6 3.6
18 Cocoa andcocoa preparations 1,207.3 3.1
19 Products made from cereal, flour, starch ormilk pastry
products 1,238.5 3.2
22 Beverages, spirits andvinegar 1,982.1 2.1
73 Articles ofironorsteel 2,476.4 6.5
84 Nuclear reactor, boilers, machinery andequipment
15,132.3 39.5
85 Electrical machinery andequipment 2,402.6 6.3
87 Vehicles andparts 4,843.6 12.6
94 Furniture; bedding andthelike 1,258.2 3.3
Other 7,592.4 19.8WT/ACC/KGZ/3
Page112
(v) Trade byGeographic Areas (main trade partners)
Table 1-27 -Trade byRegion in1995 (inthousands ofUS$)
Turnover Share Export Import
Europe 98,847.77 10.61 47,248.17 51,599.60
United Kingdom 29,041.34 3.12 27,370.04 1,671.3
Germany 20,771.01 2.23 2,067.22 18,703.79
European Union 7,995.00 0.85 0.00 7,995.0
Bulgaria 5,865.51 0.63 2,852.88 3,012.63
France 5,458.35 0.59 3,633.25 1,825.10
Italy 4,622.27 0.50 2,925.01 1,697.26
Belgium 3,743.32 0.40 217.25 3,526.07
Poland 3,263.47 0.35 1,343.17 1,920.3
Austria 3,043.60 0.33 1,718.77 1,324.83
Switzerland 2,941.88 0.32 1,766.23 1,175.65
Netherlands 2,366.97 0.25 860.5 1506.47
Denmark 1,866.19 0.20 1.70 1,864.49
Norway 1,682.5 0.18 0.00 1,682.5
Czech Republic 1,452.72 0.16 1,176.71 276.01
Finland 1,364.62 0.15 49.45 1,315.17
Hungary 1,185.31 0.13 177.00 1,008.31
Slovakia 1,064.68 0.11 840.38 224.30
Luxembourg 303.9 0.03 0.00 303.9
Romania 216.93 0.02 155.15 61.78
Greece 202.92 0.02 14.43 188.49
Slovenia 127.56 0.01 0.00 127.56
Sweden 86.10 0.01 0.00 86.10
Ireland 83.89 0.01 0.00 83.89
Macedonia 79.03 0.01 79.03 0.00
Croatia 18.70 0.01 0.00 18.70
Asia (without former Soviet Union) 150,198.19 16.13 84,270.80 65,927.39
China 74,723.00 8.02 68,462.74 6,260.30
Turkey 41,552.89 4.46 3,219.32 38,333.57
Japan 7,745.34 0.83 569.05 7,176.29
Iran 6,456.11 0.69 4,142.97 2,313.14
Afghanistan 6,024.41 0.65 2,998.02 3,026.40
Pakistan 3,564.58 0.38 605.06 2,959.52
South Korea 3,316.81 0.36 808.46 2,508.35
Cyprus 1,891.06 0.20 1,418.44 472.62
Korea (DPRK) 1,296.83 0.14 514.36 782.47
India 1,071.15 0.11 520.82 550.32
Mongolia 891.16 0.10 891.16 0.00
United Arab Emirates 740.99 0.07 79.82 661.17
Israel 643.17 0.07 16.30 626.87
Malaysia 127.58 0.01 0.00 127.58WT/ACC/KGZ/3
Page113
Turnover Share Export Import
Singapore 122.09 0.01 0.00 122.09
Saudi Arabia 24.28 0.00 24.28 0.00
Syria 5.00 0.00 0.00 5.00
Lebanon 1.65 0.00 0.00 1.65
America 53,132.88 5.71 5,418.02 47,714.86
United States 23,091.19 2.48 4,009.44 19,081.75
Cuba 22,748.24 2.44 0.00 22,748.24
Canada 7,293.45 0.78 1,408.58 5,884.87
Australia 1.19 0.00 1.19 0.00
Baltic countries 6,271.85 0.67 2,769.79 3,502.06
Latvia 3,767.51 0.40 2,254.75 1,512.76
Lithuania 2,170.01 0.23 427.71 1,742.3
Estonia 334.33 0.04 87.33 247
CIScountries 622,821.46 66.88 269,230.50 353,590.97
Russia 219,121.86 23.53 104,774.95 114,346.92
Kazakstan 179,342.67 19.26 66,813.59 112,529.08
Uzbekistan 158,870.19 17.05 69,963.30 88,906.89
Turkmenistan 20,781.36 2.23 2,199.54 18,581.82
Ukraine 13,283.43 1.43 8,343.06 4,940.37
Tajikistan 13,086.38 1.41 8,262.16 4,824.22
Belarus 10,068.46 1.08 5,034.47 5,033.99
Azerbaijan 5,397.00 0.58 2,133.56 3,263.44
Moldova 1,211.93 0.13 978.42 233.51
Georgia 1,018.94 0.11 689.29 329.65
Armenia 639.24 0.07 38.16 601.08
Table 1-28 -Main Trade Partners
Country Ranking Trade turnover (million US$) %oftotal trade turnover
1995 1994 1994 1995 1994 1995
1Russia 2 127.90 219.12 19.43 23.53
2Kazakstan 1 154.20 179.34 23.43 19.26
3Uzbekistan 3 107.60 158.81 16.35 17.05
4China 4 66.76 74.72 10.14 8.02
5Turkey 7 18.94 41.55 2.88 4.46
6United Kingdom 5 30.50 29.04 4.63 3.12
7United States 6 35.50 23.09 5.39 2.48
8Cuba 10 11.60 22.75 1.76 2.44
9Turkmenistan 8 17.80 20.78 2.70 2.23
10Germany 9 13.50 20.77 2.05 2.23
Trade Turnover withMain Partners 584.30 790.03 88.76 84.82
Total Trade Turnover 658.10 931.27 100 100WT/ACC/KGZ/3
Page114
(c) Government Procurement Statistics
Table 1-29 -Allocation Stipulated inState Budget for1995 (inthousands ofsoms)
Grand Total isapproximately 438 Million Som.
Purchase ofequipment, appliances andmaterials 125,526.0
I. General State services, including: 34,629.1
1. Executive andlegislative bodies: 16,385.0
Parliament (financial economic management) 850.0
Other expenditures ofthePresident ’sAdministration 2,182.0
Ministry ofJustice 15.0
International institute ofstrategic research atthePresident 194.0
Management offices 13,144.0
2. Financial andtax-budget activity: 5,566.3
Departmental enterprises andeconomic organizations 4.0
Management office 5,562.3
3. Foreign political activity (Management offices): 2,828.5
Ministry offoreign affairs 289.5
Diplomatic andother institutions inCIScountries 809.0
Diplomatic andother institutions inother countries 1,730.0
4. Fundamental scientific research: 679.0
National Academy ofSciences 657.0
Archives agencies 22.0
5. General planning, statistic data: 546.9
Working outofstatistic data 123.5
Enterprises andeconomic organizations within thejurisdiction 23.0
Management offices 400.4
6. Other general State services: 8,623.4
Ministry ofNature Protection 622.3
Central Electoral Commission 6,744.5
Fund ofState material reserves 30.6
Management Office 1,226.0
II. Defence 9,819.5
III. Social order andsecurity: 22,591.9
1. Judicial bodies: 1,473.9
Constitutional Court Office 218.9
Oblast andcitycourt offices 8.6
People ’sCourts 34.6
Notarial offices 13.0
Procuracy Office 86.4
Oblast, cityandregion procuracies 112.4
Office ofcourt’sadministration 1,000.0
IV. Education: 4,712.0
1. Education 4,394.0WT/ACC/KGZ/3
Page115
2. Office ofHead management onscience andnewtechnology
under theMinistry ofEducation andSciences30.0
3. Scientific -Research institutes andlaboratories 288.0
V. Health: 6,656.2
Health 6,454.2
Ministry ofHealth Office andlocal health departments 87.0
Applied research andexperimental working outs 115.0
VI. Social insurance andsocial security 443.0
VII. Housing-municipal economy 110.0
VIII. Organization ofrestandcultural-religious activity: 1,062.4
1. Physical culture 471.0
2. Culture 240.4
3. Television andbroadcasting 331.0
4. Religious andother social activity 20.0
IX. Fuel-energetic complex 0
X. Agriculture, water resources, fishing andhunting: 12,127.9
1. Agriculture 2,286.6
2. Water resources: 9,836.0
3. Fishing andhunting 5.3
XI. Mining industry andmineral resources except forfuel,
manufacturing industry, construction: 610.0
1. Ministry ofGeology andmineral resources office 10.0
2. Construction 600.0
XII. Transport andcommunication: 50.0
1. Communication 50.0
XIII. Other services related toeconomic activity: 914.0
1. State inspection onstandardization andmetrology 8.0
2. State institutions under theMinistry ofGeology and
Mineral Resources 320.0
3. State agency onhydro -meteorology 586.0
XIV. Expenditures notreferred tobasic groups
1. National commission onUNESCO affairs 0
Purchase ofpharmaceuticals anddressing materials 25,262.4
I. Office ofState commission ondrugs 1.7
II. Office ofState Customs Inspection 6.0
III. Defence 535.0
IV. Social order andsecurity 764.0
V. Education 72.0
VI. Health 23,704.1
VII. Social security 176.6
VIII. Housing-municipal economy 3.0
Food 154,541.9
I. General State services: 353.9
Ministry ofJustice (science) 12.0WT/ACC/KGZ/3
Page116
State taxinspection office 226.6
Ministry ofEconomy 101.5
Office ofState commission ondrugs 9.8
Archives agencies 4.0
II. Defence 45,043.0
III. Social order andsecurity 51,090.0
IV. Education attheexpense ofpaidservices andother special means 36,051.3
V. Health attheexpense ofpaidservices andother special means 18,639.6
VI. Housing municipal economy 120.0
VII. Physical culture 1,160.0
VIII. Social security 1,538.1
IX. Agriculture 330.0
X. Geological exploratory works 216.0
Major repairs 165,109.6
I. General State services 10,989.8
Executive andlegislative bodies: 5,786.2
Parliament (Financial economic management) 680.4
Other expenditures ofthePresident ’sAdministration 748.4
International Institute ofStrategic Research under thePresident 180.0
Management Office 4,177.4
Financial andtax-budget activity (Management office): 1,195.0
Ministry ofFinance 865.0
State taxinspection 272.0
State customs inspection 58.0
Foreign policy activity (Management office): 1,184.0
Ministry ofForeign Affairs 200.0
Diplomatic andother institutions inCIScountries 900.0
Diplomatic andother institutions inlong-distance countries 84.0
Fundamental scientific research 1,753.3
National Academy ofSciences 1,677.3
Archives agencies 76.0
General planning, statistic services andother general services: 459.3
Ministry ofEconomy 40.0
Scientific Research Institute ofEconomy oftheMinistry
ofEconomy 150.6
Management office 268.7
Other general State services: 612.0
Ministry ofNature Protection 485.0
Management office (State commission onthecontrol over drugs) 127.0
II. Defence 465.0
III. Social order andsecurity 5,386.3
1. Judicial bodies: 732.3
Constitutional Court 300.0WT/ACC/KGZ/3
Page117
Supreme Court 34.6
People ’sCourt 85.9
Superior court ofarbitration 17.3
Oblast court ofarbitration 25.9
Notarial offices 43.2
Procuracy Office 77.8
Oblast, cityandregion procuracies 147.0
Office ofcourt’sadministration 0.6
IV. Education 4,455.5
V. Health attheexpense ofincome from paidservices and
other special means 8,617.1
VI. Social security 38.0
VII. Housing municipal economy 20.0
VIII. Organization ofrestandcultural religious activity 8,225.3
Culture 8,125.3
Television andbroadcasting 100.0
IX. Fuel-energetic complex 0
X. Agriculture, water resources, forestry, fishing andhunting: 24,656.6
Agriculture 828.6
Water resources 23,823.0
Fishing andhunting 5.0
XI. Mining industry andmineral resource, except forfuel,
manufacturing industry, construction:90.0
State inspection oncontrol oversecurity oflabour andproduction
inthepublic economy andmountain control 10.0
Construction (Office oftheMinistry ofArchitecture and
Construction) 80.0
XII. Transport andcommunication 102,166.0
1. Transport 102,166.0
XIII. Other services related toeconomic activity 0
XIV. Expenses notreferred tobasic groups 0WT/ACC/KGZ/3
Page118
Table 1-30 -Allocation Stipulated inState Budget for1996
(inthousands ofsoms)
Republic budget Local budget State budget
Total expenditures onitems I-XIV: 562,544.9 233,982.8 796,527.7
purchase ofequipment, appliances and
materials 145,975.0 19,600.8 165,575.8
purchase ofpharmaceuticals anddressing
materials 33,162.0 31,254.4 64,416.4
food 199,011.1 142,306.8 341,317.9
investments 88,823.0 16,717.3 105,540.3
major repairs 95,573.8 24,103.5 119,677.3
I. General State services: 45,457.1 826.9 46,284
purchase ofequipment, appliances and
materials 19,596.1 786.6 20382.7
purchase ofpharmaceuticals anddressing
materials 3.0 0.0 3.0
food 568.0 0.0 568.0
investments 5,000.0 0.0 5,000.0
major repairs 20,290.0 40.3 20,330.3
II. Defence: 74,752 0.0 74,752
purchase ofequipment, appliances and
materials 13,919.0 0.0 13,919.0
purchase ofpharmaceuticals anddressing
materials 635.0 0.0 635.0
food 59,043.0 0.0 59,043.0
major repairs 1,165.0 0.0 1,165.0
III. Social order andsecurity: 110,525.2 5,431.5 115,956.7
purchase ofequipment, appliances and
materials 26,156.6 4,463.4 30,620.0
purchase ofpharmaceuticals anddressing
materials 1,277.0 0.0 1,277.0
food 70,503.6 968.1 71,471.7
investments 3,500.0 0.0 3,500.0
major repairs 9,088.0 0.0 9,088.0
IV. Education: 93,356 102,744.5 196,100.5
purchase ofequipment, appliances and
materials 44,875.5 5,576.0 50,451.5
purchase ofpharmaceuticals anddressing
materials 72.0 0.0 72.0
food 38,725.5 89,076.7 127,802.2
major repairs 9,683.0 8,091.8 17,774.8
V. Health: 82,449 82,707.7 165,156.7
purchase ofequipment, appliances and
materials 16,910.0 4,868.0 21,778.0
purchase ofpharmaceuticals anddressing
materials 30,944.0 28,907.0 59,851.0
food 24,988.0 44,800.0 69,788.0
major repairs 9,607.0 4,132.7 13,739.7
VI. Social insurance andsocial security: 3,259 9,705 12,964WT/ACC/KGZ/3
Page119
Republic budget Local budget State budget
purchase ofequipment, appliances and
materials 577.0 1,776.0 2,353.0
purchase ofpharmaceuticals anddressing
materials 227.0 1,004.0 1,231.0
food 2,403.0 6,715.0 9,118.0
major repairs 52.0 210.0 262.0
VII. Housing municipal economy: 373 0.0 373
purchase ofequipment, appliances and
materials 232.00 0.0 232.0
purchase ofpharmaceuticals anddressing
materials 4.0 0.0 4.0
food 137.0 0.0 137.0
VIII. Organization ofrestandcultural religious
activity: 6,200.4 1,264.2 7,464.6
purchase ofequipment, appliances and
materials 1,800.4 443.8 2,244.2
purchase ofpharmaceuticals anddressing
materials 0.0 58.4 58.4
food 1,500.0 733.0 2,233.0
major repairs 2,900.0 29.0 2,929.0
IX. Fuel-energetic complex 0.0 0.0 0.0
X. Agriculture andwater resources and
forestry fishing andhunting: 62,688 2787 65,475
purchase ofequipment, appliances and
materials 19,449.0 687.0 20,136.0
purchase ofpharmaceuticals anddressing
materials 0.0 1,285.0 1,285.0
food 497.0 14.0 511.0
major repairs 42,742.0 801.0 43,543.0
XI. Mining industry andmineral resources
(except forfuel) manufacturing industry,
construction: 1,229.2 0.0 1,229.2
purchase ofequipment, appliances and
materials 1,102.4 0.0 1,102.4
food 80.0 0.0 80.0
major repairs 46.8 0.0 46.8
XII. Transport andcommunication:
purchase ofequipment, appliances and
materials 53.0 0.0 53.0
XIII. Other services related toeconomic
activities: 1,870 0.0 1,870
purchase ofequipment, appliances and
materials 1,304.0 0.0 1,304.0
food 566.0 0.0 566.0
XIV. Expenditures notreferred tobasic
groups: 80.323.0 16,677.0 97,000.0
investments 80,323.0 16,677.0 97,000.0WT/ACC/KGZ/3
Page120
ANNEX 2
LIST OFLAWS AND LEGAL ACTS
Prefatory Note
Normative actsaredivided intolaws andsub-legal acts. Laws areofthree types: (i)the
Constitution, (ii)Constitutional Laws34and(iii)other Laws passed bytheParliament andsigned by
thePresident. Sub-legal actsaretheactsofdifferent governmental bodies adopted forthepurpose
ofimplementing ofoneormore laws. Sub-legal actsmust beconsistent withlaws. Thefollowing
aresub-legal acts:(iv)Presidential Decrees, (v)Cabinet ofMinisters Resolutions and(vi)Regulations
andRules adopted byministries andadministrative agencies. Thefollowing numeration ofnormative
actsisintheorder oftheirlegalpriority. Notethatonlythedateoforiginal enactment orissuance
isprovided.
1. ListofLaws andLegal ActsRegulating theActivity oftheCustoms Authorities: Responsible
Agencies
Laws
Customs Code of2July1992; amended 16April 1994;
Customs Tariff of15December 1992; amended 16April, 1994.
Cabinet ofMinisters Resolutions
No.57TheProcedure ForPermitting Goods, Property, Currency, Means ofMotor Transportation
andOther Items ofValue toPass Through theCustoms Border oftheKyrgyz Republic of
5February 1993;
No.290Creation oftheCustoms Tariff Council under theCabinet ofMinisters of7July1993;
No.613Temporary Customs Tariff of30December 1993; amended byResolution No.26of
21January 1994 andbyResolution No.358of28May1994;
No.340TheState Customs Inspectorate under theMinistry ofFinance of18May1994; amended
byResolution No.387of12September 1995;
No.622Customs Regime ofProcessing Give-and-Take RawMaterials andGoods Within theCustoms
Territory oftheKyrgyz Republic of18August 1994;
No.10Temporary Regulations ontheApplication ofExcise Seals toOilProduct Imports of
9January 1996;
34TheConstitution specifically mentions andprescribes theessential terms of,several lawsthat
arerequired tobecreated through thenormal parliamentary process. Such laws-referred toas
“Constitutional laws”-mustbeadopted bya2\3majority ineachchamber ofParliament andsigned
bythePresident.WT/ACC/KGZ/3
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No.57Approving theListofCountries Eligible forthePreference Scheme oftheKyrgyz Republic
of6February 1996;
No.119Approving theRules forEquipping Transport Facilities (Containers) fortheTransportation
ofSealed Goods of20March 1996.
Administrative Rules andRegulations
Instructions oftheState Customs Inspectorate under theMinistry ofFinance OntheProcedure of
Customs Registration ofTransit Goods of23August 1993;
Instructions oftheState Customs Inspectorate OntheConduct oftheExamination ofPersons and
Luggage of17September 1993;
Regulations oftheState Customs Inspectorate OnCustoms Goods-Carrier of24January 1996;
InstructionsoftheStateCustomsInspectorateOntheProcedureforCompletingtheCommodityCustoms
Declaration of24January 1996;
Regulations oftheStateCustoms Inspectorate OntheProcedure forControlling Goods Exported from
theTerritory oftheCustoms Union of24January 1996.
Responsible Agencies
Cabinet ofMinisters oftheKyrgyz Republic;
Customs Tariff Council under theCabinet ofMinisters oftheKyrgyz Republic;
State Customs Inspectorate under theCabinet ofMinisters oftheKyrgyz Republic.
2. ListofLaws andLegal ActsRelating toNon-Tariff Regulation ofImports, Exports and
Trade inTransit, Rules ofOrigin: Responsible Agencies
Presidential Decrees
No.280Changing theProcedure forLicensing RawMaterials, Consumer Goods andProducts for
Production-Technical Purposes of23September 1992; amended byDecree No.36of9February 1995;
No.134TheRegulation ofCurrency Transactions of5May1993;
No.34Certain Measures fortheProtection andDevelopment ofPrivate Business of25March 1994;
amended byDecree No.69of11March 1995.
Cabinet ofMinisters Resolutions
No.408Approving theRegulations ontheProcedure forExport andImport Licensing of13June1994;
No.724Measures toRestrict Export ofNon-Ferrous Metals of23September 1994; amended by
Resolution No.373of25August 1995 andbyResolution No.268of18June1996;WT/ACC/KGZ/3
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No.901Regulating theImport ofGoods, Things andOther Articles byNatural Persons intotheKyrgyz
Republic of30December 1994; amended byResolution No.352of14August 1995;
No.55Approving theRegulations fortheProcedure oftheExport andImport ofMaterials and
Technologies Used IntheProduction ofChemical, Rocket andNuclear Weapons of6February 1996;
No.88Additional Measures onRegulating theProcedure andIntroducing Excise Marks forTobacco
andAlcoholic Beverages intheKyrgyz Republic of5March 1996.
Administrative Rules andRegulations
Regulations oftheStateCustoms Inspectorate OntheControl OvertheImport ofFood RawMaterials,
FoodStuffsIncludingAlcoholandAlcohol-FreeBeveragesintotheKyrgyzRepublicof21October1993;
Regulations oftheStateCustoms Inspectorate OntheProcedure ofControl overGoods Exported From
theTerritory ofCustoms Union of24January 1996;
Order oftheStateCustoms Inspectorate OnApproving Common Regulations Concerning theProcedure
ofDeclaringandControloverCustomsValueofGoodsImportedtotheTerritoryoftheKyrgyzRepublic
of24January 1996.
(Other lawsrelated tonon-tariff regulation canbefound inAnnex 5)
Responsible Agencies
Cabinet ofMinisters;
Chamber ofCommerce andIndustry;
Ministry ofIndustry andTrade;
Ministry ofHealth Protection;
Ministry ofEnvironmental Protection;
Ministry ofCulture;
Ministry ofEconomy;
Ministry ofFinance;
Kyrgyzstandard;
Customs-Tariff Council;
State Customs Inspectorate under theCabinet ofMinisters oftheKyrgyz Republic.WT/ACC/KGZ/3
Page123
3. ListofLaws andRegulations Relating toForeign Investment: Responsible Agencies
Laws
General Principles ofForeign Economic Activity of18April 1991;
Foreign Investment Law of28June 1991; amended on7May 1993, 28July1995 andon
26September 1995;
OnConcessions andForeign Concession Enterprises of6March 1992;
OnApproving Membership oftheKyrgyz Republic inIMF, theInternational Bank ofReconstruction
andDevelopment, theInternational Finance Corporation andtheMultilateral Investment Guarantee
Agency of6March 1992;
OnFreeEconomic Zones of16December 1992; amended on15March 1996.
Parliamentary Resolutions
No.1220-XII OnKarakol, Alai, Chon-Alai andKara-Kuldji FreeEconomic Zones of7May1993;
No151-1 OnSetting upaFreeEconomic Zone oftheCityofBishkek of23June1995.
Presidential Decrees
No.102OntheInternational FundofAssistance toBusiness andForeign Investment of25March 1992;
No.121OnRegulating Foreign-Economic Activity of2April 1992; amended byDecree No.35of
9February 1993 andbyDecree No.201of22August 1995;
No.246OntheState Commission oftheKyrgyz Republic onForeign Investment andEconomic
Assistance (Goscominvest) of27July1992; amended byDecree No.35of9February 1993;
No.270OnMeasures onArranging Examination ofForeign Investment of9September 1992;
No.35OnAmendments intheStateManagement ofForeign Economic Activity of9February 1993;
amended byDecree No.219of30July1993, Decree No.5of12January 1994, Decree No.32of
23March 1994 andbyDecree No.36of9February 1995;
No.234OnAdditional Guarantees forForeign Investors intheKyrgyz Republic of6September 1994;
No.319OntheZone ofForeign Investment Attraction intheCityofBishkek of9December 1994;
No.169OnSetting upanAgency onPromotion ofProjects under theGeneral Directorate of
Goscominvest of3July1995;
No.140OnMeasures forIncreasing Coordination ofProcesses ofDestatization andPrivatization with
Processes ofAttracting Foreign Investment totheKyrgyz Republic of11April 1996.WT/ACC/KGZ/3
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Cabinet ofMinisters Resolutions
No.99OnApproving theRegulations ontheProcedure forDesigning, Examining andApproving
Investment Projects inConstruction of19March 1993;
No.160OnFreeEconomicZoneintheNarynOblastoftheKyrgyzRepublicof19April1993;amended
byResolution No.363of30May1994;
No.308OnStrengthening Oil-Gas-Searching Work intheAlaiValley ofOshOblast of12July1993;
No.427OntheWork ofChuiOblast StateAdministration onIncreasing Experimental Products and
Attracting Foreign Investment of15September 1993;
No.13OnApproving theProvision onKara-Kol Free Economic Zone (FEZ “Karakol ”)of
12January 1994;
No.95OnStrengthening Oil-Gas-Searching Work within theEast-Chui, East-Issyk-Kul andAksai
Depressions oftheKyrgyz Republic of1March 1994;
No.190OnGuarantees toInvestors forConducting Geological-Exploration Work of8April 1994;
No.715OnForeign State Debt of19September 1994;
No.189OnForeign Investment intheTobacco Industry of24May1995;
No.235OnApproving theRegulation onSaleofObjects ofIncomplete Construction intheKyrgyz
Republic onCommercial andInvestment Competitions, Auctions of15June1995;
No.383OntheProgram ofState Investment for1996-1998 of12September 1995;
No.474OnApproving theProvision onFEZBishkek of11November 1995;
No.484OnSetting upaConsulting Agency forInternational Purchases under theGeneral Directorate
ofGoscominvest of14November 1995;
No.512OnForming theGeneral Directorate ofFEZBishkek of27November 1995;
No.27Issues oftheGeneral Directorate ofFEZBishkek of23January 1996;
No.178OnForeign AidtotheKyrgyz Republic in1995 andtheWork oftheGeneral Directorate
oftheState Commission oftheKyrgyz Republic onForeign Investment andEconomic Aidof
19April 1996.
Responsible Agencies
Cabinet ofMinisters;
General Fund ontheSupport ofSmall andMedium Business under theCabinet ofMinisters;
State Property Fund.WT/ACC/KGZ/3
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4. ListofOther Laws andLegal Acts Dealing with Economic Issues thatAffect Trade:
Responsible Agencies
Laws
Civil Code of8May1996;
Civil Code of30July1964;
Criminal Code of29December 1960;
Code onAdministrative Violations of7December 1984; amended numerous times between 1985and
1995;
Land Code of19April 1991; amended on31August 1991;
Commercial Court Procedure Code of16April 1996;
TaxCode of26June1996;
Law OnDenationalization andPrivatization ofState Property of12January 1994;
Law OnPublic Associations of1February 1991; amended 19April 1991;
LawOnPeasant Farms of2February 1991;
LawOnGeneral Principles ofForeign-Economic Activity of18April 1991;
LawOnJoint-Stock Companies of26June1991;
LawOnCooperatives of12December 1991; amended on29June1992 andon11January 1994;
LawOnTaxes from Enterprises, Associations andOrganizations of17December 1991; amended
on6March 1992, 30June1992, 17December 1992, 8May1993, 13January 1994, 25May1994,
27July1995 and26September 1995;
LawOnTaxes fromthePopulation of17December 1991; amended on6March 1992, 30June1992,
17December 1992, 8May1993 and16April 1994;
Law OnSecurities andStock Exchanges of21December 1991; amended on16April 1994,
27May1994, 23June1995, 28September 1995, 10October 1995 and22March 1996;
LawOnBankruptcy of15January 1992;
LawOntheAssignationofFundsforthePreventionandAmeliorationoftheConsequencesofEmergency
Situations of27February 1992; amended on30June1992, 7May1993, 28September 1995 and
28December 1995;
LawOntheProtection ofConsumer Rights of28February 1992; amended on14January 1994;
LawOntheCommercial Court of2March 1992;WT/ACC/KGZ/3
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LawOntheState Budget Control Office of6March 1992;
LawOnCollateral of6March 1992; amended on18December 1992;
LawOnCommodity Exchange andExchange Trade of29June1992;
LawOnStateTaxServices under theMinistry ofFinance of6March 1992; amended on16April 1994,
27May1994, 27July1995 and26September 1995;
LawOnBanks andBanking Activity of11December 1992; amended on12January 1994;
LawOntheNational BankoftheKyrgyz Republic of12December 1992; amended on12January 1994
and16April 1994;
LawOnSubsurface Resources of15December 1992;
LawOnState Feesof16December 1992; amended on12January 1994, 10October 1995 and
22November 1995;
LawOnPrinciples ofBudget Lawof10January 1994; amended on23June1995;
LawOnApplyingtheControl-CashierEquipmentinImplementingCashSettlementswiththePopulation
of12January 1994;
LawOnCommerce andIndustry Chamber of13April 1994;
LawOnPrinciples oftheTaxSystem of14April 1994;
LawOnLocal Taxes andDuties of14April 1994;
LawOnNon-Tax Payments of14April 1994;
LawOntheRestriction ofMonopolistic Activity andtheDevelopment andProtection ofCompetition
of15April 1994;
LawOntheBasic Regulations oftheTreasury oftheKyrgyz Republic of28May1994;
LawOnForeign Currency Transactions of5July1995.
Presidential Decrees
No.232OnMeasures Requiring thePopulation toFileIncome Information of6September 1994;
No.42OnMeasures toImprove Taxation inAgriculture of27February 1995;
No.165OnAdditional Measures toIntroduce State Monopoly intheProduction, Storage andSale
ofAlcohol andAlcoholic Products of13May1996.
Cabinet ofMinisters Resolutions
No.421OnMeasures fortheDe-Monopolization oftheEconomy andSupport ofBusiness of
25August 1992;WT/ACC/KGZ/3
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No.597OntheProcedure forLicensing Commodity Exchange Activity of1December 1992;
No.255OnApproving theRegulations forIntroducing Retail Trade andTrade-Production Activity
of10June1993;
No.29OnEstablishingStateRegulationfortheProductionandSaleofAlcoholandEstablishingControl
Over theProduction andSaleofAlcoholic Beverages of24January 1994; amended byResolution
No.232of8June1995;
No.42OnApproving Regulations forCommission Trade of2February 1994;
No.61OntheCreation oftheStateInspectorate onTrade andProtection ofConsumers ’Rights under
theMinistry ofIndustry, Material Resources andTrade of14February 1994;
No.99OnRegulating Trade Activity of3March 1994; amended byResolution No.298of
21July1995;
No.332OnApproving theRegulation ofStateRegistration ofPrivate Entrepreneurs of16May1994;
amended byResolution No.829of22November 1994;
No.355OnIssues ofManagement Board onReorganization andLiquidation ofEnterprises ”of28
May1994;
No.868OnIssues oftheCommerce andIndustry Chamber of21December 1994;
No.97OnBasic Directions ofForeign Economic Activity of22March 1995;
No.132OnApproving theRegulations ontheProcedure forCalculating Profit Taxes, VAT Taxes,
Taxes fortheUseofMotor Vehicle Roads, Production Property andExcises toDetermine theTerms
ofPayment totheBudget of14April 1995; amended byResolution No.297of21July1995;
No.165OnApproving theProcedure toDetermine Land TaxRates fortheUseofArable Lands by
Farmers of16May1995;
No.270OnApprovingtheProcedureforCalculatingandLevyingExciseTaxonDomesticandImported
Alcohol andLiquor-Vodka Products of7July1995;
No.272OnRegulating Trade inOilProducts of11July1995;
No.298OnIntroducingStateRegulationofProduction,StorageandSaleofEthylAlcoholandAlcoholic
Beverages of21July1995;
No.330OnApproving theRegulation oftheProcedure forRegistering andtoIssuing Licences for
theProduction, Storage andSaleofAlcoholic Products of4August 1995;
No.333OnMeasures toImplement theLegislation onBankruptcy ofEnterprises of4August 1995;
No.488OnIntroducing State TaxRegistration of16November 1995;
No.559OnanExport Development Program for1996 andMedium Term Prospective of
21December 1995;WT/ACC/KGZ/3
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No.571OnIntroducingUsageofExciseMarksfortheProduction,ImportandSaleofTobaccoProducts
andAlcoholic Beverages of27December 1995;
No.3OnApproving Regulations ontheProcedure forApplying Fines andEconomic Sanctions for
Violations oftheAntimonopoly Legislation andPriceTariffs andfortheProtection ofConsumer Rights
andontheProcedure toEstablish Prices andTariffs inTrade Markets of5January 1996;
No.9OnApproving theRegulations ontheProcedure forUsing Excise Marks fortheProduction,
Importation andSaleofTobacco Products andAlcoholic Beverages of8January 1996;
No.52OnMeasures fortheEmergency Financial Support ofAgriculture of2February 1996;
No.127OnBasic Directions forSecurities ’Market Development for1996 of25March 1996;
No.135OnClarification oftheListofEntities-Monopolists asof1996 of27March 1996;
No.209OntheConcept fortheDevelopment ofFree andPrivate Market Trade inGrain of
10May1996;
No.241OnIssues oftheMinistry ofIndustry andTrade of27May1996;
No.263OnApproving theRegulation ofTrade Representations oftheKyrgyz Republic Abroad of
12June1996;
No.264OnApproving theInstruction ontheStopping oftheBankruptcy Process intheEvent the
Creditor ’sDemands areMetBefore theAdvertisement Concerning theCreditors ’Meeting isPublished
of12June1996.
Responsible Agencies
Cabinet ofMinisters;
Ministry ofTrade andIndustry;
Ministry ofEconomy;
Ministry ofFinance;
Ministry ofAgriculture andFoodstuffs;
TheChamber ofCommerce andIndustry.WT/ACC/KGZ/3
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5. Material ofRelevance toGATS
(a) Existing laws, regulations oradministrative guidelines which significantly affect trade in
services
Laws
LawOnInsurance intheKyrgyz Republic of18December 1991;
LawOnGeneral Principles ofDenationalization, Privatization andEntrepreneurship intheKyrgyz
Republicof20December1991;amendedon6March1992,2July1992,8May1993,12January1994,
16April 1994, 23June1995, 28September 1995, 11October 1995 and8May1996;
LawOnHealth Protection ofthePeople of2July1992; amended on18December 1992;
LawOnSanitary-Epidemiological Well-Being ofthePopulation of2July1992;
LawOnMedical Insurance ofCitizens intheKyrgyz Republic, 3July1992; amended on28July1995
and26September 1995;
LawOnEducation of16December 1992.
Parliamentary Resolutions
No.1126 OnIntroducing State Licensing forConstruction Activity of18December 1992.
Presidential Decrees
No.207OntheProcedure forLicensing Certain Types ofBusiness of19June1992.
Cabinet ofMinisters Resolutions
No.590OntheProcedure forRegistering andLicensing Citizens andLegal Entities Rendering Legal
Services andontheCharging andAmount ofFeesforSuch Licences of30November 1992;
No.33OnAuditing Activity andArranging Independent Financial Control of26January 1993;
No.242OnApproving theRegulations ontheProcedure forLicensing theHiring ofForeign Manpower
toWork intheKyrgyz Republic of2June1993;
No.380OnMedical Insurance ofCitizens oftheKyrgyz Republic of16August 1993;
No.395OnApproving Legal ActsRegulating theActivity oftheHigher Education of25August 1993;
No.533OnIntroducing Fees forIssuing aLicence toConduct Banking Transactions of
2November 1993;
No.451OnFurther Measures forRegulating theTourist Flow andonPreventing Damages toNatural
Resources of29June1994;
No.652OnLicensing Tourist-Excursion andAlpine Activity of1September 1994;WT/ACC/KGZ/3
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No.655OnIssues oftheKyrgyz Transport Inspectorate oftheMinistry ofTransportation of
1September 1994;
No.137OnApproving theRegulations onSpecial Registrars andDepositories of19April 1995;
No.276OnApproving theRegulations ontheProcedure andTerms ofTransferring theRight to
Administer State Blocks ofShares inJoint-Stock andOther Agreed Companies andonTransferring
State Enterprises toaManagement Board of12July1995;
No.414OnApproving theRegulations ontheTrust Board (Trust) of5October 1995;
No.440OnApproving theRegulations ontheProcedure forSupplying Goods andRendering Services
inConnection With theProductive Cooperation ofEnterprises andIndustrial Sectors oftheKyrgyz
Republic andOther States-Participants oftheCISof23October 1995;
Administrative Rules andRegulations
Regulations oftheStateInsurance Agency OntheProcedure forRegistering andLicensing Insurance
Agencies bytheState Insurance Agency of29January 1993;
Regulations oftheMinistry ofEconomy andFinance OntheProcedure forLicensing Auditing Activity
ofSeptember 131993;
Regulations oftheMinistry ofEconomy andFinance OntheQualification TestfortheRight toObtain
aLicence forAuditing Activity of13September 1993;
Regulations oftheMinistry ofHealth OntheProcedure forLicensing Veterinary Activity of
11January 1993;
Temporary Regulations oftheMinistry ofCommunication OnGranting Licences forActivity inthe
Sphere ofCommunications of27January 1994;
Regulations oftheNational Bank OntheActivity ofRepresentations ofForeign Banks ontheTerritory
oftheKyrgyz Republic of30June1994;
Regulations oftheNational Bank OntheProcedure forCreating Commercial Banks of23July1994;
Resolution oftheNational Bank OnIncreasing theCharter Capital ofCommercial Banks of
9August 1995;
Regulations oftheState Securities Agency OntheProcedure forLicensing Depository Activity of
26January 1996;
Regulations oftheMinistry ofTourism andSport OntheProcedure forLicensing Tourist-Excursion
andAlpine Activity intheKyrgyz Republic of16March 1996.
(b) Publications orsources ofinformation, concerning measures ofgeneral application, of
relevance totheGATS
There arenosuchpublications orsources.WT/ACC/KGZ/3
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(c) Enquiry points, ifany,asforeseen inArticle IIIoftheGATS
IntheKyrgyz Republic, therearenoinformational sources asstipulated intheGATS. However,
general information ontheexisting market forservices intheKyrgyz Republic isavailable atthe
Chamber ofCommerce andIndustry andtheNational Statistics Committee.WT/ACC/KGZ/3
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ANNEX 3
INFORMATION ONIMPORT LICENSING PROCEDURES
1. Outline ofSystems
Most goods mayenter theKyrgyz Republic without alicence. However, certain goods which
mayaffect thehealth ofcitizens, consumer orenvironmental welfare, ornational security dorequire
alicence tobeimported intothecountry. Imports under these licences amount toabout 2%ofthe
value oftheKyrgyz Republic ’stotalimports.
2. Purposes andCoverage ofLicensing
TheKyrgyz Republic hasonelicensing system. Itapplies tomilitary armsandgoods; explosives;
nuclear materials andtechnology formilitary use; virulent poisons; andnarcotics (including those
usedinpharmaceuticals) andpsychotropic substances. Thesystem applies togoods originating inand
coming from allcountries, including other CIScountries.
Thelicensing system isnotintended torestrict either thequantity orvalue ofimported goods.
Itissimplytoprotectpublichealth,consumerandenvironmentwelfareandnationalsecurity.Alternative
means ofaccomplishing thesepurposes arecontinually being considered withtheresult thatthenumber
ofgoods under import restrictions hasbeenreduced since1992from6categories ofprohibited articles
and17categories ofgoods requiring licences to5categories requiring licensing only.
Import licensing isauthorized andmaintained under Presidential Decree of25March 1994 and
Cabinet ofMinisters Resolution No.408of13June1994. Thelawisstatutory ineffect. Goods subject
toimport licensing aredesignated bytheCabinet ofMinisters upon recommendation byinterested
ministries andgovernment bodies andarenotsubject toadministrative discretion. TheCabinet of
Ministers mayabolish thelicensing system without legislative approval.
3. Procedures
Nogoods under theimport licensing procedure arerestricted astothequantity orvalue ofthose
imports. There isnorequirement astohowfarinadvance anapplication foralicence mustbemade.
However, administrative guidance suggests 20days. Normally anapplication canbeapproved inabout
1week. Anapplication canbeapproved inashorter time, ifallpapers areinorder, incaseofan
emergency orwhen goods inadvertently arrive attheborder without animport licence. Alicence can
begranted immediately uponrequest, ifallpapers areinorder. Applications forimport licences may
bemade atanytimeoftheyearwithout anylimitations. Consideration ofanimport licence application
maybeeffected bymore thanasingle administrative organ. Applications ofimporters mustbepassed
toanother administrative organ forapproval byexperts incertain casesinvolving particular goods under
licence, inaccordance withthefollowing table3-1:WT/ACC/KGZ/3
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TABLE 3-1
Good Categories HSCode Government Agency
Military arms andgoods 8710
8802
8803
9301
9302
9305
9306Ministry ofDefense
Explosives 3601
3602
3603Ministry ofDefense, Ministry of
Foreign Affairs, orMining Control
Body, depending on4-digit HS
heading ofgoods
Nuclear materials formilitary use - Ministry ofDefense orState
Company “Kyrgyz-Altan ”,
depending onNature ofgoods
Virulent poisons 282090000
282739000
282760000
283719000
293929000
293990900
284321000
300439100Ministry ofHealth, Narcotics
Control Commission, orState
Company “Kyrgyz-Pharmatsia ”,
depending on4-digit HSheading of
goods
Narcotics andpsychotropic
substances293910000
130211000
293910100
293990190
300439100
29391000
293940000
293990110
293990190
293990900
294200000
300439100
290322000
290329000
290369000
290911000
293351100
293351300
293351900
300439100
293799000
293940000
293960000Narcotics Control CommissionWT/ACC/KGZ/3
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Application foranimport licence mayberefused onlyforfailure tomeetthestipulated criteria.
Thereasons forrefusal must beprovided inwriting totheapplicant. Adecision forrefusal canbe
appealed totheministry which refused theapplication andfurther appealed toanindependent court.
4. Eligibility ofImporters toApply forLicence
Generally, allpersons, firms andinstitutions areeligible toapply foranimport licence under
thesystem oftheKyrgyz Republic. There isnosystem ofregistration ofpersons orfirms permitted
toengage inimportation.
5.Documentation andOther Requirements forApplication forLicence
Thefollowing information isrequired inapplications:
-Name, address, telephone number andenterprise registration codeofapplicant;
-Whether ageneral orsingle licence isdesired;
-Names andaddresses ofimporter andseller ofgoods;
-Country ofseller andcountry oforigin ofgoods;
-Desired period ofvalidity oflicence;
-Type oftransaction andtypeofcurrency;
-Description ofgoods, including Kyrgyz tariff codenumber, unitofmeasure, quantity, cost
andterms ofsale;
-Ifcountertrade, adescription ofthegoods forwhich traded; and
-Import contract orintergovernmental agreement number.
Thefollowing pagecontains areproduction oftherequired application form:WT/ACC/KGZ/3
Page135
1. Organization-applicant
address, telephone8LICENCE No of
general single
2. ERCode 7.APPLICANT FORM No of
general single
3. Producer, address
Purchaser, address9. Buyer, address
Seller, Address
10. Country ofbuyer/seller
4. Country ofdesignation 11. Effective term on
applicationon
licence
5. Country oforigin 12. Type oftransaction
6. Customs 13. Currency
14. Name and
Characteristics15.
HS
Code16.UnitofMeasure 17.
Quality18.Cost 19.
Terms
of
delivery
14.1 EXPORT
IMPORT
14.2 Goods supplied inreturn
20. Basis forlicence: 22. Organization-expert
Export contract
No.dateName
Position
Signature
Seal DateImport contract
No.date
Intergovernmental
agreement (contract)
No.date
21. Name ofasupervisor ofthe
organization-applicant23. Ministry ofIndustry andTrade oftheKyrgyz Republic
Name
Position
SignaturePosition
Signature
Seal Date Seal Date
24. Special terms oflicenceWT/ACC/KGZ/3
Page136
Theapproved formbearing theofficial signatures andstamp constitutes theimport licence. The
following documents arerequired tobesupplied withtheapplication form:
-Theimport contract;
-Theservice contract ofintermediary, ifapplicable;
-Thetechnical andeconomic grounds justifying theneedandbenefit ofthegoods fortheKyrgyz
Republic;
-Anexpert 'sconclusion; and
-Thesalecontractoftheintermediarywithcorrespondingtransportationandpaymentdocuments.
Upon actual importation, theimport licence isrequired inaddition tothedocuments normally
required ofother imported goods (import declaration, contract andcommercial invoice). Thefeefor
animport licence application is750soms (about US$65). There isnodeposit oradvance payment
requirement.
6. Conditions ofLicensing
Thelicence isvalid foruptosixmonths, oroneyearinthecaseofimporters having long-term
relationships withforeign exporters. Thelicence mayberenewed foruptosixmonths. There isno
penalty fornon-utilization ofthelicence oraportion ofalicence. Thelicence isnottransferable between
importers. Noother conditions areattached totheissuance ofalicence.
7. Other Procedural Requirements
There arenoother administrative procedures required prior toimportation. Foreign exchange
isautomatically provided andisasavailable forgoods tobeimported under licensing procedures as
forgoodstobeimportedwithoutlicensingrequirements.Animportlicenceisnotrequiredasacondition
toobtaining foreign exchange.WT/ACC/KGZ/3
Page137
ANNEX 4
INFORMATION ONIMPLEMENTATION AND
ADMINISTRATION OFTHE CUSTOMS VALUATION AGREEMENT
Customs value iscurrently implemented under theCustoms Code of2July1992, thelawOn
theCustoms Tariff of15December 1992 andProcedural Instruction 01-16/22 of5January 1995.
AnewCustoms Code (theProposed Customs Code) isnowunder consideration bythelegislature.
TheProposed Customs Code contains anexpanded treatment ofcustoms value more inlinewithGATT
valuation principles andprocedures thanthatofthecurrent legislation. Procedures toimplement
valuation provisions oftheProposed Customs Code haveactually beenpromulgated, although they
arenotyetinforce.
Therearenoprovisionsincurrentlegislationconcerningsalesbetweenrelatedpersons.Provisions
intheProposed Customs Code concerning salesbetween related persons areconsistent withArticles 1
and15.4oftheCustoms Valuation Agreement.
Neither thecurrent northeproposed legislation consider inter-company prices asaprima facie
basis forregarding therespective prices asbeing influenced.
Under neither thecurrent northeproposed legislation isthereaspecific provision forinforming
animporter thattheStateCustoms Inspectorate (SCI) considers inter-company prices tobeinfluenced
bytherelationship. However, Article 167oftheProposed Customs Code itsimplementing instructions
provide thattheSCImustprovide, atthedeclarant 'srequest, awritten explanation ofwhythedeclared
value cannot beaccepted asthebasis forassessment ofcustoms duties andtaxes.
Article 1.2(b) oftheCustoms Valuation Agreement (CVA) isnotimplemented incurrent
legislation. However, itwillbeimplemented under procedures oftheProposed Customs Code and
theimplementingregulationstherefor.Thesewillallowimporterstheopportunitytoprovideinformation
totheSCIdemonstrating thatthedeclared value closely approximates theprices ofidentical orsimilar
merchandise insalesbetween unrelated buyers andsellers.
Thepractice under current legislation isthatthepurchase price orvalue ofdamaged goods is
reduced totheextent ofthedamage, asdetermined byanadhoccommittee consisting ofrepresentatives
oftheSCIandthedeclarant aswellasanindependent expert. Thispractice willcontinue under the
proposed legislation. Noreduction induties isgiven forgoods which havebeendeclared andincluded
intheinvoice butarenotfound uponcustoms examination, unless theimporter cansatisfy thecommittee
thatthegoods were lostbefore importation intoKyrgyzstan through nofaultoftheimporter.
Procedures under thecurrent legislation provide fortheuseandapplication ofthemethods of
Article 5oftheCVA, butnotthose ofArticle 6.Article 168oftheProposed Customs Code provides
thatthemethods ofArticles 5and6oftheCVA maybeusedinanysequence andprocedures thereunder
provide fortheimporter 'soption inthematter.
Article 5.2oftheCVA, concerning theuseofdeductive value afterfurther processing, isnot
implemented incurrent legislation. ThatArticle isimplemented inthelastparagraph ofArticle 172
oftheProposed Customs Code.
Article 6.2oftheCVA, barring compulsory production of,oraccess to,records ofanyperson
notresident intheKyrgyz Republic forthepurposes ofdetermining computed value, isnotimplemented
incurrent legislation. Implementing procedures oftheProposed Customs Code allow theSCItorequireWT/ACC/KGZ/3
Page138
computed value calculations from theimporter, butonlyiftheproducer agrees tofurnish ittothe
importer.
Current legislation authorizes theuseofvalues ofidentical orsimilar articles according to
catalogues ofretail trade firms andother manuals when there isnoinvoice value oritisunreliable,
fromwhich arededucted costsrelated toimportation andsaleintheKyrgyz Republic. Italsoauthorizes
theaddition ofaverage expenses fortransportation andinsurance when theyarenotincluded incatalog
prices ofsimilar articles. Article 174oftheProposed Customs Code provides fora"provisional"
method, when other methods maynotbeapplied, describing itasthe"customs value tobedetermined
bytaking intoaccount world practice."
Under current legislation, theSCImustgiveawritten explanation inanycasewhere itdecides
tochange thecustoms value fromthevalue declared bytheimporter. Under Article 167oftheProposed
Customs Code anditsimplementing instructions, theSCImust, uponrequest oftheimporter, provide
awritten explanation ofwhyitcannot accept thedeclared value asthebasisforassessment ofcustoms
duties andtaxes.
None oftheprohibitions found inArticle 7.2oftheCVA arecontained incurrent legislation.
Some, butnotall,oftheprohibitions inArticle 7aredelineated inArticle 174oftheProposed Customs
Code. Theprohibitions ofArticle 7.2(a), (e)and(g)aredelineated, butnotthose of(b),(c),(d)and(f).
Bothcurrent andproposed legislation provide fortheaddition ofthecostsspecified inArticle 8.2
oftheCVA incurred ongoods uptothetimetheycross thecustoms border oftheKyrgyz Republic
indetermining customs value, when theyarenotincluded inthepurchase price.
Under bothcurrent andproposed legislation, therateofexchange ispublished bytheNational
BankoftheKyrgyz Republic innewspapers ofgeneral circulation. Forpurposes ofdetermining customs
value, foreign currency isconverted intocurrency oftheKyrgyz Republic attherateofexchange in
effect onthedateofreceipt ofthecustoms declaration forthegoods.
There isnoprovision under current legislation toensure confidentiality, asspecified inArticle 10
oftheCVA. Confidentiality isensured inArticle 165oftheProposed Customs Code, except forcertain
information stipulated inthelegislation oftheKyrgyz Republic which mayberequired bylaw
enforcement andjudicial authorities andforwhich purposes itcannot betreated asacommercial secret
orasconfidential.
According toprocedures authorized under thecurrent legislation, thedeclarant mayappeal a
valuation decision oftheSCItohigher authorities. Articles 166and419through 430oftheProposed
Customs Code provide fortherightofanyaggrieved person tochallenge decisions oftheSCIconcerning
thecustoms value inaccordance withtheprocedure established bylegislation oftheKyrgyz Republic,
which provides forbothadministrative andjudicial appeals.
Under current legislation, theimporter mayrequire theSCItoinform himofhisrighttoappeal
acustoms action orinaction. Under theProposed Customs Code, theimporter isinformed ofhisright
toappeal through areading ofthecurrent instructions andtheproposed law.TheSCIisnotrequired
tootherwise soinform importers.
Current legislation requires theSCItoinform thepublic oflaws, regulations andotherinstructions
concerning customs activities. Furthermore, thereisageneral government-wide practice ofpublishing
lawsandtheir implementing regulations. Article 403oftheProposed Customs Code requires the
SCItopublish information about relevant national lawsinthemassmedia, while Article 404requires
local customs bodies topublicize thebasic provisions ofthose laws. However, under Article 405,
copies ofalready-published texts oflaws, regulations andcustoms directives willbepresented toWT/ACC/KGZ/3
Page139
interested persons bytheSCIonlyupon payment ofafeeinanamount established bytheMinistry
ofFinance.
Theprovisions ofArticles 403-405 oftheProposed Customs Code areapplicable aswellto
regulations concerning application oftheCVA.
Article 405oftheProposed Customs Code requires theSCItoprovide thetextofdecisions of
thatbodytointerested persons uponpayment ofafeeinanamount agreed tobytheMinistry ofFinance.
Legislation oftheKyrgyz Republic doesnotrequire publication ofjudicial rulings.
Information about general andspecific lawsreferred toinrulesofimplementation orapplication
isprovided asspecified inArticles 403-405 oftheProposed Customs Code.
Most rules thatwillbeapplicable under theProposed Customs Code have been published.
However,implementinginstructionsincorporatingtheInterpretativeNotesoftheCVAarebeingprepared
forpublication through periodic bulletin notices.
Current legislation permits importers toreceive anduseimported goods under pledge, guaranty,
orpayment ofestimated duties, pending finaldetermination ofvalue. Article 166oftheProposed
Customs Code alsoprovides forthisprivilege.
Additional explanations havebeenlaiddown inimplementing instructions forArticle 166.
Current legislation requires theSCItoprovide awritten explanation ofanydecision ittakes
concerning valuation. Article 167oftheProposed Customs Code anditsimplementing instructions
require theSCItoprovide upon request anexplanation whythedeclared value cannot beaccepted
asthebasis forassessment ofcustoms duties andtaxes.
Interpretative Notes havenotbeenincluded inthecurrent legislation. They willbeincluded
insupplementary instructions forvaluation under theProposed Customs Code.
Theissue ofwhether ornottoinclude interest payments incustoms value hasnotyetbeen
considered bytheKyrgyz Republic. However, theSCIisfamiliar withtheDecision of26April 1984
andwilltakeitintoconsideration infuture deliberations onthematter.
Theissue ofwhether ornottoinclude thevalue ofsoftware inthevaluation ofcarrier media
fordataprocessing equipment hasnotyetbeenconsidered bytheKyrgyz Republic. However, the
SCIisfamiliar withtheDecision of24September 1984 andwilltakeitintoconsideration infuture
deliberations onthematter.WT/ACC/KGZ/3
Page140
ANNEX 5
INFORMATION ONTECHNICAL BARRIERS INTRADE
1. Description ofRelevant Laws, Regulations, Administrative Orders, Etc. Relating to
Implementation andAdministration ofTechnical Barriers toTrade (AllNecessary
References Should beProvided)
Thepolicy oftheGovernment oftheKyrgyz Republic intheareaofcertification and
standardization isintended onlytoensure thesafety ofgoods, works andservices andtoprotect the
life,health andproperty ofcitizens andtheenvironment andisnotintended toestablish technical barriers
totrade.
Themost significant legalactsinclude:
LawOnStandardization of2April 1996;
LawOntheCertification ofGoods andServices of2April 1996;
LawOnEnsuring Uniform Measurement of2April 1996;
LawOntheProtection ofConsumer Rights of28February 1992;
LawOntheProtection oftheHealth ofthePopulation of2July1992;
LawOntheProtection ofNature of17April 1991;
LawOntheSanitary-Epidemiological Well-Being ofthePopulation of2July1992;
Cabinet ofMinisters Resolution No.260OntheApproval oftheListofGoods (Works andServices)
Locally Produced orImported intotheKyrgyz Republic thatareSubject toCompulsory Safety
Certification of28April 1994; amended byCabinet ofMinisters Resolution No.146OnAdditions
totheListofDomestic andImported Products andServices Requiring Safety Certification of
5April 1996;
Resolution No.725OnIssues oftheState Inspectorate ofStandardization andMetrology of
23September 1994.
Cabinet ofMinisters Resolution No.520OntheApproval oftheRegulations ontheProcedure for
Controlling Products Imported intotheKyrgyz Republic of2December 1995;
Normative documents oftheNational System ofCertification issued byKyrgyzstandard (12RSTand
4RD);
Normative documents oftheState System ofStandardization issued byKyrgyzstandard (8RST;
15standards andrules oftheKyrgyz Republic; 19standards andresolutions ofCISinterstate
standardization, metrology andcertification).
LawOnStandardization According toArticle 1ofthislaw,themain objectives ofstandardization
aretoensure thesafety ofgoods, works andservices forthepurpose ofprotecting life,health and
property; ensuring thecompatibility oftechnical information, aswellastheinterchangeability of
products; ensuring thequality ofgoods, works andservices; ensuring aunified system ofmeasurement;WT/ACC/KGZ/3
Page141
promoting theconservation ofalltypes ofresources; andprotecting buildings andplants from the
riskofdisasters andother emergency situations.
TheState Inspection onStandardization andMetrology under theGovernment oftheKyrgyz
Republic (Kyrgyzstandard) performs theStateadministration ofstandardization. Itisresponsible for:
(i)forming andimplementing Statepolicy intheareaofstandardization; (ii)establishing thegeneral
principles ofwork onstandardization, aswellastheforms andmethods bywhich business entities
interact witheachotherandwithStatemanagement bodies; (iii)ensuring theobservance ofcompulsory
standards requirements; and(iv)establishing rulesgoverning theapplication ofinternational (regional)
standards andthenational standards ofother States, aswellasrules, norms andrecommendations on
standardization (Article 4).
Currently, theKyrgyz Republic applies itsownstandards aswellasregional andinternational
standards andthestandards ofother countries. TheKyrgyz Republic isasignatory oftheAgreement
of13March 1992 OnConducting anAgreed Policy intheArea ofStandardization, Metrology and
Certification andisamember oftheInterstate Council oftheCISonStandardization, Metrology and
Certification. Thedevelopment, adoption andregistration ofinterstate standards oftheCIS(each called
aGOST) areperformed inaccordance withtheabove mentioned Agreement. Article 1oftheAgreement
provides fortheharmonization newGOSTs withinternational, regional andleading national standards.
There aremore than50,000 standards ofdifferent categories ineffect intheKyrgyz Republic.
These arebasically GOST Standards (around 20,000), industry standards andtechnical specifications
oftheformer USSR (around 20,000), Statestandards oftheKyrgyz Republic (RST, around 700), as
wellasthestandards ofRussia, Ukraine, Belarus, Moldova andTajikistan according tobilateral
agreements. Asignificant number ofthese standards areinharmony withinternational standards.
Generally Statestandards areadopted byKyrgyzstandard; however, standards onconstruction
andindustrial building materials aretheresponsibility oftheMinistry ofArchitecture andConstruction
andstandards onenvironmental protection arehandled bytheMinistry ofEnvironmental Protection
(Article 6).Theactual development, consideration, coordination andpreparation ofStatestandards,
aswellasthework oninternational (regional) standardization, isconducted byTechnical Committees
(TCs) onstandardization. Eighteen registered TCshavebeenestablished withtheirmembers being
drawn fromscientific research institutes; industrial andtechnology design organizations dealing with
different typesofproducts (e.g., food, agricultural, machine building, energy-saving andenvironmental
products). Leading scientists, technical experts, producers, consumers and/or specialists ofStatebodies
andKyrgyzstandard aremembers ofthese TCs.
Domestic producers maydevelop technical specifications (Article 6);andproduce andsupply
productsandservicesinaccordancewithnormativedocumentsonstandardization(Article7).Generally,
industrystandardsandtechnicalspecificationsaretoberegisteredatKyrgyzstandard.Industrystandards
andtechnical specifications fortheconstruction andbuilding materials industry aretoberegistered
attheMinistry ofArchitecture andConstruction; fortheenvironmental industry, attheMinistry of
Environmental Protection. They should notconflict withState standards. However, technical
specifications arepermitted toestablish stricter requirements thanState standards.
KyrgyzstandardandotherspeciallyauthorizedStateadministrativebodieshavetherighttorepresent
theKyrgyz Republic ininternational (regional) organizations conducting standardization activity
(Article 5).
LawOntheCertification ofGoods andServices According toArticle 1ofthislaw,certification
isconducted forthefollowing purposes:WT/ACC/KGZ/3
Page142
- tocreate conditions foreconomic entities toparticipate ininternational economic andscientific
cooperation andtrade;
- toassist consumers tomake informed choice regarding products;
- topromote exports andtostrengthen thecompetitiveness ofproducts;
- tocontrol thesafety ofproducts inorder toprotect thelife,health andproperty ofcitizens and
toprotect theenvironment; and
- toprotect thedomestic market from inferior quality andunsafe products, including imported
goods.
Certification maybecompulsory orvoluntary. Inaccordance withArticle 7ofthislaw,
Kyrgyzstandard istoarrange andtoconduct work oncompulsory certification. Thelistofproducts
subject tocompulsory certification isestablished byKyrgyzstandard onthebasis ofproposals made
byother Stateadministrative bodies, butthislistmustbeapproved bytheCabinet ofMinisters. The
mostrecent listwasadopted byResolution No.260of28April 1994 (described below). Producers
orsellersmaysellproductssubjecttocompulsorycertificationonlyafterobtainingtherequiredcertificate
(Article 5).Advertisement ofgoods subject tocompulsory certification without obtaining acertificate
ofconformity withtherequired standards isprohibited (Article 7).Ifaproduct subject tocompulsory
certification isimported intotheRepublic, itmustbeaccompanied byavalidcertificate ofconformity.
Article11statesthatvoluntarycertificationshallbeperformedontheinitiativeoflegalandphysical
persons upon agreed terms between theapplicant andthecertification body.
LawOnEnsuring Uniform Measurement Thislawsetsforth legal principles toensure uniform
measurement intheKyrgyz Republic. These areobligatory forallStateandlocaladministrative bodies,
aswellasforlegalandphysical persons. Thelawisintended toprotect theinterests ofconsumers
andtheState from theconsequences ofinaccurate measurement (Article 1).Kyrgyzstandard is
responsible forestablishing therequirements ensuring uniform measurement (Article 3).
KyrgyzstandardrepresentstheKyrgyzRepublicininternationalorganizationsdealingwithuniform
measurement. Ifaninternational treaty stipulates other rules onuniform measurement thanthose
established bydomestic legislation, therules oftheinternational treaty apply.
Cabinet ofMinisters Resolution No.260 OntheApproval oftheListofGoods (Works and
Services) Locally Produced orImported intotheKyrgyz Republic thatareSubject toCompulsory
Safety Certification of28April 1994; amended byCabinet ofMinisters Resolution No.146
OnAdditions totheListofDomestic andImported Products andServices Requiring Safety
Certification of5April 1996 This Resolution establishes thefollowing listofproduct categories
thataresubject tocompulsory certification forthepurpose ofprotecting thesafety, health andproperty
ofcitizens andtheenvironment:
-Goods produced bymachinery building industry;
-Goods produced bytheelectro-technical andinstrument-making industry;
-Agricultural andfoodindustry products;
-Goods produced bylightindustry;
-Products oftherawmaterials andwood-processing industry; andWT/ACC/KGZ/3
Page143
-Medical products.
Cabinet ofMinisters Resolution No.146of5April 1996(i)increased thelistofproducts subject
toobligatory certification under eachoftheabove categories and(ii)added anewcategory for
construction materials.
Thesaleofthesegoods (regardless whether imported ordomestically produced) isnotpermitted
without obtaining acertificate ofconformity.
Resolution Nos.260and146alsospecify thelistofservices which require obligatory certification.
Please seeSection VI.2(c).
Cabinet ofMinisters Resolution No.520OntheApproval oftheRegulations ontheProcedure
forControlling Products Imported intotheKyrgyz Republic of2December 1995 According
tothisResolution, thecontrol andsupervision overproducts imported intotheKyrgyz Republic is
tobeperformed by:
-TheState Customs Inspectorate (SCI);
-TheState Inspection onStandardization andMetrology (Kyrgyzstandard);
-TheMinistry ofHealth Protection;
-TheMinistry ofNature Protection;
-TheMinistry ofAgriculture andFood; and
-TheChamber ofIndustry andTrade.
Allproducts subject tocompulsory certification imported intotheKyrgyz Republic must be
accompanied bytherequired certificate regardless ofthenationality orlegalpersonality oftheimporter,
including products imported forhumanitarian aidorforexhibition purposes.
Thecertificate ofconformity willbeprovided iftherequired certificates, depending onthetype
oftheproduct, havebeenissued. Such certificates andthebody responsible fortheirissuance are
asfollows:
-ahygiene certificate (Ministry ofHealth, StateSanitary-Epidemiological Supervisory Office);
-aphytosanitary certificate (Ministry ofAgriculture andFood Products);
-aveterinary certificate (Veterinary-Sanitary Supervisory Office); and/or
-acertificate setting forth thedetermination ofState ecology experts thattheproduct hasmet
applicable environmental standards (Ministry ofEnvironmental Protection).
Cargo fromcountries withanunfavourable radiation situation issubject tocompulsory radiation
testing, theresults ofwhich must beincluded inahygiene certificate. Thelistofsuchcountries is
established bytheMinistry ofHealth.
Cargo from countries having aserious infectious disease problem must beaccompanied by
documentation confirming thesafety oftheimported products. Thelistofsuchcountries isestablished
bytheMinistry ofHealth.WT/ACC/KGZ/3
Page144
Ifimported goods areaccompanied bydocuments issued bythenational certification body of
thecountry oforigin purporting toconfirm thatsuchgoods comply withapplicable safety requirements,
suchdocuments mustbereviewed andaccepted byKyrgyzstandard. Inthecasesuchdocuments are
approved andaccepted, Kyrgyzstandard willissueacertificate confirming thatthegoods conform with
theapplicable standards.
Intheabsence ofdocuments confirming thesafety ofimported products, theimporter mayapply
totheSCIandclearthegoods through customs onthecondition thattheimporter assumes liability
foranysafety problems. However, theimporter must stillapply foracertificate ofconformity.
Ifaproduct thathasbeenimported intothecountry isfound topresent aserious danger tothe
health ofthepopulation orenvironment, acommission willbeestablished toreview thematter. The
commission willconsist ofrepresentatives fromtheMinistry ofHealth, Kyrgyzstandard, theMinistry
ofEnvironmental Protection, theMinistry ofAgriculture andFood Products andtheChamber ofTrade
andIndustry. Thecommission mayeither order thattheproduct bereturned tothesupplier ordestroyed.
Other Laws ThelawOntheSanitary-Epidemiological Well-Being ofthePopulation andthelawOn
theProtection oftheHealth ofthePopulation authorize theMinistry ofHealth toconduct sanitary
supervisory operations. Sanitary norms andrules areapproved bytheChief State Physician ofthe
Kyrgyz Republic andaresubject tocompulsory publication. TheStateSanitary Inspection under the
Ministry ofHealth hastherighttodevelop andreview draftsanitary standards.
2. Information Regarding:
(a) Thenames ofpublications, ifany,onwork relating todraft technical regulations orstandards
andprocedures
Such publications canbefound inKyrgyzstandard ’smonthly periodical, Bulletin ofCurrent
Information ofKyrgyzstandard.
(b) Thenames andaddresses oftheenquiry points foreseen inArticles 10.1and10.3ofthe
WTO Agreement onTechnical Barriers toTrade (theAgreement) withanindication as
towhether theyarefully operational
Official information on(i)Statestandards under preparation, (ii)existing Statestandards, (iii)the
nationalstandardsofotherStatesand(iv)internationalstandardsisregularlypublishedbyKyrgyzstandard
andisreadily available tothepublic. Theaddresses andtelephone/fax numbers oftheStateagencies
having information onstandards areasfollows:
State Inspectorate onStandardization andMetrology (Kyrgyzstandard)
197Panfilov Street
Bishkek 720040
Phone: (7/8) 3312 264-862, 227-884
Fax: (7/8) 3312 264-708
Ministry ofArchitecture andConstruction oftheKyrgyz Republic
28Belinsky Street
Bishkek 720001
Phone: (7/8) 3312 217-432
Fax: (7/8) 3312 217-553WT/ACC/KGZ/3
Page145
Ministry ofEnvironmental Protection oftheKyrgyz Republic
131Isanov Street
Bishkek 720033,
Phone: (7/8) 3312 219-737
Fax: (7/8) 3312 216-763
(c) Thename andaddress oftheagency dealing withconsultations asforeseen inArticle 14
oftheAgreement
Kyrgyzstandard, theMinistry ofArchitecture andConstruction andtheMinistry ofEnvironmental
Protection currently handle suchconsultations. Contact information insubsection b.above.
(d) Thenames andaddresses oftheagencies dealing withspecific functions foreseen inthe
Agreement
Kyrgyzstandard, theMinistry ofArchitecture andConstruction andtheMinistry ofEnvironmental
Protection. Contact information insubsection (b)above.
(e) Thescope ofresponsibility oftheCentral Government authorities intheareaofnotification
requirements foreseen inArticle 10.11 oftheAgreement andofindividual government
authorities, iftheresponsibility isdivided among twoormore suchauthorities
Kyrgyzstandard, theMinistry ofArchitecture andConstruction andtheMinistry ofEnvironmental
Protection. Contact information insubsection (b)above.
(f) Measures andarrangements toensure thatnational andsub-national authorities preparing
new technical regulations orsubstantial amendments toexisting ones provide early
information ontheir proposals
Technical Committees (seethedescription inSection 1above ofthelawOnStandardization)
arrange andperform thedrafting, conformity review andpreparation ofdraftnormative documents
onstandardization. These documents mustthenbereviewed, approved andadopted byKyrgyzstandard.
Technical Committees alsodealwithwork oninternational (regional) standardization. Information
isprovided byKyrgyzstandard andpublished initsmonthly periodical, Bulletin ofCurrent Information
ofKyrgyzstandard.WT/ACC/KGZ/3
Page146
ANNEX 6
INFORMATION ONSTATE-TRADING
1. Enumeration ofState-Trading Enterprises
Does your country maintain enterprises covered byprovisions ofArticle XVII? Ifso,listthe
products orgroups ofproducts forwhich aState enterprise ismaintained orforwhich anenterprise
hasexclusive orspecial privileges
TheGovernment oftheKyrgyz Republic doesnotmaintain enterprises covered bytheprovisions
ofArticle XVII ofGATT 1994. TheKyrgyz Republic doesnotgrant toanyprivate orStateenterprise
anyrights orprivileges intheexercise ofwhich itinfluences through itspurchases orsalesthelevel
ordirection ofimports andexports. Nordoesanyprivate orState enterprise haveanystatutory or
constitutional powers inthisrespect.
However, itshould benoted thatCabinet ofMinisters Resolution No.373, adopted on
25August 1995, OnIncreasing theLiability forUnauthorized Purchase andSaleoftheFragments
andWaste ofNon-Ferrous andFerrous Metals andTheir Industrial Fragments (Resolution No.373)
establishes atemporary listof29enterprises thataregiven theexclusive righttocollect, purchase,
storeandexportdomestic-originfragmentsandwasteofferrousandnon-ferrousmetals.Thelistincludes
bothState-owned andprivate enterprises. Thelistmaybeamended toaddorremove companies;
however, companies thesolebusiness ofwhich istrading orwhich cannot document aneedforsuch
materials maynotbeadded tothelist.Resolution No.373isintended toremain inforce onlyuntil
Parliament enacts alawdealing withthesame subject matter. Itisanticipated thatParliament will
passalawonthismatter initsFall1996 legislative session.
2. Reason andPurpose forIntroducing andMaintaining State-Trading Enterprises
State foreachproduct thereason andpurpose forintroducing andmaintaining theenterprise
(itshould beindicated, forexample, whether thepurpose ortheeffect oftheenterprise isto
prevent prices toconsumers from exceeding certain maximum limits, ortoprotect domestic
producers bythecontrol ofimports and/or thepurchase ofdomestic supplies atabove world price
levels, ortofacilitate export sales, ortofacilitate export sales, ortomake itpossible toestablish
oradminister astabilization arrangement). Adescription ofthelegalprovisions should beincluded
insofarasthishasnotbeen submitted inearlier notifications
According toResolution No.373,thesolereason forintroducing andmaintaining therestrictive
listofenterprises which areallowed tocollect, purchase, storeandexport domestic-origin fragments
andwaste offerrous andnon-ferrous metals istoprevent theplundering (i.e.misappropriation, export
andsale)ofthedomestic supplies ofsuchitems.
3. Description oftheFunctioning ofState-Trading Enterprises
Describe, itembyitem, thefunctioning ofsuchenterprises andstate, inparticular, whether the
enterprises dealwithexports orwithimports, orboth?
These enterprises areallindustrial enterprises which utilize thecontrolled metal waste and
fragments intheiroperations. They havebeengranted therighttoexport suchmaterials asanincident
totheirnormal business activities.WT/ACC/KGZ/3
Page147
Whether private traders areallowed toimport orexport and,ifso,onwhat conditions?
Private traders mayfreely import thecontrolled metal waste andfragments butonlythe
29enumerated companies mayexport. Notethatsome ofthe29enumerated companies areprivate.
Whether there isfreecompetition between private traders andtheState-trading enterprise?
Thecompetition exists withrespect totheimport anddomestic saleofthecontrolled metal waste
andfragments; competition exists onlyamong theenumerated 29companies forexport sales.
Thecriteria usedfordetermining thequantities tobeexported andimported.
There arenosuchcriteria.
How export prices aredetermined; howthemark-up onimported products isdetermined; how
export prices andthere-sale prices ofimports compare withdomestic prices.
Allprices aredetermined bythemarket.
Whether long-term contracts arenegotiated bytheState-trading enterprise; whether State-trading
methods areusedtofulfil contractual obligations entered intobytheGovernment?
Theonlyenterprises possibly falling within thedefinition ofState-trading enterprises arethe
29enterprises mentioned inResolution No.373,asalready described above. Those enterprises are
freetonegotiate long-term contracts. TheGovernment hasnocontractual obligations withthese
enterprises. (State-trading methods arenotusedtofulfil contractual obligations entered intobythe
Government.)
4. Statistical Information
Resolution No.373wasadopted on25August 1995. Therefore, therequested statistical data
onthepurchase, collection, storing andexport oftheconcerned ferrous andnon-ferrous metal items
isnotavailable.
5. Reasons whynoforeign trade hastaken place (ifthisisthecase) intheproducts affected
Thissection isnotapplicable.
6. Additional information
None.WT/ACC/KGZ/3
Page148ANNEX 7
SERVICES
Type ofService Regulatory Authorities Licensing Requirements
1. BUSINESS SERVICES
(a) Professional services
(i)Legal Services TheMinistry ofJustice licences lawyers
inprivate practice, other thanadvocates,
whooffer legalservices tothepublic.
Such private practice lawyers maynot
provide legalservices inconnection with
criminal matters.
TheCollege ofAdvocates ineach
jurisdiction administers theLawon
Advocates of11November 1980 within
thatjurisdiction. Itdetermines whether
therequirements formembership have
beenmet.Membership inaCollege of
Advocates entitles themember tooffer
alltypes oflegalservices within that
jurisdiction tothepublic. Advocates do
notrequire alicence from theMinistry
ofJustice. TheCollege, aprivate
organization, isresponsible for
supervising anddisciplining its
members.Toobtain aprivate practice licence, anindividual applicant must havegraduated
from arecognized legaleducation institution andhaveatleastthree years of
post-education practical experience asalawyer. Theapplicant must alsopassanoral
examination attheMinistry ofJustice, which hassome discretion indeciding
whether toissue thelicence. AKyrgyz legalentity canobtain alicence ifitscharter
specifically states thatitmayoffer legalservices anditemploys alicensed private
practice lawyer. Aforeign individual legally resident inKyrgyzstan mayobtain a
private practice licence onthesame conditions asaKyrgyz citizen. There areno
restriction ontheforeign ownership ofaKyrgyz legalentity offering legalservices.
Only citizens oftheKyrgyz Republic maybeadvocates. They must havegraduated
from arecognized legaleducation institution andhaveeither (i)completed an
internship withtheCollege ofAdvocates ofatleastsixmonths or(ii)atleasttwo
years ofpost-education practical experience asalawyer. Anadvocate maynot
represent orbeotherwise involved inanyState organization, withtheexception of
State educational orscientific organizations.WT/ACC/KGZ/3
Page149Type ofService Regulatory Authorities Licensing Requirements
(ii)Accounting,
Auditing and
Bookkeeping
ServicesTheCouncil ofAuditors, amixed
organization ofprivate professionals and
government officials, isresponsible for
licensing auditors whooffer auditing
services tothepublic. Thegeneral
licensing requirements andprocedures
aresetforth intheTemporary
Regulations onAuditing Activity
contained inCabinet ofMinisters
Resolution No33of26January 1993.
Twosetsofmore detailed implementing
regulations were issued bytheMinistry
ofEconomy andFinance on13
September 1993: (i)theRegulations on
theLicensing Procedure forAuditing
Activity and(ii)theRegulations onthe
Testing Required forObtaining an
Auditing Licence.Inorder toobtain alicence tooffer auditing services tothepublic, anindividual
must passatestestablished bytheTesting Commission oftheCouncil ofAuditors.
Inaddition, theapplicant must (i)havenever beenconvicted ofbribery, acrime
against property, counterfeiting ofmoney orsecurities, orthefalsification of
documents; (ii)havegraduated from ahigher education institution andpossess a
diploma ineconomics orlaw,orinatechnical, sociological oragricultural
discipline; (iii)havesuccessfully completed acourse inauditing conducted bythe
Council ofAuditors; (iv)haveatleastfiveyears ofpost-education practical work
experience, ofwhich atleast4years involved work asanauditor, accountant,
economist orlawyer. Ifhigher education requirement isnotmet,theapplicant must
haveatleasteight years ofpractical work experience asanemployee inanauditing
firm, asanassistant ofanindividual auditor, asagovernment auditor, orasan
accountant, economist, orlawyer; (v)beacitizen oftheKyrgyz Republic; and
(vi)haveastainless reputation
Alegalentity mayobtain anauditing licence ifitemploys anindividual holding a
licence. There isnorestriction ontheforeign ownership ofsuchanentity.
(iii)TaxServices None. None.
(iv)Engineering
Services
(v)Architectural
ServicesPursuant totheLicensing Decree of
19June1992, theState Committee on
Architecture andConstruction (now the
Ministry ofArchitecture and
Construction) issued regulations on
10February 1995 requiring thelicensing
ofallproviders ofthefollowing:Under theMinistry ofArchitecture andConstruction ’sregulations of
10February 1995, thelicensing oftheconcerned services istobehandled bythe
Ministry ’s“Licence-Tender Centre. ”TheMinistry must issue ordenythe
concerned licence within 30days; however, a60dayperiod isprovided forincases
where theapplication requires ahighlevelofexpertise review. Denials must bein
writing andcontain anexplanation ofthereason forthedenial. TheMinistry may
include restrictions inthelicence limiting thetypes ofservices thelicensee may
offer.
(vi)Integrated
Engineering
Servicescityplanning services; architectural and
engineering design services forthe
design ofresidential, public and
industrial buildings andstructures;Licences expire afteroneyear, butmaybeannually renewed. Licences foralltypes
ofengineering, architectural ,construction andrelated services areissued ona
case-by-case basis bytheMinistry.WT/ACC/KGZ/3
Page150Type ofService Regulatory Authorities Licensing Requirements
(vii) Urban
Planning and
Landscape
Architectural
Servicesconstruction services; certification
testing services rendered forthepurpose
ofcertifying theconformity ofbuilding
materials andstructural components with
applicable standards; engineering
inspection services forbuildings and
other structures; repair, renovation,
reconstruction andreinforcement services
forbuildings andother structures;
quality control services rendered to
assure thequality ofengineering and
architectural designs, building materials
andstructural components, buildings and
other structures, construction services.Detailed regulations governing thelicensing ofeachtypeofservice havenotbeen
promulgated. Generally, theMinistry willdecide toissue ordenythelicence after
making adetermination oftheapplicant ’sability toadequately perform the
concerned services. Inmaking thisdetermination, theMinistry willconsider ,as
applicable, thefollowing factors: (i)pasthistory ofperformance, taking intoaccount
thecomments supplied bytheapplicant ’slargest clients (notrequired offirsttime
applicants), (ii)therecommendations andconclusions ofexperts; (iii)whether the
applicant hasanadequate system ofquality control; (iv)thepresent technological
capability oftheapplicant including itsability andintention toacquire thenecessary
equipment; (v)theintended useofqualified licensed subcontractors toperform
work requiring expertise beyond theapplicant ’sability; (v)thequality ofthe
applicant ’sspecialists. Licence forarchitectural and/or engineering design services
willonlybeissued iftheapplicant holds theappropriate credentials or,incasethe
applicant isalegalentity, employs aperson holding suchcredentials.
Under theLicensing Decree, the
construction ofdams andreservoirs
requires alicence from theMinistry of
Water Resources. Thelicence maybe
issued onlywiththeconsent ofMinistry
ofGeology andMineral Resources. No
specific regulations exist. Applications
willbereviewed onacase-by-case basis.None specified.
Under theLicensing Decree, the
rendering ofservices connected with
geological/geodesic engineering or
research orwiththeproduction of
geologic/geodesic maps andcartographic
works must belicensed bytheState
Department ofGeodesy andCartography
under theMinistry ofGeology and
Mineral Resources. Nospecific
regulations exist. Applications reviewed
oncase-by-case basis.None specified.WT/ACC/KGZ/3
Page151Type ofService Regulatory Authorities Licensing Requirements
(viii) Health Care
ServicesUnder Licensing Decree, aprovider of
for-pay health careorpharmacological
services tothepublic must belicensed
bytheMinistry ofHealth.Theregulations establishing therequirements anapplicant must meetinorder to
obtain alicence tooffer for-pay health careorpharmacological services aresetforth
inOrder No45oftheMinistry ofHealth of14February 1994. Applicants must
havetheappropriate training andholdadiploma andacertificate from arecognized
medical education institution inKyrgyzstan. Anyperson legally resident in
Kyrgyzstan whoholds adiploma from aforeign medical education institution that
provides medical training equivalent tothatprovided byrecognized medical
education institutions inKyrgyzstan mayobtain alicence. Thelicence mayrestrict
thetypes ofservices thatthelicensee mayoffer. righttopaidmedical and
pharmaceutical activity.
(ix)Veterinary
ServicesUnder theLicensing Decree, aprovider
ofveterinary services must belicensed
bytheState Veterinary Inspectorate
under theMinistry ofAgriculture and
FoodTheLaw“OnVeterinary Science ”of6March 1992 establishes therequirements an
applicant must meettoobtain alicence tooffer veterinary services. On11January
1993, theState Veterinary Inspectorate issued “Regulations ontheProcedure for
Licensing Veterinary Activity ”governing theprocedure oflicensing. Individual
citizens andforeigners legally resident inKyrgyzstan mayapply foraveterinary
licence. Theapplicant must haveadiploma evidencing theappropriate training.
Theapplicant must passaveterinary testandbecertified byhisorherlocalbranch
oftheState Veterinary Inspectorate. Thefacilities where theservices willbe
rendered must alsobecertified asmeeting theapplicable sanitary conditions. Legal
entities mayalsobelicensed iftheyemploy alicensed veterinary. There areno
restrictions ontheforeign ownership ofsuchalegalentity.
(x)Services
provided by
midwives, nurses,
physiotherapists
andpara-medical
personnelSeeitem(viii) above Seeitem(viii) above.
(b) Computer andRelated Services
(i)Consultancy
services related to
theinstallation of
computer hardwareNone. None.
(ii)Software
implementation
servicesNone. None.WT/ACC/KGZ/3
Page152Type ofService Regulatory Authorities Licensing Requirements
(iii)Data
processing servicesNone. None.
(iv)Database
servicesNone. None.
(c) Research andDevelopment Services
(i)R&D services
onnatural sciencesNone. None.
(ii)R&D services
onsocial sciences
andhumanitiesNone. None.
(iii)
Interdisciplinary
R&D servicesNone. None.
(d) RealEstate Services
(i)Involving own
orleased propertyNone. None.
(ii)Onafeeor
contract basisNone. None.
(e) Rental/Leasing Services Without Operators
(i)Relating to
ShipsNone. None.
(ii)Relating to
AircraftNone. None.
(iii)Relating to
other transport
equipmentNone. None.
(iv)Relating to
other machinery
andequipmentNone. None.WT/ACC/KGZ/3
Page153Type ofService Regulatory Authorities Licensing Requirements
(f) Other Business Services
(i)Advertising
servicesNone. None.
(ii)Market
research andpublic
opinion polling
servicesNone. None.
(iii)Management
consulting servicesNone. None.
(iv)Services
related to
management
consultingNone. None.
(v)Technical
testing andanalysis
servicesProviders ofthefollowing services must
beaccredited bytheState Inspectorate on
Standardization andMetrology
(Kyrgyzstandard):
services involving thecalibration or
repairing ofmeasuring equipment;
services involving thecertification of
goods andservices asbeing in
compliance withapplicable standards.Theprovider must havenecessary facilities; other requirements notspecified.
Providers ofthefollowing services must
belicensed bytheLicence-Tender Centre
oftheMinistry ofArchitecture and
Construction:Theprovider must beanon-commercial organization; other requirements not
specified.
services involving thetesting ofbuilding
materials andstructural components for
thepurpose ofcertifying compliance with
applicable standards;SeeSection 1(a)(iv) ofthisAnnex 7.
construction engineering testing services. SeeSection 1(a)(iv) ofthisAnnex 7.WT/ACC/KGZ/3
Page154Type ofService Regulatory Authorities Licensing Requirements
(vi)Services
incidental to
agriculture, hunting
andforestryTheState Agency onForestry andthe
Ministry ofEnvironmental Protection
regulate andlicence allforestry, hunting
andbirdcatching activities. The
Ministry ofAgriculture andFood
regulates agricultural activity. There are
nospecific lawsorregulations governing
therendering ofservices incidental to
agriculture, hunting orforestry.None.
(vii) Services
incidental tofishingTheMinistry ofEnvironmental
Protection regulates industrial fishing and
thefishing ofrarekinds offish. There
arenospecific lawsorregulations
governing therendering ofservices
incidental tofishing.None.
(viii) Services
incidental tominingTheMinistry ofGeology andMineral
Resources regulates activities involving
searching for,exploring andexploiting
minerals.
Under theLicensing Decree, the
rendering ofservices connected with
geological/geodesic engineering or
research orwiththeproduction of
geologic/geodesic maps andcartographic
works must belicensed bytheState
Department ofGeodesy andCartography
under theMinistry ofGeology and
Mineral Resources. Nospecific
regulations exist. Applications reviewed
oncase-by-case basis.None specified.
(ix)Services
incidental to
manufacturingNone. None.WT/ACC/KGZ/3
Page155Type ofService Regulatory Authorities Licensing Requirements
(x)Services
incidental toenergy
distributionNone. None.
(xi)Placement and
supply services of
personnelFor-pay employment agencies must
obtain alicence from theMinistry of
Labour andSocial Security.Thelicensing requirement forfor-pay employment agencies iscontained intheLaw
“OntheEmployment ofthePopulation ”of20April 1991. Thelicensing procedure
issetforth inthe“Regulations ontheTerms andConditions andLicence Procedure
forCommercial Organizations Rendering For-Pay Services Related toProfessional
Orientation, Improvement ofProfessional Status orTraining ofCitizens foraNew
Job,”of24January 1995. Nospecific qualifications orrestrictions areprovided.
(xii) Investigation/
SecurityPrivate detectives, security guards,
detective agencies andsecurity guard
enterprises must belicensed bythe
Ministry ofInterior.TheLaw“OntheGeneral Principles ofDestatization andPrivatization and
Entrepreneurship ”of29December 1991 stipulates thatprivate providers ofdetective
andguard services must belicensed bytheMinistry ofInterior. However, nolawor
regulations haveyetbeenenacted orissued establishing either thelicensing
procedure ortheorthequalification requirements.
(xiii) Related
scientific and
technical consulting
servicesNone. None.
(xiv)
Maintenance/ repair
ofequipment (not
including maritime
vessels, aircraft or
other transport
equipment)Providers ofservices involving therepair
ofmeasuring equipment must belicensed
byKyrgyzstandard.Theprovider must havenecessary facilities; other requirements notspecified.
Providers ofrepair services forhunting,
sports andother arms must belicensed
bytheMinistry ofInterior.Notspecified.
(xv)Building
cleaning servicesNone. None.
(xvi) Photographic
servicesNone. None.
(xvii) Packaging
servicesNone. None.WT/ACC/KGZ/3
Page156Type ofService Regulatory Authorities Licensing Requirements
(xviii) Printing,
publishingPrinters, producers, publishers and
persons trading inpornographic and
erotic products must belicensed byState
Concern “Akyl. ”Whether anitemisclassifiable aspornographic orerotic isdetermined byaspecial
commission attheMinistry ofJustice. Iftheitem issoclassified, anyprinter,
publisher, producer orperson trading insuchitemmust belicensed bytheState
Concern “Akyl. ”Nospecific licensing procedures orqualification requirements
havebeenpromulgated.
(xix) Convention
ServicesNone. None.
(xx) Other None. None.
2. COMMUNICATION SERVICES
(a) Postal Services
i.Postal services Providers ofprivate postal services must
belicensed bytheMinistry of
Communication.TheMinistry ofCommunication ’sTemporary Regulations OnGranting Licences for
Activities intheCommunications Sphere of27January 1994 require private postal
service providers tobelicensed, butdonotspecify thelicensing procedure orthe
qualifications required toobtain alicence.
(b) Courier Services
(i)Courier
Services.None. None.
(c) Telecommunication Services
(i)
Telecommunication
ServicesProviders ofthefollowing
telecommunication services must be
licensed bytheMinistry of
Communication:
localtelephone network services;
datatransfer services;
audio-conference services;
video-conference services;
cellular telephone services;
paging services;
radio broadcasting,
television broadcasting;
digital transmission services; and
international communication services.The“Temporary Regulations OnGranting Licences forActivities inthe
Communications Sphere ”of27January 1994 require providers ofthespecified
services toblicensed, butonlyspecify thattheprovider havethenecessary and
appropriate equipment. Neither thelicensing procedure norother qualifications are
specified.WT/ACC/KGZ/3
Page157Type ofService Regulatory Authorities Licensing Requirements
(d)Audiovisual Services
(i)Motion picture
andvideo tape
production and
distribution servicesPersons orlegalentities organizing or
showing cinema orvideo productions
having erotic orpornographic content
must belicensed byState Concern
“Kyrgyzalco. ”Whether anitemisclassifiable aspornographic orerotic isdetermined byaspecial
commission attheMinistry ofJustice. Iftheitem issoclassified, anyprinter,
publisher, producer orperson trading insuchitemmust belicensed bytheState
Concern “Akyl. ”Nospecific licensing procedures orqualification requirements
havebeenpromulgated.
(ii)Motion picture
projection serviceNone. None.
(iii)Radio and
television servicesNone. None.
(iv)Radio and
television
transmission
servicesProviders oftelevision and
radio-broadcasting transmission services
must belicensed bytheMinistry of
Communication.Under theMinistry ofCommunication ’s“Temporary Regulations OnGranting
Licences forActivities intheCommunications Sphere ”of27January 1994, the
department within theMinistry responsible forfrequency control andallocation must
issue alicence entitling thelicensee tobroadcast within theconcerned frequency
range andataspecified signal strength. Theapplicant must provide thedepartment
withdataabout itscommunication equipment. Such equipment must alsobecertified
bytheCentre ofCertification oftheRegional Community inthesphere of
communication.
(v)Sound
recordingNone. None.
(vi)Other None. None.
(e)Other Communication Services None.
3. CONSTRUCTION AND RELATED ENGINEERING SERVICES
(i)General
construction work
forbuildingsSeeSection 5(g)ofPartVIofthis
MemorandumSeeSection 5(g)ofPartVIofthisMemorandum.
(ii)General
Construction Work
forCivil
EngineeringSeeSection 5(g)ofPartVIofthis
Memorandum.SeeSection 5(g)ofPartVIofthisMemorandum.
(iii)Installation
andAssembly
WorkSeeSection 5(g)ofPartVIofthis
Memorandum.SeeSection 5(g)ofPartVIofthisMemorandum.WT/ACC/KGZ/3
Page158Type ofService Regulatory Authorities Licensing Requirements
(iv)Building
Completion and
Finishing workSeeSection 5(g)ofPartVIofthis
Memorandum.SeeSection 5(g)ofPartVIofthisMemorandum.
(v)Other SeeSection 5(g)ofPartVIofthis
Memorandum.SeeSection 5(g)ofPartVIofthisMemorandum.
4. DISTRIBUTION SERVICES
(i)Commission
Agents ’ServicesNone. None.
(ii)Wholesale
Trade ServicesNone. None.
(iii)Retailing
ServicesGenerally, allphysical andlegalentities
desiring toengage inretail trade must be
licensed bytheappropriate localState
administration body.Allenterprises engaged inretail trade arerequired tohavecashcontrol system and
devices
Retail trade inthefollowing items
requires aspecial licence:Qualifications foralicence arenotspecified inlaworregulations.
Licensing procedures arenotspecified.
Alcoholic beverages, liqueurs andspirits.
Retailers must havealicence from State
Concern “Kyrgyzalco ”required.Kyrgyzalco ispreparing regulations governing thequalification required foralicence
andtheprocedure tobefollowed. However, nosuchregulations arecurrently in
effect
Pornographic anderotic materials.
Licence from State Concern “Akyl”.SeeSection 1(f)(xviii) ofthisAnnex 7.
Precious metals. Retailers require a
licence from thePrecious Metals
Management Department intheMinistry
ofFinance.Neither licensing procedure norrequired qualifications arestipulated bylawor
regulation.
(iv)Franchising None. None.
(v)Other None. None.WT/ACC/KGZ/3
Page159Type ofService Regulatory Authorities Licensing Requirements
5. EDUCATIONAL SERVICES
(i)Primary
Education ServicesAllproviders ofeducational services
must belicensed bytheMinistry of
Education andScience. Seealso
Section 5(d)ofPartVIofthis
Memorandum.TheMinistry ofEducation andScience ’s“Regulations ontheLicensing of
Educational Institutions ”of25August 1993 establish thequalifications necessary for
licensing. Theapplicant must havethenecessary educational materials andtechnical
equipment required bytheState educational standards applicable toallsuch
educational institutions. Those standards arepromulgated bytheMinistry of
Education andScience. Theapplicant must alsosubmit (i)itsproposed curricula,
(ii)literature onitsteaching methodology; (iii)adescription ofthenumber and
qualifications ofitsteaching staff, 80%ofwhom must befull-time employees of
theinstitution; and(iv)afinancial statement. SeealsoSection 5.dofPartVIofthis
Memorandum.
(ii)Secondary
Education ServicesSame asitem(i)above. Same asitem(i)above.
(iii)Higher
Education ServicesSame asitem(i)above. Same asitem(i)above. Inaddition, atleast30%oftheteaching staffmust have
post-graduate degrees.
(iv)Adult
EducationSame asitem(i)above. Same asitem(i)above.
(v)Other
education servicesSame asitem(i)above. Same asitem(i)above.
6. ENVIRONMENTAL SERVICES
(i)Sewage
ServicesNone. None.
(ii)Refuse
Disposal ServicesNone. None.
(iii)Sanitation and
Similar ServicesProviders offor-pay sanitary and
epidemiological services tothepublic
must belicensed bytheMinistry of
Health.Upon thesubmission ofanapplication foralicence, theMinistry ofHealth
establishes acommission toexamine andreview thequalifications oftheapplicant.
Thecommission thencertifies theapplicant ’scompetence totheMinistry ofHealth,
which issues alicence based onthiscertification. Noqualification requirements are
specified bylaworregulation.
(iv)Other None. None.WT/ACC/KGZ/3
Page160Type ofService Regulatory Authorities Licensing Requirements
7. FINANCIAL SERVICES
(a) AllInsurance andInsurance-Related Services
(i)General
InformationAllproviders ofcompulsory orvoluntary
personal, property orliability insurance
must belicensed bytheKyrgyz State
Insurance Inspectorate (KSII).TheLawOnInsurance of18December 1991 authorizes theKSIItoregulate the
insurance industry. On29January 1993, KSIIpromulgated itsRegulations onthe
Procedure forRegistering andLicensing Insurance Companies. These Regulations
onlysetupalicensing regime forinsurance providers. Noregistration provisions
arecontained inthese regulations. Every insurance provider must conduct business
through aKyrgyz legalentity having minimum assets of20,000 or50,000 soms,
depending onthetypeofinsurance being provided. Innocasemayaninsurer
insure ariskforanamount exceeding 10%ofthetotalamount ofitsassets (the
amount ofcharter capital maybeincluded indetermining thetotalamount of
assets).
Furthermore, aninsurer issubject tocertain aggregate limits ontheamount ofriskit
mayinsure; these “ceilings ”varydepending onthetypeofriskbeing insured.
There arenorestrictions onforeign ownership ofinsurance companies. There are
norestrictions ontheamount thatmaybere-insured withother insurance companies,
including foreign insurance companies. Aprovider ofpersonal insurance,
automobile liability insurance and/or individual property insurance must havetotal
assets ofatleast20thousand soms. Aprovider ofcredit insurance, freight
insurance, business property insurance and/or financial riskinsurance must have
totalassets ofatleast50thousand soms.
(ii)Life, accident
andhealth
insurance servicesSeeitem(i)above. Life, illness, injury andmedical insurance areclassified as“personal ”insurance.
(iii)Non-life
insurance servicesSeeitem(i)above. Property insurance includes: (i)insurance oftheproperty oflegalentities;
(ii)insurance oftheproperty ofindividuals; (iii)freight insurance; (iv)financial
risk(credit) insurance; (v)other kinds ofproperty insurance.
Liability insurance includes: (i)insurance ofliability fornon-fulfilment of
obligations; (ii)insurance ofliability ofenterprises: sources ofheightened danger;
(iii)insurance ofcivilliability ofowners ofmotor vehicles; (iv)insurance of
professional liability; (v)insurance oftransporters ’responsibility; (vi)insurance
ofother kinds ofcivilresponsibility
(iv)Reinsurance
andretrocessionNoprovisions inlaworregulations. Noprovisions inthelaworregulations.WT/ACC/KGZ/3
Page161Type ofService Regulatory Authorities Licensing Requirements
(v)Services
auxiliary to
insurance
(including broking
andagency
services)Noprovisions inlaworregulations. Noprovisions inlaworregulations.
(b)Banking andOther Financial Services (Excluding Insurance)
(i)Acceptance of
deposits andother
repayable funds
from public;SeeSection 5(e)ofPartVIofthis
MemorandumSeeSection 5(e)ofPartVIofthisMemorandum.
(ii)Lending ofall
types, including
interalia,consumer
credit, mortgage
credit, factoring
andfinancing of
commercial
transaction;National Bank oftheKyrgyz Republic
(NBKR) -supervises banks ’activity;
grants acommon licence forbank
transactions andanadditional onefor:
(iii)Financial
leasing;1.attraction andallocation ofdeposits on
itsownbehalf inforeign currency on
terms ofrepayability, solvency and
urgency byagreement withBorrower;
(iv)Allpayment
andmoney
transmission
services2.purchase andsaleofprecious metals
(except forgold, silver, platinum),
natural precious stones andarticles made
ofthem intheKRandoutside the
Republic;
(v)Guarantees and
commitments;3.attraction andallocation ofprecious
metals (except forgold, silver, platinum)
ontoaccounts anddeposits,
implementation ofother transactions with
these values incompliance with
international bankpractice;WT/ACC/KGZ/3
Page162Type ofService Regulatory Authorities Licensing Requirements
(vi)Trading for
ownaccount orfor
account of
customers, whether
onanexchange, in
anover-the-counter
market or
otherwise, the
following:
-money market
instruments
(cheques, bills,
certificate of
deposits, etc.);
-foreign exchange;
-derivative
products include.,
butnotlimited to,
futures andoptions;
-exchange rateand
interest rate
instruments,
including products
suchasswaps,
forward rate
agreements, etc.;
-transferable
instruments and
financial assets,
including bullion4.other transactions incompliance with
international bankpractice specially
mentioned inthelicence.WT/ACC/KGZ/3
Page163Type ofService Regulatory Authorities Licensing Requirements
(vii) Participation
inissues ofall
kinds ofsecurities,
including
under-writing and
placement asagent
andprovision of
service related to
suchissuesState Securities Inspectorate (SSI). LawOnSecurities andStock Exchanges of21December 1991 (asamended on
16April 1994, 27May1994, 23June1995, 28September 1995 and
10October 1995. Regulations ontheProcedure forGranting aCertificate toa
Specialist fortheRight toConduct Professional Securities Activity of
23November 1995 requires adocument confirming thesufficiency oftheapplicant ’s
resources. Acandidate must beemployed byalicensed securities professional. The
SSImust haveaccepted theadequacy ofthedocuments presented. Thecandidate
must havenocriminal records for(i)crimes against property, (ii)bribery,
(iii)forgery ofdocuments, banknotes orsecurities, (iv)commercial crimes, or
(v)violation oftaxlaw. Thecandidate must alsopossess thenecessary levelof
professional knowledge defined bytheSSI’squalification commission.
(viii) Money
BrokingNone. None.
(ix)Asset
management, such
ascashand
portfolio
management, all
forms ofcollective
investment
management,
pension fund
management,
custodial depository
andtrustservicesTheSSIhastheauthority toregulate the
persons offering professional securities
services. Thisincludes regulation of
investment funds andinvestment fund
managers, affiliated persons and
depositories. Italsoissues licences to
specialized investment funds and
depositories.TheRegulations onInvestment Funds of22February 1995 requires thatthecharter
fundoftheInvestment Fund must beprovided from thefounders ownresources and
maynotbelessthan1500 minimum salaries, except foraspecialized investment
fund, thecharter fundofwhich maynotbelessthan750minimum salaries (on
15July1996 a“minimum salary ”was75soms). TheInvestment Fund must
publicly offer itsstock within three months from themoment ofregistering its
securities. TheInvestment Fund isobliged toenter intoadepository agreement that
complies withtheModel Depository Agreement. Allassets andsecurities ofthe
investment fundmust bekeptintheconcerned depository. Allmonetary accounts
andtransactions withthefund’ssecurities must beimplemented onlythrough
concerned depository.
Under theRegulations onDepositories andtheRegulations onSpecialized Registrars
of19April 1995 andtheRegulations onDepository Licensing of26January 1996,
depository activity maybeimplemented onlyby:investment institutes (except for
investment consultants, investment funds andspecialized investment funds); banks;
central depository, implementing depository activity, organization ofmonetary
accounts andclearing ofliabilities andrequirements appearing from securities
transactions. Their minimum Charter Capital must be5million soms andtheymust
havespecialists withacertificate fortherighttosecurities transactions intheirstaff.
Executive Directors (managing heads, managers) andtheirdeputies, supervisors of
depository subdivisions aresubject toobligatory examination.WT/ACC/KGZ/3
Page164Type ofService Regulatory Authorities Licensing Requirements
Ministry ofLabour andSocial Security-
activity ofthenon-State pension fund.Notstipulated bythelegislation
(x)Settlement and
clearing services
forfinancial assets,
including securities,
derivative products
andother
negotiable
instrumentsSeeitem(vi)above. Seeitem(vi)above.
(xi)Advisory and
other auxiliary
financial services
onalltheactivities
listed inArticle 1B
of
MTN.TNC/W/50,
including credit
reference and
analysis, investment
andportfolio
research and
advice, advice on
acquisitions andon
corporate
restructuring and
strategyNone. None. There arenoprovisions restricting thisactivity inanylaworregulation.WT/ACC/KGZ/3
Page165Type ofService Regulatory Authorities Licensing Requirements
(xii) Provision
andtransfer of
financial
information and
financial data
processing and
related software by
providers ofother
financial services.None. None. There arenoprovisions regulating thisactivity inanylaworregulation.
Note however thatprivate appraisal services must belicensed.
8. HEALTH RELATED AND SOCIAL SERVICES
(i)Hospital
ServicesSeeSection 5(c)ofPartVIofthe
Memorandum anditem1.a.viii ofthis
Annex 7.SeeSection 5(c)ofPartVIoftheMemorandum anditem1(a)(viii) ofthisAnnex 7.
(ii)Other Human
Health ServicesSeeSection 5(c)ofPartVIofthe
Memorandum anditem1.a.viii ofthis
Annex 7.SeeSection 5(c)ofPartVIoftheMemorandum anditem1(a)(viii) ofthisAnnex 7.
(iii)Social Services None. None.
(iv)Other None. None.
9. TOURISM AND TRAVEL RELATED SERVICES
(i)Hotels and
Restaurants
(including catering)None. Notstipulated bylegislation.
(ii)Travel Agencies
andTour Operators
ServicesMinistry ofTourism andSport -for
tourist-excursion andalpine activity.Regulations ontheLicensing Procedure forTourist-Excursion andAlpine Activity,
approved byOrder No.114oftheMinistry ofTourism andSport of
16March 1996.
(iii)Tourist Guides
ServicesSeeitem(ii)above. Seeitem(ii)above.
(iv)Other Seeitem(ii)above. Seeitem(ii)above.WT/ACC/KGZ/3
Page166Type ofService Regulatory Authorities Licensing Requirements
10. RECREATIONAL, CULTURAL AND SPORTING SERVICES (other thanaudiovisual services)
(i)Entertainment
Services (incl.
theatre, livebands
andcircus services)Ministry ofInterior -forthecreation and
maintaining ofgambling-houses,
organization ofgames ofchanceNotstipulated bylegislation.
(ii)News Agency
ServicesNone. Notstipulated bylegislation.
(iii)Libraries,
Archives, Museums
andOther Cultural
ServicesNone. Notstipulated bylegislation.
(iv)Sporting and
Other Recreational
ServicesNone. Notstipulated bylegislation.
(v)Other None. Notstipulated bylegislation.
11. TRANSPORT SERVICES
(i)Maritime
Transport ServicesNone. Notprovided forinlegislation
(ii)Internal
Waterways
TransportMinistry ofTransportation Notprovided forinlegislation
(iii)AirTransport
ServicesSeeSection 5(f)ofPartVIofthis
Memorandum. Ministry of
Transportation -(i)fortransportation by
air,airworks andother kinds ofactivity
related touseofaircraft -(ii)licensing
offoreign airenterprises for
implementation ofairtransportation and
airworks within theKR.AirCode oftheKRof15April 1994. Certification isrequired inorder toget
licence. Certification means determination ofauthorities, permission, restriction and
prohibition forthesakeofsecurity. However theGovernment hasnotyetconfirmed
either theprovision oncertification ortheprovision onlicences. These documents
arenowdeveloped bytheNational AirCompany “Kyrgyzstan AbaJoldoru ”.WT/ACC/KGZ/3
Page167Type ofService Regulatory Authorities Licensing Requirements
TheNational AirCompany “Kyrgyzstan
AbaJoldoru ”-certification andlicensing
oftheactivity ontheproduction,
provision withandserving ofaircraft ’
flights, implementation ofairwork and
transportation, training oftheair
personnel.AirCode oftheKRof15April 1994. However, qualification requirements havenot
yetbeendeveloped bythelegislation.
(iv)Space
TransportNone. Notstipulated bylegislation.
(v)RailTransport
ServicesNone. Notstipulated bylegislation.
(vi)Road Transport
ServicesMinistry ofTransportation -for
transportation activity andservices
providing thetransportation process. See
Section 5(f)ofPartVIofthis
Memorandum.Allrequirements areintended tothecompliance oftransport vehicles with
normative-technical requirements.
-Passenger
transportationMinistry ofTransportation (except urban
transportation inBishkek andKarakol
which areregulated bylocalcity
authorities). SeeSection 5(f)ofPartVI
ofthisMemorandum.Regulations onLicensing ofTransportation Activity andTransportation Services,
approved byCabinet ofMinisters Resolution No.655of1September 1994:
(i)implementation ofdaily medical examination ofadriver before thetripandwhen
heisbackfrom theline; (ii)daily control overtechnical condition oftransportation
vehicles before andafterthetrip; (iii)observation oftheregime forterms ofwork
onthelineinorder toprevent thedriver ’soverwork.
Bishkek andKarakol CityAdministration
-fortransportation ofpassengers within
thecity.Examination testforprofessional fitness.
-Freight
transportationSeeSection 5(f)ofPartVIofthis
Memorandum.SeeSection 5(f)ofPartVIofthisMemorandum.
-Rental of
commercial
vehicles with
operatorSeeSection 5(f)ofPartVIofthis
Memorandum.SeeSection 5(f)ofPartVIofthisMemorandum.WT/ACC/KGZ/3
Page168Type ofService Regulatory Authorities Licensing Requirements
-Maintenance and
repair ofroad
transport equipmentMinistry ofTransportation -
maintenance andrepair oftransportation
means. SeeSection 5(f)ofPartVIof
thisMemorandum.SeeSection 5(f)ofPartVIofthisMemorandum.
-Supporting
services forroad
transport vehiclesMinistry ofTransportation -fortransport
-expedition services. SeeSection 5(f)of
PartVIofthisMemorandum.Notstipulated bylegislation.
(vii) Pipeline
Transport ServicesNone. Notstipulated bylegislation.
(viii) Services
Auxiliary toAll
Modes ofTransportNone. Notstipulated bylegislation.
(ix)Other
Transport ServicesNone. Notstipulated bylegislation.WT/ACC/KGZ/3
Page169
ANNEX 8
(a) ListofBilateral Agreements Relating toForeign Trade inGoods andTrade inServices
ListofBilateral Agreements Relating toForeign Trade inGoods andTrade inServices with
Countries Which Were NotPartoftheFormer USSR
Agreement Between theKyrgyz Republic andtheRepublic ofAustria onBilateral Foreign Economic
Relations (Vienna, 30January 1995).
Commercial andEconomic Agreement Between theGovernment oftheRepublic ofKyrgyzstan and
theGovernment ofthePeople ’sRepublic ofBangladesh (Bishkek, 3March 1992).
Agreement Between theGovernment oftheKyrgyz Republic andtheGovernment oftheRepublic of
Bulgaria onTrade-Economic Cooperation (Sofia, 13November 1994).
Trade-EconomicAgreementBetweentheGovernmentoftheRepublicofKyrgyzstanandtheGovernment
ofthePeople ’sRepublic ofChina (Bishkek, 6January 1992).
Agreement Between theGovernment oftheKyrgyz Republic andtheGovernment ofthePeople ’s
Republic ofChina onGuarantees oftheQuality ofImport-Export Products (Beijing, 23October 1995).
Agreement onTrade andEconomic Cooperation Between theRepublic ofKyrgyzstan andtheRepublic
ofCuba (Bishkek, 16January 1992).
Agreement Between theGovernment oftheKyrgyz Republic andtheGovernment oftheCzech Republic
onTrade-Economic Relations andScientific-Technical Cooperation (Bishkek, 1992).
Agreement between theGovernment oftheHungarian Republic andtheGovernment oftheKyrgyz
Republic onTrade-Economic Relations, (Moscow, 7April 1994).
Agreement Between theRepublic ofKyrgyzstan andtheRepublic ofIndiaonCooperation intheFields
ofTrade, Economic Relations andScience andTechnology (Delhi, 18March 1992).
Trade Protocol Between theGovernment oftheKyrgyz Republic andtheIslamic Republic ofIran
(Bishkek, 21October 1993).
ProtocolonTrade-Economic,Scientific-TechnicalandCulturalCooperationBetweentheKyrgyzRepublic
andtheIslamic Republic ofIran(Bishkek, 21October 1993).
Trade Agreement Between theGovernment oftheKyrgyz Republic andtheGovernment ofMalaysia
(Kuala Lumpur, 20July1995).
Agreement Between theGovernment oftheKyrgyz Republic andtheGovernment ofMongolia on
Trade-Economic Cooperation (Ulaanbaatar, 10July1993).
Agreement Between theGovernment oftheRepublic ofKyrgyzstan andtheGovernment oftheRepublic
ofPoland onEconomic Cooperation andTrade (Warsaw, 17June1992).
Agreement Between theGovernment oftheRepublic ofKyrgyzstan andtheGovernment ofRomania
onTrade andTechnical-Economic Cooperation (Bucharest, 18September 1992).WT/ACC/KGZ/3
Page170
Agreement Between theGovernment oftheKyrgyz Republic andtheGovernment oftheSlovak Republic
onTrade-Economic andScientific-Technical Cooperation (Bishkek, 17May1995).
Agreement onTrade Relations Between theRepublic ofKyrgyzstan andtheUnited States ofAmerica
(Washington, 8May1992).
_______________
ListofBilateral Agreements Relating toForeign Trade inGoods andTrade inServices with
Countries Which Were PartoftheFormer USSR
Agreement Between theGovernment oftheKyrgyz Republic andtheGovernment oftheRepublic of
Armenia onFreeTrade (Erevan, 4July1994).
Protocol onWithdrawals from theRegime ofFreeTrade in1994 totheAgreement Between the
Government oftheKyrgyz Republic andtheGovernment ofArmenia onFreeTrade of4July1994
(Erevan, 4July1994).
Agreement Between theGovernment oftheKyrgyz Republic andtheGovernment oftheRepublic of
Kazakstan onFreeTrade (Bishkek, 22June, 1995).
Protocol onWithdrawals fromtheRegime ofFreeTrade totheAgreement Between theGovernment
oftheKyrgyz Republic andtheGovernment ofKazakstan onFreeTrade of22June1995 (Bishkek,
22June1995).
AgreementBetweentheGovernmentoftheKyrgyzRepublicandtheGovernmentoftheLatvianRepublic
onPrinciples ofTrade-Economic Cooperation (Bishkek, 12October 1994).
Agreement Between theGovernment oftheKyrgyz Republic andtheGovernment oftheRepublic of
Moldova onFreeTrade (Minsk 26May1995).
Agreement Between theGovernment oftheRepublic ofKyrgyzstan andtheGovernment oftheRussian
Federation onthePrinciples ofEconomic Cooperation (Bishkek, 8October 1992).
Agreement Between theGovernment oftheRepublic ofKyrgyzstan andtheGovernment oftheRussian
Federation onFreeTrade (Bishkek, 8October 1992).
Protocol onWithdrawals fromtheRegime ofFreeTrade totheAgreement Between theGovernment
oftheRepublic ofKyrgyzstan andtheGovernment oftheRussian Federation onFreeTrade of8October
1992 (Moscow 12July1994).
Agreement Between theGovernment oftheKyrgyz Republic andtheGovernment ofUkraine onFree
Trade (Minsk, 26May1995).
(b) ListofPlurilateral Agreements Relating toForeign Trade inGoods andTrade inServices
TheKyrgyz Republic hasexecuted noneofthefouragreements referred tointheMarrakesh
Agreement asPlurilateral Agreements.WT/ACC/KGZ/3
Page171
(c) ListofMultilateral Agreements Relating toForeign Trade inGoods andTrade inServices
United Nations Convention onAgreements fortheInternational SaleofGoods of11April 1980(Ratified
bytheKyrgyz Republic on31May1995).
Basel Convention onControl ofTransborder Carriage ofDangerous Wastes andtheirLiquidation
of22March 1989 (Ratified bytheKyrgyz Republic on18January 1996).
SeeSections D,EandFofthisAnnex 8forlistsofadditional multilateral trade-related agreements
more properly classifiable as“economic integration, ”“customs union ”or“freetrade”agreements.
(d) ListofEconomic Integration Agreements
Agreement ontheCreation ofanEconomic Union (Moscow, 24September 1993).
Agreement Establishing anInter-State Eurasia Union ofCoalandMetal (Moscow, 24September 1993).
Agreement ontheCreation ofaCommon Economic Areaamong theKyrgyz Republic, theRepublic
ofKazakstan andtheRepublic ofUzbekistan (Cholpon-Ata, 30April 1994).
Agreement Among theGovernments ofState-Participants intheCommonwealth ofIndependent States
onCoordinated Principles ofTaxPolicy (Moscow, 13March 1992).
Agreement onCoordinated Antimonopoly Policy (Ashgabat, 23December 1993).
Agreement Within theCISonCooperation intheSphere ofInvestment Activities (Ashgabat,
24December 1993).
Agreement onAssistance inCreation andDevelopment ofProduction, Commercial, Credit-Financial,
Insurance andMixed Transnational Establishments (Moscow, 15April 1994).
Agreement onGoods Turnover andProduction Cooperation intheSphere ofMachinery onan
Inter-Related Basis (Moscow, 9December 1994).
Agreement onCooperation intheSphere oftheProtection ofCopyright andRelated Rights (Moscow,
24September 1993).
Eurasian Patent Convention (Moscow, 9September, 1994).
(e) ListofCustoms Union Agreements
Agreement onCustoms Union Between theRussian Federation andtheRepublic ofBelarus (Minsk,
6January 1995).
Agreement onCustoms Union (Moscow, 20January 1995) (executed bytheRussian Federation, the
Republic ofBelarus andtheRepublic ofKazakstan).
Agreement ontheAccession oftheKyrgyz Republic totheAgreement onCustoms Union Between
theRussian Federation andtheRepublic ofBelarus of6January 1995andtheAgreement onCustoms
Union of20January 1995.WT/ACC/KGZ/3
Page172
(Moscow, 14October 1995) (executed bytheRussian Federation, theRepublic ofBelarus, theRepublic
ofKazakstan andtheKyrgyz Republic).
(f) FreeTrade Area Agreements
TheKyrgyz Republic hassigned anumber ofbilateral freetrade agreements withformer CIS
countries, i.e.withArmenia, Kazakstan, Moldova, theRussian Federation andUkraine. These
agreements arelisted inSection AofthisAnnex 8atitemnumbers 18-21, 23and25-27 andtheirmost
significant provisions aresummarized atthecorresponding itemnumbers inChart VII-1 located in
PartVIIoftheMemorandum.
Inaddition, boththeAgreement ontheCreation ofanEconomic Union andtheAgreement on
theCreation ofaCommon Economic Area among theKyrgyz Republic, theRepublic ofKazakstan
andtheRepublic ofUzbekistan, which arelisted inSection DofthisAnnex 8atitems 1and3
respectively, contain general provisions committing theparties toestablish afreetrade area. In
fulfilment ofitscommitment under theformer agreement, theKyrgyz Republic hasexecuted the
Agreement ontheCreation ofaFreeTrade Area(Moscow, 15April 1994). There-export ofarticles
thatoriginated intheterritory ofoneparty andwereimported intotheterritory ofanother party under
thefreetraderegime created bythisagreement issubject totheAgreement OntheRe-Export ofGoods
andtheProcedure forGranting Authorization forRe-Export (Moscow, 15April 1994).
(g) ListofTrade Agreements orParts ofThem Which Contain Preferential Trade Provisions,
Indicating byHS(2digit) theTariff Lines Involved, theMargin ofPreference Granted,
Reciprocity Provisions andDetails ofAnyPreferential Treatment
Other thanthegeneral freetradeagreements mentioned inSection FofthisAnnex 8,Kyrgyzstan
hasnoagreements containing article-specific preferential trade provisions. However, inconnection
withtheentry oftheKyrgyz Republic totheCustoms Union (seeSection 2(b)ofPartVIIofthis
Memorandum andSection (e)ofthisAnnex 8),theCabinet ofMinisters passed aresolution
(Resolution No.57)on6February 1996unilaterally creating apreference scheme forcertain specified
lessdeveloped anddeveloping countries. Incompliance withthisresolution, theKyrgyz Republic
doesnotimpose customs duties ongoods originating inanyofthespecified lessdeveloped countries.
Andforgoods originating inthespecified developing countries, theKyrgyz Republic imposes customs
duties atone-half theMFN rateofduty. Resolution No.57explicitly excludes averylimited number
ofimported articles fromthepreference scheme. Thefollowing isadescription ofthepreference scheme
created byResolution No.57:WT/ACC/KGZ/3
Page173
1. ListofDeveloping Countries, Imports From Which areDutiable atOneHalftheApplicable
Rate
1. Albania 38. Guatemala
2. Algeria 39. Guyana
3. Angola 40. Honduras
4. Anguilla 41. Hong Kong
5. Antigua andBarbuda 42. India
6. Argentina 43. Indonesia
7. Aruba 44 Iran
8. Bahamas Islands 45. Iraq
9. Barbados 46. Island ofSaint Helena
10. Bahrain 47. Jamaica
11. Belize 48. Jordan
12. Bermuda Islands 49. Kenya
13. Bolivia 50. Kuwait
14. Bosnia andHerzegovina 51. Lebanon
15. Brazil 52. Libya
16. British Virgin Islands 53. Macedonia
17. Brunei 54. Malaysia
18. Cayman Islands 55. Malta
19. Cameron 56. Marshall Islands
20. Chile 57. Mauritius
21. China3558. Mexico
22. Columbia 59. Micronesia
23. Congo 60. Mongolia
24. Cook Islands 61. Montserrat
25. Costa Rica 62. Morocco
26. Coted’Ivoire 63. Namibia
27. Croatia 64. Nauru
28. Cuba 65. Niue
29. Cyprus 66. Nigeria
30. Dominican Republic 67. Netherlands Antilles
31. Dominica 68. Nicaragua
32. Ecuador 69. Oman
33. Egypt 70. Pacific Ocean Islands
34. Fiji 71. Pakistan
35. Gabon 72. Panama
36. Ghana 73. Papua NewGuinea
37. Grenada 74. Paraguay
35Goods originating inTaiwan aresubject tothesame ratesapplied togoods originating inthe
People ’sRepublic ofChina.WT/ACC/KGZ/3
Page174
75. PDR ofKorea 91. Surinam
76. Peru 92. Swaziland
77. Philippines 93. Syria
78. Qatar 94. Thailand
79. Romania 95. Tokelau
80. Saint Lucia 96. Tonga
81. Saint Vincent andGrenadines 97. Trinidad andTobago
82. Saint KittsandNevis 98. Tunisia
83. Salvador 99. Turks andCaicos Islands
84. Saudi Arabia 100. Turkey
85. Senegal 101. United Arab Emirates
86. Seychelles 102. Uruguay
87. Singapore 103. Venezuela
88. Slovenia 104. Vietnam
89. SriLanka 105. Yugoslavia
90. South Korea 106. Zimbabwe
2. ListofLessDeveloped Countries, Imports From Which areExempt From Customs Duties
1. Afghanistan 25. Malawi
2. Bangladesh 26. Maldives
3. Benin 27. Mali
4. Bhutan 28. Mauritania
5. Botswana 29. Mozambique
6. Burkina Faso 30. Myanmar
7. Burundi 31. Nepal
8. Cape-Verde 32. Niger
9. Cambodia 33. Rwanda
10. Central-African Republic 34. Samoa
11. Chad 35. SaoTome andPrincipe
12. Comoro Islands 36. Sierra Leone
13. Djibouti 37. Solomon Islands
14. Equatorial Guinea 38. Somalia
15. Ethiopia 39. Sudan
16. Gambia 40. Tanzania
17. Guinea 41. Togo
18. Guinea Bissau 42. Tuvalu
19. Haiti 43. Uganda
20. Kiribati 44. Vanuatu
21. Laos 45. Yemen
22. Lesotho 46. Zaire
23. Liberia 47. Zambia
24. MadagascarWT/ACC/KGZ/3
Page175
3. ListofGoods Which areExcluded From theAbove-Described Preference Regime
Code Description ofgoods
330300 Perfumes andtoilet waters.
3304 Beauty ormake-up preparations andpreparations forthecareoftheskin(other
thanmedicaments), including sunscreen orsuntanpreparations; manicure
preparations.
3305 Preparations foruseonthehair
3306 Preparations fororalordental hygiene, including denture fixative pastes and
powders.
3307 Pre-shave, shaving oraftershave preparations, personal deodorants, bath
preparations, depilatories andother perfumery, cosmetic ortoilet preparations,
notelsewhere specified orincluded; prepared room deodorants, whether ornot
perfumed orhaving disinfectant properties.
711620 Articles ofnatural orcultured precious orsemi-precious stones
7117 Imitation jewellery
851710000 Electrical apparatus forlinetelephone orlinetelegraph
8519 Record-decks, record players, cassette-players andother sound reproducing
apparatus ornotincorporating asound reproducing device.
8520 Magnetic taperecords andother sound recording apparatus whether ornot
reproducing device.
8521 Video recording orreproducing apparatus
8525 Transmission apparatus forradio-telephone, radio-broadcasting ortelevision,
whether ornotincorporating reception apparatus orsound recording or
reproducing apparatus; television cameras.
8527 Reception apparatus fortelephone, radio-telegraph orradio-broadcasting, whether
ornotcombined, inthesame house withthesound recording orreproducing
apparatus oraclock.
8528 Television receivers (including video monitors andvideo projectors), whether or
notcombined inthesame housing, withradio broadcast receivers orsound or
video recording orreproducing apparatus.WT/ACC/KGZ/3
Page176
ANNEX 9
EXCISE TAX RATES36
Goods Import
RateDomestic
Rate
Beer
Packaged
Unpackaged$0.15/litre
$.08/litre
$0.05/litre
Wine
Grape wine, over22%alc.content
Wine, under 22%alc.content$0.20/litre
none
none100%
55%
Champagne $0.25/litre 75%
Ethyl alcohol $1.40/litre $1.40/litre
Liqueurs andvodka products $0.30/litre $0.30/litre
Cognac $0.45/litre 125%
Other alcoholic beverages, over22%alcohol content none $0.30/litre
Other alcoholic beverages, under 22%alcohol content none 55%
Cigarettes
With filter
Without filter$0.005 each
$0.002 each40%
Coffee, tea,cocoa andtheirproducts 10% none
Crystalware 30% none
Articles ofgold 10% none
Smoking tobacco none 18%
Fermented tobacco none 12%
Jewellery made ofgold, platinum orsilver * *
Processed andnon-processes furhides (other thanhides of
mole, rabbit, dog,deer, orsheepskin* *
Wearing apparel made ofnatural furincluding: coats,
short-coats, jackets, capes, stoles, scarves, headgear,
collars, furcoats andfurpieces (other thanapparel made
ofhides ofmole, rabbit, dog,ordeer, orsheepskin)* *
Coats, short-coats, jackets andcapes trimmed withfur
(other thanmole, rabbit, dog,deer, orsheepskin)* *
Clothes made ofnatural leather * *
Firearms andgasweapons (other thanthose procured for
theneeds ofState agencies)* *
* Rates notyetestablished.
36Rates forbothimported anddomestic goods aresetinUS$.WT/ACC/KGZ/3
Page177
ANNEX 10
SUMMARY OFPROPOSED CUSTOMS DUTY RATES
HSCode Name ofGoods Customs Rates
1 1.00 liveanimals 5%
2 horses dutyfree
3 bovine animals dutyfree
4 swines dutyfree
5 sheep andgoats dutyfree
6 other animals andhusbandry 5%
7 2.00 meatandedible meatoffal 15%
8 3.00 fish 10%
9 4.00 milkanddairy produce 15%
10 milkanddairy produce 10%
11 butter 20%
12 cheese 15%
13 eggs 15%
14 honey 15%
15 other 15%
16 6.00 livetrees 10%
17 7.00 vegetables 15%
18 potatoes 15%
19 tomatoes 15%
20 onions 15%
21 other 15%
22 8.00 edible fruitandnuts 10%
23 nuts 10%
24 citrus fruit 5%
25 grapes 10%
26 melons 10%
27 fruit 10%
28 other fruitandberries 10%
29 dried fruit 10%
30 9.00 coffee, tea,mateandspices 5%
31 coffee 10%
32 tea 10%
33 spices 10%
34 10.00 cereals 5%
35 wheat 5%
36 rye 5%
37 maize 5%WT/ACC/KGZ/3
Page178
HSCode Name ofGoods Customs Rates
38 rice 5%
39 other 5%
40 11.00 products ofthemilling industry 10%
41 flour 10%
42 cereals 10%
43 other 10%
44 malt 10%
45 starches 10%
46 12.00 seeds 5%
47 other 5%
48 14.00 linters cotton 5%
49 15.00 fatsandoils 15%
50 animal fats 15%
51 olive 10%
52 sunflower oil 10%
53 cotton-seed oil 10%
54 maize oil 15%
55 other 5%
56 margarine 15%
57 16.00 preparations ofmeatandfish 15%
58 sausages 20%
59 preserve 15%
60 other 15%
61 17.00 sugars andsugar confectionery
62 rawsugar 5%
63 sugar 25%
64 treacle 5%
65 confectionery 20%
66 other confectionery (chewing gum) 25%
67 18.00 cocoa preparations 5%
68 cocoa powder 5%
69 chocolate preparations 0.6ECU/kg
70 other 10%
71 19.00 preparations ofcereals 15%
72 infant food 5%
73 macaroni 15%
74 flour confectionery 15%
75 other 15%
76 20.00 preparations ofvegetables 20%
77 preserved vegetables 20%WT/ACC/KGZ/3
Page179
HSCode Name ofGoods Customs Rates
78 juices 15%
79 21.00 miscellaneous edible preparations 15%
80 22.00 alcoholic andnon-alcoholic beverages
81 aerated waters 25%
82 beer 0.6ECU/l
83 champagne 1.32ECU/l
84 grape wines andmust 0.5ECU/l
85 other non-alcoholic beverages 15%
86 foodalcohol 2ECU/l
87 cognac 0.5ECU/l
88 vodka 2ECU/l
89 23.00 animals ’fodder dutyfree
90 24.00 tobacco
91 non-fermented 5%
92 fermented 5%
93 cigarettes andoneswithacardboard holder 30%
94 25.00 salt,sulphur, stone 5%
95 salt 5%
96 marble 5%
97 gypsum 5%
98 lime 5%
99 cement 5%
100 asbestos 5%
101 other 5%
102 26.00 ores 5%
103 oresandconcentrates offerrous metals 5%
104 oresandconcentrates ofnon-ferrous metals 5%
105 27.00 fuel 5%
106 aviation benzine 5%
107 petrol 5%
108 diesel fuel 5%
109 furnace mazut 5%
110 diesel oil 5%
111 kerosene 5%
112 oilbitumen 5%
113 natural gas 5%
114 liquefied gas 5%
115 electrical energy 5%
116 coaltotal 5%
117 28.00 inorganic chemicals 5%WT/ACC/KGZ/3
Page180
HSCode Name ofGoods Customs Rates
118 sulphuric acid 5%
119 chlorides andchloride oxides 5%
120 ammonia 5%
121 caustic soda 20%
122 calcium soda 5%
123 compounds ofnon-ferrous metals 5%
124 calcium carbide 5%
125 other 5%
126 29.00 organic compounds 5%
127 acetic acid 5%
128 antibiotics 10%
129 other 5%
130 30.00 pharmaceutical products 10%
131 31.00 fertilizers 10%
132 nitric 10%
133 phosphate 10%
134 potash 10%
135 other 10%
136 32.00 dyeing extracts 5%
137 synthetic dyes 5%
138 paints andvarnishes 5%
139 printing ink 5%
140 34.00 soapanddetergents 15%
141 laundry soap 15%
142 toilet soap 15%
143 detergent composition 15%
144 36.00 explosives 30%
145 37.00 photographic andcinematographic goods 10%
146 39.00 plastics
147 polyethylene 10%
148 polypropylene 10%
149 polystyrene 5%
150 plasticizer 10%
151 flexible (non-rigid) BVC 10%
152 synthetic resin 10%
153 polyethylene bags 25%
154 plastic dishes 25%
155 other 25%
156 40.00 rubber andarticles thereof 5%
157 natural rubber 5%WT/ACC/KGZ/3
Page181
HSCode Name ofGoods Customs Rates
158 synthetic rubber 5%
159 transportation band 5%
160 tiresforcars 25%
161 tiresfortrucks andbuses 15%
162 other 5%
163 41.00 rawleather 5%
164 cattle’shides 5%
165 horse’shides 5%
166 sheep’shides 5%
167 other 5%
168 artificial leather 5%
169 leather ofanimals ’hides 5%
170 42.00 leather articles (clothes) 20%
171 43.00 natural, artificial fur 10%
172 furrawmaterial 5%
173 dressed furskins 5%
174 artificial furandarticles from it 5%
175 44.00 wood 20%
176 merchantable wood 20%
177 saw-timber 20%
178 wood-fiber board 20%
179 wood particle board 20%
180 plywood 20%
181 48.00 paper andpaperboard 15%
182 paper andpaperboard -total 15%
183 wallpaper 15%
184 50.00 silk 10%
185 cocoon 5%
186 silkrawmaterial 5%
187 silks 5%
188 51.00 wool 20%
189 unwashed wool 20%
190 washed wool 20%
191 woolen yarn 20%
192 woolen cloth 20%
193 52.00 cotton 20%
194 cotton fibernotcombed dutyfree
195 cotton fibercombed dutyfree
196 cotton thread 5%
197 cotton yarn 5%WT/ACC/KGZ/3
Page182
HSCode Name ofGoods Customs Rates
198 cotton fabric 20%
199 54.00 chemical thread 10%
200 sewing thread 10%
201 artificial thread 5%
202 fabric from synthetic fiber 5%
203 55.00 chemical fiber 10%
204 synthetic fiber 10%
205 artificial fiber 10%
206 fabric from synthetic fiber 10%
207 56.00 cotton wool, thick felt 5%
208 cotton wool 5%
209 unwoven materials 5%
210 57.00 carpets andother floor coverings
211 carpets 30%
212 floor coverings 30%
213 58.00 special fabric 25%
214 material withnap 25%
215 tulle 25%
216 59.00 textile fabrics 5%
217 linoleum 20%
218 textile fabrics suitable fortechnological purposes 5%
219 61.00 knitted wear 20%
220 clothes 30%
221 underwear 25%
222 hosiery 15%
223 other products (scarves, gloves) 30%
224 62.00 sewing clothes 30%
225 63.00 other finalproducts 30%
226 blankets andplaids 30%
227 bedlinen 30%
228 tarpaulin 30%
229 other finaltextile products 30%
230 64.00 footwear 20%
231 footwear withuppers ofrubber 20%
232 sports footwear 20%
233 footwear withuppers ofnatural orartificial
leather20%
234 other footwear 20%
235 unfinished footwear products 20%
236 68.00 articles ofstone 15%WT/ACC/KGZ/3
Page183
HSCode Name ofGoods Customs Rates
237 processed marble 15%
238 building stones 15%
239 mineral slagconcrete 15%
240 roofing materials 15%
241 prefabricated construction blocks 15%
242 slate 15%
243 fireproof products 15%
244 69.00 ceramic products 25%
245 bricks 25%
246 tile 25%
247 china tableware 25%
248 other 25%
249 70.00 glass 15%
250 glass 15%
251 glass tare 15%
252 glass fibre 5%
253 glass tableware 15%
254 other glass products 15%
255 71.00 precious metals 50%
256 72.00 ferrous metals 5%
257 73.00 products from ferrous metals 20%
258 rails 20%
259 ironpipes 5%
260 steelpipes 5%
261 wire 20%
262 74.00 copper andarticles thereof 5%
263 refined copper andunrefined 5%
264 copper cable andwire 5%
265 76.00 aluminum andarticles thereof 10%
266 primary andsecondary aluminum 10%
267 waste 10%
268 aluminum cable andwire 10%
269 79.00 zincanditsproducts 5%
270 81.00 other non-precious metals 15%
271 tungsten -
272 molybdenum -
273 82.00 tools andproducts from basemetals 10%
274 tools 20%
275 meat-chopper andjuicer 25%
276 other cutlery, blades 20%WT/ACC/KGZ/3
Page184
HSCode Name ofGoods Customs Rates
277 83.00 miscellaneous articles ofbasemetal 25%
278 84.00 boilers 10%
279 steam-boilers forcentral heating 15%
280 diesel engines 15%
281 pumps, compressors 5%
282 refrigerators, refrigerator ’sequipment, freezer 10%
283 block andtackle 20%
284 lifting-transporting equipment 20%
285 elevators 10%
286 excavators 10%
287 colemining machinery dutyfree
288 other machinery forroads maintenance 20%
289 agricultural machinery 5%
290 bread producing equipment 5%
291 paper producing machinery, polygraph machinery 5%
292 lightindustry equipment 10%
293 equipment forindustrial washing 5%
294 sewing machines 25%
295 metal-cutting machine-tools 20%
296 other machine-tools 5%
297 spare parts tomachine-tools equipment for
soldering5%
298 personal computers, calculating andcopy
machines20%
299 machines forassembling electric lamps 5%
300 bearings 10%
301 spare parts using indifferent machines 5%
302 85.00 electrical machinery andequipment 10%
303 ACandDCMotor 20%
304 transformers 20%
305 accumulators 5%
306 vacuum cleaner 20%
307 electric razors, irons 20%
308 microwave ovens 30%
309 telephone sets 5%
310 tape-recorders, VCRs 10%
311 TVsets 10%
312 lowvoltage equipment 10%
313 incandescing lamps 15%
314 diodes, transistors 25%
315 other machines forspecial purpose 5%WT/ACC/KGZ/3
Page185
HSCode Name ofGoods Customs Rates
316 enamelled winding wire 15%
317 power cable 10%
318 coalelectrodes 20%
319 86.00 rolling-stock 10%
320 equipment forrailway 5%
321 87.00 vehicles
322 tractors 10%
323 buses 10%
324 cars 10%
325 lorries 25%
326 chassis forlorries 15%
327 bodies 15%
328 spare parts forcars 5%
329 motorcycles 10%
330 90.00 optical instruments 15%
331 optical lens 5%
332 photo- andcinecameras 10%
333 medical equipment 5%
334 disposable syringes andneedles dutyfree
335 91.00 watches 20%
336 94.00 furniture, bedding 30%
337 medical furniture 5%
338 furniture 30%
339 bedding 30%
340 chandeliers 30%
341 95.00 toysandgames 15%
342 96.00 miscellaneous manufactured articles 20%