RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/KAZ/14
20 February 1998
(98-0616)
Working Party on the
  Accession of KazakstanOriginal:  English
ACCESSION OF KAZAKSTAN
Additional Questions and Replies
Additional replies received from the authorities of Kazakstan are reproduced hereunder.
Attachment A is available for consulation in the Secretariat (Accessions Division, Room 1126).
_______________
TABLE OF CONTENTS
Question Page
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic Policies
(a) Main directions and goals
Private sector development/Privatization 1Pricing policy 1 1
(e) Competition policy 2-7 1
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES
AFFECTING FOREIGN TRADE IN GOODS AND TRADE INSERVICES
1. Powers of the Executive, Legislative and Judicial Branches of
Government
(b) Powers of the Legislative 8-9 6
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulation(d) Other duties and charges, specifying any charges for services rendered 10 8
(e) Quantitative import restrictions, including prohibitions, quotas and
licensing systems11-13 9
(h) Customs valuation 14 10
(i) Other customs formalities 15-16 11(k) Application of internal taxes on imports
Value-added tax (VAT) and excise duties 17-19 13
(l) Rules of origin 20 15
(m)  Anti-dumping regime 21-35 16
(n)(o) Countervailing duty regime/Safeguard regime 36 22WT/ACC/KAZ/14
Page ii
Question Page
2. Export Regulation
(d) Export licensing procedures 37 22
3. Internal Policies Affecting Foreign Trade in Goods
(a) Industrial policy, including subsidy policies
Agricultural subsidies 22
Non-agricultural subsidies 38-39 22
(b) Technical regulations and standards 40-44 23
(c) Sanitary and phytosanitary measures, including measures taken with
respect to imports45 25
(d) Trade-related investment measures 46 25
(e) State-trading practices 47-48 25(l) Government procurement practices 49 26
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
5. Laws, decrees and other legal acts relating to the above 50 28
VI. TRADE-RELATED SERVICES REGIME
1. General 51 28
VII INSTITUTIONAL BASIS FOR TRADE AND ECONOMIC
RELATIONS WITH THIRD COUNTRIES
1. Bilateral, Plurilateral and multilateral Agreements Relating to Foreign
Trade in Goods and Trade in Services
(b) Plurilateral  agreements relating  to  foreign  trade in goods and services 52 28
Attachment A
List of organs for certification of similar products and accredited testing laboratories
(centers), registered at the State Register of the State Certification System of the Republic of
Kazakstan (as of 1 January 1998)
"On Approval of List of Goods (Works, Serv ices) Subject to Mandatory Certification for
Conformity to Obligatory Requirements of St andards or Other Documents for Guarantee of
Safety of Life and Health of Citizens, Property of Citizens, and Environment," Government
Regulation No. 1112, (15 July 1997) (Excerpt)
The List of Products (Works, Services) that are Subject to Mandatory Certification as to the
Conformity with Requirements of Standards or other Codes that ensure the Safety for Life,
Health of People, Property of Citizens, and EnvironmentWT/ACC/KAZ/14
Page 1
II. ECONOMY, ECONOMIC  POLICIES AND FOREIGN TRADE
2. Economic Policies
(a) Main directions and goals
Private sector development/Privatization
We appreciate  Kazakstan’s  willingness, noted  in its response to question 1 in KAZ/11, to
undertake a commitment to additional transparen cy  as its privatization and reform programs
proceed.
Pricing policy
Question 1.
Could Kazakstan clarify its response to question 2 in KAZ/11, i.e., does Kazakstan currently
maintain any state-mandated or state-monitored price controls or stabilization measures on any
products? If so, could these products be listed with stabilization measures on any products? If
so, could these products be listed with appropriate HS or other designations to identifyspecifically which goods and services are covered?
Answer:
Kazakstan currently maintains price control only on water, electricity, and heat.  The HS does
not have corresponding codes for water and heat. The HS number for electricity is 2716.  There are no
stabilization measures on any products.
As for services, see question 1 of WT/ACC/KAZ/6/Add.1.
(e) Competition  policy
Question 2.
We remain interested in clarifying the status of state firms designated ‘’natural monopolies’’
and the nature of their role (a) domestic distribution and (b) international trade.
Please indicate what portion of Kazakstan’s expo rts in each category are accounted for by their
production.
Answer:
The following table provides an updated list of natural monopolies regulated by the National
Anti-Monopoly Committee.  Since the last update, companies engaged in gas processing are no longerconsidered to be natural monopolies.WT/ACC/KAZ/14
Page 2
Name of Natural Monopoly Entity State
Shares
(%)Case by case Privatization
A. Transportation of Oil and Gas by Pipelines
1. JSC Kazaknefteprovod 100 Not subject to privatization
2. JSC Intergaz Central Asia 90 Not subject to privatization
3. JSC Alaugas 92 Not subject to privatization
B. Railway transport enterprises (cargo and passenger transportation)
4. Republic State enterprise Kazakstan Temir Zholy 100 Main railways are not subject
to privatization
C. Communication enterprises
5. National JSC Kazaktelecom (tariffs for local
telephone services and lease of communicationchannels)50 DAEWOO 40 per cent
4.7 per cent will be sold
45.3 will be transferred for
management Kazaktelecom
10 per cent privileged shares
for employees
6. Republican State Enterprise of postal
communication under the Ministry of Transport
and Communication100 Not subject to privatization
7. Republican State Enterprise "Almatinskaya
Radio-Television Transmission Station" under theMinistry of Transport and Communication100 Not subject to privatization
D. Power Generation/Transmission
8. JSC  Kazakstani electric network management
company100 Not subject to privatization
9. JSC Remote electricity transmission 100 Not subject to privatization
10. JSC Almaty Power Consolidated Company 0 Privatized
11. Ltd Co Energoproject Zhambyl GRES 0 privatized
12. Ltd.  KPP-Karaganda 0 privatized
13. JSC Euro-Asian energy corporation 0 privatized
14. JSC AES-ST Ekibastuz 0 privatized
15. JSC Ekibastuz GRES 2 100 Contract Management
"Kegok"
E. Water system
16. State enterprise using channel Irtysh-Karaganda 100 Not subject to privatization
17. JSC Kazaknefteprovod 100 Not subject to privatization
18. State enterprise Belovodskyi water pipe-line 100 Not subject to privatization
F. Air-navigation entities, administration of air traffic
19. State  enterprise Kazairnavigation 100 Not subject to privatization
G. Airport services (takeoff and landing, ensuring air safety, parking, servicing of
passengers,  maintaining and servicing aircraft in  transit, and provision of aviation fuel-
lubricant materials)
20. JSC Aktobe International Airport 0 Privatized
21. JSC ATMA - Atyrau Airport and transportation 50 Subject to privatization
22. All other airports throughout Kazakstan 100 % Not subject to privatizationWT/ACC/KAZ/14
Page 3
Oblast natural monopolies, maintained by oblast anti-monopoly committees, consist of public
utilities (distribution of gas, water, electricity, and heat), sewage systems, local telephone services,
lease of communication channels, oblast railway tr ansportation (transportation of passengers and
cargo), and management of air navigation.   None of these natural monopolies is engaged in
international trade.  These natural monopolies provide services for oblast population and do not
produce any products other than heat and electricity for local consumption.
Profile of natural monopolies listed above :
- Companies 1-3 provide transport services of oil and gas.  These companies do not produce or
export any products themselves.  Oil and gas producers/exporters/importers may use the
services of these companies through contracts.
-  Company 4 provides rail transport services.  It does not produce or export any products itself.
-  Companies 5-7 provides telecommunication and postal services.  These companies do not
produce or export any products
-  Companies 8 and 9 provide electric power transmission services.  These companies do not
produce or export any products themselves
-  Companies 10-15 produce and some of them distribute locally electric power.  In 1996, the
total production in Kazakstan was 58,657 Million KW.  Export was only 25.8 Million KW
(0.04 per cent of total production).
-  Companies 16-18 distributes water locally.  They do not produce or export any products.
-  Company 19 administers air traffic.  It does not produce or export any products
-  Companies 20-22 are airports. They do not produce or export any products.
Question 3.
Does the government of   Kazakstan  require  any  form of trade  licensing for the products or
services of  these firms?
Answer:
According to the Law on Licensing which was provided to the WTO Secretariat in
August 1996 (WT/ACC/KAZ/4), activities provided by these companies (except companies operating
water system)  require licensing.  The process to obtain license is the same for companies with orwithout foreign ownership. Required documents to obtain a license include an application, proof of
payment of license fee, copy of certificate of regist ration (if a legal entity is applying for license), and
documents demonstrating appropriate qualification (qualification requirements).
Question 4.
Can Kazakstan give the Working Party  an update on its plans for privatization of these firms?Answer:
Please see table above.WT/ACC/KAZ/14
Page 4
Question 5.
Is Kazakstan prepared  to guarantee market  access and national treatment to foreign firms
wishing to provide similar services, i.e., to make  such  commitments in its WTO services
schedule? If not, why not.
Answer:
Kazakstan has already made commitments in it s WTO service offer with regard to services
provided by natural monopolies.  Please see initial offer on services WT/ACC/SPEC/KAZ/3. An
updated offer on services will be provided in March 1998.
Question 6.
We need more comprehensive and detailed inform ation on the dissolution on the State holding
companies and firms listed in question 6 and dealt with in questions 7 and 8 of KAZ/11.
When was this done and why?  How did it happen? Please describe the process and its part in
Kazakstan’s  overall privatization program. Please be comprehensive in the response.
Answer:
The reference made to State holding companies in the reply to Question 27 of
WT/ACC/KAZ/6/Add.2 and questions 6, 7, and 8 of WT/ACC/KAZ/11 concerns the State holding
companies listed in the following table.
The reorganization of State Holding Companies started in 1995.  The privatization of most
companies which were under the holding structure is conducted through the mass privatization
program.
Name of State
Holding
CompanyType of Products or
ServicesReason for Dissolution
No. and data of Gov.
Resolution on reorganizationNo. of
JSCs
under
HoldingJSCs
Transferred for
privatizationStatus
1. Ken Dala production-technical
information and services
maintenance,implementation of
sufficient technology of
agricultural productionGovernment Resolution
No 1081 "On reorganization
of State Joint Stock Company"Ken Dala"" of
4 August 1995417 346 204 are
privatized and
63 transferredunder contract
management
2. Ak-Zhol Tractor, bulldozers, cardan
shafts, small cylinder
capacity engines, tractor
plough, sowing machinesGovernment Resolution No.
279 "On reorganization of
State Holding Company "Ak-
Zhol"" of 17 March 199524 20 8 are privatized
3. Altynalmas Jewellery production Government Resolution No.
704 "On reorganization of
State Joint Stock Company
"Altynalmas"" of17 May 199519 8 5 are privatized
4. Zhilderme Car and bus maintenance
industryPlan of Government for
development andprivatization No. 1825 "On
reorganization of State
Holding Company"Zhilderme"" of
21 December 199531 30 9 are privatizedWT/ACC/KAZ/14
Page 5
Name of State
Holding
CompanyType of Products or
ServicesReason for Dissolution
No. and data of Gov.
Resolution on reorganizationNo. of
JSCs
under
HoldingJSCs
Transferred for
privatizationStatus
5. Zhihaz Furniture, wood items Government Resolution
No 758 "On reorganization of
some State Holding CompanyZhihaz" of 20 June 199417 16 10 are privatized
6. Tagam Purchasing and Introduction
of technology, equipment,
raw materials for food andtobacco industryNo. 1435 "On reorganization
of State Joint Stock
Company "Tagam"" of22 December 199652 52 36 are privatized
and
10 transferred tocontract
management
7. Kazakstan Aye
Zholypassenger aviation
transportation, mail
transportation, and
treatment of agriculturalareasGovernment Resolution
No 533 "On priority measures
for financial-economic
surviving of National JSC"Kazakstan Aye Zholy" of
30 April 1996
Government Resolution
No 1030 "On measures for
economic stabilization of
civil aviation of the Republicof Kazakstan" of
20 August 199628 28 1
Question 7.
In the response to question 11 in KAZ/11, Kaza kstan  indicates that the label "natural
monopoly" would not restrain market entry by firms, e.g., including telecommunications.
If this is the case, why did Kazakstan not make any commitments in its services offer
(WT/ACC/SPEC/KAZ/3) concerning basic telecommunication or the right of foreign suppliers
to establish value-added networks in Kazakstan?
Answer:
The label "natural monopoly" does not indicate any restraints on market entry by other firms.
Currently, foreign-funded enterprises are able to invest in sectors dominated by "natural" monopolies.Not making commitments in the initial  services offer concerning basic telecommunication or the right
of foreign suppliers to establish value-added networks in Kazakstan does not imply that the label
"natural monopoly" restrains market entry.
Kazakstan has already made certain commitments connected with communication services in
its initial offer.  Kazakstan is ready to negotiate during bilateral meetings the scope of commitments in
the telecommunication sector.WT/ACC/KAZ/14
Page 6
III. FRAMEWORK FOR MAKI NG AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES
1. Powers of the Executive, Legislative and Judicial Branches of Government
(b) Powers of the Legislative
Question 8.
The response to question 16 in WT/ACC/KAZ/11 is not helpful.We seek a comprehensive and detailed description of how "self executing" international
agreements like the WTO will actually be implemented in Kazakstan’s legal regime. Please
review the original question and provide a more detailed response.
Answer:
In accordance with constitutional norms, in ternational treaties and other obligations
undertaken by the Republic of Kazakstan are considered as the current law of the State.
Specifically, according to  Resolution of the Constitutional Council of 28 October 1996,
No. 6 (Par.1), and in accordance with Article 4(1) of the Constitution of Kazakstan, the norms of the
Constitution and other acts, enumerated in it, shall be understood as "the current Law"  as well as the
normative legal acts and  international obligations, which have not been cancelled as of a concrete
date, and the international obligations, which have not been terminated.
The necessary conditions for a treaty to be valid within the territory of Kazakstan are as
follows:
(i) entering and signing the International Treaty (Convention) by an authorized body.  As a rule,
the authorized body is the Government of Kazakstan;
(ii) ratification of the International Treaty by the Parliament of Kazakstan pursuant to Article
54(7) of the Constitution ; and
(iii) exchange, where required, of ratification documents. This provision, historically was
originated from the Vienna Convention (1969) "Concerning the Law on Treaties," wherein
Article 24(1) (entering into force),  a provision regarding the exchange of ratification
documents is set forth.
An international agreement, which has been developed and adopted in accordance with the
above referenced requirements, will be considered  valid and enforced in its entirety within the
territory of Kazakstan
Article 4 (3) of the Constitution  states that, "The International treaties, ratified by the
Republic, have a priority over the laws and shall be applied directly, except for cases where it follows
from the treaty, that for its application, it is necessary to issue a law".
The above norm means, that if  a  Kazakh law contradicts an international legal act of which
the Republic of Kazakstan is a participant or has  otherwise  ratified,  the International treaty shall
have priority .WT/ACC/KAZ/14
Page 7
The ratified international treaty, according to the Constitution, shall be applied directly unless
there are references in the international treaty that national legislation needs to be enacted. If to use
terminology of the English legislation (law), it may be said that a treaty is actually "self-executing",
which does not require additional  normative acts  from the side of official bodies.
The imperative, provided in the Constitution (Article 4(3)), therefore, does not require a
special law, establishing a procedure to apply ratified and effective treaty on the territory ofKazakstan.
Question 9.
We appreciate Kazakstan’s table in response to  question 17 of  KAZ/11, and the response to
question 18, giving the status of efforts to meet requirements of  key WTO Agreements and the
statement that Kazakstan ‘’plans to enact new legislation and amend existing legislation in
order to conform to the WTO Agreements.
In the response to question 19, Kazakstan lists a number of additional laws ‘’currently
scheduled for drafting in 1997’’. We are particularly  interested in receiving copies of those with
trade implications and the planned legi slation addressing the TRIPS Agreement.
In order to ensure that the  next meeting ma kes substantive progress towards the completion of
the negotiations for terms of WTO accession, we believe that Kazakstan should be prepared to
provide copies of all the relevant legislation that will address these issues and/or a description of
how Kazakstan has met its WTO obligations in these areas, prior to the scheduling/scheduling
of the next Working Party meeting.
Answer:
The following table summarizes the status of remaining laws which  need to be enacted or
amended to conform to the WTO Agreements.
New Laws/Laws being
AmendedStatus
1. Law on Anti-Dumping Being reviewed by the Parliament. A draft was submitted  to the WTO
Secretariat in August 1997.  An updated  draft will be submitted inMarch 1998 taking into account issues raised under questions 18-32 below.
2. Law on Countervailing Being approved by the Government. A draft was submitted to the WTO
Secretariat in August 1997.  An updated  draft will be submitted inMarch 1998.
3. Law on Safeguards Being approved by the Government. A draft was submitted to the WTO
Secretariat in August 1997. An updated draft will be submitted inMarch 1998.
4. Amendments to theCustoms
CodeBeing approved by the Government. Draft will be submitted in
March 1998.
5. Amendments to the Lawon
Standardization and
CertificationBeing drafted.  As soon as a draft is approved by the Government, it will
be sent to the WTO Secretariat.WT/ACC/KAZ/14
Page 8
New Laws/Laws being
AmendedStatus
6. Amendments to the Law
on Copyright and
Neighbouring RightsBeing drafted.  As soon as a draft is approved by the Government, it will
be sent to the WTO Secretariat.
7. Amendments to thePatent LawBeing drafted.  As soon as a draft is approved by the Government, it will
be sent to the WTO Secretariat.
8. Amendments to the Lawon
TrademarksBeing drafted.  As soon as a draft is approved by the Government, it will
be sent to the WTO Secretariat.
9. Regulations on IntegratedCircuitsBeing drafted.  As soon as a draft is approved by the Government, it will
be sent to the WTO Secretariat.
10. Amendments to the Lawon
LicensingBeing drafted to conform to the Import Licensing Agreement.  As soon as
a draft is approved by the Government, it will be sent to the WTOSecretariat.
Kazakstan plans to enact all above listed laws and amendments no later than the end of 1998.
Draft laws and amendments will be provided to the WTO Secretariat as they become available.  For
items 5-10, drafts are likely to be submitted during the first half of 1998.
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulation(d) Other duties and charges, specifying any charges for services rendered
Customs processing fee and other customs services
Question 10.
Concerning the  0.2 per cent ad valorem   customs processing fee:
We seek elaboration by Kazakstan prior to the next Working Party of the measures it intends to
take to bring its ad valorem  customs processing fees into conformity with Article VIII of the
GATT 1994.
Kazakstan should describe in detail the nature of the changes it intends to make. We seek
elimination of the fee, or completion of a revis ed fee structure prior to accession to the WTO.
Answer:
Kazakstan proposes the following in order to meet the requirements of WTO Article VIII:
We propose that import processing fee shall reflect costs of services rendered in one year
after the date of WTO accession. We will implement this using the methodology based on
internationally accepted principles of accounting. We will establish maximal and minimal imposed
fees in order to provide that the fee won’t exceed the cost of import processing. We propose to use the
existing rate of 0.2 per cent with minimum and maximum amount.WT/ACC/KAZ/14
Page 9
The cost of import declaration processing is combined from two components: direct and
indirect expenses. Direct expenses - expenses occurred exclusively in connection with import
declaration processing. They consist of expenses per employee involved in import declaration
processing. Indirect expenses - all expenses (including capital expenses) accrued as a  result of  all
types of customs activities, including import processing.
Determination of minimal fee
While determining the minimal fee only direct expenses for import declaration processing
shall be used. We analyze time used by the employee for processing of import declaration and we
determine the average costs per employee used  for import declaration processing.
Determination of maximal fee
The maximal imposed fee shall be determined using all direct and indirect costs. It shall be
calculated using the approach that in average the Customs employee in Kazakstan spends about
60 per cent of his/her time for import declaration processing.  As a result, we use 60 per cent of totalcosts per employee and all other costs for import processing.
(e) Quantitative import restrictions, including prohibitions, quotas and licensing systems.
Import licensing
Question 11.
In WT/ACC/KAZ/11 Kazakstan states that it is elaborating  on the rules  for import licensing of
spirits and alcoholic beverages.
Please provide the Working party with more detail s on the licensing regime for spirits. What is
the WTO justification for this system? What are the procedures, criteria, requirements and fees
for these licenses?
Answer:
Only ethyl alcohol and vodka are subject to import licensing.
The licensing of import of ethyl  alcohol and vodka is regulated by the Government
Resolution No. 1031 of  27 June 1997, where the procedure for licensing of ethyl alcohol and vodka
are articulated.
The documents, necessary to obtain a licenses are the following: (a) an application, (b) a
document confirming the payment of license fee, (c) a copy of certificate of state registration, (d) a
copy of a contract (agreement) on sales-purchase with participants of international trade deal, (e) a
license of production of alcohol products in case of importing ethyl alcohol; and (f) a certificate of
origin
A license is applied for and issued by the Committee on State Control on Production and
Turnover of Alcohol Products under the Ministry of Fi nance. A license shall be issued for one type of
a product and shall be issued on import of one transaction for the period of not more than one calendar
year, starting from the date of issuing a license.WT/ACC/KAZ/14
Page 10
The refusal to issue a license, termination of validity, revocation and suspension are regulated
by the Law On licensing of 17 April 1995 which was submitted to the WTO in August 1996
(WT/ACC/KAZ/4).
The licensing fee for import of ethyl alcohol and vodka is equal to 20 monthly valuation
index (as of 1 January 1998, the monthly ev aluation index is 630 Tenge; US$1 = 7 5.5 Tenge).
Government Resolution No. 1031 establishes restrictions on the import of ethyl alcohol and
vodka. The share of import of ethyl alcohol and vodka shall not exceed 20  per cent of the annual
volume of their sales within the customs territory of Kazakstan
Normative documents on the determination of volumes of sale of ethyl alcohol and vodka
within the territory of Kazakstan and  the terms of a tender on the allocation of import  among the
applicants were accepted in September 1997 and came into effect during the fourth quarter of 1997. In
accordance with these normative documents, privileges, while allocating permitted import volumes of
ethyl alcohol and vodka, are granted to importers:
- importing high quality products;
- investing and/or creating working places in Kazakstan;
- not having tax and customs exemptions;
- not having liabilities before state budget and Pension fund.
Question 12.
We appreciate the fact that  Kazakstan recognizes  the need to reform the fee system for import
licensing to reflect the cost of services rendere d. Kazakstan has stated that it will make these
reforms "prior to accession".
However, the Working Party cannot move forward until Kazakstan  provides specific
information on how and how and when it will bring this fee into conformity with WTO rules.
Could Kazakstan please provide an update on its specific plans to bring the import licensing fee
into conformity with WTO rules prior to accession?
Answer:
Kazakstan understands that the current licensing fee needs to be evaluated to ensure
conformity with Article VIII of the GATT 1994.  Kazakstan will conduct such review in June 1998and provide the WTO with a proposal for changing such fee in July 1998.  Kazakstan will ensure that
the licensing fee will reflect the cost of services rendered as of the date of accession to the WTO.
Question 13.
According to the response to question 41 of WT/ACC/KAZ/6, Kazakstan may introduce import
quotas in cases connected with  "an emergency  measure according to Article  XIX of the
GATT".
Will this be done only after enactment of the legislation, now "planned" "On Safeguards"?WT/ACC/KAZ/14
Page 11
Answer:
As of the date of accession to the WTO, Kazakstan will not introduce import quotas in cases
connected with "an emergency measure according to Article XIX of the GATT" unless appropriate
legislation is in place (Law on Safeguards).  Prior to accession to the WTO, Kazakstan may introduce
import quotas in cases connected with  "an emergency measure according to Article  XIX of the
GATT" without the presence of legislation on Safeguards.
(h) Customs valuation
Question 14.
Kazakstan states in its response to question 25 in WT/ACC/KAZ/11 that amendments to the
Customs Code are being "finalized".
When will be able to review these amendments?
Answer:
Draft amendments to the Customs Code will be provided in March 1998.
(i) Other customs formalities
Question 15.
Customs Documentation:
Since 1 June 1997. Kazakstan has required provision of an electronic copy of the import and
export declaration as part of the mandatory customs documentation. The government ofKazakstan granted the "Accept Corporation" an exclusive license for  a period of five years to
provide these electronic copies declarations, und er prices to be agreed with the  Kazakh Anti-
Monopoly Committee (Government Resolution No. 294 a, March 1997). In return, Accept
Corporation agreed to develop and provide to the State Customs Committee an automated data
exchange network. The arrangement has caused some concerns.
It is our  understanding that the cost to the importer of the electronic copy  of the import
declaration, US$56, has been  set not  to reflect the actual cost of making the copy but rather to
ensure that Accept Corporation recovers the estimated cost of the computer network it has
agreed to develop, or about 530 million.
Further, we understand that the requirement that  importers present a paper copy of the
import declaration has not been repealed by the State Customs Committee, undermining the
rationale for requiring an electronic copy in  the first place, since importers are required to
present to Customs the same entry information in two different formats.
We also lack information on what steps th e Government and the State Customs Committee
have taken to ensure the confidentiality of th e customs value information that importers are
now required to present to Accept Corporation in order to obtain an electronic copy of their
declarations, as required by Article X of the GATT 1994, Article 10 of the WTO Valuation
Agreement, and Article 124 of the "Law on Customs Business"?WT/ACC/KAZ/14
Page 12
It would appear that the current requirement  is a form of fax on trade, burdensome to
importers and exporters and perhaps not  necessary to conduct trade. We would appreciate
information on the rationale for the system and for the level of the fee.
Answer:
Kazakstan is currently in the process of analysing this practice and will provide information
during the next working party meeting.
Question 16.
Temporary Storage Warehouse Procedure:
A similar situation seems to  be developing with regard to storage requirements. We understand
that Kazakstan has began implementing  its  Customs custody and supervision of imports by
mandating " temporary storage" of all merchandi se imported by rail, without exception, in a
Customs owned or Customs licensed warehouse. Importers by rail are not allowed to secure
their own storage facilities or simply to allow th e goods to remain in a container in the rail yard
during customs processing as had been allowed previously. The transfer of the imported goods
to a warehouse pending customs clearance  is req uired regardless of the degree of risk presented
by the particular shipment, or whether there are less costly alternatives.
The new procedure apparently adds significant delays and costs to importing goods to
Kazakstan, e.g., fees and delays associated with  moving the goods, unloading them into the
warehouse, and reloading after Customs release.
It has been estimated that the cost of unloadi ng the goods from containers, storage in the
warehouse, and reloading the goods is about US$700 per container. There have  been questions
as to whether  the procedure has any actual purpose, other than to generate  fees for Customs
and its licensees.
Article VIII of the GATT 1994 requires that customs fees be related to the cost of the service
rendered and that they  not be a disguised from of revenue acquisition or a burden to trade.
Kazakstan’s requirements do not appear consistent with these provisions.
We urge Kazakstan to rationalize its customs requirements as soon as possible to eliminate
arbitrary and costly burden on importation and exportation.
Answer:
The preliminary procedure for temporary storage of goods in a temporary bonded warehouse
under customs control is defined by Chapter 25 of the Decree of the President of the Republic of
Kazakstan with the Force of Law, On Customs Business (the Customs Code) of 20 July 1995.
On the basis of this law, the Customs Committee of the Republic of Kazakstan developed the
regulation On Temporary Storage (On Temporar y Bonded Warehouses), which was approved by
Order No. 145-P (October 16 1995).  The sense of the given procedure is that goods and vehicles
from the moment of their arrival and until they are released or submitted to an entity for disposition in
accordance with the chosen customs regime, are in temporary storage under Customs control.WT/ACC/KAZ/14
Page 13
Temporary storage is carried out in specially assigned premises or other places, called
temporary bonded warehouses.  The technique of cu stoms storage of goods in customs warehouses
allows more effective use of customs employees because all goods coming to a corresponding sphere
of customs' activities are concentrated.  If the technique were not used, a disproportionately large
number of inspectors for control and checking would be required.
Temporary bonded warehouse may be founded by customs bodies of the Republic of
Kazakstan or by Kazakstan legal entities.  The fee rates for storage of goods and vehicles in
temporary bonded warehouses that are founded by customs bodies are determined by Government
Resolution No. 1479 (7 November 1995) On Rates of Customs Payments.  The fee is 0.04 ECU per
1 kg/gross weight/ a day for the storage of goods, and 3 ECU per unit a day for the storage of vehicles
transferred as a product/goods.
Warehouses established by Kazakstan legal entities are, as a rule, commercial organizations
established on the basis of licenses (8,000 ECU for a license) issued by customs bodies within theprocedure specified by the above mentioned Government Resolution.  The customs body has also the
right to establish warehouses. Fee rates for the storage of goods in such warehouses should be
established by founders independently.
At present time, 66 temporary bonded warehouse s are organized on the territory of the
Republic, of which five are organized by customs bodies.  It is necessary to mention that a network ofwarehouses is at the stage of growth which is, to a certain extent, restrained by insufficiency of a
budget financing of customs bodies and limited by the amount of human resources.  Temporary
bonded warehouses exist not more than for two years and the State Customs Committee of the
Republic of Kazakstan intends to improve and develop warehousing system established by customs
bodies if appropriate financial resources are available.
It should be noted that under two circumstances at present, Customs permits goods to be
cleared immediately upon arrival without storage in a warehouse.  These are goods that are imported
under the urgent consignment procedure and the pre-arrival declaration procedure.  In addition, the
State Customs Committee intends to review its existing procedures to determine whether means of
control over imported goods pending customs clearance might be developed in other circumstances asan alternative to mandatory placement in a customs-licensed temporary storage warehouse.
(k) Application of internal taxes on imports
Value Added Tax (VAT) and excise duties
Question 17.
Concerning the response to question 27 in WT/ACC/KAZ/11, could Kazakstan please confirm
that at present all imports from all sources are being charged VAT and excise taxes?
Answer:
The following are exempt from VAT when imported:
(i) import of the national currency, foreign currency (except if used for numismatic purposes)
and securities;WT/ACC/KAZ/14
Page 14
(ii) import of goods by individuals in accordance with the norms of the duty-free import of goods
approved by the Government of the Republic of Kazakstan.
(iii) import of goods purchased using budgetary funds and imported by organizations funded by
the state budget, and the import of goods purchased under foreign credit lines secured by a
government guarantee;
(iv) import of goods by the National Bank of the Republic of Kazakstan for its own needs; and(v) in accordance with international treaties, to which  the Republic of Kazakstan is a party,
reciprocal payments may be contemplated for goods, work or services at prices inclusive of
VAT in the amount agreed upon between the parties.
The following are exempt from excise taxes when imported:
(i) excisable goods which are necessary for the operation of vehicles engaged in the international
conveyance of freight, luggage and passengers en route and at interim stops, and also those
purchased abroad to deal with accidents (breakdowns);
(ii) goods unsuitable for use as articles and materials due to damage prior to their clearance
through the customs border of the Republic of Kazakstan;
(iii) confiscated and goods without owners and also goods transferred to the government by
inheritance;
The goods, listed below are exempt from VAT and excise tax when imported:
(i) goods imported as humanitarian aid according to the procedure determined by the
Government of the Republic of Kazakstan;
(ii) goods imported for charitable purposes as part of the policy of the state, governments and
international organizations, including the provision of technical assistance;
(iii) goods passing through the customs territory of the Republic of Kazakstan which are exempt
within the framework of customs regimes established by the customs legislation of the
Republic of Kazakstan, except for the "Issue of Goods for Free Circulation" regime; and
(iv) goods imported for official use by foreign diplomatic representations and their equivalents,
and also for the personal use of diplomatic, administrative and technical personnel of such
representations, including members of their families who live with them, and exempted inaccordance with international treaties to which the Republic of Kazakstan is a party.
All imports subject to VAT (see section I.1.d of WT/ACC/KAZ/3) are charged VAT
regardless of source.  VAT is currently being applied on an MFN basis.  Products originating in CIS
and non-CIS countries are charged VAT.
As for excise taxes, only a certain number of imports (not all imports) are charged excise
taxes (see Annex 1 of WT/ACC/KAZ/10).  Goods originating and imported from CIS countries are
charged excise taxes at source rather than destination.WT/ACC/KAZ/14
Page 15
Kazakstan has signed bilateral agreements with  the Kyrgyz Republic, Ukraine, Moldova, and
Azerbaijan on applying excise taxes at the destination (consumption) rather than source (production).
Similar agreements are currently being negotiated with Uzbekistan and other CIS countries.  These
agreements have not yet been ratified and will come into force after ratification.
Question 18.
In reply to question 24 of WT/ACC/KAZ/10, Kazakstan noted that the range of excise taxes on
automobiles is based on age and engine capacity.  Please provide more details on how the
exercise tax on autos is calculated. What are the rates for different ages? For different engine
sizes?
Answer:
The excise tax rates on automobiles are specified as ad valorem  or a combination of ad
valorem  and specific rates.  There are different rates for different ages and different engine sizes.  All
such information was provided to the WTO Secretariat on 7 July 1997 and was published in asAnnex 1 of document WT/ACC/KAZ/10 dated 25 July 1997.
Question 19.
Kazakstan did not adequately respond to question 30 (WT/ACC/KAZ/11) seeking an
explanation of why, when it is well into WTO accession negotiation, Kazakstan chose to extend
the practice of applying discriminatory and WTO-inconsistent excise taxes to imports. The issuehere is a violation  of national treatment, not MFN as with the differential CIS exemption.
Kazakstan stated instead that it would elaborate on plans to remedy the situation in the latter
half of 1998.
Please review the original question and response to it.
Delaying the planning and discussion of  Kazakstan’s  excise tax reforms until the latter half of
1998 will slow the progress on Kazakstan’s protocol of accession. Maintaining, and expanding
the scope, of discriminatory excise  taxes in the interim is not helpful.
We encourage Kazakstan to start thinking now about the steps that wi ll be needed to meet
WTO requirements. Please include additional information concerning the response to
question 29.
Answer:
There will  not be one methodology for harmonizing excise tax rates for import and domestic
products.  Each product will be treated separately.  Kazakstan started a gradual process (with respect
to rates and products) of harmonization of the syst em of excise taxes to be  in conformity with
Article III of the GATT 1994.  Such process will be completed during 1998. Government ResolutionNo. 1644  of 24 November 1997 reflects initial measures taken in this regard:
- the rates for "All alcohol" (item 1 in Table of reply to question No. 47 of
WT/ACC/KAZ/6/Add.2), are now the sa me for import and domestic products
(0.3 ECU/Litre);
- the import rates for "Liqueurs and vodka products," "Vodka," and "Fortified drinks, juices,
and balsam" (item 2, 3 and 4 of same reference above) were decreased from 3.0 ECU/L
to 1.7 ECU/L;WT/ACC/KAZ/14
Page 16
- the import rates for crude oil was decreased from 7 ECU/ton to 3 ECU/ton.  The same rate
applies for import and domestic.
Work towards further harmonization is currently in progress.
(l) Rules of origin
Question 20.
We hope to see the amendments to the Customs Code that are intended to address the issue we
raised in question 31 of  WT/ACC/KAZ/11.
Answer:
A revision of the current Customs Code provisions on "preliminary determinations" is
required to conform Kazakstan’s law to the WTO Agreement on Rules of Origin.  Amendments to the
Customs Code, which include those revisions, will be provided in March 1998.
As noted in the response to question 31 of WT/ACC/KAZ/11, Kazakstan defines origin for
non-preferential trade on the basis of a change of tariff classification at the four-digit heading of thetariff nomenclature; Kazakstan does not apply the criteria of manufacturing or processing operations
or ad valorem  share.  The current Customs Code clearly specifies the tariff classification criterion of
origin, and thus conforms to the WTO Agreement in that regard.  If the WTO/WCO harmonization
work program results in a definition of origin different than that now applied by Kazakstan,
Kazakstan will revise its law as necessary to conform to that new WTO/WCO definition.
(m) Anti-dumping regime
We commend Kazakstan on the comprehensive draft Anti-dumping law submitted  to the
WORKING PARTY. It appear in most respect to conform to the provisions of The  Agreement
on Implementation of Article VI of the GATT 1994 ("Agreement"). We need  further
clarification of certain provisions, however, to complete our review.
We will submit these preliminary questions and comments concerning  the draft law in writing,
with more technical questions to follow later.
Following are our initial specific questions  pertaining to provisions of the draft law:
Question 21.
- Article 1:The definition of  "Domestic producers" refers to "Kazakstan produces of the like products
whose collective output . . . is considered to be sufficient for the anti-dumping investigation to be
conducted".
Please clarify what is "considered to be  sufficient" under Kazakstan law. Article 4.1 of the
Agreement specifies that " domestic industry’ shall be interpreted as  those domestic producers"as a whole of the like product or those of th em whose collective output of the products
constitutes a major proportion of the total domestic production of those products... ."WT/ACC/KAZ/14
Page 17
Answer:
The phrase "considered to be sufficient" should be  read in light of Article 4.2 of the Law, i.e.
would be applied as stipulated in the agreement.
Question 22.
- Article 2:
The scope of the draft law covers "relations arisin g as a result of injury or threat of injury to
domestic producers or the Republic of Kazakstan’s economic interests..."
Please explain how this language is consistent with the Agreement which is directed to actions
that injure an industry, rather than a government’s economic interests, and provide further
explanation of the types of economic interests that would be covered by the draft law.
Answer:
The language is intended to cover situations wher e injury to an industry is so important that it
affects the economy of the country as a whole.
Question 23.
- Article 4:
The draft law states that anti-dumping legislation in Kazakstan consist, among other things, of
domestic legislation as well as international le gislation, such as international treaties and
agreements.
Other than the Agreement, what specific international legislation is anticipated to be covered (if
any)?
Answer:
There is presently no such legislation, but it could result from economic integration.
Question 24.
- Article 8:
Article 5.5 of the Agreement requires that the authorities conducting an anti-dumping
investigation notify the government of the exporting country concerned after receipt of a
properly filed application for the initiation of an anti-dumping investigation and prior to
initiation of an investigation.
How will this requirement be  satisfied under the new law?
Answer:
The situation is covered by Article 12.1 of the Law.WT/ACC/KAZ/14
Page 18
Question 25.
- Article 15:
Article 6.1.3 of the Agreement  requires that the authorities conducting an anti-dumping
investigation provide a copy of the full text of  the written application to the government of the
exporting country concerned as well as to known exporters, without requiring that there first be
a request for such application. Under the draft law, the application  is only provided tointerested parties upon their request; the applic ation is provided to the government of the
exporting country  only where the number of exporters involved is too high.
How  will Kazakstan ensure that these require ments of Article 6.1.3. of the Agreement are
satisfied?
Answer:
Article 15 is actually Article 13 in the most recent draft.
Kazakstan has amended the draft law to address this issue.  Paragraph 1 reads as follows:" …. Provide the full text of the application received to the known exporters and the
Government of the exporting country, and to other interested parties involved upon their
request …."
Question 26.
- Article 19:Paragraph 1 states that when the export price is not available "or the export price is unreliable
in the opinion of the Authorized Body ...". Articl e 2.3 of the Agreement, however, specifies the
circumstances under which an export price may be considered unreliable, where the draft law
does not provide detail on this point
Please explain in more detail the circumstances under which an export price may be deemed
unreliable  by the Authorized Body.
Answer:
Article 19 is actually Article 16 in the most recent draft.
As set in paragraph 1 of Article 16 of the Law, the Authorized Body will deem an export
price unreliable in the circumstances stipulated in Article 2.3 of the Agreement.
Question 27.
- Article 30.
The draft law does not appear to meet all of the requirements of Article 4.1 (ii) and 4.2 of the
Agreement with respect to regional  industry  determinations. Two of the requirements for  a
finding of regional industry are in the definiti on of "Regional producers" of the draft law
(Article 1), but are not linked to the requirements of Article 30.
Please explain the apparent divergence.WT/ACC/KAZ/14
Page 19
Answer:
Article 30 is actually Article 27 in the most recent draft.
Article 27 must be read in conjunction with the definition of "regional producers" in Article 1
of the Law.
Question 28.
In addition, Article 4.1(ii) of the Agreement re quires that imports cause injury to producers of
"all or almost  all of the production" within a  regional market, which  is not  required under
the draft law.
Please provide clarification of regional indust ry injury determination under the draft law and
explain how duties are to be assessed in regional industry investigations (see Article 4.2 of the
Agreement).
Answer:
The requirement in Article 4.1 (ii) of the Agreement is fulfilled through the definition of
"Regional Producers" in Article 1 of the Law.  The assessment of the duties will be carried out as
stipulated in Article 4.2 of the Agreement in accordance with Article 4.2 of the Law.
Question 29.
- Article 31:
Article 3.7 of the Agreement requires that a country  base its threat of injury determinations "on
facts and not merely on allegation, conjecture or remote possibility".  In addition, the threat of
injury  "must be clearly foreseen and imminent".
The draft law does not address these requirements. How will Kazakstan ensure that such
requirements are implemented?
Answer:
Article 31 is actually Article 28 of the most recent draft law.
The criteria enumerated in Article 3.7 of the Agreement are spelled out in Article 28 of the
Law.  Article 3.7 of the Agreement will furthermore be implemented as foreseen in the Agreement as
stipulated in Article 4 of the Law.
Question 30.
- Article 35:
Paragraph 4 states that the "person responsible for disclosure of confidential information shall
be treated in accordance with current Republic of Kazakstan legislation".
Please explain such treatment under current legislation.WT/ACC/KAZ/14
Page 20
Answer:
Article 35 is actually Article 31 of the most recent draft.
While there is no legislation concerning disclosure of confidential information as such, the
following provisions in specific laws do provide for compensation and other sanctions against
unauthorized disclosure:
(i) Civil Code (the General Part), Article 126 "Service and Commercial Secrets": "Person… shall
be obliged to compensate for the infliction damage" And compensation should be calculated
in the court (treaty);
(ii) Draft Civil Code (the Special Part), Article 1039: Persons bear monetary responsibility for the
disclosure of confidential information. (See also Articles 638, 676,  and 1038);
(iii) Criminal Code (which will come into effect on 1 January 1998), Article 172 "Disclosure of
State Secrets": shall carry a penalty involving "…deprivation of freedom of up to three
years.";
(iv) Draft Code on Administrative Infringements, Article 129  "Infringement of obligation to not
disclose  commercial or banking information:": shall carry a "…fine of  up to fifty minimum
accounting index";
(v) Code on Administrative Infringements, Article 193, "Infringements Concerning the
Unauthorized Disclosure of Statistical Information Constituting a Commercial Secret- shallcarry a fine of up to ten minimum wages".
Question 31.
- Article 40:
How will the draft  law  ensure that provisiona l measures are not greater than the preliminary
margin of dumping (see Article 7.2. of the Agreement)?
Answer:
Article 40 is actually Article 36 in the most recent draft law.
The Government Resolution on the imposition of provisional measures shall indicate, as
stipulated in Article 37 of the Law, the determined dumping amount and give an explanation of the
methodology used for its calculation.  All interested parties have an opportunity under Article 36.2 ofthe Law, to comment on the reasons for the imposition of provisional measures.
Question 32.
- Article 42:
Article 7.2. of the Agreement states that provision al measures are generally applied for up to six
months, but in certain circumstances can be ap plied for a period not exceeding nine months.
The wording of the draft law is somewhat ambiguous and could be interpreted as allowing for
an extension of  nine months after the  six months period has expired. Please clarify.WT/ACC/KAZ/14
Page 21
Answer:
Article 42 is actually Article 38 in the most recent draft law.
The draft law has been amended to address this issue.
Question 33.
- Article 47:
Article 8.3 of the Agreement requires that exporters be granted an opportunity to comment if a
government determines that a  price undertaking is not appropriate.
Will this requirement be fulfilled under the draft law?
Answer:
Article 47 is actually Article 46 in the most recent draft law.
Yes.  The Authorized Body will inform the supplier of the reasons why the undertaking is not
accepted and the supplier will be given an opportunity  to comment (Article 46.2 read in conjunction
with Article 4.2 of the Law)
Question 34.
- Article 48:
In case of violation of a price undertaking, paragraph 2 of the draft law allows Kazakstan to
apply provisional measures immediately withou t notification to any interested parties.
Please explain the compatibility of this provision with the agreement.Answer:
Article 48 is actually Article 47 in the most recent draft law.
The draft law has been amended to address this issue.
Question 35.
- Article 58:Please provide a description of the appellate process, the administrative and/or Judicial
tribunals that will be responsible for reviewing anti-dumping determination in Kazakstan, and
whether  such tribunals are inde pendent of the Authorized Body.
Answer:
Please note that Article 58 is actually Article 53 in the most recent draft Anti-Dumping Law.WT/ACC/KAZ/14
Page 22
Judicial review of an anti-dumping matter, lik e the judicial review of any administrative or
other decision of an executive body of Kazakstan, is performed by courts which are neutral and
independent from the executive. Accordingly, an executive body involved in an anti-dumping
investigation must not interfere with the legal proceedings pending before a court.
The Draft Law on Anti-Dumping provides that all issues concerning the investigation of an
anti-dumping matter be within the competence of the executive bodies. Specifically, the review orcancellation of anti-dumping measures shall be carried out by the Government upon the submission of
the matter to it by the Authorized Body. Where an  individual, however, is aggrieved or otherwise
unsatisfied with any decision taken by an executive body in connection with an anti-dumping
investigation, Article 53 of the Anti-Dumping Law, provides such individual  with the right to appeal
that decision into the courts of the Republic of Kazakstan.
The current Code of Civil Procedure sets forth the general procedures for filing inter alia a
complaint in court to review administrative actions . In the case of an anti-dumping action filed by a
foreigner or non-resident person, Articles 15 and 118 of the Code of Civil Procedure provide that such
a claim may be brought in the court having jurisdiction over the place where the State body against
whom the complaint is made is located. Oblast courts and the Almaty city court are considered to be
courts of first instance.  All details of court procedures are regulated by the Law on the  Procedure for
Consideration and Settlement of Economic Disputes  and the Code of Civil Procedure. Where the
complainant is a juridical entity, the claim will be considered by the Board of Economic Disputes
within the court of first instance. Where the compla inant  is a physical person, then (in addition to the
aforementioned procedures) such individual may also be guided  by the Law on the Procedure for
Appealing in a Court Against Actions of the Bodies of State Administration.
(n) Countervailing duty regime
(o) Safeguard regime
Question 36.
We hope to receive information on the new legisl ation for these issues as soon as possible, and
prior to the next meeting of the Working Party.
Please see the answer to Question 6 above.
2.  Export Regulation
(d) Export licensing procedures
Question 37.
Kazakstan states that the export licenses are automatic and that they are just used for
monitoring purposes. The rationale provided  in WT/ACC/KAZ/6/Add.2 reply 74 for export
licensing of pharmaceutical and medical products is '‘medical safety'’.
What is the purpose for monitoring medical safety of its exports?
Answer:
The purpose of monitoring safety of pharmaceutical and medical products is to prevent (i) the
export of low quality pharmaceutical and medical products and (ii) unfavourable economic
consequences for Kazakstan in the form of penalties and compensation of damage.WT/ACC/KAZ/14
Page 23
3. Internal Policies Affecting Foreign Trade in Goods
(a) Industrial policy, including subsidy policies
Agricultural subsidies
We will submit further comments on Kazaksta n’s information on agricultural supports and
subsidies  in writing.
Non-agricultural subsidies
Question 38.
Kazakstan’s responses to question 47 of WT/ACC/KAZ/11 and question 68 of WT/ACC/KAZ/6
stated  that Kazakstan intends to notify some pr ohibited subsidies and seek  a transition period
within which to bring them into conformity with the Subsidies Agreement or eliminate them.
Kazakstan noted that subsidies for food, light, coal, machinery building and construction
materials industries were involved.
When will  these proposal  be tabled?Answer:
As a country in transition, Kazakstan proposes gradual elimination (seven years) of prohibited
subsidies according to Article 29 of the Agreement on Subsidies and Countervailing Measures:
Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Reduction 5 % 10 % 20 % 30 % 40 % 50 % 100 %
The reduction is in percentage of subsidies amount of previous year.
Question 39.
Regarding the response to question 48 of KAZ/11:Please confirm that regional subsidies (so called) are budget transfers to regional governments
solely for the purpose of carrying out governmental activities, e.g., creating local infrastructure,
running schools, making social income support payments unrelated to production of goods, etc.
If this is not correct, please elaborate on the original response to clarify the issue.
Answer:
Kazakstan confirms that regional subsidies (so called) are budget transfers to regional
governments solely for the purpose of carrying out governmental activities, e.g., creating local
infrastructure, running schools, making social income support payments unrelated to production of
goods, etc.WT/ACC/KAZ/14
Page 24
(b) Technical regulations and standards
Question 40.
Does Gosstandard of Kazakstan have access to draft standards promulgated by other
regulatory agencies in Kazakstan?  Does Gosstandard have authority to publish these
standards, or are they available throug h the agencies that promulgate them?
Answer:
Only Gosstandard is authorized to adopt new or amend existing standards.  Standards are
promulgated by technical committees and or ganizations.  Please see also Annex 5 of
WT/ACC/KAZ/3.  Standards are only available through Gosstandard.
Question 41.
We would be interested in information on p recisely what governmental bodies are responsible
for which products and what certification is re quired; who are the accepted certification bodies
and laboratories; the criteria and procedures by which they qualify as competent to performconformity assessment procedures, etc.
Answer:
Other than Gosstandard, there are no other governmental bodies responsible for product
certification.  The list of accredited certification bodies and laboratories along with the list of products
they certify or test as of 1 October 1997 is provided in Attachment A.  The list of accreditedcertification bodies and laboratories are published by Gosstandard.  Also, the list of products subject
to mandatory certification is provided in Attachment A.
The criteria and procedures by which they qualify to perform conformity assessment
procedures are described in details in WT/ACC/KAZ/6 (replies to questions 76, 77, and 80),
WT/ACC/KAZ/6/Add.1 (reply to question 63), a nd WT/ACC/KAZ/6/Add.2 (replies to questions 86
and 92).
Question 42.
What is the arrangement for publication of draft technical regulations? Who has legal authority
or responsibility for this activity?
Answer:
All standards are published by Gosstandard, News of Gosstandard provides announcements
for the most important draft standards  and conf ormity assessment procedures so that interested
parties may provide comments.  Draft of all standards are provided to interested parties directly.  See
also replies to questions 85 and 89 of WT/ACC/KAZ/6/Add.2.
The Law on Standardization and Certification is currently in the process of being amended.
Under consideration is a provision to comply w ith the WTO TBT agreement which would require the
publication of all draft standards that are not in accordance with international standards or if
international standards do not exist.WT/ACC/KAZ/14
Page 25
Question 43.
Please provide information on any regulation, d ecrees, etc. that mandate labelling and marking
requirements for imported products. If there are any such, please indicate what their coverage
is.
Answer:
There are marking and labelling requirements for all merchandise that is subject to
compulsory certification.  The marking and labelling requirements are set out in the product
standards.
Question 44.
In the response to question 76 in WT/ACC/KAZ/6, Kazakstan  stated that a manufacturer’s self
declaration is accepted on a case-by-case basis.
Please elaborate on why and when Kazakstan uses this approach. Can it only be used for
voluntary certification or can it be used in mandatory situations as well. What criteria  are usedto determine when manufacturers self declaration is acceptable and when it is not?
Answer:
Manufacturer’s self declaration may be used for voluntary certification.  As for mandatory
certification, manufacturer’s self declaration may be used only in cases where the testing of a product
is not possible by any of the accredited bod ies (foreign or domestic) of Gosstandard.
(c) Sanitary and phytosanitary measures, including measures taken with respect to imports
Question 45.
We look forward to reviewing the draft legislatio n referred to in the response to question 51 in
WT/ACC/KAZ/11.
Please respond substantively to question 52 to provide a description  of the current  domestic
rules and norms currently not in co nformity with the SPS Agreement.
Answer:
Legislation, addressing sanitary and phytosanitary issues, are in the process of being drafted
and will be submitted to the WTO during 1998.  The following provisions of the SPS agreement are
not covered in existing legislation:
-  Articles 2.3, 3.3, 3.4, 4.1, 4.2, 5-11, and 13;
-  Annex B: 2-7 and 10;
-  Annex C: 1 and 2.WT/ACC/KAZ/14
Page 26
(d) Trade-related investment measures
Question 46.
We are pleased that Kazakstan intends to eliminate, as noted in the response to question 54,
laws giving preferences to local inputs in foreign investment activities. Please inform the
Working Party when this occurs.
Is  Kazakstan ready to fully implement the TRIMS agreement from the date of accession
without recourse to any transition?
Answer:
The only TRIMs inconsistent measures in Kazakstan are those found in the Law on Petroleum
and the Law on Subsurface Utilization.
Kazakstan, as a country in transition, offers to eliminate these TRIMs inconsistent measures
within five years after accession to the WTO.
(e) State-trading practices
Question 47.
In earlier documents, Kazakstan stated that there are companies with exclusive  rights to trade
in military and nuclear materials and precio us metals. In WT/ACC/KAZ/6/Add.2, Kazakstan
said there were currentl y no such companies.
Please cite the law or regulation that  removed the exclusive rights of these companies to trade
in military equipment, nuclear equipment or precious  metals.
Answer:
According to Government Resolution No. 1037 on 30 June 1997, any legal entity may export
and import military and nuclear materials and precious metals on the basis of license and in
accordance with permission of the Government of Republic of Kazakstan.
Question 48.
In response to question 5  in WT/ACC/KAZ/11, Kazakstan provides a table listing firms that
currently have a dominant market position.
Are any of the firms with a dominant market positi on involved in the export or import  of the
goods listed in column 2 (nam e of goods) of the table?
Answer:
Kazakstan does not restrict the activities of companies which have dominant position in the
market.  These companies have the right to import or export goods including the type of goods they
produce.  Goods produced by these companies may also be exported by any Kazakstani physical or
legal persons including persons with foreign participation.  Similar goods may also be imported intoKazakstan by any Kazakstani physical or legal persons including persons with foreign participation.WT/ACC/KAZ/14
Page 27
In addition, any company (including those with foreign participation) may be engaged in
producing the same type of goods produced by these companies and providing the same services
rendered by these companies.  There are no regulato ry barriers to entry in any of sectors in which
companies with dominant position are engaged.
(l) Government procurement practices
Question 49.We are pleased to note Kazakstan’s  commitment to join the WTO Agreement on Government
Procurement after accession.
Unfortunately, it appears that several aspects of a recent Law on Government Procurement and
the draft  Implementing Resolutions for that law have provisions that conflict with key aspects
of the WTO Agreement on Government Procurement.
Allow me to point out a few of our key concerns:
- Article 8(4) of the new law allows tender organizers to exclude all foreign suppliers for
reasons of "domestic producers support". We understand that certain provisions of the
draft Implementing Resolutions suggest that  international open tenders will be the
exception to a general rule of domestically targeted procurement;
- these provisions run to the provisions of the WTO Agreement on Government
Procurement that would be applied by Kazakstan to  procurements covered bythe Agreement. While the WTO Agreemen t provides for certain exceptions to
open procurements, the type of blanket exclusion that appears to be part of the
new law is much too broad;
- Article 15(4) of your new procurement law allows a tender commission to take into
account the  "impact on the economic situ ation  in the Republic of Kazakstan or a
separate region" when evaluating bids. We understand that the draft Implementing
Resolutions would allow the tender  commission to take into "offsets" when evaluating
bids;
- the WTO Agreement on Government Procurement prohibits offsets from being
taken into account as criteria for awarding contracts for procurement of goodscovered by the Agreement;
- the provisions of the Government Procurement Agreement that allow limited
use of offsets under some  circumstances cannot be used in the contract phase of
a procurement;
- Article 19(4) of your law  provides a publi cation  period for open tender announcements
of one month instead of the 40-day  period required by Article IX(2) (a) of the WTO
Agreement on Government Procurement;
- in addition, the procurement law fails to require procuring  entities to use  technical
specification that are based on internatio nal standards or upon national technical
regulations as required by Article VI(2)(b) of the WTO Agreement on Government
Procurement. We understand that the draft  Implementing Regulations fail to  address
this concern;WT/ACC/KAZ/14
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- finally, the procurement law and draft  Implementing Resolutions appear to fall short of
providing adequate  opportunity for  potential suppliers to challenge bid irregularities
before a tender commission, to ensure appropriate due process guarantees, and to
ensure appropriate and timely remedies for bid irregularities.
Ultimately, Kazakstan’s procurement law  and Implementing Resolutions will need to provide
these opportunities and guarantees in order to be consistent with the WTO Agreement onGovernment Procurement.
We would appreciate hearing from you about the new law, and how you  intend to go about
assessing its consistency with the Government  Procurement Agreement and addressing the
concerns raised.
Answer:
The Republic of Kazakstan recognizes that the new Law on State Procurement (the "Law")
may contain actual or potential conflicts with key aspects of the Government ProcurementAgreement.  It is the intention of the Republic of  Kazakstan to bring all of its legislation governing
State procurement of goods and services into conformity with the requirements of the WTO’s
Agreement on Government Procurement (the "Government Procurement Agreement") on or before
the time of Kazakstan’s accession to the Government Procurement Agreement.  Kazakstan offers to
discuss the timetable and procedures for acceding to the Government Procurement Agreement duringnegotiations.
V. TRADE-RELATED INTELLECTUAL PROPERTY RIGHTS
We will supply additional comments and questions later.
5. Laws, decrees and other legal acts relating to the above
Question 50.We look forward to reviewing the draft legislation in preparation by Kazakstan.
Answer:
Please see response to question 6 above.
VI. TRADE-RELATED SERVICES REGIME
1. GeneralQuestion 51.
Kazakstan should develop information on its services regime in the format requested
WT/ACC/5 This will greatly assist  in the evaluation of  its services offer.
Answer:
WT/ACC/5 was prepared and submitted to the WTO Secretariat in August 1997.  It was
circulated as WT/ACC/KAZ/12.WT/ACC/KAZ/14
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VII. INSTITUTIONAL BASIS FOR TRADE AND ECONOMIC RELATIONS WITH
THIRD COUNTRIES
1. Bilateral, Plurilateral and multilateral Agreements Relating to Foreign Trade in Goods
and Trade in Services
(b) Plurilateral  agreements relating  to  foreign  trade in goods and services
Question 52.We remain interested in Kazakstan’s adherence at the time of accession to the WTO Agreement
on Trade in Civil Aircraft. We expect th at Kazakstan will adopt "zero" duties for the
importation of aircraft  and parts, and it should be recognized that no country  can expect to
participate fully in the  international manufact ure and sale of civil aircraft or parts without
joining this agreement.
Answer:
Presently, Kazakstan does not intend to join  the WTO Agreement on Trade in Civil Aircraft
at the time of accession.  As for adopting "zero" duties for the importation of aircraft and parts, this
will be discussed during negotiations.
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