RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/SPEC/KGZ/131
19 June 1998
(98-2506)
Working Party on the Accession
of the Kyrgyz Republic
DRAFT REPORT OF THE WORKING PARTY
ON THE ACCESSION OF THE KYRGYZ REPUBLIC
I. INTRODUCTION
1.  On 13 February 1996, the Government of the Kyrgyz Republic requested accession to the
World  Trade Organization (WTO).  At its meeting on 16 April 1996 the General Council establisheda Working Party to examine the application of the Government of the Kyrgyz Republic to accede tothe WTO Agreement under Article XII, and to submit to the General Council recommendations whichcould include a draft Protocol of Accession.  Membership of the Working Party was open to all WTOMembers.  The terms of reference and the membership of the Working Party were reproduced indocument WT/ACC/KGZ/2/Rev.2.
2. The Working Party met on 10 and 11 March, and 18 July 1997, 5 February, 6 May, 23
June and ... 1998 under  the Chairmanship of Mr. J.-M. Metzger (France).
II. DOCUMENTATION
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the
Foreign Trade Regime of the Kyrgyz Republic (WT/ACC/KGZ/3) and the questions submitted byMembers of the Working Party on the foreign trade regime of the Kyrgyz Republic, together with thereplies thereto (WT/ACC/KGZ/5 and Addendum 2, WT/ACC/KGZ/7, WT/ACC/KGZ/9,WT/ACC/KGZ/10 and Addendum 1, WT/ACC/KGZ /13, WT/ACC/KGZ/15 and WT/ACC/KGZ/16)
and other information provided by the Kyrgyz Republic authorities.  The Government of theKyrgyz Republic  made available to the Working Party the following documentation:
- The Constitution of the Kyrgyz Republic
                                                     
1 Revision of document WT/ACC/SPEC/KGZ/9/Rev.1.WT/ACC/SPEC/KGZ/13
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Laws
- The Civil Code of the Kyrgyz Republic,
- Bankruptcy Law in force since 19 April 1994 Law on Bankruptcy of 15 October 1997- Law No. 1057-XII of 12 December 1992 On Banks and Banking (with amendments No. 1394-XII
of 12 January 1994)
- Law No. 1357-XII of 10 January 1994 On the Principles of the Budget- Law No. 6 of 2 April 1996 On Certification of Goods and Services
- Resolution of the Government of the Kyrgyz Republic No. 520 of 2 December 1995 On A doption
of the Regulation on the Procedure of Control of the Goods Imported to the Kyrgyz Republic
- Resolution of the Government No. 260 of 28 April 1994 On Adoption of the List of Goods
(Works and Services), Produced On the Territory of the Kyrgyz Republic and Imported to itsTerritory, Which are Subject to Certification On the Indicators of Safety
- Law No. 915-XII of 29 June 1992 On Commodity Exchange and Exchange Trade in the Kyrgyz
Republic
- Law On Pledge of 6 March 1992
- Law No. 768-XII of 28 February 1992 On Prot ection of Consumer Ri ghts of 10 December
1997(as amended by the Law of the Kyrgyz Republic No. 1426-XII of 14 January 1994)
- Law of 6 March 1992 On Concessions and Foreign Concession Enterprises
- Law of 7 February 1992 On Customs Code of 30 July 1997- Resolution On implementation of the Custom Code
- Resolution of the Supreme Soviet of the Republic of Kyrgyzstan No 769-XII of
28 February 1992 -  On Implementing the Law On Consumers Rights Protection
- Law No. 683-XII of 20 December 1991 On General Principles of Denationalization, Privatization
and Undertakings in Kyrgyz Republic (to be extended and specified by Laws as of 6 March 1992No. 876-XII;  2 July 1992 No. 939-XII; 8 May No. 1229-XII;  12 January 1994 No. 1382-XII;
16 April 1994 No. 1501-XII;  23 June 1995 No. 5-I;  28 September and 11 October 1995 No. 30-I;
Resolution of Parliament of 12 January 1994 No. 1386-XII).
- Resolution of Supreme Soviet of the Republic  of Kyrgyzstan No. 684-XII of 20 December 1991
On the Procedure of Putting into Force of the Law of the Republic of Kyrgyzstan About theGeneral Principles of Denationalization, Privatization and Undertakings - Law No. 1385-XII of
12 January 1994 On Denationalization and Privatization of State Ownership in the Kyrgyz
Republic
- Decree of the Zhogorku Kenesh of the Kyrgyz Republic No 1386-XII of 12 January 1994 On the
Procedure for the Introduction into Operation of the Law of the Kyrgyz Republic On
Denationalization and Privatisation of State Ownership in the Kyrgyz Republic
- Law No. Y16-XII of 17 April 1991 On Protection of the Environment
- Law No. 6-1 of 5 July 1995 On Operations in Foreign Currency- Law No. 1076 of 16 December 1992 On Free Economic Zones in the Kyrgyz Republic (as
amended by the Law of the Kyrgyz Republic No. 2 of 15 March 1996)
- Resolution of the Supreme Soviet of the Ky rgyz Republic No. 1077-XII of 16 December 1992 On
implementation of the Law of the Kyrgyz Republic On FEZ in the Kyrgyz Republic
- Law No. 536-XII of 28 June 1991 On Foreign Investments in the Kyrgyz Republic (as amended
by the Law of the Kyrgyz Republic No. 1221-XII of 7 May 1993 and No. 20-1 of
26 September 1995)
- Resolution of the Supreme Soviet of the Kyrgyz Republic No. 537-XII of 28 June 1991 On Order
of Implementing the Law of the Kyrgyz Republic On Foreign Investments in the Kyrgyz Republic
- Law of 18 April 1991 On Common Principles of Foreign
 Economic Activity
- Law No. 943-XII of 2 July 1992 On People's Health Protection (as amended by Law of the
Kyrgyz Republic No. 1091-XII of 18 December 1992)WT/ACC/SPEC/KGZ/13
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- Resolution Of the Supreme Soviet of the Kyrgyz Republic No 944-XII Regulations for
Enforcement of the Law of the Kyrgyz Republic On People's Health Protection in the Kyrgyz
Republic
- Law No. 670-XII of 18 December 1991 On Insurance
- Resolution of the Supreme Soviet of the Republic of Kyrgyzstan No. 671-XII of
18 December 1991 On implementation of the Law of the Republic of Kyrgyzstan OnInsurance
- Law No. 1548-XII of 27 May 1994 On Making, Ratifying, Implementing and Denouncing
International Agreements of the Kyrgyz Republic
- Resolution No. 1549-XII of 27 May 1994 On bringing into force the Law of the Kyrgyz
Republic On making, ratifying, implementing and denouncing the International Agreements
of the Kyrgyz Republic
- Law No. 1478-XII of 14 April 1994 On the Local Taxes and Fees- Resolution of the Parliament of the Kyrgyz Republic of the 14 April 1994 On the
implementation procedure of the Law of the Kyrgyz Republic On local taxes and fees
Law No. 7 of 2 April 1996 On Providing Unity of Measurements
- Law of the Kyrgyz Republic (enforced by Resolution of the Supreme Soviet No. 949-XII) of
3 July 1992 On Medical Insurance of the Citizens of the Kyrgyz Republic (as amended by theLaw of the Kyrgyz Republic No. 27-I of 28 July and 26 September 1995)
- Law of 15 December 1992 On Mineral Resources
- Resolution of the Kyrgyz Republic Supreme Soviet of 15 December 1992 On the Manner of
Implementation of the Kyrgyz Republic Law On Mineral Resources
- Draft Law of the Kyrgyz Republic On the Limitation of Monopolistic Activities and the
Development and Protection of Competition of 15 April 1994
- Law On the National Bank
- Law No. 1481-XII of 14 April 1994 On Non-Tax Payments
- Law No. 34 of 1 July 1996 On Normative Legal Acts of the Kyrgyz Republic
- Law of the Kyrgyz Republic (enforced by Resolution of the Supreme Soviet No. 946-XII) of
2 July 1992 On Sanitary-Epidemic Welfare of the Kyrgyz Republic's Population
- Law of the Kyrgyz Republic On Securities and Stock Exchanges of 21 December 1991
- Law of the Kyrgyz Republic of 2 April 1996 On Standardization
- Law No. 1072-XII (enforced by Resolution of the Supreme Soviet of the Kyrgyz Republic
No. 1073-XII of 16 December 1992) of 16 December 1992 On the State Fee
- Law No. 874-XII of 6 March 1992 On the State Tax Service
- Law No. 1553-XII of 28 May 1994 On the Basic Principles of the Treasury of the Kyrgyz
Republic
- Law No. 660-XII of 17 December 1991 On Taxes from Companies, Associations and
Organizations (as amended by Laws:  No. 872-XII of 6 March 1992, No. 925-XII of
30 June 1992, No. 1088-XII of 17 December 1992, No. 1237-XII of 8 May 1993, No. 1416-
XII of 13 January 1994, No. 1525-XII of 25 May 1994, No. 25-I of 27 July and26 September 1995 and No. 24 of 26 June 1996)
- Law of the Kyrgyz Republic On Taxes from Population of 27 December 1991
- Law No. 1472-XII of 14 April 1994 On Principles of Taxation System in the Kyrgyz
Republic
- Law on Procurement of Goods, Works and Services of 1 July 1997
- Law on Subsurface Resources of 2 July 1997
 - Law on State Regulations of Foreign Economic Activities of 2 July 1997
- Law on Banks and Banking Activities of 29 July 1997
- Law on National Bank of 29 July 1997
- Amendments to the Customs Tariff Law of 30 July 1997- Law on Foreign Investment of 24 September 1997
- Civil Code Part II (section on intellectual property) of 5 January 1998
- Criminal Code (section on intellectual property) of 1 January 1998
- Law on Copyrights and Neighbouring Rights of 14 January 1998WT/ACC/SPEC/KGZ/13
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- Law on Trademarks, Servicemarks and Appellation of Places of Origin of 14 January 1998
- Patent Law of 14 January 1998
- Amendments to Part I of the Civil Code of 15 October 1997
- Law on Integrated Circuits Topology of 30 March 1998
- Law on Commercial Secrets of 30 March 1998
- Law on PC, Software and Databases of 31 March 1998
Presidential Decrees
- Presidential Decree No. 134 of 5 May 1993 On Regulating Currency Transactions
- Presidential Decree of 9 June  6 September 1994 On Additional Guarantees for Foreign
Investors in the Kyrgyz Republic
- Presidential Decree No. 246 of 27 July 1992 On the State Commission of the Kyrgyz
Republic for Foreign Investments and Economic Assistance
- Presidential Decree No. 270 of 9 September 1992 On Measures for Organization of Expert
Examinations of Foreign Investments
- Presidential Decree No. 280 of 23 September 1992 On Changing the Procedure for Licensing
Raw Materials, Consumer Goods and Products of Productional and Technical Purpose
- Presidential Decree No. 35 of 9 February 1993 On Changes in the State Regulation of Foreign
Economic Activities in the Kyrgyz Republic (as amended by Presidential Decrees No. 219 of30 July 1993, No. 5 of 12 January 1994, No. 32 of 23 March 1994 and No. 36 of
9 February 1995)
- Presidential Decree No. 121 of 2 April 1992 On Regulation of Foreign Economic Activity in
the Kyrgyz Republic
- Presidential Decree No. 140 of 11 April 1996 On Measures to Improve Coordination of
Privatization with Attraction of Foreign Investment to the Kyrgyz Republic
- Presidential Decree No. VII-165 of 13 May 1996 On Additional Measures on Introduction of
State Monopoly to the Production, Storage,  Sale of Alcohol and Alcoholic Products
- Presidential Decree No. 207 of 19 June 1992 On Licensing Certain Kinds of Businesses (as
amended by Presidential Decrees:  No. 3 02 of 27 October 1992, No. 106 of 6 April 1993,
No. 6 of 12 January 1994, No. 22 of 22 February 1994, No. 74 of 7 May 1994, No. 148 of
4 July 1994, No. 177 of 15 July 1994, No. 235 of 7 September 1994, No. 254 of
6 October 1994, No. 36 of 9 February 1995, No. 70 of 11 March 1995, No. 177 of
17 July 1995, No. 322 of 25 November 1995)
- Presidential Decree No. 234 of 9 June 1994 On Additional Guarantees for Foreign Investors
in the Kyrgyz Republic
- Presidential Decree No. VII-301 of 12 November 1994 On the Arrangements for Increasing
Control Over the Market of Securities of the Kyrgyz Republic
- Presidential Decree No. 319 of 9 December 1994 On the Bishkek Foreign Investments
Attraction Zone
- Presidential Decree No. 34 On Some Measures for Protection and Development of Private
Entrepreneurship of 25 March 1994
- Presidential Decree No. 42 of 27 February 1995 On Improving Taxation in Agriculture
- Presidential Decree No. 45 of 4 March 1996 On the Structure and Composition of the Cabinet
of Ministers of the Republic
Resolutions
- Resolution of the Cabinet of Ministers No. 373 of 25 August 1995 On Strengthening
Responsibility for Unauthorized Purchase, Sale of Scrap and Fragments of Non-Ferrous and
Ferrous Metals and Their Industrial Scrap (as amended by Resolution of the Cabinet of
Ministers No. 268 of 17 June 1996)WT/ACC/SPEC/KGZ/13
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- Resolution of the Cabinet of Ministers No. 383 of 12 September 1995 On the Programme of
State Investments for 1996-1998
- Resolution of the Government No. 408 of 13 June 1994 On the Establishment of Provisions
on the Procedure of Export and Import Licensing Goods in the Kyrgyz Republic
- Resolution of the Cabinet of Ministers No. 440 of 23 October 1995 On Approving the
Regulations on the Procedure for Delivery of Goods and Rendering Services within theFramework of Productional Cooperation of Enterprises and Branches of the Kyrgyz Republic
and Other States - the CIS Participants
- Resolution of the Government No. 484 of 14 November 1995 On Creation of the Consulting
Agency on International Procurement Under the General Directorate of the State Commission
for Foreign Investments and Economic aid of the Kyrgyz Republic
- Resolution of the Cabinet of Ministers No. 49 of 1 February 1996 On the Draft Law of the
Kyrgyz Republic On the Customs Tariff of the Kyrgyz Republic
- Resolution of the Cabinet of Ministers N o. 52 of 2 February 1996 On Measures of
Extraordinary Financial Support of Agriculture
- Resolution of the Government No. 520 of 2 December 1996 On Adoption of the Regulation
on the Procedure of Control of the Goods Imported to the Kyrgyz Republic
- Resolution of the Government No. 523 of 18 July 1994 On the Rates of the Author's Award
for Public Performance and Other Kinds of Usage the Productions of Literature and Arts
- Resolution of the Government No. 56 of 6 February 1996 On the Procedure for the Export
and Import of Commodities (Goods and Services) in the Kyrgyz Republic
- Resolution of the Government No. 57 of 5 February 1993 On Procedures of Transfer of
Articles, Property, Currency, Auto-motor Vehi cles and Other Valuables Through the Customs
Border of the Kyrgyz Republic
- Resolution of the Government No. 57 of 6 February 1996 On Confirmation of the List of
Country-Users of the Preference Scheme in the Kyrgyz Republic
- Resolution of the Cabinet of Ministers No. 571 of 27 December 1995 On Introduction of
Applying Excise Marks on Production, Impor tation and Sale of Tobacco Products and
Alcoholic Beverages in the Kyrgyz Republic
- Resolution of the Cabinet of Ministers No. 613 of 30 December 1993 On Temporary Customs
Tariff (as amended by Resolutions of the Cabinet of Ministers No. 26 of 21 January 1994 and
No. 358 of 28 May 1994)
- Resolution of the Government No. 622 of 18 August 19942 On Customs Regime of
Processing of Tolling Raw Materials and Goods Within the Customs Territory of the Kyrgyz
Republic
- Resolution of the Government No. 119 of 20 March 1996 On Adoption of Regulations on
Equipping Transport Vehicles (Containers) for Carriage of Goods with Customs Stamps and
Seals
- Resolution of the Government No. 725 of 23 September 1994 On Regulations on the State
Inspection for Standardization and Metrology at the Government of the Kyrgyz Republic
- Government Decree No. 82 of 28 February 1996 On Programme of Denationalization and
Privatization of State Property in the Kyrgyz Republic for 1996-1997
- Resolution of the Government No. 9 of 8 January 1996 On Approval of the Resolution on
Procedures of Use of the Excise Marks in the Kyrgyz Republic on Production, Import and
Realization of Tobacco Goods and Alcoholic Drinks
- Resolution of the Government No. 901 of 30 December 1994 On Regulating the Import of
Goods, Things and Other Objects by Physical Persons in the Kyrgyz Republic
- Resolution of the Government No. 97 of 22 March 1995 On Main Directions of Foreign
Economic Activity of the Kyrgyz Republic
- Resolution of the Government No. 10 of 9 January 1996 On Temporary Regulation On
Applying Excise Seals On Oil Products Imported to the Kyrgyz Republic
- Resolution of the Government No. 109 of 30 March 1992 On Ratification of Resolutions on
Procedures for Registration of Securities, on Procedures of Licensing the Right for
Professional Stock Market Activities, on Procedures for Collecting Securities RegistrationWT/ACC/SPEC/KGZ/13
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Fees, Licensing and Certifying the Right for Implementation of Professional Stock Market
Activities and for Collecting Other Fees, on Procedures for Maintaining the General State
Registry of Joint Stock Companies, Recording and Accountability in Joint Stock Companies
- Resolution of the Supreme Soviet of the Republic of Kyrgyztan No. 1126-XII of
18 December 1992 On Introduction of State Licensing in Construction Activity in the Kyrgyz
Republic
- Resolution of the Government No. 29 of 24 January 1994 On Creation of the State Regulation
of Production, Storage and Distribution of Et hyl Spiritus and Establishing Control over
Production and Sale of Strong Drinks in the Kyrgyz Republic
- Resolution of the Government No. 120 of 14 March 1994 On the Results of the
Reconstruction and Privatization in 1991-1993 and on the Programme of the Reconstruction
and Privatization of State Property in the Kyrgyz Republic in 1994-1995
- Presidential Decree No. 121 of 2 April 1992 On Regulation of Foreign Economic Activity in
the Kyrgyz Republic
- Resolution of the Supreme Soviet No. 1220-XI I of 7 May 1993 On Karakol, Alai, Chon-Alai
and Kara-Kuldji Free Economic Zones
- Resolution of the Cabinet of Ministers No. 135 of 27 March 1996 On Clarification of the List
of Subjects-Monopolists for 1996
- Resolution of the Government No. 146 of 5 April 1996 On Supplement of the List of the
Productions (Works, Services) Produced in the Kyrgyz Republic and Imported to its Territory
Be Subject to Obligatory Certification of the Index Safety, Stipulated to Introduce on the III
Stage, Approved by the Resolution of the Go vernment of the Kyrgyz Republic No. 260 of
28 April 1994
- Resolution of the Legislative Assembly of Jogorku Kenesh of the Kyrgyz Republic No. 151-1
of 23 June 1995 On Creation of Free Economic Zones of Bishkek City
- Resolution of the Cabinet of Ministers No. 559 of 21 December 1995 On the Development
Programme for Export of the Kyrgyz Republic for 1996 and Middle-Term Prospects
- Resolution of the Cabinet of Ministers No. 167 of 16 May 1995 On the Work of the Ministry
of Communication on Carrying Out First Proj ect of Telecommunication in the Republic
Financed by the World Bank/MAR and European Bank of Reconstruction and Development
- Resolution of the Government No. 209 of 10 May 1996 On the Concept of Development of
Free and Private Market for Grain in the Kyrgyz Republic
- Resolution of the Cabinet of Ministers No. 242 of 2 June 1993 On Approving the Regulation
on the Procedure of Licensing Attraction (Hiring) of Manpower from Abroad
- Resolution of the Government No. 260 of 28 April 1994 On Approval of the Products' List
(Works, Services) Produced in the Territory of the Kyrgyz Republic and Imported to its
Territory, Being Subject for Compulsory Certification on Safety Indications
- Resolution of the Cabinet of Ministers No. 27 0 of 7 July 1995 On Approving the Procedure
for Calculation and Collection of Excise Tax on Produced and Imported Alcohol and Liquor-
Vodka Products
- Resolution of the Cabinet of Ministers No. 290 of 7 May July 1993 On Creation of Customs-
Tariff Council Under the Cabinet of Ministers
- Resolution of the Government No. 298 of 21 July 1995 On Implementation of the State
Regulation of Production, Storage and Distribu tion of Ethyl Spiritus and Strong Drinks
- Resolution of the Government No. 3 of 5 January 1996 Regulations On the Procedures of
Imposition of Penalties and Economic Sanctions for Violations of the Anti-Monopolistic
Legislation, Pricing Discipline a nd Consumers' Rights Protection
- Resolution of the Cabinet of Ministers No. 300 of 1 July 1996 On State Customs Inspectorate
Under the Cabinet of MinistersWT/ACC/SPEC/KGZ/13
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- Resolution of the Cabinet of Ministers No. 327 of 17 July 1996 On the Course of Implementing
Regulations of the Parliament and the Cabinet of  Ministers On Issues of Introduction of State
Monopoly in the Sphere of Production, Storage and Sale of Alcohol and Alcoholic Products
Instructions and Regulations
- Instruction On Customs Procedures for Transit Cargo (approved by Order No. 145 of the State
Customs Inspection on 23 August 1993)
- Instruction of the Order to Fill the Cargo Customs Declaration (approved by Decree No. 05-06/13
of the State Customs Inspection  on 24 January 1996)
- Instruction On Application of Personal Examination  (approved by Order No. 176-1 of the State
Customs Inspection on 17 September 1993)
- Order No. 45 of 14 February 1994 On the Procedure for Licensing Entrepreneurship Activity of
Paid (i.e. for pay) Medical, Pharmaceutical and Educational Institutions and Persons Engaged in
Private Medical, Pharmaceutical  Practice and Paid Training
- Instruction No. 99-p of 19 March 1993 to approve "Statute on the Order of Design, Expert
Examination and Adoption of Investment Projects for the Construction Sector in the Territory of
the Kyrgyz Republic"
- Regulations for Opening Commercial Banks in the Kyrgyz Republic (approved by the Board of
the National Bank of the Kyrgyz Republic No. 1/8 of 23 July 1994 with amendments and
additions No. 16/4 of 30 June 1995
- Regulation on State Licensing the Construction Activity Implemented on the Territory of the
Kyrgyz Republic by Enterprises with Foreign Investment (approved by Resolution of the
Collegium of the State Construction of 10 February 1995)
- Order No. 05-06/12 of 24 January 1996 On Approval of the Regulation on Procedure of Control
Over the Goods Exported from the Territory of the Customs Union (State Customs Inspectorate
Under the Government of the Kyrgyz Republic)
- Temporary Regulations On Drawing, Submitting and Considering Applications On Official
Registration of Software, Databases and Topographies (Main Department of Intellectual Propertyof the Ministry of Education and Science of 29 August 1995)
- Document Regulations On Activities of the Branches Representative Offices of Foreign Banks in
the Kyrgyz Republic of 30 June 1994
- Regulation On State Licensing of Construction Activities in the Kyrgyz Republic (with
amendments by Decree of the Gosstroi of the Kyrgyz Republic No. 16 of 30 March 1994 and
No. 30 of 28 September 1995)
- Temporary Provisions on Industrial Property of the Kyrgyz Republic (adopted by Decree of the
State Committee on Science and New Technologies No. 3 of 2 August 1993)
- Temporary Provisions On Work Inventions, Utility Models and Industrial Designs
- Order of Receiving Payments for Licence Extradition
- Regulations On the Procedures of Imposition of Penalties and Economic Sanctions for Violations
of the Anti-Monopolistic Legislation, Pricing Discipline and Consumers' Rights Protection
(passed by Resolution of the Government No. 3 of 5 January 1996)
- Temporary Provisions On Selection Achievements of 24 July 1995
- Regulations on the State Inspection for Standardization and Metrology At the Government of the
Kyrgyz Republic (passed by Resolution of the Government No. 725 of 23 September 1994)
- Temporary Regulations On the State Fund of Industrial Property (approved by the Ministry of
Education and Science on 24 July 1995)
- Regulation On Department of Patent Agency for Trademark and Industrial Model Examination
- Regulation on Equipping Transport Vehicles (Containers) for Carriage of Goods With Customs
Stamps and Seals (approved by the Resolution of the Government of the Kyrgyz Republic No. 119of 20 March 1996)WT/ACC/SPEC/KGZ/13
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Draft laws and regulations
- Draft Law on Anti-Dumping
- Draft Law on Subsidies and Countervailing Measures
- Draft Law on Safeguards
- Draft Law On Selection Achievements
- Draft Amendments to the Law On Certification- Draft Amendments to the Law On Standardization
- Draft Amendments to the Law On Plant Quarantine
- Draft Amendments to the Law On Veterinary
- Draft Amendments to the Customs Code
- Draft Amendments to the Tax Code
- Draft Regulations On Import/Export Licensing
- Draft Regulations on Amendments to Certain Decisions of the Government- Draft Amendments on Introducing Changes and Amendments to some Legislative Acts of the
Kyrgyz Republic (amendments to the Law on Normative Acts and the Law on Publication of
Laws)
III. ECONOMIC POLICIES
- Foreign exchange and payments system
4. In response to requests for information, the representative of the Kyrgyz Republic informed
members of the Working Party that a highly pro-active monetary policy was being pursued by theNational Bank of the Kyrgyz Republic (NBKR) to stabilize the foreign exchange value of the Som.
The Kyrgyz Republic did not maintain any exchange restrictions on current account or capitaltransactions.  Individuals and legal entities could import and export foreign currency withoutlimitations provided they declared the amount to the customs.
5. The representative of the Kyrgyz Republic added that the Kyrgyz Republic had joined the
IMF on 8 May 1992.  The Kyrgyz Republic accepted the obligations of Article VIII of the IMFArticles of Agreement in March 1995 and maintained a fully convertible currency.  TheKyrgyz Republic's quota was Special Drawing Righ ts (SDR) 64.5 million (about US$96 million) and
its outstanding use of IMF credit currently totalled SDR 83.6 million (about US$120 million).   Hefurther noted that on 11 December 1995, the International Monetary Fund (IMF) had approved a firstEnhanced Structural Adjustment Facility (ESA F) loan in the amount of  SDR 88.15 million.
- Investment regime
6. Some members of the Working Party enquired whether there were any restrictions to the
national treatment principle in relation to investments by foreign persons in the Kyrgyz Republic.The representative of the Kyrgyz Republic stated that the new Law on Foreign Investment ofWT/ACC/SPEC/KGZ/13
Page 9
16 September 1997 provided guarantees of national treatment, equitable and fair treatment, and full
and constant protection for foreign investors.  Ex ceptions from national treatment, according to the
same law, were restrictions connected with defence and the protection of national security, the healthof the population, and public moral.  At this point, no such restrictions had been introduced.  The Lawon Denationalization and Privatization of State Property of 12 January 1994 provided the Cabinet ofMinisters with the authority to restrict or otherwise limit foreign investors from participating in theprivatization of certain industries; however the Cabinet of Ministers had not yet exercised thisauthority.   The Kyrgyz Republic would not use such authority in a manner that was inconsistent withits obligations as a future member of the WTO.  Foreign investors could freely repatriate investmentsmade or profits earned in the Kyrgyz Republic in a freely convertible currency.
7. Some members of the Working Party asked whether foreign investors were protected against
expropriation or nationalisation of their assets.  In response, the representative of the Kyrgyz Republicstated that Article 5 of the new Law on Foreign Investment of September 1997 guaranteed foreign
investments from expropriation (nationalization, requ isition or any other equivalent measure), except
in cases when such expropriation is carried out for an overriding public purpose, on a non-discriminatory basis.  In the event of expropriation of a foreign investment, the Law on ForeignInvestment requires that a foreign investor be paid prompt, adequate and effective compensation.Such compensation is freely transferable and payable in a freely useable currency.  Rights establishedunder the Law on Foreign Investment are enforcea ble against the governmental bodies with any
applicable procedure agreed upon between the fo reign investor and the authorized governmental
bodies of the Kyrgyz Republic.  When such agreemen t is absent an investment dispute between the
authorized governmental bodies of the Kyrgyz Republic and a foreign investor shall be settledthrough arbitration in accordance with one of the following procedures:
- Regulations of the Arbitration Court under the Chamber of Industry and Commerce of the
Kyrgyz Republic;
- Convention for the Settlement of Investment Disputes between States and Citizens of any
other States, ("Convention ICSID" signed in Washington DC on 19 March 1965) ifapplicable;
- Arbitration (Auxiliary) Regulations of the International Centre for the Settlement of the
Investment Disputes (ICSID), if applicable;  and
- Arbitration Regulations of the United Nations Commission on International Trade Law
(UNCITRAL Regulations);  in this case the appointing body shall be the General Secretary ofthe ICSID.WT/ACC/SPEC/KGZ/13
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8. In response to questions concerning the ownership of land by foreign investors, the
representative of the Kyrgyz Republic noted that the Constitution of the Kyrgyz Republic prohibitedthe private ownership of land by private persons or legal entities, either foreign or local.  There wereno plans to eliminate that restriction.  Foreign citizens and legal entities could purchase residentialimmovable property attached to land - such as apartments and houses - only with the specificpermission of the Cabinet of Ministers.  Foreign citizens and legal entities could rent immovableproperty on the same basis as Kyrgyz citizens and legal entities.
- State ownership and privatization
9. The representative of the Kyrgyz Republic stated that the Government’s privatization plans
were organized according to industrial and sectoral priorities.  In the electric energy sector, the planwas to attract foreign investment for the development of hydroelectric power engineering, to privatizesectoral  enterprises and to modernize and reconstruct electric grid networks.  In the coal industry, theplan was to restructure the sector and sector enterprises by reorganizing and, where  necessary,liquidating sector enterprises, to develop coal op en-pit mining with the aim of decreasing production
costs and to promote energy saving technologies.  In the oil and gas sector, the plan was to constructand bring into operation two small oil refineries in  the next two years and to develop a package of
documents for conducting an international tender intended for the purpose of attracting foreigninvestment into the exploration and exploitation of oil and gas deposits, to conduct the tender.  In thegold extracting industry, the plan was to attrac t foreign investment into the exploration and
exploitation of gold deposits.  Non-ferrous meta llurgy (mercury, antimony, tin, tungsten) would be
reformed to attract foreign investment into the development of the antimony and mercury metallurgyindustry.
10. The representative of the Kyrgyz Republic further added that in the machine building and
metal processing sector, the Government planned to reorganize the production of machines,equipment (and the parts thereof) for (i) processing agricultural products, (ii) mechanizing smallpeasant and family farms and (iii) use in the  coal mining industry.  The Government also planned toreform the electrotechnical sector to orient enterprises toward the production of complex electricalappliances and equipment for the electric energy industry.    Light industry would be reformed tospeed up the structural transformation of the sector and to find new markets both within and outsidethe CIS.  More modern equipment would be purchased with the aid of German and  Japanese loans.Food production and processing industries would be reformed to establish small and medium-sizedon-site production/processing facilities for milk, meat, fruit and vegetable production and processing.The pharmaceuticals sector would be reformed to attract foreign investment into the domesticWT/ACC/SPEC/KGZ/13
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pharmaceutical industry generally and to complete the construction of "bishkekbiofarm", a chemical
pharmaceutical plant.  The agriculture sector would be reformed to attract foreign investment for thepurpose of developing export-oriented agricultural enterprises; and to create joint ventures withforeign investors for the production of agricultural products.  The construction sector would bereformed to attract foreign investment into the housing construction industry and to encourage themanufacturing of energy-saving construction materials.
11. In response to requests for information concerning restrictions on foreign investors
participation in privatisation, the representative of the Kyrgyz Republic stated that Article 8 of theLaw on Denationalization of State Property of 12 January 1994, provided that during the privatizationof State owned assets, the Cabinet of Ministers could "reduce the number of purchasers to guaranteethe priority rights of citizens and legal entities of the Kyrgyz Republic."  He noted, however, that thispower had not yet been exercised.
12. The representative of the Kyrgyz Republic stated that the status of privatization in the Kyrgyz
Republic was provided in Tables 1 and 2 below.  As of 1 January 1998, approximately 64 per cent ofState-owned objects (base is 1 January  1991) had been privatized. The total value of privatized stateobjects since 1991 was som 13,418,900 million.  The mass privatization program was completed on30 June 1997.  The shares of 1,056 Joint-Stock Companies were sold using coupon auctions.According to Article 4 of the Kyrgyz Republic Constitution of 5 May 1993, land, minerals, water, airspace, forests, plant and animal life and all other natural resources were the exclusive property of theState.  According to Article 3 of the Law on Privatization and Denationalization of 12 January 1994,objects in exclusive ownership of the Kyrgyz Republic could not be subject to privatization.  Thelease of such property was, however, possible.   The Law on Privatization and Denationalization alsoauthorized the Cabinet of Ministers to specify a dditional objects not subject to denationalization and
privatization, even though their privatization and denationalization might not be specificallyprohibited in the Kyrgyz Republic Constitution and the Kyrgyz Republic Law On Privatization andDenationalization.  The current list of objects not subject to privatization is the following:
- mineral resources, forest fund, water resources, air space;
- protected or used in a special manner natural territories;- objects of historical and cultural heritage of the people of Kyrgyzstan (unique cultural and
natural monuments, objects of nature, history, culture, science and technology, as well asrarities kept in state museums, libraries and their subsidiaries, the association of folk artproduction "Kyial");
- property compounds of state power and management bodies;WT/ACC/SPEC/KGZ/13
Page 12
- funds of the republican budget and [foreign] currency reserve of the Kyrgyz Republic, Social
Fund under the Kyrgyz Republic Government, other State out-of-the-budget funds, as well asthe gold reserve;
 - National Bank of the Kyrgyz Republic, Treasury, Monetary chamber;- arms, military equipment and other property of military use, budget-financed entities and
organizations (including arsenals), as well as vehicle columns of military type under theoperative management of the Ministry of Defense of the Kyrgyz Republic, Ministry ofNational Security of the Kyrgyz Republic; Ministry on emergencies and civil defense of theKyrgyz Republic, Ministry of interior of the Kyrgyz Republic, other ministries and agenciesthat have military units;
- military objects of CIS countries located on the Kyrgyz Republic territory in accordance with
existing inter-state agreements;
- objects of the civil defense of the Ministry of Emergencies and Civil Defense of the Kyrgyz
Republic;
- science-technical entities and organizations within the system of the State agency on forests
under the Kyrgyz Republic Government;
- enterprises and science-technological entities and organizations within the system of the State
inspection on standardization and metrology under the Kyrgyz Republic Government andState archive agency under the Kyrgyz Republic Government;
- entities and organizations subordinate to the National Committee on Statistics of the Kyrgyz
Republic;
- enterprises and organizations of hydro-meteorological service, services of control over the
state of environment and protection of the nature;
- enterprises and organizations of the mapping-geodesic service;- enterprises and entities of sanitary-epidemiological and quarantine service of the Kyrgyz
Republic, plant protection service;
- objects and equipment for permanent storage of hard industrial and household wastes, hard
and liquid radioactive wastes, animal cemeteries;
- cemeteries, enterprises on their service and provision of ritual services;  and,- technical inventory bureau.
The Law on Denationalization and Privatization of State Property of 12 January 1994 provided the
Cabinet of Ministers with the authority to restrict or otherwise limit foreign investors fromparticipating in the privatization of certain industries; however the Cabinet of Ministers had not yetexercised this authority.   The Kyrgyz Republic would not use such authority in a manner inconsistentwith its obligations as a future member of the WTO.  Foreign investors currently participated in theWT/ACC/SPEC/KGZ/13
Page 13
privatization process in the Kyrgyz Republic according to the same rules applied to domestic
investors.  Privatization methods which will be used for privatizing remaining State assets, subject toprivatization were:
(i) corporatization (turning a State-owned en terprise into a Joint Stock Company-JSC)
followed by privatization through sales of shares using auctions or commercialtenders  (used mainly for the privatization of medium and large scale enterprises);
(ii) transformation of a State-owned object in to a limited liability partnership followed by
sale of partnership rights;
(iii) direct sale (including bidding) to strate gic investors (especially foreign companies) of
large-scale objects.  Companies are invited to bid through international press;
(iv) direct sale (including bidding), aucti ons, and commercial tenders of any objects;
(v) lease (contract management) for a period of time including the right of purchase by
lessee.
During 1998, the Kyrgyz Republic planned to begin privatization and denationalization of  large
enterprises in strategic sectors of the economy including mining, energy, telecommunications, andsystems of supply (oil and gas).  These include companies such as Kyrgyztelecom-telecommunications company, Kyrgyz Aba Zholdoru-National airline company, Karabalta-Mining,Kadmajay Antimony, Uchkun JSC-Printing, Akyl JSC-Printing, Kyrgyz Energy Holding,Kyrgyzgasmunaizat, and Bishkek Machinery JSC.  Also, the Kyrgyz Republic plans to privatize anddenationalize companies and facilities of the non-productive sphere (e.g. movie theatres, recreationobjects, resorts) in 1998-2000.
Table 1:  Sectoral Privatization Data Profile for 1991-1997
Sector Number of Objects of
State Property as of
1 January 1991Number of Privatized
Objects as of
31 December 1997Percentage of
Privatized Objects as
of 1 January 1998
Industry 602 531 88.2
Consumer Services 1919 1917 99.9
Oil Production Sector 1253 434 34.6
Trade and Public Catering 1949 1894 97.1
Agriculture 855 354 41.4
Construction 730 418 57.3
Transport 295 154 52.2
Other sectors 2306 673 28.2
Total 9989 6375 63.8WT/ACC/SPEC/KGZ/13
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Table 2:  Sectoral Privatization Data Profile by Privatization Modes For 1991-1997
Sector Privatization Mode Number of
Privatized Objects
Industry Lease with subsequent buy-out
Auctioning
Sale through auctions
Sale through tenders
Gratis transfers
Direct sale to private entitiesDirect sale to labour collectives (bodies)
Incorporation (Joint-Stock Companies)8
400
16
12
1
1849
27
Consumer Services Lease with subsequent buy-out
Auctioning
Sale through auctionsSale through tenders
Direct sale to private entities
Direct sale to labour collectives (bodies)
Incorporation (Joint-Stock Companies)17
36
170529
717
440
8
Non-production sector Lease with subsequent buy-out
Auctioning
Sale through auctionsSale through tenders
Direct sale to private entities
Direct sale to labour collectives (bodies)
Incorporation (Joint-Stock Companies)2
277
30
8
41
28
48
Trade and public catering Lease with subsequent buy-out
Auctioning
Sale through auctions
Sale through tenders
Direct sale to private entitiesDirect sale to labour collectives (bodies)
Incorporation (Joint-Stock Companies)41
213
151
581
307549
52
Agriculture Lease with subsequent buy-out
AuctioningSale through auctions
Sale through tenders
Direct sale to private entities
Direct sale to labour collectives (bodies)
Incorporation (Joint-Stock Companies)4
128
6
1
30
177
8
Construction Lease with subsequent buy-out
Auctioning
Sale through auctions
Sale through tendersDirect sale to private entities
Direct sale to labour collectives (bodies)
Incorporation (Joint-Stock Companies)2
298
11
3
13
69
22WT/ACC/SPEC/KGZ/13
Page 15
Sector Privatization Mode Number of
Privatized Objects
Transport Auctioning
Direct sale to private entitiesDirect sale to labour collectives (bodies)
Incorporation (Joint-Stock Companies)137
3
11
3
Other sectors Lease with subsequent buy-out
AuctioningSale through auctions
Sale through tenders
Direct sale to private entities
Direct sale to labour collectives (bodies)
Incorporation (Joint-Stock Companies)24
151
77
28
171
193
28
12bis Some  members of the Working Party stated that the Kyrgyz Republic should accept a
commitment to transparency in this area which was appropriate to its particular situation.   
13. The representative of the Kyrgyz Republic stated that the Kyrgyz Republic would provide
annually to WTO Members information on developments in its privatization for as long as itsprogramme of privatization is in existence along th e lines of the information provided to the Working
Party during the accession process, and on other issues related to its economic reforms as relevant toits obligations under the WTO.    The Working Party took note of this commitment.
- Pricing policy
14. At the earlier stages of the deliberations, the representative of the Kyrgyz Republic stated that
all prices had been liberalized except when the concerned item was supplied by an entity that has beenclassified as either a natural, permitted or  temporary monopoly. [Certain natural monopolies
(electricity, gas pipelines, telecommunications, railroad and aviation) were regulated through eitherprice or profit restrictions by the Anti-monopoly Department within the Ministry of Finance.  Pricesof water supply, heat, hot water and public transport were set by city or oblast administrations.  Non-natural monopolies with  a dominant position in the market (more than 35 per cent market share) weresubject to profitability control.  The allowable ma rgin of profitability had ranged from 25 per cent to
50 per cent.  At that time, there were 105 companies (mostly goods producers) subject to profitabilitycontrol.  Companies which exceeded their allowa ble profitability margin had to provide a written
justification to the Anti-Monopoly Department.]WT/ACC/SPEC/KGZ/13
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15. Some members of the Working Party requested further information on which "natural
monopolies" were subject to pricing or profit controls, and how such controls were operated.  Inresponse, the representative of the Kyrgyz Republic later on, describing the current situation, statedthat tariff rates were required to be approved by the Anti-Monopoly Department at the Ministry ofFinance (AMD), on the basis of levels and norms of profitability: cost of operating a specificinfrastructure (e.g. power transmission line, pipeline) or producing a specific product plus a profitmargin set by the AMD.    The following natural monopolies were subject to price and profit controls:
- Kyrgyz Energy Holding production, transmissio n, and distribution of electricity and thermal
power);
- Kyrgyzgasmunaizat (natural gas);- Kyrgyztelecom (communication services);- Kyrgyzalco (alcohol and alcoholic products);- Kyrgyztamekesei (tobacco and tobacco products);- Kyrgyz Aba Joldoru (air transport of passengers and cargo); and- Kyrgyzrailroad (rail transport of passengers and cargo).
In addition, the prices of services provided by Kyrgyztelecom (e.g. cost for installing a phone, rate of
long distance calls/per minute) were set by the AMD.  The prices of services provided byKyrgyzgasmunaizat (only gas for population) and Kyrgyz Energy Holding (e.g. electricityHS 2716 rate/kwh) were established by the State Agency on Energy.  Prices for using sewagesystems, water, and city public transport are set by city or oblast administrations.   All fees for services
provided by the state were subject to control (e.g. fee for driver’s license, fee for obtainingphytosanitary certificate, fee for obtaining veterinary certificate).   Permitted monopolies (eightcompanies) and temporary monopolies (34 companies) - these are companies which have dominantposition in the market (more than 35 per cent market share) - are not subject to price or profitabilitycontrol.  Permitted monopolies were required to notify their prices to the Anti-Monopoly Departmentat the Ministry of Finance.  All other natural monopolies were permitted to set their prices freely.
16. The representative of the Kyrgyz Republic stated that the Kyrgyz Republic's regime for price
and profit control for natural monopolies would be op erated in conformity with the requirements of
Articles II and III of the GATT 1994 and Article VIII of the GATS.WT/ACC/SPEC/KGZ/13
Page 17
17. Some members of the Working Party noted that two of the covered entities dealt with the
production and sale of alcohol and tobacco: Kyrgyzalco and Kyrgyztamekesi.  They requestedadditional information on the price controls applied.   In response, the representative of theKyrgyz Republic stated that Kyrgyzalco was a St ate Joint Stock Company within which there were
currently 14 joint stock companies.  The domestic market share of companies under the structure ofKyrgyzalco in the sale of alcoholic products was approximately 60 per cent.  Wholesale prices ofalcoholic products were established separately by each of the enterprises under Kyrgyzalco.Enterprises under Kyrgyzalco were required to declare their prices to the Anti-Monopoly Departmentunder the Ministry of Finance and were subject to profitability control by the Anti-MonopolyDepartment. Profit could not exceed 20 per cent.  There were no plans to eliminate Kyrgyzalco andtake away its authority to license the trade and production of alcohol and alcoholic products.
18. In relation to Kyrgyztamekesi, the representative of the Kyrgyz Republic added that it was a
State Joint Stock Company with seven companies under its structure (six were joint stock companiesand one was a State enterprise).  The domestic market share of Kyrgyztamekesi was approximately16 per cent for tobacco products.  Kyrgyztamekesi was required to declare its prices to the Anti-Monopoly Department under the Ministry of Finance and was subject to profitability control by theAnti-Monopoly Department.  Its profit was not permitted to exceed 20 per cent.
19. In response to requests from some members of the Working Party, the representative of the
Kyrgyz Republic explained that the controls mentioned above were authorized by the Law of theKyrgyz Republic on Limitation of Monopolistic Activities and the Development and Protection ofCompetition of 15 April 1994 and sub-central authorities applied such controls in accordance with thesame law.  The purpose of price and profits control was to regulate natural monopolies and fees forservices charged by State bodies.  In general, the Government of the Kyrgyz Republic wished to avoidapplication of such measures, and intended to do so in the future in accordance with the law.
20. The representative of the Kyrgyz Republic stated that the
 all price controls on products and
services still in effect, at the central and sub-central level were listed in paragraph 15 above by HSnumber where applicable. All other prices for goods and services in the Kyrgyz Republic weredetermined by market forces.  Any changes in price controls or additional controls would bepublished in official publications.  All price controls would be applied in a WTO-consistent fashion,taking into account the interests of exporting WTO Members as provided for in Article III:9 of the
GATT 1994.  The Working Party took note of these commitments.WT/ACC/SPEC/KGZ/13
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IV. FRAMEWORK FOR MAKING AND ENFORCING POLICIES
- Powers of executive, legislative and judiciary, administration of policies on WTO -
related issues
21. The representative of the Kyrgyz Republic stated that under the Constitution of the
Kyrgyz Republic, governmental power was divided among the executive, legislative and judicialbranches, with the President being afforded the mo st significant power.   The President was the Head
of State and the highest government official.  The executive powers were exercised by theGovernment (principally, the Cabinet of Ministers) formed by the President.  The head of theGovernment was the Prime Minister.  The President was elected to a 5-year term of office on the basisof universal (persons 18 years of age and older), equal and direct suffrage by secret ballot.  TheConstitution gave the President wide-ranging powers:  he was the highest representative of theKyrgyz Republic both within the country and in international relations; he determined the basic
direction of domestic and foreign policy and had the right to propose and veto legislation;  his assentwas required for any bill passed by the Parliament to become law (unless the Parliament wasexercising a presidential veto).  He had the power to issue decrees and to suspend or invalidate acts ofthe Cabinet of Ministers and other executive bodies.  The President was responsible for appointingmembers of the Cabinet of Ministers.
22. The representative of the Kyrgyz Republic further added that the Cabinet of Ministers was the
principal institution of Government.  Executive power  was exercised by the Cabinet of Ministers, as
well as the individual ministries, State committ ees, administrative departments, other central
executive bodies and local State administrations under the control of the Cabinet of  Ministers.  TheCabinet of Ministers consisted of the Prime Minister, all Vice-Prime Ministers, all Ministers andHeads of State Committees.  The Government wa s the highest body within the executive power
system of the Kyrgyz Republic, (except the President) and as such directly controls activities of localstate administrations on a range of issues, including those involving external trade matters andimplementation of provisions of international treaties to which the Kyrgyz Republic is a party.Article 6 of the Civil Code provided that intern ational agreements ratified by the Kyrgyz Republic
were to take precedence over conflicting provisions in civil legislation.  The Kyrgyz Republic Law"On Government" of 25 March 1997 No. 17 set out the functions and authority of the centralgovernment and provides in Article 20 and 21 that the Government shall direct the implementation ofall laws and decrees of the Kyrgyz Republic.  The Kyrgyz Republic Law "On local self-governmentand local state administrations in the Kyrgyz Republic" of 19 April 1991 N-437-XII set out thepowers of the local governments.  These powers were  subordinate to those of the national government
and did not entail authority concerning trade policy, which is the sole purview of the centralauthorities.WT/ACC/SPEC/KGZ/13
Page 19
23. The representative of the Kyrgyz Republic stated that the Parliament exercised legislative
power was implemented by the Parliament which consisted of two chambers:  the LegislativeAssembly and the Assembly of People’s Representatives.  Judicial authority was exclusivelyexercised by the Courts.  The Court system cons isted of a commercial division and an ordinary
division.  Generally, the commercial division dealt with business and commercial disputes betweenlegal entities, whereas the ordinary division had exclusive jurisdiction over all other types of disputes,including civil, criminal and administrative law matters, as well as commercial disputes where at leastone of the litigants was an individual or a collective farm.  Both Court systems were divided into tiers.The commercial division had two tiers.  Seven regional commercial Courts of general primaryjurisdiction (one for the city of Bishkek and one for each of the six oblasts) constituted the lower tier.The Supreme Commercial Court constituted the upper tier.  It had appellate jurisdiction over thedecisions of  the regional commercial Courts, and primary jurisdiction over disputes involving any"non-normative" aspect of an act of any governmental body, institution or official.  The ordinaryCourt system was divided into three tiers.  The lower tier was composed of district Courts.  Themiddle tier was composed of seven regional Courts (one for the city of Bishkek and one for each ofthe six oblasts), which had initial appellate jurisdiction over the decisions of the district Courts.  TheSupreme Court alone had final appellate jurisdiction over the decisions of the regional Courts.    Byvirtue of the Constitution judges had immunity when acting in their official capacity.  Any member ofthe three high Courts (the Constitutional Cour t, the Supreme Court and the Supreme Commercial
Court) could be removed from his/her post upon a formal presentation to the Parliament by thePresident.  Lower Court judges could be removed if they failed  a qualification test.   Agency actionsaffecting trade were subject to administrative and appellate review.  Article 2(3) of the Civil Codeprovided for the right to appeal an administrative decision in court.  Specifically, Articles 417 to 428
of the Customs Code of 1 October 1997 provided for the right to appeal decisions of the customsbodies.  Article 57 of the Tax Code provided for administrative appeals of decisions of an official ofthe Tax Service.   Article 58 provided for appellate review of any final decision of the Tax Service.Article 18 of the Law on Licensing provided for the righ t to appeal issues relating to the refusal in the
issue of a licence.
24. The representative of the Kyrgyz Republic stated that the Kyrgyz Republic would provide a
right of appeal to an independent body for foreign and domestic importers and exporters of officialmeasures affecting trade.  The Working Party took note of this commitment.WT/ACC/SPEC/KGZ/13
Page 20
- Authority of sub -central governments
25. The representative of the Kyrgyz Republic stated that the Kyrgyz Republic was divided into
seven regional executive administrations, under the direct supervision and control of the Cabinet ofMinisters.  Within each  regional executive administration were a number of departments havingregional competence over certain specified matters, e.g., a Department of Agriculture, a Departmentof Economy, which reported both to the regional executive administration and to its correspondingnational Ministry.  Because the regional executive administrations were under the control andsupervision of the Cabinet of Ministers and each national Ministry, local governmental policyaffecting trade in goods and services was  exclusively determined by the central Government.Governors headed the oblast regional executive administrations, and were appointed by the Presidentwith the consent of the corresponding kenesh.  At the lowest level of government were the rayon(district) executive administrations.  The President, with the consent of the kenesh of the rayon,appointed the head of each rayon administration after considering the recommendation of theconcerned governor or mayor.  The President could also remove the head of the local rayonadministration after taking into account the recommendation of the concerned governor or mayor.  Inaddition to the regional executive administrations, Bishkek and the oblasts each had a locally electedunicameral legislature called a kenesh.  Each regional kenesh was responsible for legislation dealingwith regional social and economic matters.  Each kenesh must also approve the budget prepared by itscorresponding regional executive administration.  If a kenesh passed a piece of legislation on a matterwithin its competence, it automatically became law.  Each rayon had a local kenesh composed of 15-25 elected representatives, the primary responsibility of which was to adopt legislation dealing with asmall range of local matters.
26. The representative of the Kyrgyz Republic confirmed that central authorities would be solely
responsible for establishing foreign trade policy and that the central Government would implement theprovision of the WTO relevant to sub-central governments, including Article XXIV:12 of theGATT 1994, the corresponding WTO Understanding and Article I:3(a) of the GATS;  that sub
-central
administrative authorities, e.g. local administrative bodies, had no jurisdiction or authority to establish
regulations or taxes on goods and services in the Kyrgyz Republic independent of the central
authorities and that the central government woul d eliminate or nullify measures taken by sub -central
authorities in the Kyrgyz Republic that conflict with WTO provisions from the date of accession .  The
Working Party took note of these commitments.WT/ACC/SPEC/KGZ/13
Page 21
V. POLICIES AFFECTING TRADE IN GOODS
- Registration and right to trade
27. The representative of the Kyrgyz Republic stated that all natural and legal persons engaging
in any type of economic activity in the Kyrgyz Republic were required to be registered.  He noted thatthe Kyrgyz Republic had no special registration requirements for persons engaging in importing orexporting nor were individuals or firms restricted in their ability to import or export based on thescope of business of their registration.  There were no restrictions, such as capital or nationalityrequirements, on persons wishing to engage in foreign trade.  The representative of the KyrgyzRepublic also confirmed that the former State monopoly in foreign trade had been abolished.
28. The representative of the Kyrgyz Republic confirmed that the Kyrgyz Republic would ensure
that, should any laws and regulations relating to the right to trade in goods, and all fees, charges ortaxes levied on such rights, be introduced in the futu re, they would be in full conformity with its WTO
obligations, including Articles VIII:1(a), XI:1 a nd III:2 and 4 of the GATT 1994 and that it would
also implement such laws and regulations in full  conformity with these obligations.  The Working
Party took note of these commitments.
- Customs tariff
- Ordinary customs duties
29. The Kyrgyz Republic engaged in market access negotiations on goods.  The tariff concessions
resulting from these negotiations are reproduced in the Schedule annexed to the draft Protocol ofAccession of the Kyrgyz Republic which is reproduced in the Appendix to this Report.
30. In response to requests for information, the representative of the Kyrgyz Republic stated that
the Customs Tariff of the Kyrgyz Republic was contained in the Customs Tariff Law.  The temporarytariff was a flat 10 per cent tariff on all imported goods, except those for which an explicit exemptionhad been created by 
the Customs Tariff Law on 15 December 1992.  Under the temporary flat
10 per cent regime, the average trade-weighted level of import duties (after adjusting for exempteditems and items qualifying for the Kyrgyz Republic’s preference scheme) was 8.4 per cent in 1995.  In1997, 
by Government Decision, the Kyrgyz Republic had converted the tariff nomenclature to
adopted  HS 96 as its tariff nomenclature, retaining  which  had not altered the tariff rates set in   of
1992.  Tariff descriptions were coded at the 6 and 9-digit levels.    In response to further questions, henoted that the Kyrgyz Republic was engaged in negotiations to join the World Customs Organization.WT/ACC/SPEC/KGZ/13
Page 22
31. He further added that under the Kyrgyz Republic’s System of Preferences, goods originating
in developing countries were subject to a duty rate which was 50 per cent of the tariff rate while goodsproduced in and imported from least developed countries were free of duty.  The system ofpreferences may be modified from time to time, in accordance with the provisions of the CustomsCode 
of 1 October 1997.
32. In response to questions concerning the seasonal duties, the representative of the
Kyrgyz Republic stated that according to the Customs Code of 1 October 1997  which incorporated
the matters previously covered by the Tariff Law of 1992 , the Cabinet of Ministers of the Kyrgyz
Republic may establish seasonal duties.  The representative of the Kyrgyz Republic stated that ifimposed, seasonal duties would not exceed the bound level of tariffs and would be applied in amanner consistent with the requirements of the WTO Agreement.  Also, adequate notice would beprovided before imposing seasonal duties.  The Working Party took note of these commitments.
- Tariff quotas, tariff exemptions
33. In response to questions from some members of the Working Party, the representative of the
Kyrgyz Republic stated that any business enterp rise operating in the Kyrgyz Republic, (including
wholly or partially foreign owned enterprises) could apply to the Ministry of Industry and Foreign
Trade to receive tariff exemptions for imports of certain items used in the production of finalproducts.  Applications for tariff exemptions were not automatically approved by the Ministry ofIndustry and Foreign Trade.  The criteri
on applied in consideration of an application w as whether the
items will be used in the production of final products. Import substitution or export performance werenot factors in consideration of the requests.  The exemptions were granted to the requesting enterprisealone.  Since 30 March 1994, 436 businesses had enjoyed the benefits of the duty exemptions.
34. Some members of the Working Party noted that exemptions were granted to some products
originating in CIS countries.  They recalled that Article I of the GATT 1994 req
uired application of
the MFN principle, whilst Article XXIV permitted exceptions to Article I in the case of regional
integration initiatives provided that the conditions of Article XXIV and the Understanding were
complied with.  They asked if the Kyrgyz Republic was prepared to enter a commitment that tariff
exemptions would only be given to third countries in the context of a WTO compatible Free TradeAgreement or Customs Union Agreement.WT/ACC/SPEC/KGZ/13
Page 23
35. The representative of the Kyrgyz Republic stated that upon accession to the WTO, any tariff
exemptions would only be implemented in conform ity with the relevant WTO provisions including
Articles I and XXIV of the GATT 1994.  The Working Party took note of this commitment.
- Other duties and charges
36. The representative of the Kyrgyz Republic confirmed that the Kyrgyz Republic levied no
duties and charges on imports other than ordinary customs duties.  He further confirmed that theKyrgyz Republic had bound other duties and charges within the meaning of Article II:1(b)of theGATT 1994  at zero in its Schedule of Concessions on Goods which is reproduced in Part I of theAnnex to the Protocol of Accession.
- Fees for services rendered
37. Some members of the Working Party requested information on any fees applied to imported
products.  In response, the representative of the Kyrgyz Republic stated that an ad valorem  customs
processing fee was levied on imported goods.  In response, some members of the Working Partystated that the fee did not appear to be consistent with Article VIII of GATT 1994, which required thatfees and charges related to importation be limited to the cost of services rendered.  The representativeof the Kyrgyz Republic stated that the government was considering how to alter the current customsclearance fee from an ad valorem  fee into a fee that recovered the actual cost of the service provided.
The Kyrgyz Republic was attempting to calculate the actual cost of the services rendered inconnection with importation.  The representative of the Kyrgyz Republic added that theKyrgyz Republic would ensure that all fees and charges related to importation reflected the cost ofservices rendered.
38. Following further requests for information, the representative of the Kyrgyz Republic noted
that the Kyrgyz Republic proposed to use the ad valorem  rate of 0.15 per cent with minimum and
maximum limits.  The limits would be determined on an annual basis to account for inflation. Theexisting rate of 0.15 per cent would be continued, even though the expense/revenue ratio was3.6 per cent for fiscal year 1996 and was estimated at 2.4 per cent for fiscal year 1997.  The minimumand maximum fees were determined using a methodology that was based on internationallyrecognized cost accounting principles and practices.  The minimum fee consisted of two components:direct costs and indirect costs.  Direct costs were those that were exclusively incurred to processimport declaration, and consisted of employee costs to process an import declaration.  The time spentby an employee to process various categories of import goods was analyzed and the average employeecost to process an import declaration was computed.  Indirect costs were those that were incurred forWT/ACC/SPEC/KGZ/13
Page 24
various customs activities including import processing.  These costs, also called overhead costs, were
allocated based on approximate total time spent by customs employees.  On average, Kyrgyz Customsemployees spent about 50 per cent of their time processing import declarations.  As a result,50 per cent of the total overhead costs were allocated to import processing.  The maximum fee wasbased on the total costs of Kyrgyz Customs. It was estimated that approximately 50 per cent ofCustoms resources were consumed to process import declarations. As a result, about 50 per cent oftotal costs were allocated to import processing.  The Kyrgyz Republic would create a revolving fundto finance import processing activities. All revenues collected from import processing fee would becredited to this fund. The proceeds from the fund would be used only to meet the costs of importprocessing.
39. Following further requests for information on the customs processing fee, the representative
of the Kyrgyz Republic stated that in pursuance of Article VIII of the GATT 1994, the new CustomsCode of the Kyrgyz Republic put into effect on 1 October 1997, provided that customs fees collectedfor customs clearance must not exceed the approximate cost of the services provided.
40. The representative of the Kyrgyz Republic also noted that an import/export License Fee was
also charged.  The current fee was som 1,000 (US$56).  Analysis had revealed that the current feereflected the cost of services rendered.  
In response to questions he provided the following table
listing all customs fees applied to imports:  The following fees are charged by the Directorate on the
Technical Development of the Customs Infrastructure under the State Customs Committee for
customs storage:WT/ACC/SPEC/KGZ/13
Page 25
N Name Units Price including
VAT
(in Som)
 1Storage of trucks containing goods (fee charged per 100 kg
of goods: units not divisible (i.e.  120 kg = fee charged for
200 kg):
up to 24 hours
each additional day100 kg
100 kg7
10
2Storage of oil products and other goods at rail yard:
per day0.1% of the
value of goods
3Storage of goods delivered by air transport over the CIS
from the moment of notification:
first 5 days
from 5 days up to 10 days
over 10 days1 kg of goods
1 kg of goods
1 kg of goods0.20/day
0.40/day
0.60/day
4Parking within the customs control zone:
first hour
for each additional hour and for each further day1 place
1 place3
5
41. The representative of the Kyrgyz Republic stated that prior to the date of accession to the
WTO, the Government of the Kyrgyz Republic would adopt, through implementing Regulations, theprovisions and methodology for the application of the customs processing fees as described inparagraphs 38 and 39 above.  
He expected that those Regulations would enter into force on 20 June
1998.  He confirmed that all fees and charges for services related to importation or exportation and
would be operated in conformity with the provisions of Article VIII of the GATT 1994 from the dateof accession. The Working Party took note of these commitments.
- Tariff rate quotas
42. In response to questions from some members of the Working Party, the representative of the
Kyrgyz Republic stated that the Kyrgyz Republic maintained no tariff quotas, and did not intend tointroduce tariff rate quotas in the future.  Any tariff rate quotas introduced in the future would beoperated in conformity with the relevant WTO provisions, including Article XIII:5 of theGATT 1994.WT/ACC/SPEC/KGZ/13
Page 26
- Application of internal taxes on imports
- Value Added Tax
43. In response to requests for information, the representative of the Kyrgyz Republic stated that
a 20 per cent VAT was imposed on all sales of goods within the Kyrgyz Republic, as well as on goodsimported from non-CIS countries. The VAT was imposed on non-CIS imports at the time ofimportation, and was collected by the customs authorities. The base for assessment of the VAT wasthe sum of (i) the customs value of the goods plus (ii) transportation, insurance and other costs relatedto the importation of goods where applicable.  With respect to goods imported from CIS countries, noVAT was collected until the good was sold within the Kyrgyz Republic;  and the seller was permittedto claim a VAT credit for the amount of VAT paid in the exporting CIS country.  This VAT-creditmechanism for imports from CIS countries was in effect in all CIS countries.  In addition, VATexemptions were granted for (i) goods imported to render assistance in connection with naturaldisasters, armed conflicts, or accidents;  (ii) goods imported as humanitarian assistance as specifiedunder an order of the Cabinet of Ministers;  (iii) imported goods which the importer had previouslyexported;  (iv) goods temporarily imported under bond, provided such goods were exported in anunaltered condition within twelve months;  (v) goods mistakenly imported into the Kyrgyz Republicand being returned to the original exporter;  (vi) goods in transit through the Kyrgyz Republic;(vii) imported goods intended for official use by foreign embassies or similar representative offices offoreign governments and imported goods intended for the personal use of the diplomatic,administrative or technical personnel of such embassies or representative offices or the familymembers of such personnel; (viii) pharmaceuticals and medicinal supplies specified by Cabinet ofMinisters;  (ix) educational supplies and school equipment;  (x) baby food;  (xi) capital goodsimported by a legal entity or entrepreneur for use in its/his productive economic activity;  and(xii) other imported goods specified as  VAT-exempt pursuant to the customs legislation of theKyrgyz Republic.
44. Some members of the Working Party stated that Article XXIV of the GATT 1994 does not
exempt regional integration agreements from application of the MFN principle with regard to internaltaxation.  They requested an indication when the Kyrgyz Republic would bring its system of VATapplication into line with Article I of the GATT 1994.  In response the representative of theKyrgyz Republic stated that the Kyrgyz Republic understood the need to bring its VAT system intoconformity with accepted world practice, i.e. applying the VAT to all goods sold or imported into theKyrgyz Republic regardless of their country of origin, and exempting exported goods regardless oftheir country of destination.  However, he noted that because it was necessary to obtain the agreementof other CIS countries to do so it was not possible to give a date for elimination of the practice.  Abilateral agreement had been reached with Kazakstan, with the result that Kazakstan was treated as aWT/ACC/SPEC/KGZ/13
Page 27
"non-CIS" country with respect to the application of VAT.  Moreover, analogous agreements have
been signed with Armenia, Azerbaijan, Belarus, Tadjikistan, Ukraine and Uzbekistan which had
entered into force on ...), and initialled with Georgi a.  A Protocol signed with the Russian Federation
recently would change this practice in their trade as of 1 January 1999.
45. The representative of the Kyrgyz Republic stated that the Law on Making Amendments and
Supplements to the Tax Code of the Kyrgyz Republic would be adopted no later than 1 January 1999and that as soon as possible from the date of accession , in accordance with the legislative programme
outlined in paragraph 44 above,  but not later than 1 January 1999, the Kyrgyz Republic would ensure
that value added taxes would be applied to imports in full conformity with WTO requirements, inparticular, the most-favoured-nation requirements of Article I and the national treatment provisions ofArticle III of the GATT 1994.  The Working Party took note of this commitment.
- Excise Taxes
46. In response to requests for information on the excise taxes applied in the Kyrgyz Republic,
the representative of the Kyrgyz Republic stated that excise taxes were imposed on certain goodswhether produced in or imported into the Kyrgyz Republic.  He further added that the new Tax Codespecified that the following goods were subject to excise taxes:  (i) alcoholic beverages, drinks, spiritsand liquors;  (ii) items destined for wine production;  (iii) tobacco and tobacco products;  (iv) gold,silver and platinum jewellery;  (v) processed and non-processed fur hides (except for the hides ofmoles, rabbits, dogs, deer, or sheep);  (vi) clothing made of natural fur (except for apparel made of thehides of moles, rabbits, dogs, deer, or sheep);  (vii ) coats, short coats, jackets and cloaks trimmed with
fur (except for the fur of moles, rabbits, dogs, deer or sheep);  (viii) clothes made from natural leather;(ix) crystal items, including lighting appliances made of crystal;  and (x) firearms, including gasweapons (other than those procured by State authorities).  The following imported goods wereexempted from excise tax:  (i) goods needed to operate or repair vehicles being used for theinternational conveyance of passengers, baggage or cargo;  (ii) goods which were damaged andthereby made useless prior to their entry into the Kyrgyz Republic;  (iii) goods imported ashumanitarian aid;  (iv) goods imported for charitable or aid purposes, including technical assistancesupplied by foreign States and international organizations;  (v) goods confiscated by or escheated tothe State;  (vi) goods in transit through the Kyrgyz Republic; and (vii) goods intended for official useby foreign embassies or similar representative offices of foreign governments and imported goodsintended for the personal use of the diplomatic, administrative or technical personnel of suchembassies or representative offices or the family members of such personnel.WT/ACC/SPEC/KGZ/13
Page 28
47. The representative of the Kyrgyz Republic added that some excise taxes were assessed on an
ad valorem  basis, while others were assessed on a quantity basis.  Domestic and imported goods were
subject to differing excise tax rates.  Imported goods subject to excise tax were exempted fromcustoms duties.  Some members also requested information on the methodology used to calculateexcise rates for domestic,  CIS and other imported products.  In response, the representative of theKyrgyz Republic stated that the Cabinet of Ministers Resolution No. 557 of 26 September 1997, andResolution No. 702 of 4 December 1997 established the methodology to be used for calculatingexcise taxes.  This methodology was the same for goods produced in the Kyrgyz Republic andimported from other countries including CIS countries.
In cases where the excise tax rate was established in proportion of the wholesale price of
goods:
H= C x A:100%whereH = the amount of excise taxC = the wholesale price of goods (or their customs value at the point of import)A = the rate of excise tax in per cent.
In cases where the excise tax rate was established in US$ to the physical volume of goods:
H = O x T x KwhereH = the amount of excise taxO = the physical volume of manufactured or imported goods (kilogram, litre, units, tons)T = the rate of excise tax in US$ per unitK = the US$ exchange rate to the Kyrgyz Som.
The Som was the only currency that could be used for payment of excise taxes for both imports and
domestic products.  Conversion into Soms was based on the official exchange rate of the NationalBank of the Kyrgyz Republic.
48. The representative of the Kyrgyz Republic further added that the new Tax Code, which came
into effect on 1 July 1996, substantially changed the list of goods subject to excise tax.  However, norates had been set for the items newly subject to excise tax.  In the interim, customs duties applicableto such items had temporarily been increased.  He stated that the current system of excise taxationtreated imported and domestic products differently.  In response, some members of the Working Partystated that although they welcomed the Kyrgyz Re public's recognition that the current excise tax
system treated domestic and imported products differently, which was inconsistent with Article III ofWT/ACC/SPEC/KGZ/13
Page 29
the GATT 1994, they asked that the system be brought into conformity with that provision and
requested a progress report on the reform of the system.   In response, the representative of theKyrgyz Republic stated that following a review of excise tax rates, the Legislative Assembly had inDecember 1996 approved the following table of excise tax rates.
Table 3:  New Excise Tax Regime
Goods Domestic Rates Imported Rates HS Codes
Ethyl alcohol and purified ethyl alcohol
produced from raw materials (except thoseimported by special consumers within stipulated
limits)$1.4/litre $1.4/litre 2207
Vodka $0.90/litr e $0.90/litr e 220890110-220890390
Liqueurs and vodka produ cts $0.90/litre $0.90/litr e 220810,
220830,220890510-220890790,220890910,
220890990
Alcoholized beverages, juice and balsam* $0.90/litre $0.90/litre 220840,
220850
Grape wineother wines$0.35/litre
$0.29/litre
Wine $0.35/litr e 220421-220429,
2205,
2206
Cognac $0.60 /litre $0.80/litr e 220820100
Sparkling wines $0.40/litre $0.45/litre 220410
Beer:
- packaged- unpackaged$0.80/litre
$0.05/litre$0.25/litr e 2203
Raw materials for wine production $0.15/litre $0.20/litre 220430
Tobacco products**
- filter cigarettes
- unfiltered cigarettes$1.5/1000 each
$0.75/1000 each$5/1000 each
$2/1000 each2402
2402
Other tobacco-containing items, includingfermented tobacco12% 240110,
240120, 2403
Gold, platinum or silver jewellery 20% 30% 7113-7118
Processed and raw fur hides (other than mole,rabbit, deer, dog and sheep skin)0% 10% 4110,
4103-4104,4106-4109WT/ACC/SPEC/KGZ/13
Page 30
Goods Domestic Rates Imported Rates HS Codes
Wearing apparel made of natural fur, including
coats, short-coats, jackets, capes, stoles, scarves,headgear, collars, fur coats and fur pieces (other
than apparel made of hides of mode, rabbit, dog,
deer or sheep skin) 0% 10% 4303
Coats, short-coats, jackets and capes trimmed
with fur (other than mole, rabbit, dog, deer orsheep skin)0% 10% 4303
Clothing made of natural leather 0% 10% 4203
Crystalware 0% 30% 701321,
701331,
701391
Firearms and gas weapons (other than those
acquired for the needs of State agencies)10% 20% 9301-9393,
9305-9306
Oil products:- gasoline, soft and medium distillates$45/ton $45/ton 2707,
271000330,271000350,
271000390,
271000110,271000150,271000210,271000250,271000410,
271000450
Aircraft fuel $45/ton 271000510-271000590
Diesel fuel $0/ton $45/ton 271000610,
271000650,271000690
Black oil $0/ton $0/ton 271000710,
271000750,27100790
Other $0/ton $0/ton 271000550,
271000910,
271000930,271000990
Coffee and cocoa products 10% 0901, 1801, 1803-1805
Carpets and rugs (except floor coverings) 0% 35% 57
* Excise tax rates were calculated based on the content of ethyl alcohol in such items, the base being a
beverage containing 45 per cent alcohol.
** Pursuant to Resolution No. 430 of 23 July 1997 of the Kyrgyz Republic for imported tobacco products
(topped cigarettes and without tops) with excise stamps, the rate of excise tax is U$1.5 per 1000cigarettes, pursuant to Resolution No. 430 of 23 July 1997 of the Kyrgyz Republic.WT/ACC/SPEC/KGZ/13
Page 31
49. Some members of the Working Party stated that the proposed new rates of excise taxation did
not appear to resolve the problems of inconsistent rates of taxation, in particular higher rates oftaxation for certain imported products.  They requested that the system be brought into conformitywith Article III of the GATT 1994, and that imported products not be subject to tax rates in excess ofthose applied to domestic products.  In response, the representative of the Kyrgyz Republic stated thatthe excise tax system prevailing in the Kyrgyz Republic was already in full conformity with WTO
most-favoured-nation requirements.  He noted that no imported goods to the Kyrgyz Republic weresubject to both excise taxes and import duties at the same time, although it was not contrary tointernational practices or WTO rules to have apply both excise taxes and import duties to an importedgood.
50. The representative of the Kyrgyz Republic stated that by 1 January 1999 the date of accession
to the WTO , the Government of the Kyrgyz Republic would comply with the provisions of Articles I
and III of the GATT 1994 with regard to the applic ation of excise taxes and would adopt a decision
establishing a single excise tax regime with the same rates applied equally to imported and
domestically produced goods .  The Working Party took note of these commitments.
- Quantitative import restrictions
51. In response to questions, the representative of the Kyrgyz Republic stated that the
Kyrgyz Republic maintained no   few quantitative import restrictions and it did not plan to introduce
import quotas  restrictions except in those circumstances permitted by the WTO Agreements. The
Kyrgyz Republic did not foresee balance of payment problems in the next 2 years provided that thecurrent economic situation continued to evolve favourably.  Currently, the only import restrictionsapplied in the Kyrgyz Republic applied to military arms and goods;  explosives;  nuclear materialsand technology for military use;  virulent poisons;  and narcotics (including those used inpharmaceuticals) and psychotropic substances.  The system applied to goods originating in andcoming from all countries, including other CIS countries.
52. The representative of the Kyrgyz Republic stated that if the Kyrgyz Republic introduced
import quotas as an emergency measure in the future they would be in conformity with Article XIX ofthe GATT 1994;  and if import quotas were introduced for balance of payment purposes they wouldbe in conformity with Articles XII and Article XVIII of the GATT 1994 and the WTO Agreement.WT/ACC/SPEC/KGZ/13
Page 32
- Import licensing procedures
53. In response to requests for information, the representative of the Kyrgyz Republic stated that
previously, import licences had been required for fi ve broad categories of goods.   A Draft Regulation
finalised and submitted to the Working Party specified in greater detail the goods subject to licensing,and broke down the covered goods into 19 sub-items.  The representative of the Kyrgyz Republicprovided the Working Party, with the fo llowing table listing the covered goods:
Table 4:  List of Specific Goods Imported under Licences
contained in the Draft Regulation on Import/Export Licensing
Goods HS Code Rationale/Justification
1. Ciphering devices
(including cipheringequipment, spare parts forthe  ciphering equipment,
ciphering programs),
normative and technicaldocuments to the cipheringdevices (includingdesigning and exploiting)8471 (ciphering equipment only),
847330000 (for the cipheringequipment only), 854380900(ciphering equipment only),
854390900 (ciphering equipment
only)To protect the Republic’s national
security
2. Arms and weapons, specific
parts for their production,works and services in thearea of military -technological cooperationby the list of the Ministry of Defense
of the Kyrgyz RepublicTo protect the Republic’s national
security
3. Protection devices from the
battle poisoning substances,
parts and accessoriesthereofby the list of the Ministry of Defense
of the Kyrgyz RepublicTo protect the Republic’s national
security
4. Military uniform, clothing
and attributesby the list of the Ministry of Defense
of the Kyrgyz RepublicTo protect the Republic’s national
security
5. Normative and technical
documents to the military
products (construction andexploitation)by the list of the Ministry of Defense
of the Kyrgyz Republic To protect the Republic’s national
securityWT/ACC/SPEC/KGZ/13
Page 33
Goods HS Code Rationale/Justification
6.  Gun powder and
explosives, explosivedevices and pyrotechnics3601 (except for the hunting
powder), 3602, 3603, 3604To protect the Republic’s national
security
7. Nuclear materials,
technologies, equipmentand plants, special non -nuclear materials, sourcesfor the radioactiveradiation, including
radioactive wasteby the list approved by the President
of the Kyrgyz Republic (ResolutionNo. 55, 2 June 1996,  theGovernment of the KyrgyzRepublic)To maintain the Republic’s national
security, as well as to adhere tointernational commitments relatedto non-proliferation of massdestruction and productiontechnologies thereof
8. Materials, equipment and
technologies which areintended for peacefulpurposes but can not beused while creatingweapons for massexterminationIn accordance with the list passed by
the President of the Kyrgyz Republic(Resolution No. 55, 2 June 1996, theGovernment of the KyrgyzRepublic)To maintain the Republic’s national
security, as well as to adhere tointernational commitments relatedto non-proliferation of massdestruction and productiontechnologies thereof -
9. Certain types of raw
materials, equipment,
technologies and scientific
information which can beapplied while creatingweapons and militarytechniquesby the list approved by the President
of the Kyrgyz Republic (Resolution
No. 55, 2 June 1996, the
Government of the KyrgyzRepublic)To maintain the Republic’s national
security, as well as to adhere to
international commitments related
to non-proliferation of massdestruction and productiontechnologies thereof
10. Precious metals, alloys,
goods made from them,metals plated   with
precious metals and goods
made from them; ores;concentrates; scrap andwaste2616 (ores and concentrates), 2843
(metals, junctions, amalgams),300640000 (from precious metals
only), 7106-7112, 711311000,
711319000, 711411000, 711419000,711510100, 711590100, 711590900,7118 (from precious metals only),8544 (only with conductors from
precious metals), 960810300,
960839100To protect the financial position and
the balance of payments of the
Republic
To protect national treasures of
artistic, historic or archaeological
value ;  to conserve exhaustible
natural resources.
11. Precious natural stones and
goods from them, powder
and recuperate  of precious
natural stones, goods fromthem.7101, 7102, 7103 (precious stones
only), 7105 (from precious stones
only), 7116 (from precious stones
only).To protect the financial position and
the balance of payments of the
Republic
To protect national treasures of
artistic, historic or archaeological
value ;  to conserve exhaustible
natural resources.
12. Narcotics and psychotropic
drugs, virulent and
stupefying concoctionsby the list of the State Commission
for Drug Control under the
Government of the Kyrgyz RepublicTo protect the population’s life and
welfareWT/ACC/SPEC/KGZ/13
Page 34
Goods HS Code Rationale/Justification
13. Virulent poisons by the list approved by the
Government of the Kyrgyz Republic(Resolution of the Government ofthe Kyrgyz Republic of
6 February 1996, No.  55)To protect the population’s life and
welfare, as well as flora and faunain general
14. Hazardous wastes by the list of the Basil Convention
on the Control over Trans-borderTransportation of hazardous cargo of22 March  1989, approved byResolution of the Parliament of the
Kyrgyz Republic of
18 January 1996, No. 304-1)To protect the population’s life and
welfare, as well as flora and faunain general
15. Chemical means of
protection of plants3808 (preparations for the plant
protection only)To protect the population’s life and
welfare, as well as flora and faunain general
16 Pharmaceuticals by the list of the Ministry of Health
of the Kyrgyz RepublicTo protect the population’s life and
health
17. Service and civil guns by the list of the Ministry of Internal
Affairs of the Kyrgyz RepublicTo maintain public order
18. Tobacco by the list of "Kyrgyztamekisi" To protect the health and life of the
population
19. Spirits and alcoholic
products by the list of the State Joint Stock
Company "Kyrgyzalco"To maintain public order and
protect the health and life of thepopulation
The import licensing system was required to protect public health and safety, the environment,
consumer welfare and national security.  The licensing procedure was not intended to restrict thequantity or value of imported goods.   Imports subject to licensing amounted to about 2 per cent of thevalue of the Kyrgyz Republic’s total imports.  Goods  subject to import licensing were designated by
the Cabinet of Ministers upon recommendation by interested ministries and government bodies andwere not subject to administrative discretion.
54. The representative of the Kyrgyz Republic further added that to obtain a licence for import
(and also for the export) of alcohol and alcoholic products (except beer, for which there were noimport or export licensing requirements) and importer was required to submit an application for alicense and the following documents:  (i)  import or export contract;  (ii)  a copy of the purchase-salecontract if the applicant does not own the goods;  (iii)  a copy of the certificate of registration;  (iv)certificate of compliance;  (v)  certificate of origin;  (vi)  conclusion of expert-organization;  (vii)copy of tax-payer registration card.  There were no quotas connected with the import and export ofalcohol or alcoholic products.  A licence was required to be issued within ten days of application.  AWT/ACC/SPEC/KGZ/13
Page 35
licence could be obtained after goods had arrived at the border.  For imports of alcoholic beverages,
Kyrgyzalco was the sole agency with responsibil ity for determination of the licence application.
Licenses were required to be granted unless the application for a licence was not complete or theinformation contained therein was not reliable.  Article 8 of the Law on Licensing provided thatforeign legal entities or individuals, as well as indi viduals without citizenship were entitled to receive
licences on the same conditions and pursuant to the same procedures as legal entities and individualsof the Kyrgyz Republic.  Whenever a licence application was refused, reasons for the refusal wererequired to be provided to the applicant in writing.  In the case of a refusal, applicants had a  right of
appeal to a Court, per Article 18 of the Law on Licensing of 3 March 1997.
55. In response to further questions concerning the procedure for granting of an import licence, he
added that none of the items subject to import licensing were restricted as to the quantity or value ofthose imports.  Licence applications were normally approved in about 1 week.  In urgent cases anapplication could be approved in a shorter time.  Applications for an import licence could only berefused in an application did not meet the stipulated criteria.  The reasons for refusal were required tobe provided in writing to the applicant.  A decisi on to refuse to grant a licence could be appealed to
the Ministry which refused the application and furt her appealed to an independent Court.   All
persons, firms and institutions were eligible to apply for an import licence under the system of the
Kyrgyz Republic.  There was no system of registration of persons or firms permitted to engage inimportation.  The licence was valid for up to six months, or one year in the case of importers havinglong-term relationships with foreign exporters.  The licence could be renewed for a further period ofsix months.  There was no penalty for non-utilization of the licence or a portion of a licence.  Thelicence was not transferable.  The current fee to obtain an import license was som 1000(approximately US$ 56.00).  He provided members of  the Working Party with a detailed analysis of
the cost of provision of the service recovered by the fee in Attachment A.IV to documentWT/ACC/KGZ/13.  In his view that fee reflected the cost of services rendered 
in conformity with
Article VIII of the GATT 1994.
56. Some members of the Working Party asked whether the import licensing would be brought
into conformity with the Agreement on Import Lice nsing.  In response, the representative of the
Kyrgyz Republic stated that the Government of the Kyrgyz Republic was in the process of draftingregulations to establish new import licensing procedures in conformity with WTO requirements,including the Agreement on Import Licensing.  
That Law had been passed by Parliament on 8 June
1998.  A draft regulation on Import/Export Licensing was provided to the Working Party.  The
regulation would be enacted by the date of accession.WT/ACC/SPEC/KGZ/13
Page 36
57. The representative of the Kyrgyz Republic confirmed that the Kyrgyz Republic would, from
the date of accession, eliminate and shall not introduce, re-introduce or apply quantitative restrictionson imports or other non-tariff measures such as licensing, quotas, bans, permits, prior authorizationrequirements, licensing requirements and other restrictions having equivalent effect that cannot bejustified under the provisions of the WTO Agreements.  He added that the special import licenseslisted in items 10 and 11 of Table 4  were granted automatically to all who request them
 would be
issued in conformity with the provisions relating  to automatic licensing in the Agreement on Import
Licensing Procedures and would not restrict the right to import these products into the Kyrgyz
Republic or in any way discriminate against imported products.  He further confirmed that the legalauthority of the Government of the Kyrgyz Republic to suspend imports and exports or to applylicensing requirements that could be used to suspend, ban or otherwise restrict the quantity of tradewould be applied from the date of accession in conformity with the requirements of the WTO, inparticular Articles XI, XII, XIII, XIX, XX and XXI of the GATT 1994, and the MultilateralAgreements on Agriculture, Sanitary and Phytos anitary Measures, Import Licensing Procedures,
Safeguards and Technical Barriers to Trade.  The Working Party took note of these commitments.
- Customs valuation
58. In response to requests for information concerning the customs valuation system, the
representative of the Kyrgyz Republic stated that the Customs Code put into effect on 1 October 1997provides for six methods to determine the custom s value according to the WTO Customs Valuation
Agreement.  He further added that the Kyrgyz Republic did not have any import reference prices inplace and any such measures would not be reintroduced after accession, except in accordance withWTO Agreements.
59. The representative of the Kyrgyz Republic also stated that the rules to determine the customs
value contained in the Customs Code which came into force on 1 October 1997 were largely incompliance with the WTO requirements.  Amendments and corrections would be made to the new
Customs Code by the Law of the Kyrgyz Republic "On Changes and Amendments to the Customs
Code of the Kyrgyz Republic" which would been adopted on June 19 1998.  by the date of accession,
and would bring the Customs Code valuation rules in to full conformity with the WTO.  The Working
Party took note of these commitments.WT/ACC/SPEC/KGZ/13
Page 37
60. The representative of the Kyrgyz Republic indicated that the Kyrgyz Republic would fully
apply the WTO provisions concerning customs valuation from the date of accession, including, inaddition to the Agreement on the Implementation of Article VII of the GATT 1994, the provisions forthe Valuation of Carrier Media Bearing Software for Data Processing Equipment and the provisionson the Treatment of Interest Charges in Customs Value of Imported Goods.  He further confirmed
that, as an international agreement, the provisions of the WTO Agreement on the Implementation of
Article VII of the GATT 1994 would supersede domestic law after accession.  He stated that upon
accession, minimum import prices would not be applied for customs valuation purposes.   TheWorking Party took note of the
se commitment s.
- Rules of origin
61. In response to questions from some members of the Working Party, the representative of the
Kyrgyz Republic stated that the Kyrgyz Republic had no country of origin marking requirement.  Acertificate of origin certified by an authorized governmental body in the country of origin wasrequired for all imported goods.  Pursuant to the Customs Code, origin was determined by methodsspecified in the Kyoto Convention Annex.  Once the Customs Code was passed by Parliament, theKyrgyz Republic would require time to develop implementing regulations on the determination oforigin. It was envisaged that the primary method used would be the tariff shift method.  The CustomsCode did not define the list of operations that woul d be considered as sufficient to confer origin.  No
other specific implementing regulations or rules had been developed.  He also added that theKyrgyz Republic intended to adopt the rules of origin that were being developed in the WTO.
62. In response to further requests for information on the customs origin provisions of the
Customs Code, the representative of the Kyrgyz Re public stated that Chapter 55 of the Customs Code
provided for issuance of preliminary decisions on various issues including the country of origin.
Assessments remained effective for three years.  Implementing instructions describing the process in
detail would be developed at a later stage.  Chapters 58, 59 and 60 of the Customs Code provided thatadministrative actions taken by customs bodies could be appealed.  The Customs Code also providedthat goods that are wholly produced in a country are considered as originating in that country.  A listof wholly produced goods was adopted from the Kyoto Convention Annex.  The Customs Codeprovided for three methods of determining orig in as specified in the Kyoto Convention Annex.
However, the tariff shift method of determining origin was, at present, the only method in use.  There
were no regulations implementing the ad valorem  or specific manufacturing or processing methods.WT/ACC/SPEC/KGZ/13
Page 38
63. The representative of the Kyrgyz Republic confirmed that the Kyrgyz Republic would
remedy any departures from full conformity with the WTO Agreement on Rules of Origin prior to itsaccession, and that by that time, the Kyrgyz Republic's application of rules of origin for both MFNand preferential trade would be administered in conformity with the provisions of the Agreement.The Kyrgyz Republic would adopt the Harmonized Rules of Origin once finalized by the WTO in co-operation with the World Customs Organization.  The Working Party took note of this commitment.
- Pre-shipment inspection
64. In response to questions, the representative of the Kyrgyz Republic stated that the
Kyrgyz Republic had no plans to introduce any preshipment inspection requirements; however, ifsuch requirements were introduced, they would be consistent with the requirements of the Agreementon Preshipment Inspection.  The Working Party took note of this commitment.
- Anti -dumping, countervailing and safeguards
65. Some members of the Working Party expressed concern that both the current Customs Tariff
Law in force and the proposed law departed from WTO rules on imposition of anti-dumping duties inseveral respects.  These members requested that the legislation be amended so as to be WTO-consistent from the date of the Kyrgyz Republic's accession to the WTO.   In response, therepresentative of the Kyrgyz Republic stated that dumping, countervailing, and safeguard measureswould be governed by new laws currently bein g drafted in conformity with respective WTO
agreements.  Draft laws on dumping, countervailing, and safeguard measures were submitted inOctober 1997 to the Working Party.
66. Some members of the Working Party requested that the Government of the Kyrgyz Republic
undertake a commitment that any anti-dumping, count ervailing or safeguards measures would only be
taken pursuant to legislation in conformity with the WTO Agreement on Subsidies and CountervailingMeasures, the Agreement on Interpretation of Article VI of the GATT 1994, and the Agreement onSafeguards.
67. The representative of the Kyrgyz Republic stated that the Laws on Anti-Dumping, Safeguards
and on Subsidies and Countervailing Measures would be adopted in October 1998.  Any legislation inplace at the time of accession or implemented in the future providing for the application of measuresWT/ACC/SPEC/KGZ/13
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taken for anti-dumping, countervailing duty, or safeguard purposes would conform to the provisions
of the WTO Agreements of Anti-Dumping, on Subsidies and Countervailing Measures, and onSafeguards. In the absence of such legislative authority in place at the time of accession, the KyrgyzRepublic would not apply measures for anti-dumpi ng, countervailing duty, of safeguard purposes
until legislation in conformity with the provisions of these WTO Agreements had been implemented.The Working Party took note of these commitments.
- Export Regulation
- Customs tariffs, fees and charges and internal taxes applied to exports
68. In response to requests for information the representative of the Kyrgyz Republic stated that
there were no export duties;  although like all CIS countries 
- a VAT was charged on exports destined
for other CIS countries. The importing CIS country was required to grant the person who first sold the
good a VAT credit in the amount of the VAT paid to the Kyrgyz Republic.  VAT does not apply on
exports to non -CIS countries.
68bis   The representative of the Kyrgyz Republic stated that like all CIS countries - a VAT was
charged on exports destined for other CIS countries. The importing CIS country was required to grant
the person who first sold the good a VAT credit in the amount of the VAT paid to the
Kyrgyz Republic.  VAT did not apply on exports to non-CIS countries.
- Export restrictions
69. The representative of the Kyrgyz Republic stated that with the exception of quantitative
restrictions specified in an Agreement with the European Communities on Textiles, theKyrgyz Republic maintained no quantitative export restrictions, nor prohibitions on exports.
- Export licensing
70. The representative of the Kyrgyz Republic informed members of the Working Party that
export licences were required for the export of military arms and goods;  explosives;  nuclearmaterials and technology for military use;  virulent poisons;  narcotics (including those used inpharmaceuticals) and psychotropic substances;  works of art and antiquities having historical, culturalor scientific value; ferrous, precious and rare-earth metals extracted and produced in theWT/ACC/SPEC/KGZ/13
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Kyrgyz Republic and their fragments;  and rare types of raw materials of vegetable or animal origin
having pharmacological applications.  Except for non-ferrous metal fragments and waste, thelicensing requirement was not intended to restrict the quantity or value of the exports of these goods,but rather to protect public health, consumer welfare, the environment, national patrimony andnational security.  He further noted that licensing was mandatory for textile exports to the EuropeanCommunities.
71. In response to requests for more information concerning the requirement to obtain a licence
for the exportation of ferrous, precious and rare-earth metals extracted and/or processed in theKyrgyz Republic, the representative of the Kyrgyz Republic stated that any manufacturing/miningentity or intermediary entity (regardless of form or ownership) was eligible to apply for such a
licence.  The licence application was required to be submitted to the Ministry of Industry and Trade.When applying for an export licence, an applicant must submit:  (i) an application on a standard form;(ii) a copy of the export contract;  (iii) a copy of the applicable bilateral agreement on deliveries, ifany;  and (iv) a short description of how the transaction benefits the Kyrgyz Republic.  The licencewas required to be granted within 20 days of the receipt of the complete application. The licence wasnon-transferable.  Once the licence was granted, the recipient must provide it to the  State CustomsInspectorate together with a customs declaration.  A "single shipment" licence must be used within sixmonths from the date of issuance. A "multiple shipment" licence must be used within 12 months.
72. The representative of the Kyrgyz Republic stated that the following non-ferrous metal and
wastes and scrap thereof, and HS tariff number,  were subject to export licensing:
7404 Copper wastes and scrap
7503 Nickel wastes and scrap7802 Lead wastes and scrap7602 Aluminum wastes and scrap9702 Zinc wastes and scrap8002 Tin wastes and scrap8101 Wolfram and articles thereof, including wastes and scrap
2611 Tungsten ores and concentrates
8102 Molybdenum and articles thereof, including wastes and scrap2613 Molybdenum ores and concentrates8103 Tantalum wastes and scrap8104 Magnum wastes and scrap8105 Cobalt wastes and scrap8106 Bismuth wastes and scrap8107 Cadmium wastes and scrap8108 Titanium wastes and scrap8109 Zirconium wastes and scrap8110 Antimony and articles thereof, including wastes and scrapWT/ACC/SPEC/KGZ/13
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2617 Antimony concentrates
2825 Antimony oxides8111 Manganese wastes and scrap8112 Rhenium and articles thereof, including wastes and scrap8112 Chrome, germanium, vanadium, beryllium and niobium wastes
and scrap
73. Some members of the Working Party requested information on Cabinet of Ministers
Resolution No. 56 of 6 February 1996.  They noted that the resolution provided for licensingrequirements and controls on exports, including  textile goods, wearing apparel, silicon carbide,ammonium nitrate, and raw aluminum, required by bilateral agreements between the RussianFederation and the European Communities, and for general exports of precious stones, preciousmetals, articles containing precious metals, and precious metal waste.  The representative of theKyrgyz Republic stated that the restrictions set ou t in that draft Resolution would come into force
only if the Kyrgyz Republic became a member of the Customs Union.  The goal of the draftlegislation would be to protect electric transmission and communication lines and ferrous and non-ferrous metal items from theft by persons desiring to resell those metals to scrap metal processingfirms.  In the view of the Government of the Kyrgyz Republic, the measures were justifiable onnational security grounds.
74. In response to further questions concerning the reason for the requirement to obtain export
licences for exports of non-ferrous metal and wastes and scrap thereof, the representative of theKyrgyz Republic stated that when an application for an export licence was received, theKyrgyz Republic reviewed the prices of the products to be exported.  While the export licences werenot refused on the basis of low prices, recommendations were made to the applicant to ensure thatprices were comparable to world market prices.  He confirmed that no sanctions were imposed onexporters who continue to export these products that were considered to be below world marketprices. The Kyrgyz Government did not consider the export of these products at low prices in itsdecision to grant or renew an enterprise's licence to purchase or sell fragments and waste of non-ferrous and ferrous metals.
75. The representative of the Kyrgyz Republic stated that the Kyrgyz Republic would ensure that
its system of export licensing was in conformity  with the requirements of Article XI of the GATT
1994 as from the date of accession.  The Working Party took note of this commitment.WT/ACC/SPEC/KGZ/13
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- Export subsidies
76. In response to questions, the representative of the Kyrgyz Republic stated that the
Kyrgyz Republic had no policies or measures to finance exports.  Certain limited export promotionprogrammes were maintained.  The Kyrgyz Republic imposed no export performance requirements.Drawback on goods imported for completion, assembly, or processing for re-export must be claimedwithin a time limit set by the SCI and the processed goods must be exported within two years after the
importation of the concerned items.   He further added that the Customs Code also exempted fromduties and taxes goods re-exported within six months of importation.  If the goods were not re-exported within six months, customs duties, taxes and interest were collected on the goods.
77. Some Working Party members noted that the 1991 Foreign Investment Law granted profit tax
exemptions for Kyrgyz legal entities for two to five years based on foreign participation, dependingon the nature of its activity.  After the expiration of the profits tax exemption, varying reductions inthe applicable profits tax are provided for under certain circumstances, including a 25 per centreduction if at least 50 per cent of the entity's production is exported.  In addition, the Directorate ofthe Bishkek Free Economic Zone (Information Bulletin No. 2) provides exemptions from leasepayments for up to 15 years for establishments which (i)  are engaged in export-oriented and importsubstitution production activities;  (ii)  use domestic raw materials and spare parts;  and (iii)  employ acertain number of people per year.  In addition, export-oriented production is exempt fromquantitative restrictions.  Some Working Party members sought a commitment from the KyrgyzRepublic to eliminate these measures, which const ituted prohibited subsidies within the meaning of
Article 3 of the WTO Agreement on Subsidies and Countervailing Duties.
78. In response to further questions, the representative of the Kyrgyz Republic stated that certain
lease payment provisions of the Bishkek Free Economic Zone were concerned with import
substitution.  The representative of the Kyrgyz Republic stated that the source of input for productionpurpose was not restricted.  An enterprise (i) was not prohibited or limited in its ability to importproducts used in or related to its local production and (ii) was not required to use local products asinput for its production.   Some members of the Working Party stated that the tax incentives based onexport performance provided by Article 24 of the previous Foreign Investment Law of June 1991
should be eliminated prior to accession to the WTO.  In response, the representative of the KyrgyzRepublic stated that the new Foreign Investment Law of September 1997 does not provide any taxincentives.  He confirmed that his Government did not intend to apply any export subsidies toindustrial goods.  He added that those tax incentives based on export performance were currently usedby foreign firms under a previous foreign investment law.  It was foreseen that those incentives wouldcontinue to apply until the expiration of the term of their validity.  Any attempt at this point toWT/ACC/SPEC/KGZ/13
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terminate such incentives prior to the term of their validity would cause significant problems to
existing foreign investors.
79. The representative of the Kyrgyz Republic stated that the lease payment exemption for
export-oriented and import substitution production which could be considered to conflict with therequirements of the Agreement on Subsidies and C ountervailing Measures would be eliminated upon
accession to the WTO   by 31 December 2001.  He further stated that the Regulations On the
Amendments to Certain Decisions of the Government  would be in conformity with the requirements
of the Agreement on Subsidies and Countervailing Measures and would be adopted by the date ofaccession.  The Working Party took note of these commitments.
80. The representative of the Kyrgyz Republic st ated that his Government would eliminate, by
the date of accession, all measures which meet the definition of a prohibited subsidy, within themeaning of Article 3 of the Agreement on Subsidies and Countervailing Measures, [including thosesubsidies discussed in paragraphs 77 and 78 covered under the Foreign Investment Law of 1991 andthe Regulations on the Amendments to Certain Decisions of the Government as and would terminateby the date of accession any incentives [previously granted] under these [and prior] laws].  TheWorking Party took note of these commitments.
- Internal Policies Affecting Trade in Goods
- Industrial policy, including subsidies
[
81. In response to requests for information, the representative of the Kyrgyz Republic stated that
the Government had a general policy to create a broad-based market economy and to privatize allgovernment-owned commercial enterprises and assets.  The Government also had a general policy toattract foreign investment into the country and to  involve, as far as possible, foreign investors,
technology and know-how in all sectors of the economy for the purpose of furthering the creation of abroad-based market economy and the privatization of government-owned commercial enterprises andassets.   The Government did not intend to maintain any policies which would distort trade;  norprotect any industry, market or business entity.]
82. Some members of the Working Party asked whether the Kyrgyz Republic would maintainsubsidies prohibited by Article 3 of the Subsidies and Countervailing Measures Agreement upon itsaccession to the WTO and whether it would have recourse to Article 29 of the same Agreement tojustify such subsidies.  In response, the represen tative of the Kyrgyz Republic stated that, exceptingWT/ACC/SPEC/KGZ/13
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other subsidies described above, the only subsidies had been certain tax exemptions provided by the
Foreign Investment Law of 1991.  The new foreign investment law which eliminated tax exemptions
based on export performance had been adopted in September 1997.
- Technical Barriers to Trade
83. In response to requests for information, the representative of the Kyrgyz Republic stated that
standards and certification requirements in the Kyrgyz Republic were not intended to distort orestablish technical barriers or to disrupt trade.  The object of such standards and certificationrequirements were to (i) ensure the safety and/or quality of goods, works and services, (ii) to protectthe environment and the health, life, work and property of citizens, (iii) to ensure uniformity ofmeasurement and the technical compatibility and interchangeability of products;  and (iv) to preserveall types of resources.  Both domestic-origin and foreign-origin goods were equally subject to thesame requirements on standards and certification.    Importers of goods subject  to obligatorycertification of conformity with national safety requirements and other technical requirements wererequired to present a certificate at the border stating that the goods met the applicable requirements,along with the import declaration and other supporting documents.  If an international agreement towhich the Kyrgyz Republic is a party provides for other rules other than those stipulated by thelegislation of the Kyrgyz Republic on standardization then the rules of the international agreementwould prevail.
84. The representative of the Kyrgyz Republic adde d that the State Directorate on Standardization
and Metrology under the Cabinet of Ministers (Kyrgyzstandard) was the agency responsible fordeveloping, realizing and administering the Kyrgyz Republic’s policy on technical regulations,standards and certification requirements.  The Cabinet of Ministers Resolution No. 260 of28 April 1994, as amended by Resolution No.146 of 5 April 1996, listed seven general productcategories that require certification prior to sale, without regard to the origin of the concernedproducts. For health-related products, sanitary/hygiene test results  were used as the basis for grantingthe certificate of compliance.  Kyrgyzstandard was responsible for accrediting certification and testingbodies.  As of 1 January 1998, there were 11 accredited certifying bodies and 19 accredited testinglaboratories in the Kyrgyz Republic.  In addition, th e four regional branches of Kyrgyzstandard were
also authorized to conduct certification procedur es.  In accordance with the Agreement On a Uniform
Policy on Standardization, Metrology and Certification, which was executed by all CIS countries,Kyrgyzstandard now accepted certificates issued by any accredited institution of Armenia,Azerbaijan, Belarus, Georgia, Kazakstan, Moldova, the Russian Federation, Tajikistan, Turkmenistanand Uzbekistan.  He further added that it was possible for foreign companies to be accredited asWT/ACC/SPEC/KGZ/13
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certification bodies or testing laboratories by Kyrgyzstandard;  however, no such companies had yet
applied. The requirements for accreditation and the procedures to be followed were the same for bothdomestic and foreign certification bodies.    In response to requests for further information, therepresentative of the Kyrgyz Republic stated that the Law "On Protection of Consumers’ Rights", setmandatory requirements for products which posed a substantial potential threat to the environment orthe safety, lives and/or health of citizens.  Kyrgyzstandard would issue a certificate of compliance anda licence to mark the concerned goods with a "mark of compliance.”  Sale or import of such goods inthe Kyrgyz Republic without such prior certification and marking was prohibited.  Goods importedfor personal use did not require certification.  Other requirements (indications) were voluntary.Goods subject to voluntary certification could be certified on the basis of an agreement between the
applicant and Kyrgyzstandard.  Voluntary certification could also be performed by any bodyauthorized by Kyrgyzstandard to do so.  The method of voluntary certification was chosen by theapplicant from those accepted by Kyrgyzstandard.   In response to requests for information on theprocess for obtaining a certificate and mark of compliance the representative of the Kyrgyz Republicstated that the issuance of a certificate and mark of compliance required:  (i) the filing of anapplication with the responsible ministry or State body;  (ii) a review of the application, including thechoice of certification method;  (iii) the identification and selection of samples and their testing;  (iv) areview of the test results and a comparison with the applicable standards;  and (v) the issuance of acertificate of compliance and a licence to use the mark of compliance.  It was generally possible forthe certifying body to accept the declaration of a manufacturer or producer, but the acceptance of adeclaration was subject to the discretion of the Ministry or State body responsible for certifying thecompliance of the goods.  Pursuant to document KMS40.03-97 "System of Certification Kyrg. St.Procedure for Certification of Products", the certifying body would accept manufacturers' declarationsof compliance.
85. In response to requests for information on the bringing of standards used in the
Kyrgyz Republic into compliance generally accepted in ternational standards, the representative of the
Kyrgyz Republic stated that Kyrgyzstandard was currently a corresponding member of theInternational Standards Organization (ISO).  The Kyrgyz Republic was in the process of moving fromthe use of GOST-standards to the use of international standards.  The Kyrgyz Republic was a memberof the CIS Inter-Governmental Council on Standa rdization, Metrology and Certification, which was
recognized by ISO as a regional organization moving towards eventual implementation and usage ofinternational standards.  A timetable for the change-over had not been finalised.  TheKyrgyz Republic had also adopted over 120 standards of the International ElectrotechnicalCommission (IEC).  The acceptance of certificates issued by foreign certification bodies wasgenerally dependent on the existence of a bilateral or multilateral agreement on the matter.  TheWT/ACC/SPEC/KGZ/13
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Government was currently in the process of negotiating bilateral agreements on standards with
Austria, the People’s Republic of China, Germany, India, Iran and Turkey.
86. The representative of the Kyrgyz Republic further added that accreditation of a certification
and testing organization was performed by Kyrgyz standard and other State bodies authorized to
conduct mandatory certification within their area of competence (for example, the Kyrgyz Ministry ofConstruction and Architecture was responsible for certifying the compliance of constructionmaterials).   An applicant must provide Kyrgyzstandard with its organizational documents, the desiredscope of accreditation, a brief description of its legal status, as well as a description of itsorganizational structure.  An organization applying for an accreditation must:  (i) be independent andunbiased; and (ii) be sufficiently competent, i.e. possess sufficient means, qualified professionals, etc.
87. In response to requests for information on the fee structure for certificates, the representative
of the Kyrgyz Republic stated that the Kyrgyz Republic had conducted a detailed assessment of allfees connected with issuance of certificates (including the certificate of compliance, certificate oforigin, phytosanitary certificate, and veterinary certificate) to determine whether or not such fees werein conformity with the WTO requirements, especially Article VIII of the GATT 1994.  He provideddetailed analysis supporting the following report:
- Phytosanitary Certificate:  the current costs of issuing a Phytosanitary Certificate (minimum
fee som 70, maximum fee som 223) exceeded the fee currently charged (minimum fee
som 36, maximum fee som 265) for such a certif icate.  Accordingly, the Kyrgyz Republic
considered that the current fee structure was in full conformity with Article VIII.  In responseto requests by some members of the Working Party, the Kyrgyz Republic provided the list ofgoods (using HS Code) subject to Phytosanitary Certificates along with the fees charged for
each category.  This certificate was issued by the Ministry of Agriculture;
- Veterinary Certificate:  the currents costs of issuing the Veterinary Certificate (minimum
fee som 250, maximum som 3,272) exceeded the fee currently charged (minimum fee som 30,
maximum fee som 500) for such a certificate.  Accordingly, the Kyrgyz Republic consideredthat the current fee structure was in full conformity with Article VIII.  In response to requestsby members of the Working Party, the Kyrgyz Republic provided the list of goods (using HSCode) subject to Veterinary Certificates.  This certificate was issued by the Ministry ofAgriculture;WT/ACC/SPEC/KGZ/13
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- Certificate of Origin:  currently the following fees are charged for obtaining the certificate of
origin:  (a)  CIS countries - som 100 for natural persons and som 300 for legal entities;  and
(b)  non-CIS countries - som 200 for natural persons and som 400 for legal entities.  TheKyrgyz Republic recognized that the fee structure was in violation of Article I andArticle VIII of the GATT 1994.  The representative of the Kyrgyz Republic stated that, as ofthe date of accession to the WTO, the fee for issuing the certificate of origin would besom 160 (reflecting the approximate cost of issuing a certificate of origin) for all legal andnatural persons in conformity with Article I of the GATT 1994.  This certificate was issued bythe Chamber of Commerce and Industry, 
Regulations to bring this fee into conformity with
the requirements of the WTO Agreement were expected to enter into force on June 20 1998;
- Certificate of Compliance:  the current cost for the Certificate of Compliance ranges from
approximately US$50 to US$1,390 depending on the ty pe of products and required tests.  The
representative of the Kyrgyz Republic provided detailed information of various schemes fortesting and the cost of using different scheme s.  The Kyrgyz Republic considered that the
current cost of issuing the Certificate of Comp liance was in conformity with Article VIII of
the GATT 1994 and reflected the cost of services rendered.  In response to requests by someWorking Party members, the Kyrgyz Republic provided a list (using HS Code) of all goodsrequiring a Certificate of Compliance);
88. Some members of the Working Party asked whether any difficulties were foreseen in the
application of the Agreement on Technical Barriers to Trade upon accession.  In response, therepresentative of the Kyrgyz Republic stated that the Kyrgyz Republic does not foresee difficulties inthe application of the TBT Agreement.  He noted that, at present, draft standards, technicalregulations, and conformity assessment procedures were not published for public comment.  Therewere at present no formal notice requirements, although within the CIS, regulations have beendeveloped that operate like notice provisions.  The Law on Standardization and the Law onCertification was being amended to meet the TBT requirements for publication of draft standards andtechnical regulations. Kyrgyzstandard published a quarterly periodical entitled the Information
Bulletin of Kyrgyzstandard where such notices will be published.  Under Resolution No. 12  of 6January 1997 the Cabinet of Ministers of the Kyrgyz Republic officially established the InformationCentre of the State Inspectorate on Standardization and Metrology (Kyrgyzstandard) as the InquiryPoint for standards and sanitary and phytosanitary measures in the Kyrgyz Republic.  This InquiryPoint met WTO requirements, it contained all adopted and proposed standards and conformityassessment procedures and information concerning the membership and participation of the KyrgyzRepublic in regional and international standardizing bodies as well as in bilateral and multilateralWT/ACC/SPEC/KGZ/13
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arrangements.  The Inquiry Point received questions and sends responses by telephone, mail, fax and
e-mail.  Kyrgyzstandard had hired employees, fluent in Russian and English, who would receive andtransmit information in English.  To the extent that resources will allow, Kyrgyzstandard will
participate in international standards activities.  The Kyrgyz Republic was a corresponding member ofthe ISO.  It was also a member of the CIS Inte r-Governmental Council on Standardization, Metrology
and Certification.  This body was recognized by the ISO as a regional organization moving towardsthe eventual implementation and usage of international standards.
89. The representative of the Kyrgyz Republic stated that the Law on Making Amendments and
Supplements to the Law of the Kyrgyz Republic on 
Amendments to the Law on Standardization
which would be  were fully consistent with the WTO Agreement on Technical Barriers to Trade would
be had been adopted on 8 June 1998.   The Law on Certification had been adopted by Parliament on
29 May 1998  The Working Party took note of this commitment.
90. The representative of the Kyrgyz Republic st ated that his Government would apply the WTO
Agreement on Technical Barriers to Trade from the date of accession without recourse to anytransition period.  He further confirmed that, in particular, the Kyrgyz Republic would apply the samecontrols, criteria, and rules regarding technical regulations, standards, certification, and labellingrequirements to imported and domestic goods, and would not use such regulations to restrict imports.The Kyrgyz Republic would ensure that its technical regulations, standards, certification and labelling
requirements are not applied to imports in an arbitrary manner, in a way that discriminates betweensupplier countries where the same conditions apply or as a disguised restriction on international trade,and would also ensure that from the date of accession its criteria for granting licenses or securingrequired certification for imported products will be published and available to traders, and that itssanitary and other certification requirements are administered in a transparent and expeditiousmanner.  The Kyrgyz Republic would be willing to consult with WTO Members concerning the effectof these requirements on their trade with a view to  resolving specific problems.  The Working Party
took note of these commitments.
- Sanitary and phytosanitary measures
91. The representative of the Kyrgyz Republic stated that it was the policy of the Government to
develop and maintain sanitary standards solely for the purpose of  protecting the health of human,animal and plant life and not for the purpose of creating technical barriers to foreign products or forprotecting domestic producers.  Development of sanitary standards was the responsibility of severalWT/ACC/SPEC/KGZ/13
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technical committees in cooperation with the Ministry of Health. The consent of the Ministry of
Health was required before Kyrgyzstandard could issue any standard constituting a sanitary measure.He further explained that Cabinet of Ministers Resolution No. 260 of 28 April 1994, as amended byResolution No. 146 of 5 April 1996, listed seven general product categories that require certificationprior to sale, without regard to the origin of the concerned products. All covered products requiredcertification of safety indicators, sanitary and environmental reasons.  For health-related products,sanitary/hygiene test results were used as the basis for granting the certificate of compliance.  Productcategories subject to sanitary measures were included in this list.  Any  accredited certification bodycould certify a product as being in conformity with the applicable sanitary requirements if the required
sanitary/hygiene tests had been performed by a co mpetent testing laboratory and the required test
results obtained.  He provided the Working Party with a list of goods subject to phytosanitary andveterinary certificates together with corresponding fees in document WT/ACC/KGZ/16.
92. The representative of the Kyrgyz Republic further added that importers of goods subject to
sanitary and/or phytosanitary measures were required to present a certificate at the border stating thatthe goods met the applicable requirements, along with the import declaration and other supportingdocuments.  If the container or packaging was damaged, or was not accompanied by the requireddocumentation, the product could not be cleared through customs.
93. Some members of the Working Party requested information on whether the
Kyrgyz Republic’s procedures for adopting trade measures relating to concerns with human, animaland plant health were in conformity with the requirements of the SPS Agreement.  In response, therepresentative of the Kyrgyz Republic stated that the appropriate ministries and State bodies(particularly, the Ministry of Health, the Mi nistry of Agriculture and Food, the Ministry of
Environmental Protection, and the Veterinary-S anitary Supervisory Office) had reviewed the
provisions of the SPS Agreement and had brought [in order to bring] their respective procedures intoconformity with the SPS Agreement.   The amendments to the Law on Veterinary and the Law onPlant Quarantine necessary to implement the provisions of the SPS Agreement were provided to theWorking Party.
94. Some members of the Working Party asked whether proposals for SPS measures were
published in advance, and whether there was an opportunity for public comment by interested parties,both domestic and foreign.  They also asked whether there was a requirement to conduct riskassessments prior to the adoption of SPS measures, including a requirement that such measures bebased on scientific evidence.  In response, the representative of the Kyrgyz Republic said that thedraft Amendments to the Law on Plant Quarantine and the Law on Veterinary provide thatWT/ACC/SPEC/KGZ/13
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notifications on draft developed phytosanitary measures significantly affecting trade, if not
substantially the same as international standards, guidelines and recommendations, or if internationalstandards, guidelines and recommendations do not exist, shall be published at an early stage in such amanner as to enable interested parties to make th eir comments and suggestions.  He also stated that
draft amendments to the Law on Plant Quarantine and the Law on Veterinary require that riskassessments be employed and that SPS measures be based on scientific evidence.
95. Some members of the Working Party asked whether the sanitary and phytosanitary standards
in the Kyrgyz Republic were in conformity with inte rnational standards, in particular those developed
by the Codex Alimentarius Commission, the Internat ional Office of Epizootics, and the international
and regional organizations operating within the framework of the International Plant ProtectionConvention.  In response, the representative of the Kyrgyz Republic stated that the appropriateministries and State bodies (particularly, the Ministry of Health, the Ministry of Agriculture and Food,the Ministry of Environmental Protection, and the Veterinary-Sanitary Supervisory Office) had beenconducting  comparisons of their standards with international standards through the EurasianOrganization on Standardization, and were engaged in the necessary work to ensure theharmonization of their standards in conformity with the SPS Agreement.  The Kyrgyz Republic wouldreport annually progress in the work on harmonization 
until their standards were in conformity with
the WTO requirements.  The Government was currently considering draft Regulations "On measures
for transition to international standards and improv ing the order of using technical regulations" which
set out the program of work required to harmonize Kyrgyz sanitary and phytosanitary standards with
international standards in 1999.
96. Some members of the Working Party expressed concern that Cabinet of Ministers Resolution
No. 260 required that safety certificates be obtained for imports of "agricultural and food industryproducts".  They requested details of the scientific evidence or risk assessments upon whichResolution No. 260 was based.  In response, the representative of the Kyrgyz Republic stated thatResolution No. 260 was based on the evaluation of the possibility of entry of pests and diseases andpotential biological consequences. Certification requirements for items listed in Resolution No. 260were based on scientific studies and were imposed only to the extent necessary to protect human lifeand health and the environment.
97. The representative of the Kyrgyz Republic stated that the Kyrgyz Republic would apply the
SPS Agreement in full upon accession.  He noted that the Law On Amendments to the Law onVeterinary and the Amendments to the Law on Plant Quarantine which
 were fully consistent with the
SPS Agreement and were adopted in  on May 25 1998.WT/ACC/SPEC/KGZ/13
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98. The representative of the Kyrgyz Republic stated that from the date of accession to the WTO
his Government would apply all its sanitary requirements consistently with the requirements of theWTO Agreements on Sanitary and Phytosanitary Measures and Import Licensing Procedures [
without
recourse to any transitional arrangements] .  [In particular, he stated that if a decision was taken to
require notification of diseases other than those listed in OIE Classes A and B, any such decisionwould be taken in conformity with the requirement s of the Agreement on Sanitary and Phytosanitary
Measures.]
  He added that the Kyrgyz Republic [had a system to recognize certificates of compliance
issued by the accredited certifying bodies pursuant to treaties concluded with countries who are
trading partners of the Kyrgyz Republic.  In the abse nce of such treaties it is allowed to recognize
certificates of compliance or certificates of quality of internationally known firms and organizations.
However, controlling testing may be conducted in cases where the documentation submitted is
analyzed and found to be inadequate and where upon inspection of the products in question it is
discovered that the required transportation and storage conditions have been violated, and] [ would not
require additional certification or sanitary registration for products which have been certified as safefor human use and consumption by recognized foreign or international bodies, and]
 the Kyrgyz
Republic would ensure that from the date of accession its criteria for granting prior authorization orsecuring the required certification for imported products would be published and available to traders.He confirmed that sanitary and other certification requirements in the Kyrgyz Republic wereadministered in a transparent and expeditious manne r, and that his Government would be willing to
consult with WTO Members concerning the effect of these requirements on their trade with a view toresolving specific problems.  The Working Party took note of these commitments.
- Trade Related Investment Measures (TRIMs)
99. Some members of the Working Party noted that bids to purchase State owned assets were
scored according to a number of factors,  Included among the factors considered was the commitmentby the bidder "to maintain certain employment levels".  They asked whether this requirement wasinconsistent with obligations in the TRIMs Agreement   In response, the representative of theKyrgyz Republic stated that giving weight to a bidder’s willingness to make a commitment to
maintain a certain employment level did not contradict the TRIMs Agreement.  There was no trade-related aspect imposed by the State on the buyer in connection with this commitment.  The State wascurrently the major stock-holder in these entities, and in that role could require a potential purchaserto maintain certain employment levels. Furthermore, a requirement to maintain employment levels didnot mean that a buyer was required to use only local labour.  The requirement was imposed on thebuyer for the purpose of avoiding de-stabilizing simultaneous mass lay-offs during an initial period oftransition and mass privatization.  This requirement was phased out within a limited time after thetransaction. In his view nothing in the arrangements violated the TRIMs Agreement.WT/ACC/SPEC/KGZ/13
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[100. Following questions in relation to the compatibility of certain aspects of the Bishkek Free
Economic Zone with the requirements of the TRIMs Agreement, the representative of theKyrgyz Republic stated that the lease payment which required the employment of a certain number ofpeople per year was not TRIMs inconsistent, because the TRIMs Agreement referred only toproducts.  The lease payment conditioned on use of domestic raw materials and spare parts could be
TRIMs inconsistent and would be eliminated upon accession to the WTO.  The Kyrgyz Republic
would adopt regulations eliminating all WTO -inconsistent measures in connection with the free
economic zones.]
101. The representative of the Kyrgyz Republic stated that the Amendments to the Regulations onFree Economic Zones which would be in conformity  with the requirements of the TRIMs Agreement
would be adopted by the date of accession to the WTO, and that the Kyrgyz Republic would ensurethat the operation of the free economic zones would be WTO-consistent after accession.  TheWorking Party took note of these commitments.
102. The representative of the Kyrgyz Republic stated that from the date of accession, the Kyrgyz
Government would not maintain measures that were not in conformity with the Agreement on Trade-Related Investment Measures.  The Working Party took note of this commitment.
- State -trading practices
103. Some members of the Working Party noted that the Kyrgyz Republic had earlier described
enterprises that enjoyed  natural monopolies.  They asked whether the trade activities of thoseenterprises were State-trading in terms Article XVII of the GATT 1994 of Article VIII of the GATS.In response, the representative of the Kyrgyz Republic stated that the Government of theKyrgyz Republic was reviewing the operations, legal status and privileges of the listed naturalmonopolies to determine whether they should be notifi ed as State-trading entities within the meaning
of Article VIII of the GATS or Article XVII of the GATT.  If the Government determines that anentity fell within the definition of a State-trading en terprise, that entity would be notified as such to
the WTO.  At present, the Government was examining the following enterprises:
- Management Department of Kyrgyzrailroad (intra-republic passenger and goods 
transportation);
- Ministry of Communication (telecommunication services rendered to public);- Kyrgyz Energy Holding Company (electric power and thermal energy);- "Kyrgyzgas" (natural and liquefied natural gas);- "Kyrgyzjilkommunsojuz" (thermal energy, water-pipe water and sewage);WT/ACC/SPEC/KGZ/13
Page 53
- "Kyrgyzalco" (alcohol and alcohol products, other than beer); and
- "Kyrgyztamekesi" (tobacco fermentation, manufacture of tobacco products, sale of fermented
tobacco).
He further added that Kyrgyzpharmacia had no role whatsoever in the issuance of licenses and,
therefore, would not be notified as a State trading company.  Later, the representative of theKyrgyz Republic stated that further examination of the State trading sector had revealed that State
trading monopolies currently existed in the alcohol, tobacco, and electrical energy sectors:Kyrgyzalco ( de jure ), Kyrgyztamekesi ( de jure ), and Kyrgyz Energy Holding (de facto).  In response,
some members of the Working Party stated that Kyrgyzaltyn should also be notified as a state tradingenterprise, because since 1994, that fully State owned enterprise had been the only producer, importer,or exporter of antimony.  In response, the representative of the Kyrgyz Republic stated that althoughKyrgyzaltyn had been the only, de facto, producer, importer, and exporter of antimony, the KyrgyzRepublic did not believe that this company fell under the definition of Article XVII of theGATT 1994.  Kyrgyzaltyn did not have any exclusive or special rights or privileges in conductingforeign trade.  Any person could apply for and obtain a license to export antimony.  Licenses were notrequired for the import of antimony.
104. Concerning the tobacco sector, Kyrgyztamekesi  was the sole provider of licences for the
production of tobacco products in the Kyrgyz Republic.  Any person could obtain a licence to engagein the production of tobacco products.  Imported tobacco products were marketed freely in theKyrgyz Republic, licenses were not required for the domestic distribution or sale of tobacco products.
105. The representative of the Kyrgyz Republic stated  that concerning the alcohol sector, Article 8
of the Law on Licensing of 3 March 1997 stated that foreign legal entities or individuals, as well asindividuals without citizenship should receive licenses on the same conditions and in the sameprocedure as legal entities and individuals of the Kyrgyz Republic, unless otherwise stipulated bylegislative acts. Currently, no legislative acts stipulated otherwise for licenses issued by Kyrgyzalco.Article 18 of the same law permitted license applicants to have judicial appeal.  Any MFN or nationaltreatment (Article III) violations may be appealed to the court by license applicants.  Policy decisionswith respect to any quantitative restrictions and prohibitions are made by the Government and not byKyrgyzalco.  The Kyrgyz Republic commits to ensu re that the operations of Kyrgyzalco in the
issuance of import and export licenses for alcohol and alcoholic products are administered in amanner consistent with WTO requirements.WT/ACC/SPEC/KGZ/13
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106. Concerning the energy sectors, there were no prohibitions by the government on the export of
oil products, natural gas, and liquefied gas.  Currently, there were no firms (includingKyrgyzgasmunaizat) engaged in the exportation of oil products, natural, and liquefied gas, due to highdomestic demand and insufficient supply.  There were five privately-owned companies engaged in theimportation of oil products: Lukoil Kyrgyzstan, Tyan-Shan Oil, Sato Petroleum, Datka, and Ekooil.In addition to Kyrgyzgasmunaizat which imported approximately 50 per cent of the natural gas andliquefied gas to the Kyrgyz Republic, a number of State companies (e.g. Kadamjai Antimony Group,Maili Suu Lamp Plant) were currently importing natural gas to meet their own demand.  These Statecompanies had their own contracts with Uzbekistan for importing natural gas and had a commercialcontracts with Kyrgyzgasmunaizat to transport gas from Uzbekistan to the Kyrgyz Republic.
107. Some members of the Working Party requested further information on trade in the electrical
energy sector.  These members welcomed the recognition that although there were no de jure  barriers
to trade in electrical energy in the Kyrgyz Republic, there was a de facto monopoly in the hands of theKyrgyz Energy Holding Company.  In response, the representative of the Kyrgyz Republic stated thatthe production and sale of the electrical energy was carried out by Kyrgyz Energy Holding.  Therewere no regulatory barriers to entry.  Any person could apply for a licence for the generation,transmission, distribution, and sale of electrical energy.  The draft regulations outlining theprocedures, criteria, and requirements for obtaining such licences were currently being developed inaccordance with the Law on Licensing of 3 March 1997.    He noted that no applications for suchlicences had been submitted to the Licensor (the "State Energy Agency under the Cabinet ofMinisters").  He added that electrical power was equally available to all firms and individuals in theKyrgyz Republic.  In general, the rates for households were lower than the rates for legal persons.There was no difference in the rates charged to (1 ) a legal person (without foreign ownership), (2) a
legal person (fully or partially foreign-owned), a nd (3) a representative or branch office.   Export
prices of bartered electrical energy established with Uzbekistan and Kazakstan were negotiated onannual basis and depended upon the traded volume and conditions of the inter-governmentalagreement.  The volume and the commercial value of bartered goods were considered duringnegotiation.
108. Some members of the Working Party requested that the Kyrgyz Republic undertake a
commitment  that, upon accession to the WTO, all State trading enterprises would be eliminated.   Inresponse, the representative of the Kyrgyz Republic stated that Article XVII of the GATT 1994authorized State trading activities.  The Kyrg yz Republic was not prepared to undertake a
commitment that State trading would be abolished in the alcohol and tobacco sectors.WT/ACC/SPEC/KGZ/13
Page 55
109. The representative of the Kyrgyz Republic confirmed that his Government would apply its
laws and regulations governing the trading activities of State-owned enterprises and other enterpriseswith special or exclusive privileges, listed in pa ragraph 103 of this report, in conformity with the
relevant provisions of the WTO Agreement, and would abide by the provisions for notification, non-discrimination, and the application of commercial considerations for trade transactions for anyenterprise whose activities were subject to Article XVII of the GATT 1994, the WTO Understandingon that Article, and Article VIII of the GATS.  He further confirmed that the Kyrgyz Republic wouldnotify any enterprise falling within  the scope of Article XVII at the time of accession.  The Working
Party took note of these commitments.
- Free zones
110. In response to requests for information on free zones operating in the Kyrgyz Republic, the
representative of the Kyrgyz Republic stated that existing legislation and the Customs Codeauthorized the establishment of free economic zones, which offered special customs, tax, labourrelations and procedural benefits to enterprises locating within such a zone.  Each free economic zonewas required to be established by an act of Parliament.  Specific benefits included:  (i) exemptionfrom the imposition of customs duties and other payments on foreign-origin goods entered into such azone and intended for reexport;  (ii) simplified border clearances;  (iii) abolition of non-tariffrestrictions on import and export;  (iv) exemption from all taxes and charges (however, entities wererequired to pay the General Directorate an annual fee of 0.1 - 2 per cent of the proceeds generatedfrom the sale of goods and services);  (v) collective labour agreement and individual contracts;(vi) free circulation and use of foreign currency, including payments between legal entities and naturalpersons in the zone;  and (vii) simplified entrance,  departure and salary transfer abroad for foreign
citizens.  Four economic zones had been created by law, but only the Bishkek zone was operational.In response to that information, some members of the Working Party asked whether or not any free orfree economic zones established in the future would be fully consistent with all WTO obligationsrelating to free and free economic zones.
111. The representative of the Kyrgyz Republic stated that the free zones and special economic
zones authorized by the legislation described in paragraph 110 above were fully subject to thecoverage of the commitments of the Kyrgyz Republic in its Protocol of Accession to the WTOAgreement and that the Kyrgyz Republic would ensure enforcement of its WTO obligations in thosezones.  In this regard, he confirmed that the draft Regulations on the Amendments to CertainDecisions of the Government would be adopted by the date of accession to the WTO.  In addition,WT/ACC/SPEC/KGZ/13
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goods produced in these zones under tax and tariff provisions that exempt imports and imported
inputs from tariffs and certain taxes would be subject to normal customs formalities when entering therest of the Kyrgyz Republic, including the application of tariffs and taxes.  The Working Party tooknote of these commitments.
- Government procurement
112. In response to requests for information, the representative of the Kyrgyz Republic stated that
in the past there was no specific law regulating government procurement practices.  Each branch,ministry, agency, or other governmental body was free  to utilize whatever method it desired to acquire
required goods and services.  Open competitive bidding was not required.  Details of Governmentpurchasing in recent years were provided to the Working Party in Tables 1-29 and 1-30 of Annex 1 ofdocument WT/ACC/KGZ/3.  He further added that as part of the reform process, the Law on StateProcurement was adopted by the Parliament of the Kyrgyz Republic on 15 April 1997, enacted on 13May 1997, and came into force on 1 June 1997.
113. In response to requests for information on the purchasing process under the proposed
 law on
government procurement, the representative of the Kyrgyz Republic stated that the law was based on
the UNCITRAL Model Law on Procurement and would  required that procedures and criteria for the
evaluation of bids be set forth in the solicitation documents issued for each procurement.  Theproposed
 law required procuring entities to act in strict accordance with the applicable solicitation
documents.  Price, subject to any margin of preference applied pursuant to the law, was the onlycriterion unless the solicitation documents stated that the award will be based on other objective andquantifiable criteria. Alternative criteria must be specified in advance in the solicitation documents.
The State Procurement Agency under the Cabinet of Ministers was established according toPresidential Decree No. 31 of 29 January 1997. This new central agency would control the applicationof the legal system, supervise the decisions of all purchasing organizations, monitor infringements ofpublic law and settle disputes.  Disputes could be pursued in the economic Court system; however,judicial redress was generally  available only after the exhaustion of administrative remedies. Henoted, however, that the following matters were not subject to judicial review:
- the selection of the method of procurement;
- the choice of a selection procedure;- the limitation of procurement proceedings on the basis of nationality;- a decision by the procuring entity to reject all tenders, proposals, offers, or quotations;WT/ACC/SPEC/KGZ/13
Page 57
- a refusal by the procuring entity to respond to  an expression of interest to participate in
request-for-proposal proceedings; and
- an omission of reference to laws and regulations in the solicitation documents.
114. In response to questions concerning whether the procurement of certain products was
reserved for local industry, the representative of th e Kyrgyz Republic stated that with respect to the
MFN principle, the law did not permit the procuring entity to discriminate among foreign bidders.  If
there are enough suppliers on the territory of the Kyrgyz Republic to carry out the deliveries of goods,
works, and services, a purchasing organization shall have the right to limit participation in the
procedures of purchases to domestic suppliers .
115. Some members of the Working Party asked that as part of its protocol accession
commitments, the Kyrgyz Republic accede to the Government Procurement Agreement (GPA) andsubmit a schedule of commitments to the GPA Committ ee to initiate negotiations no later than three
months after the date of accession to the WTO.  These members expressed concern that the new lawwould allow for domestic preferences, either by limiting procurement procedures to national bidders,or by giving preferential margins to domestic goods or service providers.  In their view, such aprovision would create a trade barrier in contradiction with the future obligations that theKyrgyz Republic would assume upon accession to the Government Procurement Agreement.  Inresponse, the representative of the Kyrgyz Republic stated that the last version of the draft 
law did not
limit procurement procedures to national bidders and but permitted the granting of did not give
preferential margins to domestic suppliers or service providers (Article 34(4)(c) of the Law on
Procurement of Goods, Works and Services enacted on 1 July 1997.  He also added that the
Kyrgyz Republic did plan to accede to the Agreement on Government Procurement.
116. During the early stages of the deliberations the representative of the Kyrgyz Republic stated
that the Kyrgyz Republic would initiate the process of joining the Government Procurement
Agreement two years after the establishment of the Kyrgyz Government Procurement Agency
(KGPA).  KGPA was established in January 1997.  He further  added that the Government
Procurement law was adopted by the Parliament on 15 April 1997, signed by the President on
13 May 1997, and came into effect on 1 June 1997.  Later on he added that in response to requests
from some members of the Working Party, the Kyrgyz Republic was reconsidering its position
regarding accession to the Government Procurement Agreement .WT/ACC/SPEC/KGZ/13
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117.  The representative of the Kyrgyz Republic stated that the Kyrgyz Republic would initiate
negotiations for membership in the Government Procurement Agreement upon accession by tablingan entity offer at that time.  He also confirmed th at, if the results of the negotiations were satisfactory
to the Kyrgyz Republic and the signatories of the Agreement, the Kyrgyz Republic would completenegotiations for membership in the Agreement by 31 December 1999.  The Working Party took noteof this commitment.
- Trade in civil aircraft
118. In response to the request by some members of the Working Party, the representative of the
Kyrgyz Republic stated that his Government would [
consider the issue of joining] [adhere to]  the
Plurilateral Trade Agreement on Trade in Civil Airc raft from 1 January 1998 [after accession] [at the
time of accession] to the WTO.  [ The Working Party took note of this commitment.]
- Transit
119. The representative of the Kyrgyz Republic stated that under the Customs Code, goods in
transit through the territory of the Kyrgyz Republic were required to be declared to the SCI at thepoint of entry.  Upon release from the entry point, the goods could move freely through the customsterritory of the Kyrgyz Republic.  No payment of duties or taxes was required on goods in transit.Goods classified as "goods in transit," were required to remain unchanged except for normal wear andtear and should not be used for any economic purpose.  The goods were required to be transported totheir customs destination according to the routes and directions established by the SCI.  If  the goodswere not presented to the SCI at the point of exit within a reasonable time, the carrier was responsiblefor the payment of all duties and taxes due as if the goods had been released into free circulation (thecarrier may also be assessed an administrative penalty), unless the goods can be proved to have beenexported, destroyed, or lost as a consequence of an accident or force majeure event.
- Policies Affecting Trade in Agricultural Products
- Imports - description of the types of border protection maintained
120. In response to requests for information, the representative of the Kyrgyz Republic stated that
agricultural products were not subject to import licensing, or other restrictions such as quotas.  Certaincategories of agricultural products, specified in the list approved by Cabinet of Ministers ResolutionNo. 260 of 28 April 1994 were subject to certification, the purpose of which was to protect the healthof Kyrgyz citizens by restricting the importation of poor quality products and raw material.  Importedagricultural products were subject to rates of duty not exceeding ten per cent.WT/ACC/SPEC/KGZ/13
Page 59
- Exports
121. He further added that no licence was required to export agricultural products.  There were no
export tariffs, quotas, restrictions or prohibitions on the export of agricultural products.  No exportcredits, export credit guarantees, export credit insurance, or other financial support or assistance wasavailable for agricultural exports.
- Internal policies - i.e. description of and the budgetary expenditure and any
revenue foregone involved in each of the domestic support measures in place
122. In response to requests for information, the representative of the Kyrgyz Republic stated that
one of the basic aims of the Kyrgyz Republic’s policy in agriculture was to ensure the stability andgrowth of the supply of agricultural products to the domestic market.  The Kyrgyz Republic wastherefore pursuing a process of de-collectivization, reorganization and privatization of  agriculturalenterprises.  Agricultural prices had been liberaliz ed.  From the end of 1995, all direct State financial
support payments to all agricultural enterprises, had ceased - with the exception of 6 special animalbreeding and 26 seed producing farms.  He further noted however, that due to a lack of funds, eventhose enterprises did not receive regular financial support from the State.   In partial replacement ofdirect State financial support, funds loaned to the Government of the Kyrgyz Republic by variousinternational organizations and institutions were being used by the Government to provide low-interest credit facilities to agricultural enterpri ses to enable them to make purchases of key inputs,
e.g., seeds, fertilizer, equipment, etc.  The loans had annual interest rates of between 7 per cent and
12 per cent.  The follow-on loans to the agricultural enterprises had rates of between 1 per cent and5 per cent.  In this connection he noted that a nnual interest rates charged by private commercial
lenders, currently ranged between 50 per cent and 60 per cent.
123. In response to this information, some members of the Working Party asked whether the
average tariff rate for agricultural products under the new tariff regime would exceed the existing10 per cent average rate.  In response, the representative of the Kyrgyz Republic stated that theaverage tariff rate for agricultural products under the proposed tariff regime would remain at about 10per cent.
124. Some members asked whether the Kyrgyz Republic would enter a commitment to not require
licences for export of agricultural products and to not impose tariffs or quotas on the export ofagricultural products.  In response, the representative of the Kyrgyz Republic stated that theKyrgyz Republic would bind its existing policies of not requiring licences for export of agriculturalproducts and not imposing tariffs or quotas on the export of agricultural products, except inaccordance with WTO Agreements.WT/ACC/SPEC/KGZ/13
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125. The representative of the Kyrgyz Republic provided information on domestic support and
export subsidies in document WT/ACC/SPEC/KGZ/1.  He stated that the Kyrgyz Republic would
bind export subsidies at zero for agricultural products.
126. Some members  of the Working Party asked whether the direct State financial support
payments to the special animal breeding and seed producing farms would be stopped in the future.  Inresponse, the representative of the Kyrgyz Republic stat ed that due to a lack of financial resources, the
State currently provided no support to the above-mentioned farms. Breeding farms engaged in raisingpedigree horses had been able to cover their costs without State assistance, but farms for theproduction of seeds were supported by the European  Commission on Technical Issues.  The assistance
rendered in 1995 was an estimated som 15-20.  In 1997 assistance for such farms was provided for ina government programme for sheep breeding.
127. The Kyrgyz Republic's commitments on agricultural tariffs, on domestic support and export
subsidies for agricultural products are reproduced in Part I of the Schedule of concessions andcommitments annexed to the Protocol of Accession of the Kyrgyz Republic to the WTO.
- Textiles regime
128. In response to requests for information on textile products, the representative of the
Kyrgyz Republic stated that imported textile products were subject to rates of duty ranging from 0 to30 per cent, and that textile products for children must comply with the applicable safety standards.This certification requirement was established by Cabinet of Ministers Resolution No. 520 of2 December 1995 and applied equally to locally produced children’s textiles.  The export of textileproducts was only to an Agreement between the Kyrgyz Republic and the European Communities onTrade in Textile Products (the EC Textile Agreement) imposing a quota on Kyrgyz-origin textiles intothe European Communities.  The EC Textile Agreement provided that the quotas did not take effectuntil 1 January 1997.  According to the EC Textile Agreement, the Kyrgyz Republic could exporttextiles to the European Communities according to the following quotas (established as percentages of
the total imports of such goods into the Eu ropean Communities during the previous year):
- 0.35 per cent for category I goods;
- 1.20 per cent for category II goods;  and- 4.00 per cent for category  III, IV a nd V goods.WT/ACC/SPEC/KGZ/13
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VI. TRADE -RELATED INTELLECTUAL PROPERTY REGIME (TRIPS)
1. General
(a) Intellectual property policy
129. The representative of the Kyrgyz Republic stated that the intellectual property system of the
Kyrgyz Republic was still undergoing a transition from the system inherited from the formerSoviet Union.  It was the policy of the Government to put into place a system of intellectual propertyprotection modeled on the systems found in develope d market economy countries.  In pursuit of this
policy the Kyrgyz Republic has adopted (i) Part 2 of the Civil Code, (adopted 5 December 1997,effective 1 March 1998) containing provisions establishing basic intellectual property rights andprotection, (ii) the Patent Law (adopted 16 December 1997, effective 4 February 1998), (iii) the Lawon Copyright and Related Rights (adopted 16 December 1997, effective 23 January 1998), (iv) theLaw on Trademarks, Service Marks and Appellations of Places of Origin of Goods (adopted 16December 1997, effective 28 January 1998).  In addition, separate laws covering:  integrated circuits,software and databases, selective breeding achievements and the law on commercial secrets had beenadopted by the Parliament.  The Anti-Monopoly law enacted on 15 April 1994 contained provisionsregarding unfair competition as well as the misappropriation of intellectual property.  The CriminalCode (Section on Intellectual Property) entered into force 1 January 1998;  the Law on PC, SoftwarePrograms, and Databases entered into force on 4 April 1998, the Law on Integrated Circuits 
entered
into force on 10 April 1998 , and the Law on Commercial secrets entered into force on April 10 1998
were adopted by the Parliament on 2 March 1998 and were signed by the President  at  the end of
March .  The Law on Selection Achievements was currently being reviewed by the Parliament and was
expected to be adopted by the Parliament in May 1998.  The Law on Legal Protection of Breeding
Achievements had been adopted by Parliament on 26 May 1998.  That Law was currently awaiting
presidential signature and would enter into for ce immediately upon publication.  He further added that
in preparing those laws, the Kyrgyz Republic had taken into account the requirements of the TRIPSAgreement.  The representative of the Kyrgyz Republic stated that Part 2 of the Civil Code  had comeinto force 1 March 1998, and includes Chapter V - Intellectual Property, which complies with theTRIPS Agreement requirements.
130. Some members of the Working Party said that the Kyrgyz Republic should enter a
commitment to fully apply the TRIPS Agreement by the date of its accession to the WTO.WT/ACC/SPEC/KGZ/13
Page 62
(b) Responsible agencies for policy formulation and implementation
131. In response to requests for further information, the representative of the Kyrgyz Republic
stated that on 4 March 1996, the President issued a decree, which established a central intellectualproperty agency, the  State Agency for Intellectual Property (also known as Kyrgyzpatent).  Thisagency was responsible for the registration of patents, trademarks, industrial designs, copyrights andassociated rights and breeding achievements (i.e. new varieties of  plants and new breeds of animals).
The Anti-monopoly Department within the Ministry of  Finance was responsible for the administration
and enforcement of the Anti-monopoly Law, which, at section 5, prohibited "unscrupulouscompetition", defined as  including  the unauthorized use of trademarks, trade dress andconfidential/proprietary business information.
(c) Membership of international intellectual property conventions
132. The representative of the Kyrgyz Republic stated that as of 20 February 1998 the Kyrgyz
Republic was a member of the following multilateral treaties, agreements and conventions:
- Convention Establishing the World Intellectual Property Organization (WIPO):
- Paris Convention for the Protection of Industrial Property, (signed by the Kyrgyz Republic
Prime-Minister 6 January 1994, deposited with WIPO 14 February 1994);
- Madrid Agreement Concerning the International Registration of Marks, (signed by the
Kyrgyz Republic Prime-Minister 6 January 1994, deposited with WIPO 14 February 1994);
- The Patent Cooperation Treaty, (signed by the Kyrgyz Republic Prime-Minister 6 January
1994, deposited with WIPO 14 February 1994);
- Eurasian Patent Convention (the translation is being adjusted to conform to the official
version of 1994);
Moreover, the Kyrgyz Republic was in the process of acceding to:
- Berne Convention for the Protection of Literary and Artistic Works;
- WIPO Copyright Treaty;
- Locarno Agreement Establishing an International Classification for Industrial Designs
(ratified by the Jogorku Kenesh (Upper House) 26 January 1998, and submitted to the
Chamber of the People's Representatives for ratification);
- Strasbourg Agreement Concerning the International Patent Classification (ratified by the
Jogorku Kenesh (Upper House) 26 January 1998 and submitted to the Chamber of the
People's Representatives for ratification);
- Vienna Agreement Establishing an International Classification of the Figurative Elements of
Marks (ratified by the Jogorku Kenesh (Upper House) 26 January 1998 and submitted to the
Chamber of the Peoples Representatives for ratification);WT/ACC/SPEC/KGZ/13
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- Nice Agreement Concerning the International Classification of Goods and Services for the
Purposes of Registration of Marks (ratified by the Jogorku Kenesh (Upper House) 26 January
1998, and submitted to the Chamber of People's Representatives for ratification).
In addition to these multilateral treaties, the Kyrg yz Republic had entered into bilateral agreements
concerning industrial property with the following countries:
- Russian Federation (1995)
- Uzbekistan (1996)- Kazakstan (1997)- Armenia (1997)- Azerbaijan (1997).
The Kyrgyz Republic has yet to take the necessary steps to accede to the following conventions for
reasons unrelated to the substance of the conventions themselves.
- International Convention for the Protection of Performers, Producers of Phonograms and
Broadcasting Organizations (Rome Convention);
- Convention for the Protection of Producers of Phonograms Against Unauthorized Duplication
of Their Phonogram (Geneva Convention);
- WIPO Performances and Phonograms Treaty;- Treaty on Intellectual Property in Respect of Integrated Circuits (Washington Agreement);- Universal Copyright Convention.
Nevertheless the Kyrgyz Republic passed this Law on Integrated Circuits on 2 March 1998 which has
been sent to the President for the signature.  This Law provides the protection listed in the
Washington Agreement and comports to the requirements of the TRIPS Agreement.  Moreover,Chapter 55 of the Civil Code covers neighbour ing rights as did the Law on Copyright and
Neighbouring Rights adopted on 16 December 1997.  These laws protect the right of performers,producers of phonograms and broadcasting organizations for a term of fifty years and are consistentwith requirements of TRIPS.
133. The rights of producers of phonograms were protected by the Law "On Copyright and
Neighbouring Rights", which included basic provisions protecting the rights of these producers incompliance with applicable WTO requirements.  Th e representative of the Kyrgyz Republic said that
the Kyrgyz Republic was in the process of acceding to the Berne Convention on Protection of Literaryand Artistic Works and, upon accession, would ratify the WIPO Copyright Agreement (1996).  Thisaccession would be concluded by  1 July 1998.  [
The Working Party took note of these commitments.]WT/ACC/SPEC/KGZ/13
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(d) Application of national and MFN treatment to foreign nationals
134. The representative of the Kyrgyz Republic noted that the policy of the Kyrgyz Republic
regarding application of its intellectual property laws to foreign nationals was to accord nationaltreatment to foreign citizens, stateless persons and foreign legal entities, unless such treatment wascontrary to the provisions contained in other in ternational agreements to which the Kyrgyz Republic
was a party.  The exception to this "national treatment policy" was that Article 17 of the adoptedPatent Law and Article 6 of the Law On Trademar ks, Service Marks and Appellations of Origin of
Goods provide that applications filed by foreign legal entities and natural persons residing outside ofthe Kyrgyz Republic shall be through a patent agent registered with State Agency on IntellectualProperty (Kyrgyzpatent).  
Furthermore, the representative of the Kyrgyz Republic stated that in order
to ensure national treatment, the Stat e Agency for Intellectual Property ( Kyrgyzpatent ) was now
reviewing all laws and regulations to ensure national treatment of foreign persons, for example, a
uniform fee structure was currently being adopted.
135. Some members asked how the Kyrgyz Republic intended  to comply with Article 4 of the
TRIPS Agreement.  With respect to the MFN principle, the Kyrgyz Republic intended to follow the
requirements of Article 4 of the TRIPS Agreement.  In response, the representative of the
Kyrgyz Republic stated that in order to ensure na tional treatment, the State Agency for Intellectual
Property ( Kyrgyzpatent) was now reviewing all laws and regulations to ensure national treatment of
foreign persons.  For example, a uniform fee structure was currently being developed.   
(e) Fees and taxes
136. He noted that fees were charged for the processing of trade mark and service mark
registration applications, patent applications for inventions and industrial designs and applications forthe certification of utility models.   Levies would also be collected for the extension of the term of apatent for an industrial design, a utility model, and for an extension of the registration of a trademark,service mark and the use of an appellation of the place of origin of the good.  He noted in this regardthat section 18 of the Temporary Regulations set different methods for calculating theapplication/registration and other fees to be paid by Kyrgyz citizens and CIS nationals (fees set invarying shares of the "minimum salary") and those to be paid by non-CIS nationals (fees set invarying amounts of US Dollars).  Pursuant to th e Patent Law and the Law On Trademarks, Service
Marks and Appellations of Origin of Goods, regu lations were being developed which would provide
for a unified method to accrue levies.  However, prior to the adoption of this regulation, the rules ofthe temporary regulation on levies applied for the patenting of inventions, utility models, industrialdesigns, registration of trademarks and service marks (1994).WT/ACC/SPEC/KGZ/13
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136 bis  The representative of the Kyrgyz Republic stated that the Kyrgyz Republic would provide
national treatment in respect of all fees charged for the granting of intellectual property rights by the
time of accession to the WTO.   In this respect, a Regulation on Intellectual Property Fees had been
adopted on 12 June 1998.
2. Substantive Standards of Protection, Including Procedures For the Acquisition and
Maintenance of Intellectual Property Rights
137. The representative of the Kyrgyz Republic noted that the basic legal recognition of
intellectual property rights was established under several articles of the Civil Code.  Article 22 of theCivil Code listed the objects of civil rights, namely protected undisclosed information and otherresults of intellectual activity, trade names, trademarks and other means of individualization of goods.Article 53 of the Civil Code stated that a citizen can have the right to intellectual property as well aspersonal non-economic property rights. Article 22 specifically dealt with brands, trademarks and othermeans of distinctively marking articles.  Article 53 of the Civil Code provided, inter alia, that a personmay have authorship rights in scientific works, works of art, literature, inventions and other results ofintellectual activity.  Article 32  provides that a person has the exclusive right in and to the resultantobjective expression of their intellectual activity, including any means created and used foridentifying  a legal entity, or a product, work, or service produced or offered by a physical person orlegal entity (e.g., firm’s name, product brand, trade mark, service mark, etc.).   Article 32 alsoprovided that a third person could use such an "objective expression" only with the consent of theperson/entity holding the right thereto.  These intellectual property provisions were contained in Part Iof the Civil Code. The Anti-monopoly Law, which pr oscribed "unscrupulous competition," included
"the unauthorized use of  a trademark, name or marking of goods;  the unauthorized duplication of  aform, package or appearance of goods" and "the unauthorized use or disclosure of confidentialscientific, technical, engineering or commercial information".
(a) Copyright and related rights, including rights of performers, producers of phonograms
and broadcasting organizations
138. The representative of the Kyrgyz Republic furthe r added that Part I of the Civil Code provides
generally for the protection of rights of authorship.  Article 7 provides that intellectual property rightsarise as a consequence of the creation of works of science, literature, arts, invention and otherproducts of intellectual activity.  Kyrgyzpatent’s Temporary Regulations on the Official Registrationof Computer Programs, Databases and Integrated Circuit Topologies extend copyright protection toWT/ACC/SPEC/KGZ/13
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computer programs - other than computer programming languages - and to databases, which were
treated as compilations. These Temporary Regulations had provided the owner of such  a program,data base or  topology with the option of formally registering his copyright therein.  The TemporaryRegulations had been replaced by the Law on Copyright and Neighbouring Rights, effective 23January 1998, which regulated relations resulting from the creation of works of science, literature andart (copyright), phonograms, performances, produc tions and broadcasts by cable and broadcast
organizations (neighbouring rights).
139. The representative of the Kyrgyz Republic stated that the Law on Copyright and
Neighbouring Rights  which had entered into effect 23 January 1998 was in full conformity with therequirements of TRIPS Agreement.
(b) Trademarks, including service marks
140. The representative of the Kyrgyz Republic said that the Law on Trademarks, Service Marks
and Appellations of Origin of Goods provided for the registration of a trademark, which was valid forten years from the date a conforming application is filed with the State Agency on IntellectualProperty (Kyrgyzpatent).  Article 20 of this law provided for the nullification of the registration of atrademark if it had not been used for three years.  Pursuant to Article 6 bis of the Paris Convention on
Protection of Industrial Property, Article 5 of the Kyrgyz Republic Trademark Law provided thattrademarks which are similar to the extent likely to cause confusion with well-known trademarkswithin the territory of the Kyrgyz Republic may not be registered.  Article 41 of the Trade Mark Lawprovides liability for the illegal use of a trademark.  Seizure and destruction of goods in respect ofwhich a trademark had been illegally used were listed among legal remedies.  Article 5 of the lawprovided for the rejection of an application to register a trademark, which reproduced a trade name (infull or in part) owned by others who have been granted an earlier ownership right.
141. The representative of the Kyrgyz Republic stated that the Law of the Kyrgyz Republic on
Trademarks, Service Marks and Appellations of Orig in of Goods, passed by the Legislative Assembly
of the Parliament of the Kyrgyz Republic on 16 December 1997, signed by the President of theKyrgyz Republic on 14 January 1998, which had entered into effect 28 January 1998, was incompliance with the requirements of the TRIPS Agreement.WT/ACC/SPEC/KGZ/13
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(c) Geographical indications, including appellations of origin
142. The representative of the Kyrgyz Republic said that the newly adopted Law of the Kyrgyz
Republic On Trademarks, Service Marks and Appellation of Origin of Goods enacted inDecember 1997 which had entered into force on 28 January 1998 governed relations involving theregistration, legal protection and use of trademarks, service marks and appellations of origin of goods.For example, Articles 27-38 of this law contained provisions on appellations of origin of goods.
143. The representative of the Kyrgyz Republic stated that the Law on Trade Marks, Service
Marks and Appellation of Origin of Goods had brought the regime on appellations of origin of goodsin the Kyrgyz Republic into full conformity w ith the requirements of the TRIPS Agreement.
(d) Industrial designs
144. The representative of the Kyrgyz Republic said that the recently adopted Patent Law of the
Kyrgyz Republic provided for the protection of industrial designs for ten years from the priority date.Article 21 of the law provided an opportunity to establish a priority date from the date an applicationwas filed in a member state of the Paris Convention on Protection of Industrial Property (conventionalpriority), if the application was filed with the State Agency on Intellectual Property (Kyrgyzpatent)within 6 months from the indicated date. A limited grace period was provided for disclosures by the
author or person who obtained the disclosed information from the author.  Excluded from protectionwere architectural structures and works contradicting the public interest or the principles of humanity.In response to requests for clarification of the concepts of contradiction of  "principles of humanity",the representative of the Kyrgyz Republic stated that the definitions were not  based on officialnormative documents and could only be accompanied by references to sources which had a statementof humane ideas and moral-ethic standards formed in the society, in conformity with the international
standards set forth in the applicable international agreements.
(e) Patents
145.  The representative of the Kyrgyz Republic noted that the Patent Law of the Kyrgyz Republic
provided that the term of a patent was 20 years from the priority date. An invention was patentable if
it was new, has an inventive level and was industrially applicable.  Applications were to be filed withKyrgyzpatent and were examined on request of the applicant.  A grace period was established fordisclosures made by the inventor or a person who obtained the disclosed information from theinventor.  Integrated Circuits were protected in a separate Act currently pending before Parliament.WT/ACC/SPEC/KGZ/13
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Similarly, patent protection was excluded for works contradicting the public interest or the principles
of humanity.  Importation satisfied the working requirement.
146. The representative of the Kyrgyz Republic stated that the Patent Law of the Kyrgyz Republic
passed by the Legislative Assembly of the Parliament of the Kyrgyz Republic on 16 December 1997,
signed by the President of the Kyrgyz Republic on 14 January 1998 which had become effective on 4February 1998 had brought the patent regime of the Kyrgyz Republic into full conformity with therequirements of the Agreement on Trade Related Aspects of Intellectual Property Rights.
(f) Plant variety protection
147. The representative of the Kyrgyz Republic said that plant varieties were not patentable
pursuant to the Patent Law of the Kyrgyz Republic.  However, the legal protection for plant varieties
and animal breeds was provided by the temporary regulation of breeding achievements.  The draftLaw of the Kyrgyz Republic on Legal Protection of Breeding Achievements was [pending before
Parliament and was expected to be] passed by Parliament on 26 May 1998 and was awaiting
Presidential signature.
(g) Layout designs of integrated circuits
148. The representative of the Kyrgyz Republic stated that layout designs of integrated circuits
were the subject matter of a specific law that incorporates the requirements of TRIPS.  The law had
been adopted by Parliament and enacted in March 1998.
149. The representative of the Kyrgyz Republic stated that the Law On Topologies of Integrated
Circuits [that would be]  had been adopted on ... April 1998 and [would bring] [ had brought]  the
regime on protection of layout designs of integrated circuits into full conformity with therequirements of the TRIPS Agreement.  [The Working Party took note of this commitment.]
 (h) Requirements on undisclosed information, including trade secrets and test data
150. The representative of the Kyrgyz Republic stated that pursuant to Articles 22 and 34 of the
Civil Code, protected undisclosed information, which is a trade secret, was also listed among the
objects of civil rights.  Such information must have actual or potential commercial value due to itssecrecy to third parties, it cannot be accessed on any legal basis and its holder must undertakeWT/ACC/SPEC/KGZ/13
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measures to keep it confidential.  Commercial secrets were the subject of separate legislation which
was enacted on 30 March 1998.  Damages were available for misappropriation of such information bypersons who had obtained it illegally or who had di vulged it in violation of a contractual obligation.
Article 202 of the Civil Code obliged a commercial representative to keep confidential all informationlearned about sales transactions, even after the completion of his or her employment.  The CriminalCode also provided penalties for copying information from computers.
151. The representative of the Kyrgyz Republic stated that the Law on Commercial Secrets
enacted on 30 March 1998 had brought the regime on protection of commercial secrets into fullconformity with the requirements of the TRIPS Agreement.
(i) Any other categories of intellectual property
152. The representative of the Kyrgyz Republic stated that under Kyrgyzpatent’s Temporary
Regulations on the Procedure for the Registration of Licensing Agreements of 24 July 1995,relationships on "know-how" were protected.  Trade names were protected under Article 89 of theCivil Code which provides that a legal entity, whose firm name has been registered, has an exclusiveright to its use.  Article 89 provided that a legal entity which had first registered a particular businessname had the exclusive right to use that name.  A person who unlawfully uses another firm'sregistered name was obliged to stop using the name upon demand and to indemnify the registeredowner for any damage caused by such use.  Kyrgyz patent had submitted for approval the draftregulation on firm names which would be in force until the adoption of the appropriate law.
3. Measures to Control Abuse of Intellectual Property Rights
153. The representative of the Kyrgyz Republic stated that Article 12 of the Patent Law provided
that in cases where an invention, utility model or industrial design was not used or used insufficientlywithin three years from the date the patent is gr anted, any entity willing or prepared to use the
protected object (if the patent holder refuses to en ter into a licensing agreement with the entity) shall
have the right to resort to court and file a petition requesting the grant of a compulsory license.  Suchlicense shall be granted if the patent holder fails to prove that insufficient use or non-use of the objectis caused by justifiable reasons.WT/ACC/SPEC/KGZ/13
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4. Enforcement
(a) Civil judicial procedures and remedies
154. The representative of the Kyrgyz Republic stated that Article 10 of the Civil Code provided
that a plaintiff could obtain relief from the Court to enforce obligations recognized by the Civil Code.
Accordingly, the Civil Code provided that the Court could order (i) specific performance of an
obligation, (ii) compensation of losses, (iii) exaction of penalties and other penalties. Article 14
permitted the recovery of stated that  losses ;  including included  both direct and consequential
damages, including lost profits, as well as the profits made by the violator from the violation of the
right.  Compensation for moral rights harm  was available under Article 16. The protection of honour,
dignity and business reputation was provided under Article 18, where remedies included both the rightof refutation and compensation for  losses and/or moral harm.
(b) Provisional measures
155. The representative of the Kyrgyz Republic said that Article 35 of the Patent Law provided
that courts, within the limits of their authority, ha d jurisdiction to hear the following disputes:  actions
involving copyright to industrial property, disputes involving the issuance of protection documents,determinations as to who holds the patent, issues involving compulsory licenses, actions for breach of
the exclusive rights to the object of industrial property, as well as disputes concerning other economicrights of the patent owner.
(c) Any administrative procedures and remedies
156. The representative of the Kyrgyz Republic stated that Article 10 of the Civil Code provided
that administrative enforcement of rights could be exercised only in cases stipulated by law and suchdecisions were appealable in Court.  The Patent Law and the Law on Trademarks, Service Marks andAppellations of Origin of Goods provides for Appellate Council review of disputes involving:
inventions, utility models, industrial designs, trademarks and service marks, as well as appellations oforigin of goods.  The Appellate Council was the first body of review for these disputes. The consumerprotection agency had administrative authority to address various forms of unscrupulous businessactivity, including passing off, the sale of items not fit for ordinary use (including mislabelled items offood and drink) and trade mark counterfeiting.  Under Article 20 of the Anti-Monopoly Law, theAnti-Monopoly Department had the power to levy and collect fines for engaging in unscrupulousbusiness activity, including acts of passing off, trade mark misappropriation and unauthorizedWT/ACC/SPEC/KGZ/13
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use/disclosure of  proprietary information.  In addition to fines, Article 22.1 provided that, upon
successful application by the Anti-Monopoly Department to a commercial Court, a violator may berequired to surrender all profits made from the concerned activity.  Finally, Article 22.2 permitted  thedamaged person or legal entity to recover losses in an action filed in an appropriate Court.
(d) Any special border measures
157. The representative of the Kyrgyz Republic stated that Articles 28 to 31 of the Customs Code,
enacted on 29 July 1997, and effective on 1 October 1997, provided for border measures related tointellectual property.  These measures include the suspension of the release of goods where there is anindication the goods violate intellectual property rights.
(e) Criminal procedures
158. The representative of the Kyrgyz Republic stated that the new Criminal Code, passed
18 September 1997, had entered into force on 1 January 1998.  Articles 150 and 191 detailed theoffenses for violation of copyright, neighbouring rights and the rights of a patent holder, as well as forillegal use of trademarks, service marks and appellations of origin of goods.
159. The representative of the Kyrgyz Republic confirmed that his Government would fully apply
the provisions of the TRIPS Agreement by the date of its accession to the WTO without recourse to atransitional period.  The Working Party took note of this commitment.
VII. POLICIES AFFECTING TRADE IN SERVICES
160. The Government of the Kyrgyz Republic entered into bilateral negotiations on market access
in Services, on the basis of the offer circulated to Working Party members in documentWT/ACC/SPEC/KGZ/3.  The results of those negotiations are reproduced in the Schedule of SpecificCommitments contained in Part II of the Annex to the Protocol of Accession of the Kyrgyz Republic.
161. In response to requests for information, the representative of the Kyrgyz Republic stated that
since independence, the type, quality and number of service providers had been expanding rapidly.Private companies and individual suppliers now dominated the sector.   As of 1 January 1998, theservice sector accounted for approximately 40 per cent of total employment.  The service sectoraccounted for approximately 30 per cent of GDP in 1996 and approximately 32 per cent in 1997.  HeWT/ACC/SPEC/KGZ/13
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provided the Working Party with a detailed description of selected service industries and the legal
regime governing each.  He noted that the primary goals of State regulation of the services sectorwere:  protection of the life, health and economic interests of consumers, protection of theenvironment and suppression of unfair competition.  The Kyrgyz Republic pursued these goalsthrough a system of regulation intended to impose a minimum of burdens on service suppliers.   Theregulatory system, with a relatively few minor exceptions, was imposed equally on both foreign anddomestic suppliers (including foreign-owned domestic suppliers).  Therefore, foreign suppliersgenerally enjoyed national treatment.  In addition, the Kyrgyz Republic did not discriminate amongforeign suppliers of services on any basis.
VIII. TRANSPARENCY
162. In response to questions from some members of the Working Party, the representative of the
Kyrgyz Republic stated that there was no legal requirement to publish all legislation andadministrative acts on WTO related issues.  However, in practice, all laws, decrees, and resolutionswere published in national newspapers.  In response, some members of the Working Party stated thatthe Kyrgyz Republic appeared to lack a legislative basis for the implementation of Article X of theGATT 1994 and other publication requirements of WTO Agreements, e.g., the requirement thatstandards be published for prior review and comment before finalization and implementation.  Thesemembers stated that the Kyrgyz Republic should make efforts to institute appropriate legislation onthese points.  In response to those requests, the representative of the Kyrgyz Republic stated thatamendments to the Law on Normative Acts and Amendments to the Law on Publication of Laws
, had
been  prepared to ensure the transparency of trade la ws and regulations, and to ensure conformity with
Article X of the GATT 1994 and other pub lication requirements of WTO Agreements, had been
passed by Parliament on June 9 1998.
163. The representative of the Kyrgyz Republic said that upon entry into force of the Protocol of
Accession, the Kyrgyz Republic would submit all initial notifications required by any Agreementconstituting part of the WTO Agreement.  Any regulations subsequently enacted by the KyrgyzRepublic which gave effect to the laws enacted to implement any Agreement constituting part of theWTO Agreement would also conform to the requirements of that Agreement.  The Working Partytook note of these commitments.WT/ACC/SPEC/KGZ/13
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IX. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH
THIRD COUNTRIES
164. The representative of the Kyrgyz Republic stated that the Kyrgyz Republic had signed some
27 bilateral agreements relating to foreign trade in goods and/or services.  He provided the WorkingParty with a list of those agreements and a summary of the terms of the agreements.  The agreementshad been signed with 21 foreign countries (six of which were CIS countries).  All of the agreementswere currently in force and were generally concerned with the granting of mutually advantageousterms and conditions for trade and economic cooperation.  The Kyrgyz Republic had free trade 
areas
or customs unions with the following countries:  CIS countries according to the CIS Free Trade Area
Agreement;  Kazakstan and Uzbekistan according to the Central Asia Economic Area Agreement(20 April 1994);  Kazakstan, Belarus and the Russian Federation 
(pursuant to the framework
agreement of ...);  Bilateral Agreement with Armenia (4 July 1994);  Bilateral Agreement withKazakstan (22 June 1995);  Bilateral Agreement with Moldova (26 May 1995);  Bilateral Agreementwith the Russian Federation (8 October 1992);  Bilateral Agreement with Ukraine (26 May 1995).
165.  Some members of the Working Party 
recalled that Article I of the GATT 1994 required
application of the MFN principle, whilst Article XXIV permitted exceptions to Article I in the case of
regional integration initiatives provided that th e conditions of Article XXIV and the Understanding
were complied with and requested further information on whether the Parliament expected to ratify
the Customs Union with Russia, Kazakstan and Belarus by the Kyrgyz Republic.  The representativeof the Kyrgyz Republic stated that the agreement on joining the Customs Union was ratified by theLegislative Assembly;  however, internal procedures on its enforcement had not been adopted.Currently, within the Customs Union, expert consultations were being held on this issue.
166. Some members of the Working Party asked how the Government of the Kyrgyz Republic
planned to meeting the requirement contained in the Customs Union Agreement that theKyrgyz Republic harmonise its customs and trade legislation with that of the other parties to theCustoms Union.  In response, the representative of the Kyrgyz Republic stated that the harmonisationof the Kyrgyz Republic's legislation connected with foreign trade with the Customs Union'srequirements were currently being studied at the level of ministries and State agencies of theKyrgyz Republic.
167. The representative of the Kyrgyz Republic st ated that his Government would observe the
provisions of the WTO including Article XXIV of the GATT 1994 and Article V of the GATS in itsparticipation in trade agreements, and would ensure that the provisions of these WTO Agreements forWT/ACC/SPEC/KGZ/13
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notification, consultation and other requirements concerning free trade areas and customs unions of
which the Kyrgyz Republic was a member were met from the date of accession.  [ He confirmed that
the Kyrgyz Republic would, by the date of  upon accession, submit notifications and copies of its Free
Trade Area and Customs Union Agreements to the Committee on Regional Trade Agreements(CRTA).  He further confirmed that any legislation or regulations required to be altered under itsTrade Agreements would remain consistent with the provisions of the WTO and would, in any case,be notified to the CRTA during its examination of the same.]
  The Working Party took note of these
commitments.
X. CONCLUSIONS
168. The Working Party took note of the explanations and statements of the Kyrgyz Republic
concerning its foreign trade regime, as reflected in this Report.  The Working Party took note of thecommitments given by the Kyrgyz Republic in relation to certain specific matters which arereproduced in paragraphs 13, 20, 24, 26, 28, 32, 35, 41, 45, 50, 57, 60, 63, 64, 67, 75, 79, 80, 90, 98,101, 102, 109, 111, 117, 118, 133, 159, 163 and 167 of this Report.  The Working Party took note thatthese commitments had been incorporated in paragraph 2 of the Protocol of Accession of theKyrgyz Republic to the WTO.
169. Having carried out the examination of the foreign trade regime of the Kyrgyz Republic and in
light of the explanations, commitments and concessions made by the representative of theKyrgyz Republic, the Working Party reached the conclusion that the Kyrgyz Republic be invited toaccede to the Marrakesh Agreement Establishing the WTO under the provisions of Article XII.  Forthis purpose, the Working Party has prepared the draft Decision and Protocol of Accession reproducedin the Appendix to this Report, and takes note of the Kyrgyz Republic's Schedule of Concessions andCommitments on Goods (document WT/ACC/SPEC/KGZ/10) and its Schedule of SpecificCommitments on Services (document WT/ACC/SPEC/KGZ /11) that are annexed to the Protocol.  It
is proposed that these texts be adopted by the General Council when it adopts the Report.  When theDecision is adopted, the Protocol of Accession woul d be open for acceptance by the Kyrgyz Republic
which would become a Member thirty days after it accepts the said Protocol.  The Working Partyagreed, therefore, that it had completed its work concerning the negotiations for the accession of theKyrgyz Republic to the Marrakesh Agreement Establishing the WTO.WT/ACC/SPEC/KGZ/13
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APPENDIX
ACCESSION OF THE KYRGYZ REPUBLIC
Draft Decision
The General Council,
Having regard to the results of the negotiati ons directed towards the establishment of the
terms of accession of the Kyrgyz Republic to the Marrakesh Agreement Establishing the World Trade
Organization and having prepared a Protocol for the Accession of the Kyrgyz Republic,
Decides, in accordance with Article XII of the Marrakesh Agreement Establishing the World
Trade Organization, that the Republic of the Kyrgyz Republic may accede to the Marrakesh
Agreement Establishing the World Trade Organization on the terms set out in the said Protocol.WT/ACC/SPEC/KGZ/13
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PROTOCOL OF ACCESSION OF THE KYRGYZ REPUBLIC
TO THE MARRAKESH AGREEMENT ESTABLISHING
THE WORLD TRADE ORGANIZATION
DRAFT
The World Trade Organization (hereinafter referred to as the "WTO"), pursuant to the
approval of the General Council of the WTO accorded under Article XII of the Marrakesh AgreementEstablishing the World Trade Organization (hereinafter referred to as "WTO Agreement"), and theKyrgyz Republic,
Taking note of the Report of the Working Party on the Accession of the Kyrgyz Republic to
the WTO in document WT/ACC/KGZ/ .... (hereinafter referred to as the "Working Party Report"),
Having regard to the results of the negotiations on the accession of the Kyrgyz Republic to
the WTO,
Agree as follows:
Part I - General
1. Upon entry into force of this Protocol, the Kyrgyz Republic accedes to the WTO Agreement
pursuant to Article XII of that Agreement and thereby becomes a Member of the WTO.
2. The WTO Agreement to which the Kyrgyz Republic accedes shall be the WTO Agreement as
rectified, amended or otherwise modified by such legal instruments as may have entered into forcebefore the date of entry into force of this Protocol.  This Protocol, which shall comprise thecommitments referred to in paragraph 168 of the Working Party Report, shall be an integral part ofthe WTO Agreement.
3. Except as otherwise provided for in the para graphs referred to in paragraph 168 of the
Working Party Report, those obligations in the Mu ltilateral Trade Agreements annexed to the WTO
Agreement that are to be implemented over a period of time starting with the entry into force of thatAgreement shall be implemented by the Kyrgyz Republic as if it had accepted that Agreement on thedate of its entry into force.WT/ACC/SPEC/KGZ/13
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4. The Kyrgyz Republic may maintain a measure inconsistent with paragraph 1 of Article II of
the GATS provided that such a measure is recorded in the list of Article II Exemptions annexed to thisProtocol and meets the conditions of the Annex to the GATS on Article II Exemptions.
Part II - Schedules
5. The Schedules annexed to this Protocol shall become the schedule of Concessions and
Commitments annexed to the General Agreement on Tariffs and Trade 1994 (hereinafter referred toas the "GATT 1994") and the Schedule of Specific Commitments annexed to the General Agreementon Trade in Services (hereinafter referred to as "GATS") relating to the Kyrgyz Republic.  The
staging of concessions and commitments listed in the Schedules shall be implemented as specified inthe relevant parts of the respective Schedules.
6. For the purpose of the reference in paragraph 6(a) of Article II of the GATT 1994 to the date
of that Agreement, the applicable date in respect of the Schedules of Concessions and Commitmentsannexed to this Protocol shall be the date of entry into force of this Protocol.
Part III - Final Provisions
7. This Protocol shall be open for acceptance, by signature or otherwise, by the Kyrgyz Republic
until ....
8. This Protocol shall enter into force on the thirtieth day following the day of its acceptance.9. This Protocol shall be deposited with the Director-General of the WTO.  The Director-
General of the WTO shall promptly furnish a certified copy of this Protocol and a notification ofacceptance thereto pursuant to paragraph 7 to each Member of the WTO and the Kyrgyz Republic.
10. This Protocol shall be registered in accordance with the provisions of Article 102 of the
Charter of the United Nations.
11. Done at Geneva this ... day of  .... one thousand nine hundred and ninety eight, in a single
copy in the English, French and Spanish languages each text being authentic, except that a Scheduleannexed hereto may specify that it is authentic in only one or more of these languages.WT/ACC/SPEC/KGZ/13
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ANNEX
SCHEDULE CXLII  - THE KYRGYZ REPUBLIC
Part I - Goods
[Circulated in document WT/ACC/SPEC/KGZ/10]
Part II - Services
[Circulated in document  WT/ACC/SPEC/KGZ/11]
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