RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/KGZ/16
27 March 1998
(98-1223)
Working Party on the Accession
of the Kyrgyz RepublicOriginal:  English
ACCESSION OF THE KYRGYZ REPUBLIC
Additional Questions and Replies
 Additional questions submitted by Members and the replies thereto provided by the
authorities of the Kyrgyz Republic are reproduced hereunder.  Commitments of the Kyrgyz Republic
on bringing its legislation into conformity with WTO norms and requirements and lists of specific
goods exported and imported under licenses contained in the draft Resolution on Import/ExportLicensing, including their justification, are reproduced in Annexes I and II respectively.  Attachment
A reproduces a data profile on privatization 1991-1997 and provides tabulations listing the goods
requiring phytosanitary and veterinary certificates and certification of compliance.  Legislative texts
listed in Attachments B and C are available in electronic format in the Secretariat (Accessions
Division, Room 1126).
_______________
TABLE OF CONTENTS
Page Question
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN
TRADE
2. Economic Policy
(a) Main directions of ongoing economic policies
Trading rights 1 1
State trading 1 2-6
Privatization 3 7-8Pricing policy 6 9-11
(d) Foreign and domestic investment policy 8 12-14
III. FRAMEWORK FOR MAKING AND ENFORCING
POLICIES AFFECTING FOREIGN TRADE IN GOODS
AND IN SERVICES
3. Division of Authority Between Central and Sub-central
Governments10 15-16
4. Legislative Programmes or Plans to Change the Regulatory
Regime12 17
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulation(a) Registration requirements for engaging in importing 14 18
(b) Characteristics of national tariff 14 19-27
(c) Tariff quotas, tariff exemptions 17 28WT/ACC/KGZ/16
Page ii
(d) Other duties and charges 17 29-31
(e) Quantitative import restrictions 18 32
(f) Import licensing procedures 19 33-36
(h) Customs valuation 20 37(k) Application of internal taxes on imports
Value added tax 20 38-40
Excise taxes 21 41-42
(l) Rules of origin 22 43
(m-o) Anti-dumping, countervailing and safeguard measures 23 44-45
2. Export Regulation
(b) Customs tariff nomenclature 23 46
(d) Export licensing procedures 24 47(f) Export financing, subsidy and promotion policies 24 48
3. Internal Policies Affecting Trade in Goods
(b)(c) Technical regulations and standards/Sanitary and
phytosanitary measures24 49-55
(d) Trade Related Investment Measures (TRIMS) 28 56
(f-g) Free zones, Free economic zones 29 57-58
(l) Government procurement 30 59-61
4. Policies Affecting Trade in Agricultural Products
(b) Exports
Agricultural export subsidies 31
V. TRADE-RELATED INTELLECTUAL PROPERTY
REGIME
2. Substantive standards of protection, including procedures for
the acquisition and maintenance of intellectual property rights31 62
(a) Copyright and related rights
Law of the Kyrgyz Republic "On Copyright and Related
Rights"32 63-68
Law on the Protection of Computer Software 34 69
(b) Trademarks, including service marks 34 70-75
(e) Patents
Law of the Kyrgyz Republic "On Patent Rights" 36 76-94
VII. INSTITUTIONAL BASIS FOR TRADE AND ECONOMIC
RELATIONS WITH THIRD COUNTRIES
2. Economic integration, customs union and free-trade
agreements42 95
4. Multilateral economic cooperation, membership in the
multilateral economic organizations, trade-related
programmes of other multilateral organizations42 96-97
Transparency 43 98-99WT/ACC/KGZ/16
Page iii
Annex I: Commitments of the Kyrgyz Republic on Bringing its
Legislation into Conformity with WTO Norms and
Requirements44
Annex II: List of Specific Goods Exported under Licenses
contained in the Draft Resolution on Import/Export
Licensing
List of Specific Goods Imported under Licenses
contained in the Draft Resolution on Import/Export
Licensing45
48
Attachment A: Table 1 Sectoral Privatization Data Profile for 
1991-1997
Table 2 Sectoral Privatization Data Profile by 
Privatization Modes for 1991-1997
Table 3 List of Goods Requiring Phytosanitary 
Certificate
Table 4 List of Goods Requiring Veterinary Certificate
Table 5 Fees Levied for Issuance of Veterinary 
Certificate
Table 6 List of Goods Requiring Certificate of 
Compliance51
51
5356
57
57
Attachment B: Draft laws and draft amendments to laws available for 
consultation60
Attachment C:  Recently enacted laws available for consultation 61WT/ACC/KGZ/16
Page 1
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic Policy
(a) Main directions of ongoing economic policies
Trading rights
Question 1.
We note that the Kyrgyz Republic, in its response to question 1 (WT/ACC/KGZ/13) notes that
the State foreign trade monopoly is no longer in force for most products.  We seek a specific
commitment in the protocol text drawing on this response.
Answer:
The Kyrgyz Republic has no objections to include in the protocol text such commitment.
State trading
Question 2.
The information provided in responses 2-16 in WT/ACC/KGZ/13 make it clear that the
State-trading enterprises that handle trade in alcoholic beverages and tobacco have a great
impact on market access for imports, notwithstanding that imports are permitted.  We agree
that they should be notified  as State-trading enterprises
Specifically, the State alcohol monopoly licenses all imports of non-beer alcoholic beverages and
licenses the domestic sale of beer.  The response to question 10 states that "there are no specialconditions" on the domestic sale of tobacco products.
Are licenses required?  If so, who issues them?  Are there any licensing requirements for
domestic distribution?
Answer:
Licenses are not required for the domestic distribution or sale of tobacco products.
Question 3.
The response to questions 13 and 14 (WT/ACC/KGZ/13) concerning KyrgyzAltyn indicates that
since 1994, that this fully State-owned enterpri se has been the only producer, importer, or
exporter of antimony.  We believe that it should  be notified as a state trading enterprise and
subject to Article XVII disciplines.
Answer:
Although KyrgyzAltyn has been the only, de facto,  producer, importer, and exporter of
antimony, the Kyrgyz Republic does not believe that this company falls under the definition of
Article XVII of the GATT 1994.  KyrgyzAltyn does not have any exclusive or special rights or
privileges in conducting foreign trade.  Any person may apply and obtain a license to exportantimony.  Licenses are not required for the import antimony.WT/ACC/KGZ/16
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During the Working Party meeting of 5 February 1998, it was suggested that
KyrgyzPharmacia should be notified also as a state trading company.  The Kyrgyz Republic confirms
that KyrgyzPharmacia has no role whatsoever in the issuance of licenses and, therefore, will not be
notified as a state trading company.
Question 4.
Will the Kyrgyz Republic notify its telecommunications monopoly as a state trading enterprise?Answer:
The Kyrgyz Republic’s telecommunications monopoly provides services and does not trade in
goods.  Therefore, it should not be considered a state trading enterprise.
Question 5.
We seek specific protocol assurances concerning Kyrgyzalco's role in import licensing and
concerning other requirements applied to imports where a state-owned firm exercises a
production or trade monopoly to ensure that the provisions of Articles III, XI, and XVII of theGATT are also applied.
Answer:
Article 8 of the Law on Licensing of 3 March 1997 states that foreign legal entities or
individuals, as well as individuals without citizenship shall receive licenses on the same conditions
and in the same procedure as legal entities and individuals of the Kyrgyz Republic, unless otherwisestipulated by legislative acts. Currently, no legislative acts stipulate otherwise for licenses issued by
Kyrgyzalco.  Article 18 of the same law permits license applicants to have judicial appeal.  Any MFN
or National treatment (Article III) violations may be appealed to the court by license applicants.
Policy decisions with respect to any quantitative restrictions and prohibitions are made by the
Government and not by KyrgyzAlco.
The Kyrgyz Republic commits to ensure that the operations of Kyrgyzalco in the issuance of
import and export licenses for alcohol and alcoholic products are administered in a manner consistent
with WTO requirements.
Question 6.
Companies that exceed their profitability margin  must provide a written justification to the
Anti-Monopoly Department. It is not clear whether the way the monopolies work and
Government controls on prices and profits will be consistent with Articles II and III of the
GATT 1994 and Article VIII of the GATS, and more information should be provided. A
commitment that the regime will be in conformity  with the requirements of Articles II and III of
the GATT 1994 and Article VIII of the GATS should be made.   (Draft Report, paragraph 14)
Answer:
The Kyrgyz Republic suggests that paragraphs 14 and 15 be deleted and replaced by the
following text:WT/ACC/KGZ/16
Page 3
The tariff rates set by the following natural monopolies must be approved by the
Anti-Monopoly Department at the Ministry of Finan ce (AMD).  Tariff rates are regulated using levels
and norms of profitability: cost of operating a specific infrastructure (e.g. power transmission line,
pipeline) or producing a specific product plus a profit margin set by the AMD:
- Kyrgyz Energy Holding (production, transmission, 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) are established by the AMD.  The prices of services provided
by Kyrgyzgasmunaizat (only gas for population) and Kyrgyz Energy Holding (e.g. electricity
HS 2716 rate/kwh) are established by the State Agency on Energy.  Other natural monopolies may set
their prices freely.
Prices for using sewage systems, water, and city public transport are set by city or oblast
administrations.
All fees for services provided by the state are subject to control (e.g. fee for driver’s license,
fee for obtaining phytosanitary certificate, fee for obtaining veterinary certificate).
Permitted monopolies (eight companies) and temporary monopolies (34 companies) - these
are companies which have dominant position in the market (more than 35 per cent market share) - arenot subject to price or profitability control.  Permitted monopolies are, however, required to simply
declare (notify) their prices to the Anti-Monopoly Department at the Ministry of Finance.
The Kyrgyz Republic commits that its regime of controlling natural monopolies will be in
conformity with the requirements of Articles II and III of the GATT 1994 and Article VIII of the
GATS.
Privatization
Question 7.
We note the commitment offered by the Kyrgyz Republic in the response to question 15
(WT/ACC/KGZ/13), concerning annual reports to the WTO on economic reform and the
progress of privatization.
We seek a specific commitment in the protocol text containing this information.
We would also appreciate a brief substantive report on the current status and near term plans
for privatization in the Kyrgyz Republic in the draft Working Party report, drawing on the
material submitted in WT/ACC/SPEC/KGZ/7, which also touches on eligibility for foreign
participation and methods of privatization used.WT/ACC/KGZ/16
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When formulating its response to the questions on the status of privatization, we ask that the
information on the progress and status of the programme be displayed in tabular form as well
as in text, in the format used by Bulgaria in WT/ACC/BGR/5, "Information on Progress of the
Privatization Process of State Enterprises".
Answer:
The Kyrgyz Republic has no objections to include in the protocol text commitments made in
the response to question 15 of WT/ACC/KGZ/13.
The Kyrgyz Republic apologizes for not provid ing information according to the format used
in WT/ACC/BGR/5 because the privatization process in the Kyrgyz Republic is much simpler than
that and centralized in one agency (the State Property Fund of the Kyrgyz Republic) rather than
11 State bodies as in the case of WT/ACC/BGR/5.
The status of privatization in the Kyrgyz Republic is provided in Table 1 and Table 2 of
Attachment A.  As of 1 January 1998, approximate ly 64 per cent of State-owned objects (base is
1 January  1991) have been privatized. The total value of privatized state objects since 1991 is
13,418,900 Million Som.
The mass privatization program was completed on 30 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, its minerals,
water, air space, forests, plant and animal world, all natural resources shall be in State ownership.  In
addition, according to Article 3 of the Law on Privatization and Denationalization of 12 January 1994,
objects in exclusive ownership of the Kyrgyz Republic (land, its minerals, forests, reservoirs and other
water resources) shall not be subject to privatization.  The lease of such property is, however,
possible.
The Law on Privatization and Denationalization also authorizes the Cabinet of Ministers to
specify additional objects not subject to denationalization and privatization, even though their
privatization and denationalization might not be specifically prohibited in the Kyrgyz Republic
Constitution and the Kyrgyz Republic Law On Privatization and Denationalization.  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 as
rarities kept in state museums, libraries and their subsidiaries, the association of folk artproduction "Kyial");
- property compounds of state power and management bodies;
- 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 as
the gold reserve;
- National Bank of the Kyrgyz Republic, Treasury, Monetary chamber;WT/ACC/KGZ/16
Page 5
- 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 the
operative management of the Ministry of Defense of the Kyrgyz Republic, Ministry of
National Security of the Kyrgyz Republic; Ministry on emergencies and civil defense of the
Kyrgyz Republic, Ministry of interior of the Kyrgyz Republic, other ministries and agencies
that 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 and
State 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;
- technical inventory bureau.
The Law on Denationalization and Privatization of State Property of 12 January 1994
provides the Cabinet of Ministers the authority to restrict or otherwise limit foreign investors fromparticipating in the privatization of certain industries; however the Cabinet of Ministers has not yet
exercised this authority.   The Kyrgyz Republic will not use such authority in a manner that is
inconsistent with its obligations as a future member of the WTO.  Foreign investors currently
participate in the privatization process in the Kyrg yz Republic according to the same rules applied to
domestic investors.
Privatization methods which will be used for privatizing remaining State assets, subject to
privatization, are the following:
(i) corporatization (turning a State-owned enterprise into a Joint Stock Company-JSC)
followed by privatization through sales of shares using auctions or commercial
tenders  (used mainly for the privatization of medium and large scale enterprises);WT/ACC/KGZ/16
Page 6
(ii) transformation of a State-owned object into 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 plans to privatize large enterprises in strategic sectors of
the economy including mining, energy, telecommunications, and systems of supply (oil and gas).
These include companies such as Kyrgyztel ecom-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 and denationalize companies and facilities of thenon-productive sphere (e.g. movie theatres, recreation objects, resorts) in 1998-2000.
Question 8.
Could the Kyrgyz Republic provide plans to privatize State ownership?
Answer:
As described in great detail in previous communications to the WTO, the Kyrgyz Republic
initiated its privatization program in 1991.   The program is well underway.  As of 1 January 1998,
approximately 64 per cent of state objects (base is 1 January 1991) have been privatized.  A detailed
update regarding privatization status and plans has been provided.  (Please see the reply to question 6
and Attachment A).
Pricing policy
Question 9.
We appreciate the commitment outlined in the response to question 16(WT/ACC/KGZ/13).
We seek a specific commitment in the protocol text containing this information.
As part of the enhanced transparency noted, we  seek a list of current price controls by HS or
service sector designation in a chart attached to  the Working Party report, and reference in the
Working Party text to the legal basis upon which these and subsequent controls would be
applied.
Answer:
The tariff rates set by the following natural monopolies must be approved by the
Anti-Monopoly Department at the Ministry of Finan ce (AMD).  Tariff rates are regulated using levels
and norms of profitability: cost of operating a specific infrastructure (e.g. power transmission line,
pipeline) or producing a specific product plus a profit margin set by the AMD.WT/ACC/KGZ/16
Page 7
- Kyrgyz Energy Holding (production, transmission, 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)
- 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) are established by the AMD.  The prices of services provided
by Kyrgyzgasmunaizat (only gas for population) and Kyrgyz Energy Holding (e.g. electricity
HS 2716 rate/kwh) are established by the State Agency on Energy.  Other natural monopolies may set
their prices freely.
Prices for using sewage systems, water, and city public transport are set by city or oblast
administrations.  These prices are set through Or ders issued by City or Oblast Administration.
All fees for services provided by the state are subject to control (e.g. fee for driver’s license,
fee for obtaining phytosanitary certificate, fee for obtaining veterinary certificate).   These fees are
stipulated by relevant laws and legal acts concerning various state services.
The Law on Restriction of Monopolistic Activities, Development and Protection of
Competition of April 1994 authorizes the AMD to regulate natural monopolies. Companies may be
included on the list of natural monopolies by Presidential Decrees, Government Resolutions, or AMD
orders. Profit margins and prices are set by the AMD through Orders.
Question 10.
A list of products and services subject to price controls should be included. (Draft Report,
paragraph 18)
Answer:
The Kyrgyz Republic controls prices of the following three goods: electricity (HS 2716),
water (2201), and heat.
The prices of services provided by Kyrgyztelecom (e.g. cost for installing a phone, rate of
long distance calls/per minute) are established by the AMD.  The prices of services provided by
Kyrgyzgasmunaizat (only gas for population) and Kyrgyz Energy Holding (e.g. electricity
HS 2716 rate/kwh) are established by the State Agency on Energy.  Other natural monopolies may set
their prices freely.
Prices for using sewage systems, water, and city public transport are set by city or oblast
administrations.
All fees for services provided by the state are subject to control (e.g. fee for driver’s license,
fee for obtaining phytosanitary certificate, fee for obtaining veterinary certificate).WT/ACC/KGZ/16
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Question 11.
We have a concern regarding the pricing policy of the Kyrgyz Republic which controls
profitability of some producers. We would like to know the reasons why the Kyrgyz Republic
keeps the profitability control measures. Norma lly, price approval and price notification are
widely used for anti-monopoly measures in European countries, the United States and Japan.
We hope that the Kyrgyz Republic may alter profit ability control to price approval and/or price
notification in view of transparency of the procedure.
Answer:
The tariff rates set by the following natural monopolies must be approved by the
Anti-Monopoly Department at the Ministry of Finance (AMD).  Tariff rates are regulated using levels
and norms of profitability: cost of operating a specific infrastructure (e.g. power transmission line,
pipeline) or producing a specific product plus a profit margin set by the AMD.
- Kyrgyz Energy Holding (production, transmission, 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)
- Kyrgyzrailroad (rail transport of passengers and cargo).
The reason for using profitability control in the Kyrgyz Republic for regulating natural
monopolies is its simplicity.
Once all these companies are privatized, the Kyrgyz Republic will reconsider its approach of
regulating natural monopolies.  Please note that most of these companies are slated for privatization in
1998.
The prices of services provided by Kyrgyztelecom are established by the AMD.   The prices
of services provided by Kyrgyz Energy Holding a nd Kyrgyzgasmunaizat are established by the State
Agency on Energy .  Other natural monopolies may set their prices freely.
(d) Foreign and domestic investment policy
Question 12.
According to the information provided in th e elements of a draft report issued by the
Secretariat, we have a concern over some laws and regulations of the Kyrgyz Republic which
treat foreign persons less favourably than Kyrgyz citizens and legal entities. We hope that the
Kyrgyz Republic will abolish such measures that do not provide "national treatment" to foreign
persons and entities.
We would appreciate it if more detailed information could be provided about restrictions to
foreign investors including information concerning the Law on Foreign Investment in
September 1997.WT/ACC/KGZ/16
Page 9
Answer:
Current restrictions on foreign investors in the service sector are described in
WT/ACC/SPEC/KGZ/3 (ACC/5 Information on Policy Measures Affecting Trade in Services) dated
5 June 1997.  Also, the Kyrgyz Republic’s schedule of commitments on services outlines restrictions
on foreign investors in the service sector.
The new law on Foreign Investment of 16 September 1997 provides guarantees of national
treatment, equitable and fair treatment, and full and constant protection for foreign investors.
Exceptions from national treatment, according to the same law, are restrictions which may be
introduced by law in the areas connected with defense and the protection of national security, health
of population, and public moral all of which fall under Article XX and XXI exceptions under the
GATT 1994.  At this point, no such restrictions have been introduced by law.
The Law on Denationalization and Privatization of State Property of 12 January 1994
provides the Cabinet of Ministers the authority to restrict or otherwise limit foreign investors fromparticipating in the privatization of certain industries; however the Cabinet of Ministers has not yet
exercised this authority.   The Kyrgyz Republic will not use such authority in a manner that is
inconsistent with its obligations as a future member of the WTO.
Question 13.
We have a concern regarding paragraph 26 of the Law on Denationalization of State Property
of 12 January 1994, which are not consistent with the WTO Agreement. We know that the
Kyrgyz Republic has not yet exercised the power. If so, will the article be abolished?
Answer:
Please see the response to question 13 above.
Question 14.
There are national treatment issues involved in  the investment regime, and changes in the
Foreign Investment Law will need to be reflected in the working party report (paragraph 6 ).
Answer:
Current restrictions on foreign investors in the service sector are described in
WT/ACC/SPEC/KGZ/3 (ACC/5 Information on Policy Measures Affecting Trade in Services) dated5 June 1997.  Also, the Kyrgyz Republic's schedule of commitments on services outlines restrictions
on foreign investors in the service sector.
The new law on Foreign Investment of 16 September 1997 provides guarantees of national
treatment, equitable and fair treatment, and full and constant protection for foreign investors.
Exceptions from national treatment, according to the same law, are restrictions which may beintroduced by law in the areas connected with defense and the protection of national security, health
of population, and public moral all of which fall under Article XX and XXI exceptions under the
GATT 1994.  At this point, no such restrictions have been introduced by law.WT/ACC/KGZ/16
Page 10
The Law on Denationalization and Privatization of State Property of 12 January 1994
provides the Cabinet of Ministers the authority to restrict or otherwise limit foreign investors from
participating in the privatization of certain industries; however the Cabinet of Ministers has not yet
exercised this authority.  The Kyrgyz Republic will not use such authority in a manner that is
inconsistent with its obligations as a future member of the WTO.
III. FRAMEWORK FOR MAKI NG AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES
3. Division of Authority Between Central and Sub-central Governments
Question 15.
We very much appreciate the complete information provided by the Kyrgyz Republic on its
legal and political system, much of which has been included in the draft elements text.  While
this information is very useful as background, we would appreciate a more focused treatment
on specific elements of the system that relate to trade.
We seek focused information in the draft Workin g Party report on (a) the relationship between
central and subcentral authorities in establishing and enforcing trade policy, (b) implementing
WTO provisions, and (c) the right of appeal by foreign and domestic importers and exporters of
official rulings affecting trade.
We seek a commitment in the draft Working Party report addressing these issues.Answer:
The Government is the highest body within the executive power system of the Kyrgyz
Republic, (except the President) and as such directly controls activities of local state administrations
on a range of issues, including those involving external trade matters and implementation of
provisions of international treaties to which the Kyrgyz Republic is a party.  Article 6 of the CivilCode states that international agreements ratified by the Kyrgyz Republic are to take precedence over
conflicting provisions in civil legislation.
The Kyrgyz Republic Law "On Government" of 25 March 1997 No. 17 sets out the functions
and authority of the central government and provides in Article 20 and 21 that the Government shall
direct the implementation of all laws and decrees of the Kyrgyz Republic.
The Kyrgyz Republic Law "On local self-government and local state administrations in the
Kyrgyz Republic" of 19 April 1991 N-437-XII sets out the powers of the local governments.  These
powers are subordinate to those of the national government and do not entail authority concerning
trade policy, which is the sole purview of the central authorities.
Agency actions affecting trade are subject to administrative and appellate review.  Article
2(3) of the Civil Code provides for the right to appeal an administrative decision in court.
Specifically, Articles 417 to 428 of the Customs Code provides for the right to appeal decisions of the
customs bodies.  Article 57 of the Tax Code provides for administrative appeals of decisions of an
official of the Tax Service.   Article 58 provides fo r appellate review of any final decision of the Tax
Service.  And Article 18 of the Law on Licensing provides for the right to appeal issues relating to the
refusal in the issue of a license.WT/ACC/KGZ/16
Page 11
The Kyrgyz Republic commits:
- to provide the right of appeal by foreign and domestic importers and exporters of official
rulings affecting trade;
- that central authorities will be solely responsible for establishing foreign trade policy; and
- that the central Government will ensure observance of WTO obligations by sub-central
Governments.
Question 16.
This paragraph states that local government policy affecting trade in goods and services is
almost exclusively determined by the central Government. "Almost exclusively" indicates that
some areas are not covered by central Government. It  is also stated that each regional Kenesh is
responsible for dealing with "regional economic matters", which could presumably have a trade
impact. We seek clarification as to whether there are any areas not covered by central
Government authority. If there are some, then information will need to be provided as to how
the Kyrgyz Republic will maintain conformity with WTO obligations in these areas, and an
assurance provided that the central Government  will ensure observance of WTO obligations by
sub-central Governments.  (Draft Report, paragraph 22.)
Answer:
The word "almost" should be deleted.
The Government is the highest body within the executive power system of the Kyrgyz
Republic, (except the President) and as such directly controls activities of local state administrations
on a range of issues, including those involving external trade matters and implementation of
provisions of international treaties to which the Kyrgyz Republic is a party.  Article 6 of the Civil
Code states that international agreements ratified by the Kyrgyz Republic are to take precedence overconflicting provisions in civil legislation.
The Kyrgyz Republic Law "On Government" of 25 March 1997 No. 17 sets out the functions
and authority of the central government and provides in Article 20 and 21 that the Government shall
direct the implementation of all laws and decrees of the Kyrgyz Republic.
The Kyrgyz Republic Law "On local self-government and local state administrations in the
Kyrgyz Republic" of 19 April 1991 N-437-XII sets out the powers of the local governments.  These
powers are subordinate to those of the national government and do not entail authority concerning
trade policy, which is the sole purview of the central authorities.
The Kyrgyz Republic commits:
- that central authorities will be solely responsible for establishing foreign trade policy; and
- that the central Government will ensure observance of WTO obligations by sub-central
Governments.WT/ACC/KGZ/16
Page 12
4. Legislative Programmes or Plans to Change the Regulatory Regime
Question 17.
We note from the list of draft and enacted legislation in WT/ACC/KGZ/13 and
WT/ACC/SPEC/KGZ/7 that much of the legislative agenda to implement WTO provisions will
be acted upon later in 1998.
We would appreciate periodic updates on these efforts.Answer:
Since the last set of questions and answers (WT/ACC/KGZ/13) which was forwarded to the
WTO in September 1997, the following were enacted:
(i) the Law On Copyright and Neighbouring Rights, 14 January 1998;
(ii) the Law On Trademarks, Servicemarks and Appellation of Places of Origin,
14 January 1998 ;
(iii) the Patent Law, 14 January 1998;(iv) the Civil Code Part II (Section on Intellectual Property), 5 January 1998;
(v) the Criminal Code (Section on Intellectual Property), 1 January 1998;
(vi) the Law on Consumer Protection, 10 December 1997;
(vii) the Law on Bankruptcy, 15 October 1997;
(viii) Amendments to Part I of the Civil Code, 15 October 1997.Copies of the above laws are provided in Attachment C.  Resulting from the enactment of the
aforementioned laws, the following laws became invalid:
(i) Temporary Regulation on Industrial Property in the Kyrgyz Republic,
16 January 1997;
(ii) Law on Consumer Protection, 27 February 1992;(iii) Law on Bankruptcy, 15 January 1994;
(iv) Amendments to Part I of the Civil Code, 3 June 1996.
Per request of working party members, the Kyrgyz Republic is providing a list of all draft
laws and all draft amendments to laws relevant to its foreign trade regime:WT/ACC/KGZ/16
Page 13
Draft Law Status Date of submission to WTO
i. The Law on Anti-Dumping At the Parliament for approval Last draft was provided in
October 1997.  An updated draftis provided in Attachment B
ii. The Law on Countervailing At the Parliament for approval Last draft was provided in
October 1997.  An updated draftis provided in Attachment B
iii. The Law on Safeguards At the Parliament for approval Last draft was provided in
October 1997.  An updated draftis provided in Attachment B
iv. The Law on PC, Software
Programs, and DatabasesAdopted by the Parliament on 2
March 1998.  Awaiting President’s
signature.Draft was provided in September
1997.  A copy of the law will be
provided after President’ssignature.
v. The Law on Integrated
Circuits TopographyAdopted by the Parliament on 2
March 1998.  Awaiting President’s
signatureDraft was provided in September
1997. A copy of the law will be
provided after President’ssignature
vi. The Law on Commercial
SecretsAdopted by the Parliament on 2
March 1998.  Awaiting President’ssignatureA copy of the law will be
provided after President’ssignature
vii. The Law on Selection
AchievementsBeing reviewed by the Parliament Provided in September 1997
viii. Amendments to the Law on
StandardizationBeing approved by the Government Provided in Attachment B
ix. Amendments to the Law on
CertificationBeing approved by the Government Provided in Attachment B
x. Regulations on
Import/Export LicensingBeing approved by the Government Will be provided in April 1998.
xi. Amendments to the Customs
CodeBeing approved by the Government Provided in Attachment B
xii. Amendments to the Law on
Free Economic ZonesBeing approved by the Government Will be provided in April 1998
xiii. On Introducing Changes and
Amendments to some
Legislative Acts of theKyrgyz Republic (includesAmendments to the Law onNormative Acts and
Amendments to the Law on
Publication of Laws)Being approved by the Government Provided in Attachment B
xiv. Amendments to the Tax
CodeBeing approved by the Government Will be provided in April 1998.
xv. Amendments to the Law on
VeterinaryBeing approved by the Government Will be provided in April 1998.
xvi. Amendments to the Law on
Plant QuarantineBeing approved by the Government Will be provided in April 1998.WT/ACC/KGZ/16
Page 14
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulations(a) Registration requirements for engaging in importing
Question 18.More detail should be provided in this paragra ph covering requirements to be met to engage in
foreign trade, and whether there are any rest rictions such as capital or nationality
requirements.  (Draft Report, paragraph 23)
Answer:
There are no special registration requirements to be met to engage in foreign trade.
Registration of physical persons as entrepreneurs and registration of businesses as legal persons are
required to be engaged in any type of economic activity in the Kyrgyz Republic.  There are no
restrictions, such as capital or nationality requirements, to engage in foreign trade.
(b) Characteristics of national tariff
Question 19.It is stated that the customs tariff is based on the commodity list of foreign economic activity
which is generally patterned after the Harmoniz ed System (HS). We seek clarification as to
whether the Kyrgyz Republic applies the HS 96 nomenclature, and whether there are some
exceptions. If there are any excepti ons, when will they be incorpor ated into the national tariff. If
the HS 96 nomenclature is not used, when it is  expected to be adopted?  (Draft Report,
paragraphs 25 and 26.)
Answer:
In 1997, the Kyrgyz Republic adopted HS 96 as its tariff nomenclature.
Question 20.
Clarification is sought to make clear what is meant when the Kyrgyz Republic says that there
are no MFN duty rates, and that no special MFN rates have yet been established.
Answer:
The word "special" may be deleted.
Question 21.
We note that with respect to the implementation  of seasonal duties, Article 17 of the Customs
Tariff Law permits the Cabinet of Ministers to issue rulings which establish seasonal customs
duties for certain types of goods and their effective terms. No such implementing regulations
have been enacted at this stage and no seasonal  duties have been imposed. Are there any plans
for the introduction of seasonal duties, and if so, on what goods? The Kyrgyz Republic will need
to give a commitment that any such seasonal duties will not exceed bound levels of tariffs in
their tariff schedule. What arrangements will be made to ensure that traders are given adequate
notice of any changes in seasonal duties prior to  their implementation (in other words, that they
will conform to the requirements of Article X of the GATT 1994).WT/ACC/KGZ/16
Page 15
Answer:
Seasonal customs duties have never been imposed by the Kyrgyz Republic.  Seasonal duties,
when imposed, will not exceed the bound level of tariffs and will be applied in a consistent manner
with the Kyrgyz Republic’s obligations to the WTO.  Also, adequate notice will be provided before
imposing seasonal duties in accordance with the Amendments to the Law on Normative Acts and
Amendments to the Law on Publications of Laws provided already to the WTO Secretariat.
The Customs Tariff law of 15 December 1992 is scheduled to be cancelled in 1998.
Question 22.
Clarification is sought to make clear what is meant when the Kyrgyz Republic says that there
are no MFN duty rates, and that no special MFN rates have yet been established.
Answer:
The word "special" may be deleted.
Question 23.
We note that with respect to the implementation  of seasonal duties, Article 17 of the Customs
Tariff Law permits the Cabinet of Ministers to issue rulings which establish seasonal customs
duties for certain types of goods and their effective terms. No such implementing regulations
have been enacted at this stage and no seasonal  duties have been imposed. Are there any plans
for the introduction of seasonal duties, and if so, on what goods? The Kyrgyz Republic will needto give a commitment that any such seasonal duties will not exceed bound levels of tariffs in
their tariff schedule. What arrangements will be made to ensure that traders are given adequate
notice of any changes in seasonal duties prior to  their implementation (in other words, that they
will conform to the requirements of Article X of the GATT 1994).
Answer:
Seasonal customs duties have never been imposed by the Kyrgyz Republic.  Seasonal duties,
when imposed, will not exceed the bound level of tariffs and will be applied in a consistent manner
with the Kyrgyz Republic’s obligations to the WTO.  Also, adequate notice will be provided before
imposing seasonal duties in accordance with the Amendments to the Law on Normative Acts and
Amendments to the Law on Publications of Laws provided already to the WTO Secretariat.
The Customs Tariff law of 15 December 1992 is scheduled to be cancelled in 1998.
Question 24.
We have a concern regarding Article 17 of the Customs Tariff Law that provides for seasonal
customs duties. We hope that they are below the bound rates of duties and that they are
consistent with the WTO Agreements.WT/ACC/KGZ/16
Page 16
Answer:
Seasonal customs duties have never been imposed by the Kyrgyz Republic.  Seasonal duties,
when imposed, will not exceed the bound level of tariffs and will be applied in a consistent manner
with the Kyrgyz Republic’s obligations to the WTO.  Also, adequate notice will be provided before
imposing seasonal duties in accordance with the Draft Amendments to the Law on Normative Acts
and the Draft Amendments to the Law on Publications of Laws (Draft Law on Introducing Changesand Amendments to some Legislative Acts of the Kyrgyz Republic) provided already to the WTO
Secretariat (Attachment C).
Question 25.
We know that some enterprises receive tariff exemption for imports of certain items for the
production of final products. It is important to ensure procedural transparency regarding
receiving tariff exemptions and not to discriminate against foreign enterprises.
Answer:
The same procedure to obtain these tariff exemp tions applies to Kyrgyz legal entities with or
without foreign participation.  There are no restrictions or conditions imposed on Kyrgyz legal entities
which are partially or fully foreign-owned.
Question 26.
Is there any restriction on the definition of dome stic business enterprise (in other words, is a
totally owned foreign company allowed to receive tariff exemptions on the same basis as wholly
domestically owned companies?) (Draft Report, paragraph 28.)
Answer:
Domestic business enterprise include wholly domestically owned, partially foreign owned,
and fully foreign owned. The same procedure to obtain these tariff exemptions applies to Kyrgyz legalentities with or without foreign participation.  There are no restrictions or conditions imposed on
Kyrgyz legal entities which are partially or fully foreign owned.
Question 27.
We would suggest that this paragraph should be redrafted. The intention is not to preclude
legitimate tariff concessions (for example, where there is no domestic production) provided thatthese are granted on a non-discriminatory MFN basis.  (Draft Report, paragraph 30.)
Answer:
Tariff concessions, including concessions to provide zero tariff, will be part of the Kyrgyz
Republic’s schedule of concessions on goods.WT/ACC/KGZ/16
Page 17
(c) Tariff quotas, tariff exemptions
Question 28.
There will need to be a commitment to abide by WTO obligations, particularly Article XIII of
the GATT 1994.
We presume that the reference to Article XVII means to Article XVIII.  (Draft Report,
paragraph 37)
Answer:
The Kyrgyz Republic commits to abide by Article XIII of the GATT 1994.
Article XVII should be replaced by Article XVIII.
(d) Other duties and charges
Question 29.
In response to question 20, the Kyrgyz Republic commits to bring its customs processing fee
into conformity with Article VIII of the GATT 1994 and describes in some detail a plan to do so.
Has this new fee structure been implemented in the new Customs Law?
Answer:
Article 112 of the Customs Code states that the fee for customs processing should be
0.15 per cent and should not exceed the cost of services.  A government resolution will be issued on
the date of accession to the WTO setting the minimum and maximum fees according to themethodology described in the reply to question 20 of WT/ACC/KGZ/13.
Question 30.
The fee structures for import and export licensing, and for phytosanitary and veterinary
certificates are also described.
Have these fees already been implemented?Does the Kyrgyz Republic apply any other fees, taxes, or charges to imports (not including VAT
and excise taxes)?
We seek a general commitment from the Kyrgyz Republic that all fees applied to imports will
be operated consistent with the provisions of Article VIII of the GATT.
Answer:
As described in the reply to question 20 of WT/ACC/KGZ/13, the current fees (in effect) for
phytosanitary certificate and import/export licensing reflect the cost of services rendered and are,
therefore, in full conformity with Article VIII  of the GATT 1994.  The current fees charged for
veterinary certificate are way below the cost of services.  (See analysis provided in Attachment A.III
to WT/ACC/KGZ/13)WT/ACC/KGZ/16
Page 18
In addition to the aforementioned fees and the customs processing fee, the Kyrgyz Republic
charges fees for obtaining the certificate of compliance and the certificate of origin.  The Kyrgyz
Republic is currently evaluating these two fees to determine whether or not they reflect the cost of
services rendered.  A report on such findings will be provided in April 1998.
The Kyrgyz Republic does not apply any other fees, taxes, or charges to imports (not
including VAT and excise taxes).
The Kyrgyz Republic commits that all fees applied to imports will be operated consistent with
the provisions of Article VIII of the GATT on the date of accession.
Question 31.
We note the costs associated with the issuance of  a phytosanitary certificate. We would like to
see the name of the organization responsible fo r issuing the certificate included in the report.
Are there any mechanisms in place for decisi ons to challenged concerning the issuance of
phytosanitary certificates?  (Draft Report, paragraph 34.)
A commitment to abide by the provisions of Article VIII of the GATT 1994 should be included
to this section.
The Kyrgyz Republic should make a clear statement as to whether or not its schedule of
commitments will include any other duties or charges (ODCs) within the meaning of GATT
Article II.
Answer:
The Phytosanitary Certificate is issued by the Ministry of Agriculture.  The current fee
structure for issuing phytosanitary certificate is in conformity with Article VIII of the GATT 1994.
The Kyrgyz commits to abide by the provisions of Article VIII.
The Kyrgyz Republic will not include any other du ties or charges (ODCs) within the meaning
of GATT Article II.
(e) Quantitative import restrictions
Question 32.
This paragraph states that the Kyrgyz Republic does not plan to introduce import quotas
"except of these circumstances permitted by the WTO Agreements". We seek clarification as towhether this is simply a statement of the norm al rights of all WTO members, or whether the
Kyrgyz Republic is suggesting possible plans to introduce import quotas in the future.  If there
are plans to introduce import quotas in the future,  could the Kyrgyz Republic provide
information on areas where they might be applied and the circumstances under which they
might be introduced.  (Draft Report, paragraph 47)
Answer:
This is simply a statement of the normal rights of all WTO members.  Currently the Kyrgyz
Republic does not plan Any plans to introduce import quotas.WT/ACC/KGZ/16
Page 19
(f) Import licensing procedures
Question 33.
The March 1997 Law on Licensing contains provisions that could be applied against WTO
provisions, e.g., for protective purposes.
Will the Kyrgyz Republic commit to apply this law in conformity with WTO provisions, e.g.,
GATT Articles XI and XIX, and the Agreements on Licensing and Safeguards?
Answer:
The Kyrgyz Republic commits to apply the March 1997 Law on Licensing in conformity with
WTO provisions, e.g., GATT Articles XI and XIX, and the Agreements on Licensing and Safeguards.
Draft regulations for proper implementation of the import/export provisions of the Law on Licensing
being finalized and will be provided in April 1998.
Question 34.
Can the Kyrgyz Republic list the five categories subject to import licensing?  (Draft Report,
paragraph 48)
What are the consumer welfare provisions (apart from health and safety) for which licensing is
imposed?
Answer:
The five generalized categories of products subject to import licensing mentioned in
Paragraph 48 were stipulated by Cabinet of  Ministers Resolution No. 408 of 13 June 1994.
Resolution No. 408 became invalid in May 1997.  Government Resolution No. 56 took effect on
21 July 1997.  Resolution No. 56 listed 15 categories of products as subject to import licensing and 18
categories of products as subject to export licensing.
The Kyrgyz Republic’s import and export licensing regime is currently being revised to
conform to the Law on Licensing of March 1997 and the WTO Import Licensing Agreement.  The
Draft Regulations on Import/Export Licensing is being finalized and will be provided to the WTO
Secretariat in April 1998.  This draft regulation will be enacted during the next two months.  Please
find attached two tables listing goods subject to im port and export licensing along with justification
for such licenses.
Question 35.
What is the certificate of conformity referred to  this paragraph? Is it related to a standard?
(Draft Report, paragraph 49)
Answer:
It is a certificate indicating that a given product meet standards.  It is referred to elsewhere in
the Draft Report as "Certificate of Compliance."WT/ACC/KGZ/16
Page 20
Question 36.
The commitment in this paragraph will need to be improved. In paragraph 52 there is a
commitment that fees will be in conformity with Article VIII. This commitment should be
moved to paragraph 54 and should be improved by also including a commitment to abide by the
provisions of the Agreement on import licensing.  (Draft Report, paragraph 54)
Answer:
The Kyrgyz Republic commits to apply the March 1997 Law on Licensing in conformity with
the WTO Agreement on Import Licensing.  Instead of amending the Law on Licensing, the Kyrgyz
Republic has made a recent decision to adopt implementing regulations which will clarify the
provisions on import and export licensing found in the Law on Licensing.  These draft regulations are
being finalized and will be sent to the WTO in April 1998.
The information provided in Paragraph 52 regarding the fee for import/export licensing is
inaccurate.  The current fee to obtain an import or export license is 1,000 Som (approximatelyUS$56).  A detailed analysis, which was provided in Attachment A.IV to WT/ACC/KGZ/13,
demonstrates that the current fee reflects the cost of services rendered.
(h) Customs valuation
Question 37.
We are reviewing the text of the new Customs Co de.  We will provide comments within the next
month.
Answer:
 We suggest that such review be conducted in lig ht of the draft amendments to the Customs Code
provided in Attachment B.
(k) Application of internal taxes on imports
Value added tax
Question 38.
We would appreciate an update on the progress within the CIS in bringing VAT into
conformity with GATT Article I.
Answer:
Three agreements have been signed respectively with Kazakstan, Ukraine and Uzbekistan on
applying VAT at destination rather than origin.  An agreement has been initiated with Georgia
Question 39.
It would be useful if the language could be strengthened to reflect a commitment that the VAT
system will be in full conformity with Article III as well as Article I of the GATT 1994 uponaccession.  (Draft Report, paragraph 41)WT/ACC/KGZ/16
Page 21
Answer:
The Kyrgyz Republic commits that the VAT system  will be in full conformity with Article III
as well as Article I of the GATT 1994 upon accession.
Question 40.
In paragraph 40 the draft "elements" document, the Kyrgyz Republic states that from
14 January 1997, VAT has been collected on all imports from all sources on an MFN basis,including imports from the CIS.  Paragraph 41 and the response to question 24, however, seem
to imply that the new tax legislation, slated for passage in early 1998, will actually implement
this measure.
Could Kyrgyz Republic clarify whether the VAT is applied on an MFN basis on all imports, and
what, if anything, the new tax legislation will provide in this regard?
The draft "elements" document also notes that currently excise taxes are applied at higher rates
on imports than on similar domestic goods.
Will the "Law on Making Amendments and supplements to the Tax Code of the Kyrgyz
Republic" to be enacted by the end of May 1998, equalize the application of excise taxes?
We seek a commitment in the protocol from the Kyrgyz Republic that it will implement VAT
and excise tax systems that are in full conformity with WTO national treatment and
most-favoured-nation requirements prior to WTO accession.
Answer:
Paragraph 40 of the draft "elements" needs to be changed.  VAT does not apply on an MFN
basis with respect to imports.
Three agreements have been signed respectively with Kazakhstan, Ukraine, and Uzbekistan
on applying VAT at destination rather than origin.  An agreement has been initiated with Georgia.Only the agreement with Kazakhstan has been ratified.
Draft amendments to the Tax Code are being prepared to ensure the eventual application of
VAT on imports on MFN basis and will be provided in April 1998.  The same draft amendments to
the Tax Code will also provide for national treatmen t with respect to the application of excise taxes.
The Draft amendments to the Tax Code envisages a mechanism to transition the application
of VAT from source to destination for those countries which apply the same principle.
The Kyrgyz Republic commits to implement  excise  tax system that is in full conformity with
WTO national treatment and most-favoured nation requirements prior to WTO accession.
Excise taxes
Question 41.We have concerns over the discriminatory excise  taxes which differentiate between foreign and
domestic products, as they are not consistent with the WTO Agreement. We would appreciate it
if a plan to unify the tax is provided.WT/ACC/KGZ/16
Page 22
Answer:
The Kyrgyz Republic is committed to establish, upon accession to the WTO, one equal excise
tax regime for imported and domestically produced goods.  Currently, the Tax Code is being amended
to ensure that excise taxes will apply equally to foreign and domestic products.  The Tax Code is also
being amended to provide the Government with the authority to establish excise tax rates.  Upon
approval of the Amendments to the Tax Code, the Ministry of Finance will submit to the Government
the list of goods subject to excise tax rates to be applied equally on imported and domestically
produced goods.
Question 42.
It should be made clear that the Law referred  to here is the one that will rectify the
discriminatory excise tax treatment of imported goods. The commitment in paragraph 45 "that
upon accession to the WTO, one equal excise tax regime would apply to both imported and
domestically produces goods", should be moved from paragraph 45 to paragraph 46.  (DraftReport, paragraph 46)
Answer:
The legislation referred to in Paragraph 45 is a Government Resolution which will establish
the actual excise rates for domestic and imported products.  The Amendments to the Tax Code
(referred to in paragraph 46) will include provisions in the tax code that excise taxes shall applyequally to domestic and imported products.
(l) Rules of origin
Question 43.
The response to question 27 (WT/ACC/KGZ/13) indicates that the "new" or "adopted"
Customs Code contains provisions for rules of origin and for the right of appeal of customsadministrative rulings.
Is this the new Customs Tariff Law of 30 July 30 1997?  Are the Amendments to the Customs
Tariff of 28 July 1997 relevant?
We seek a specific commitment to implement the provisions of the Agreement on Rules of
Origin prior to accession.
Answer:
The Kyrgyz Republic did not enact a new Customs Tariff Law 30 July 1997.   Amendments
to the Customs Tariff Law of 15 December 1992 were enacted on 29 July 1997.  These amendments
are not relevant to Rules of Origin and simply provides the authority to the Parliament for establishing
import tariff rates.
The new Customs Code, which took effect on 1 October 1997 included provisions on rules of
origin and for right of appeal which are in conformity with WTO Agreement on Rules of Origin.
The Customs Tariff law of 15 December 1992, which now is largely redundant of the
Customs Code, is scheduled to be cancelled after the enactment of the three laws on anti-dumping,
countervailing, and safeguards.WT/ACC/KGZ/16
Page 23
(m) Anti-dumping regime
(n) Countervailing duty regime
(o) Safeguard regime
Question 44.
What is the status of these draft laws?
Answer:
Initial drafts of all three laws were submitted to the WTO Secretariat in September 1997.
Updated versions were provided in late October 1997.  Currently, all three laws are awaiting final
government approval before submission to the Parliament.  The most recent versions of these three
draft laws are provided in Attachment B.
Question 45.
There should be a commitment in this paragraph that any legislation in place at the time of
accession or implemented in the future providing for the application of measures taken foranti-dumping, countervailing duty, or safeguard purposes would conform to the provisions of
the WTO Agreements of Anti-dumping, on Subsidies and Countervailing Measures, and on
Safeguards. In the absence of such legislative authority in place at the time of accession, the
Kyrgyz Republic would not apply measures for anti-dumping, countervailing duty, of safeguard
purposes until legislation in conformity with the provisions of these WTO Agreements had beenimplemented.  (Draft report, paragraph 62)
Answer:
The Kyrgyz Republic agrees to such commitment.
2. Export Regulation
(b) Customs tariff nomenclatureQuestion 46.
This paragraph appears inconsistent with the information in paragraph 40 on VAT collection.
The situation with regard to VAT exemptions and collections on intra-CIS trade needs to
clarified and there should be an assurance concerning consistency with Article I of the
GATT 1994. (Draft report, paragraph 63)
Answer:
Paragraph 40 should be eliminated.
Please see the response to question 40 above.
The Kyrgyz Republic commits to comply with Article I (MFN) in applying VAT.WT/ACC/KGZ/16
Page 24
(d) Export licensing procedures
Question 47.
This paragraph will need to contain a commitment that the Kyrgyz Republic will abide the
provisions of the Article XI of the GATT.  (Draft report, paragraph 69)
Answer:
The Kyrgyz Republic commits to abide the provisions of Article XI of the GATT.
(f) Export financing, subsidy and promotion policies
Question 48.
We are reviewing the new Foreign Investment Law, enacted in September 1997 which Kyrgyz
Republic has indicated (para 74 of the "elements" text) eliminates the profit tax reduction for
export performance.
Could the Kyrgyz Republic outline how tax incen tives based on export performance currently
used by firms under the previous foreign investment law will be phased out or otherwiseeliminated prior to WTO accession?
Answer:
 According to Article 24 of the new Foreign Investment Law of September 1997, tax
incentives, based on export performance currently used by foreign firms under the previous foreign
investment law, shall continue to apply until the expi ration of the term of their validity.  Any attempt
at this point to terminate such incentives prior to the term of their validity is likely to cause significant
problems to existing foreign investors.
3. Internal Policies Affecting Foreign Trade in Goods
(b) Technical regulations and standards
(c) Sanitary and phytosanitary measures
Question 49.
Can the Kyrgyz Republic explain how standards are used to preserve all types of resources?
(Draft report, paragraph 75)
Answer:
Article 1 of the Law of Kyr gyz Republic on Standardization states that objectives of
standardization is: "to provide saving (economy) of all sorts of resources"
Standards provide for indexes aimed at economizing different kinds of resources.  In the
development and production of articles, it is recommended not to exceed specific indexes of
consumption of materials, power, fuel, etc.  These indexes are, however, not mandatory.WT/ACC/KGZ/16
Page 25
Question 50.
There is a need for details to be provided on plans to overcome the difficulties outlined in
meeting the requirements of Agreement on Tec hnical Barriers to Trade.  (Draft report,
paragraphs 81 and 81)
Answer:
The Kyrgyz Republic has been working on overcoming difficulties in meeting the
requirements of the TBT Agreement.
The Law on Standardization and the Law on Certification are currently being amended to
meet the TBT requirements for publication of draft standards and technical regulations.
Kyrgyzstandard publishes a quarterly periodical entitled the Information Bulletin of Kyrgyzstandard
where such notices will be published.
Under Resolution No. 12  of 6 January 1997 the Cabinet of Ministers of the Kyrgyz Republic
officially established the Information Center of the State Inspectorate on Standardization andMetrology (Kyrgyzstandard) as the Inquiry Point for standards and sanitary and phytosanitary
measures in the Kyrgyz Republic.  This Inquiry Point meets WTO requirements.
It contains all adopted and proposed standards and conformity assessment procedures and
information concerning the membership and participation of the Kyrgyz Republic in regional and
international standardizing bodies as well as in bilateral and multilateral arrangements.  The InquiryPoint receives questions and sends responses by telephone, mail, fax and e-mail.  Notification to the
WTO of the establishment of this Inquiry Point is currently being prepared. Kyrgyzstandard has hired
employees, fluent in Russian and English, who will receive and transmit information in English.
To the extent that resources will allow, Kyr gyzstandard will participate in international
standards activities.  The Kyrgyz Republic is currently a corresponding member of the ISO.  It is alsoa member of the CIS Inter-Governmental Counci l on Standardization, Metrology and Certification.
This body is recognized by the ISO as a regional organization moving towards the eventual
implementation and usage of international standards
Question 51.
We have reviewed some of the draft legislation provided by the Kyrgyz Republic with a view to
evaluating its ability to comply with TBT obligation s.  There is very little in place at the present
time that meets the obligations of the TBT Agreement.  For Example:
(i) there is no mechanism for publishing draft standards and technical regulations;
(ii) there is no operating inquiry point, either for the TBT or SPS, and the TBT inquiry
point is only in the initial stages of formation;
(iii) the Kyrgyz Republic indicates it will have difficulty in receiving and transmitting
information in one of the accepted languages of the WTO;
(iv) mandatory certification covers a broad range of product classes, but there does not
appear to be any information on what standards or certification procedures apply in
particular cases, and no information on what risks are being addressed through
certification;WT/ACC/KGZ/16
Page 26
(v) some products require multiple certificates- safety, hygiene, etc.  but there is no
information on which products require which types of certificates.  Charges for
veterinary certificates appear to be value-b ased, rather than being based on the cost of
service being provided.  In addition, import  licenses are required for pharmaceuticals,
medical and veterinary equipment;
(vi) there appears to be no provision for notifying updates to the list of products requiring
mandatory certification, with the exception that other CIS countries receive prior notice
of changes to the list and also have a grace period for compliance;
(vii) the Kyrgyz Republic does not accept foreign certificates, with the exception that it does
accept certificates from any accredited instit ution in CIS countries.  Yet the country has
only eight accredited certification bodies, 13 test labs and four regional branches of
Kyrgyzstandard responsible for certifying products.  This indicated there may be too
few authorized certification entities to satisfy demand;
(viii) the Kyrgyz Republic has indicated that is does not have the financial ability, the
necessary specialists, or the infrastructure  necessary to participate in international
standards activities or to develop its own standards and technical regulations.  For
example, it has noted that membership in ISONET, which would assist in meeting TBT
Agreement provisions, poses organizational, technical and financial difficulties forKyrgyzstandard.
(ix) many of the same deficiencies are present vis-à-vis the SPS Agreement as well, i.e. there
is no inquiry point, no provision for prior publication of new requirements for comment,
and no requirements or guidelines in place to conduct risk assessments.  There does not
appear to be any provision for the acceptance of equivalent requirements.
(x) we recognize that the Kyrgyz Republic may need help in setting up initial institutions
and enacting basic WTO-consistent laws to implement the TBT and SPS Agreements in
the trade regime.  These minimum requirements, however, are fundamental to
beginning to move the current system into line with international norms and WTO
provisions.
Answer:
Draft amendments to the Law on Standardization and Draft Amendments to the Law on
Certification are provided in Attachment B.
(i) The Law on Standardization is currently being amended to meet the TBT requirements for
publication of draft standards and technical regulations.  Kyrgyzstandard publishes a quarterlyperiodical entitled the Information Bulletin of Kyrgyzstandard where such notices will be published.
(ii) Under Resolution No. 12  of 6 January 1997, the Cabinet of Ministers of the Kyrgyz Republic
officially established the Information Center of the State Inspectorate on Standardization and
Metrology (Kyrgyzstandard) as the Inquiry Point for standards and sanitary and phytosanitary
measures in the Kyrgyz Republic.  This Inquiry Point meets WTO requirements.
It contains all adopted and proposed standards and conformity assessment procedures and
information concerning the membership and participation of the Kyrgyz Republic in regional andinternational standardizing bodies as well as in bilateral and multilateral arrangements.  The Inquiry
Point receives questions and sends responses by telephone, mail, fax and e-mail.  Notification to the
WTO of the establishment of this Inquiry Point is currently being prepared.WT/ACC/KGZ/16
Page 27
(iii) Kyrgyzstandard has hired employees, fluent in Russian and English, who will receive and
transmit information in English.
(iv) Certification requirements as well as the risks being addressed are set out in the standard of
the individual product.
(v) Attachment A provides the list of products requiring phytosanitary certificate, the list of
products requiring certificate of compliance, and the list of products requiring veterinary certificate.As for products subject to import and export licensing, a draft resolution on Import/Export Licensing
will be provided in April 1998.  The resolution contains two lists of products which will be subject to
import and export licensing.
Although the charges for veterinary certificates are value-based, they are way below the cost
of services rendered.  The current charges range from 30 Som to 500 Som.  Analysis provided in
Attachment A.III to WT/ACC/KGZ/13 indicates that the fees which should be charged to reflect the
cost of services rendered range from 250 Som to 3,272 Som depending on the level of effort.  Thatmeans the Kyrgyz Republic needs to increase fees ch arged for issuing veterinary certificate in order to
reflect the cost of services rendered.
(vi) If a change is made to the list of products that require mandatory certification, the new list
will be published and notification of the changes will be sent to the WTO Secretariat.  A grace period
will be provided to all countries on an MFN basis.  The Amendments to the Law on Standardizationinclude provisions which conform to TBT publications requirements.
(vii) According to Official Instructions issued  by the government of the Kyrgyz Republic,
certificates of accordance or certificates of quality that are issued by internationally known companies
or firms are accepted even where there is no bilateral or multilateral agreement.  A procedure of
acknowledgment for acceptance of international certificates is set out in government instructions.Please see Instruction "On Order of Acknowledgment of Foreign Certificate of Compliance" of
1 November 1996. (provided in Attachment C).
(viii) To the extent that resources will allow, Ky rgyzstandard will participate in international
standards activities.  The Kyrgyz Republic is currently a corresponding member of the ISO.  It is also
a member of the CIS Inter-Governmental Counci l on Standardization, Metrology and Certification.
This body is recognized by the ISO as a regional organization moving towards the eventual
implementation and usage of international standards.
(ix) The Law on Veterinary and the Law on Plant Quarantine are being amended to meet the
requirements of the SPS Agreement.  A law on Food Safety is currently being drafted and will meet
SPS requirements.
(x) We recognize the importance of establishing institutions and enacting WTO-consistent laws
to implement the TBT and SPS Agreements and are currently in the process of amending relevant
laws to ensure compliance.  Draft amendments to two relevant laws (the Law on Standardization and
the Law on certification) are provided in Attachment B.  Draft Amendments to two additional laws
(the Law on Plant Quarantine and the Law on Veterinary) will be provided in April 1998.  We have
also established inquiry point in conformity with TBT and SPS.WT/ACC/KGZ/16
Page 28
Question 52.
We consider that further efforts may be necessary to implement the TBT and SPS Agreements.
We would like to have information concerning the Enquiry Point. We would like to know the
plan to establish the Enquiry Points.
Answer:
The Enquiry Point for TBT and SPS has been established in KyrgyzStandard.
Question 53.
With regard to the Kyrgyz Republic’s phytosanitary certificate measures, we would like to
clarify which goods are subject to the phytosanitary certificate measures and the fee
corresponding to each individual goods subject to SPS measures.
Answer:
The list of goods subject to phytosanitary certificate along with corresponding fees is
provided to the WTO in Attachment A.
Question 54.
Regarding the Kyrgyz Republic’s veterinary certificate measures, we would like to clarify which
goods are subject to the veterinary certificate a nd the fee corresponding to each goods subject to
the measures.
Answer:
The list of goods subject to veterinary certificate along with fees is provided to the WTO in
Attachment A.
Question 55.
What is the time frame for the internal review pr ocesses referred to in these paragraphs and for
implementing adjustments that may be necessary to the SPS regime?  (Draft report, paragraphs84 and 86)
Answer:
The Law on Veterinary and the Law on Plant Quarantine are being amended (draft
amendments to both laws are being finalized and will be provided to the WTO no later than
April 1998) to meet the requirements of the SPS Agreement.  A law on Food Safety is currently beingdrafted and will meet SPS requirements.  See also reply to question 51 above.
(d) Trade Related Investment Measures (TRIMS)
Question 56.
The commitment needs to be made to bring all me asures into conformity with the requirements
of the TRIMs Agreement, rather than only one pi ece of legislation which is referred to in this
paragraph. (Draft report, paragraph 92)WT/ACC/KGZ/16
Page 29
Answer:
The only TRIMs inconsistent measures in the Kyrgyz Republic are those connected with Free
Economic Zones.  Amendments to the Law on Free Economic Zones will ensure the elimination of all
TRIMs inconsistent measures.  Draft amendments to this law are being finalized and will be provided
to the WTO in April 1998 (See Annex 1).
(f) Free zones
(g) Free economic zones
Question 57.
In WT/ACC/KGZ/10, the Kyrgyz Republic identified  specific incentives for firms in the Bishkek
Free Economic Zone providing  exemptions from lease payments for up to 15 years for
establishments which are (1) engaged in export-oriented and import substitution production
activities, (2) use domestic raw materials a nd spare parts, and (3) employ certain number of
people per year.  In addition, export-oriented production is exempt from quantitativerestrictions.
In its response to question 32, the Kyrgyz Republic acknowledged that these provisions were
violations of the WTO Agreement on Subsidies and Countervailing Measures and, in some
cases, the TRIMS Agreement, and that "appropriate legislation will be prepared during the
first half of 1998" to eliminate these WTO-inconsistencies.
Please give a status report on this effort.  How will the Kyrgyz Republic, in general, deal with
companies currently making use of these benefits and requirements?
We would appreciate a list of all such programs and Kyrgyz Republic's outline of how such
programs will be changed or eliminated.
We seek a commitment in the protocol addressing the WTO-consistent operation of the Bishkek
Free Economic Zone and other free zones after accession.
Answer:
Draft amendments to the Law on Free Economic Zones, addressing the elimination of all
WTO-inconsistent measures in connection with free economic zones, are being finalized and will be
provided to the WTO Secretariat in April 1998.  The Kyrgyz Republic will ensure that operation offree economic zones will be WTO-consistent after accession.  There are no additional programs to the
ones listed in the reply to question 32 of WT/ACC/KGZ/13.
The Kyrgyz Republic is currently finalizing its decision on how to deal with companies which
are currently operating in the zone and have received such benefits.  Such decision will be reflected in
the Amendments to the Law on Free Economic Zones.
Question 58.
As noted in the Subsidies section above, we would appreciate information from the Kyrgyz
Republic about how the requirements in the Bishkek Free Economic Zone for the use of
domestic raw materials and spare parts in ex ported products in return for reduced lease
payments would be eliminated.WT/ACC/KGZ/16
Page 30
Answer:
This will be implemented through amending  the Law on Free Economic Zones.  Draft
amendments to this law will be provided in April 1998.
(l) Government procurement
Question 59.
Concerning the Kyrgyz Energy Holding Company:  are its imports of power generation
equipment considered "government procurement"  or "state trade," i.e., does the Kyrgyz
Republic consider its purchases from abroad covered by Article XVII?
Answer:
Imports of power generation equipment by Kyrgyz Energy Holding Company are not
considered "state trade" and are not covered by Article XVII.  Such imports, however, may be
considered government procurement.
Article 2 of the Law on Government Procuremen t of 13 May 1997 states that the law shall
apply to procurement of goods, works, and services done partially or fully with the use of State budget
funds.  Article 1 of the Explanatory Notes (also have the force of law) of the Law on Government
Procurement defines state funds to include funds of enterprises established by the State (e.g. Kyrgyz
Energy Holding Company)
Question 60.
We remain interested in working with the Kyrgyz Republic to facilitate and expedite its
accession to the Government Procurement Agreement as soon as possible after accession.
What is the status of the establishment of  the Kyrgyz Government Procurement Agency?
Answer:
The Kyrgyz Government Procurement Agency was established in January 1997.
Question 61.
We hope that the Kyrgyz Republic will accede to the Government Procurement Agreement.
Answer:
As stated in previous communications to the WT O, the Kyrgyz Republic will consider joining
the Government Procurement Agreement in January 1999 (two years after the date of establishment ofthe Kyrgyz Government Procurement Agency).WT/ACC/KGZ/16
Page 31
4. Policies Affecting Trade in Agricultural Products
(b) Exports
Agricultural export subsidies
We applaud the commitment offered in the response to question 38 (WT/ACC/KGZ/13) for the
Kyrgyz Republic to bind its agricultural export subsidies at zero.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
As many of the initial questions were compound when submitted, for purposes of clarity they
have been severed which has resulted in a certain amount of paraphrasing.  Also, the questions were
based on the draft laws submitted to the WTO in 1997.  Since that time the Law on Patents, the Law
on Copyright and Neighbouring Rights and the Law on Trademarks have been  passed by Parliament
and signed into law.
2. Substantive standards of protection, incl uding procedures for the acquisition and
maintenance of intellectual property rights
Question 62.
Most of the sections conclude with a paragraph containing an untested statement made by the
Kyrgyz Republic that the law is consistent with TRIPs requirements. These paragraphs will
need to reflect a clear commitment to the provisi ons of the TRIPs Agreement, both in respect to
laws and to procedures/practices. Details on when the laws of the Kyrgyz Republic will fullyconform to the requirements of the TR IPs Agreement should be provided.
Answer:
The following TRIPs related laws were enacted recently:
(i) The Law On Copyright and Neighbouring  Rights (adopted by Parliament on
16 December 1997; signed by President on 14 January 1998; and went into force on23 January 1998)
(ii) The Law On Trademarks, Service marks and Appellation of Places of Origin (adopted by
Parliament on 16 December 1997; signed by President on 14 January 1998; and went into
force on 28 January 1998)
(iii) The Patent Law (adopted by Parliament on 16 December 1997; signed by President
14 January 1998; and went into force on 4 February 1998)
(iv) The Civil Code Part II (Section on Intell ectual Property) (adopted by Parliament on
5 December 1997; signed by President on 5 January 1998; and will go into force on
1 March 1998)
(v) The Criminal Code (Section on Intellectual Property) went into force 1 January 1998.
The Law on PC, Software Programs, and Database s, the Law on Integrated Circuits, and the
Law on Commercial secrets were adopted by th e Parliament on 2 March 1998 and are awaiting
President’s signature.  The Law on Selection Achievements is currently being reviewed by the
Parliament and is expected to be adopted by the Parliament in April 1998.WT/ACC/KGZ/16
Page 32
The Kyrgyz Republic, in drafting all aforementioned laws, took into account its accession to
the WTO and worked within the context of the TRIPs Agreement.
(a) Copyright and related rights
Law of the Kyrgyz Republic "On Copyright and Related Rights"
Question 63.
Explain the organization of Kyrgyzpatent Office (Article 3).
Answer:
See the following organizational chart.
Question 64.
Explain the use of the term "systems" as used  in Article 6 (4) of the Copyright Law and
distinguish the term as used in Article 7 (2).  They appear inconsistent  (Articles 6 and 7 ).
Answer:
Article 6(4) states that copyright shall not extend to: "ideas, procedures, methods, concepts,
principles, systems , proposed solutions, discoveries of objectively existing phenomena."  (Emphasis
added).
The term "systems", as used here, mirrors the use of the term in section 102(b) of the United
States Copyright Act.WT/ACC/KGZ/16
Page 33
On the other hand, the term operating systems  found in Article 7(1) of the enacted Copyright
Law merely codifies the principle that computer programs are protected by copyright provided, of
course, that the work meets the requirements of Article 6 of the law.  This principle that computer
software is treated as literary works was reaffirmed in the WIPO Copyright Treaty.
Question 65.
Clarify paragraph 3 of Article 16 relating to the resale of particular copies after they have been
published (Article 16 ).
Answer:
Paragraph 3 of Article 16 clearly provides, that  if copies of a lawfully published work have
been introduced into the economy through their sale, the further resale of these copies is allowed
without the agreement of the author and without payment of a copyright fee.
Article 16(3) states:  "If copies of a legitimately published work have been introduced into
civil circulation by means of sale, they may be further distributed without the consent of the authorand [without] payment of author's remuneration."
Question 66.
Clarify the charge for the use of certain public domain works (Article 28) .
Answer:
Article 3(3) of the Copyright Law provides: "In order to develop the culture of the Kyrgyz
Republic and promote creative activities of the authors, the State Intellectual Property Fund is being
established.  Regulation on the State Intellectual Property Fund shall be approved by Kyrgyzpatent."
This fund, established for the promotion of authors, will be financed by a fee charged for the
commercial use of all public domain works sold on the territory of the Kyrgyz Republic.
Article 28(3) provides: "The government of the Kyrgyz Republic shall establish the amount
of deductions paid to the State Intellectual Property Fund for the use of works transferred to the public
domain in the territory of the Kyrgyz Republic."
Question 67.
Are authors' agreements to be interpreted in accord ance with  the laws of the particular foreign
country under which they were made (Articles 30-33) ?
Answer:
Kyrgyz law recognizes choice of law provisions contained in authors' agreements.
Question 68.
Paragraph 4 of Article 36 of the Copyright Law used the registered symbol for trademarks for
performers' rights and rights of phonogram producers; clarify.WT/ACC/KGZ/16
Page 34
Answer:
The law uses the symbol that is the international symbol of the protection of related rights,
(i.e. (P)) not a ®.  There may have been a misprint in the earlier translation of the law.
Article 36(4) states: "No formalities are required for neighbouring rights to arise and be
exercised. The producer of a recording and performer, in order to announce their rights, have the right
to use the neighbouring rights protection sign which is affixed to each copy of such phonogram and/oron each case containing it and consists of three components: a Latin letter "P" in a circle ; the name of
the owner of exclusive neighbouring rights; and the y ear of the first publication of the recording."
(Emphasis added).
Law on the Protection of Computer Software
Question 69.
How does the Software Law modify the Copyright Law?  Specifically, Article 12 of the Law on
Software and Databases seems to conflict with Article 14 of the Copyright Law; which of these
provisions takes precedence (Article 12)?
Answer:
Article 12 of the software law states who owns the copyright  as between the employer and
the employee to those copyrightable elements contained in software and databases created by the
employee within the scope of his employment.   The  owner of the copyright is the employer unlesscontract provides otherwise.
Article 14 of the Copyright Law states that the employee is the owner of the non-economic
rights for works created by him within the scope of employment although the employer retains the
copyright in the work unless contract provides otherwise.  In accordance with Article 9 of the noted
Law, personal non-property [non-economic] rights rest with the author of the computer softwareprogram or the database with regard to his property [economic] rights.  There is no conflict between
these two principles.
(b) Trademarks, including service marks
Question 70.
Articles 19 and 20:  What entity is responsible  for ensuring that the qualitative or other
characteristic of the good using a collective mark is maintained?
Answer:
Collective marks are used by members of the organization in whose name the mark is
registered.  Consequently it is standard practice to require that the organization ensure that its
members comply with the prescribed standards regarding the use of the mark.
The monitoring of the qualitative characteristics of a product may be assigned, by agreement
of the Parties, to any of the legal entities that have registered the collective mark.  In addition,
compliance with qualitative characteristics of products is the responsibility of Kyrgyzstandard
(standard setting agency of the Kyrgyz Republic).WT/ACC/KGZ/16
Page 35
Question 71.
Who has standing to challenge the use of a collect ive mark on the basis that such standards are
not being met?
Answer:
Any interested third party has the right to dispute a collective trademark.
Question 72.
Article 24:  This article requires that a licensing agreement provide that the quality of the goods
is maintained; who enforces this requirement?
Answer:
Control of the quality of goods of the licensee is assigned to the licensor.  In the event  that
goods of the licensee are found not to conform with the requirements of the licensor, then, according
to the licensing agreement, the right to use the trademark can be cancelled.
Question 73.
What is the consequence of a determination that the quality of the goods is insufficient?
Answer:
The licensing agreement can be cancelled. Part two of Article 23 of the Law provides for the
obligation of the licensor to control compliance with the requirements on the quality of goods under
the licensing agreement.
Question 74.
What is the consequence of the failure of a licensor to monitor the licensee's goods?
Answer:
See answer above.
Question 75.
Article 36:  Does this article require that a Kyrgyz national first register a geographic indicator
with Kyrgyzpatent before applying for a foreign registration?
Answer:
This provision is now in Article 35 of the enacted Trademark Law.  Paragraph 2 of Article 35
provides:  "The application for registration of the appellation of place of origin of goods in foreigncountries shall be filed after its registration and obtaining the right to use that appellation of place of
origin of goods in the Kyrgyz Republic."
This requirement of the initial registration in the Kyrgyz Republic applies only to those
appellations of place of origin the sites of which is located in the territory of the Kyrgyz Republic.WT/ACC/KGZ/16
Page 36
(e) Patents
Law of the Kyrgyz Republic "On Patent Rights"
Question 76.
Article 3:  Explain what a "preliminary patent" means?
Answer:
A "preliminary patent" is a protective document granted for inventions and industrial designs.
It is valid for seven years after the preliminary examination is conducted to insure that the
patentability criteria are met based on the applicant's materials and a search of other valid applications
with earlier priority dates.
The Kyrgyz patent system has a two-stage procedure for examining and awarding patents.
First a preliminary examination is conducted  after which a preliminary patent  is granted.
Subsequently a second examination  is conducted wherein a patent  may be granted.
Question 77.
Why does Article 3 give patent owners the right to own, use and dispose of the invention,
industrial design and utility model, but not to prevent others from doing the same?
Answer:
Pursuant to paragraph 1 of Article 11 on the Rights of Patent Owner the patent-holder is
entitled to prohibit other parties from using one's objects of industrial property.
Article 11(1) provides: "The patent owner shall have the exclusive right to protection of  the
preliminary patent, patent for an invention, industrial design, utility model protected certificate
including the right to prohibit the use of these objects by other persons , except for the cases when
such use does not infringe the exclusive rights of the patent owner according to this Law."  (Emphasis
added).
Question 78.
Article 4:  Clarify the provisions regarding the terms and their extensions for patents and
industrial designs.
Answer:
Note the following terms apply:
- patent for an invention: 20 years
- preliminary patent for an invention: 7 years
- patent for an industrial design: 10 years (5 year extension)
- preliminary patent for an industrial design: 7 years
- certificate for a utility model: 5 years (up to a 3 year extension)WT/ACC/KGZ/16
Page 37
Article 4(2) through (5) provides: "The patent for an invention shall be effective within the
period of twenty years as of the date of f iling of an application with Kyrgyzpatent.
A certificate for a utility model shall be effective for five years as of the date of filing  an
application with Kyrgyzpatent.  At the request of the owner, Kyrgyzpatent may extend the effective
period of the certificate for a term not longer than three years.
A preliminary patent for an industrial design shall be effective for seven years as of the date
of submission of an application to Kyrgyzpatent.
Patent for an industrial design shall be effective for ten years as of the date of filing of an
application with Kyrgyzpatent. At the request of the patent owner, Kyrgyzpatent may extend the
effective term of the patent for an industrial design for a term not longer than five years."
Question 79.
Article 5:  Define "generally available" as it relates to the notion of "prior art".
Answer:
Pursuant to Article 5 (7), the notion of being "generally available" means being accessible to
the public by having been published or otherwise disseminated through print or electronic media as of
a certain date.
The principle of "prior art" corresponds to the to the notion of the level of technology
discussed in Article 5 and  accords with the general principle of prior art as that term is used in theUnited States.
Article 5 provides, in part: "An invention shall be considered new if it is not known from the
standard (i.e. level) of technology.
An invention shall be considered as having an inventive level if it does not obviously follow
from the standard (i.e. level) of technology.
The standard (i.e. level) of technology shall include any information, which has become
generally available  in the world before the priority date of the invention.
While establishing the novelty of an invention, the information on the standard of technology
shall include not withdrawn applications of other persons, submitted to Kyrgyzpatent with an earlier
priority, as well as inventions and utility models patented in the Kyrgyz Republic."  (Emphasisadded).
Question 80.
Concern: The grace period of six months is insufficient.
Answer:
The law provides for a twelve-month grace period for public disclosure of information
affecting the patentability criteria.  Article 5(7) states:WT/ACC/KGZ/16
Page 38
"No public disclosure of information shall be considered as affecting patentability if it was
made by the applicant, author or by any other person who obtained it from him directly, or
indirectly, under which the information about the substance of an invention became publicly
open not earlier than twelve months  before the date of filing of an application or before the
priority date if it is sought. The obligation of proof of this fact lies with the applicant."
(Emphasis added).
Article 5(7) provides for the 12 month deadline for disclosure of the information relevant to
protection ability of the invention.
Question 81.
Why does not the Patent Law provide for the patenting of integrated circuit layout designs?
Answer:
Legal protection of topography of integrated circuits is regulated by the provisions of the Law
on Legal Protection of Topography of Integrated Circuits.
TRIPS requires integrated circuit layout-designs to be protected according to the principles of
the Treaty on Intellectual Property in Respect of Integrated Circuits with certain modifications and
additional provisions.  The Kyrgyz Republic does this in a separate law which was adopted by the
Parliament on 2 March 1998.
Question 82.
Article 8:  What constitutes the inalienabl e "right of authorship" in an invention?
Answer:
The "right of authorship" referenced by the question is akin to the right of  attribution and as
such does not affect any of the economic rights to the object of intellectual property.  Article 1039(3)
of  the Civil Code states:
"The right of authorship (the right to be recogniz ed as the author of intellectual activity result)
shall be a personal non-economic right and may belong only to the person who created the
result of intellectual activity.  The right of authorship shall be inalienable and
non-transferable".
Question 83.
Article 9:  Does Article 9 imply that the empl oyee who produced the patented object would have
a right to license to others or to sell his right to others?
Answer:
If the author, in this case the employee, is the owner of the patent, then according to
Article 11 he has all exclusive rights, including the right to license.
Question 84.
Concern: The four-month period provided by the law for an employer to give notice is
insufficient.  The law also does not include the employer's right to file an application for itself'.WT/ACC/KGZ/16
Page 39
Answer:
This provision delineates the rights to inventions as between an employer and the
employee/inventor where the object was created within the scope of one's employment.
An object of industrial property is employment-related if it has been created in the course of
performance of one’s job obligations or tasks.
The law provides that the employer retains the right to file for a patent provided he takes one
of the following three actions within four months of being put on notice by the employee that an
object subject to patent has been created.  The employer must:
(i) file an application with Kyrgyzpatent;
(ii) reassign the right to another to obtain a protected document;  or
(iii) inform the author/inventor that the object of industrial property is to be kept secret.
If the employer fails to take one of the above actions within the prescribed four month period,
the employer’s  right to file for a patent shifts to the employee/creator.
Question 85.
Article 12:  Do the patent rights include the ri ght to prevent others from importing the patented
invention?
Answer:
The rights of the patent owner are stated in Article 11 of the enacted law.  Paragraph four
provides that  the patent owner has the right to  prohibit third parties from importing a product that
contains inventions protected by the preliminary patent or covered by a patent.
Article 11(4) states: "The manufacture, application, import , offer for sale, sale, any
introduction to the economic turnover or storage of a product for this purpose that contains an
invention, industrial design, protected by a preliminary patent, patent, certificate for the utility modelas well as exploitation of the method protected by a preliminary patent, patent for an invention shall
be considered as the exploitation of an object of industrial property."  (Emphasis added).
Question 86.
Explain the scope of your doctrine of equivalents.
Answer:
Paragraph 5 of Article 11 references the doctrine of equivalents.  It states that features are
equivalent if they are interchangeable in the solution of specific tasks , which coincide by the function
to be fulfilled and the result to be achieved  and which differ only in form of fulfilment  (i.e. by
construction, technology or material).  (Emphasis added).WT/ACC/KGZ/16
Page 40
Question 87.
Concern:  It is problematic that the burden of proof regarding products produced by patented
processes is on the defendant if the product involved is new.
Answer:
According to paragraph 8 of Article 11, there is a presumption that the new process violates
the existing patented process until proven otherwise.
Question 88.
Why must the assignments of patents be registered before they are considered valid?
Answer:
Registration of assignments is required so that an accurate record is maintained on the
ownership of patents.  The requirement for registration of agreements is provided for in Article 15 of
the law.  Paragraph 6 of Article 15 provides a special requirement for registering contract relations,
compliance with which is mandatory.  The need for the registration procedure for contracts ispreconditioned by specifics of the registration system of emergence and fixation of exclusive rights to
industrial property objects.  The temporary procedure [regulation] of registration of licensing
agreements, approved by the Head of the Patent Agency on 24 July 1995 provides for a one-month
registration deadline.  Currently, Kyrgyzpatent is developing a new regulation on registration of
licensing agreements, which will provide for shorter deadlines for licensing agreements registration incompliance with the established requirements.
Question 89.
Why can the registration of assignments not be voluntary, especially considering that patents
may be inherited without the need to be registered in order to be valid?
Answer:
Patents, which are inherited, are not required to be registered as assignments but the law does
require that the change in ownership be recorded.
Question 90.
Article 16:  Concern: Requiring licenses to be registered before they are deemed valid seems
inappropriate and delays the effective date between the parties.
Answer:
The estimated time in which to record a license at KyrgyzPatent is approximately four weeks.
TRIPS states in Article 40 that Members may take measures to ensure that license contracts
are not coerced or anti-competitive; it states in section 8:
"Nothing in this Agreement shall prevent Me mbers from specifying in their legislation
licensing practices or conditions that may in particular cases constitute an abuse of intellectual
property rights having an adverse effect on competition in the relevant market".WT/ACC/KGZ/16
Page 41
Question 91.
Article 24 and 25:  Concern: The two-month time period in which an applicant must provide
additional documents is too short to be practical.  The three-month time period in which to
appeal is too short as to be practical.
Answer:
The two-month deadline for provision of the ch anged and missing materials at request of the
preliminary expertise body and appealing the decision to refuse in issuance of the preliminary patent
are provided for in Article 23 of the Law, and the two-month deadline for responding to a substantive
request of the expertise body for provision of additional materials and the three-month deadline for
objecting to the decision to refuse in issuance of the patent are provided for in Article 24 of the Law.
Calculation of the listed deadlines starts from the date of receiving the request and the decision
accordingly.
Question 92.
Article 34:  Are foreigners entitled to the spec ial benefits referenced by these articles on the
same basis as nationals?
Answer:
Yes they are.
Question 93.
Article 36:  Describe the jurisdiction al structure of the Kyrgyz courts.
Answer:
The Kyrgyz judiciary system includes: the Constitutional court, courts of general jurisdiction,
courts of arbitrage, military court and courts of aldermen.
The highest judiciary body is the Constitutional co urt. It is tasked with ensuring compliance
of all legal acts developed and adopted in the republic with the Constitution and constitutional
legislation.
Courts of general jurisdiction hear both criminal and civil cases. They hear cases where the
parties to a dispute involve either individuals, or individuals and legal entities. However, within the
courts of general jurisdiction system there are collegians of judges which specialize on consideringand adjudicating either criminal or civil cases.
Courts of general jurisdiction have three levels: rayon, blast (city of Bishkek) and the
Supreme Court.  Courts of arbitrage settle disputes exclusively between legal entities. They also have
three levels: rayon, oblast (city of Bishkek) and the Supreme Court of Arbitrage.
If a there is an issue involving intellectual property dispute, then it must be settled through a
court, as any other dispute, after all means of internal relief have been exhausted.WT/ACC/KGZ/16
Page 42
Question 94.
Article 41:  Are international treaties self-executing and therefore directly applicable before the
Kyrgyz Courts upon ratification?
Answer:
According to Article 12 section 3 of  the Constitution of  the Kyrgyz Republic, if an
international treaty to which the Kyrgyz Republic has acceded has been ratified by Parliament, itbecomes part of Kyrgyz Republic legislation.  In the event the treaty conflicts with any domestic legal
act, the treaty prevails.  This principle is stated in Article 40 of the enacted Patent Law.
Article 12 (3) of the Constitution states: "International treaties and other norms of
international law that have been ratified by the Kyrgyz Republic shall be a component and directly
applicable part of legislation of the Kyrgyz Republic."
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH
THIRD COUNTRIES
2. Economic integration, customs union and free-trade area agreements
Question 95.
Further information is required on the Customs Union between the Kyrgyz Republic,
Kazakstan, Belarus and Russia.  (Draft report, paragraphs 149-151 )
Answer:
Currently consultants of all countries - participants of the Customs Union Agreement,  are
negotiating multilateral consultations on the common customs tariff, on the principle of imposing
taxes for import and export.
Based on the fact that creation of the common territory is a complicated and long process
countries-members of the Agreement have made a decision to join WTO independently and they havegiven the priority to this issue.
Every country is conducting such negotiations with WTO independently.
4. Multilateral economic cooperation, membership in the multilateral economic
organizations, trade-related programmes of other multilateral organizations
Question 96.We understand that the Kyrgyz Republic is going to join the WCO. We would appreciate
further information on the joining to the WCO.
Answer:
The Kyrgyz Republic signed an agreement on joining the World Customs Organization in
December 1996.  However, the ratification was delayed until February 1998 due to other budgetarypriorities.  In February 1998, ratification documents were forwarded to Brussels for submission to the
World Customs Organization.WT/ACC/KGZ/16
Page 43
Question 97.
We seek the Kyrgyz Republic's membership in the Civil Aircraft Code and the elimination of
duties on imports of aircraft and their parts.
Answer:
The Kyrgyz Republic does not plan to join the Civil Aircraft Code.
Transparency
Question 98.
More information should be provid ed on the laws being drafted to  ensure transparency of trade
regulations.  (Draft report, paragraph 148 )
Answer:
Amendments to the Law on Normative Acts and Amendments to the Law on Publication of
Laws have been drafted to ensure transparency of trade laws and regulations and have been submitted
to the WTO Secretariat.
Question 99.
We seek a specific commitment, based on new laws, that the Kyrgyz Republic will publish all
information relevant to trade, in accordance with the provisions of Article X of the GATT and
other transparency provisions of the WTO.
Answer:
Draft amendments to the Law on Normative Acts and draft amendments to the Law on
Publication of Laws are provided in Attach ment B (Draft Law on Introducing Changes and
Amendments to Some Legislative Acts of the Ky rgyz Republic) address this issue.  The Kyrgyz
Republic will comply with the provisions of Article X of the GATT 1994 and other transparency
provisions of the WTO.WT/ACC/KGZ/16
Page 44ANNEX I
Commitments of the Kyrgyz Republic on Bringing its Legisl ation into Conformity with WTO Norms and Requirements
Draft Law Status Date of submission to WTO
1. Law on Anti-dumping At Parliament for approval Last draft was provided in October 1997.  An updated draft is
provided in Attachment B
2. Law on Subsidies and Countervailing Measures At Parliament for approval Last draft was provided in October 1997.  An updated dr aft is
provided in Attachment B
3. Law on Safeguard Measures At Parliament for approval Last draft was provided in October 1997.  An updated draft is
provided in Attachment B
4. Law on PC, Software Programmes and Databases Adopted by Parliament on 2 March 1998.
Awaiting President's signature.Draft was provided in September 1997.  A copy of the law will
be provided after President's signature.
5. Law on Integrated Circuits Topography Adopted by Parliament on 2 March 1998.
Awaiting President's signature.Draft was provided in September 1997.  A copy of the law will
be provided after President's signature.
6. Law on Commercial Secrets Adopted by Parliament on 2 March 1998.
Awaiting President's signature.Draft was provided in September 1997.  A copy of the law will
be provided after President's signature.
7. Law on Selection Achievements Being reviewed by Parliament. Provided in September 1997
8. Amendments to the Law on Standardization Being approved by the Government. Provided in Attachment B.
9. Amendments to the Law on Certification Being approved by the Government. Provided in Attachment B.
10. Regulations on Import/Export Licensing Being approved by the Government. Will be provided in April 1998.
11. Amendments to the Customs Code Being approved by the Government. Provided in Attachment B.
12. Amendments to the Law on Free Economic Zones Being a pproved by the Government. Will be provided in April 1998.
13. On Introducing Changes and Amendments to
some Legislative Acts of the Kyrgyz Republic(includes Amendments to the Law on NormativeActs and Amendments to the Law on Publicationof Laws)Being approved by the Government. Provided in Attachment B.
14. Amendments to the Tax Code Being approved by the Government. Will be provided in April 1998.
15. Amendments to the Law on Veterinary Being approv ed by the Government. Will be provided in April 1998.
16. Amendments to the Law on Plant Quarantine Being appr oved by the Government. Will be provided in April 1998.WT/ACC/KGZ/16
Page 45ANNEX II
List of Specific Goods Exported under Licenses contai ned in the Draft Resolution on Import/Export Licensing
Goods HS Code Rationale/Justification
1. Alive animals 010600990 (wild birds introduced in the Red Book1 ) To protect wild birds provided for in the Red Book
2. Pharmaceutical raw materials of vegetable
origin1201 ( aconit, St. John’s wort, liquorice, sweetbrier,
sea-buck-horn, radiola, malt, thermopsis, ephedra)
1301 (raw mumie)1302 (malt - juice and extract)To protect flora
3. Ciphering devices ( including ciphering
equipment, spare parts for the ciphering
equipment, packages of ciphering programs),normative and technical documentation tothe ciphering devices (including constructionand exploitation)8471 (ciphering equipment only),
847330000 (for the ciphering equipment only),
854380900 (ciphering equipment only), 854390900(ciphering equipment only)To maintain the national security of this Republic
4. Arms and military equipment, special
assembling articles for production, works
and services in the sphere of
military-technical cooperationby the list of the Ministry of Defense of the Kyrgyz
RepublicTo maintain the national security of this Republic
5. Means of protection from combat poisonous
gas, parts and accessories thereofby the list of the Ministry of Defense of the Kyrgyz
RepublicTo maintain the national security of this Republic
6. Military uniform, wear and attributes thereof by the list of the Ministry of Defense of the Kyrgyz
RepublicTo maintain the national security of this Republic
                                                     
1 This is a list of extinct flora and fauna stat utory protected.  [translator’s explanatory note]WT/ACC/KGZ/16
Page 46Goods HS Code Rationale/Justification
7. Normative and technical documents to the
military products (construction and
exploitation)by the list of the Ministry of Defense of the Kyrgyz
RepublicTo maintain the national security of this Republic
8. Devices for the combat actions, ammunition 9306 (torpedo, cartridg es, and other ammunition) To maintain the national security o f this Republic
9.  Gun powder and explosives, explosive
devices and pyrotechnics3601 (except for the hunting powder), 3602, 3603, 3604 To maintain the national security of this Republic
10. Nuclear materials, technologies, equipment
and plants, special non - nuclear materials,sources for the radioactive emanation,including radioactive wasteIn accordance with the list passed by the President of the
Kyrgyz Republic (Resolution No. 55, 2 June 1996,Government of the Kyrgyz Republic)To maintain the Republic’s national security, as well as to
adhere to international commitments related tonon-proliferation of mass destruction and productiontechnologies thereof
11. Materials, equipment and technologies of
peace purposes but can not be used whilecreating weapons for mass destructionby the list passed by the President of the Kyrgyz Republic
(Resolution No. 55, 2 June 1996, Government of theKyrgyz Republic)To maintain the Republic’s national security, as well as to
adhere to international commitments related tonon-proliferation of mass destruction and productiontechnologies thereof
12. Certain types of raw materials, equipment,
technologies and scientific informationwhich may be used in production on farmsand military technicsby the list passed by the President of the Kyrgyz Republic
(Resolution No. 55, 2 June 1996, Government of theKyrgyz Republic)To maintain the Republic’s national security, as well as to
adhere to international commitments related tonon-proliferation of mass destruction and productiontechnologies thereof
13. Precious metals, alloys, goods made from
them, metals plated with precious metals andgoods made from them; ores; concentrates;scraps and wastes2616 (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 preclude the exhaustion of exhaustible natural
resources, to protect the financial position and maintainthe balance of payment of this Republic
14. Precious stones, and articles thereof;  powder
and recuperate of precious natural stones,and articles thereof7101, 7102, 7103 (precious stones only), 7105 (natural
precious stones only), 7116 (natural precious stones only)To preclude the exhaustion of exhaustible natural
resources, to protect the financial position and maintainthe balance of payment of this RepublicWT/ACC/KGZ/16
Page 47Goods HS Code Rationale/Justification
15. Collection materials on mineralogy and
palaeontology, semiprecious stones and
goods made from them970500000 (on mineralogy and palaeontology),
710310000 (semiprecious stones only), 711620110,
711620190 (from semiprecious stones only), 9706
(antique)To prevent cultural valuables from illegal export and
transfer of ownership thereof
16. Waste and scrap non-ferrous metals 7404, 7503, 7602, 7802, 7902, 8002, 8101-8112 To protect object of communications and power  supply
against plundering
17. Information on subsoil of the Kyrgyz
Republicby the list of the State Agency on Geology and Mineral
Resources under the Government of the Kyrgyz RepublicTo maintain the national security of this Republic
18. Narcotic and psychotropic substances,
virulent poisonsby the list compiled by the State Commission on Control
of narcotics under the Government of the KyrgyzRepublicTo protect the population’s health and welfare
19. Virulent poisons by the list compiled by the Ministry of Healthcare of the
Kyrgyz RepublicTo protect the population’s health and welfare, as well as
those of flora and fauna in general
20. Hazardous waste by the list of the Basil Convention on the Control over
Trans-border Transportation of hazardous cargo of22 March  1989 approved by Resolution of the Parliamentof the Kyrgyz Republic on 18 January 1996, No. 304-1To protect the population’s health and welfare, as well as
those of flora and fauna in general
21. Pharmaceuticals by the list of the Ministry of Health of the Kyrgyz
RepublicTo protect the population’s life and welfare from
uncontrolled use of medications containing narcotics
22. Service and civil guns by the list of the Ministry of Internal Affairs of the
Kyrgyz RepublicTo maintain public order
23. Tobacco by the list of SJSC Kyrgyztamakesi To protect the financial position and to maintain the
balance of payment of this Republic and to protect thepopulation’s health.
24. Spirits and alcoholic products by the list of SJSC Kyrgyzalco To protect the financial position and to maintain the
balance of payment of this Republic and to protect the
population’s health.WT/ACC/KGZ/16
Page 48List of Specific Goods Imported under Licenses containe d in the Draft Resolution on Import/Export Licensing
Goods HS Code Rationale/Justification
1. Ciphering devices ( including ciphering
equipment, spare parts for the  cipheringequipment, ciphering programs), normativeand technical documents to the cipheringdevices (including designing and exploiting)8471 (ciphering equipment only),
847330000 (for the ciphering equipment only),854380900 (ciphering equipment only), 854390900(ciphering equipment only)To protect this Republic’s national security
2. Arms and weapons, specific parts for their
production, works and services in the area ofmilitary - technological cooperationby the list of the Ministry of Defense of the Kyrgyz
RepublicTo protect this Republic’s national security
3. Protection devices from the battle poisoning
substances, parts and accessories thereofby the list of the Ministry of Defense of the Kyrgyz
RepublicTo protect this Republic’s national security
4. Military uniform, clothing and attributes by the list of the Ministry of Defense of the Kyrgyz
RepublicTo protect this Republic’s national security
5. Normative and technical documents to the
military products (construction and
exploitation)by the list of the Ministry of Defense of the Kyrgyz
Republic To protect this Republic’s national security
6.  Gun powder and explosives, explosive
devices and pyrotechnics3601 (except for the hunting powder), 3602, 3603, 3604 To protect this Republic’s national security
7. Nuclear materials, technologies, equipment
and plants, special non - nuclear materials,sources for the radioactive radiation,
including radioactive wasteby the list approved by the President of the Kyrgyz
Republic (Resolution No. 55, 2 June 1996,  theGovernment of the Kyrgyz Republic)To maintain the Republic’s national security, as well as to
adhere to international commitments related tonon-proliferation of mass destruction and production
technologies thereofWT/ACC/KGZ/16
Page 49Goods HS Code Rationale/Justification
8. Materials, equipment and technologies which
are intended for peaceful purposes but can
not be used while creating weapons for mass
exterminationIn accordance with the list passed by the President of the
Kyrgyz Republic (Resolution No. 55, 2 June 1996, the
Government of the Kyrgyz Republic)To maintain the Republic’s national security, as well as to
adhere to international commitments related to
non-proliferation of mass destruction and production
technologies thereof -
9. Certain types of raw materials, equipment,
technologies and scientific information
which can be applied while creating weapons
and military techniquesby the list approved by the President of the Kyrgyz
Republic (Resolution  No. 55, 2 June 1996, the
Government of the Kyrgyz Republic)To maintain the Republic’s national security, as well as to
adhere to international commitments related to
non-proliferation of mass destruction and production
technologies thereof
10. Precious metals, alloys, goods made from
them, metals plated   with precious metals
and goods made from them; ores;concentrates; scrap and waste2616 (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 conductorsfrom precious metals), 960810300, 960839100To protect the financial position and the balance of
payment of this Republic
11. Precious natural stones and goods from
them, powder and recuperate  of precious
natural stones, goods from them.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
payment of this Republic
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 welfare
13. Virulent poisons by the list approved by the Government of the Kyrgyz
Republic (Resolution of the Government of the KyrgyzRepublic of 6 February 1996, No.  55)To protect the population’s life and welfare, as well as
flora and fauna in general
14. Hazardous wastes by the list of the Basil Convention on the Control over
Trans-border Transportation of hazardous cargo of22 March  1989, approved by Resolution 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 fauna in generalWT/ACC/KGZ/16
Page 50Goods HS Code Rationale/Justification
15. Chemical means of protection of plants 3808 (preparations for the plant protection only) To protect the population’s life and welfare, as well as
flora and fauna in 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 financial position and maintain the balance
of payment of this Republic
19.  Spirits and alcoholic products by the list of the State Joint Stock Company "Kyrgyzalco" To protect the financial position an d maintain the balance
of payment of this RepublicWT/ACC/KGZ/16
Page 51
ATTACHMENT A
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 63.8
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
AuctioningSale through auctionsSale through tendersGratis transfersDirect sale to private entities
Direct sale to labour collectives (bodies)
Incorporation (Joint-Stock Companies)8
400
1612
1
18
49
27
Consumer Services Lease with subsequent buy-out
AuctioningSale through auctionsSale through tendersDirect sale to private entities
Direct sale to labour collectives (bodies)
Incorporation (Joint-Stock Companies)17
36
170529717
440
8
Non-production sector Lease with subsequent buy-out
AuctioningSale through auctionsSale through tendersDirect sale to private entities
Direct sale to labour collectives (bodies)
Incorporation (Joint-Stock Companies)2
277
30
8
41
28
48WT/ACC/KGZ/16
Page 52
Sector Privatization Mode Number of Privatized
Objects
Trade and public catering Lease with subsequent buy-out
AuctioningSale through auctions
Sale through tenders
Direct sale to private entitiesDirect sale to labour collectives (bodies)Incorporation (Joint-Stock Companies)41
213151
581
307549
52
Agriculture Lease with subsequent buy-out
AuctioningSale through auctionsSale through tenders
Direct sale to private entities
Direct sale to labour collectives (bodies)Incorporation (Joint-Stock Companies)4
128
61
30
177
8
Construction Lease with subsequent buy-out
AuctioningSale through auctionsSale through tendersDirect sale to private entities
Direct sale to labour collectives (bodies)
Incorporation (Joint-Stock Companies)2
298
11
3
13
69
22
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 auctionsSale through tendersDirect sale to private entitiesDirect sale to labour collectives (bodies)
Incorporation (Joint-Stock Companies)24
151
7728
171193
28WT/ACC/KGZ/16
Page 53
Table 3:  List of Goods Requi ring Phytosanitary Certificate
HS Code Cost of the Phytosanitary Certificate (Som)
0106 00 990 116.0
0601 171.0
0602 171.0
0603 116.0
0604 116.0
0701 10 201.0
0701 90 200.0
0702 200.0
0703 10 200.0
0703 10 110 249.0
0703 10 190 200.0
0703 20 000 200.0
0703 90 000 200.0
0704 200.0
0705 200.0
0706 200.0
0707 200.0
0708 200.0
0709 200.0
0712 122.0
0712 90 110 214.0
0713 200.0
0713 10 110 214.0
0713 10 190 214.0
0713 20 100 214.0
0713 31 100 214.0
0713 32 100 214.0
0713 33 100 214.0
0713 39 100 214.0
0713 40 100 214.0
0713 50 100 214.0
0713 90 100 214.0
0714 20 100 200.0
0801 164.0
0802 164.0
0803 200.0
0804 200.0
0805 200.0
0806 200.0
0807 200.0WT/ACC/KGZ/16
Page 54
HS Code Cost of the Phytosanitary Certificate (Som)
0808 200.0
0809 200.0
0810 200.0
0813 122.0
0901 164.0
0904 122.0
0905 122.0
0906 122.0
0907 122.0
0908 122.0
0909 122.0
0910 122.0
1001 164.0
1001 10 100 214.0
1001 90 100 214.0
1001 90 910 214.0
1002 164.0
1003 164.0
1003 00 100 214.0
1004 164.0
1004 00 100 214.0
1005 164.0
1005 10 214.0
1006 164.0
1006 10 100 214.0
1007 164.0
1007 00 100 214.0
1008 164.0
1101 164.0
1102 164.0
1103 164.0
1104 164.0
1105 164.0
1106 164.0
1107 164.0
1201 164.0
1201 00 100 214.0
1202 10 100 214.0
1204 00 100 249.0
1205 00 100 249.0
1206 00 100 249.0
1207 249.0
1208 129.0
1209 249.0
1210 122.0WT/ACC/KGZ/16
Page 55
HS Code Cost of the Phytosanitary Certificate (Som)
1211 122.0
1212 164.0
1212 91 200.0
1212 92 200.0
1213 129.0
1214 129.0
1301 122.0
1401 129.0
1402 129.0
1403 129.0
1404 129.0
1801 164.0
1903 129.0
2102 20 116.0
2302 129.0
2304 129.0
2305 129.0
2306 129.0
2308 129.0
2401 129.0
3002 116.0
3101 108.0
3821 116.0
4101 115.0
4102 115.0
4103 115.0
4110 115.0
4401 115.0
4403 115.0
4407 115.0
4409 115.0
4415 29.0
4601 29.0
4701 29.0
5001 129.0
5003 129.0
5007 90 129.0
5101 115.0
5102 115.0
5103 115.0
5201 129.0
5202 129.0
5203 129.0
5301 129.0
5302 129.0
9705 116.0WT/ACC/KGZ/16
Page 56
Table 4:  List of Goods Requiring Veterinary Certificate
HS Codes HS Codes
0101 1213
0102
0103 1501
0104 1502
0105 1503
0106 1504
1505
0201 1516 10
0202 1517
0203 1521 90 100
0204
0205 1601
0206 1602
0207 1604
0208 1605
0209
0210 1901 10 000
0301 2301
0302 2302
0303 2303
0304 2304
0305 2305
0306 2306
0307 2308
2309
0401
0402 3002 30 000
0403 3501
0404 3502
0405 3503
0406
0407 4101
0408 4102
0409 4103
0410 4301
0502 5001 00 000
0503 5101
0504 5102
0505 5103
0506
0511 9705WT/ACC/KGZ/16
Page 57
Table 5:  Fees Levied for Issuance of Veterinary Certificates
Value of Goods, Cargo Tariffs Amounts in Soms
Under 10,000.0 Soms 30.0 Soms 30.0
From 10,000.0 to
50,000.0 Soms30.0 Soms+0.3% of the amount in excess
of 10,000.0 Soms30.0-150.0
From 50,000.0 to
100,000.0 Soms150.0 Soms+0.2% of the amount in excess
of 50,000.0 Soms150.0-250.0
From 100,000.0 to
200,000.0 Soms250.0 Soms+0.1% of the amount in excess
of 200.0 Soms250.0-350.0
From 500,000.0 Soms and over 500 Soms and over 500.0
Table 6:  List of Goods Requiring Certification of Compliance
HS Codes HS Codes HS Codes
0131 0801 1507
0802 1508
0201 0803 1509
0202 0804 1510
0203 0805 1511
0204 0806 1512
0205 0807 1513
0206 0808 1514
0207 0809 1515
0208 0810 1516
0209 0811 1517
0210 0812
0813 1601
0301 0814 1602
0302 1603
0303 0901 1604
0304 0902
0305 0904 1701
0306 0905 1702
0307 0906 1704
0907
0401 1801
0402 1001 1802
0403 1002 1803
0405 1003 1804
0406 1004 1805
0407 1005 1806
0409 1006WT/ACC/KGZ/16
Page 58
HS Codes HS Codes HS Codes
1007 1901
0701 1008 1902
0702 1903
0703 1107 1904
0704 1102 1905
0705 1103
0706 1104 2001
0707 1105 2002
0708 1106 2003
0709 1107 2004
0710 1108 2005
0711 2006
0712 1501 2007
0713 1502 2008
0714 1504 2009
2101 4412 8309
2102 8311 10
4803 00
2103 4805 40 000 8404
2104 8418
2105 5208 8418 50
 5211 8422
2106 5309 8429
8430 20 000
2201 6107 8436 10 100
2202 6108 8438
2203 6109 8438 50 000
2204 6111 10 900 8445
2205 6111 20 900 8446
2206 6112 8450
2208 6115 11 000 8452
2209 6115 12 000 8458
6115 19 100 8459 10 000
2301 6115 19 900 8459 59 000
6115 91 000 8460
2401 6115 92 000 8462
2402 6115 93 000 8462 21
2403 6115 93 990 8462 21 100
8462 31 100
2501 6207 8462 91 100
6208 8465
3102 6209 8465 92 000
6211 11 000 8465 95 000
3301 8465 99 100
3302 6403 8470WT/ACC/KGZ/16
Page 59
HS Codes HS Codes HS Codes
3303 00 6404 8471
3304 6405 8472
3305
3306 6506 8501
3307 20 000 8502
6911 8504
3401 6912 8507
3402 8508
3403 19 910 7223 8508 20
 8508 80
3706 7311 8509
7321 8510
3808 8516
7418 8517
4011 8518
4014 7615 8519
4015 8520
8206 8521
4410 8206 10 8522
8527
8528 8708 10 9207
8529 8708 21
8531 8708 31 9006
8532 8708 70 9020 00 900
8535 8708 80 9021
8536 8708 92 9022
8540 8708 94
8544 8711 9303 20 100
8712 00 9303 20 300
8701 8715 00 9303 30 110
8701 90 8716 9303 30 190
8702 10 9304 00 000
8702 90 8903 9306 10 000
8703 10 9306 21 000
8703 21 9001 40 100 9306 30 930
8703 22 9004 90 000
8703 23 9007 9401
8703 24 9008 9403
8703 31 9009 9405
8703 32 9018
8703 33 9019 9503
8704 21 9019 20 000 9504
8704 22
8704 23 9030 9725
8704 31
8704 32  9105WT/ACC/KGZ/16
Page 60
ATTACHMENT B
Draft Laws and Draft Amendments to Laws
1. The Law on Anti-Dumping2.  The Law on Subsidies and Countervailing Measures
3.  The Law on Safeguard Measures
4. The Law on Introducing Changes and Amendments to some Legislative Acts of the Kyrgyz
Republic (includes Amendments to the Law on Normative Acts and Amendments to the Law on
Publication of Laws)
5.  The Law on Standardization with Draft Amendments Incorporated
6.  The Law on Certification of Goods and Se rvices with Draft Amendments Incorporated
7.  The Law on Making Amendments and Supplements to the Customs Code of the Kyrgyz
Republic.WT/ACC/KGZ/16
Page 61
ATTACHMENT C
Recently Enacted Laws
1.  The Law on Copyright and Neighbouring Rights2.  The Law on Trademarks, Service Marks and Appellation of Places of Origin of Goods
3.  The Law on Patent
4.  The Civil Code Part II (Section on Intellectual Property)5.  The Criminal Code (Section on Intellectual Property)
6.  The Law on Protection of Consumer Rights
7.  The Law on Bankruptcy
8.  The Law on Changes and Amendments to Part I of the Civil Code of the Kyrgyz Republic
9. Instruction "On Order of Acknowledgment  of Foreign Certificate of Compliance"
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