RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/KAZ/37
1 October 2002
(02-5266)
Working Party on the
Accession of KazakhstanOriginal:  English
ACCESSION OF KAZAKHSTAN
Additional Questions and Replies
The Ministry of the Economy and Trade of the Republic of Kazakhstan has submitted the
following replies to the additional questions submitted by Members.  The replies are reproduced
hereunder.
_______________WT/ACC/KAZ/37
Page i
II. ECONOMY, ECONOMIC PO LICIES AND FORE IGN T RADE ......................................1
2. Economic Policies........................................................................................................... ...........1
(a) Main directions of the ongoing economic policies..................................................................1
III. FRAMEWORK FOR MA KING AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES ...........................................3
IV. POLICIES AFFECTIN G TRADE IN GOODS .....................................................................7
1. Import Regulation............................................................................................................ .........7
(a) Registration requirements fo r engaging in importing...........................................................7
(d) Other duties and charges................................................................................................... .....11
(e) Quantitative impo rt restrictions............................................................................................ 12
(h) Customs Valuation.......................................................................................................... ........16
(i) Other custom s formal ities ................................................................................................... ...17
(j) Pre-shipment  inspect ion ..................................................................................................... ....18
(k) Application of internal taxes on imports ..............................................................................18
(l) Rules of  origin ............................................................................................................ .............20
(m) Anti-dumpi ng regime ........................................................................................................ .....21
(n) Countervailing duty regime ................................................................................................. ..21
(o) Safeguard regime ........................................................................................................... .........21
2. Export Regulation............................................................................................................ .......21
3. Internal Policies Affectin g Foreign Trade in Goods............................................................22
(a) Industrial policy ........................................................................................................... ...........22
(b) Technical regulations and standards ....................................................................................23(c) Sanitary and phytosanitary measures...................................................................................27
(d) Trade-related inve stment measures ......................................................................................28
(e) State-trad ing practices .................................................................................................... .......30
(f) Free zones .................................................................................................................. ..............30
(g) Free econom ic zones ........................................................................................................ .......30
(l) Government procurement practices .....................................................................................32
V. TRADE-RELATED INTELLECT UAL PROPERTY  RIGHTS........................................32
VII. INSTITUTIONAL BASIS FOR TRADE AND ECONOMIC RELATIONS
WITH THIRD COUNTRIES ................................................................................................32
1. Bilateral or Plurilateral Agreements Relating to Foreign Trade in Goods and
Trade in Services.............................................................................................................. .......32
APPENDI X 1..................................................................................................................... ...................34
APPENDI X 2..................................................................................................................... ...................37WT/ACC/KAZ/37
Page 1
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic Policies
(a) Main directions of the ongoing economic policies
As previously noted, we appreciate Kazakhstan's willingness, noted in its response to Question 1
in KAZ/11, to undertake a commitment to additional transparency as its privatization andreform programs proceed.
Question 1
We appreciate the information on privatization provided in WT/ACC/KAZ/22 and 30.  We
would also appreciate updated information on the enterprises that remain unprivatized.  What
portion of output and trade in the sectors list ed in WT/ACC/KAZ/22 and 30 is accounted for by
state owned enterprises.
Answer:
Pursuant to the paragraph 3.1. of Branch program of raising the efficiency of management of
state property and privatization for 2001-2002, adopted by the Resolution of the Government of the
Republic of Kazakhstan of 27 June 2001 No.880 (hereinafter referred to as – Branch program), as of
1 January 2001  the block of shares (shares of the participation) of 280 stock companies and economic
partnerships were in the Republican ownership,  block of shares (shares of the participation) of 760stock companies and economic partnerships were in the municipal ownership.
Pursuant to 3.2. of the Branch program as of 1 January 2001 the total number of the
Republican state enterprises made up 517 enterprises, including 182 enterprises being entitled to
economic management,  335 enterprises being entitled to operative management.  And as of this date
the total number of  state public utility enterprises made up 4,625, including enterprises being entitledto economic management - 792 enterprises, and the enterprises being entitled to operative
management – 3,833.
At the same time, by the Resolution of the Government of the Republic of Kazakhstan of
17 June 2000 No.912 the List of the Republican state enterprises and institutions, subject to
privatization in 2000-2001, is approved.
In addition, with a  view of  state regulation of the activity of organization and objects, having
specific significance for strategic interests of the Republic of Kazakhstan, by the Decree of the
President of the Republic of Kazakhstan of 28 July 2000 No.422 (hereinafter referred to as – the
Decree No. 422) the List of the objects, not subjec ting to privatization and its preliminary stages, is
approved.
We also inform, that for execution of the Decree No.422 by the Resolution of the Republic of
Kazakhstan of 24 October 2000 No.1587 the following lists were approved:
− objects of state ownership, not subjecting to privatization;
− objects of state ownership, not subjecting to privatization, as well as to its preliminary
stages till 2003;
− stock companies, shareholdings of which do not subject to privatization, as well as to its
preliminary stages till 2003.WT/ACC/KAZ/37
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- Pricing policy
Question 2
Kazakhstan has stated that state price co ntrol only exists for "heat and water".
Does Kazakhstan control or influence the price of electricity, natural gas. Or other forms of
energy offered to domestic firms?
Do any industries or firms have access to electricity, natural gas, or other forms of energy at
prices below those applied to sales to other domestic firms? To exports? If so, please describe
the differences.
We thank Kazakhstan for its commitment, that from  the date of accession, the price controls in
place and any applied in the futu re will be applied in a WTO-consistent fashion, taking account
the interests of exporting WTO members as provided for in Article Ш:9 of the GATT 1994, and
that Kazakhstan publishes the list of goods and services subject to state price controls in itsOfficial Gazette, and any changes to those controls.
Answer:
In the Republic of Kazakhstan the prices are regulated only on the products of natural
monopoly.
Pursuant to the amendments entered into the Law of the Republic of Kazakhstan "On natural
monopolies" (hereinafter referred to as – the Law), which is under the consideration of the Parliament
of the Republic of Kazakhstan,  the following kinds of activity are referred to the sphere of natural
monopolies:
− transportation of oil and (or) oil products via main pipelines;
− production of oil products;
− storage, transportation of gas or gas condensate via main and (or) distribution pipelines,
exploitation of gas-distribution equipment and related to it gas-distribution gas-lines;
− power transmission and (or) power distribution;
− power production by heating boiling stations with combined kind of production;
− technical dispatching control services of lines and power consumption;
− services on railway main  and access lines;
− air navigation services, ports, airports;
− telecommunication services with the use of local lines network;
− aquacultural and (or) sewer systems services; and
− generally accessible post communication services.
Changes of tariffs on natural monopolies' subjects services  are applied no more than once per
two quarters.
Consequently, regulation of prices and tariffs  on rendering services (goods, works) is applied
in respect of all the subjects of the market, carrying out the activity in the sphere of natural
monopolies.
Other (alternative) forms of  energy supply to consumers, except electrical, heat and gas (gas
condensate) were not referred to the natural monopoly and, consequently, do not subject to state
regulation by antimonopoly legislation.WT/ACC/KAZ/37
Page 3
The enterprises of the Republic have the opportunity to conclude direct treaties on power
supply from power supply enterprises of the Republic and its outside.
III. FRAMEWORK FOR MA KING AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES
Question 3In response to question 5 in KAZ/22, Kazakhstan st ates that "international  agreements ratified
by Kazakhstan have priority over its national legislation…".
Does this include the WTO Agreement? Will this agreement have priority over Kazakhstan's
national legislation?  In what areas will it be legally necessary for Kazakhstan to adopt new laws
for the WTO to be applicable?
Answer:
The Republic of Kazakhstan states that as  pursuant to the paragraph 3 of the Article 4 of the
Constitution of the Republic of Kazakhstan internat ional agreements have the priority before the
national legislation then it applies to the WTO Agreements.
Relevant amendments and alterations have been entered and being entered into legislation of
the Republic of Kazakhstan with a view of bringing of national legislation into line with the WTO
agreements.  New laws are adopted as required for regulation of relations in  one or other area. So, forexample, the work on bringing of the legislation in the area of protection of intellectual property  into
line with the Agreement on trade aspects of  intellectual property rights is being carried out.
Since the last session of working group Kazakhstan carried out significant work on bringing
of legislation in the area of foreign trade into line with the WTO rules and principles.  For the above
period the following laws in the area of foreign tr ade have been adopted: "On Certification",  "On
Standardization", "On Subsidies and Compensa tion Measures", "On selection Achievements
Protection", "On Plants Quarantine", "On Anti dumping Measures", "On Protection of Domestic
Market Measures while importing goods", "Patent Law", "On Trade Marks", "Servicing Marks" and
"Country of origin of goods", "On making amen dments and alterations into the Decree of the
President of the Republic of Kazakhstan in force "On Customs of the Republic of Kazakhstan", "Onunfair competition", "On financial leasing", "On making amendments and alterations into some
legislative acts on banking secret", "On legal protection of topologies of integral microschemes", "On
making amendments and alternation into the law of the Republic of Kazakhstan "On plants
quarantine" .
Question 4
Can Kazakhstan confirm that sub-central administrative authorities, e.g. local administrative
bodies, have no jurisdiction or authority to establish regulations or taxes on goods and servicesin Kazakhstan independent of the central authorities and that application of these measures are
exclusively the responsibilities of the executi ve and legislative branches of the central
government?
Can Kazakhstan confirm that, from the date of accession, when apprised of a situation where
WTO provisions were not being applied or were applied in a non-uniform manner, centralauthorities will eliminate or nullify measures taken by sub-central authorities in Kazakhstan
that are inconsistent, with WTO provisions a nd will act to enforce WTO provisions without
requiring affected parties to petition through the courts?WT/ACC/KAZ/37
Page 4
Answer:
Local bodies do not have powers for establishing of instructions and taxes on goods and
services in Kazakhstan. Imposing of taxes in the Republic is in competence only of the higher
legislative body, and establishing of the instructions is in competence of the central executive bodies
of the Republic of Kazakhstan.
Question 5
Concerning the new Code of Administrative Violations, which Kazakhstan indicated, in
WT/ACC/KAZ/11, would change the existing pro cedures for judicial review of customs
measures:
Was the new Code ever promulgated?  If so, please describe its provisions as they relate to the
right of administrative and judici al appeal in customs measures.
Does the Code cover administrative and judicial review of any other issues covered by WTO,
e.g., TRIPS, TBT, or SPS?
Answer:
The Code of the Republic of Kazakhstan "On Administrative Violations" is adopted by the
Law of the Republic of Kazakhstan of 30 January 2001 No.155-11 and under the Law of the Republic
of Kazakhstan "On Legal Acts" was published in official editions.
Provisions of sections of XII "Violation of the customs regulations and responsibility for
these violations.  Procedure on cases of violations of customs regulations and their consideration" and
XV "Appeal and consideration of decisions, actions or failure to act of the customs bodies of the
Republic of Kazakhstan and their officials",  wit hdrawn from the Law of the Republic of Kazakhstan
"On Customs in the Republic of Kazakhstan", entered into the Chapter 26 "Administrative violationsin the customs transactions" of the Code of the Republic of Kazakhstan "On administrative
violations".
The given Code does not establish responsibility for violation of intellectual property rights.
Such responsibility is established by Criminal Code of the Republic of Kazakhstan of 16 July 1997
(article 184).
The Code of the Republic of Kazakhstan "On Administrative Violations" establishes the legal
and administrative measures with a view of achievement of lawful purposes, determined by the
Agreement on technical barriers in trade (paragraph 2.2. of the Agreement TBT): of national security,
prevention of fraudulent practice, protection of health and people's security, protection of environment
and should not have restrictive influence on trade.
The Article 1 of the Chapter 1 of the Code determines the priority of the requirements of
international treaties, ratified in the Republic of Kazakhstan, before the provisions of the Code and thepossibility of their direct application (paragraph 2.4. of TBT Agreement).
The Article 317 of the Chapter 21 of the Code stipulates the legal and administrative
measures for violations of legislation on standardization, certification and unity of measurements,
which also directed at achievement of lawful purposes.
Further the Code stipulates administrative-and-legal measures for violation of legislative and
legal acts on the veterinary and quarantine control.WT/ACC/KAZ/37
Page 5
- On  Plants Quarantine
Article 294.  Violation of rules of transportati on, storing and application of plants protection
and other preparations.
Violation of transportation rules, storing and application of plants protection, its growth
stimulants, mineral fertilizers and other preparations, which have entailed or could entailcontamination of environment or because of damage to animal kingdom, entails notification or a
penalty on citizens.
Article 307.  Violation of rules for the struggle with quarantine pests, plants diseases and
weeds.
Violations of regulations on the territory protection from the quarantine objects entails a
penalty on the citizens and legal persons.
Article 308.  Import and export of materials not subject to quarantine checking and relevant
treatment.
Import and export of imported and exported plant materials, not subject to quarantine
checking and relevant treatment, from checkpoint on quarantine plants,  transportation of these cargo
without any licensing documents.  Their re-addres sing and discrediting without participation of
specialists of state phytosanitary service on quarantine plants – entail a penalty on citizens, on legalpersons with confiscation quarantinable product or a penalty without confiscation of quarantinable
product.
Article 309.  Violation of regulations on the fi ght with pests, plants diseases and weeds.
Violation or non-execution of  regulations with pests, plants diseases and weeds, not entailed
grave consequences – entails a penalty on the citizens and  legal persons.
Article 560.  Authorized body on the plants quarantine
Authorized body on the plants quarantine and its local bodies considers the cases of
administrative violations, stipulated by the Articles 294, 307, 309 of the given Code (administrative
violations, stipulated by the article 308, are considered by the district courts and equated to them
ones).
The following officials have the right to consider the cases of administrative violations and
impose administrative sanctions:
− Chief state inspector on plants quarantine of the Republic and its deputy – a penalty on
the citizens, on officials and legal persons;
− State inspectors on the quarantine plants of regional and municipal services – a penalty on
the citizens, on the officials and legal persons; and
− State inspectors on the plants quarantine of district services and checkpoints – a penalty
on the citizens on the officials and legal persons.
- On veterinary
Article 310.  Violation of  legislation on veterinary.
Violation of legislation on veterinary medicine, committed in the form of:WT/ACC/KAZ/37
Page 6
− refusal to carry out obligatory veterinary-sanitary measures and violations of their terms;
− non-observance of terms and requirements of quarantine and restrictive measures;
− delayed or incomplete carrying out of veterinary-sanitary measures on liquidation of
infectious animals;
− spreading of infectious animals
− non-observance of veterinary-sanitary regulations  while reproducing animals;
− non-execution of requirements of legal acts of  the territorial protection of  the Republic
from  infectious diseases.
− violations of requirements of veterinary-sanitary regulations while transporting
(overtaking) of animals;
− non-observance of requirements of veterinary-sanitary regulations and specifications on
the markets of (trading organizations), at enterprises for preparation, storing,  treatment of
cargo under veterinary inspection, in warehouses, quarantine bases, at loading andunloading platforms and in transport means; and
− violation of any other legal acts in veterinary medicine, not entailed spreading of
epizootic or any other grave consequences, as well as decisions of local representative
and executive bodies on the issues of struggle with epizootic – entail a penalty on the
citizens, on the officials and legal persons.
Article 311.  Violation of regula tions of care of dogs and cats
Violation of established regulations of care of dogs and cats in cities and any other
settlements by local representative bodies entails warning or a penalty.
Violation of established regulations of care of dogs and cats in the cities and any other cities
by the local representative bodies entails a warning or a penalty.
The same actions, entailed inflicting of a damage to health or property of the citizens entail a
penalty.
Article 559.  Authorized body in veterinary inspection
Officials of an authorized body in veterinary inspection consider the cases of administrative
violations, stipulated by the Article 310 of the given Code.
The following officials have the right to consider the cases of administrative violations and
impose administrative sanctions:
− Chief state veterinary inspector of the Republic of Kazakhstan and its deputies – a penalty
on the citizens, officials and legal persons;
− Chief veterinary inspectors at state border and transport, regional chief state inspectors
and  their deputies, veterinary inspectors of an authorized state body in veterinarymedicine – a penalty on the citizens, officials and legal persons; and
− District, city chief state inspectors, rural veterinary inspectors, veterinary doctors of
veterinary institutions of executive bodies and departmental veterinary service, vested
with the authority, to carry out state veterinary inspection.
Officials of state veterinary inspection bodies may collect a penalty at site:
− at realization sites – for violation of veterinary-sanitary regulations of animals trade
(including of poultry, fish and bees), products and animals raw materials;WT/ACC/KAZ/37
Page 7
− at railway, water and air transport, at highway and ground roads, in the routes of
overtaking of animals – for violation of veterinary-sanitary regulations of overtakinganimals (including poultry, fish and bees), animal products, as well as overtaking
regulations; and
− at the state border – for violation of veterinary-sanitary regulations on territory protection
of the Republic of Kazakhstan from infectious diseases (including poultry, fish and bees)
from  foreign states.
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulation
(a) Registration requirements for engaging in importing
We appreciate Kazakhstan's confirmation, in  WT/ACC/KAZ/22, that there is no State
monopoly on foreign trade and there are no restr ictions on the right of foreign and domestic
individuals and enterprises to import and export goods and services except as provided for in
WTO agreements; that individuals and firms are not restricted in their ability to import orexport based on their registered scope of busine ss, and that the criteria for registration of
companies in Kazakhstan are published in the Official Gazette.
Question 6
Please outline the requirements for a firm or individual to conduct international trade in
Kazakhstan: e.g., Is it necessary for a firm or individual to be registered as a commercial orlegal entity? Are there any investment or ot her special requirements for foreign firms or
individuals to engage in international trade?  Can a non-resident foreign firm or individual
engage in importation or exportation, e.g., be the importer of record in Kazakhstan?
Concerning Activity Licensing:
Has the list of activities subject to licensing in Annex 7 of WT/ACC/KAZ/3 changed since 1997?
If so, please update that information.  Please i ndicate the value in local currency, in U.S. dollars,
and in Euros of "20 monthly evaluations", i.e., th e standard fee for obtaining an activity license
noted in WT/ACC/KAZ/10.
Answer:
For legal persons a certification on state registration, for natural persons a certification on
state registration as an individual entrepreneur (a patent) is required.
Regarding the activity on licensing, from the moment of issue of the Law of the Republic of
Kazakhstan of 17 April 1995 No.2200 "On Licensing" 31 modifications were made into it.
By three modifications of them some kinds of enterprise activity, subject to obligatory
licensing, were withdrawn:
By the Law of the Republic of Kazakhstan of 9 July 1998 No.277-1:
− preparation and  processing of the secondary  resources and wastes,  containing precious
metals and precious stones; and
− processing, storing of precious metals, precious stones, manufacture of jewelry,
operations with affinated precious metals and precious stones in physical state.WT/ACC/KAZ/37
Page 8
By the Law of the Republic of Kazakhstan of 10 June 1998 No.283-1:
− development of individual means of self-protection;
− production and realization of toxic materials and protection means from them;
− maintenance and exploitation of filling points;
− production of  constitutionally approved material-and-graphic subjects, personifying state
symbols of the Republic of Kazakhstan; and
− activity public catering entities.
By the Law of the Republic of Kazakhstan of 8 October 1999 No.471:
− production of surveying works while using the mineral wealth.
Law determined the following kinds of activity, subject to obligatory licensing:
Licensing of the activity, connected with the objects of heightened danger and/or having
specifically important state significance:
License availability is required for the following kinds of enterprise activity:
− Design, production, repair  and realization of arms and ammunitions to it, cryptographic
means of information security, special technical means of for conducting of specialoperative-and-search measures, military equipment, spare parts, completing units and
devices to it, if they are not used in other branches, as well as special materials andequipment for their production, including mountin g, adjustment, use, storage, repair and
servicing.
− Design, production and realization of explosive and pyrotechnical materials and products
with their application and etc.
− All kinds of activity on use of  space, including creation, production, exploitation, repair
and modernizing of space-rocket equipment, use of  ground infrastructure for  ensuring of
its functioning  (testing area, command-measuring complex, stand base and others);
− Production and granting of services in post communication sphere and
telecommunications,  services on retransmitting of television and sound  (broadcasting)programs, design, construction, exploitation of All-Republican main, international lines of
communications and use of radiofrequence spectrum;
− Kinds of activity, connected with the use of atom energy, including:
− deployment, design, construction, putting into operation, exploitation,
reconstruction, conservation and withdrawal of objects of atom energy use from
operation;
− handling with radioactive wastes;
− physical protection of nuclear installations and nuclear materials;
− services on control over nuclear and radiation safety;
− conducting of radioecological investments and works on radiation rehabilitation;
− all kinds of activity in nuclear testing ranges;
− transportation (including transit) nuclear materials and radioactive materials
within the framework of the Republic of Kazakhstan; and
− preparation and certification of the personnel, specialists for the activity,
regarding use of atom energy.WT/ACC/KAZ/37
Page 9
− Manufacturing and realization of output, containing radioactive materials in quantity,
exceeding standard, permissible for their use means without any ground to apply specialprotection;
− Production, transfer and electric and thermal power distribution;
− Liquidation (destruction, utilisation, dumping) and processing of released military-and-
technical means;
− Design, construction and exploitation of industrial explosive, fire-dangerous and mining
productions, power stations, power networks and substations, water development works,
main gas and oil pipelines, hoist units, as well as boilers, containers and pipelines,operating under the pressure, and  oil and gas drilling operations;
− Design, manufacture, erection and maintenance of chemical, drilling, oil & gas field,
geology-prospecting,  mining, metallurgic, power generating equipment, explosion-safety
electrical engineering equipment,  and control systems, alarm protection and signalling,
hoist units, as well as boilers, containers and pipelines, operating under the pressure;
− Design, production, repair, trade, acquisition, collecting, exhibiting of civil and service
fire-arm and cartridges to it, combat hand small arm and cartridges to it, cold steel arm,
civil pyrotechnical substances and products with their application, as well as chemical
means of self-defense.
− Production, repair and construction works on gasification of housing and communal-
general objects;
− Design, installation, adjustment and technical servicing  of  security, fire signalling and
fire-prevention automatics, production and realization of fire-prevention engineering,
equipment and  fire-prevention protection means;
− Installation, repair and  passenger elevators servicing;
− Manufacturing, production, processing and wholesale realization of agents and
disinfecting drugs, desinsecting, deratization, as well as works and services,  connectedwith  their use;
− Design, production and realization of  x-ray equipment,  devices and equipment with the
use of radioactive materials and isotopes;
− Passenger and cargo transportation by railway, river, marine, air transport; international
passenger and cargo transportation by motor transport; hazardous cargo transportation by
all kinds of transport, aviation works;
− Airport activity, related to aircrafts, passengers and cargo in the airports;
− All kinds of activity on technical protection  of state secrets of the Republic of
Kazakhstan, including design, manufacturing, installation, adjustment, use, storing, repairand  servicing  of technical means  of information security, protected technical means of
information processing;
− Production of  land surveyor, land and cartographical works and realization of land and
cartographic product;
− Manufacturing and realization of medicine (except growing, collection and sale of
medical products of animal, plants and herbal origin, not containing drugs and
psychotropic substances and herbs, not containing drugs and psychotropic substances);
− Processing of mineral raw materials;
− Design and survey, expert, construction works, production of building materials works,
products and constructions;
− Check, production and repair of measurement technique;
− Production of ethyl spirit and alcohol product, storing and realization of ethyl spirit, as
well as storage, wholesale and retail realization of alcohol product (except beer);
− Activity carried out within the framework of separate customs procedures, in conformity
with customs legislation of the Republic of Kazakhstan, as well as rendering of customs
services;WT/ACC/KAZ/37
Page 10
− Production of blank-forms of securities, as well as stamp paper, blank-forms of check
books and deposit certificates;
− Activity, connected with attraction of foreign manpower, as well as export of manpower
from the Republic of Kazakhstan to abroad;
− Stock material, storing, processing and realization of scrap and non-ferrous and ferrous
metals waste by legal persons;
− Judicial-and-expert activity;
− Archeological and restoration works  of historical and culture monuments;
− Activity, connected with turnover of drugs, psychotropic substances, precursors: working
out, production, processing, transportation, transfer, acquisition, storing, distribution,
realization, use, destruction;
− Cultivation, collection, preparation of plants and herbs, containing drugs and
psychotropic substances;
− Purchasing of power with a view of  resale;
− Acceptance, weighing, drying, purification, storing and shipment of  grain;
− Tourist activity;
− Making and repair rolling stock, special containers, applied for transportation of
hazardous cargo;
− Installation, repair and exploitation of technical means of  road traffic regulation;
− Search-and-rescue, anti-gushing works;
− Production, processing, transportation, acquisition, storing, realization, use, destruction of
toxins under the list approved by the Government of the Republic of Kazakhstan; and
− Activity on management of property and cases of insolvent debtors in bankruptcy
procedure.
Licensing of activity, related to servicing of citizens and legal persons.The following kinds of activity, related to servicing of citizens and legal persons, subject to
licensing:
− Activity of educational institutions, granting secondary, secondary professional and
higher education with the right of issue of diplomas on concrete specialities;
− Engagement in medical, treatment and veterinary activity;
− Rendering of  legal services, related to detective activity by non-state subjects;
− Lawyer activity;
− Rendering of paid legal services, not connected with lawyer activity;
− Activity of notaries;
− Organization and conducting of  lotteries (except state (national), totalizers, casinos;
− Property valuation activity; and
− Carrying out of security activity by legal and physical persons.
Licensing of activity, connected with concentration of financial resourcesThe following kinds of financial activity and activity, related to concentration of financial
resources  are subject to compulsory licensing:
− Carrying out of banking operations, as well as other operations, carried out by the banks
in conformity with banking legislation, clearing and settlement operations of
organizations, audit of banking activity;
− Auditor activity;WT/ACC/KAZ/37
Page 11
− Activity in the branch "life insurance" and in  the branch "general insurance", activity on
reinsurance, activity of insurance brokers, actuary activity on the insurance market,auditor verification of insurance (reinsurance) organizations;
− Professional activity on securities market, activity of trade organizers with securities and
self-regulating organizations of profession al participators of securities market;
− Activity on attraction of pension fees;
− Activity on carrying out of pension payments;
− Activity on investment management of pension assets; and
− Activity of investment fund.
Licensing of operations, related to use of currency values
The following kinds of operations, related to use of currency values, are subject to licensing:
− Carrying out of retail trade and granting of services for cash foreign currency;
− Opening of accounts by the residents (including the accounts in the currency of the
Republic of Kazakhstan) in foreign banks and any other financial institutions, havingcorresponding right  under legislation of states, in which they are registered;
− Investments of residents abroad (except broker-dealer  activity of banks);
− Transfers of residents in favor of non-residents into the payment of  ownership rights to
real estate;
− Transfers of residents in favor of non-residents for carrying out of  settlements on import
transactions, providing advanced payment for goods, works and services for more than
120 days, as well as exceeding the term of receipt of currency earnings into payment ofexport of goods (works, services) by the residents for more than 120 days from the date of
export of goods (works, services);
− Granting of loans by the residents to non-residents for  the term of more than 120 days;
and
− Transfer of foreign currency, received by the resident from non-resident as a loan into an
account of third persons.
Standard payment for receiving of a license for carrying out of an activity, noted in the
document WT/ACC/KAZ/10, that is the cost in the national currency, in US dollars, and EURO "20
month specified rates" (according to data of National Bank of the Republic of Kazakhstan as of
13 May 2002) is as follows:
− In national currency tenge 15 500
− In US$ 102
− In EURO 111
(d) Other duties and charges
Question 7We appreciate the chart provided in WT/ACC /KAZ/22 listing non-tariff fees and charges
applied to imports.  Are there any others, e.g., related to intellectual property protection?
Answer:
Pursuant to the Article 218-2 of the Law of the Republic of Kazakhstan "On Customs in the
Republic of Kazakhstan" (further – the Law) the order of submission, consideration of an applicationand inclusion into the register is determined by the Central Customs Body of the Republic ofWT/ACC/KAZ/37
Page 12
Kazakhstan in coordination with authorized state bodies, issues of objects of intellectual and industrial
property protection are referred to the competition of them.
The Central Customs Body of the Republic of Kazakhstan keeps the register of goods,
covering the objects of intellectual property and ensures its periodical publication.
Charges for inclusion of the objects of the intellectual property in  the register of the Central
Customs Body are not levied.
Pursuant to the Article 218-3 of the Law the Customs Body of the Republic of Kazakhstan
suspends the output of goods, including the objects of intellectual property, included in  the register of
the Central Customs Body of the Republic of Kazakhstan if the Customs Body of the Republic of
Kazakhstan finds out that these goods violate the rights to objects of intellectual property of a
Applicant.
While suspending output of goods, including objects of intellectual property, the legal owner
within three working day upon receiving of a notifi cation of such suspension is obliged to effect
payment at the rate, sufficient for compensation of losses of the Declarant in connection with
suspension of goods output.  The above rate is specified by the Customs Body of the Republic of
Kazakhstan in the order, established by the legislation of the Republic of Kazakhstan.
Pursuant to the Article 218-4 of the Law output of goods, including industrial samples,
patents, topology of integral microschemes or disclosed information, is carried out in case of granting
by the declarant of support, necessary for protection of interest of legal owner for the term not less
than one month.  Form and the rate of support is determined by the Customs Body of the Republic of
Kazakhstan in the order established by the legislation of the Republic of Kazakhstan.
Question 8
In October 1998, we asked for a specific plan from Kazakhstan on how it plans to bring, its
0.2 per cent customs fee into conformity with Article УШ, including establishment of levels of
application, a menu of fees for service, and a timetable with specific dates for implementation.
What progress has Kazakhstan made in the interim to bring its ad valorem  customs processing
fee (0.2 per cent of customs value) into  line with Article VIII of the GATT?
Answer:
The Republic of Kazakhstan is obliged by the date of accession to the WTO to bring its
customs fees for customs clearance in conformity with the Article VIII of GATT.  In connection with
that in a new Draft Customs Code  a rule, according to which in the basis of customs duties a cost of
expenses of customs bodies for customs clearance is stipulated.
(e) Quantitative import restrictions
Question 9Does Kazakhstan still limit alcohol imports to 20 per cent of domestic consumption?  If so, this
is a violation of Article XI of the GATT, and the practice should be eliminated as soon as
possible, but in no case later than by date of accession.
We would appreciate an update on the information provided in Annex 3 of WT/ACC/KAZ/3
concerning Kazakhstan's imports subject to import, licensing.WT/ACC/KAZ/37
Page 13
As a decision to issue the license is required by various offices and ministries of the Government
of Kazakhstan, these licenses should be co nsidered as non-automatic.  Please include
justification for this restriction in the updated information and information on the specific
criteria required by the deciding  offices and ministries.
Answer:
The Republic of Kazakhstan states that a restriction of alcohol import at rate of 20 per cent of
home consumption will be withdrawn by the date of accession of Kazakhstan to the WTO.
Regarding the list of good, import of which is carried out according to the licenses, we
present a renewed information on it. See the Tables (E. 2.1 and E.2.2.).WT/ACC/KAZ/37
Page 14
Table E.2.1. – List of goods, import of which is carried out according to licenses
Name of good HS CodeMinistries and agencies of
the Republic of Kazakhstan,
coordinating decision of
license issue
Chemical agent of plants protection 3808 (only preparations for plants
protection)Ministry of agriculture,
Ministry of natural resources
Medicines, items of medical purpose,medical technique (except medicaltechnique imported to the Republic asa humanitarian aid2936 – 2939, 2941, 3001 – 3004,
3006, 9013, 9018-9022 (except902111000, 902119100,9021309000)Agency of the Republic of
Kazakhstan for healthcare
Medicines for veterinary purposesand veterinary technique2936-2939, 2941, 3001-3006, 9018-
9022Ministry of agriculture
Drugs, psychotropic substances According to the list, determined by
the Government of Republic of
KazakhstanCommittee for struggle with
drug, drug trafficking,
Ministry of Justice, Agency
for healthcare
Precursors According to the list, determined by
the Government of Republic ofKazakhstanCommittee for struggle with
drug, drug trafficking,Ministry of Justice, Agencyfor healthcare, Ministry ofnatural resources
Poisons According to the list, determined by
the Government of Republic of
KazakhstanAgency for health, Ministry
of natural resources
Encryption means (including
encryption technique, parts forencryption technique and programpackage for encryption), normativeand technical documentation to
encryption means (including design
and operation)8471 (only encryption technique),
847330 (only for encryptiontechnique) 854390900 (only forencryption technique)National Security
Committee (KNB)
Protection means from fighting toxicsubstances, parts and accessory tothemAccording to the list, determined by
the Government of Republic ofKazakhstanMinistry of defense,
Normative and technical
documentation to the product ofmilitary purpose (design andoperation)Ministry of defense,
National SecurityCommittee
Gunpowder, explosive substances,
means for explosions and
pyrotechnics360100000 (except hunting
gunpowder), 360200000, 360300,
3604MIA
Industrial wastes 261800000-2620,3915 Ministry of natural resources
Thebaic raw 121190800 Agency for healthcare
Service and civil weapon According to the list, determined by
the Government of Republic of
KazakhstanMIAWT/ACC/KAZ/37
Page 15
Name of good HS CodeMinistries and agencies of
the Republic of Kazakhstan,
coordinating decision of
license issue
Nuclear substances, technologies,
equipment and facilities, special non-nuclear substances of double use,
sources of radioactive radiation,
equipment, based on alpha-, beta- orgamma x-radiation2612, 2844 (only mixed oxide of
natural uranium, uraniumcombinations enriched to 20% on
uranium isotope 235 and sources of
ionizing radiation, not containingfissionable elements), 380110000(except nuclear-pure graphite),810110000, 8103, 810411000,810600100, 8108, 8109, 8112, 9022Committee on atomic
energetic of the Ministries ofpower engineering and
mineral resources of
Republic of Kazakhstan
Compound spirit by-products, except
products on the basis of fragrant
substances, used during beveragesproduction210690200 Committee on state control
over production and
turnover of excise productsof the Ministry of staterevenues
Wine 2204, 2205, 2206
Ethyl spirit 2207
Ethyl spirit undernatured withconcentration of spirit less than 80%,alcoholatures, liqueurs and otherspirit beverages2208
Special technical means designed for
conducting of special operative and
search measures, protective  means of
information, other technique ofdouble application (including part tothem,  applied programs packages,normative and technical
documentation to the  special
technique means) (including designand operation)830170000, 847130000, 847141900,
847149900, 847150900, 847330100,
851750, 851780900, 851810,851840,
851850900, 852032, 852033,852090900, 8521,8525, 8526, 8527,854389900, 900219000, 900580000,9013, 901910900, 9006, 902219000,
902229000  (only special technical
means, protection means ofinformation and other technique ofdouble application)National Security
Committee
White spirit 271000210 Ministry of power
engineering and mineralresources of Republic of
Kazakhstan
Others 271000250 Ministry of power
engineering and mineral
resources of Republic ofKazakhstan
White distillates others 271000390 Ministry of power
engineering and mineralresources of Republic ofKazakhstan
Average distillates for specific
procession processes271000410 Ministry of power
engineering and resources of
Republic of Kazakhstan
For chemical transformations in theprocesses271000450 Ministry of power
engineering and mineralresources of Republic ofKazakhstanWT/ACC/KAZ/37
Page 16
Table E 2.2.. – List of  goods, import of which is carried out according to licensing of the
Government of the Republic of Kazakhstan
Brief name of the good Code
Armament and military technique,
special building up products for theirproduction, works and services in thearea of military and technicalcooperation871000000, 8802 (except 880211100, 880212100, 880220100,
880230100, 880240100, 8803 (except 880310100, 880320100,880330100, 880390910, 880400000, (o nly of  milita ry purpose),
8805 (except 880520100), 890600100, 930100000, 930200, 9305(only for military weapon), 9306 (except 930610000, 930629400,
930630910 – 930630980, 930690900,  901310000 (onl y of military
purpose), 901320000 (only of military purpose), 901380 (only ofmilitary purpose) , 9014 (only of military purpose), 8525 (only of
military purpose), 8526 (only of military purpose).
Nuclear materials, technology,
equipment and installations, specialnon-nuclear materials, sources of
radioactive radiation, including
radioactive wastes2844 (except mixed oxide of natural uranium, uranium combinations,
enriching  to 20%  on uranium isotope 235 and sources of ionisingradiation, not containing fissionable  elements, 2845, 380110000
(only nuclear pure graphite), 8401, 711041000
(h) Customs Valuation
Question 10
The response to questions 7 and 23 of WT/ACC/KAZ/22, concerning the status of the draft
Amendments to the Customs Code report that  the draft Amendments were approved by the
Government of Kazakhstan (Resolution of the Government of 16 March 1999, No. 248) and
submitted to Majilis of the Parliament for consideration.  Has the draft Customs Code been
enacted? Is the document provided by Kazakhstan in WT/ACC/KAZ/21 the final text of the
Code, or have there been changes?
The response to question 24 of WT/ACC/KAZ/22 reports that the Amendments to the Customs
Code do not include amendments required to co nform to the Agreement on Implementation of
Article V of the General Agreement on Tariffs and Trade 1994 (the "Valuation Agreement").
According to the response, right after adopti on of the Amendments to the Customs Code,
Kazakhstan will effect implementing regulations that incorporate the In terpretative Notes and
WTO Valuation Committee decisions.  Have the Amendments to the Customs Code have been
adopted?
Could Kazakhstan clarify whether the Amendments have the force of law, and report whether
the implementing regulations have been drafted and are in force?
If the regulations are completed, we request th at a copy be provided for Working Party review.
We have additional comments and questions on the text of the draft Customs Code text
provided 5 in WT/ACC/KAZ/21 which we will submit separately for written response.
While we have noted some deficiencies, we appreciate the efforts Kazakhstan is making to bring
its customs valuation regime into conformity  with the Agreement, and we look forward to
receiving further information and clarification that may address our questions.WT/ACC/KAZ/37
Page 17
Answer:
In accordance with the Law "On Customs in the Republic of Kazakhstan", customs valuation
of importing goods is based on general principles of customs valuation of GATT (article VII of
GATT).
With a view of harmonization of standard documents on application of the Article VII of
GATT by the corresponding customs body of the Republic of Kazakhstan a standard legal act,
regulating the order of application of methods of identifying the customs valuation, control  over
customs valuation by the officials of the customs body, terms of  declaring of customs value and its
adjustment is worked out.
Amendments and alterations into the Law of the Republic of Kazakhstan "On customs in the
Republic of Kazakhstan" stipulating bringing the rules of the Law in connection with customs
valuation into the line with the requirements of the WTO, were adopted by the Law of the Republic ofKazakhstan of 16 June 1999 "On entering amendments and alterations in the Decree of the President
of the Republic of Kazakhstan, effective as Law, "On customs in the Republic of Kazakhstan".  It
should be noted that while elaborating of the Law on the issues of customs valuation and other ones
(the country of origin, intellectual property) the expert's opinion of USAID project was considered,
proposals of which stipulated  bringing the rules of the Law into line with the WTO requirements.
Instructions brought into line with the indicated amendments and alterations into the Law, are
approved by the order of the Customs Committee of the Ministry of State Revenues of the Republic of
Kazakhstan of 6 February 2001 No. 42 "On customs valuation of goods, imported on the customs
territory of the Republic of Kazakhstan", registered in the Ministry of Justice of the Republic of
Kazakhstan of 30 March 2001 No. 1443.
(i) Other customs formalities
Question 11
Concerning Kazakhstan's requirement for traders to have an import or export "Transaction
Passport" which contains a copy of certain information contained on customs documentation
normally required for clearance, e.g., price paid for the goods, the name of the purchaser, the
date of delivery, etc.
We remain concerned that this instrument duplicates documentation already available to
customs authorities and constitutes a burden to trade.
We reserve on the WTO consistency of this instrument, pending further review.
We would appreciate any additional information on whether the "passpor t" system is still in
place and any other relevant information.
Answer:
Transaction certificate is necessary for carrying out of control over the completeness and
timeliness of receipts in foreign and national currency from export.  Moreover, transaction certificate
is necessary for statistic accounting of export receipts and imported goods.
Currency control by certification of export-import operations enables also to observe payment
balance structure of the Republic of Kazakhstan and foreign trade balance.WT/ACC/KAZ/37
Page 18
(j) Pre-shipment inspection
Question 12
The response to Question 38 of WT/ACC/KAZ/6/Add.I stated that Kazakhstan's pre-shipment
inspection was eliminated on 31 January 1997.
Is this information still accurate?  Does Kazakhstan still use, or intend to use a pre-shipment
inspection firm?
If so, please provide relevant laws and regulations and describe the terms of the services
provided.  Does Kazakhstan consider use of a pre-shipment inspection firm a temporary
measure?
Answer:
From 1996 to 1997 the Program of Pre-shipment  Inspection (PPI) was being implemented in
the Republic of Kazakhstan.  The PPI system was introduced on the territory of the Republic ofKazakhstan by  the Resolution of the Government of the Republic of Kazakhstan No. 1301 of
4 October 1996.
In 1997 the PPI in the Republic of Kazakhstan was closed down.
Currently under the Resolution of the Government of the Republic of Kazakhstan of
6 April 2001 No. 453 the Ministry of state revenues of the Republic of Kazakhstan in 11 June of thisyear held an invited tender for services purchasing on independent examination of customs value of
goods imported to the Republic of Kazakhstan.
Independent examination of customs value, in contradiction to the pre-shipment inspection,
offers carrying out of price audit (control over th e compliance of declared information to their real
cost) of imported goods upon their arrival at the Republic of Kazakhstan.
Introduction of independent price  audit of imported goods will enable:
− to increase the flow of customs and tax payments to the budget;
− to avoid the wrongful acts on the part of customs officials;
− prevent the outflow of capital from the Republic of Kazakhstan;
− prevent the import of low quality goods;
− to strengthen the administrative structures, carrying out the control over foreign trade  by
use of updated reliable statistic data on trade operations.
Currently the standard documents for introduction of above system are being worked out.
(k) Application of internal taxes on imports
Question 13WT/ACC/KAZ/29 provides addition al information on the development of Kazakhstan's tax
system. Unfortunately, it omits information on the critical issues identified by this delegation at
the third Working Party and acknowledged by Kazakhstan in WT/ACC/KAZ/22 (June 1999),
as to whether imports from other CIS countries are subject to VAT and excise taxes, or if they
are still exempted. Also omitted from KAZ/29 is any update on the process of harmonization ofexcise taxes on domestic and imported goods reported in KAZ/22.WT/ACC/KAZ/37
Page 19
Answer:
The rules of the Law of the Republic of Kazakhstan "On taxes and other obligatory payments
to the budget", considering the availability and rules of international treaties concluded by Kazakhstan
with the CIS member-states on principles of indirect tax imposing, do not stipulate for exemption of
imported goods from any countries.
Up to the date of signing of the Agreement (entered into force from 1 July 2001) between the
Governments of Kazakhstan and Russia on principle of indirect tax imposing in mutual trade (further
Agreement), only import from Russia is not levied by indirect taxes.  After entering into force of the
given Agreement imports from Russia (except natural gas, oil, including stable gas condensate) is
imposed by VAT and excises.
Pursuant to the Article 3 of an Agreement Goods, imported to the Customs territory of state of
one party, which were exported from the customs territory of state of another party, are levied byindirect taxes in the country of destination in accordance with its national legislation.
Question 14
WT/ACC/KAZ/29 appears to indicate that Kazakhstan now applies VAT to all imports,
including those from other CIS, with the exception of Russia.
Please indicate which countries whose imports remain exempt from the application of VAT in
Kazakhstan.
Please provide the legal citation for the cu rrent VAT regime and Kazakhstan's plans for
bringing its VAT regime into full conformity with WTO?
Answer:
Currently there are no countries the import of goods from which is subject to exemption from
value added tax.
As of today the issues of imposing of VAT are regulated by section III of the Law "On
Taxes".
It should be noted that VAT application is completely corresponds to the principles, stipulated
by the WTO Agreements
Question 15
WT/ACC/KAZ/29 does not report any progress on removing the elements of discrimination
against imports existing in Kazakhstan's application of excise taxes to imports.  Please report on
efforts to bring Kazakhstan's excise tax regime into conformity with Article Ш of the GATT?
Please update, as necessary, the chart in WT/ACC/KAZ/29 listing excise taxes mid give the
current legal citation for their application.
As has been indicated in previous meetings, it is imperative that Kazakhstan state categorically
when it will complete the adopti on of the destination principle in application of domestic taxes
(both VAT and excise) to imports from all/all its trading partners, and eliminate the elements of
discrimination against imports in the application of its excise taxes.WT/ACC/KAZ/37
Page 20
Answer:
Kazakhstan has undertaken step on elimination of discrimination in the context of excises
imposing on goods of domestic production and imported from abroad.
At the same time, one cannot take into account a number of aspects in connection with which
the process of elimination of these differences be tween excise rates is of a continuous character.
Unification of excises is complicated by the facts that divergence between domestic and
imported excise rates changes both in one and other sides:  if the rates on imported alcoholic product
significantly exceed domestic excises on it then in case of import of oil products imposed rate of
excise is lower than domestic.  In this situation the differentiated approach of levelling of rates,
enabling to protect and support Kazakhstani producers of excise product, is required.
In connection with it, for balancing of interest of Kazakhstani producers of excise product
with necessity of fulfilment of WTO requirements on providing of national regime, stage-by-stageprocess of  unification of excise rate (completion is being planed by the end of 2005) is necessary.
In the Appendix (1) to the this document a renewed Table on the list of excise rate on excise
goods produced in the Republic of Kazakhstan and imported to the Customs territory of the Republic
of Kazakhstan being realized on the territory of the Republic of Kazakhstan and gaming  is given.
In the area of tax policy in the Republic of Kazakhstan from 1 July 2001 a system of indirect
taxes imposing in trade according to the principle "The country of destination" is introduced.
(l) Rules of origin
Question 16
We thank Kazakhstan for the text of the draft Customs Code contained in WT/ACC/KAZ/21.
We note, however, that the provisions on rules of  origin do not fully meet the provisions of the
WTO Agreement.  In particular, the provisions of Annex П do not appear to be incorporated.
In particular, the requirements of Article 2 (h) and Annex П, paragraph 3 (d), i.e., that for non-
preferential and preferential rules of origin, re spectively, its customs authority will provide
upon the request of an exporter, importer of any person with a justifiable cause an assessment
of the origin of the import and outline the terms under which it will be provided, appeal' to bemissing from the text.
According to the provisions of the WTO Agreement  on Rules of Origin specified above, any
request for such an assessment would be a ccepted even before trade in the goods concerned
began, and any such assessment would be binding for three years.
We believe that Kazakhstan should ensure that th ese provisions – the requirements of Article 2
(h) and Annex П, paragraph 3 (d), are incorporated in  law prior to the date of accession.
Answer:
The issue by the customs bodies of preliminary decision on the origin of good upon the
request of an interested person is stipulated by the Law "On customs" (Article 376-379).  The
payment fixed by the Government of the Republic of Kazakhstan is stipulated for the issue of
preliminary decision (currently 50 Euro).  Maximum term for issue of preliminary decision on the
country of origin constitutes 30 days since the day of  filing of an application by the interested person.WT/ACC/KAZ/37
Page 21
Period of validity of preliminary decision on the country of origin  under the Law "On customs"
constitutes three years.  However, it is necessary to note, that in conformity with  Rules of definition
of the country of origin, approved by the Council of Heads of the CIS Governments of
30 November 2000,  period of validity of the certificate of origin constitutes one year. In conformity
with the Article 5 of the Law "On customs", these Rules have a priority action regarding the Law "Oncustoms".
With regard for the above, term of validity of the preliminary decision on the country of
origin at present makes  up one year.
(m) Anti-dumping regime
(n) Countervailing duty regime
(o) Safeguard regime
Question 17We thank Kazakhstan for provided its Antidumping and Countervailing Duty Laws in
WT/ACC/KAZ/23, and "On Measures of Protecti on of Internal Market of Goods" in
WT/ACC/KAZ/20.  We will provide sp ecific comments in writing.
2. Export Regulation
Question 18In the response to question 43 of WT/ACC/KAZ/22 Kazakhstan again acknowledges the
existence of prohibited subsidies and seeks a transition period within which to bring them into
conformity with the Subsidies Agreement or eliminate them.  Kazakhstan has previously noted
that subsidies for food, light, coal, machinery building and construction materials industries
were involved.
We suggest that Kazakhstan. As a matter of urgency, specify the subsidies  involved, give legal
citation for them, and make specific proposal for their elimination.  Further delay on this point
undermines the credibility of Kazakhstan's statements  that it wishes to intensify work towards
completion of negotiations for terms of accession.
What steps has Kazakhstan taken during the la st three years to provide for the eventual
elimination of these prohibited subsidies? By what date-certain is Kazakhstan prepared to have
eliminated these programs?
There is no automatic recourse for acceding countri es to the transitional provisions provided for
in the Uruguay Round Agreements. In the absence of information on the precise nature of the
subsidies and Kazakhstan concrete plans for their alteration or elimination, there can be no
consideration of Kazakhstan's request.WT/ACC/KAZ/37
Page 22
Answer:
Commodity composition of industrial product export in 2001
Export
CommodityMeasurement
Unit QuantityCost
(million US$)
Coal   Thousand tons 27,244.2 222.5
Oil & gas condensate   Thousand tons 32,400.6 4,267.2
Iron ores   Thousand tons 7,384.7 84.8
Oxide and aluminumhydroxide  Thousand tons 1,249.8186.7
Ferroalloys   Thousand tons 822.6 315.1
Ferrous metals rolling
Flat metal, including whitesheet  Thousand tons 3,176             577.2
Refined copper &
Alloys  Thousand tons            399.2            609
Raw zinc   Thousand tons 235.8 157.7
Lead   Thousand tons            131.2              54.7
Industrial Domestic Subsidizing
Export
CommodityMeasurement
unitExport
volumeAmount
Million
US$State subsidies
Chrome combinations Thousand tons     30 15.4 Are not imposed by VAT
Yellow phosphorus Thousand tons     19 15.6Tax break, privileges on
monopolists services
Phosphorite meal Thousand tons     442  8.8 See "phosphorus"
Phosphoric fertilizers Thousand tons      12  0.8 The same
Pneumatic tires Pcs    5,200  0.15Import duty on restoration of a tire
at the rate 30% is introduced
Sulphuric acid Thousand tons      23  0.15 50% discount on railway tariff
Conveyor belts Tons     730  2.1Import duties on cord cloth are
decreased
With a view of financial backing of agricultural producers of the Republic, for purchasing of
mineral fertilizers from domestic chemical plants the state in 2001 allocated from the budget
305 million tenge, in 2002 – 400 mln tenge, increasing the rates of subsidizing in 2005 to
1.2 billion tenge according to the Program of Agro-Industrial complex.
With a view of raising of competitiveness of the product of OSC "Ispat-Karmet" on export
metal rolling transportation by rail, in direction via Aktau Sea Commercial port, 0.8 decreasing rate is
established.
3. Internal Policies Affecting Foreign Trade in Goods
(a) Industrial policyArticle 7 of the Law on State Support to Direct Investment of 28 February 1997 stipulates that
the State Committee of the Republic of Kazakhstan on Investments may grant income taxWT/ACC/KAZ/37
Page 23
exemptions aimed at supporting direct investments and developing new industries in particular
sectors.
Question 19
Such specificity engages the obligations of the WTO Agreement on Subsidies and
Countervailing Measures.
We seek Kazakhstan's commitment that such subsidies will be notified as provided for in
Article 25 of the Agreement.
Answer:
Kazakhstan undertakes commitments to notify of all applied subsidies in  conformity with the
Article 25 of WTO Agreement "On Subsidies and compensation measures".
(b) Technical regulations and standards
Question 20We appreciate the additional information provided  by Kazakhstan on its Standards regime, i.e.,
in WT/ACC/KAZ/22, 27, and 28, and in the new legislation provided in  WT/ACC/KAZ/23.
We are reviewing this documentation and will provide specific comments and questions in
writing.
Has Kazakhstan reviewed its mandatory standards to determine if they meet WTO
requirements as technical regulations?
Has Kazakhstan taken measures to establish a regime of voluntary standards?
Answer:
We provide with the following information of the conformity of legislation of the Republic of
Kazakhstan with the Articles of WTO Agreement on technical barriers on trade (further Agreement).
"Article 1. Agreements
General terms for standardization and conformity  assessment procedures should have
the meanings, accepted in UN system and by international organizations, considering
their context, aim and purposes of this Agreement".
A notion "technical regulation" is included in the Law of the Republic of Kazakhstan "On
standardization" and  Technical standard (TS) of the Republic of Kazakhstan 1.0-2000 " State system
of standardization (SSS).  Key provisions".
"Article 2. Agreements
WTO member countries regarding the imported goods should grant no less favorable
treatment with respect to technical regulations than  that which is effective on their
territory.
While working out technical regulations (standards) it is necessary to be oriented at
international standards and with a view of harmonization of national standards withWT/ACC/KAZ/37
Page 24
international ones, it is necessary to be more actively involved in the work of
international organizations on standardization;
to perceive as equivalent national standards of other countries if they provide
legislative aims, to carry out wide exchange regarding  the standards and  assessment
procedures relatively;
to publish at early stage notifications of supposed introduction of concrete technical
regulation (standard) thereby concerned countries might be acquainted with it".
Pursuant to the Law of the Republic of Kaza khstan "On standardization" international and
national standards of foreign countries applied in the established order are entered into the category of
normative documents, effective in the Republic of Kazakhstan.
Natural and legal persons are granted the right directly to apply international, regional and
national standards, technical regulations and other normative documents on standardization of foreigncountries in the order established by STATESTANDART.
State standard (SS) of Republic of Kazakhst an 1.9-99 "Order of applying of international,
regional and national documents on standardization and certification" is adopted.  The Law of the
Republic of Kazakhstan "On standardization" determined that an authorized state body
(STATESTANDART) organizes a publication of information about standards and conformityassessment procedures, as well as standards and certification procedures and their projects.
"Article 3.  Agreement
Technical regulations of local governmental and non-governmental bodies should not
contradict to the requirements of technical regulations of central governmental
bodies".
There are unified  legislative and normative documents in the Republic of Kazakhstan. In
addition, the law on standardization stipulates that normative documents (state, firm standards,
technical conditions) should not contradict to compulsory requirements of technical regulations
(standards).
"Article 4.  AgreementWTO Member-countries should ensure that their central governmental bodies on
standardization recognized and observed the Code of fair practice while working out,
adopting and applying standards".
Accession to the above Code is not a compulsory requirement and accession to it is carried
out by the countries on voluntarily from accession date to the WTO.WT/ACC/KAZ/37
Page 25
"Article 5. Agreement
Conformity assessment procedures should be identical for goods of import and
domestic production including time and volume of an analysis of presented documents
and conducting of conformity assessment procedures. While carrying out the
conformity  assessment procedures to observe confidentiality of goods  information, toprovide the equivalence of charges for conformity assessment both for import and
domestic goods, to provide the procedure of complaints review, related to the
conformity assessment".
In state standard of Republic of Kazakhstan (SS) 3.0-94 "Certification state system.  Key
provisions" requirement of non-discrimination access to involvement in certification state system of
all its participants is established, as well as carrying out of compulsory and voluntary certification
both domestic and import  product according to the unified rules.
 In state standard of Republic of Kazakhstan 3.2-94 "Certification state system of Republic of
Kazakhstan.  Requirements to the bodies on certification and  their accreditation order the principle of
payments equivalents, imposed for imported and domestic product certification is determined.
"Article 6.  Agreement
To take measures on mutual recognition of conformity assessment".
This requirement is fulfilled while preparing Agreements on cooperation in the area of
standardization and certification with foreign  countries.
"Requirements to accreditation to certification bodies should be unified irrespective of
either domestic or foreign".
In state standard of Republic of Kazakhstan 3.0-94 "Certification state system. Key
provisions" the requirement to non-discrimination access to involvement in certification state system
of all its participants is established.
"Articles 7 and 8. Agreement
WTO member countries should ensure fulfilment of the Articles 5 and 6 regarding the
procedures worked out and introduced by local governmental and non-governmentalbodies within the limits of their territories".
In the Republic there are unified legislative and normative documents in the area of
standardization and certification.
"Article 9.  Agreement
To give priority to international conformity assessment systems, which would
provide fulfilment of provisions of Articles 5 and 6".
In the Law of the Republic of Kazakhstan "On Certification" it is said that while working out
normative documents on certification international technical rules should be applied as a basis.WT/ACC/KAZ/37
Page 26
"Article 10. Agreement
WTO member-countries have to ensure the functioning of information center, which
might answer the justified inquiries of other WTO Member countries and provide
with documentation, concerning standards and conformity assessment procedures.
The price for publishing document should be unified for all".
In the Article 17 paragraph 4 of the Law of the Republic of Kazakhstan "On Standardization"
creation of information centre, responsible for submission of to concerned persons of notifications,
corresponding documentation and information concerning standards and certification procedures has
been determined.
In the structure of State Standard (RSE "KazINST") there is an information center, function
of which is fulfilment of information supply of WTO member countries, within the framework of
Agreement on technical barrier in trade.
In State Standard of Republic of Kazakhstan 1.8-98 "State system of standardization (SSS).
Order of publication and provision with normative documents and information of State Fund of
Standards of the Republic of Kazakhstan"  modifica tions on requirements of unified  work evaluation
on information supply, including costs for publishing documents (applicable costs unified for all
users) is being prepared.
"Article 11. Agreement
WTO member-countries should render a technical assistance to other WTO
member-countries especially developing one".
Since the accession date to WTO.
"Article 12.  AgreementDifferentiated and more favorable treatment for developing countries on realization
of TBT Agreement is stipulated".
The provisions of this Article will be applied to the Republic of Kazakhstan, depending on
status of the country (as Kazakhstan is not referred to developing countries).
"Article 13. AgreementThe Article 13 is  referred to the activity of the Committee on technical barriers in
WTO trade".
Kazakhstan will interact with the above Committee with the accession date to WTO.
"Article 14. Agreement
Stipulates the main provisions of carryi ng out of consultations and settlement of
disputes between  the WTO Member-countries".
Since the accession date to WTO.WT/ACC/KAZ/37
Page 27
"Article 15. Agreement
Since the moment of accession to WTO the country has to inform about the course
of realization of TBT Agreement and all the modifications."
Kazakhstan will meet this requirement since the accession to the WTO.
(c) Sanitary and phytosanitary measures
We appreciate Kazakhstan's acknowledgement in WT/ACC/KAZ/22, 31, and 32 concerning the
deficiencies in its SPS regime in terms of the WTO.
Question 21
What steps is Kazakhstan taking to remedy this?
Answer:
Since the moment of filing of an application in 1996 on accession to the WTO, the Republic
of Kazakhstan proceeded to the activity on elimination of defects on conformity to the veterinary andquarantine control to the SPS Agreement.
For bringing into line with the requirements of SPS Agreement the following activity is being
carried out:
− New Laws of the Republic of Kazakhstan "On veterinary" of 10 July 2002
No. 339 II ZRK and "On plant protection"  dated 3 July 2002 No. 331-II ZRK were
adopted.  Amendments and alterations into the Law of the Republic of Kazakhstan "Onplants quarantine", in which the norms and rules of the SPS Agreement are taken into
account, entered into force in February of 2002. The list of explanatory themes on SPS in
the process of accession to the WTO is attached (Attachment 2).
With a view of harmonization of sanitary and phytosanitary measures, to international
standards applied in the Republic of Kazakhstan and SPS Agreement, the Government of the Republicof Kazakhstan has elaborated "The Program on agriculture standardization".
The Program was elaborated in conformity with the Resolution of the Government of the
Republic of Kazakhstan of 7 March 2000 No. 367 "On the plan of measures on realization of the
Program of  actions of the Government of th e Republic of Kazakhstan for 2000-2002", by the
Resolution of the Government of the Republic of Kazakhstan of 2 October 1998 No. 991 "On theprogram of improvement of state systems of standardization and certification of the Republic of
Kazakhstan for 1998-2000".
The Program is the continuation of the Resolution of the Government of the Republic of
Kazakhstan of 4 May 2001 No. 913 "On the Program of development of national systems of
standardization and certification of the Republic of Kazakhstan for 2001-2002".
It is the long-term program and it covers the period from 2001 to 2006.
Program is directed on further reforming and improvement of acting in the Republic of state
standardization systems, creation of necessary conditions for transition to the international practice
of application of standards and systems of quality control, creation in the Republic of recognized in
the foreign practice of system of value of products, processes and services conformity.WT/ACC/KAZ/37
Page 28
For realization of the Program annually for the period of 2001-2006 allocation of funds will
be envisaged  from the republican budget.
While we appreciate that, after ratification, th e provisions of the WTO will supersede existing
legislation in Kazakhstan, in practical term s Kazakhstan must be able to operationally
implement and enforce the WTO Agreement on SPS from the date of accession.
Question 22
Kazakhstan should revise its legislation and establish its enquiry point now, prior to accession.
Answer:
Republic of Kazakhstan confirms that majority of paragraphs of the WTO Agreement  on SPS
are taken into account in the drafts of the Laws "On veterinary" and "On entering amendments and
alterations into the Law of the Republic of Kazakhstan "On plant quarantine" and will enter into force
upon  adoption of corresponding laws by the Parliament and President of the Republic of Kazakhstan.Paragraphs not reflected in Laws will be entered into subordinate legislative legal acts.
However, Kazakhstan has not any possibility to bring into force those provisions of SPS
Agreement that demand the transition  to the international standards, as the realization  requires  long
period of time (five-six years). Realization of the given Program requires investing of significant
financial means from the Republican budget.
After accession to the WTO it will be required not less than seven year transitional period to
the Republic of Kazakhstan for step-by-step implementation of the Program of agriculture
standardization.
(d) Trade-related investment measures
We do not believe that WT/ACC/KAZ/25 addresses the issues raised at the last Working Party
meeting, or addressed by Kazakhstan in its response to question 57 of WT/ACC/KAZ/22.
Question 23
Kazakhstan has identified TRIMS-inconsistent  measures (i.e., the preference for the  use of local
inputs in foreign investment activities) in the Law on Petroleum and the Law on Subsurface
Utilisation.  In response to question 54 of WT/ACC/KAZ/11, Kazakhstan stated that, "In 1998,
Kazakhstan will amend the Law on Oil and the Law on Subsurface Utilisation to bring them
into conformity with GATT Articles Ш and XI by eliminating from these two laws preferences
to Kazakhstan products and equipment."
What efforts has Kazakhstan made in the last th ree years to provide for the elimination of these
TRIMS – inconsistent measures? By what date – certain is Kazakhstan prepared to have
eliminated these programs?
There is no automatic recourse for acceding countri es to the transitional provisions provided for
in the Uruguay Round Agreements. In the absence of detailed information on the nature of the
measures and Kazakhstan's concrete plans for their alteration or elimination, there can be no
consideration of a transitional period for their elimination.WT/ACC/KAZ/37
Page 29
Answer:
Industry is an important branch of an economy of Kazakhstan and provides approximately a
quarter of produced gross domestic product.  As a consequence of it steady development of industrial
production is  indispensable condition of economic growth in Kazakhstan.
Under conditions of high inflation, sharp decrease in effective demand the industry of
Kazakhstan appeared  to be in deep crisis, caused double-fold reduction of production volumes in
1995 in comparison with 1990.  In chemical industry the share of mineral fertilizers production has
been sharply decreased, production of caustic soda and chlorine, polypropylene, chemical fibers,
synthetic rubber were fully suspended.  Production of tires was functioning with many months idle
standings.
For the last five years it was possible to stabilize  a situation in industry  and achieve a growth
trajectory.  1998 was an exception when the branch experienced an unfavourable impact of worldeconomic crisis.
Industrial production structure continues to vary in favour of branches, engaged in extraction
and primary processing of hydrocarbon mineral raw.  So, the share of machine-building varied from
15.9 per cent in 1990. to 3.3 per cent in 2001.  At the same time the share of all branches of fuel and
energy complex (fuel extraction, oil procession, production of energy and heat) in 1990 made up10.2 per cent, and in 2001 achieved 51.7 per cent, the share of metallurgical complex made up
15.6 and 22.1 per cent relatively.
Problems of structural composition of industry are connected with incompleteness of
technological conversions from extraction of raw to production of product with high degree of
readiness to further use and final consumption.
So, there is a lack of productions on deep hydrocarbon raw processing, oil processing is
oriented to fuel version, the raw for oil chemical enterprises for synthetic resins, plastics, chemical
fibers, goods on their basis is not produced.  In textile and sewing industry because of stop and
production decline of yarn the enterprises on output of fabrics, knitted and sewing goods were turned
out to be without raw materials.  There is a similar situation in production of leather, leather goodsand shoes.
The problem of renewal of active part of the main funds, qualitative modification of
technological level of production, raising of its efficiency has become actual. The main volume of
foreign investments is targeted for creation of basic funds of mining industry enterprises (85 per cent),
direct investments are insignificant in processing industry.
The key problems of industry are as follows:  high level wear of active  part of the main funds
in all branches of real sector of economy; low competitiveness of goods of processing industry,including consumer goods; raw orientation of the structure of industrial production and export; low
level of management and marketing investigations at the enterprises, which are in ownership of
Kazakhstani investors; high level of energy expenses  per unit of production  of the main funds wear;
low level of technical development of many enterp rises of processing industry; narrow nomenclature
of production of consumer goods; unstable financial state of many enterprises of processing industryand power energy.
Industrial policy being worked out for the period to 2010, targeted for further increase in
technical and technological potential in fuel-and-energy and mining-and-metallurgical complexes,
generating effective demand.  It should be accompanied by development of production and services in
other branches of economy, including consumer goods, products of heightened goods readiness.WT/ACC/KAZ/37
Page 30
Thus, industrial policy pursues the following main aims:
− creation of capacities on deepened procession of hydrocarbon raw with a view of
receiving of assortment of products and goods;
− provision of conditions for reanimation of enterprises of agricultural machine-building,
machines, equipment, devices and spare parts for basic branches of economy, transport;
− creation of production competitiveness especially with attraction of subjects of medium
and small enterprises, in the branches of light and food industry;
− working out of efficient mechanism of innovat ion development of real sector of economy,
introduction of scientific and technical achievements into production, creation of new
high technology and technological productions.
As a result there will be a multiplicate effect from industry revival, which will lead to creation
of new jobs in other branches of economy, which will decrease social tension in the society and
extend taxation base as a whole.  So, at present in industry of Kazakhstan more than 920,000 people
are engaged, which makes up 14 per cent of total size of working in the economy.  As a result ofpursuing of rational industrial policy in the nearest three-five years it is supposed to increase the
number of engaged only in processing industry  by 40,000-45,000 people, and for five-seven years –
above 100,000 people.
In medium term period it is not real to account for radical structural transformations in
industry.  Growth of volumes of industrial producti on will be provided mainly at the expense of oil
and gas mining industry and metallurgy.  At the same time, these export oriented branches are
subjected to strong impact of world economy, financial and economic crises.
In this connection Kazakhstan in conformity with the provisions of TRIMs Agreement
supposes to request a ten year transition period for withdrawal of measures, laid in the Laws of the
Republic of Kazakhstan "On oil" and "On mineral wealth and mineral wealth use"
(e) State-trading practices
We thank Kazakhstan for its confirmations in response to Questions 58 and 59 in
WT/ACC/KAZ/22.
Question 24
We reserve, however, on whether Kazakhstan has no state trading enterprises to notify under
Article XVII of the GATT 1994, the WTO Unders tanding on that Article, and Article УТЛ  of
the GATS.
Answer:
There is a lack of state trading enterprises in the Republic of Kazakhstan.
(f) Free zones
(g) Free economic zones
Question 25Please update information on the existence and operation of free trade and free economic zones,
noting specifically (a) legal citation authorizing them; (b) the incentives available and theWT/ACC/KAZ/37
Page 31
timeframe for their use; and (c) rules for application of normal, customs requirements for
output of the zones sold in the rest of Kazakhstan.
Answer:
As of today there are  no  special economic zones (SEC) in the Republic.  At the same time by
the Decree of the President of the Republic of Kazakhstan of 29 June 2001 No. 645 since1 January 2002 the special economic zone "Astana – the new city"  has been created for the period
until 2007.
The issues of creation, legal regulation of SEC functioning are established by the Decree of
the President of the Republic of Kazakhstan, effective as Law "On special economic zones in the
Republic of Kazakhstan", by the laws of the Republ ic of Kazakhstan "On taxes and other obligatory
payments to the budget", "On customs in the Republic of Kazakhstan", by banking and other
legislation of the Republic.
By the Law of the Republic of Kazakhstan of 5 July 2001 "On entering amendments and
alterations into some legislative acts of the Republic of Kazakhstan on issues of special economic
zone "Astana – the new city" by entering amendments and  alterations into  the Laws "On  taxes and
other obligatory payments to the budget", "On customs in the Republic of Kazakhstan" tax privileges
and preferences for construction of objects of infrastructure, administrative and housing complexes onthe territory created by SEZ.
Tax preferences are provided with regard to:
− Value added tax on turnover upon realization on the territory of being created zone of
goods (works, services), completely consumed in the process of construction and puttinginto operation  of  objects of infrastructure, housing and administrative complexes (further
objects);
− Land tax on land plots on the SEZ territory, where the construction is being carried out or
objects have been built at the period of SEZ functioning; and
− Property tax on objects, built at the period of SEZ functioning.
Customs preferences - on tax duties and value added tax will be granted with regard to the
import:  machinery and equipment, designed for construction; goods, completely consumed in the
process of construction on the SEZ; goods and equipment, necessary for construction and putting into
operation of  objects in conformity with project-and-budget documentation.
At the same time it should be noted, that legislation of the Republic with regard to the
working SEZ, and will, probably, work in future, doesn't assume any restrictions on the access to
these zones for foreigners, excluding the generally accepted for majority of functioning in the world
of special economic zones of restriction on the place of registration of persons, whom the privileges
are not granted.  In particular, regarding the "Astana is the new city" SEZ, the customs privileges andtax privileges on VAT are granted to the legal persons of the Republic of Kazakhstan, as well as non-
residents, carrying out the activity through the permanent establishment of natural persons, registered
on the territory of Astana, carrying out of enterprise activity without formation of legal person, having
the permanent place of residence in Astana.WT/ACC/KAZ/37
Page 32
(l) Government procurement practices
Question 26
We note Kazakhstan's commitment to join the WTO Agreement on Government  Procurement
after accession, and to make alterations in its laws to meet its provisions.  We would appreciate
updated information on Kazakhstan's efforts in this direction.
Answer:
The Republic of Kazakhstan will consider the issue on accession of Kazakhstan to the
Agreement on Government Procurement after the WTO accession.
V. TRADE-RELATED INTELLECTUAL PROPERTY RIGHTS
Kazakhstan is to be commended for the efforts it has made since 1998 to revise its laws on
intellectual property protection in line with the WTO TRIPS Agreement.
Question 27We are reviewing the legislation provided in WT/ACC/KAZ/23 and the information in
WT/ACC/KAZ/24 and 26, and we will  submit comments in writing.
We note the absence of information on Copyrights in WT/ACC/KAZ/26 and indicates in
WT/ACC/KAZ/24 that there are deficiencies vis-a-vis  the TRIPS Agreement. What steps is
Kazakhstan taking to address the deficiencies from  WTO conformity that exist in its CopyrightLaw?
Answer:
In 20 December 1996 in Geneva the Republic of Kazakhstan signed the International Treaty
of World intellectual property organization (WIPO) on copyright and the International Treaty on
executions and phonograms. But for entering them into force their ratification is required.
Also the Republic of Kazakhstan joined the following international Agreements: Strasbourg
Agreement on international patent classification (Law of the Republic of Kazakhstan of
16 November 2001 No. 257); Nice Agreement on internat ional classification of goods and services for
registration of marks (Law of the Republic of Kazakhstan of 16 November 2001 No. 258); Budapest
Agreement on international recognition of microorganisms depositing for patent procedure purposes(Law of the Republic of Kazakhstan of 16 November 2001 No. 259.
VII. INSTITUTIONAL BASIS FOR TRADE AND ECONOMIC RELATIONS WITH
THIRD COUNTRIES
1. Bilateral or Plurilateral Agreements Relating to Foreign Trade in Goods and Trade in
Services
 We remain interested in Kazakhstan's adhe rence at the time of accession to the WTO
Agreement on Trade in Civil Aircraft, and adoption of "zero" duties for the importation ofaircraft and parts.WT/ACC/KAZ/37
Page 33
Answer:
Currently Kazakhstan do not schedule to join the WTO Agreement on Trade in Aircraft by
the accession date to the WTO.WT/ACC/KAZ/37
Page 34
APPENDIX 1
On the rates of excises on excisable goods, produced in the Republic of Kazakhstan and
imported on the customs territory of the Republic of Kazakhstan, sold on the territory of the Republic
of Kazakhstan, and gambling business
Extract from the Resolution of the Government of the Republic of Kazakhstan of
28 January 2000 No. 137
The rates of excises on excisable goods, produced in the Republic of Kazakhstan
and on the customs territory of the Republic of Kazakhstan,
sold on the territory of the Republic of Kazakhstan,
and gambling business
HS-item code Description Tax baseThe rates of excises
on produced goods
and gambling
businessThe rates of excises
on imported goods
of 2207
2208**All kinds of alcohol (except
supplied for manufacturing
medical and pharmaceuticalpreparations, at presence atcommodity producers of the
license of the Republic of
Kazakhstan for the right ofmanufacture of specifiedproduction, and alsosupplied to state medical
establishments, within the
limits of established quotes)physical volume 300 tenge/1 litre 3 €*/1 litre
Alcohol, supplied for
manufacture of alcoholic
production (except forbeer), at presence atcommodity producers of the
license for the given kind of
activityphysical volume 30 tenge/1 litre 0.3 €/1 litre
Alcoholic production
(except vodka and special
vodka; balms; cognacs;liqueurs; fortified juices andfortified beverages with
volume of the ethyl alcohol
up to 30%)physical volume 80 tenge/ 1 litre 1.7 €/1 litre
Vodka and special vodka physical volume 40 tenge/1 litre 1.7 €/1 litre
Balms (except for balms,
registered according to thelegislation of the Republic
of Kazakhstan as a
medicine)physical volume 50 tenge/1 litre 1.7 €/1 litre
Balms, registered according
to the legislation of the
Republic of Kazakhstan as amedicine)physical volume 10 tenge/1 litre 0.4 €/1 litre
Cognac physical volume 20 tenge/1 litre 1.7 €/1 litre
Liqueurs; fortified juices
and fortified beverages with
volume of the ethyl alcohol
from 12 to 30%)physical volume 70 tenge/1 litre 1.7 €/1 litreWT/ACC/KAZ/37
Page 35
HS-item code Description Tax baseThe rates of excises
on produced goods
and gambling
businessThe rates of excises
on imported goods
Light spirits, fortified juices
and fortified beverages withvolume of the ethyl alcohol
from 1.5 to 30%)physical volume 30 tenge/1 litre 0.4 €/1 litre
of 2204
2205
220600 Wines and wine beverages
(except sparkling and
aerated champagne)physical volume 10 tenge/1 litre 0.4 €/1 litre
Champagne wines,
sparkling and aerated winesphysical volume  20 tenge/1 litre 0.4 €/1 litre
Wine material worked physical volume 10 tenge/ 1 litre 0.4 €/ 1 litre
2203 00 ** Beer physical volume 6 tenge/1 litre 0.2 €/1 litre
2402 ** Tobacco products with filter physical volume 145 tenge /1,000
unit2 €/1,000 unit
Tobacco products without
filter, other productscontaining tobaccophysical volume 95 tenge/1,000 unit 2 €/1,000 unit
of 0301, 0302,
0303, 0304, 0305,1604**Caviar of salmonidae fish on produced goods -
cost, on importedgoods - customs cost100% 100%
of 7113,
710239000, 7114,7116**Articles of jewelry of gold,
silver and platinumon produced goods -
cost, on importedgoods - customs cost10% 10%
271000270 -
271000360**Gasoline (except for
aviation)physical volume 31 €/1 ton
271000610,
271000650,271000690**Gas oils physical volume 0
of 2709 00** Petroleum oils, including
natural gas condensatesphysical volume 0 0
8703 Motor cars customs cost, or
engine capacity10%, but not less
than 0.5 €/cm3
(only forautomobiles withengine capacity
more than 3,000
cm3)
of 9303, 9304,9305**Firearms and gas firearms
(except for got for needs of
bodies of state authority)on produced goods -
cost, on imported
goods - customs cost00
Gambling business (except
lottery)Playing table
The game automatic
device with money
prize
Totalizator cash-desk
Cash-desk of
bookmaker office130-740 Monthly
pay -indices
(MPI)***
5-25 MPI
80-200 MPI
20-100 MPIWT/ACC/KAZ/37
Page 36
HS-item code Description Tax baseThe rates of excises
on produced goods
and gambling
businessThe rates of excises
on imported goods
Organization and
conducting of lotteriesThe declared gain
with a minus of thesums, related to the
prize-winning fund
without inclusion in itof the sum of anexcise10%
* Euro is recalculated in tenge at the rate of National Bank of the
Republic of Kazakhstan per day determined by the customs legislation for payment of customs
payments.
 ** The nomenclature of the goods is defined by as HS-item code, and  by the description of goods.
*** MPI – average annual 775 tenge (for 2001 year)
       Rate of US dollar according to the National Bank rate – average annual 146.7 tenge (for 2001year).WT/ACC/KAZ/37
Page 37
APPENDIX 2
List of Explanatory SPS Topics During Accession to the WTO
Commitments (on the date of
accession)Comments
1. Introduction of new
standards, requirements to
animals health and foodproducts safety shall conformto the principles of SPS
AgreementLegislative base, regulating the issues of sanitary and phytosanitary measures, applied in
the Republic, is at elaboration and making amendments and alterations stage.
The new Law of the Republic of Kazakhstan "On veterinary" was a dopted on 10 July
2002 No.339-II LRK, in February 2002 amendments and alterations were entered into
the "Law of the Republic of Kazakhstan "On plants quarantine", adopted on
11 February 1999 No.344-1.
In elaborated Laws the requirements to health of animals and food products safety are
reflected in conformity with the main principles of SPS Agreement, in particular:
transparency, risk assessment criteria, information availability, equivalence and etc.
Existing standards on veterinary and plants quarantine are at the stage of thorough
revision and harmonization in conformity with international requirements.
If  by  international agreements, ratified by the Republic of Kazakhstan,  other norms,
than those  which are  contained in relevant laws, are established, then under the Article21 of the Law of the Republic of Kazakhstan "On plants quarantine" and the Article 2 of
the Law of the Republic of Kazakhstan "On veterinary" the rules of international
agreements, ratified by the Republic  of Kazakhstan will be applied.
Plants quarantine measures and Veterinary measures
2. Creation of permanent
operating uniforminformation bureauThe Republic of Kazakhstan has a  required data base, which is collected from all the
regions to Veterinary Department and Plants quarantine Department. Informationavailability  by Departments are  provided for all concerned persons  (subparagraph 2 of
the paragraph 1 of the Article 7 of the Law of the Republic of Kazakhstan "On plants
quarantine", a paragraph 12 of the Article 8 of the Law of the Republic of Kazakhstan"On veterinary").
In connection with an adoption of the Enactment of the Government of the Republic of
Kazakhstan No. 1627 of 30 October 2000 "On issues of formation of information-marketing system  (IMS) of the Ministry of Agriculture of the Republic of Kazakhstan",a uniform information centre is being created, providing an operative analytical and
marketing information between agricultural commodity producers and state bodies, as
well as other participants of  agrarian market, including the WTO  member countries.Within the framework of IMS of the Ministry of Agriculture of the Republic ofKazakhstan a website ( www.minagri.kz ) has been created and a regular bulletin
"AgroInform" of the Ministry is being published, in which all accepted  legal acts,
including veterinary science, quarantine and plants protection, are published.WT/ACC/KAZ/37
Page 38
Commitments (on the date of
accession)Comments
3. Principle of (transparency)
openness: notification andaccess to documentationIn amended and supplemented Law
of the Republic of Kazakhstan "Onplants quarantine" the issues ofinformation transparency andavailability are taken into account.
By subparagraph 2 of the paragraph
1 of the Article 7 of the Law of theRepublic of Kazakhstan "On plants
quarantine"  keeping a register of
quarantine objects spreading andgranting of information toconcerned persons are stipulated.
Moreover, in subparagraph 7-1 of
the paragraph 1 of the Article 7 ofthe Law of the Republic ofKazakhstan "On plants quarantine"
creation of data base of availability
and spreading of quarantine objectsin the Republic of Kazakhstan andforeign countries, measures and
arrangements on struggle with them
is stipulated.A full information of state veterinary inspection
in the Republic is collected in the VeterinaryInspection Department.
According to paragraph 12 of the Article 8 of the
Law of the Republic of Kazakhstan "On
Veterinary" the  competence of an authorized
state body in the field of veterinary and itsterritorial sections covers "an organization andensuring of furnishing concerned persons with
information about carried out veterinary
measures, established veterinary rules and norms,other legal acts of the Republic of Kazakhstan inthe field of veterinary".
Moreover, the Republic since 1993 is a member
of International epizootic bureau (IEB) and uses,in this connection, the international information
in the field of veterinary, as well as provides the
members of IEB with information about state ofveterinary-and-sanitary situation on the territoryof the Republic.
a) an appointment of an
agency, responsible for
preparation, dispatching ofnotifications to the WTO andobservance of openness on a
permanent base;In conformity with the Law of the
Republic of Kazakhstan "On plants
quarantine" responsibility forpreparation, dispatching ofnotifications to international
organizations and observance of
openness obligations is imposed onProtection and Plants QuarantineDepartment of Ministry of
Agriculture of the Republic of
Kazakhstan.Under the Law of the Republic of Kazakhstan
"On Veterinary", Veterinary Inspection
Department of the Ministry of Agriculture of theRepublic of Kazakhstan is a competent Centralstate body of veterinary management and
responsible agency in the Republic for
preparation, dispatching of notifications to theinternational organizations.
b) Elaboration of instructionsor articles of law,  enacting
the publication at  early stage
of notifications  in the pressof  supposed  introduction ofa specific measure for
acquaintance and submission
of comments;In the Republic of Kazakhstan the given norm is a prerogative of s ubordinate  legal acts.
In this connection, the norm, stipulating the publishing at early stage of notifications in
the press of supposed introduction of a specific measure for acquaintance and submission
of comments, will be reflected in subordinate  legal acts on the basis of declared in theLaw of the Republic of Kazakhstan "On Veterinary" (the paragraph 12 of the Article 8)and in the Law of the Republic of Kazakhstan "On plants quarantine" (subparagraph 2 of
the paragraph 1 of the Article 7) of information openness.
c) elaboration of provisions,laws or administrative
procedures, stipulatingsubmission of copies ofdocuments of supposed
measures  to the WTO
members;In the Republic of Kazakhstan this norm is a prerogative of s ubordinate legal acts.  In
this connection, the norm stipulating the publis hing at early stage of notifications in the
press of supposed introduction of a specific measure for acquaintance and submission ofcomments will be reflected in subordinate legal acts on the basis of declared in the Lawof the Republic of Kazakhstan "On Veterinary" (the paragraph 12 of the Article 8) and in
the Law of the Republic of Kazakhstan "On plants quarantine" (subparagraph 2 of the
paragraph 1 of the Article 7) of information openness.WT/ACC/KAZ/37
Page 39
Commitments (on the date of
accession)Comments
d) request for provision  to the
WTO members and the publicof reasonable term forsubmission of comments inconformity with the Law or
administrative procedure, as
well as introduction ofacceptance and considerationof comments without
discrimination.Elaborated draft laws, concerning the interests of a majority of citizens (including "On
Veterinary", and "On plants quarantine") are published in the official press for overalldiscussion with indication of proposals and remarks a cceptance terms. Terms are
established  by developer, usually within a 30 day term.
In the Republic of Kazakhstan this norm is a prerogative of s ubordinate legal acts.  In
this connection, the norm stipulating publica tion at early stage of notifications in the
press of supposed introduction of a specific measure for acquaintance and submission ofcomments will be reflected in subordinate legal acts on the basis of declared in draft Law
of the Republic of Kazakhstan "On Veterinary""(the paragraph 12 of the Article 8) and
in the Law of the Republic of Kazakhstan "On plants quarantine" (subparagraph 2 of theparagraph 1 of the Article 7) of information openness.
4.The necessity of sanitaryand phytosanitary measuresof applied only formaintenance of  protection of
health of people and animals.Kazakhstan applies phytosanitary
measures to an extent, which isrequired for maintenance ofprotection of health of people,
animals and plants.
According to the paragraph 1 of the
Article 4 of the Law of the Republic
of Kazakhstan "On plants
quarantine" one of the principles ofstate policy in the field of plantsquarantine is  ensuring of protection
of plants resources and plants
products against damage anddestruction by quarantine objectswith a view of  maintenance of food
and raw  safety of the country.Kazakhstan ensures observance and applying of
sanitary measures within the framework of IEB.Under the paragraph 7 of the Article 4 of the Lawof the Republic of Kazakhstan "On Veterinary"
unjustified restrictions in realization of cargo
under inspection of veterinary inspection are notpermitted while carrying out veterinary measureswith a view of provision of veterinary-and-
sanitary favorable situation.
5.Scientific substantiation:
provisions, regulating
protection of health of people,
animals and plants shall bescientifically substantiated.In the paragraph 3 of the Article 4
of the Law of Republic of
Kazakhstan "On plants quarantine"
it is stated that the principles ofcarrying out of state measures forplants quarantine  on the territory of
the Republic are as follows:
objective, scientificallysubstantiated assessment of possibleimpact of quarantine objects onvegetative resources and products
of vegetative origin and prevention
of  possible damage caused by themAny provisions, instructions, offered for animals
protection and with a view of safety for health of
people undergo an obligatory scientific
examination and approbation, in this case,international standards and norms of IEB aretaken into consideration.
In the paragraph 5 of the Article 4 of the Law of
Republic of Kazakhstan "On veterinary" it isstipulated the norm, which says about"elaboration of veterinary rules and norms on the
scientific basis with account of assessment of
objective epizootic  situation and internationalnorms in the field of veterinary".
6. Harmonisation: up topossible limits, member-countries apply internationalstandards and instructions
while establishing SPS
measures.In the subparagraph 8 of paragraph
1 of the Article 7 of the Law ofRepublic of Kazakhstan "On plantsquarantine" it is reflected that
phytosanitary service elaborates
jointly with scientific and researchorganisations the quarantinemeasures on the basis of scientific
principles of phytosanitary risk
assessment with account ofrequirements of international normsand recommendations and carries
out control over their fulfilment by
natural and legal persons, regardlessof the form of ownershipJointly with Tasis project the work on bringing
into line of the republican veterinary legislationwith international standards and norms is beingcarried out.
In case of elaboration of new standards the
requirements of International veterinary Code anddirectives of European Union are taken into
account.WT/ACC/KAZ/37
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Commitments (on the date of
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7. Principle of equivalence:
member countries shallrecognise various measures,which ensure the equivalentprotection level.Principle of equivalence is reflected
in the Law of Republic ofKazakhstan "On plants quarantine"in the paragraph 2 of the Article 13,where it is stated that quarantine
measures of other countries are to
be recognised if they ensure theproper level of phytosanitaryprotection, applied in the Republic.Kazakhstan, being the IEB member carries out
consultations in case of difference of approachesof veterinary and sanitary measures.
Principle of equivalency will be reflected in legal
act "Veterinary and sanitary requirements  in case
of export, import and transit of cargo under stateveterinary inspection"
8. Risk assessment:elaboration of scientific proofand carrying out of risk
assessment with a view of
provision of scientificsubstantiation and applicationof measures only to an extent,
which is necessary for
protection of life and healthof people, animals or plants.Pursuant to the paragraph 3 of the
Article 4 of the Law of  Republic ofKazakhstan "On plants quarantine"
the principles of carrying out of
state measures on plants quarantineon the territory of the Republic ofKazakhstan are as follows:
"objective, scientifically
substantiated assessment of possibleimpact of quarantine objects onvegetative resources and products
of vegetative origin and prevention
of possible damage caused by themIn veterinary practice of the Republic there are
own procedures of diagnostics, treatment andspecific preventive measures of infectious
diseases of animals, which are quite reliable on
the territory of the Republic. While carrying outsuch procedures the risk assessment is applied,which includes elements of observation,
scientifically substantiated proof, assessment
policy, possible risk management, introduction ofmeasures, liquidation, which meets therequirements of International veterinary Code
(paragraph 5 of the Article 4 of the Law of
Republic of Kazakhstan "On veterinary"
9. Regional conditions:
sanitary or phytosanitary
measures shall provideregional peculiarities both thecountry of origin and
place of its destination.Subparagraph 5 of paragraph 1 of
the Article 7 of the Law of Republic
of Kazakhstan "On plantsquarantine" says that an authorisedstate body "carries out quarantine
examination, laboratory expertise
and phytosanitary certification ofimported and exported sub-quarantine products with account of
phytosanitary characteristics of the
territory and country of its originand place of destination."In paragraph 3 of the Article 20 of the Law of
Republic of Kazakhstan "On veterinary" it is
stipulated  that import, export and transit of cargounder inspection of state veterinary inspection arecarried out in conformity with epizootic situation
assessment of appropriate territories.WT/ACC/KAZ/37
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Commitments (on the date of
accession)Comments
10. Non-discrimination
principle: measures shall notbe applied at will or  to be ofarbitrarily  discriminationcharacter and differ  for
member-countries, either
with regard to domestic orforeign suppliersIn the Republic of Kazakhstan in
the field of plants quarantine thesame regime is applied to all theforeign suppliers as to domesticones.
In case of granting of import
quarantine license, certifying theconformity of imported or transit
products to necessary phytosanitary
requirements in the Republic ofKazakhstan, the same  criteria areapplied as to the domestic suppliers
(Article 20 of the Law of Republic
of Kazakhstan "On plantsquarantine").In the Republic of Kazakhstan  in the field of
veterinary the same regime is applied to all theforeign suppliers as to domestic ones.
In case of issue of veterinary certificate,
certifying the conformity of imported or transit
products to necessary sanitary requirements thesame criteria are applied as to the domesticsuppliers.
In case of unfavourable situation in any country
with regard to animals' diseases of the list A andB of IEB in the Republic of Kazakhstan
restrictions on import, export and transit of
products under inspection are applied. Suchinformation is obtained by the Republic since1993 from the International epizootic bureau.
Discrimination with regard to domestic or foreign
supplier is not admitted.  The main condition is afavourable situation on the territory, where the
product was prepared, conformity of veterinary
documents and availability of import or transitlicense of the country-importer.
Also in the paragraph 7 of the Article 4 of  the
Law of Republic of Kazakhstan "On veterinary"the paragraph on "non-admittance ofunreasonable  restrictions in realisation of cargoes
under inspection of state veterinary inspection
while carrying out of veterinary measures with aview of ensuring of veterinary-sanitaryfavourable situation.
11. Procedure of control,inspection and licensing:procedures, including the
rules for  receiving of license
for use of additives or forpermission of admitteddeviation from the impuritystandards for products, drinks
and forages shall  correspond
to the Provisions of SPSAgreement.Currently this norm is prev ailed within the framework of intergovernmental agreements
of the Republic of Kazakhstan.
Together with it, the legal base of the Repu blic of Kazakhstan regarding  the procedure
of control, inspection and licensing is being brought into line with internationalstandards.  This norm will be fulfilled upon bringing them into line.
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