RESTRICTED
WORLD TRADE WT/ACC/KGZ/5/Add.2
6February 1997
ORGANIZATION(97-0441)
Original: English
ACCESSION OFTHE KYRGYZ REPUBLIC
Questions andReplies
totheMemorandum ontheForeign Trade Régime
(Document WT/ACC/KGZ/3)
Theadditional questions submitted byMembers andthereplies thereto provided bythe
authorities oftheKyrgyz Republic arereproduced hereunder. Theannexes mentioned inthisdocument
areavailable intheSecretariat (Accessions Division, Room 1126) forconsultation.WT/ACC/KGZ/5/Add.2
Pageii
TABLE OFCONTENTS
Page
No.Question
No.
II. ECONOMY, POLICIES AND FOREIGN TRADE 1 1-12
1. Economy 1 1-6
(a) General description 1 1-6
2. Economic Policies 2 7-12
(b) Monetary andfiscal policy 2 7-10
(e) Competition policy 3 11-12
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES
AFFECTING FOREIGN TRADE INGOODS AND TRADE IN
SERVICES4 13-15
4. Legislative Programmes orPlans toChange theRegulatory
Régime4 13-15
IV. POLICIES AFFECTING TRADE INGOODS 5 15-62
1. Import Regulation 5 15-57
(b) Characteristics ofnational tariff 5 15-19
(c) Tariff quotas, tariff exemptions 6 20-22
(d) Other duties andcharges, specifying anycharges forservices
rendered6 23-27
(f) Import licensing procedures 7 28-33
(h) Customs valuation 10 34-38
(i) Other customs formalities 11 39-40
(k) Application ofinternal taxes onimports 12 41-49
(l) Rules oforigin 16 50
(m) Anti-dumping régime 16 51
(n) Countervailing dutyrégime 17 52
(o) Special purpose duties 17 53-57
2. Export Regulation 18 58-62
(d) Export licensing procedures 18 58-62
(f) Export financing, subsidy, andpromotion policies 20 -
3. Internal Policies Affecting Foreign Trade inGoods 20 63-99
(b) Technical regulations andstandards, including border measures 20 63-81
(c) Sanitary andphytosanitary measures 24 82-88
(d) Trade-related investment measures 25 89
(e) State-trading practices 26 90-91
(h) Trade-related environmental policies 27 92-97
(j) Government-mandated countertrade andbarter 28 98
(l) Government procurement practices 29 99
4. Policies Affecting Foreign Trade inAgricultural Products 29 100-104
(a) Imports 29 100-101
(b) Exports 29 102-103WT/ACC/KGZ/5/Add.2
Pageiii
Page
No.Question
No.
(e) Internal policies 30 104
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 30 105-156
1. General 30 105-111
(a) Intellectual property policy 30 105-106
(c) Membership ofinternational intellectual property conventions 31 107-109
(d) Application ofnational andMFN treatment toforeign nationals 32 110-111
2. Substantive Standards ofProtection 33 112-113
(a) Copyright andrelated rights 35 114-122
(b) Trademarks, including service marks 37 123-128
(c) Geographical indications, including appellations oforigin 40 129-130
(d) Industrial designs 40 131-132
(e) Patents 41 133-138
(f) Plant variety protection 43 139-140
(g) Layout designs ofintegrated circuits 43 141-146
(h) Requirements onundisclosed information 44 147-149
(i) Anyother categories ofintellectual property 45 150
3. Measures toControl Abuse ofIntellectual Property Rights 45 151
4. Enforcement 46
(a) Civil judicial procedures andremedies 46 152-153
(b) Provisional measures 46 154
(d) Anyspecial border measures 46 155
(e) Criminal procedures 47 156
VI. TRADE-RELATED SERVICES REGIME 48 157-159
3. Market Access andNational Treatment 48 -
(f) Limitations ontheparticipation offoreign capital 48 157
(g) Measures providing forlessthanthetreatment accorded to
national services orservice suppliers48 158-159
4. Most Favoured Nation Treatment 49 160-161
5. Description oftheMarket andtheMechanism forRegulating the
Most Prominent Service Sectors49 162
(f) Transport services 50 162
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC
RELATIONS WITH THIRD COUNTRIES50 163-176
1. Bilateral, Plurilateral andMultilateral Agreements Relating to
Foreign Trade inGoods andTrade inServices50 -
(b) Plurilateral agreements relating toforeign trade ingoods and
trade inservices50 -
2. Economic Integration, Customs Union andFreeTrade
Agreements50 163-176WT/ACC/KGZ/5/Add.2
Pageiv
Page
No.Question
No.
(b) Customs union agreements 50 163-168
(c) Freetrade areaagreements 53 169-176WT/ACC/KGZ/5/Add.2
Page1
II. ECONOMY, POLICIES AND FOREIGN TRADE
II.1 Economy
II.1(a) General description
Question 1.
Please confirm whether theprivate sector contributed 77or87percent oftheRepublic 'stotal
agricultural production in1995 (typo intext).
Answer:
Theaccurate amount isseventy-five point fourpercent (75.4%).
Question 2.
Please identify anddescribe thenon-private entities which contributed theremaining share of
agricultural production.
Answer:
Thefigure intheMemorandum indicating thatseventy-eight percent (75.4%) ofagricultural
production in1995wascontributed bytheprivate sector needs clarification. According toaresolution
oftheCabinet ofMinisters "OnAgriculture," agricultural producers aretobedivided intothree
categories: (i)stateagricultural enterprises, kolkholzes andpeasant farmassociations (ii)personal
farms and(iii)peasant farms. Inaccordance withthisresolution, theMinistry ofAgriculture collects
gross statistics foreachofthethreespecified categories. Producers falling intothelattertwocategories,
which areentirely private, contributed seventy-five pointfourpercent (75.4%) ofagricultural production
in1995. The150enterprises falling within thefirstcategory contributed theremaining twenty-four
point sixpercent (24.6%).
However, itmustbenoted thatkolkhozes andpeasant farmassociations (PFA's),which are
included within thefirstcategory, arealsoentirely private agricultural entities. They arecompletely
owned andcontrolled bytheirrespective members. Thestatedoesnotownorcontrol theiroperations,
property orresources. Furthermore, theyreceive nostatesupport. APFAisusually akolkhoz that
hasbeenreorganized byitsmembers. Thedifference between akolkhoz andaPFAisthat,inakolkhoz
eachmember owns anundivided share intheentire enterprise, andinaPFAeachmember hasthe
exclusive righttoworkaspecified parcel oflandandhasanexclusive ownership rightincertain specified
productive assets (such asbuildings and/or equipment).
Onlygoskhozes arestillstate-owned; however, anymember ofagoskhoz maytakeaparcel
representing hisshare inthegoskhoz andwithdraw thisfromthegoskhoz, thereby creating aprivate
farm. Thisisanon-going process asmore andmore members ofgoskhozes takeadvantage ofthis
right. Although allgoskhozes aresupposed toreceive some statesupport, duetoalackoffunds, the
statehasbeenunable toprovide thissupport, except tothose fewgoskhozes engaged inanimal breeding
orseedproduction. Duetothelackofstatesupport, itisbelieved thattheresources oftheother
goskhozes willbecompletely privatized bytheirmembers within thenextfewyears.
Question 3.
DoState-owned means ofagricultural production (i.e., collective farms) continue toexistinthe
Kyrgyz agricultural sector?WT/ACC/KGZ/5/Add.2
Page2
Answer:
Yes
Question 4.
Ifso,what istheir share oftotalagriculture production?
Answer:
Somewhat lessthantenpercent (10%). Seeanswer toquestion 2above.
Question 5.
Does theKyrgyz Republic intend toprivatize further itscollective farming system?
Answer:
Yes
Question 6. When doestheKyrgyz Republic believe thatitwillhavecompleted itsprivatization
program?
Answer:
Currently,theprivatizationprogramfor1997isbeingdeveloped.During1997theprivatization
program for1998 and1999 willbedeveloped. Itistooearly topredict thedateonwhich theentire
program willhavebeencompleted, butitisenvisaged thattheprogram willbecompleted before 2005.
II.2 Economic Policies
II.2(b) Monetary andfiscal policy
Question 7.
TheMemorandum states thatconsiderable progress hasbeen achieved with regard tothe
privatization ofmedium andlarge enterprises, andthattheprocess ofprivatization willcontinue
under the1996-1997 program. Does theKyrgyz Republic consider theprivatization ofsmall
enterprises tonowbecomplete?
Answer:
Privatization ofsmall enterprises engaged intheproduction oroffering ofgoods hasbeen
completed; however, thesituation isdifferent forservice enterprises. Such enterprises include the
following typesofservice providers: educational institutions, scientific institutions, cultural institutions,
recreationalandentertainmentfacilities,tourismserviceproviders,hotels,healthresorts,sportsfacilities
andhealth careproviders. Inaccordance withtheDenationalization andPrivatization Program for
1996-1997, thestateistoretain a70%interest inthese entities. Privatization ofallsmall enterprises
isplanned tobefinished by1999.
Question 8.
TheMemorandum states thattheprivatization process isopentoforeign anddomestic participation
according tothesame rules. Arethecurrent procedures published andwhere cantheybefound?
Answer:
Theprocedures applicable toprivatization aredeveloped andmaintained bytheStateProperty
Fund. Although suchprocedures arenotusually formally "published," theyaremade available by
theState Property Fund toanyinterested person upon request. Currently, several private publishersWT/ACC/KGZ/5/Add.2
Page3
anddatabasecompanies routinely collect andpublish suchprocedures, aswellaslaws, resolutions,
decrees, regulations andrules.
Question 9.
Your memorandum states thatthelandprivatization program willresume inthefallof1996,
andthatanelement oftheplanistocreate private ownership ofland. What isthecurrent status
ofthelandreform program ?What isthestatus oftheParliamentary consideration ofalawto
create theright toprivate ownership ofland?
Answer:
The memorandum discusses landreform onlywithin thecontext oftheprivatization of
agriculture.Foradescriptionofthecurrentsituationregardingagriculturalprivatization,seetheanswers
toquestions 2and5onPartII,Section 1(a)above.
TheCabinet ofMinisters iscurrently considering anewdraftofalawentitled "OnProperty
Rights inLand." Thedraftlawwasdeveloped bythegovernmental working group onthematter created
pursuant toInstruction No.105-p oftheCabinet ofMinisters of22April 1996. Thisdraft law
establishes private property rights inland; however, evenifapproved bytheCabinet ofMinisters
andsubmitted toandpassed bytheParliament, thislawcannot come intoeffect untilthecurrent
constitutional prohibition ontheprivate ownership oflandhasbeeneliminated. Therefore, itisunlikely
thatsuchalawwillcome intoeffect until, attheearliest, 1999.
Question 10.
When doestheKyrgyz Republic believe thatitwillhave completed itsprivatization program?
Answer:
Weassumethisquestionisdirectedtoagriculturalprivatization.Foradescriptionofthecurrent
situation regarding agricultural privatization, seetheanswer toquestion 2onPartII,Section 1(a)above.
Fornon-agricultural privatization, thePrivatization Program for1998-1999 willbedeveloped in1997.
Itistooearly topredict thedateonwhich theentire privatization program willhavebeencompleted,
butitisenvisaged thattheprogram willbecompleted before 2005.
II.2(e) Competition policy
Question 11.
TheMemorandumstatesthat"opencompetitioncurrentlyexistinalmostallsectorsoftheeconomy,
"butthat"natural," "permitted" and"temporary" monopolies exist, withthevarious categories
of"natural" monopolies specifically mentioned. Please identify thesectors characterized bythe
dominance of"permitted" and"temporary" monopolies.
Answer:
Thefollowing are"permitted" monopolies:
- "Kyrgyzstan AbaZholdoru" (airtransportation -tobeprivatized in1997);
- State Joint Stock Company "Kyrgyzmunaizat" (oilcompany);
- Jalal-Abad OilProcessing Plant;
- State concern "Uchkun" (printing house);
- State concern "Akyl" (printing house);
- Production Association "Kyrgyzkomur" (coal); and
- State concern "Kyrgyzaltyn" (gold).WT/ACC/KGZ/5/Add.2
Page4
"Temporary" monopolies, numbering 31,predominate inmachine-building, textiles andfoodindustries.
Question 12.
How many entities characterized as"permitted" and"temporary" monopolies arecurrently
regulated bytheAnti-monopoly Department oftheMinistry ofEconomy?
Answer:
AtthistimetheAnti-monopoly Department regulate thefollowing "permitted" monopolies:
- thenational aircompany "Kyrgyzstan AbaJoldoru",
- SJSC "Kyrgyzmunaizat" (oilcompany);
- State concern "Uchkun" (printing house); and
- State concern "Akyl" (printing house).
Therest"permitted" monopolies arebeing studied.
None ofthe"temporary" monopolies iscurrently regulated; however, theactivities andprices
ofeacharemonitored toensure thatitdoesnotabuse itsdominant position.
III. FRAMEWORKFORMAKINGANDENFORCINGPOLICIESAFFECTINGFOREIGN
TRADE INGOODS AND TRADE INSERVICES
III.4 Legislative Programs orPlans toChange theRegulatory Régime
Question 13.
According totheMemorandum, theParliament 'swork program for1996 includes, inter alia,
preparation ofthefollowing legislation: OntheProcurement ofGoods (Works) andServices,
OnState Enterprises, OnPatent Rights, OnTrademarks, Service Marks andAppellations of
Origin, OnCopyright andRelated Rights, OnForeign Investment, aCustoms Code and
Amendments tothelawOnGeneral Principles ofDenationalization, Privatization and
Entrepreneurship. With regard totheaforementioned legislative changes inparticular, what
isthetimeframe forthecompletion ofeach? Werequest thattheKyrgyz Republic furnish drafts
ofthese legislative changes forWorking Party review.
Answer:
Allabove mentioned draftlawsareincluded intotheplanoftheParliament 'swork for1997.
Time frame tocomplete thework oneachofthese legislative actshasnotbeendetermined.
Drafts ofthese legislative actsaregiven inAnnexes A-1through A-6,andC-1through C-3.
Question 14.
Does theGovernment oftheKyrgyz Republic publish drafts ofnew, revised oramended laws
seeking public comment? Ifso,inwhich publications might theyappear?
Answer:
ThelawdoesnotbindtheParliament ortheGovernment topublish drafts ofnew, revised
oramended lawsforpublic comment. Usually, draft lawsarepublished inthefollowing official
publications: Vedomosti Jogorku Kenesha, Slovo Kyrgyzstana, Erkin Too andNasha Gazetta..WT/ACC/KGZ/5/Add.2
Page5
IV.POLICIES AFFECTING TRADE INGOODS
IV.1 Import Regulation
IV.1(b) Characteristicsofnationaltariff,customstariffnomenclature(HS),typesofduties,general
description ofthecustoms tariff structure, weighted average level ofduties onmain
customs tariff groupings, application ofMFN tariff rates, tariff preferences
Question 15.
What isthelegislative status oftheproposed Customs Tariff Law, which wastohave been
introduced bytheCabinet ofMinisters by30September 1996?
Answer:
Itisunder consideration byaParliamentary committee. Once approved bythecommittee,
itwillgobefore theParliament asawhole forapproval. Itisincluded inthe1997 work planforthe
Parliament butnospecific timeschedule foradoption hasbeenset.
Question 16.
When doestheKyrgyz Republic anticipate completing itsnewtariff schedule? Please provide
acopy ofittotheWorking Party.
Answer:
Itiscurrently before theCabinet ofMinisters. Thedraftofnewthetariffschedule isprovided
inAnnex 10ofWT/ACC/KGZ/3.
Question 17.
WT/ACC/KGZ/3 notes thatthere aresome structural andcoding differences between theexisting
tariff nomenclature andtheInternational Harmonized System.
Answer:
TheKyrgyz Republic doesnothaveitsowntariff nomenclature, butinstead usesthetariff
nomenclature inforceinRussia. Russia wasscheduled tohave adopted theHarmonized Tariff System
byJanuary 1,1997. Ifandwhen Russia hasadopted thatsystem, theKyrgyz Republic willusethe
HSnomenclature.
Question 18.
Willthenewtariff regime retain theexisting import nomenclature?
Answer:
Seethepreceding answer.
Question 19.
Willthese differences beeliminated under theproposed Customs Tariff Law?
Answer:
Seetheanswer toquestion 17above.WT/ACC/KGZ/5/Add.2
Page6
IV.1(c) Tariff quotas, tariff exemption
Question 20.
WT/ACC/KGZ/3reportsthattechnicalequipment,rawmaterials,materials,reagents,components,
replacements, spare parts, semi-manufactures andother articles, thatareexempt from customs
duties when theyareimported bydomestic business enterprises fortheproduction offinalproducts.
Willtheproposed Customs Tariff Lawretain these dutyexemptions?
Answer:
Yes
Question 21.
Please identify, byHStariff linenumbers, theitems andtariff categories eligible forthese
exemptions.
Answer:
Individual domestic business enterprises mustapply totheMinistry ofIndustry andForeign
Trade toreceive these exemptions.
Question 22.
Please indicate approximately what portion oftheKyrgyz Republic 'simports inarecent
representative period made useofthese exemptions.
Answer:
There arenostatistics available ontheportion ofimports entered under thisexemption.
IV.1(d) Other duties andcharges, specifying anycharges forservices rendered
Question 23.
Allfeesandcharges related tocustoms services, e.g.,customs processing, licensing, sanitary and
standards certification, must conform totheprovisions ofArticle VIIIoftheGATT 1994, e.g.,
thattheynotconstitute abarrier totrade andthattheyapproximate thecostoftheservices
rendered fortheindividual import transaction. Feesapplied without functional justification or
thatgenerate revenue inexcess ofthecostoftheservice arenotcompatible withWTO. Weexpect
thatallservice feesapplied toimports willbereviewed andamended tomeet theWTO criteria
prior tothedateofaccession.
Both theexisting andproposed Customs Codes provide forthepayment ofcustoms service fees
based upon astated percentage ofthevalue ofgoods imported. Thismethod ofcharging customs
feesisnotconsistent withArticle VIIIoftheGATT 1994 which limits theamount offeestothe
approximate costofservices rendered. What hastheKyrgyz Republic done tomodify thisfee
structure tobring itintoconformity withWTO provisions?
Answer:
TheGovernment intends toamend theproposed Customs Code toensure thatfeesandcharges
related toimportation arelimited inamount tothecostofservices provided asrequired byArticle
VIIIoftheGATT.WT/ACC/KGZ/5/Add.2
Page7
Question 24.
Theproposed Customs Code alsoapplies different service feestocommercial andnon-commercial
importations. What isthebasis forthedifference infeesforcommercial versus non-commercial
importations?Whatcriteriaareusedtodistinguishcommercialfromnon-commercialimportations?
Answer:
Cost ofprocessing fornon-commercial importations islessthanforcommercial ones.
Non-commercial importations areitems imported forpersonal useandnotforresale. Since this
distinction isfound intheproposed Customs Code, which hasnotyetbeenpassed, nocriteria have
yetbeenestablished bytheStateCustoms Inspectorate forthepractical implementation ofthisprovision.
Question 25.
TheMemorandum states that, asopposed totheexisting Customs Code, the"Proposed Customs
Code" currently doesnotcontain therequirement thatfeesforlicenses, customs brokers, storage,
goods escort, information andconsultancy, andparticipation incustoms auctions, notexceed the
approximate value ofservices rendered. Does theKyrgyz Republic plan toincorporate this
requirement intothefinal version ofthenewCustoms Code?
Answer:
Yes.
Question 26.
Why wasthisprovision dropped?
Answer:
Itisunclear.
Question 27.
TheMemorandum notes thatanti-dumping, countervailing andspecial-purpose duties are
authorized under theexisting Customs Tariff Lawandsimilar duties areprovided forinthe
proposed Customs Tariff Law. Towhat extent arethese duties alsoprovided forinArticle 23
oftheCustoms Code of2July1992?
Answer:
These duties were notprovided forinArticle 23oftheCustoms Code ofJuly1992.
IV.1(f) Import licensing procedures
Question 28.
Section II.1.(b) (Current Economic Situation) oftheMemorandum states thattheKyrgyz Republic
haseliminated import andexport licensing forthevast majority ofgoods. Annex 3of
WT/ACC/KGZ/3 indicates thattheonlylicensing requirements leftareapplied onimports for
health, consumer orenvironmental welfare andsafety, andnational security purposes. Please
providealistofanyagriculturalandfoodcommoditiesthatarecurrentlysubjecttoimportlicensing
foranyreason, e.g.,safety certification, sanitary regulations, etc.
Answer:
Agricultural andfoodcommodities arenotsubject tolicensing. Allitems subject tolicensing
arelisted inTable 3-1ofAnnex 3totheMemorandum. Fooditems thataresubject tosafety certification
asdescribed inPartIVSection 3(b)areasfollows:WT/ACC/KGZ/5/Add.2
Page8
- Products ofagriculture andfoodindustry subject tosafety certification:
0201-0210 Meat andedible meatsub-products
0301-0307 Fishandcrustaceans, shellfish andother water invertebrates
0401-0410 Milk andmilkproducts, poultry eggs, natural honey, foodproducts
ofanimal origin
0701-0714 Vegetables, edible tuber crops androot-crops
0901-0910 Coffee, tea,spices
0801-0814 Edible fruitandnuts, citrus andwater-melon croppeel
1001-1108 Grain bread
1101-1109 Products offlour-and-cereals industry, malt, starch, inuline, wheat
gluten
1501-1522 Lard andoilofanimal andvegetable origin, products oftheir
decomposition
1601-1605 Products made ofmeat, fish, crustaceans, shellfish, other water
invertebrates
1701-1704 Sugar andconfectionery made ofsugar
1801-1806 Cocoa anditsproducts
1901-1905 Products made ofgrain, flour, starch andmilk, flour confectionery
products
2001-2009 Products made ofprocessed vegetables, fruitandnuts
2101-2106 Other foodstuff
2201-2209 Alcoholic andsoftdrinks, vinegar
2401-2403 Tobacco andindustrial tobacco substitutes
2501 Salt
2301-2309 Products offodder industry
Question 29.
Please describe indetail theadministration oftheimport licensing system.
Answer:
Applications mustbeobtained fromtheOffice oftheMinistry ofIndustry andForeign Trade.
Then theimporter mustsubmit theapplication totheappropriate expert statebodyforapproval. Once
approved bytheexpert statebody, theform must thenbereturned totheMinistry ofIndustry and
Foreign Trade andsubmitted withallother required documents forfinalapproval.
Theimport licensing system isdescribed infurther detail inAnnex 3totheMemorandum.
Question 30.
Weseekconfirmation ofanyareas oftheWTO Agreement onImport Licensing Procedures where
theKyrgyz Republic believes itisnotnowabletofullyimplement theAgreement from thedate
ofaccession.Forexample,Kyrgyzadministrativeguidancesuggestsapprovaloflicenseapplications
within 20dayswhereas theWTO Agreement onImport Licensing Procedures callsforamaximum
of10daysforallautomatic licenses. Another problem istherequirement thatimporters obtain
multiple "expert" certifications from various different Government entities prior tobeing able
toobtain animport license from theMinistry ofIndustry andTrade.
Please indicate howthisandanyother deficiencies willbeaddressed prior toWTO accession.WT/ACC/KGZ/5/Add.2
Page9
Answer:
TheGovernment willrevise itsimport licensing system toensure conformity withtheWTO
Agreement onImport Licensing Procedures. TheKyrgyz Republic believes thatitwillbeabletofully
implement theAgreement from thedateofaccession.
Question 31.
WT/ACC/KGZ/3 paragraph IV(c)(xii) notes thatimports oftechnical equipment, rawmaterials,
materials, reagents, components, replacements, spare parts, semi- manufactures andother articles,
which areimported bydomestic business enterprises fortheproduction offinalproducts inthe
Kyrgyz Republic, areexempted from customs duties. Please describe thelicensing process for
obtaining thisdutyexemption, intheform ofaresponse totheQuestionnaire onimport licensing
procedures.
Answer:
Toreceive thisexemption, arequest must bemade bythedomestic business enterprise to
theMinistry ofIndustry andForeign Trade. TheMinistry ofIndustry andForeign Trade generally
onlyreviews thetypeofproduct andthequantity tobeimported. Once approved bytheMinistry
ofIndustry andForeign Trade, finalapproval mustbeobtained bytheCabinet ofMinisters. Ifsuch
approval isobtained, theCabinet ofMinisters willissuearesolution specifying theparticular product,
thequantity andtheimporting company. Thecountry oforigin ofthemerchandise isnotaconsideration
inthegranting ofthelicense.
Question 32.
Aretheadministrative procedures andguidelines fortheKyrgyz import licensing system published
andavailable tothepublic? Ifso,inwhat publication aretheprocedures found?
Answer:
Yes,theyarepublished inthemonthly scientific journal Economics, which publishes the
normative actsoftheKyrgyz Republic.
Question 33.
Weunderstand thatthere areadditional licensing provisions intheRussia-Belarus-Kazakstan
Customs Union Agreement concerning theimportation ofprecious metals andstones. Please
indicate anyother proposed licensing provisions intheAgreement, describe theneed forthese
requirements, andprovide information ontheirapplication suchasthatprovided fortheKyrgyz
Republic 'scurrent import licenses inAnnex 3.
Answer:
Toourknowledge, there arenoimport orexport licensing requirements intheactual
Russia-Belarus-Kazakstan Customs Union Agreement, orintheagreement providing forthejoining
oftheKyrgyz Republic. However, pursuant tothe"Agreement between theGovernment oftheKyrgyz
Republic andtheGovernment oftheRussian Federation ontheCommon Order ofRegulating Foreign
Economic Activity," theCabinet ofMinisters issued Resolution No.56of6February 1996describing
theitems forwhich animport licensing regime isenvisaged. NotethatResolution No.56,byitsown
terms, doesnotbecome effective untiltheAgreement providing forthejoining oftheKyrgyz Republic
totheCustoms Union hasbeenratified.WT/ACC/KGZ/5/Add.2
Page10
Resolution No.56provides fortheintroduction ofanimport licensing regime forprecious
metals andstones, industrial wastes, pharmaceuticals, medical andveterinary equipment, chemical
plant protection substances, military uniforms anddecoding equipment.
Resolution No.56alsoprovides fortheintroduction ofanexport licensing regime for(i)
certain specified seafood products (e.g., fish,molluscs, crabs, caviar), (ii)decoding equipment, (iii)
palaeontology artifacts, (iv)geology andmineralogy samples. (v)precious metals andarticles thereof,
(vi)precious andsemi-precious stones andarticles thereof, (vii)wildanimals, wildplants, ivory, horns,
hooves, coral, andthelike,(viii) organic rawmaterial fortheproduction ofpharmaceuticals, (ix)
weapons andspare partsthereof, (x)explosives, (xi)nuclear materials, (xii)military works andservices,
(xiii) antiquities, (xiv) information onmineral andfossil fueldeposits, (xv)narcotics, psychotropic
items, poisons, (xvi)material andrawmaterial, equipment, technologies andinformation ofamilitary
character, (xvii) dual-use material, equipment andtechnologies, (xviii) pharmaceuticals, (xix)means
ofprotection frommilitary poisons -e.g.,gasandbiologic weapons -andthepartstherefor (xx)military
uniforms andattributes thereof.
Theabove licensing requirements areintended tofurther health, safety and/or national security
purposes.
AsResolution No.56iscontingent upon theratification oftheCustoms Union Agreement,
theimplementing regulations havenotyetbeendeveloped.
Discretionary import licensing forprotective purposes isprohibited bytheWTO except when
specifically justified, Adoption bytheKyrgyz Republic oflicensing requirements thatcannot bejustified
onhealth, safety, ornational security grounds willcomplicate itsaccession process.
IV.1(h) Customs valuation
Question 34.
Annex 4toWT/ACC/KGZ/3 states thatcurrent legislation neither incorporates norotherwise
provides forimplementation ofkeyprovisions oftheWTO Agreement ontheImplementation
ofArticle VIIoftheGATT 1994 (Customs Valuation Agreement), e.g.,thattheprohibitions of
Article 7.2(b),(c),(d)and(f)oftheWTO Agreement onCustoms Valuation arenotexpressly
delineated intheProposed Customs Code, thatthere isnoprovision tousethehierarchy of
valuation methods, thatcertain transparency provisions arealsonotincluded. Italsostates,
however, thatanewCustoms Code, nowbefore thelegislature, willinclude thenecessary provisions
toaddress these concerns andtofully implement theWTO Agreement. What isthecurrent
legislative status oftheproposed Customs Code?
Answer:
Itisunder consideration byoneoftheParliamentary Committees. Once approved bythe
committee itwillgobefore theParliament forapproval. Itisincluded inthe1997 work planforthe
parliament butnospecific timeschedule hasbeenset.
Question 35.
How longbefore thenewlawisimplemented?
Answer:
Parliament isduetoconsider thisnewproposed lawthisyear. TheParliament willdefine
theimplementation period.WT/ACC/KGZ/5/Add.2
Page11
Question 36.
What difficulties areforeseen inimplementing thecustoms valuation provisions ofthenewCustoms
Code law?
Answer:
Weanticipate nodifficulties other thanthose usually inherent intheimplementation ofanew
customs procedure, suchastheeducation ofthecustoms officers andtheimporting public.
Question 37.
Webelieve thatthedraft Customs Lawshould besubmitted forreview totheWorking Party
assoonaspossible, inorder toensure thatitsprovisions address theaspects ofCustoms Valuation
covered bytheWTO Agreement.
Answer:
Theproposed Customs Code isattached asAnnex A-4.
Question 38.
Weseekacommitment from theKyrgyz Republic toimplement theWTO Customs Valuation
Agreement from thedateofaccession.
Answer:
TheKyrgyz Republic confirms thatitwillimplement theWTO Customs Valuation Agreement
from thedateofaccession.
IV.1(i) Other customs formalities
Question 39.
Article VIIIofGATT 1947 states thatfeesassociated withimports must belimited tothecost
ofservices rendered andshall notindirectly provide protection fordomestic products. Listed as
oneofthe"other customs formalities" isafeetobepaidatthemoment offiling theimport
declaration.
Answer:
Thefeereferred tounder "other customs formalities" refers totheclearance feeof0.15%.
Question 40.
Please list,describe, andexplain thereason forapplication ofallfeesinvolved inimporting a
product. Please describe indetail therelationship oftheamount ofthefeetothepricing structure
fortheassociated service.
Answer:
- clearance fee:0.15%;
- import license: 750soms (currently, about 45US$) -theamount currently equal to"ten
minimum salaries;"
- license extension: 350soms (currently, about 20US$);
- certificate ofcompliance: 600-1500 soms (currently, about 35-90 US$), depending onthe
typeoflaboratory testsrequired;
- phytosanitary certificate: 76-166 soms depending onthetypeofproduct. Ifthetotalweight
oftheproduct islessthan300kgtherequired payment willbe10%oftheotherwise applicableWT/ACC/KGZ/5/Add.2
Page12
amount. Iftheweight isfrom 300kg-1000 kgtherequired payment willbe50% ofthe
otherwise applicable amount;
- veterinary certificate: forgoods having avalue equal toorlessthan5000 soms, afeeequal
to0.5% ofthevalue isassessed; forgoods having avalue exceeding 80,000 soms, afeeequal
to350soms plus0.1% ofthevalue isassessed; forgoods having avalue inexcess of5000
soms butlessthan80,000 soms, avariety offormulas areapplied thatgradually reduce the
amount ofthefeeinadvalorem terms;
- hygienic certificate: 70-800 soms depending onthetypeoflaboratory testsrequired.
IV.1(k) Application ofinternal taxes onimports
Question 41.
Please identify, including HStariff number, those imported capital goods eligible forVAT
exemption, duetotheir importation byalegalentity orentrepreneur foruseinits/his productive
economic activity. Please describe thecriteria applied indetermining eligibility forthisVAT
exemption.
Answer:
Criteria foreligibility ofthisVAT exemption isthattheymustbecapital goods andnotfor
resale. Capital good aregoods thatcostmore than45minimum salaries (oneminimum salary is
currently 75soms) (45minimum salaries isapproximately 200US$) andthecapital good musthave
alifeofmore thanoneyear. Capital goods donotinclude rawmaterials.
Question 42.
Please identify, including HStariff number, anyimported products thathave been specified as
VAT-exempt bytheState Customs Inspectorate. What werethereasons fortheexclusion ofthese
products from VAT?
Answer:
Although theTaxCode provides forsuchanexemption, thisexemption hasnotyetbeen
implemented.
Question 43.
TheMemorandum states thatCIScountries charge aVAT onexports toother CIScountries.
Does thismean thatimports from CIScountries intheKyrgyz Republic donotpayVAT taxes
atthetimeofimportation?
Answer:
TheVATisnotassessed atthetimeofimportation onimports originating fromaCIScountry.
Iftheimporter thensellsthegoods intheKyrgyz Republic, theVAT isassessed atthetimeofsale;
however, theimporter isentitled toclaim aVAT credit intheamount oftheVAT paidonthegoods
inanother CIScountry.
Question 44.
Does theKyrgyz Republic rebate VAT taxes onexports (a)toCIScountries; and/or (b)toother
countries?
Answer:
VAT taxesarerebated onexports tonon-CIS countries, butnotonexports toCIScountries.WT/ACC/KGZ/5/Add.2
Page13
Question 45.
WT/ACC/KGZ/3statesthatgoodssubjecttoexcisetaxesareexemptfromcustomsduties.However,
itappears thatanumber ofgoods inAnnexes 9and10areprovisionally subject tobothexcise
taxes andcustoms duties. Please explain thisapparent contradiction.
Answer:
Currently, allgoods subject toexcise taxesareexempt fromcustoms duties. NotethatAnnex
10toWT/ACC/KG/3 contains aproposed tariffschedule. Ifandwhen anewtariffschedule isadopted,
itwillprovide forratesofduties onallproducts, including those subject toexcise taxes; however,
thenotes tothattariff schedule willmake itclearthatthose ratesarenottobeapplied togoods that
aresubject toexcise taxes.
Question 46.
Willcustoms duties beeliminated onthose items?
Answer:
Seeanswer above.
Question 47.
Article IIIoftheGATT 1994(national treatment) stipulates thattaxes onimported goods should
benohigher thansuchtaxes ondomestic production. Article I(MFN) requires thattaxes applied
toimports from WTO members should benohigher thanthose applied toimports from non-WTO
sources. InAnnex 9,theKyrgyz Republic indicates thatthere isaconsiderable disparity inthe
rates ofexcise taxforimported anddomestic goods. WenotethatthenewTaxCode, which came
intoeffect on1July1996, continues thisdiscriminatory treatment foralarge number ofproducts.
What aretheKyrgyz Republic 'splans fortheelimination ofthisdiscriminatory treatment?
Answer:
Yes,theexisting system ofexcise taxesstipulates different methods ofcalculation forimported
anddomestic goods. Thenecessity forusing twomethods forcalculating excise taxes iscaused by
thefactthatimported goods often haveprices thatarehigher thanthose ofsimilar domestic goods.
Inthisrespect, equal absolute rates ofexcise taxforimported anddomestic products would mean
relatively higher ratesfordomestic products. Excise ratesinpercentages arehigher foralmost all
domestic goods incomparison withratesforimported goods. Thissituation provides arelative price
advantage inthemarket ofimported goods overdomestic production.
Question 48.
Weunderstand thatneither VAT norexcise taxes areapplied toimports from CIScountries.
Please indicate howthiswillbealtered prior toaccession.
Answer:
Excise taxesareapplied totheconcerned imports fromallcountries, including CIScountries.
TheKyrgyzRepubliccurrentlysupportstheconceptofbringingitsVATsystemintoconformity
withaccepted world practice: i.e.applying theVAT toallgoods soldorimported intotheKyrgyz
Republic regardless oftheircountry oforigin, andexempting exported goods regardless oftheircountry
ofdestination. Nevertheless, itshould benoted thattheagreement ofother CIScountries must be
obtained toaccomplish this.Uncoordinated unilateral transition mayleadtoasituation ofdouble taxation
onCISimports, thereby causing are-orientation oftrade andthepossible imposition ofreciprocal
measures byCIScountries onKyrgyz exports.WT/ACC/KGZ/5/Add.2
Page14
Thisissueisthetheme ofthediscussion ofexperts atmeetings oftheInter-State Council and
theIntegration Committee andcurrently itisimpossible todetermine theconcrete terms ofwhen or
howthetransition willbeaccomplished.
Question 49.
Forthose items made subject toexcise taxation bythenewTaxCode, which came intoeffect
on1July1996, when doestheKyrgyz Republic expect tosubmit theapplicable excise taxrates
toParliament?
Answer:
Attheendof1996,theLegislativeAssembly,oneofthetwochambersofParliament,approved
thefollowing table ofexcise taxrates. Thematter isnowpending before theother chamber, the
Assembly ofPeople 'sRepresentatives. TheGovernment believes that,although theexcise taxrates
applicable tocertain items maychange before finaladoption andapproval bythePresident, the
descriptionofgoodsandtheapplicabletariffcodenumbers,withtheexceptionofthepossibleelimination
ofcoffee andcocoa, willnotchange .
Proposed Excise TaxRégime
Goods Domestic Rates Import Rates Codes
Ethyl alcohol andpurified ethyl alcohol
produced from rawmaterials (except
those imported byspecial consumers
within stipulated limits)$1.4/litre $1.4/litre 2207
Vodka $0.90/litre $0.90/litre 220890110-2208
90390
Liqueurs andvodka products $0.90/litre $0.90/litre 220810,
220830,
220890510-2208
90790,
220890910,
220890990
Alcoholized beverages, juiceand
balsam1$0.90/litre $0.90/litre 220840-220850
Grape wine,
other wines$0.35/litre,
$0.29/litre
Wine $0.35/litre 220421-220429,
2205, 2206
Cognac $0.60/litre, $0.80/litre 220820100
Sparkling wines $0.40/litre, $0.45/litre 220410
1Excise taxratesarecalculated based onthecontent ofethylalcohol insuchitems, thebasebeing
abeverage containing 45%alcohol.WT/ACC/KGZ/5/Add.2
Page15
Goods Domestic Rates Import Rates Codes
Beer:
-packaged
-unpackaged$0.08/litre
$0.05/litre$0.25/litre 2203
Rawmaterials forwineproduction $0.15/litre, $0.20/litre 220430
Tobacco products
-filter cigarettes
-unfiltered cigarettes$1.5/1000 each
$0.75/1000 each$5/1000 each
$2/1000 each2402
2402
Other tobacco-containing items,
including fermented tobacco12% 240110,
240120, 2403
Golden, platinum orsilver jewellery 20% 30% 7113-7118
Processed andrawfurhides (other than
mole,rabbit, deer, dogandsheep skin)0% 10% 4110
4103-4104,4106
-4109
Wearing apparel made ofnatural fur,
including coats, short-coats, jackets,
capes, stoles, scarves,headgear, collars,
furcoats andfurpieces (other than
apparel make ofhides ofmole, rabbit,
dog,deer orsheep skin)0% 10% 4303
Coats, short-coats, jackets andcapes
trimmed withfur(other thanmole,
rabbit, dog,deerorsheep skin)0% 10% 4303
Clothing made ofnatural leather 0% 10% 4203
Crystalware 0% 30% 701321,
701331, 701391
Firearms andgasweapons (other than
those acquired fortheneeds ofstate
agencies)10% 20% 9301-9393
9305-9306
Oilproducts:- gasoline, softand
medium distillates$45/ton $45/ton 2707,
271000330,2710
00350,
271000390,
271000110,
271000150,
271000210,
271000250,
271000410,
271000450
Aircraft fuel $45/ton 271000510-
271000590
Diesel fuel $0/ton $45/ton 271000610-
271000650,
271000690
Black oil $0/ton $0/ton 271000710,
271000750,
271000790WT/ACC/KGZ/5/Add.2
Page16
Goods Domestic Rates Import Rates Codes
Other $0/ton $0/ton 271000550,
271000910,
271000930,
271000990
Coffee andcocoa products 10% 0901, 1801,
1803-1805
Carpets andrugs(except floor
coverings)0% 35% 57
IV.1(l) Rules oforigin
Question 50.
TheKyrgyz Republic states thatitsCustoms laws generally follow thetransitional disciplines
governing rules oforigin. Does theKyrgyz Republic intend toadopt inlawtherules oforigin
thatarebeing developed intheWTO?
Answer:
TheKyrgyz Republic doesintend toadopt inlawtherulesoforigin thatarebeing developed
intheWTO.
IV.1(m) Anti-dumping regime
Question 51.
Both theCustoms Tariff Law andtheproposed Customs Code provide fortheimposition of
anti-dumping duties inanamount "...thatdoesnotexceed thedifference between theprice of
thedumped goods atthemoment ofexport andtheaverage price oflikeordirectly competitive
goods intheKyrgyz market." However, GATT Article VIlimits theamount ofduties tothe
amount ofthemargin ofdumping, which isthedifference between theprice ofthedumped good
andtheprice forthelikeproduct destined forconsumption intheexporting country, or,inthe
absence ofsuchdomestic price, thehighest comparable price forthelikeproduct forexport to
anythird country, orthecostofproduction oftheproduct inthecountry oforigin plusa
reasonable addition forselling costandprofit. Itappears thatthelegislation oftheKyrgyz
Republic doesnotatpresent fully conform toWTO provisions inthisarea.
Have efforts commenced toamend proposed Customs Code tobring itintoconformity withGATT
Article VIandtheWTO Agreement onAnti-dumping?
Answer:
Theprovisions relating totheimposition ofdumping duties havenever beenutilized orfully
developed indetail. TheGovernment oftheKyrgyz Republic isintheprocess ofdrafting a
WTO-compliant lawonextraordinary trade measures thatwillcontain detailed provisions on
anti-dumping, countervailing dutyandsafeguard actions. TheKyrgyz Republic willprovide acopy
ofthedraftlawwhen itisfinalized.WT/ACC/KGZ/5/Add.2
Page17
IV.1(n) Countervailing dutyregime
Question 52.
DotheCustoms Tariff Lawandtheproposed Customs Code limit thecountervailing duties to
theamount equal totheestimated bounty orsubsidy determined tohave beengranted, directly
orindirectly, onthemanufacture, production orexport oftheproduct inthecountry oforigin
orexportation, including anyspecial subsidy tothetransportation ofaparticular product? Please
discusshowtheKyrgyzRepublicintendstoincorporateWTOprovisionsinthisareinitslegislation.
Answer:
Theprovisions relating totheimposition ofcountervailing duties havenever beenutilized
orfullydeveloped indetail. TheGovernment oftheKyrgyz Republic isintheprocess ofdrafting a
moredetailed WTO-compliant lawonextraordinary trademeasures thatwillcontain detailed provisions
onanti-dumping, countervailing dutyandsafeguard actions.
TheKyrgyz Republic willprovide acopyofthedraftlawwhen itisfinalized.
IV.1(o) Special purpose duties
Question 53.
Aretheprovisions oftheCustoms Tariff LawandtheProposed Customs Tariff Lawauthorizing
theimposition of"special purpose duties" consistent withtherequirements oftheWTO Agreement
onSafeguards?Pleasedescribefullyanyprovisionsthatarenotinconformitywiththerequirements
oftheSafeguards Agreement.
Answer:
Theprovisions relating totheimposition ofspecial purpose duties havenever beenutilized
orfullydeveloped indetail. TheGovernment oftheKyrgyz Republic isintheprocess ofdrafting a
WTO-compliant lawonextraordinary trade measures thatwillcontain detailed provisions on
anti-dumping, countervailing dutyandsafeguard actions. Furthermore, theGovernment oftheKyrgyz
Republic confirms thatnoquantitative restrictions areorwillbeusedassafeguards. TheKyrgyz
Republic willprovide acopyofthedraftlawwhen itisfinalized.
Question 54.
Willthewarning measures provided bytheexisting Customs Tariff Lawcontinue ineffect after
enactment oftheproposed Customs Tariff Law? What ismeant bytheterm"violating theinterests
ofthecountry"?
Answer:
No.Theproposed Customs Tariff Law, ascurrently drafted, doesnotcontain provisions onwarning
measures. Theadoption oftheproposed Customs Tariff Lawwillrepeal theexisting Customs Tariff
Law. Thewarning measures provided forintheexisting Customs Tariff Lawhavenever beenutilized
orfullydeveloped indetail. Therefore, itisnotpossible toprovide adefinition of"violating theinterests
ofthecountry."
Question 55.
Arethere anyprovisions oftheAnti-Monopoly Lawspecifically applicable toforeign
firms orimported products?WT/ACC/KGZ/5/Add.2
Page18
Answer:
No
Question 56.
Arethespecial purpose duties authorized bytheexisting andproposed Customs Tariff Laws equal
tothepenalties assessed ondomestic firms engaged inunfair competition pursuant tothe
Anti-Monopoly Law?
Answer:
No.
Question 57.
Please describe theapplicable provisions oftheAnti-Monopoly Law.
Answer:
TheAnti-monopoly Lawhasnospecific provisions toaddress unfair foreign tradepractices.
Theproposed lawonextraordinary trademeasures mayinclude specific provisions addressing unfair
trade practices byforeign firms.
IV.2 Export Regulation
IV.2(d) Export licensing procedures
Question 58.
Cabinet ofMinisters Resolution No56ofFebruary 6,1996 provides forlicensing requirements
andcontrols onexports. These include licensing restrictions fortextile goods, wearing apparel,
silicon carbide, ammonium nitrate, andrawaluminum, required bybilateral agreements between
theRussian Federation andtheEuropean Union, andforgeneral exports ofprecious stones,
precious metals, articles containing precious metals, andprecious metal waste. Arethese
requirements currently ineffect intheKyrgyz Republic? Ifnot,please elaborate onthetiming
oftheir implementation?
Answer:
Currently, Cabinet Ministers Resolution No.56of6February 1996 isnotineffect. This
resolution willcome intoforce ifandwhen theCustoms Union Agreement isratified byParliament.
Question 59.
What isthefunctional justification forthese restrictions andhowwilltheKyrgyz Republic justify
them under WTO provisions?
Answer:
These restrictions willcome intoforce onlyiftheKyrgyz Republic becomes amember of
theCustoms Union. Inthatevent, internal customs barriers between andamong Russia, Belarus,
Kazakstan andKyrgyzstan willgradually bedismantled. Inthecurrent transitional period, sucha
situation could provide alarge opportunity forthemisappropriation andexport ofcertain high-value
commodities ofthemember countries. Therefore, these export licensing requirements areintended
toprovide some degree ofcontrol oversuchunlawful activity. From ourperspective, these measures
-which areintended tolastforthetransitional period -arejustifiable national security controls.WT/ACC/KGZ/5/Add.2
Page19
Question 60.
IsCabinet ofMinisters Resolution No373,adopted on25August 1995, OnIncreasing theLiability
forUnauthorized Purchase andSaleoftheFragments andWaste ofNon-Ferrous andFerrous
Metals andtheir Industrial Fragments (Resolution No373)stillineffect?
Answer:
Yes
Question 61.
Please describe thelawthatisbeing considered byParliament which deals withthissubject matter.
Answer:
Thegoalofthedraftlawistoprotect electric transmission andcommunication linesandferrous
andnon-ferrousmetalitemsfromtheftbypersonsdesiringtoresellthosemetalstoscrapmetalprocessing
firms. According tothedraftlaw,aperson desiring topurchase and/or export suchitems musthold
alicense. Under thedraftlaw,licensed persons maypurchase onlythose items thatarespecified by
theCabinet Ministers inanimplementing resolution. Under thedraftlaw,anycompany thatproduces
waste offerrous ornon-ferrous metals isobligated toreport thekindandamount ofsuchwaste. The
export andimport ofsuchitems must belicensed. Engaging insuchactivity without alicense is
punishable bymonetary finesandtheconfiscation ofillegally purchased orusedwastes.
Question 62.
Please identify, including HStariff number, theferrous andnonferrous metal fragments and
wastes which aresubject totheexport licensing requirement.
Answer:
Itmustfirstbenoted thatferrous metal fragments andwaste arenotsubject toexport licensing.
Thefollowing isalistofthenon-ferrous metal andwastes andscrap thereof, andHStariff number,
subject toexport licensing:
7404 Copper wastes andscrap
7503 Nickel wastes andscrap
7802 Lead wastes andscrap
7602 Aluminum wastes andscrap
9702 Zincwastes andscrap
8002 Tinwastes andscrap
8101 Wolfram andarticles thereof, including wastes andscrap
2611
2825
8102 Molybdenum andarticles thereof, including wastes andscrap
2613
2825
8103 Tantalum wastes andscrap
8104 Magnum wastes andscrap
8105 Cobalt wastes andscrap
8106 Bismuth wastes andscrap
8107 Cadmium wastes andscrap
8108 Titanium wastes andscrap
8109 Zirconium wastes andscrap
8110 Antimony andarticles thereof, including wastes andscrapWT/ACC/KGZ/5/Add.2
Page20
2617 Antimony concentrates
2825 Antimony oxides
8111 Manganese wastes andscrap
8112 Rhenium andarticles thereof, including wastes andscrap
8112 Chrome, germanium, vanadium, beryllium andniobium wastes andscrap
IV.2(f) Export financing, subsidy andpromotion policies
WenotethattheKyrgyz Republic hasnopolicies ormeasures tofinance exports. Because export
subsidiesarethemosttradedistortingformsofsupport,westronglyencouragetheKyrgyzRepublic
tocommit tobinding export subsidies atzeroforallproducts.
IV.3 Internal Policies Affecting Foreign Trade inGoods
IV.3(b) Technical regulations andstandards, including border measures
Question 63.
Annex 5states thattheState Inspection onStandardization andMetrology (Kyrgyzstandard)
performstheStateadministrationofstandardization,includingtheestablishmentofrulesgoverning
theapplication ofinternational standards. Arethere regulations oradministrative procedures
which provide guidance toKyrgyzstandard, orother agencies suchastheMinistry ofArchitecture
andConstruction andMinistry ofEnvironmental Protection, topublish draft standards for
comment?
Answer:
No,there arenot.IntheKyrgyz Republic, draftstandards arenormally sentforreview and
comment tointerested organizations.
Question 64.
Isthere guidance onarecommended period toallow forpublic comment?
Answer:
Draft standards arenotrequired tobesubmitted forpublic review andcomment. Therefore,
there isnorecommended period oftimeforpublic comment.
Question 65.
Isthere guidance foragencies toconsider theuseofappropriate international standards?
Answer:
Yes. IntheKyrgyz Republic, international standards aretobeapplied inaccordance with
theinstructions oftheState Standardization System ofKyrgyzstan.
Question 66.
DoestheBulletin ofCurrent Information ofKyrgyzstandard provide announcements forallKyrgyz
(including other Ministries) draft standards, technical regulations andconformity assessment
procedures, sothatinterested parties mayprovide comments?
Answer:
Draft standards, technical regulations, andconformity assessment procedures arenotpublished
forpublic comment.WT/ACC/KGZ/5/Add.2
Page21
Question 67.
Inwhatspecific publication(s) arefinalstandards, technical regulations andconformity assessment
procedures published?
Answer:
Final standards, technical regulations andconformity assessment procedures arepublished
inKyrgyzstandard 'stheofficial Bulletin ofStateStandards andTechnical Regulations, published on
aquarterly andannual basis.
Question 68.
Annex 5states thata"certificate ofconformity" isrequired fortheimportation ofselect regulated
products. Kyrgyzstandard istoreview documents issued by"national certification bodies" which
assert compliance withapplicable safety requirements. Aresuchcertificates onlyaccepted from
Kyrgyzstandard-accredited certification bodies andtesting laboratories?
Answer:
Certificates issued byforeign certification bodies areaccepted ifabilateral ormultilateral
agreement exists thatprovides fortheiracceptance. Inabsence ofanapplicable bilateral ormultilateral
agreement, theKyrgyz Republic willgenerally review andaccept acertificate issued byamanufacturer
orcertification bodywidely recognized ashaving areputation forquality. Suchcertification bodydoes
notnecessarily have tobeaccredited byKyrgyzstandard. Thedetermination ofsuch firms and
organizations remains within thediscretion oftheKyrgyz Republic. Asarule,foreign certificates
areaccepted onlyforproducts originating inthecountry where thecertificate wasissued.
Question 69.
Doyouhave alistofthese products together withthestandards theymust meet?
Answer:
Thatlistisattached asAnnex B.
Question 70.
What isthelegal basis forcertification? Doyouhave copies ofthelaws andthenormative
regulations?
Answer:
Thelegalbasis forcertification isdescribed inAnnex 5totheMemorandum. Copies of
theapplicable lawsandnormative regulations onstandardization andcertification, allofwhich are
referred toinAnnex 5,havealready beensubmitted totheWTO ondiskette.
Question 71.
How cananimporter gainaccess tothestandards affecting hisproduct?
Answer:
Animporter cangainaccess toallstandards affecting hisproduct bysubmitting arequest
toKyrgyzstandard, orbyreviewing theofficial bulletins ofKyrgyzstandard.
Question 72.
Does theKyrgyz Republic recognize anyexternal, regional orinternational standards?WT/ACC/KGZ/5/Add.2
Page22
Answer:
Yes.Standards developed onthebasis oftheinternational standards ofISO,MEK, CMEA
areapplied intheKyrgyz Republic. Forexample, GOST 28397-91 hasbeendeveloped onthebasis
ofISO2382-15-85, GOST 28397-91 (ISO2382-15-85), GOST 29106-91 (MEK 748-1-84), GOST
28312-89 (CMEA 6415-88, MEK 417-73) andothers. (Thefulllistcanbefound intheComments
ofKyrgyzstandard for1996 which isavailable intheInformation-Analytical Department of
Kyrgyzstandard.)
Question 73.
Hasitidentified anyequivalencies between standards intheKyrgyz Republic andthese external
standards? Ifso,which ones: ISO? MEK? ASME? API? CE?Others?
Answer:
Asdescribed intheanswer totheabove question, standards intheKyrgyz Republic have
equivalencies withISO,MEK andCMEA. Asforother external standards theyhavenotyetbeen
considered forequivalency.
Question 74.
Arethere plans torecognize suchequivalencies asabasis forautomatic certification?
Answer:
Currently Government ofKyrgyz Republic hasnoplans torecognize suchequivalencies as
abasis forautomatic certification.
Question 75.
Arethere provisions fornotice ifthelistofproducts requiring mandatory certification changes?
Answer:
No.There arenoformal notice requirements. However, within theCIS,regulations have
been developed thatoperate likenotice provisions. TheCISInter-Governmental Counsel for
standardization, methodology andcertification (ICS) hasdeveloped regulations allowing fortheimport
andsaleinanICS-member country, without acertificate, ofaproduct thatisotherwise subject to
mandatorycertificationif(i)theproductoriginatedinanICS-membercountryand(ii)andtheimportation
occurs within sixmonths fromthedateoftheintroduction ofthemandatory certification requirement.
With respect tonon-ICS-member countries, theKyrgyz Republic mayresolve thisissue on
thebasis ofaninternational agreement.
Question 76.
What isthefeestructure forcertification ofthese product types? Ifyoumaintain astandard
feeschedule, maywehave acopy?
Answer:
- Certificate ofcompliance: 600-1500 soms (currently, about 35-90 US$), depending onthe
typeoflaboratory testsrequired;
- phytosanitary certificate: 76-166 soms depending onthetypeofproduct. Ifthetotalweight
oftheproduct islessthan300kgtherequired payment willbe10%oftheotherwise applicable
amount. Iftheweight isfrom 300kg-1000 kgtherequired payment willbe50% ofthe
otherwise applicable amount;WT/ACC/KGZ/5/Add.2
Page23
- veterinary certificate: forgoods having avalue equal toorlessthan5000 soms, afeeequal
to0.5% ofthevalue isassessed; forgoods having avalue exceeding 80,000 soms, afeeequal
to350soms plus0.1% ofthevalue isassessed; forgoods having avalue inexcess of5000
soms butlessthan80,000 soms, avariety offormulas areapplied thatgradually reduce the
amount ofthefeeinadvalorem terms;
- hygienic certificate: 70-800 soms depending onthetypeoflaboratory testsrequired;
- acertificate setting forththedetermination ofStateecology experts thattheproduct hasmet
applicable environmental standards: amount offeedefined oncasebycasebasis based on
costofthelaboratory tests.
Question 77.
What istheprocedure thatimporters ofproducts andequipment intotheKyrgyz Republic should
follow inorder toobtain acertificate?
Answer:
Theprocedure ofcontrolling products imported totheKyrgyz Republic isregulated bythe
Resolution oftheCabinet ofMinisters oftheKyrgyz Republic of12/02/95, No.520.
Work oncertification intheKyrgyz Republic isimplemented within thedeveloped National
system ofcertification. Theorder andprocedure ofwork oncertification isestablished bystandards
ofthissystem -KMC 40.03-96- andprocedures ofcertification ofsimilar categories ofproducts (at
thistimetwenty ofthem areineffect. They continue tobeworked out). There isalsoanormative
document establishing theprocedure ofrecognizing foreign certificates ofcompliance intheSystem.
Question 78.
Doproducts imported forpersonal useoraspart ofaforeign assistance program require
certification?
Answer:
Allproducts specified inthelist,including those imported ashumanitarian aidaresubject
tocertification. Goods imported forpersonal usedonotrequire certification.
Question 79.
What arethe"national certification bodies?"
Answer:
"National certification bodies" arebodies authorized tomaintain acommon government policy
intheareaofcertification. TheNational certification bodyofTheKyrgyz Republic isKyrgyzstandard.
Question 80.
Howdothenational certification bodies relate toeachother andtothestatecustoms service and
theindustry ministries andGoskominvest?
Answer:
Cabinet ofMinisters Resolution No.12of6January 1997established anInter-Departmental
Counsel ontheCertification ofProducts andServices. Theresolution alsoestablished itscomposition.
TheCounselincludesthefollowingstatebodiesespeciallyauthorizedtoworkoncertificationofproducts:WT/ACC/KGZ/5/Add.2
Page24
i. Kyrgyzstandard;
ii. Ministry ofArchitecture andConstruction oftheKyrgyz Republic;
iii Ministry ofHealth oftheKyrgyz Republic;
iv. Ministry ofTransportation andCommunication oftheKyrgyz Republic;
v. Ministry ofInterim oftheKyrgyz Republic;
vi. StateAgency forTourism andSports under theCabinet ofMinisters oftheKyrgyz Republic;
and
vii. Kyrgyz Energy Holding Company.
Thepurpose ofitscreation istoensure thecoordination ofstatecertification bodies having
theauthority toissue certificates and/or toaccredit other certificate-issuing organizations. Relation
ofstatebodies totheState Customs Inspectorate isestablished bytheResolution oftheCabinet of
Ministers oftheKyrgyz Republic of12/02/95, No.520. Intheimportation ofproducts, theState
Customs Inspectorate checks thepresence ofnecessary certificates issued bythementioned agencies,
andalsoevery month itinforms thesebodies ofthedelivery ofproducts which aresubject tomandatory
certification toKyrgyzstan.
Question 81.
Arethere pre-requisites forcertification suchastherequirement toobtain internal uselicenses
from industry sector inspectorates, ministries, and/or agencies?
Answer:
No.
IV.3(c) Sanitary andphytosanitary measures
Question 82.
AretheKyrgyz Republic 'sprocedures foradopting trade measures relating toconcerns with
human, animal andplant health inlinewiththerequirements oftheSPSAgreement?
Answer:
Theappropriate ministries andstatebodies (particularly, theMinistry ofHealth, theMinistry
ofAgriculture andFood, theMinistry ofEnvironmental Protection, andtheVeterinary-Sanitary
Supervisory Office) arereviewing theprovisions oftheSPSAgreement forthepurpose ofbringing
theirrespective procedures intocompliance withtheSPS.
Question 83.
Areallproposals forsuchmeasures published inadvance, andisthere anopportunity forpublic
comment byinterested parties, bothdomestic andforeign?
Answer:
State bodies canpublish suchmeasures inadvance seeking forthepublic comment, butit
isnotobligatory.
Question 84.
Istherearequirementandarethereguidelinesforconductingriskassessmentspriortotheadoption
ofSPSmeasures, including arequirement thatsuchmeasures bebased onscientific evidence?
Answer:
There isarequirement thatanySPSmeasure bebased onscientific evidence, butno
requirements orguidelines fortheconduct ofriskassessments.WT/ACC/KGZ/5/Add.2
Page25
Question 85.
According totheinformation provided inWT/ACC/KG/3, Cabinet ofMinisters Resolution No
260requires thatsafety certificates beobtained forimports of"agricultural andfoodindustry
products." Arealltypes ofagricultural andfoodproducts subject tothisrequirement? Ifnot,
please provide acomplete listofagricultural andfood products subject tocompulsory safety
certificates.
Answer:
Seeabove, theanswer toquestion 27onPartIV,Section 1(f).
Question 86.
Onwhat scientific evidence orriskassessments isResolution 260based?
Answer:
Resolution 260isbased ontheevaluation ofthepossibility ofentry ofpestanddisease and
potential biological consequences. Certification requirements foritems listed inResolution No.260
arebased onscientific studies andareimposed onlytotheextent necessary toprotect human lifeand
health, environment.
Question 87.
Isthere anyother legislative oradministrative authority forspecific SPSmeasures affecting
imported agricultural andfoodproducts?
Answer:
TheLaw"OnQuarantine ofPlants oftheKyrgyz Republic," of7June1996; and Cabinet
ofMinisters Resolution No.520of2December 1995 (described inAnnex 5totheMemorandum at
page143).
Question 88.
Arethesanitary andphytosanitary standards intheKyrgyz Republic inconformity withapplicable
international standards, inparticular those developed bytheCodex Alimentarius Commission,
theInternational Office ofEpizootics, andtheinternational andregional organizations operating
within theframework oftheInternational Plant Protection Convention?
Answer:
Theappropriate ministries andstatebodies (particularly, theMinistry ofHealth, theMinistry
ofAgriculture andFood, theMinistry ofEnvironmental Protection, andtheVeterinary-Sanitary
Supervisory Office) arereviewing theprovisions ofthese standards forthepurpose ofbringing their
respective standards intoconformity therewith.
IV.3(d) Trade-related investment measures
Question 89.
According totheMemorandum, bidsarescored according toanumber offactors forthe
privatization ofmedium andlarge state-owned enterprises. Included among thefactors considered
isthecommitment bythebidder "tomaintain certain employment levels". HowdoestheKyrgyz
Republic justify thisexamination ofabidder 'sability tohirelocally, inlight ofcommitments
intheTRIMs Agreement? Please listanddescribe allother factors used toratebidsinthe
privatization process.WT/ACC/KGZ/5/Add.2
Page26
Answer:
Givingweighttoabidder'swillingnesstomakeacommitmenttomaintainacertainemployment
leveldoesnotcontradict theTRIMs Agreement. There isnotrade-related aspect imposed bythestate
onthebuyer inconnection withthiscommitment. Thestateiscurrently themajor stock-holder in
these entities, andinthatrolemayrequire apotential purchaser tomaintain certain employment levels
aspartofthedeal. Theimposition ofsucharequirement isnotunknown inwholly private transactions
involving thesaleofabusiness. Furthermore, arequirement tomaintain employment levels does
notmean thatabuyer willberequired touseonlylocallabour. Therequirement isimposed onthe
buyer forthepurpose ofavoiding de-stabilizing simultaneous masslay-offs during thisperiod ofinitial
transition andmass privatization. Thisrequirement always terminates orphases outwithin alimited
timeafterthetransaction hasclosed. Nothing inthese arrangements violates theTRIMs Agreement.
Other factors which maybeusedtoratebidsintheprivatization process areapplied with
dueregard fortheMFN andnational treatment principles. These factors include:
- theamount andtermofinvestment;
- keeping thecompany profile and/or production volume within aperiod oftimespecified by
abidding commission;
- thecommitment tohireahighly professional staff;
- maintaining environmental protection measures;
- maintenance anduseofsocial programs andcultural objects, which areapartofthe
commercial property, under privatization;
- prohibition ofcertain actions inrespect ofabidding property;
Thebidding commission canestablish other factors toratebids.
IV.3(e) State-trading practices
Question 90.
TheKyrgyzRepublicnotesthat29enterpriseshavebeengrantedexclusiverightsbythegovernment
topurchase andexport scrap metals. Annex 6alsonotes thatthelistofenterprises istemporary
(under Resolution 373), pending theenactment ofalawbyParliament inlate1996. What isthe
status ofthisanticipated law. How doesthegovernment exercise control overthescrap metal
exportsoftheseenterprises?WerequestthatKyrgyzRepublicsubmitnotificationsforthisprogram
under theprovisions ofGATT Article XVII.
Answer:
ThisDraft LawisintheParliament 'swork planfor1997. Seeanswer below.
Question 91.
Annex 6states nocriteria existfordetermining thequantities tobeexported. Ifthisisthecase,
howdoesthegovernment ensure thatthisexclusive system ofscrap metals exporters doesnot
"plunder" domestic supplies?
Answer:
Thisresolution isintended toprevent theplunder ofdomestic resources ofwaste andscrap
metal andtoprotect theexisting infrastructure frombeing cutupandsold. Thegovernment haslicensed
only29companies toengage inthebusiness ofpurchasing andprocessing waste andscrap metal. These
companies must regularly provide totheMinistry ofIndustry andForeign Trade information about
thequantities andsources ofpurchases. Thisisonlyatemporary measure taken toprevent thetheftWT/ACC/KGZ/5/Add.2
Page27
andexportation ofthecountries resources. Resolution 373contains anexclusive listofitems made
offerrous andnon-ferrous metals which these companies canpurchase domestically onacashbasis.
IV.3(h) Trade-related environmental policies
Question 92.
Please describe themandatory product standards thattheKyrgyz Republic hasestablished to
protect theenvironment ofthelife,health orproperty ofKyrgyz citizens.
Answer:
Inaddition totheinformation oncertification provided inAnnex 5totheMemorandum, it
should benoted thatthesystem ofcertification ineffect intheKyrgyz Republic isharmonized with
thesystems ofcertification ineffect intheRussian Federation andother CIScountries, andwiththe
regulations ofISO/IEC andEuropean standards ofserial No.EN45000. Thecertification rulesand
regulations oftheKyrgyz Republic aresetforthin44different setsofregulations, ofwhich 20have
general applicability and24apply tospecific products orproduct groups. These documents contain
detailedinformationontheproceduresandrequirementsrelatedtomandatoryandvoluntarycertification.
Goods forwhich statestandards havebeenestablished forthepurpose ofprotecting the
environment orthelife,health andproperty ofcitizens aresubject tomandatory certification bythe
appropriate ministry orstatebody, andthesubsequent issuance byKyrgyzstandard ofacertificate of
conformity andalicense tomark theconcerned goods witha"mark ofconformity." Saleorimport
ofsuchgoods intheKyrgyz Republic without suchpriorcertification andmarking isprohibited. List
ofgoods thataresubject tomandatory certification isdeveloped byKyrgyzstandard.
Question 93.
What documentation andinformation isrequired to"confirm thesafety oftheproducts imported"
from countries having asignificant incidence ofadisease requiring quarantine measures?
Answer:
Itcanbeanydocumentcertifyingthesafetyofimportedproductsthatisissuedbyanauthorized
body ofacountry having adisease problem.
Question 94.
Cabinet Ministers Decision 260ontheApproved ListofGoods Locally Produced orImported
intotheKyrgyz Republic thatareSubject toCompulsory Safety Certification, asamended, appears
toreserve much oftheeconomy forcompulsory certification forhealth, safety orenvironmental
reasons. TheDecision covers capital goods (machinery, building, electrotechnical andinstrument
making industries), agriculture/food, lightindustry, rawmaterials, wood processing andmedical
products.
Answer:
Although Cabinet ofMinisters Resolution No.260covers many industries, itonlycovers
alimited range ofproducts within eachindustry. Thetextoftheresolution hasalready beensubmitted
totheWTO ondiskette. Theresolution contains anitem-by-item listofthespecific products subject
tocompulsory certification. Therefore, onlyasmall classofgoods issubject tocompulsory certification.
Question 95.
What significant sectors oftheeconomy remain outside thescope ofthisDecision?WT/ACC/KGZ/5/Add.2
Page28
Answer:
Sectors oftheeconomy thatareoutside ofthescope ofthisresolution include ferrous metals,
mining, mosttypes ofconstruction materials, fuelindustry, tourism industry, scientific institutions,
production offeedforlivestock andflour mills.
Question 96.
What hasbeentheexperience withtheDecision 260? Isthecertification process sufficiently rapid
soastoensure theinfusion ofnewgoods and/or technologies intotheeconomy? What isthetime
lineforcertification?
Answer:
Cabinet ofMinisters Resolution No.260applies toarelatively small range ofproducts. The
fewgoods subject tocompulsory certification obtain thatcertification within arelatively briefperiod
oftimeprovided therequired documentation isprovided.
Question 97.
Does thecertification requirement apply toeach shipment orimport? Isthere aninspection
requirement foreachshipment orimport?
Answer:
Thecertification requirement applies toevery shipment ofgoods subject tomandatory
certification. Onecertificate maybeissued tocover alargeshipment tobeimported overtimeinpieces
orlots,butthetermofitsvalidity cannot exceed 3years.
IV.3(j) Government-mandated countertrade andbarter
Question 98.
Does theGovernment maintain statistics onthevalue andquantity ofgoods imported intoand
exported from theKyrgyz Republic through counter-trade andbartering, particularly within
theCIS? Ifso,please furnish these statistics totheWorking Party. Ifnot,please describe, to
theextent possible, theportion oftheeconomy accounted forbycounter-trade andbartering,
aswellasthegeneral categories ofproducts traded inthismanner.
Answer:
According tocustoms accounting, barter transactions werecarried with30countries in1996,
mainly withRussia, Kazakstan, Uzbekistan andChina. Thetotalvalue ofbarter transactions in1996
isestimated atUS$92.9 million.
Inbarter trade withtheCIScountries, thevalue ofexported products wasUS$45million,
andimported products US$36.1million. Tobacco, sugar, textile products, electro-technical equipment
andparts therefor werethemain barter exports, while oilproducts, non-precious metals andarticles
ofthereof, rawsugar, timber andarticles thereof constituted themajor barter imports.
Commodity exchange withnon-CIS countries hadanon-balanced character: thevalue of
barter exports wasmore thantwice thevalue ofbarter imports. Barter trade wasmainly carried out
withChina, Cyprus, Austria andRumania. Wool, cotton-fibre, rawleather were themain exports
inthistrade, andfoodproducts andrawmaterials fortheirproduction, machines, equipment and
instruments were themain imports.WT/ACC/KGZ/5/Add.2
Page29
IV.3(l) Government procurement practices
Question 99.
TheKyrgyz Republic notes thatitisdrafting alawongovernment procurement entitled "On
theProcurement ofGoods, Works andServices". Please submit acopy ofthedraft lawtothe
Working Party.
Weencourage theKyrgyz Republic tousetheWTO Government Procurement Agreement (GPA)
asaguide indrafting thislaw.
Asapartofitsprotocol accession commitments, weseekacommitment from theKyrgyz Republic
toaccede totheGovernment Procurement Agreement andsubmit aschedule ofcommitments
totheGPA Committee toinitiate negotiations nolaterthan3months after thedateofaccession
totheWTO.
Answer:
Acopyofthedraftlawisprovided inAnnex A-1.
IV.4 Policies Affecting Foreign Trade inAgricultural Products
IV.4(a) Imports
Question 100.
Why didtheKyrgyz Republic decide tochange itsflat10percent customs dutyonagricultural
products toanewtariff regime thatwillhave rates ofdutyranging from zeroto25percent?
Answer:
Thecurrent tariff regime ,characterized byaflat10%rateapplicable toalmost allimports,
wasnever intended tobeapermanent system. Itwasinstituted shortly afterindependence inorder
toprovide ourrelatively newnational customs service withaneasytoadminister system. Today, after
several years ofeconomic reforms, theKyrgyz Government hasdecided todevelop amoreeconomically
sophisticated system thatisbased onabetter understanding ofourtrade flows andtheneeds ofour
stillfledgling market economy.
Question 101.
Willtheaverage tariff rateforagricultural products under thenewtariff regime exceed theexisting
tenpercent average rate?
Answer:
Theaverage tariffrateforagricultural products under theproposed tariffregime willremain
atabout 10percent.
IV.4(b) Exports
Question 102.
TheKyrgyz Republic istobecommended foritsliberal trade regime foragricultural exports.
Wewould liketoseethisregime bound intheaccession commitments. IstheKyrgyz Republic
prepared tobinditsexport subsidies foragricultural products atzero?WT/ACC/KGZ/5/Add.2
Page30
Answer:
Thegovernment ofKyrgyzstan isconsidering theeffects ofbinding export subsidies for
agricultural products atzero.
Question 103.
IstheKyrgyz Republic prepared tobindtheexisting policies ofnotrequiring licenses forexport
ofagricultural products andnotimposing tariffs orquotas ontheexport ofagricultural products?
Answer:
Yes,theKyrgyz Republic isprepared totemporarily bindtheexisting policies regarding
agricultural exports.
IV.4(e) Internal policies
Question 104.
TheGovernment 'sprogram forthereform oftheagriculture sector provides forthecomplete
cessation -asof1995 -ofdirect State financial payments toallagricultural enterprises, withthe
exception of6special animal breeding and26seedproducing farms. DoestheGovernment intend
tocease thedirect state financial support payments tothespecial animal breeding andseed
producing farms inthefuture? What isthetime frame forthecessation ofthese support
payments?
Answer:
Duetoalackoffinancial resources, thestate currently provides nosupport tothe
above-mentioned farms. Breeding farms engaged inraising pedigree horses havebeenabletocover
theircostswithout stateassistance, butfarms fortheproduction ofseeds aresupported bytheEuropean
Commission onTechnical Issues. Theassistance rendered in1995 wasanestimated 15-20 million
soms. In1997assistance forsuchfarms isprovided forinagovernment program forsheep breeding.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
V.1 General
V.1(a) Intellectual property policy
Question 105.
Weapplaud thedesire oftheKyrgyz Republic toputinplace asystem ofintellectual property
protection modeled onthesystems found indeveloped market economy countries. Wenotethat
theKyrgyzRepublicisintheprocessofadoptingCivilCodeprovisionstoestablishbasicintellectual
property rights andprotection andthevarious additional specialized laws, dealing withspecific
types ofintellectual property.
Please provide theWorking Party withtextsofthese draft lawsattheearliest opportunity. What
isthelegislative status ofeachofthese bills?
Answer:
Theintellectual property lawscurrently indraftform andthelegislative status ofeachare
asfollows:WT/ACC/KGZ/5/Add.2
Page31
i. ThePatent Law(under consideration byParliament; adoption isplanned forthefirsthalf
of1997);
ii. Thelaw"OnTrade Marks, Service Marks andAppellations ofOrigin" (under consideration
byParliament; adoption isplanned forthefirsthalfof1997);
iii. Thelaw"OntheLegal Protection ofSoftware andDatabases" (under review bythe
Government; exact timeofconsideration willdepend onParliament 'sworkload);
iv. Thelaw"OnLegal Protection ofIntegrated Circuit Topographies" (under review bythe
Government; exact timeofconsideration willdepend onParliament 'sworkload);
v. Thelaw"OnSelection Achievements" (under review bytheGovernment; exact timeof
consideration willdepend onParliament 'sworkload); and
vi. Thelaw"OnCopyrights andNeighbouring Rights" (under consideration byParliament;
adoption isplanned forthefirsthalfof1997).
Copies ofalldraftlawsareattached inAnnex C1through C-6.
Question 106.
Weseekadoption andimplementation ofaTRIPS-consistent intellectual property regime prior
toWTO accession. Does theKyrgyz Republic foresee anyproblems inaccomplishing this?
Answer:
Theobvious problem isdelay inadopting thedraftlaws. Theabove-referenced drafts have
already beenunder consideration bytheParliament forfouryears. However, itisanticipated that
atleastthreeofthedraftlawswillbeadopted inthefirsthalfof1997, andthatParliament willconsider
theother draftlawswithin areasonable timethereafter.
V.1(c) Membership ofinternational intellectual property conventions
Question 107.
Does theKyrgyz Republic intend tojointheBerne Convention fortheProtection ofLiterary and
Artistic Works andtheGeneva Convention ontheProtection ofProducers ofPhonograms? If
not,howwilltheir requirements incorporated intheWTO beimplemented intheregime ofthe
Kyrgyz Republic?
Answer:
TheKyrgyz Republic intends tojointheBerne Convention (1971). TheState Agency for
Intellectual Property ("SIPA") iscurrently conducting preparatory work necessary forjoining that
Convention.
Forthetimebeing, theKyrgyz Republic isnotconsidering joining theGeneva Convention
ontheProtection ofProducers ofPhonograms. Therights ofproducers ofphonograms willbeprotected
bytheLaw"OnCopyright andNeighbouring Rights", which includes basic provisions protecting the
rights ofthese producers incompliance withapplicable WTO requirements.WT/ACC/KGZ/5/Add.2
Page32
Question 108.
Concerning intellectual property obligations theKyrgyz Republic hasassumed pursuant toits
accession totheEurasian Patent Convention andthrough itssigning ofabilateral agreement with
theGovernment oftheRussian Federation onCooperation intheSphere ofProtection ofIndustrial
Property. Please listanddescribe anysuchobligations.
Answer:
Theobligations oftheParties onthebasisofthereferenced bilateral agreements areasfollows:
- providing physical andlegalpersons ofoneparty withtherights andprivileges provided to
localphysical andlegalpersons oftheother party;
- recognition ontheterritory ofthecountry oftheprotection documents oftheUSSR;
- payment ofroyalties inaccordance withtheLawoftheparty using theinventions;
- thepossibility ofconverting protection documents oftheUSSR intothose oftheKyrgyz
Republic;
- granting oftherightofprior useofaninvention orindustrial design without execution of
alicense agreement, withpayment ofaroyalty inaccordance withthelawoftheparty using
theinvention ordesign;
- granting oftherighttoconduct business activities afterthereceipt ofprotection documents,
andtherighttomaintain theirvalidity directly withthepatent agencies oftheparties, without
apatent attorney;
- granting oftheright topayfeesforconducting legally significant activities related tothe
protection ofindustrial property incompliance withapplicable regulations, currency and
amounts provided forthenational applicants oftheparties;
- harmonisation national legislative acts;and
- exchange ofpatent information, legislative andother documents, experience, andexperts in
theareaofindustrial property protection.
Question 109.
Aretheintellectual property benefits provided bythese agreements alsogranted tothird country
nationals onamost favoured nation basis?
Answer:
No.Benefits provided bythese agreements arenotgranted tothirdcountry nationals ona
most-favoured-nation basis.
V.1(d) Application ofnational andMFN treatment toforeign nationals
Question 110.
Footnote17ofWT/ACC/KGZ/3statesthattheKyrgyzRepublicintendstoeliminate,induecourse,
thediscriminatory treatment inthemethod ofcalculating application, registration, renewal and
other feespaidbydomestic, foreign andCISholders ofintellectual property rights. Article 2
oftheParis Convention fortheProtection ofIndustrial Property (theParis Convention), which
isincorporatedbyreferenceinArticle2.1oftheTRIPSAgreement,providesfornationaltreatment.
Does theKyrgyz Republic intend toprovide national treatment, through thereduction or
elimination offeesforintellectual property protection, toforeigners whoaremembers ofcertain
specified classes, specifically, veterans oftheGreat Patriotic War, students anddisabled persons?WT/ACC/KGZ/5/Add.2
Page33
Answer:
TheKyrgyz Republic intends toapply thesame feestructure toforeign students anddisabled
persons asitapplies toKyrgyz students anddisabled persons, thusassuring national treatment forthose
classes. Currently, theissueonprivileges related tofeesgranted toveterans oftheGreat Patriotic War
hasnotbeendefinitively resolved, because thisprivilege provided favourable treatment forcitizens
oftheUSSR.
Question 111.
What istheplantoeliminate thepractice ofcharging higher feesfornon-CIS nationals, inlight
oftheKyrgyz Republic 'smembership intheParis Convention?
Answer:
Kyrgyzpatent intends tointroduce asingle-fee system foralllocal andforeign applicants.
Thenewsystem willbeputintoplace aftertheadoption ofdraftlawswhich comply withtheParis
Convention.
V.2 Substantive Standards ofProtection
Question 112.
Section V.2oftheMemorandum outlines provisions ofPartIoftheKyrgyz Republic 'sCivilCode
thatrefer totheexistence ofrights incertain forms ofintellectual property andstates thatthese
rights willbedeveloped andrefined byadditional provisions inlaterparts oftheCivil Code and
otherspecializedlaws.Pleasedescribetheseadditionalprovisionsandspecializedlaws,andprovide
atimetable fortheir introduction andimplementation.
Answer:
Afullsection onintellectual property iscontained inPartIIIoftheCivil Code. PartIIIis
currentlyunderconsiderationbyaspecialParliamentaryCommittee.Itisanticipatedthatfinaldiscussion
andadoption ofPartIIIwilltakeplace in1997.
Theintellectual property section ofCivil Code PartIIIconsists ofseven chapters (Chapter
54-Chapter 60).
Chapter 54covers general topics, including: (1)objects ofintellectual property andtheirlegalprotection;
(2)property andnon-property rights; (3)exclusive rights ofauthorship; (4)agreements onthecreation
andexploitation ofworks; and(5)means ofprotection, including withdrawal andpublication.
Chapter 55covers copyrights. Thechapter addresses (1)objects ofcopyright; (2)works thatarenot
objects ofcopyright; (3)authorship; (4)freeandunlicensed useofworks; (5)theterritorial andtemporal
scope ofcopyright; (6)author 'sagreements; and(7)liability forinfringement.
Chapter56governsneighbouringrights,andspecificallymentions(1)objectsandentitiesofneighbouring
rights; and(2)rights ofperformers, producers ofphonograms, andairandcablebroadcast organizations.
Chapter 57covers industrial property rights, including (1)protection ofinventions, utility models and
industrial designs; (2)exclusive rights; (3)authorship; (4)work-for-hire andlicense agreements; and
(5)liability forpatent infringement.
Chapter58addressesselectionachievements,including(1)protectionofrightstoselectionachievements;
and(2)therights andobligations ofapatent-holder.WT/ACC/KGZ/5/Add.2
Page34
Chapter 59governs theprotection ofundisclosed (confidential) information. Thischapter specifically
mentions (1)rights toprotection ofundisclosed (confidential) information; and(2)liability forillegal
useofsuchinformation.
Finally, Chapter 60covers trademarks andrelated issues, inparticular (1)tradenames; (2)trademarks;
and(3)appellations oforigin.
Inaddition totheintellectual property provisions ofCivil Code PartII,there aresixdraft
specialized lawscurrently under consideration byParliament:
i. ThedraftPatent Lawconsists ofninesections. Section 1covers general concepts. Section
2defines conditions ofpatentability forinventions, industrial designs andutility models.
Section 3defines entities which areaccorded rights under thelaw.Section 4defines exclusive
rights toobjects ofindustrial property. Section 5setsforthprocedures forobtaining apatent,
preliminary patent orcertificate. Section 6covers termination ofpreliminary patents, patents
andcertificates. Section 7defines therights andbenefits ofauthors andpatent-holders. Section
8governs theenforcement ofthose rights. Section 9contains miscellaneous finalprovisions.
ii. Thedraftlaw"OnTrade Marks, Service Marks andAppellations ofOrigin" comprises ten
chapters.Chapter1definesgeneraltrademarkconcepts,includingexclusiverightsandgrounds
forrefusal ofregistration. Chapter 2covers registration procedures, including making an
application, expert examinations, appeals ofexamination decisions, registration, publication,
issuance ofcertificates, andtrademarkterms. Chapter 3dealswithcollective marks. Chapter
4governs theuseoftrademarks, andconsequences ofnon-use. Chapter 5covers transfers
ofmarks. Chapter 6defines howtrademark protection maybelost.Chapter 7covers general
concepts related toappellations oforigin. Chapter 8setsoutregistration procedures for
appellations oforigin. Chapter 9covers theuseofappellations oforigin. Chapter 10defines
howlegalprotection foranappellation oforigin maybelost.
iii. Thelaw"OnLegal Protection ofSoftware andDatabases" consists offourchapters. Chapter
1setsoutthemainconcepts usedinthelaw;terms ofcopyright; andtemporal andterritorial
limits ofprotection. Chapter 2defines property (economic) andnon-property (moral) rights,
aswellasregistration procedures. Chapter 3defines thegrounds foruseofsoftware and
databases. Chapter 4deals withinfringement, elements ofprotection, andinternational
cooperation.
iv. Thelaw"OnLegalProtectionofIntegratedCircuitTopographies"consistsoffourteenArticles.
Article 1defines various terms usedinthelaw.Article 2defines therelationships regulated
bythelaw. Article 3defines theobjects oflegalprotection. Article 4deals withauthorship.
Article 5covers economic (property) rights. Article 6governs theassignment ofthose rights.
Article 7deals withwork-for-hire andcommissioned works. Article 8defines actions not
recognized asinfringement. Article 9governs registration andnotification. Article 10sets
outterms forexclusive rights. Article 11setsouttherights oftheauthor orother owner of
therights inatopography. Articles 12-14 dealwithinternational protection issues.
v. Thedraftlaw"OnSelection Achievements" consists ofseventeen sections. Section 1covers
general concepts. Section 2deals withprotectablity ofselection achievements. Section 3
describes patent application procedures. Section 4covers protection ofselection achievements.
Section 5defines therights andobligations ofapatent-holder. Section 6governs license
agreements, including openandcompulsory licenses. Section 7defines authorship. Section
8covers invalidity andnullification. Section 9dealswithregistration andpublication. SectionWT/ACC/KGZ/5/Add.2
Page35
10discusses governmental encouragement ofthecreation anduseofselection achievements.
Section 11governs appeals. Section 12covers selection achievement certificates. Section
13setsoutpatent fees. Section 14governs enforcement ofpatent rights. Section 15explains
thegenetic fundoftheKyrgyz Republic. Section 16governs import andexport controls on
selection achievements. Section 17deals withinternational protection issues.
vi. Thedraftlaw"OnCopyrights andNeighbouring Rights" consists offivesections, including
50articles. Section 1defines thesubject ofregulation andbasic concepts usedinthelaw.
Section 2covers theobjects ofcopyright, authorship, authors 'rights, transfers ofproperty
rights, andterms ofcopyright. Section 3,which covers neighbouring rights, defines entities
ofneighbouring rights, theirrights, andtheterms ofneighbouring rights. Section 4deals
withcollective management ofproperty rights byorganizations created toprovide property
rights fortheholders ofcopyrights andneighbouring rights incases where exploitation on
anindividual basis isdifficult. Section 5setsforth civilandother enforcement measures.
Eachofthedraftlawsprovides thatforeign persons andentities enjoy thesamerights aslocal
persons andentities.
Thelegislative status ofeachoftheforegoing draftlawsisprovided above inresponse to
question 104,Section 1(a).
Question 113.
Section V.2oftheMemorandum alsorefers toexisting protection fortrademarks andtrade secrets
contained insection 5oftheAnti-monopoly Law. Please describe indetail theprocedure for
invoking thisprotection, theprocess followed bythebody responsible forreviewing suchmatters,
andtheremedies available intheevent ofafavourable decision.
Answer:
Special procedures forinvoking thisprotection havenotyetbeenestablished. Violations are
nowidentified through auditing conducted bytheDepartment onAnti-monopoly Policy.
V.2(a) Copyright andrelated rights
Question 114.
Concerning thedraft law"OnCopyrights andRelated Rights". Please provide theWorking Party
withacopy ofthisdraft legislation.
Answer:
Acopyofthedraftlegislation isprovided inAnnex C-3.
Question 115.
Aretheprovisions ofthisdraft lawinconformity withtherequirements oftheBerne Convention
fortheProtection ofLiterary andArtistic Works? Please identify anddescribe anyprovisions
thatarenotconsistent withBerne Convention requirements.
Answer:
Thedraftlawiscurrently undergoing twominor amendments toensure compliance withthe
BerneConvention.Article27(5),whichcurrentlygrantslongercopyrighttermstoKyrgyzwarveterans,
isbeing deleted toensure compliance withtheBerne Convention 'snational treatment provision. A
similar provision atArticle 43,which grants longer neighbouring rights terms toKyrgyz veterans,WT/ACC/KGZ/5/Add.2
Page36
isalsobeing deleted. Otherwise, thedraftlaw"OnProtection ofCopyrights andNeighbouring Rights"
complies withtherequirements oftheBerne Convention.
Question 116.
Willthedraft law"OnCopyrights andRelated Rights" protect compilations ofdataorother
material?
Answer:
Yes.
Question 117.
Section V.1(b) oftheMemorandum refers toregistration ofcopyrights intheState Agency for
Intellectual Property. TheBerne Convention fortheProtection ofLiterary andArtistic Works,
incorporated byreference inArticle 9.1oftheTRIPS Agreement, prohibits anyformalities as
acondition forprotection ofcopyrights. Isregistration offoreign copyrights required toobtain
protection intheKyrgyz Republic and, ifso,howisthisjustified inlight oftheprovisions of
theTRIPS Agreement?
Answer:
No;registration isoptional andisnotaprerequisite toprotection.
Question 118.
Thesection ofyour Memorandum onforeign trade V.2(a) mentions protection fortherights
ofperformers, producers ofphonograms, andbroadcast organizations onlyinrelation tothe
draft copyright lawIsprotection currently available toperformers, producers ofphonograms,
andbroadcast organizations under theCivilCode oranytemporary regulations? Ifso,what rights
areprovided, forhowlong, andhowmaythese rights beenforced?
Answer:
Legislation currently inforce doesnotspecifically provide foranyprotection ofrights of
performers, producers ofphonograms andbroadcast organizations. However, thedraft legislation
which grants those protections isexpected tocome intoforce thisyear.
Question 119.
Article 18oftheBerne Convention, incorporated byreference inArticle 9.1oftheTRIPS
Agreement, requires thatprotection under theConvention apply toallworks thatarenotinthe
public domain intheir country oforigin andthathave nothadafullterm ofprotection inthe
country applying theBerne Convention. Howwillthisobligation beimplemented under theKyrgyz
Republic 'sproposed copyright lawforbothcopyrighted works andsound recordings?
Answer:
Thedraftlaw"OnCopyrightandNeighbouringRights"containsthefollowingprovisiondealing
withthisissue:
Ifaninternational agreement towhich theKyrgyz Republic isasignatory establishes standards
other thanthose contained inthislaw,thentherulesoftheinternational agreement shallbe
applied.
Thereferenced provision inArticle 18oftheBerne Convention shallbeapplied through this
general provision.WT/ACC/KGZ/5/Add.2
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Question 120.
Articles 11and14.4oftheTRIPS Agreement require thatrental rights beprovided atleastfor
computer programs, cinematographic works (except incertain circumstances), andsound
recordings. Arerental rights currently available under theCivil Code oranytemporary
regulations? Ifso,what rights areprovided, forhowlong, andhowmaythese rights beenforced?
Answer:
TheCivil Code oftheKyrgyz Republic setsoutadefinition ofexploitation ofawork ofan
author byanother person (Article 501).Thedefinition ofexploitation isunderstood toinclude leasing
relationships, although theyarenotdirectly specified intheCivilCode. Article 517oftheCivil Code
provides forthepossibility ofconcluding authors 'agreements ontransfer ofworks ofliterature, science,
orart,forexploitation indifferent ways. Thelistofauthors 'agreements given inthisArticle isnot
exhaustive.
Question 121.
How willthisobligation beimplemented under theKyrgyz Republic 'sproposed copyright law
forbothcopyrighted works andsound recordings?
Answer:
Thedraftlaw"OnCopyright andNeighbouring Rights" (atArticle 16)specifically provides
forrental rights. Under thatArticle, anowner ofanaudiovisual work, software, database, ormusical
composition intheformofamusic texthastherighttodistribute thatwork through leasing, regardless
oftheownership ofactual copies ofthework.
Question 122.
Section V.1(d) oftheMemorandum refers tofeesfortheregistration ofcomputer programs,
databases. Article 10oftheTRIPS requires thatcomputer programs beprotected asliterary
works andthatcompilations ofdata, including computer databases, beprotected under copyright
law. TheBerne Convention fortheProtection ofLiterary andArtistic Works, incorporated by
reference inArticle 9.1oftheTRIPS Agreement, prohibits anyformalities asacondition for
protection ofcopyrights. What, ifany,benefits areaccorded totheowners ofregistered computer
programs ordatabases thatarenotavailable tounregistered owners ofcomputer programs
databases?
Answer:
TheTemporary Regulation ontheLegal Protection ofSoftware, Databases andTopographies
ofIntegrated Circuits (atparagraph 2.2)provides thatsoftware isprotected asaliterary work.
There arenobenefits accorded totheowners ofregistered programs thatarenotalsoavailable
toowners ofunregistered programs.
V.2(b) Trademarks, including services marks
Question 123.
Please provide theWorking Party withacopy ofthedraft trademark law,currently pending
before Parliament .
Answer:
Thedraftlawisincluded inAnnex C-2.WT/ACC/KGZ/5/Add.2
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Question 124.
DotheTemporary Regulations anddraft Trademark Lawprovide forcancellation ofatrademark
application fornon-use?
Answer:
TheTemporaryRegulationscurrentlyinforcedonotprovideforcancellationbasedonnon-use.
However, Article 21ofthedraftTrademark Lawprovides forcancellation ofamark thathasnotbeen
usedfor3years.
Question 125.
Article BISoftheParis Convention, incorporated byreference inArticle 2.1oftheTRIPS
Agreement, requires thatwell-known marks beprotected. Isprotection forwell-known marks
currently available under theCivil Code oranytemporary regulations? Howwillthisobligations
beimplemented under theKyrgyz Republic 'sproposed lawontrademarks, service marks and
appellations oforigin?
Answer:
Civil Code PartI,which iscurrently inplace, contains nospecific provisions onwell-known
marks.
Thecurrent "Temporary Regulations onIndustrial Property," incompliance withtheParis
Convention, donotrequire registration ofwell-known marks. However, voluntary registration for
well-known marks ispossible. Atpresent, SIPA iscarrying outwork todevelop methods todetermine
whether atrademark iswell-known, andisinvestigating theexperience ofother countries. Toenforce
rights inatrademark, including awell-known mark, theowner ofthemark mayfileacivilaction
incivilcourt against anunauthorized userofthemark. Theonlyjudicial remedies currently available
are(i)aninjunction, (ii)anaward ofcompensation forlosses and(iii)anassessment ofapenalty.
TheKyrgyz Republic 'sproposed law"OnTrademarks, Service Marks andAppellations of
Origin" wasdrafted toensure compliance withtheParis Convention. Likethetemporary regulations,
thedraftlawdoesnotrequireregistrationofwell-knownmarks,butvoluntaryregistrationforwell-known
marks remains possible. Incompliance withArticle 6bisoftheParis Convention, thedraftlaw(at
Article 6)provides that"marks maynotberegistered astrademarks iftheyareidentical orsufficiently
similar astocause confusion withawell-known mark intheterritory oftheKyrgyz Republic."
Toensure thatholders ofwell-known marks canenforce theirrights, thedraftlawprovides
forthesamejudicialremediesavailableundertheexistingregulations.Inaddition,thedraftlawprovides
thatacourt mayorder seizure ofcounterfeit goods, aswellascriminal penalties forongoing violations.
Theprovisions apply equally tocases involving well-known andordinary marks.
Question 126.
Ispriority currently granted toapplicants ofParis Convention countries, iftheyapply for
registration intheKyrgyz Republic within sixmonths ofthenational filing?
Answer:
Yes.
Question 127.
Under theCivil Code ortemporary regulations onindustrial property, isitpossible tooppose
registration ofamark ortoseekitscancellation, ifithasalready been registered? What are
theprocedures foropposing registration orcancellation?WT/ACC/KGZ/5/Add.2
Page39
Answer:
TheCivil Code currently inforce doesnotdealwithopposition orcancellation.
Under the"Temporary Regulations onIndustrial Property," (atArticle 16),anyperson or
legalentity mayoppose theregistration ofamark, orseekcancellation ofaregistered mark. Inboth
cases, apetition must befiledwiththeAppeals Board ofSIPA. TheAppeals Board must consider
thepetition within 6months fromthedateofitsreceipt. Boththepetitioner andtheowner ofthemark
havetherighttoparticipate intheAppeals Board 'sconsideration ofthepetition.
Question 128.
Please describe thenature ofthemarks thatareeligible forregistration.
Answer:
Ingeneral, amark iseligible forregistration ifitserves todistinguish thegoods andservices
ofoneperson orentity fromsimilar goods andservices ofother persons orentities. Verbal, graphic,
volumetric andother signs ortheircombinations mayberegistered astrade marks.
Non-registrable marks include marks which arenotdistinctive; national symbols, flags, and
emblems; official names ofstates, emblems, abbreviated orfullnames ofinternational or
intergovernmentalorganizations,official,control,guaranteestampsandhallmarks,seals,anddecorations;
marks generally applicable asmarks ofgoods ofacertain kind(i.e.,generic marks); generally accepted
terms andsymbols; andmarks which arepurely indications ofappearance, quality, quantity,
characteristics, purpose, value ofgoods, oroftheplace andtimeoftheirproduction orsale(i.e.,
descriptive marks). Moreover, nomark mayberegistered which isfalseorliable tocause consumer
confusion regarding thegoods ortheirmanufacturer. Marks contradicting thepublic interest, principles
ofhumanity andmorality arealsonoteligible forregistration.
Marks mayalsonotberegistered iftheyaresosimilar oridentical astocause confusion with:
- trademarks previously registered orfiledforregistration intheKyrgyz Republic under
- thename ofanother person inrelation toidentical goods;
- trademarks ofother persons which areprotected without registration under theinternational
agreements oftheKyrgyz Republic;
- tradenames (ortheircomponents) belonging toother persons whoobtained therighttothese
designations before thereceipt ofanapplication foratrademark inrelation toidentical goods;
- appellations oforigin ofgoods protected intheKyrgyz Republic, except incases inwhich
theyareincluded asanunprotected element inatrademark, registered totheindividual who
hastherighttousesuchadesignation.
Designations shallnotberegistrable astrademarks where theypresent:
- industrial designs therights, towhich belong toother persons intheKyrgyz Republic;
- names ofwell-known works ofscience, artorliterature orquotations therefrom, orworks
ofartortheircomponents, without consent ofthecopyright author oranappropriate competent
body;
- names, pseudonyms andtheirderivatives, portraits andfacsimiles offamous persons, without
consent oftheirheirs oranappropriate competent body.WT/ACC/KGZ/5/Add.2
Page40
V.2(c) Geographical indications, including appellations oforigin
Question 129.
Please describe thenature oftherights tobeprovided geographical indications intheproposed
draft trademark law.
Answer:
Under thedraft law"OnTrade Marks, Service Marks andAppellations ofOrigin," legal
protection ofanappellation oforigin arises onthebasis ofregistration. Anappellation oforigin
mayberegistered byoneormore entities orpersons who(i)arelocated inthegeographical location
indicated bytheappellation oforigin; and(ii)produce goods thathavespecial characteristics which
areexclusively ormainly determined bynatural conditions and/or human factors characteristic ofthe
geographical place indicated intheappellation. Registration isvalidforanunlimited period oftime.
Aparty whoregisters anappellation oforigin obtains therighttoaffixtheappellation tohis
goods, provided thathisgoods have thespecial characteristics indicated above. Theholder ofa
registration document mayplace awarning mark neartheappellation oforigin, indicating thatthe
designation usedisanappellation oforigin registered intheKyrgyz Republic. Theholder ofa
registration document maynotlicense theuseoftheappellation toother persons.
Aregistered appellation oforigin maynotbeusedbyparties whodonothavearegistration
document. Also, noonemayaffixaregistered appellation togoods which aresimilar tothose for
which registration wasgranted, because suchuseislikely toleadtoconsumer confusion.
Itshould benoted thatthedrafttrade mark lawtreats appellations oforigin distinctly from
mere geographical indications. Under Article 5(6)ofthedraftlaw,purported marks which merely
describe agood'splace ofmanufacture orsalearebarred fromregistration. Moreover, amark which
includes deceptively misdescriptive geographical terms would benon-registrable under Article 5(7)
ofthesamelaw,which prohibits theregistration ofmarks which arefalseormisleading astothegoods
ortheirmanufacturer.
Question 130.
Isprotection currently available forgeographical indications, including appellations oforigin,
under theAnti-Monopoly law?
Answer:
Yes.Under theLaw"OnRestricting aMonopolistic Activity, Development andProtection
ofCompetition"(atSection5,Article19)appellationsoforiginareprotected.Remediesforinfringement
ofprotected appellations oforigin include: (1)disgorgement ofillegal profits; (2)indemnification,
including indemnification forlostprofits; and(3)punitive damages.
V.2(d) Industrial designs
Question 131.
Under theTemporary Regulations onIndustrial Property, areindustrial designs registered or
isexamination ofapplications required?
Answer:
Both;industrialdesignsareregistered,andexaminationofapplications,accordingtoprocedures
established bytheTemporary Regulations, isaprerequisite forregistration.WT/ACC/KGZ/5/Add.2
Page41
Question 132.
Please describe therights acquired inindustrial designs andhowmaytheybeenforced?
Answer:
Theholder ofapatent toanindustrial design hastheexclusive righttomanufacture, import,
offer forsale,sellandotherwise introduce thedesign intocommerce. Unauthorized manufacture,
importation, offer forsale, saleorintroduction ofaprotected design intocommerce constitutes
infringement.
Thefollowing donotconstitute infringement:
- theuseofmechanisms containing patented industrial designs intheconstruction oruseof
transport vehicles ofother countries, where suchvehicles aretemporarily orincidentally in
theterritory oftheKyrgyz Republic;
- theconduct ofscientific research orexperiments using amechanism containing apatented
industrial design;
- theuseofmechanisms containing patented industrial designs inresponse tonatural disasters,
catastrophes, epidemics andother extreme situations, aslongascompensation islatermade
tothepatent holder;
- theprivate, non-commercial useofamechanism containing apatented industrial design; or
- theuseofamechanism containing apatented industrial design, where themechanism has
beenlegally introduced intocommerce.
V.2(e) Patents
Question 133.
Please provide acopy ofthedraft patent lawandadvise itsstatus inthelegislative process.
Answer:
Thedraftlawisincluded inAnnex C-1. Itslegislative status isexplained intheresponse
toquestion 104.
Question 134.
TheTemporary Regulations provide forpatent protection foraperiod oftwenty years from the
"priority date". TRIPS Article 33provides patent protection fortwenty years from thedateof
filing. How istheterm "priority date" defined forpurposes oftheTemporary Regulations and
thedraft patent law?
Answer:
Under boththeTemporary Regulations andthedraftPatent Law, theterm"priority date"
isdefined asdateonwhich thepatent application isfiledwithSIPA.
Question 135.
How longisthegrace period referred toinsection V.2(e)?
Answer:
Thegrace period is12months. Iftheapplication ismade within 12months from thedate
ofdisclosure, thedisclosure shallnotinfluence thepatentability oftheinvention.WT/ACC/KGZ/5/Add.2
Page42
Question 136.
Please describe anycompulsory licensing provisions inthetemporary regulations, including any
thatwould permit asecond patentee tousethetechnology patented byanother, ifitwerenecessary
todosoinorder toexploit thesecond patent. Please describe howthetemporary regulations
anddraft patent lawwillensure thateachoftheconditions ofArticle 31oftheTRIPS Agreement
ismetbefore acompulsory license canbegranted?
Answer:
Thetemporary regulations donotcontain compulsory licensing provisions related tosecond
patents, asreferenced inArticle 31(1) oftheTRIPS Agreement. Nordothetemporary provisions
provide specifically fornon-assignability (asreferenced inArticle 31(e)), orfordomestic supply
restrictions (asreferenced inArticle 31(f)). However, thetemporary regulations takeintoaccount
eachoftheother requirements ofArticle 31oftheTRIPS Agreement. Article 6(3)ofthetemporary
regulations provides forcompulsory licensing incertain circumstances, specifically: (i)intheevent
ofnon-use orinsufficient useby(i)thepatent-holder ofaninvention within thefirstfouryears, or
(ii)bytheholder ofautility model certificate within thefirstthreeyears, fromthedateoftheissuance
ofthepatent orcertificate. Iftheholder refuses toconclude alicensing agreement, anyperson desiring
andprepared tousetheprotected object mayapply tothecourt foracompulsory license. Iftheholder
doesnotprovide valid reasons forthenon-use orinsufficient use,thecourt maygrant therequested
license andimpose, within itsdiscretion, limits onitsterms, including apayment obligation.
ThedraftPatent Lawalsotakes intoaccount eachoftherequirements ofArticle 31ofthe
TRIPS Agreement. ThedraftPatent Law(atArticle 13)contains compulsory license provisions similar
tothose inthetemporary regulations. However, thedraftPatent Lawcontains anadditional provision
allowing fortheunlicensed useofprotected inventions, utility models andindustrial designs incertain
emergency situations (e.g., natural disasters, catastrophes, epidemics, etc.), withasubsequent payment
ofappropriate compensation totheholder.
Question 137.
Article 27.1oftheTRIPS Agreement requires thatpatents beavailable inallfields oftechnology
withtheexception ofthose indicated inparagraphs 2and3.Integrated circuit topologies isnot
among thelisted exceptions. Willthedraft patent laweliminate theexclusion from patentability
nowapplied tointegrated circuit topologies?
Answer:
No,thedraft patent lawwillnoteliminate theexclusion. However, integrated circuit
topographies arecovered byaseparate draftlaw,andarepatentable under thatlaw.
Question 138.
Please describe therights acquired byapatentee withthegrant ofhispatent.
Answer:
Under thedraftPatent Law, apatent-holder hastheexclusive righttomanufacture, import,
offerforsale,sellandotherwise introduce thedesign intocommerce, andtoprohibit these activities
byothers. Apatent-holder alsohastherighttoown, useanddispose ofthepatent itself.WT/ACC/KGZ/5/Add.2
Page43
V.2(f) Plant variety protection
Question 139.
DotheTemporary Regulations onIndustrial Property ortheTemporary Regulations onBreeding
Achievements provide patent protection forplant microorganisms, andfornon-biological processes
fortheproduction ofplants? Does theRepublic ofKyrgyz provide similar patent protection
foranimal microorganisms, andfornon-biological processes fortheproduction ofanimals?
Answer:
Yes;theTemporaryRegulationsonIndustrialPropertyprotectplantandanimalmicroorganisms,
aswellasnon-biologicalprocessesfortheproductionofplantsandanimals.TheTemporaryRegulations
onBreeding Achievements protects thesame microorganisms andprocesses.
Question 140.
Section V.2(f) refers toprotection forplant varieties andanimal breeds under theTemporary
Regulations onIndustrial Property. Please describe thenature oftherights provided, including
anylimitations, andhowtheyareacquired.
Answer:
Theholderofapatenttoaselectionachievementhastheexclusiverighttoconductthefollowing
- activities withrespect tothepatented material:
- production andreproduction;
- bringing tomaturity forreproduction offer forsale;
- saleandother types ofdistribution;
- import andexport from theterritory oftheKyrgyz Republic; and
- storage fortheabove-mentioned purposes.
Thepatent-holder maylicense these rights tothirdparties, orprohibit theirconduct bythird
parties.
V.2(g) Layout designs ofintegrated circuits
Question 141.
Please provide totheWorking Party acopyofthedraft law"OntheLegal Protection ofIntegrated
Circuit Technologies."
Answer:
Thedraftlawisincluded inAnnex C-4.
Question 142.
Please describe thenatural oftherights acquired under thedraft lawandunder theTemporary
Regulations OntheLegal Protection ofComputer Programs, Databases andIntegrated Circuits,
andindicate theterm ofthese rights.
Answer:
Under thedraftlaw,thecreator ofacomputer program, database orintegrated circuit has
thefollowing author 's(moral) rights: therighttoclaim authorship (therightofpaternity); theright
todecide whether theauthor 'sname willappear onthework; andtherighttoinviolability. Thecreator
alsohastheexclusive economic right toexploit his/her topography athis/her discretion, through
manufacturing, distributing (which includes thenotion ofcopying), andprohibiting theexploitation
ofthework byothers without permission.WT/ACC/KGZ/5/Add.2
Page44
Thecreator 'smoral rights arevalidwithout timelimitation. Thecreator 'sexclusive economic
rights arevalid fortenyears from thedateoffirstuse,orfrom thedateofregistration ofthework
withSIPA.
Question 143.
Please describe theprocedure forobtaining thecertificate referred toinSection V.2(g).
Answer:
Theprocedure toobtain thecertificate consists ofseveral steps:
- submission ofanapplication forregistration, which complies withapplicable requirements;
- examination oftheapplication toensure compliance withtherequirements;
- iftheexamination 'sresults arepositive, dataareincluded inaRegister;
- grant ofthecertificate; and
- publication ofdataintheSIPA bulletin.
Question 144.
Please describe anyprovisions inthedraft lawandunder theTemporary Regulations relating
tocompulsory licensing forintegrated circuits.
Answer:
There arenosuchprovisions inthedraftlawortheTemporary Regulations.
Question 145.
Would aproduct containing infringing integrated circuits beconsidered toviolate therights of
theowner ofthecertificate protecting theintegrated circuit?
Answer:
Yes;aproduct containing infringing integrated circuits would violate therights oftheowner
ofthecertificate protecting theintegrated circuit, except where theuseroftheproduct didnotknow,
andshould nothaveknown, thattheproduct contained suchinfringing integrated circuits.
Question 146.
Dothedraft lawandTemporary Regulations provide protection against products thatinclude
infringing integrated circuits ,asisrequired byArticle 37.1oftheTRIPS Agreement?
Answer:
Yes;thedraftlaw"OnLegal Protection ofIntegrated Circuit Topographies" (atArticle 8)
andtheTemporary Regulations (atparagraph 21.1) comply withtotherequirements ofArticle 37.1
oftheTRIPS Agreement.
V.2(h) Requirements onundisclosed information
Question 147.
Aredamages theonlyremedy available against persons whohave misappropriated undisclosed
information? Ifnot,please describe theother remedies thatwould beavailable totheowner of
theundisclosed information.
Answer:
No;damages arenottheonlyavailable remedy. There arealsocriminal penalties for
misappropriation ofundisclosed information (atArticle 165(2) oftheCriminal Code). Also, injunctive
relief isavailable.WT/ACC/KGZ/5/Add.2
Page45
Question 148.
Please describe theactions thatcanbetaken against aparty whoacquires undisclosed information
andwhoknew, orshould haveknown, thattheinformation belonged toanother party whointended
thatitbekeptsecret because ithadcommercial value. Ifsuchactions arenotavailable currently,
howwillsuchactions bemade available inthefuture?
Answer:
TheCode oftheKyrgyz Republic onAdministrative Violations provides forremedies against
aparty whoreceives undisclosed information under suchcircumstances. Specifically, Article 151of
theCode setsoutafineoftentimes theminimum monthly wage forunauthorized useordisclosure
ofconfidential scientific, technical, productive ortrade information.
Question 149.
Please describe themanner inwhich thecriminal penalties referred toinsection V.2(h) canbe
invoked.
Answer:
Article 165(2) oftheCriminal Code provides thatthetheftofadatabase,program, orsoftware
bymeans ofunauthorized copying, printing, oranyother means ispunishable byimprisonment for
uptotwoyears, orbyafineof50-150times theminimum monthly wage.
V.2(i) Anyother categories ofintellectual property
Question 150.
Section V.2(i) states thatthedraft law"OnTrade Marks, Service Marks andAppellations of
Origin" willprohibit theregistration ofmarks thatreproduce company names owned byothers.
Please describe themanner inwhich theKyrgyz Republic ensures thatcompany names, orparts
thereof, donotreproduce trademarks, service marks, andappellations oforigin known inthe
Kyrgyz Republic.
Answer:
TheDraft Provisions onTrade Names havebeenprepared, andareexpected tobeadopted
bytheGovernment. Paragraph 2.3oftheseDraft Provisions provides thattradenames which coincide
withverbal trademarks andservice marks ofother owners protected ontheterritory oftheKyrgyz
Republic shallnotberegistrable. Further, trade names which include well-known names shallnot
besubject toregistration.
Incompliance withParagraph 4.4.6 oftheTemporary Provisions onIndustrial Property of
theKyrgyz Republic, designations which aresimilar oridentical toexisting marks, totheextent of
causing confusion withexisting trademarks (ortheircomponents), andwhich belong toother persons
whoobtained therighttothename before thereceipt oftheapplication forthetrademark inrelation
tothesame goods cannot beregistered astrademarks.
V.3 Measures toControl Abuse ofIntellectual Property Rights
Question 151.
Doesimportation satisfy theworking requirement forpatented inventions, asprovided bysection
6.3oftheTemporary Regulations onIndustrial Property? Importation must satisfy theworking
requirement inorder fortheuserequirement tosatisfy national treatment requirements.WT/ACC/KGZ/5/Add.2
Page46
Answer:
Yes;importationsatisfiestheworkingrequirementcontainedinparagraph6.3oftheTemporary
Regulations onIndustrial Property.
V.4 Enforcement
V4.(a) Civil judicial procedures andremedies
Question 152.
Areinjunctions available intheKyrgyz Republic tostopinfringement inaddition todamages?
What aretherequirements forobtaining aninjunction?
Answer:
Yes,injunctions areavailable. Thebasic requirement istoestablish thefactofillegal use.
Currently, SIPA isconsidering developing more detailed requirements.
Question 153.
Mayjudges oradministrative officials order theseizure anddestruction ofinventories ofinfringing
goods andoftheequipment used toproduce theinfringing goods? What procedures must be
followed andwhat evidence presented toobtain suchremedies?
Answer:
Yes.Incompliance withlegislation inforce (Civil Procedural Code, Article 135.1) judges
may,upontherequest ofaplaintiff orwithin theirowndiscretion, order theseizure ofinfringing goods.
Thedraftlawsprovide forfurther measures, suchasconfiscation anddestruction ofinfringing goods
andequipment usedtoproduce infringing goods. Toobtain suchremedies, itisnecessary tosubmit
tothecourt anapplication thatindicates obvious infringement.
V.4(b) Provisional measures
Question 154.
Itisnotclear from section V.4(b) oftheMemorandum whether judicial andadministrative
authorities havetheauthority toprovide temporary remedies during alegal proceeding inorder
toprevent serious injury ortopreserve evidence. Please describe anylegal means thatexist
providing forsuchprovisional relief andwhat circumstances must beshown toinvoke suchrelief.
Answer:
Judicial andadministrative authorities dohavetheauthority toprovide temporary remedies
during alegal proceedings inorder toprevent injury ortopreserve evidence. Inaccordance with
Article 134oftheCivil Procedure Code oftheKyrgyz Republic: thecourt orajudge, attherequest
ofthepersons participating intheproceeding, orat[thecourt orjudge's]owninitiative, maytake
actions toprovide provisional remedies. Provisional remedy ispermitted atanystageoftheproceeding,
ifthefailure toprovide suchremedy willrender itdifficult orimpossible toexecute thefinaldecision
ofthecourt. Oneoftheprovisional remedies available under theCivilProcedure Code (atArticle 135)
isthefreezing ofthedefendant 'sassets pending litigation.
V.4(d) Anyspecial border measures
Question 155.
Please describe theKyrgyz Republic 'splans forproviding border enforcement, atlistwithrespect
tocounterfeit trade marked goods andpirated copyrighted works.WT/ACC/KGZ/5/Add.2
Page47
Answer:
SIPAandtheStateCustomsInspectoratearecurrentlyconsideringtheseissues.Bordermeasures
arecurrently being drafted.
V.4(e) Criminal Procedures
Question 156.
Please describe thecriminal penalties provided bythecurrent proposed Criminal Codes for
copyrightandpatentinfringement,unauthorizeduseofatrademarkorcompanyname,commercial
espionage, anddisclosure oftrade secrets.
Answer:
Thecurrent Criminal Code oftheKyrgyz Republic contains articles providing forcriminal
penalties forillegal actions which infringe intellectual property rights, specifically, Article 137
("Violationsofcopyrightandinventionrights")andArticle158(5)("Illegalexploitationoftrademarks").
Article 137provides asfollows:
Manufacturing under one'sownname, orother misappropriation ofcopyright toanother 's
workofscience, literature, music orart,orillegal re-production anddistribution ofsuchwork,
shallbepunishable bymandatory community service foruptotwoyears, orafineofupto
sixminimum monthly wages.
Disclosure ofaninvention before registration andwithout theinventor 'spermission,
misappropriation ofauthorship, andmisappropriation ofcopyright toanother 'sutility model
shallbepunishable bymandatory community service foruptotwoyears, orafineofupto
6minimum monthly wages.
Article 158(5) provides:
Illegal useofanother 'strademark, brand orcompany name uponapplication ofadministrative
remedies shallbepunishable byafineofupto7minimum monthly wages.
Further, Article 165(2) oftheCriminal Code oftheKyrgyz Republic provides thatmisappropriation
ofinformation, software, andintegrated circuits byillegal copying orreproduction shallbepunishable
byimprisonment foruptotwoyears, orafineranging from 50to150minimum monthly wages.
ThedraftCriminal Code (atArticle 187)imposes liability fortheillegal useofatrademark,
where theuseisrepeated orcauses significant damage. Criminal sanctions consist ofpossible
imprisonment foruptosixmonths. Further, theillegal usage ofapreventive marking carries apenalty
ofpossible imprisonment foruptofourmonths.
ThedraftCode (atArticle 158(5)) alsomakes illegal useoftrademarks punishable bya
fineofupto70times theminimum monthly wage. There arealsopenalties fortheproduction
ofsubstandard goods (atArticle 152); consumer fraud (Article 158); thesaleofpoorquality goods
(Article 159); theviolation ofcopyright orinventor 'srights (Article 150); intentional falseadvertising
(Article 181); illegal receipt ofcommercial orbanking secrets (Article 182); commercial graft(Article
184); andillegal acquisition ofcomputer information (Article 202).WT/ACC/KGZ/5/Add.2
Page48
VI. TRADE-RELATED SERVICES REGIME
VI.3 Market Access andNational Treatment
VI.3(f) Limitations ontheparticipation offoreign capital
Question 157.
Dotheforeign capital ownership limitations oftheprovision ofairtransportation services for
passengers orgoods, asprovided byArticle 113oftheAirCode of15April 1994, apply tothe
legal entities offering computerized reservation system services?
Answer:
No.
VI.3(g) Measures providing forlessthanthetreatment accorded tonational services orservice
suppliers.
Question 158.
Thecapital requirement forKyrgyz Republic legal entities offering banking services istwice as
large forentities withatleast20percent foreign ownership thanitisforentities which haveless
than20percent foreign ownership. What isthereason forthisdifferent capital requirement?
Answer:
TheNational BankoftheKyrgyz Republic hascalculated theoptimal amount oftheminimum
charter capital forcommercial banks operating ontheterritory oftheKyrgyz Republic. Thelower
minimum fundrequirement forbanks thatarepredominantly locally owned wasmade necessary by
theneedtodevelop adomestic network offinancial institutions andadomestic financial market capable
ofmaximizing theattraction ofthefreemonetary resources ofKyrgyz legalentities andnatural persons.
Question 159.
Thebilateral investment treaty (BIT) between theUnited States andtheKyrgyz Republic does
notallow restrictions tonational treatment, suchasthose listed under paragraphs VI.3.(f) and
(g),specifically pertaining toairtransportation, banking andprofessional services, tobeplaced
onU.S.investors. TheKyrgyz Republic didnotcarve outanysectors from national treatment
under theBIT. How doestheKyrgyz Republic viewcommitments under theBITinrelation to
thestatements made inthese paragraphs ofitsMemorandum?
Answer:
TheKyrgyz Republic willhonour thecommitment totheUnited States, asprovided inthe
BIT,tonottoapply therestrictions discussed inpartsVI.3(f) and(g)ofthememorandum toUSservice
suppliers.WT/ACC/KGZ/5/Add.2
Page49
VI.4 Most Favoured Nation Treatment
Question 160.
TheKyrgyz Republic includes telecommunications services among the"natural monopolies"
discussed inparagraph I.2.(e) oftheMemorandum (oncompetition policy). Competition policy
officials andregulators intheUnited States havefound thattechnological advancement facilitates
thefostering ofcompetition even inindustries thatpreviously hadbeen considered natural
monopolies, suchastheprovision oftelecommunications services. Competition wasaccomplished
byallowingseparationoftheprovisionoftheinfrastructure(e.g.,thetelecommunicationsnetwork),
which remains aregulated monopoly, from theprovision ofservices overthatnetwork (e.g.,
competition among firstlong-distance andthenlocal phone service providers). Thishasledto
significant improvements intheefficiency ofservices provided aswellaslower coststoconsumers.
Hasanythought been given toasimilar policy fortelecommunication services intheKyrgyz
Republic?
Answer:
Yes.However,underthetermsofaWorldBankloan,themonopolypositionofKyrgyztelecom
onlongdistance andinternational telecommunications hasbeenguaranteed untiltheyear2008. Even
ifKyrgyztelecom isprivatized prior tothattime, itsmonopoly position willstillremain intact until
2008. Therefore, theliberalization ofthetelecommunication market cannot trulytakeplace prior to
2008.
Question 161.
DoestheRepublicofKyrgyzintendtoprivatizethestate-ownedtelephonecompaniesKyrgyztelecom
orKyrgyzpost?
Answer:
TheKyrgyz Republic isnowdeveloping theconcept ofprivatizing Kyrgyztelecom.
VI.5 Description oftheMarket andtheMechanism forRegulating theMost Prominent Service
Sectors
VI.5(f) Transport services
Question 162.
CouldtheKyrgyzRepublicpleaseoutlineitscurrentregimeinairservices,withparticularemphasis
ontheroleofforeign airservice suppliers andthedegree ofmarket access thatexists forthem?
Answer:
Thecurrent regime inaairservices isoutlined intheMemorandum atpage62.Inaddition
itshould benoted thatthePresident hasissued adecree ordering theprivatization ofKyrgyzstan Aba
Zholduru (Kyrgyzstan Airlines). Amore detailed description ofthecurrent regime inairservices
andadescription ofthecurrent market willbeincluded inthesubstantial initial offeronservices in
theGATS framework which willbesubmitted totheWorking Party innearfuture.WT/ACC/KGZ/5/Add.2
Page50
VII. INSTITUTIONALBASEFORTRADEANDECONOMICRELATIONSWITHTHIRD
COUNTRIES
VII.1 Bilateral, Plurilateral andMultilateral Agreements Relating toForeign Trade inGoods
andTrade inServices
VII.1(b) Plurilateral agreements relating toforeign trade ingoods andtrade inservices
Weseekacommitment from theKyrgyz Republic thatitwilladhere totheWTO Agreement
onTrade inCivil Aircraft from thedateofaccession.
VII.2 Economic, Integration, Customs Union andFreeTrade Agreements
VII.2(b) Customs union agreements
Question 163.
What isthestatus ofParliamentary ratification ofthecustoms union agreement withRussia,
Belarus andKazakstan?
Answer:
Theagreement providing forthejoining oftheKyrgyz Republic totheCustoms Union among
Russia, Kazakstan andBelarus wassubmitted totheParliament in1996. Parliament intends toconsider
thisissueduring 1997. Atthesametime, Parliament willconsider theGovernment 'spolicy ofacceding
totheWTO.
Question 164.
Once ratified, when willthecustoms union agreement enter inforce?
Answer:
Themoment ofentry intoforce willbedefined inParliamentary resolution tobepassed if
andwhen thecustoms union agreement isratified.
Question 165.
Please identify anynon-tariff trade barriers thatwillbecreated orincreased, withrespect to
imports intotheKyrgyz Republic, from countries which arenotparties tothecustoms union
agreement.
Answer:
There areadditional import licensing requirements proposed forindustrial wastes,
pharmaceuticals, medical andveterinary equipment, chemical plant protection substances, military
uniforms anddeciphering equipment. However, these requirements willbeimposed onimports from
allcountries, including Customs Union countries.
Question 166.
CabinetofMinistersResolutionNo.56of6February1996fortheimplementationofthisagreement.
Please outline itsprovisions, inparticular withrespect tochanges itproposes tothecurrent trade
regime oftheKyrgyz Republic.
Answer:
ThisResolution would introduce certain changes tothecurrent foreign trade regime. Ifit
comes intoforce, itwould:WT/ACC/KGZ/5/Add.2
Page51
- reduce thetimewithin which anexport orimport license application mustbeacted upon by
theMinistry ofIndustry andForeign Trade to10days;
- require theestablishment ofanexport contract registration system;
- establish newlistsofitems subject toimport and/or export licensing; and
- introduce alistofgoods, theexport ofwhich isgoverned byinternational agreements.
Question 167.
Please describe theprovisions relating totheneedfortheregistration ofcontracts involving exports,
listing theproducts covered, describing theregistration process, noting thespecific criteria that
must bemettohave exports registered andthebasis forrejecting theregistration application,
identifying theMinistries involved intheadministration ofthesystem, howtheregistration
requirement isenforced, andthepenalties imposed fornon-conformance.
Answer:
Theexport contract registration requirement ofResolution No.56applies onlytocontracts
fortheexport ofcertain products. These arelisted immediately below. There isnospecific criteria
thatmustbemetinorder toregister anexport contract forthesegoods. Thisexport contract registration
systemistoservethepurposeofprovidingtheGovernmentwithinformationaboutsuchexportcontracts,
e.g.,toidentify theseller, thebuyer, thequantity, thepurchase price, etc.Thisinformation isnecessary
sothattheGovernment cancontrol themisappropriation (i.e.theft) andexport ofstrategically significant
goods. Exporters simply mustsupply acopyoftheexport contract totheMinistry ofForeign Trade
andIndustry. Although thisrequirement must befulfilled inorder toexport, theministry hasno
authority toreject theregistration; however, questionable contracts mayresult intheinitiation ofan
investigation toassure theirlegitimacy. Specific regulations governing thisprocess havenotyetbeen
developed.
Thefollowing items aresubject toexport contract registration:
Listofstrategically significant goods, contracts forwhich areregistered
Commodity Name CLFEA Code No.
Fishalive, fresh, cold, frozen,
reprocessed products ofcod,sturgeon,
salmon species, cancriod, caviar030199110, 030212000, 030270000,(only caviar)
030321000, 030322000, 030329000, 030380000,
(only caviar), 030410110, 030410130,030520000,
(only caviar) 030530300, 160411000, 160419100,
160420100, 160420300, 160430, 1605 030310000
Grain 1001-1005, 100610 1000810
Seeds ofsoy-bean andsun-flower 1201, 1206
Ethyl non-denatured alcohol 220710000
Rawmaterial fornon-ferrous andferrous
metals2603, 2604, 2606-2610
Natural gas 271111000, 271121000, 271112110, 271113900
Electric power 271600000
Mineral andchemical nitrous fertilizers,
(except ammonium, sulphate andnitrate)3102 (except 310221000, 310230900, 310240900)
Mineral orchemical potash fertilizers 3104WT/ACC/KGZ/5/Add.2
Page52
Commodity Name CLFEA Code No.
Mineral orchemical fertilizers withtwo
andthree nutrient elements, nitrogen,
phosphorus, potassium, other fertilizers3105
Casein 3501 (except 350190100)
Leather rawmaterial 4101-4107
Business timber (coniferous species) 440310100, 440310910, 440320
Coniferous saw-timber 440710100-440710500, 440710910,440710930
Oaksaw-timber andlumber 440391, 440791
Wool 5101, 5105
Cotton 5201, 5203
Linen fibber 5301
Tobacco 2401
Silk 5001-5003
Non-ferrous metals 7401-7403, 7405, 7501, 7502, 7504, 7601, 7603,
7801, 7901, 7903, 8001, 8104
Cobalt andother semi-products of
Cobalt metallurgy; cobalt andarticles,
including waste andfragments8105
Ferroalloy 7202 (except 720299)
Alumna 281820000
Ferrous andnon-ferrous waste and
fragments2818 20000,7204, 7404, 7802, 7902, 7503, 7602,
8002, 8109109,8113001,720210 900,
860719910
Sparse, Sparse ground metals, raw
material forproduction, alloy,
compound andarticles2611-2615, 2804, 2805, 282330, 282619000,
284170, 2844-2846, 7110, 8103, 8106, 8108, 8109,
8110, 8112, 8113, 280540100
Question 168.
Export registration thatisnon-automatic ordiscretionary mayconstitute aviolation ofArticle
XIoftheGATT 1994unless thesubstantive criteria applied areconsistent withWTO provisions.
WeseekassistancefromtheKyrgyzRepublicinbetterunderstandingthenatureofthisrequirement
anditssubstantive justification under WTO provisions.
Answer:
Registration isautomatic. Seeanswer above.
Question 169.
Willthetrade-weighted average tariff ratefortheKyrgyz Republic increase asaresult ofthe
implementation ofthecommon external tariff?
Answer:
Thecommon external tariff willpossibly cause changes inimport patterns thatwillaffect
theaverage-weighted tariff. Thegovernment isstudying these changes inorder topredict the
average-weighted tariff.WT/ACC/KGZ/5/Add.2
Page53
Question 170.
Please identify anygoods, including HStariff number, thattheRepublic ofKyrgyz intends to
exclude from thecommon external tariff.
Answer:
Alistofexclusions hasnotbeendeveloped. Annex 10provides asummary ofthenewtariff
schedule.
VII.2(c) Freetrade areaagreements
Question 171.
IstheCISFreeTrade Area Agreement currently ineffect intheKyrgyz Republic?
Answer:
Yes.
Question 172.
Does theKyrgyz Republic presently provide duty freeentry forimports ofproducts from the
Azerbaijan Republic, Turkmenistan, Republic ofBelarus, Republic ofGeorgia orRepublic of
Tajikistan?
Answer:
Yes,except products from Georgia.
Question 173.
What isthestatus ofthenegotiation oftheCISFreeTrade Area Agreement protocol, which will
specify thegoods excluded from thefreetrade regime?
Answer:
Theprotocol hasnotbeendrafted anditisnotcurrently being negotiated.
Question 174.
Please identify, including HStariff number, those products thattheKyrgyz Republic willexclude
from theCISfreetrade regime.
Answer:
Such alisthasnotbeendeveloped yet.
Question 175.
Please identify theproducts, including tariff numbers, thattheKyrgyz Republic excludes from
coverage under itsbilateral freetrade agreements withArmenia, Kazakstan, Moldova, theRussian
Federation andUkraine.
Answer:
Armenia: Noproducts havebeenwithdrawn from thefreetrade regime.
Kazakstan: According totheProtocol totheAgreement withKazakstan, Kazakstan haswithdrawn
several categories ofgoods; (i)goods, theexport ofwhich issubject tocontract
registration inKazakstan; (ii)goods requiring anexport orimport license under the
lawofKazakstan; and(iii)goods identified asstrategically important under thelawWT/ACC/KGZ/5/Add.2
Page54
ofKazakstan. TheKyrgyz Republic haswithdrawn onlyexports thataresubject to
anexport tariff, export license orexport quota under thelawoftheKyrgyz Republic.
Currently, there arenoexport quotas ortariffs intheKyrgyz Republic. Therefore,
onlygoods requiring anexport license havebeenwithdrawn. These goods arelisted
inCabinet ofMinisters Resolution No.408. Asummary ofthislistisattached as
Annex D.Goods fallen under theeffect oftheKyrgyz legislation onexport tariff,
andlegislation onlicensing andquoting ofexportation ofgoods (works, services) which
isinforce atthemoment ofgoods customs clearance when thegoods areexported
from theKyrgyz Republic totheRepublic ofKazakstan.
Moldova: Noproducts havebeenwithdrawn from thefreetrade regime.
Ukraine: Noproducts havebeenwithdrawn from thefreetrade regime.
Russia: According totheProtocol totheAgreement withRussia, Russia haswithdrawn goods
subject toanexport tariff, export quota orexport licensing requirement under thelaw
oftheRussian Federation. TheKyrgyz Republic haswithdrawn onlyexports thatare
subject toanexport tariff orexport licensing requirement. Currently, there areno
export tariffs intheKyrgyz Republic. Therefore, onlygoods requiring anexport license
have beenwithdrawn. These goods arelisted inCabinet ofMinisters Resolution
No.408. Asummary ofthislistisattached asAnnex D.
Question 176.
Please identify theproducts, ifany,including tariff numbers, thattheKyrgyz Republic excludes
from freetrade coverage, which areimported from countries which areparties totheCISFree
Trade Area Agreement, butwithwhom theKyrgyz Republic doesnothaveabilateral freetrade
agreement.
Answer:
TheCISFreeTrade Agreement isineffect; however, Kyrgyzstan hasnotwithdrawn any
goods from itscoverage.