RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/KAZ/37/Add.3
30 April 2003
(03-2314)
Working Party on the
Accession of KazakhstanOriginal:  English
ACCESSION OF KAZAKHSTAN
Additional Questions and Replies
Addendum
The Ministry of the Economy and Trade of the Republic of Kazakhstan has submitted the
following replies to the additional questions submitted by Members.  The replies are reproduced
hereunder.
_______________WT/ACC/KAZ/37/Add.3
Page i
TABLE OF CONTENTS
II. ECONOMY, ECONOMIC POLI CIES AND FORE IGN T RADE ......................................1
2. Economic Policies............................................................................................................ ..........1
(a) Main directions of the ongoing economic policies..................................................................1
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES ...........................................4
IV. POLICIES AFFECTING TRADE IN GOODS .....................................................................6
1. Import Regulation............................................................................................................ .........6
(a) Registration requirements fo r engaging in importing...........................................................6
(d) Other duties and charges.................................................................................................... ......8
(e) Quantitative impo rt restrictions............................................................................................ 10
(f) Import licensing procedures ................................................................................................. .12
(h) Customs valuation........................................................................................................... ........12
(i) Other custom s formal ities ................................................................................................... ...13
(j) Pre-shipment  inspect ion ..................................................................................................... ....15
(k) Application of internal taxes on imports ..............................................................................15
(l) Rules of  origin ............................................................................................................. ............19
(m) Anti-dump ing regime ......................................................................................................... ....19
(n) Countervailing duty regime .................................................................................................. .19
(o) Safeguard regime ............................................................................................................ ........19
2. Export Regulation............................................................................................................ .......20
(b) Customs tariff nomenclature, types of duties, duty rates, weighted averages of
rates.......................................................................................................................... ................20
(d) Export licensing procedures................................................................................................. ..21
(f) Export financing, subsidy and promotion policies...............................................................21
3. Internal policies affectin g foreign trade in goods.................................................................22
(a) Industrial policy, including subsidy policies.........................................................................22
(b) Technical regulations and standards ....................................................................................25
(c) Sanitary and phytosanitary measures...................................................................................30
(d) Trade-related inve stment measures ......................................................................................35
(e) State-tradi ng practices ..................................................................................................... ......38
(f) Free zones .................................................................................................................. ..............38
(g) Free economic zones ......................................................................................................... ......38
(l) Government procurement practices .....................................................................................40
4. Policies affecting foreign tr ade in agricultu ral products.....................................................43WT/ACC/KAZ/37/Add.3
Page ii
(e) Internal policies........................................................................................................... ............43
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................52
2. Substantive standards of protection......................................................................................52
(a) Copyright and related rights................................................................................................ ..52
(b) Trademarks, includi ng service marks...................................................................................55
(e) Patents..................................................................................................................... .................60
(c) Geographical indications.................................................................................................... ....62
(e) Patents..................................................................................................................... .................62
(h) Requirements on undis closed info rmation ...........................................................................66
4. Enforcement .................................................................................................................. ..........67
(d) Any special bo rder measures ................................................................................................. 67
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS
WITH THIRD COUNTRIES ................................................................................................68
ANNEX 1 ........................................................................................................................ ......................69
On the Schedule of Non-Priv atisable Stat e Property .......................................................................69
ANNEX 2 ........................................................................................................................ ......................71
ANNEX 3 ........................................................................................................................ ......................75
Draft Law of the Republic of Kazakhstan........................................................................................ .75WT/ACC/KAZ/37/Add.3
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II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic Policies
(a) Main directions of the ongoing economic policies
Question 1
We understand from the information provided that the new draft Law on Investments is
currently under consideration by Parliament.  Has it meanwhile been adopted?  If not, when
can its adoption be expected?
Answer:
The Law of the Republic of Kazakhstan on Investments was adopted and came into force in
January of 2003.
- Private sector development/Privatization
(Statement) Kazakhstan has updated some of the information previously provided on its
privatization program, and in response to our question on updated information on the
enterprises that remain unprivatized, has indicated that Decree 422 identifies objects of state
ownership not subject to privatization, or whose privatization has been delayed.
Question 2
We thank Kazakhstan for this information, a nd suggest that Decree No. 422 of July 2000 and
Government Resolution 1587 be made available to the Working Party.  If Kazakhstan would
like to provide a summary of the information contained in these regulations, we would be
pleased to received it.
We renew our request for information on approximately what portion of output and trade in
the sector s listed in WT/ACC/KAZ/22 and 30 is accounted for by state owned enterprises.
We believe that it would be useful to consolidate information provided to date on privatization,
perhaps in a single document, and for Kazakhstan to include information on its intentions in
this area in the foreseeable future.
We appreciate Kazakhstan's willingness,  noted in WT/ACC/KAZ/11, to undertake a
commitment to additional transparency as it s privatization and reform programs proceed.
Answer:
The Decree of the President of the Republic of Kazakhstan No. 422 of 28 July 2000 contains
a list of non-privatisable state property (Annex 1).
- Pricing policy
Question 3Kazakhstan states that "The state register of market subjects, holding dominating (monopoly)
position on the certain commodity market, as of  2001 covers about 700 subjects of the market".
What is meant by "market subjects"?  Does it refer to specific goods and services provided?  Is
price control applied to these 700 market subjects?WT/ACC/KAZ/37/Add.3
Page 2
We request that Kazakhstan provide a table showing the description and code of
products/services subject to price regulation.
Answer:
Under the Law of the Republic of Kazakhstan "On Competition and Restriction of
Monopolies", market subjects are natural persons and legal entities, their affiliates and representativeoffices, engaged in production, sale, and acquisition of goods (works, services).  This term does not
refer to specific goods and services provided.  The 700 market subjects previously mentioned are not
covered by the price control mechanisms.  However, in cases where they violate provisions set out in
the monopoly legislation by taking actions to restrict or eliminate competition infringing rights of
other market subjects to free competition, price regulation measures may apply to their products,
introduced by the authorized body.
Price regulation extends only to products of natural monopolies.Under the Law of the Republic of Kazakhstan "On Natural Monopolies", natural monopolies
comprise the following activities:
- transportation of oil and/or oil products along main pipe-lines;
- storage, transportation of gas or gas condensate along main and/or distribution pipe-lines,
operation of gas-distribution units and connected gas distribution pipe-lines;
- transmission and/or distribution of electricity and/or heat;
- production of heat by heating boilers using combined production methods;
- technical dispatching of release and consumption of the electric energy;
- main railroad network services;
- services of access roads, in cases where there are no other competing access roads, and
where construction of ones is technically impossible or economically impractical;
- air navigation services, services of sea- and airports;
- telecommunication services using local networks;
- services of waterworks and/or sewerage networks; and
- public mail services.
Question 4
Kazakhstan has elaborated on its previous statemen ts that price control only exist for "heat and
water" by noting that prices are regulated only on natural monopolies, and further, listing the
"subjects of natural monopoly" and stating that this are "subject to inclusion into the State
Register" for natural monopoly subjects.
It appears from the list in the response to Question 2 of WT/ACC/KAZ/7, that a great deal more
than "heat and water" prices are regulated.
Concerning "natural monopolies," can the list of "subjects of natural monopoly" be expanded,
or in this a closed list?
We renew our request for a specific list of products and services subject to price control,
including information on price controls applied at the sub-central level.
In particular, we would appreciate informatio n on energy pricing for internal consumers and
for export.  This issue has arisen in other acce ssion discussions, and we will provide detailed
questions that should help clarify this issue.  They will include, however, portions of the
question asked in WT/ACC/KAZ/37 that didn’t receive full response, i.e.:  do any industries orWT/ACC/KAZ/37/Add.3
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firms have access to electricity, natural gas, or other forms of energy at prices below those
applied to sales to other domestic firms?  To exports?  If so, please describe the differences.
We appreciate Kazakhstan's commitment on price controls related to Article III:9 and to
publish the controls in the Official Gazette, and we seek its incorporation in Kazakhstan's
accession documents. This is not, however, the only area where price controls may be relevantto WTO obligations.
Answer:
At present, price regulation mechanisms used by the Republic of Kazakhstan extend only to
products of natural monopolies.
A natural monopoly is a complex of conditions in place in the market of services (goods,
works), under which the creation of the competitive environment in order to meet existing demand for
a specific type of services (goods, works) is either impossible or economically impractical due tospecifics of production technologies and provis ion of this type of services (goods, works).
Under the Law of the Republic of Kazakhstan "On Natural Monopolies", natural monopolies
comprise the following activities:
- transportation of oil and/or oil products by main pipe-lines;
- storage, transportation of gas or gas condensate by main and/or distribution pipe-lines,
operation of gas-distribution units and connected gas distribution pipe-lines;
- transmission and/or distribution of electricity and/or heat;
- production of heat by heating boilers using combined production methods;
- technical dispatching of release and consumption of electric energy;
- main railroad network services;
- services of access roads, in cases where no other competing access roads are available,
and where construction of ones is technically impossible or economically impractical;
- air navigation services, services of sea- and airports;
- telecommunication services using local networks;
- services of waterworks and/or sewerage networks; and
- public mail services.
Natural monopolies, irrespective of the form of ownership, shall be entered into the State
Register of Natural Monopolies.  Any economic agent shall be entered into the Register if engaged in
activities classified as a natural monopoly.  The List of natural monopolies is not exhaustive and may
be expanded or reduced based on the establishment or dissolution of natural monopolies.
The State Register comprises the Republican and local sections.  The Republican section is formed
and managed by the central authorized body and contains natural monopolies, engaged in activitiesclassified as a natural monopoly, in the Republican market, i.e. in the market extending beyond the
border of one oblast. Local sections of the Register are formed and managed by regional authorized
bodies and contain natural monopolies, engaged in activities classified as a natural monopoly, in the
local markets, confined to one oblast, city, rayon, settlement, or other local zones.
Pricing procedures relating to goods, works, services supplied by natural monopolies are
regulated by the Instruction on Procedures for the Adoption and Implementation of Prices (Tariffs) on
Goods, Works, Services of Natural Monopolies, adopted by the Decree of the authorized body,
irrespective of their belonging to the Republican section or local sections of the State Register of
Natural Monopolies.  Applications for setting of tariffs of natural monopolies, included in the
Republican section of the Register, shall be examined by the central authorized body, while theWT/ACC/KAZ/37/Add.3
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consideration of applications, submitted by natural monopolies listed in the local section of the
Register, shall remain within the competence of the regional authorized bodies.
Production of electricity, natural gas, and other forms of energy belongs to the sphere of
competitive markets, where the level of prices is determined by suppliers independently.
III. FRAMEWORK FOR MAKI NG AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES
Question 5
We appreciate the information provided in th e response to Question 5 in WT/ACC/KAZ/37, but
it avoids the central issue in the question, i.e., how does the Code provide for administrative and
judicial review of any other issues covered by WTO, e.g., Customs, TRIPS, TBT, or SPS?  It
appears that such provisions exist in other laws  as well, so we will resubmit the question, in
writing, with additional clarification.
Answer:
As per the inquiry on the norms of the Code  providing for the review of cases under
administrative and court proceedings in pursuance of provisions of the WTO Agreement (e.g. TRIPS,
TBT or SFS), the Republic of Kazakhstan would like to point out that foreign and stateless
individuals, guilty of administrative offences, committed in the territory of the Republic ofKazakhstan, shall be subject to administrative punis hments stipulated by the Republic of Kazakhstan.
No distinction shall be made between them and citizens of the Republic of Kazakhstan.  Review of
cases under administrative and court proceedings in pursuance of the WTO Agreements (e.g. TRIPS,
TBT, and SPS) will be only possible following accession of the Republic of Kazakhstan to the
corresponding international treaties.
Review of non-effected decisions on administrative offence cases.
Decisions may be reviewed based on appeals or objections delivered in accordance with set
procedures:
Decisions on administrative offence cases may be contested by:
- the person accused of committing an administrative offence; and
- the aggrieved party;
- holders of power:  for natural persons – parents, adoptive parents, custodians,
guardians, and other persons effecting custodial care or guardianship; for legal
entities – its head, and any other person, defined under the law or foundation
documents as a body of the legal entity; and
- the defender (may be represented by lawyers, spouse, close relatives, and holders of
power of the accused person, as well as members of trade unions and other publicassociations for relating cases.  Foreign lawyers shall be allowed to participate in the
case as defenders if this is covered by bilateral international agreements concluded
between the Republic of Kazakhstan and a specific country, in accordance with
procedures set by the legislation).
Decisions on administrative offence cases may be appealed (contested) by filing a complaint
with the superior court or body within ten days  after the copy of the decision has been served.WT/ACC/KAZ/37/Add.3
Page 5
Complaints in respect of decisions on administrative offence cases shall be submitted to the
judge or body (official) who issued the decision to be forwarded by them accompanied with all case
records to the specific court or superior body (superior official) within three days following receipt.
Appeals and objections may also be filed fo r consideration directly with the authorized
superior court, superior body (superior official).  Procedures for the direct filing with the court ofcomplaints in respect of decisions made on administrative offence cases by the body (official) are
stipulated by the civil procedural legislation.
A complaint, objection to the decision of the judge, imposing punishment in the form of the
administrative arrest shall be forwarded to the supe rior court upon the day of receipt of the complaint,
objection.
The prosecutor shall have the right to suspend decisions on administrative punishment for a
term, required for verification of their legality; and issue written instructions to authorized officialsand bodies (excluding courts) on additional verification procedures. Based on the results, the
prosecutor may either file an objection with the corresponding body and require cancellation or
review of the decision, or cancel suspension of the decision.
An objection filed by the prosecutor, as well as a lodged complaint, shall result in suspension
of the decision until completion of examination of an objection, or complaint.
A complaint or an objection filed in respect of the administrative offence case shall be
examined within ten days after receipt.
Decisions on administrative offence cases may be cancelled or reviewed and new decisions
may be made if:
- conclusions made by the judge, body (official) on the existing factual information,
contained in the decision on the administrative offence case, are inconsistent with the
results of analysis of evidence performed in the course of the examination of a complaint;
- there is evidence of improper application of the law on administrative liabilities;
- there are significant violations of the procedural norms set out in this Code; and
- the administrative punishment, imposed by the decision, is inconsistent with the nature of
the administrative offence, person involved or the economic status of the legal entity.
Review of effected decisions on administrative offence cases and decisions on relating
complaints, and objections.
Decisions may be reviewed in cases, where the complaint, or objection has been examined by
an unauthorized judge, body (official).  Decisions made by the court or authorized public body on
administrative punishments or discontinuation of administrative offence cases may be reviewed
within one year after being effected, and may result in stricter punishments.
Objections on effected decisions may be filed only by the General Prosecutor, his deputies,
oblast prosecutors, as well as by prosecutors and their deputies of the same status.
Applications for the review of effected decisions may be filed by the person accused of
committing the administrative offence, aggrieved party, defenders, holders of power, and
representatives of the above.
Noting the intention of a member to submit a written inquiry incorporating additional
clarifications, the Republic of Kazakhstan would like to inform members of its willingness to examine
it in accordance with the set procedures.WT/ACC/KAZ/37/Add.3
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IV. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulation
(a) Registration requirements for engaging in importing
Question 6
We would appreciate a more detailed outline of the requirements and processes for business
registration for the conduct of international trade.  What does the "certification on state
registration" involve?
Answer:
The state registration of legal entities and registration for record purposes of affiliates and
representative offices is performed to:
- certify establishment, restructuring, and dissolution of a legal entity;
- record established, restructured, or dissolved legal entities in the Republic of Kazakhstan;
- manage a single state register of legal entities and a single register of affiliates and
representative offices; and
- perform distribution of the information on legal entities, their affiliates, and representative
offices (excluding information constituting an official or commercial secret) subject to
tariffs set by the monopoly agency.
The state registration of legal entities comprises: check of the conformity of their constituent
acts and other documents, submitted under registration procedures, with the legislation of the
Republic of Kazakhstan; issue of a certificate on state registration and assignment of a registration
number; and entry of the data on a legal entity in the single State Register.  The registration shall be
mandatory for all legal entities, established in the Republic of Kazakhstan, irrespective of setobjectives, types of activities, and parties involved.
Registration for record purposes of affiliates and representative offices includes verification
of consistency of submitted registration documents with the legislation of the Republic of Kazakhstan,
issue of certificates on registration for record purposes and assignment of a registration number, entry
of information on affiliates and representative offices into the register of affiliates and representativesoffices.
Based on the results of the verification of the consistency of constituent acts and other
documents of legal entities with the legislation of the Republic of Kazakhstan, a newly established
legal entity shall receive a state registration certificate issued by the authorized public body.
Affiliates and representative offices are issued certificates on registration for record purposes.
Certificates shall be issued to legal entities in a single original copy and shall serve as one of the main
documents of a legal entity.
The registration procedure shall not depend on considerations of expediency of the
establishment of a legal entity or branching, and is not aimed to enforce control over or interfere with
its economic and financial activities.  The state registration of legal entities and registration for record
purposes of affiliates and representative offices shall be performed by justice authorities.  The
registration application of a legal entity shall include:
- a standard application form and constituent acts;
- a document, certifying the location of the legal entity, its affiliate or representative office
(not applicable to small businesses); andWT/ACC/KAZ/37/Add.3
Page 7
- a slip or a document certifying payment of the state registration fee.
To register a legal entity with foreign particip ation: natural persons shall also submit to the
registration body a photocopy of the passport or any other ID of a foreign natural person and its
certified  translation into the state and Russian languages;  legal entities shall submit an extract of the
trade register, certifying that the founder is a legal entity under the legislation of the relevant foreigncountry, and its certified translation into the state and Russian languages (in pursuance of the Law of
the Republic of Kazakhstan "On Accession of the Republic of Kazakhstan to the Convention
Abolishing the Requirement of Legalization for Foreign Public Documents").
Registration of legal entities engaged in banking activities requires prior authorization of their
establishment, granted of the National Bank of the Republic of Kazakhstan.  Registration of insurance
and re-insurance organizations requires establishment authorization issued by the authorized public
body.
Legal entities, classified as "small businesses", shall be subject to reduced registration
procedures.  These legal entities may operate based on the Standard Company Rules, adopted by the
Government of the Republic of Kazakhstan.
Additionally, under the norms of the Law of  the Republic of Kazakhstan "On State
Registration of Legal Entities and Registration for Record Purposes of Affiliates and RepresentativeOffices", the state registration may be denied to legal entities in cases where they violate procedures
for the establishment of a legal entity set by th e law, or there is inconsistency between their
constituent acts and the legislation of the Republic of Kazakhstan, or the founding legal entity has tax
arrears, arrears of dues, and other mandatory payments to the budget.  Also, the state registration
(registration for record purposes) may be suspended if:
- the registration application contains an incomplete set of required documents;
- processing of submitted documents reveals their deficiency; or
- submitted constituent acts need to be assessed by an expert.
A certificate on state registration is an official document certifying that the holder has been
registered as a legal entity of the Republic of Kazakhstan.
A legal entity registered under the above procedure shall have the right to engage in
international trade.
Question 7
In WT/ACC/KAZ/37, Kazakhstan updates its informat ion on activity licensing, and we thank
them for this material.  We note reference in  the response to licensing in the areas of non-
ferrous metal scrap, alcoholic beverages, pharmaceuticals, grain trade, and customs activities;
also having to do with currency and financial services.
We cannot tell from the information given how these licenses are conferred or whether they
relate directly to the right to trade in this area.
We will be providing follow-up questions in this area.  Our objective is to understand the nature
and scope of any requirements on the right to tr ade goods in this areas, or requirements that
could restrict trade in goods indirectly.
Can Kazakhstan confirm that in order to import or export, a firm or individual must be
registered, i.e., "a certification on state registrat ion" as provided for in response to Question 6
in WT/ACC/KAZ/37?  What is a "monthly evaluation?"WT/ACC/KAZ/37/Add.3
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Are there any investment or other special re quirements for foreign firms or individuals to
engage in international trade?
Can a non-resident foreign firm or individual en gage in importation or exportation, e.g., be the
importer of record in Kazakhstan?
Answer:
Under the Law of the Republic of Kazakhstan No. 2200 of 17 April 1995 "On Licensing", the
licensing requirement in the Republic of Kazakhstan  shall extend to specific activities, as well as to
export and import of specific goods (works, services).
Conditions and requirements for the issue of li censes are identical for all parties, who meet
standards set for a specific type of a license.
Under the Statutory Order of the President of the Republic of Kazakhstan No. 2198 of
17 April 1995 "On State Registration of Legal Entities", the state registration shall extend to all legalentities, established in the Republic of Kazakhstan, irrespective of the purpose and type of activities,
and the parties involved.
Under the Law of the Republic of Kazakhstan "On Individual Entrepreneurship", natural
persons shall obtain state registration as individual  entrepreneurs.
Legal entities, established in the Republic of Kazakhstan, including those with foreign
participation, shall be subject to the state registration, as under the legislation of the Republic of
Kazakhstan, activities of legal entities are declared legal only following their registration with the
justice authorities.
To engage in commercial activities in the Republic of Kazakhstan, all foreign legal entities
shall be registered for record purposes in order to verify the legality of their establishment and
operation in accordance with the legislation of their country of origin.
To engage in commercial activities in the Republic of Kazakhstan, all natural persons shall
register with the justice authorities as individual entrepreneurs.  This requirement also extends to
foreign natural persons and is aimed to legalize their individual business operations.
To engage in international tr ade, foreign legal entities and natural persons shall not be
required to make investments in the national economy or meet any other specific requirements.
The monthly calculation index (MCI) is a fixed value, set per annum by the Law of the
Republic of Kazakhstan "On Republican Budget" and used for calculation of pensions, benefits, and
other social payments, as well as for sanctions, taxes, and other payments.  As of 1 January 2003 the
MCI has been set at KZT 872.
(d) Other duties and charges
Question 8Kazakhstan has acknowledged that it was obliged, by the date of accession to the WTO, to bring
its customs fees into conformity with Article VIII of the GATT.  What progress has been made
to achieve this?WT/ACC/KAZ/37/Add.3
Page 9
Answer:
At present, the draft Customs Code of the Republic of Kazakhstan has been developed and
submitted for consideration to the Senate of the Parliament of the Republic of Kazakhstan.  The
Customs Code has the status of the Law of the Republic of Kazakhstan, incorporating and codifying
legal norms, regulating public relations in the customs sphere.
Under the draft Customs Code of the Republic of Kazakhstan, calculation of customs charges
shall be based on the value of costs of customs clearance services, incurred by customs bodies.  The
Republic of Kazakhstan intends to introduce the minimum and maximum rates, reflecting direct and
indirect costs, while maintaining the ad valorem  rate
Direct costs include costs directly connected with customs clearance of imported goods,
namely: wages, premiums, bonus payments, and benefits for customs officers.  Indirect costs include
communal services (electricity, phone communications, heating, etc.), computer maintenance, andautomation procedures, etc.
At present, the Customs Control Agency of the Republic of Kazakhstan is working on the
calculation of rates of customs clearance fees.  Upon completion of the work (projected for the second
quarter of 2003), the proposal on the new rate of customs clearance fees will be submitted to the
Government of the Republic of Kazakhstan for consideration.
Question 9
In October 1998, we asked for a specific plan from Kazakhstan on how it plans to bring its
0.2 per cent customs fee into conformity with Ar ticle VIII, including establishment of levels of
application, a menu of fees for service, and a timetable with specific dates for implementation.
We renewed that request at the last Working Party meeting.
The response to Question 8 is reassuring, i.e., that Kazakhstan understands the needs to bring
its ad valorem  customs processing fee (0.2 per cent of customs value) into line with Article VIII
of the GATT, but no details on when or how are provided.  We would appreciate an update on
this response.
Answer:
At present, the draft Customs Code of the Republic of Kazakhstan has been developed and
submitted for consideration to the Senate of the Parliament of the Republic of Kazakhstan.  The
Customs Code has the status of the Law of the Republic of Kazakhstan, incorporating and codifying
legal norms, regulating public relations in the customs sphere.
Under the draft Customs Code of the Republic of Kazakhstan, calculation of customs charges
shall be based on the value of costs of customs clearance services, incurred by customs bodies.  The
Republic of Kazakhstan intends to introduce the minimum and maximum rates, reflecting direct andindirect costs, while maintaining the ad valorem  rate
Direct costs include costs directly connected with the customs clearance of imported goods,
namely: wages, premiums, bonus payments, and benefits for customs officers, while indirect costs
include communal services (electricity, phone communications, heating, etc.), computer maintenance,
and automation procedures, etc.
At present, the Customs Control Agency of the Republic of Kazakhstan is working on the
calculation of rates of customs clearance fees.  Upon completion of this work (projected for theWT/ACC/KAZ/37/Add.3
Page 10
second quarter of 2003), the proposal on the new rates of customs clearance fees will be submitted to
the Government of the Republic of Kazakhstan for consideration.
Question 10
We welcome Kazakhstan's intentions to brin g its customs clearance fee of 0.2 per cent
ad valorem  in line with WTO requirements by the time of accession.  Could further clarification
be provided on why Kazakhstan intends to keep the ad valorem  character or the duty.  Also, we
would appreciate further information on the co ncrete steps to be taken and the timeframe for
their implementation.
Answer:
The Republic of Kazakhstan has developed the draft Customs Code of the Republic of
Kazakhstan (hereafter – the Code), that incorporates and codifies legal norms, regulating relations in
the customs sphere.  At present, the Code is under consideration in the Parliament of the Republic ofKazakhstan.
Under the Code, customs clearance fees shall be calculated based on the cost of services
provided by customs bodies.  The Republic of Kazakhstan intends to introduce the minimum and
maximum rate, reflecting direct and indirect costs, while maintaining the ad valorem  rate.
The minimum rate reflecting direct costs shall include costs directly related to customs
clearance of imported goods, namely:  wages, premiums, bonus payments, and benefits for customs
officers. Indirect costs include all forms of costs, including communal services (electricity, phone
communications, heating, etc.), computer software, and automation procedures, etc.
Currently, the Customs Control Agency of the Republic of Kazakhstan is working on the
calculation of rates of customs clearance fees.  Upon completion of the work (planned for the secondquarter of 2003), the proposal on the new rates of customs clearance fees will be submitted to the
Parliament of the Republic of Kazakhstan for consideration.
(e) Quantitative import restrictions
Question 11
In Question 8 in WT/ACC/KAZ/37 we asked if Kazakhstan still limited alcohol imports to
20 per cent of domestic consumption and noted that this practice is a violation of Article XI of
the GATT.  Kazakhstan responded that the practice would be eliminated by the date of
accession, but no details on when or how are provided.  We would appreciate an update on this
response.
We thank Kazakhstan for the update on the list of goods subject to import licensing.  We note
that there are such requirements for importatio n of alcoholic beverages, pharmaceuticals, and
plant protection materials.  We would appreciate an update on how these licenses can beobtained, how many offices and ministries are involved, and other aspects of the process of
acquiring them.
Should these licenses be considered non-automatic?  If so, we would appreciate information on
the specific criteria required by the deciding offices and ministries.
We suggest using the import licensing questionnaire as a guide to providing the requested
information.WT/ACC/KAZ/37/Add.3
Page 11
Answer:
As previously stated, the Republic of Kazakhstan intends to remove the existing restriction on
the import of alcohol, equal to 20 per cent of the volume of domestic consumption, by the time of its
accession to the WTO.
As per the reviewed list of goods subject to import licensing, it should be noted that under the
Resolution of the Government of the Republic of Kazakhstan No. 830 of 25 July 2002 this list has
been amended to exclude drugs, medical products, medical equipment (except medical equipment
imported to the Republic of Kazakhstan as humanitarian aid).
Procedures of import and export licensing have been defined by the Rules on the Import and
Export Licensing of Goods (Works, Services) in th e Republic of Kazakhstan (the Resolution of the
Government of the Republic of Kazakhstan No. 1037 of 30 June 1997).  Under the Rules, to obtain a
license the applicant shall submit:
- a standard application form;
- a copy of the sales contract (agreement) or any other agreement on the transfer of
property concluded between parties of a foreign trade operation, as well as its original for
verification purposes;
- an contract between the importer and the consumer;
- a state registration certificate: for legal entities – a state registration certificate; for natural
persons -  a certificate of state registration as individual entrepreneurs (a patent);
- a document certifying payment of a license fee;
- a license issued by the corresponding authorized public body for specific types of
activities;
- an authorization of the Government of the Republic of Kazakhstan or the corresponding
authorized public body for specific types of goods;
- an import/export authorization (certificate), issued by the authorized public body,
responsible for implementation of the national policies on the traffic of narcotics,
psychotropic substances, and precursors; and
- a schedule of submitted documents.
Import licenses are issued by the Ministry of Industry and Trade of the Republic of
Kazakhstan upon coordination with the ministries involved, except for import licenses on ethyl
alcohol and alcoholic products (excluding beer), issued by the Ministry of Finance of the Republic of
Kazakhstan.  Licenses shall be valid for a term of no more than 12 months, subject to renewal at the
request of the applicant, to enable him to fulfill contractual obligations, for up to one calendar year.
The list of ministries and agencies involved in coordination procedures relating to the issue of licensesis included in Table E.2.1. of WT/ACC/KAZ/37.  Cr iteria underlying decisions, made be ministries
and agencies involved in the issue of licenses, depend on a specific good subject to licensing.
Question 12
We welcome Kazakhstan's intention to eliminate the current restriction on imports of alcohol to
20 per cent of domestic consumption by the time of accession to the WTO.  Please keep theWorking Party informed of any steps taken in this respect.
Answer:
The Republic of Kazakhstan confirms its intention to remove the quota on imports of ethyl
alcohol and alcohol products (excluding beer) of 20 per cent of the annual production volume in the
Republic of Kazakhstan by the time of its accession to the WTO.WT/ACC/KAZ/37/Add.3
Page 12
(f) Import licensing procedures
Question 13
We understand that the granting of import licenses is non-automatic.  Please provide
clarification on the reasons for this, in part icular as concerns products such as wine.
Answer:
The licensing system of the Republic of Kazakhstan regulates import and export of a limited
number of goods.  These include goods in respect of which licensing has been introduced to ensure
protection of human life and health, environmental protection, protection of ordre public, and for the
reasons of the national security.
Import licenses are issued by the Ministry of Industry and Trade of the Republic of
Kazakhstan upon preliminary coordination with corresponding ministries.
Licensing of imported alcoholic products has been introduced to ensure protection of human
life and health as well as to bar out low-quality products from the national markets.  Licenses on
import of ethyl alcohol and alcoholic products (excl uding beer), including wine, are issued by the
Ministry of Finance of the Republic of Kazakhstan.
The Rules for Licensing of Import of Ethyl Alcohol and Alcoholic Products (excluding  beer)
in the Republic of Kazakhstan, adopted by the Resolution of the Government of the Republic ofKazakhstan No. 1031 of 27 June 1997, specify a list of documents required to obtain a license on
import of ethyl alcohol and alcoholic products (exc luding beer).  Licenses on import of alcoholic
products (excluding beer) are issued for products, specified in the application, based on the types of
alcoholic products.
(h) Customs valuation
Question 14
Could Kazakhstan clarify how it proposes to deal with payments such as commissions and
royalties for the purposes of implementing WTO obligations on customs valuation?
Answer:
At present, the draft Customs Code of the Republic of Kazakhstan has been developed and
submitted for consideration to the Senate of the Parliament of the Republic of Kazakhstan.  The
Customs Code has the status of the Law of the Republic of Kazakhstan, incorporating and codifying
legal norms, regulating public relations in the customs sphere.
The new draft Customs Code is based on the general principles of the customs valuation set
out in Article VII of GATT and the WTO Agreem ent on Implementation of Article VII of GATT
1994.    Under customs valuation of a good, the price of the contract shall be corrected to include
costs, unless already included.  Costs shall include, inter alia, commission and brokerage, except for
the commission on bought deal.
Also, in accordance with the above document, under customs valuation of a good, the price of
the contract shall by changed by the amount of royalties, and license issue fees relating to a valuated
good, payable by a buyer directly or indirectly as one of the conditions for the sale of a good, unless
royalties and fees have been previously included in the price, whether paid or payable.WT/ACC/KAZ/37/Add.3
Page 13
Question 15
The response to Question 10 of WT/ACC/KAZ/37, concerning the status of Amendments to the
Customs Code reports on Amendments to the Customs Law, and indicates that Kazakhstan
believes it has completed implementation of WTO provisions in this area.  We have reviewed a
copy of Kazakhstan's amended Customs law, status as of 1 January 2001, provided byKazakhstan to the Working Party.
The comments on the customs valuation portions  of that law that we submitted bilaterally
indicated gaps from full implementation of the WTO Agreement.
Does Kazakhstan have additional legislation we haven't seen? Is the document provided by
Kazakhstan in WT/ACC/KAZ/21 the final text of th e Code, or have there been further changes?
Have implementing regulations been drafted that address our concerns?  If the regulations are
completed, we request that a copy be provided for Working Party review.
We appreciate the efforts Kazakhstan is making to bring its customs valuation regime into
conformity with the Agreement, and we look forward to receiving further information and
clarification that may address our questions.
Answer:
At present, the draft Customs Code of the Republic of Kazakhstan has been developed and
submitted for consideration to the Senate of the Parliament of the Republic of Kazakhstan.  The
Customs Code has the status of the Law of the Republic of Kazakhstan, incorporating and codifying
legal norms, regulating public relations in the customs sphere.
 The new draft Customs Code is based on customs valuation general principles, set out in
Article VII of GATT and the WTO Agreement on Implementation of Article VII of GATT 1994.
(i) Other customs formalities
Question 16
We are still concerned with the requirements of a "transaction passport/certificate" for traders.
It goes beyond the normal requirements of customs administration and therefore would seem to
price additional burdens on trade.  We request full details of this requirement, includingformalities and conditions for obtaining the "transaction passport/certificate" and the
relationship between the requirement of its "transaction passport/certificate" and its business
registration requirements.
We ask Kazakhstan to explain more fully how import/export certificates are used for trade
balancing purposes.
Answer:
Under the Law of the Republic of Kazakhstan No. 54-1 of 24 December 1996 "On Currency
Regulation" and the Resolution of the Board of the National Bank of the Republic of Kazakhstan
No. 343 of 5 September 2001 "On Approval of the Instruction on Organization of Import and Export
Currency Control in the Republic of Kazakhstan", a transaction passport/certificate is a document
containing information on a foreign economic operation, that allows to monitor movements of goods
and money involved in export and import operations.WT/ACC/KAZ/37/Add.3
Page 14
A transaction passport/certificate shall be drafted based on the submitted sales contract for a
sum exceeding US$5,000.  The issue of transaction passports/certificates is an automatic process and
shall be performed unconditionally within one day following submission of the contract.
The process of obtaining a transaction passport/certificate is not related to the registration of
companies with the justice authorities.  The former is issued by customs bodies for each foreign trade
operation concluded for a sum exceeding US$5,000, while the latter is a one-time measure related to
the registration of a legal entity with the justice authorities.
A transaction passport/certificate shall not be viewed as an obstacle to foreign economic
activities or "an additional burden on trade".  A transaction passport/certificate is not used to balance
trade in any way.  Each transaction passport/certificate has its unique number and includes brief
information on the contract.
Inter alia , electronic monitoring based on the created database of transaction
passports/certificates allows to reveal "fictitious" foreign economic operations, involving transfers of
the "shadow" capital to offshore zones, effected by transnational criminal groups via dummy
companies.
Question 17
We are concerned by Kazakhstan's response to Question 11 of WT/ACC/KAZ/37 addressing
the import or export "Transaction Passport".  This requirement, at a minimum, duplicates
information contained on customs documentation normally required for clearance, e.g., price
paid for the goods, the name of the purchaser, the date of delivery, etc., and constitutes an
unnecessary burden to trade.
Kazakhstan’s response, however, indicates that the passport acts as form of foreign exchange
remittance control and as, at the least, a form of automatic import licensing for statistical
purposes.  We do not have enough information on the measure to determine if it engages
obligations in Articles XI, XIV and XV  of GATT or the Import Licensing Procedures
Agreement.
We will need clarification on the information requirements associated with this measure,
whether the passport is granted automatically, and how it is used to effect "currency control by
certification" as indicated in KAZ/37.
Could Kazakhstan update us on the status of this measure?
We reserve on the WTO consistency of this instrument, pending further review.
Answer:
Under the Law of the Republic of Kazakhstan No. 54-1 of 24 December 1996 "On Currency
Regulation" and the Resolution of the Board of the National Bank of the Republic of KazakhstanNo. 343 of 5 September 2001 "On Approval of the Instruction on Organization of Import and Export
Currency Control in the Republic of Kazakhstan" a transaction passport/certificate is a document
containing information on a foreign economic operation, which allows to monitor movements of
goods and money involved in export and import operations.
A transaction passport/certificate shall be drafted based on the submitted sales contract for a
sum exceeding US$5,000.  The issue of transaction passports/certificates is an automatic process and
shall be performed unconditionally within one day following contract submission.WT/ACC/KAZ/37/Add.3
Page 15
The process of obtaining a transaction passport/certificate is not related to the registration of
companies with the bodies of justice.  The former is issued by customs bodies for each foreign trade
operation concluded for a sum exceeding US$5,000, while the latter is one-time measure related to
the registration of a legal entity with the justice authorities.
A transaction passport/certificate shall not be viewed as an obstacle to foreign economic
activities or "an additional burden on trade".  A transaction passport/certificate is not used to balance
trade in any way.  Each transaction passport/certificate has its unique number and includes brief
information on the contract.
Inter alia , electronic monitoring based on the created database of transaction
passports/certificates allows to reveal "fictitious" foreign economic operations, involving transfers of
the "shadow" capital to offshore zones effected by transnational criminal groups via dummy
companies.
(j) Pre-shipment inspection
Question 18
We would appreciate further information on the status of Kazakhstan's use of pre-shipment
inspection.  In WT/ACC/KAZ/37, Kazakhstan stated  that invited tender for services purchasing
an independent examination of customs value of imported goods and that standard documentsfor introduction of a PSI valuation system were being worked out.
If such a system was instituted, we will provide additional detailed questions, but in essence we
will want assurances that the Government of Kazakhstan will ensure that WTO provisions are
observed, that fees will be levied in conformity  with Article VIII of the GATT, and that the right
of appeal of any PSI decisions to the Government is provided for.
We will seek a specific commitment on these points in Kazakhstan's protocol.
Answer:
At present, the Republic of Kazakhstan does not use pre-shipment inspections.  However, to
trigger further improvement of customs valuation procedures applied to imported goods and
implementation in the Republic of Kazakhstan of an independent examination system, theGovernment of the Republic of Kazakhstan has adopted the Rules for Independent Examination of
Consistency of Customs Value, Quality, and Quantity of Imported Goods (the Resolution of the
Government of the Republic of Kazakhstan No. 782 of 16 July 2002).  These Rules determine
procedures of the independent examination of consistency of the customs value, quality, and quantity
of goods, imported to the Republic of Kazakhstan.
(k) Application of internal taxes on imports
Question 19In Kazakhstan's latest submissions, we are stil l unable to obtain a clear picture of whether
discrimination in excise taxation has been eliminated to achieve conformity with Articles III:2
and VIII of GATT 1994.  On one hand, Kazakhstan seems to indicate, in paragraph 1 of its
reply to Question 13 of WT/ACC/KA Z/37, that it does not exempt the imposition of indirect tax
on imported goods from any countries.  However,  in paragraph 2, it states that the Russian
Federation is exempted from VAT and excise on natural gas, oil and stable gas condensate.  We
request Kazakhstan to clarify the situation on excise tax with other CIS countries.WT/ACC/KAZ/37/Add.3
Page 16
Kazakhstan states, in paragraph 4 of its reply to question 15 of WT/ACC/KAZ/37, "stage-by-
stage process of unification of excise rate (completion is being planned by the end of 2005) is
necessary ".  What are the reform measures us ed for the harmonisation of the excise rate?
We thank Kazakhstan for the updated table on the list of excise rates on goods (Appendix 1,
WT/ACC/KAZ/37).  We seek an explanation on wh at is meant by the inclusion of column 4.
Also, to help clarify the situation on excise tax with CIS countries, we could request that
additional columns be included to show: the rate of excise that is applied to products of
Kazakhstan origin; the rates of excise that are applied to products of non-Kazakhstan origin;
and status on harmonisation.
Answer:
Under the tax legislation of the Republic of Kazakhstan, indirect taxes levied on domestic and
imported goods, comprise the VAT and the excise tax.
As per the latter, at present the Republic of Kazakhstan takes steps for a stage-by-stage
unification of excise rates levied on domestic and imported goods.
Under the Resolution of the Government of the Republic of Kazakhstan No. 1108 of
11 October 2002 "On Changes and Amendments to the Resolution of the Government of the Republic
of Kazakhstan No. 137 of 28 January 2000", the rate of the excise tax levied on vodka of theKazakhstani origin has been raised from KZT 40 to 100 per litre.
Under the Resolution of the Government of the Republic of Kazakhstan No. 1257 of
26 November 2002 "On Changes and Amendments to the Resolution of the Government of the
Republic of Kazakhstan No. 137 of 28 January 2000", the rate of the excise tax levied on beer and
tobacco goods, produced in the Republic of Kazakhstan, has been changed as follows:
- beer – from  KZT 6 to 7 per litre;
- tobacco goods with filter – from KZT 145 to 180 per 1,000 units;
- tobacco goods without filter; other goods containing tobacco – from KZT 95 to 100 per
1,000 units.
Unification of excise rates levied on domestic goods and goods imported to the Republic of
Kazakhstan will inevitably result in the reduction of the legal production volumes and increase in the
share of the "shadow" turnover.  This, in turn, will require development of the improved mechanisms
for administering excises levied on alcoholic products.  At present, the Ministry of Finance of the
Republic of Kazakhstan works on the implementation of account labels.  The completion of the
implementation procedures is projected for 1 January 2006.
Also, in January of this year the Ministry of Finance held meetings with the major producers
of alcoholic and tobacco goods on the issue of harmonization of excise rates levied on domestic goodsand goods imported to the Republic of Kazakhstan, that resulted in the decision on a stage-by-stage
harmonization of excise rates.
Noting all of the above, excises levied on domestic goods and goods imported to the Republic
of Kazakhstan shall be harmonized by 1 January 2006.
The value added tax is levied both on goods produced in and goods imported to the Republic
of Kazakhstan.  The principle of the "country of destination", used for collection of indirect taxes, is
currently applied to all countries, including member-countries of the Commonwealth of Independent
States.  However, it does not extend to oil, natural gas, and gas condensate imported from the RussianWT/ACC/KAZ/37/Add.3
Page 17
Federation.  These products are subject to VAT based on the "country of origin" principle.  The VAT
rate used in the Republic of Kazakhstan is equal to 16 per cent.
Question 20
The information given in WT/ACC/KAZ/37 on the development of Kazakhstan's tax system is
somewhat contratictory.
Please clarify if at this time there are imports from any countries where VAT and excise taxes
levied on domestic goods or other imports are not applied?  WT/ACCKAZ/37 seems to
indicated that certain imports from Russia are exempt from both VAT and excise taxation.
Please provide Kazakhstan's plans for bringing its VAT regime into full conformity with WTO.
Can the relevant part of the text of section III of the Law on Taxes be provided for Working
Party review?
We appreciate Kazakhstan's commitment to eventually harmonize its excise taxes on domestic
and imported goods by the end of 2005.  Ha s there been any progress since July 2001 on
removing the elements of discrimination against imports existing in Kazakhstan's application of
excise taxes to imports?
Could we have a description of Kazakhstan's plan for stage-by-stage process of unification.
Answer:
Under the tax legislation of the Republic of Kazakhstan, indirect taxes levied on domestic and
imported goods, comprise the value added tax (VAT) and the excise tax.
As per the latter, at present the Republic of Kazakhstan takes steps for a stage-by-stage
unification of excise rates levied on domestic and imported goods.
Under the Resolution of the Government of the Republic of Kazakhstan No. 1108 of
11 October 2002 "On Changes and Amendments to the Resolution of the Government of the Republic
of Kazakhstan No. 137 of 28 January 2000", the rate of the excise tax levied on vodka of the
Kazakhstani origin has been raised from KZT 40 to 100 per litre.
Under the Resolution of the Government of the Republic of Kazakhstan No. 1257 of
26 November 2002 "On Changes and Amendments to the Resolution of the Government of theRepublic of Kazakhstan No. 137 of 28 January 2000", the rate of the excise tax levied on beer and
tobacco goods, produced in the Republic of Kazakhstan, has been changed as follows:
- beer – from  KZT 6 to 7 per litre;
- tobacco goods with filter – from KZT 145 to 180 per 1,000 units;
- tobacco goods without filter; other goods containing tobacco – from KZT 95 to 100 per
1,000 units.
Unification of excise rates levied on domestic goods and goods imported to the Republic of
Kazakhstan will inevitably result in the reduction of legal production volumes and increase in the
share of the "shadow" turnover.  This, in turn, will require development of improved mechanisms for
administering excises levied on alcoholic products.  At present, the Ministry of Finance of the
Republic of Kazakhstan works on the implementation of account labels.  The completion of the
implementation procedures is projected for 1 January 2006.WT/ACC/KAZ/37/Add.3
Page 18
Also, in January of this year the Ministry of Finance held meetings with the major producers
of alcoholic and tobacco goods on the issue of harmonization of excise rates levied on domestic goods
and goods imported to the Republic of Kazakhstan, resulting in the decision taken on a stage-by-stage
harmonization of excise rates.
Noting all of the above, excises levied on domestic goods and goods imported to the Republic
of Kazakhstan shall be harmonized by 1 January 2006.
The value added tax is levied both on goods produced in and goods imported to the Republic
of Kazakhstan.  The principle of the "country of destination", used for collection of indirect taxes, is
currently applied to all countries, including member-countries of the Commonwealth of Independent
States, while it does not extend to oil, natural gas, and gas condensate imported from the Russian
Federation.  These products are subject to VAT based on the "country of origin" principle.  The VAT
rate used in the Republic of Kazakhstan is equal to 16 per cent.
The Tax Code was submitted to the WTO Secretariat in document WT/ACC/KAZ/36 on
3 September 2001.
Question 21
From the information provided, we understand that Kazakhstan plans to phase out the
discrimination in excise taxes in favour of do mestically produced goods by the end of 2005.  We
would expect Kazakhstan's regime to be in compliance with WTO rules at the time of accession
to the WTO.  Please keep the Working Part y informed of any steps in this direction.
Answer:
Presently, the Republic of Kazakhstan takes steps towards a stage-by-stage unification of
excises levied on domestic and imported goods.  Thus, under the Resolution of the Government of theRepublic of Kazakhstan No. 1108 of 11 October 2002 "On Changes and Amendments to the
Resolution of the Government of the Republic of  Kazakhstan No. 137 of 28 January 2000" the excise
rate levied on vodka of Kazakhstani origin has been raised from KZT 40 to 100 per 1 litre.  Moreover,
under the Resolution of the Government of the Republic of Kazakhstan No. 1257 of
26 November 2002, the excise rate levied on beer and tobacco goods with (without) filter, produced inthe Republic of Kazakhstan, has been raised from KZT 6 to 7 per 1 litre, and from KZT 145 to 180
per 1,000 units  (KZT 95 to 100 per 1,000 units), respectively.
The unification of excise rates levied on domestic goods and goods imported to the Republic
of Kazakhstan will inevitably result in the reduction of the legal production volumes and increase in
the share of the "shadow" turnover.  This, in turn, will require development of the improved
mechanisms for administering excises levied on alcoholic products.  At present, the Ministry of
Finance of the Republic of Kazakhstan works on the implementation of account labels.  Thecompletion of the implementation procedures is projected for 1 January 2006.
Also, in January of this year the Ministry of Finance held meetings with the major producers
of alcoholic and tobacco goods on the issue of harmonization of excise rates levied on domestic goods
and goods imported to the Republic of Kazakhstan, resulting in the decision on a stage-by-stage
harmonization of excise rates.
Noting all of the above, excises levied on domestic goods and goods imported to the Republic
of Kazakhstan shall be harmonized by 1 January 2006.WT/ACC/KAZ/37/Add.3
Page 19
(l) Rules of origin
Question 22
We cannot understand the response in WT/ACC/KAZ/37 on the issue of the requirements of
Article 2(h) and Annex II, paragraph 3 (d) of the WTO Agreement on Rules of Origin,
concerning the obligation for the customs authorit y to provide upon the request of an exporter,
importer or any person with a justifiable cause an assessment of the origin of the import and
outline the terms under which it will be provided.
The provisions cited by Kazakhstan in response, i.e., Articles 376-379, do not cover ROO in the
text we reviewed.  In addition, Kazakhstan states that the provisions of the ROO determined by
the CIS Council of Heads of Government in November 2000 provide for less generous coverage,
i.e., that the ROO declared would be valid for only one year, not the three required in the WTO
Agreement.
We seek an update on this issue. Kazakhs tan should ensure that these provisions-the
requirements of Article 2(h) and Annex II, paragraph 3(d), are incorporated in law prior to the
date of accession, and we seek a commitme nt to that in Kazakhstan's protocol.
Answer:
The Republic of Kazakhstan uses a single system of determination of the country of origin for
all goods, whether imported or exported, for tariff and non-tariff purposes.  The system has been
developed by the World Customs Organization and implements provisions of the Kyoto Convention.
The country of origin is determined for application of tariff and non-tariff measures of regulation of
the import of goods to and export from the customs territory of the Republic of Kazakhstan.
Imports of goods to the customs territory of the Republic of Kazakhstan shall require a
certificate of origin only for instances where:
- preferences are granted in respect of the customs tariff on goods;
- the customs body of the Republic of Kazakhstan has sufficient grounds to believe that
goods originate in a country, imports of goods from which shall be subject to non-tariff
regulation measures;
- such requirement is stipulated by the international agreements to which the Republic of
Kazakhstan is party.
The certificate of origin issued to imported goods shall be valid infinitely, while the goods
may covered by the preferential treatment if the required certificate of origin has been obtained no
later than one year after the date of customs clearance.
(m) Anti-dumping regime
(n) Countervailing duty regime(o) Safeguard regime
(Comment)
We thank Kazakhstan for provided its Antidumping and Countervailing Duty Laws in
WT/ACC/KAZ/23, and "On Measures of Protecti on of Internal Market of Goods" in
WT/ACC/KAZ/20.WT/ACC/KAZ/37/Add.3
Page 20
We owe Kazakhstan specific comments in writing.
Question 23
Has Kazakhstan taken any safeguard measures against the imports of goods and services from
any country?  If so, can you provide the details?  Does Kazakhstan already have safeguard
legislation in place?  If not, is there an intentio n to introduce such legislation and when will it be
enacted?
Answer:
Application by the Republic of Kazakhstan of safeguards is regulated by the Law of the
Republic of Kazakhstan No. 337-1 of 28 December 1998 "On Measures Applied to Imported Goods
for the Protection of the Domestic Market", whic h meets in full all requirements of the WTO
Agreement on Safeguards.
Under the above Law, the Republic of Kazakhstan applied safeguards to the import of
specific goods. At present, application of these measures has been discontinued.
2. Export Regulation
Question 24
Document WT/ACC/KAZ/37 lists state subsidies and their value but not the legislative
authority for them.  Can Kazakhstan advise of the legislative authority for each of the subsidies
listed.  If no legislation is in place, when will legislation, regulations, or guidelines be drafted?
When will Kazakhstan bring its export subsidies into conformity with the Agreement on
Subsidies and Countervailing Measures?
Answer:
Subsidies described in WT/ACC/KAZ/37 have been granted in pursuance of the Law of the
Republic of Kazakhstan "On State Support of Direct Subsidies".
The Republic of Kazakhstan is a land-locked country.  Its remoteness from the world major
commodity markets, absence of direct access to the major commercial seaports, and the vastness of its
territory, all result in a very high share of transportation costs in the products value.  This situation
calls for the implementation of support measures aimed at the reduction of transportation costsrelating to the export of Kazakhstani products.
In this connection, the Agency of the Republic of Kazakhstan for Regulation of Natural
Monopolies and Protection of Competition has developed and implemented the mechanism for setting
and cancellation of decreasing coefficients to tariffs on cargo transportation by rail transport providing
for tariff relief.
In 2002, such relief has been granted for rolled metal – US$6.1 million, coal and fuel oil –
US$0.15 million.
(b) Customs tariff nomenclature, types of duties, duty rates, weighted averages of rates
Question 25
We would ask Kazakhstan for an explanation of the reasons why it imposes export duties. In
particular, we would welcome specific comments on the need for export duties on wool.WT/ACC/KAZ/37/Add.3
Page 21
Could Kazakhstan explain how it justifies in WTO terms the exemption from export duties for
exports to EU member countries (footnote to Appendix 3 of WT/ACC/KAZ/37/Add.1 refers)?
Answer:
Export duties levied on specific goods exported outside the Customs Union member-
countries, including wool, are set in order to balance domestic demand on wool.
Exemptions from export duties on goods exported to the EU countries are stipulated in the
Agreement concluded between the Republic of Kazakhstan and the European Union on trade in
specific products of steel.  The Agreement is provisional and will be discontinued at the moment of
the WTO accession of the Republic of Kazakhstan.
(d) Export licensing procedures
Question 26
In the table in WT/ACC/KAZ/Rev.1, it is noted that export licensing is required for a number of
commercial products, e.g., rare earth metals, precious stones, pharmaceuticals, vet drugs,
medical devices, and ferrous and copper waste and scrap, aluminum, and coniferous wood and
logs.  Are these automatic licenses, or are there requirements that restrict exports?  Please
elaborate and justify these requirements.
Answer:
The licensing system of the Republic of Kazakhstan regulates import and export of a limited
range of goods.  These include goods in respect of which licensing has been introduced to ensure
protection of human life and health, environmental protection, protection of ordre public, as well as
for reasons of the national security.  The list of goods and the Procedures for Licensing of Exported
Goods (Works, Services) have been adopted by the Resolution of the Government of the Republic ofKazakhstan No. 1037 of 30 June 1997. Procedures of import and export licensing are identical.
(f) Export financing, subsidy and promotion policies
Question 27
In the reply to Question 9 of WT/ACC/KAZ/37/Add.1 Kazakhstan does not explicitly answer
the question of whether it grants or maintains any prohibited export subsidies.  CouldKazakhstan please specify the products and sectors affected, levels of subsidy, and any plans to
phase out each subsidy?
Answer:
See answer to the question under "Export Regulation" above.
Question 28
While we appreciate the information provided in the response to Question 18 in
WT/ACC/KAZ/37 on Kazakhstan's subsidies, and Kazakhstan's acknowledgement of theexistence of prohibited subsidies in previous documentation.
We don't understand, however, the precise nature of the subsidies being reported, whether
these are contingent on export or use of loca l content, or what sort of transition periodWT/ACC/KAZ/37/Add.3
Page 22
Kazakhstan is requesting to bring them into conformity with the Subsidies Agreement or
eliminate them.
In order to move our work forward, we suggest that Kazakhstan, as a matter of urgency, specify
and describe the nature of the subsidies involved,  give legal citation for them, and make specific
proposals for their elimination.
Further delay on this point undermines the credibility of Kazakhstan's statements that it wishes
to intensify work towards completion of negotiations for terms of accession.
We would also appreciate an update on any steps has Kazakhstan taken during the last three
years be   provide for the eventual elimination of these prohibited subsidies?  By what date-
certain is Kazakhstan prepared to have eliminated these programs?
(Comment)  There is no automatic recourse for acceding countries to the transitional provisions
provided for in the Uruguay Round Agreements.  In the absence of information on the precisenature of the subsidies and Kazakhstan concrete plans for their alteration or elimination, there
can be no consideration of Kazakhstan's request.
Answer:
The Republic of Kazakhstan is a land-locked country.  Its remoteness from world major
commodity markets, absence of direct access to major commercial seaports, and the vastness of itsterritory, all result in a very high share of transportation costs in the products’ value.  This situation
calls for the implementation of support measures aimed at the reduction of transportation costs
relating to export of Kazakhstani products.
In this connection, the Agency of the Republic of Kazakhstan for Regulation of Natural
Monopolies and Protection of Competition has developed and implemented the mechanism for settingand cancellation of decreasing coefficients to tariffs on cargo transportation by rail transport providing
for tariff relief.
In 2002, such relief has been granted for rolled metal products – US$6.1 million, coal and fuel
oil – US$0.15 million.
3. Internal policies affecting foreign trade in goods
(a) Industrial policy, including subsidy policies
Question 29
Document WT/ACC/KAZ/37 states that "Article 7 of the Law on State Support to Direct
Investment of 28 February 1997" allows income tax exemptions. Some of the objectives include
supporting direct investments and developing new industries in particular sectors. What are the
criteria for receiving income tax exemptions?
We would appreciate further details on Kazakhstan's industrial policy.  How is Kazakhstan
encouraging R&D?  Is Kazakhstan providing assistance to industry to restructure?  Could
Kazakhstan provide details on privatisation programs and which branches or sectors are
affected?WT/ACC/KAZ/37/Add.3
Page 23
Answer:
Under the Law of the Republic of Kazakhstan  "On State Support of Direct Investments",
benefits and preferences are granted if:
- an investment project is developed in the priority sector of the national economy;
- the investor places investments in fixed assets of a legal entity of the Republic of
Kazakhstan; and
- the investor submits a complete set of required documents, proving his financial,
technical, and organizational capacities for implementation of the investment project.
At present, the Law of the Republic of Kazakh stan "On State Support of Direct Investments"
has been overridden by the adoption of the Law of the Republic of Kazakhstan "On Investments".
The Law of the Republic of Kazakhstan No. 373-II ЗРК of 8 January 2003 "On Investments" provides
for state support of direct investments into priority sectors under contracts concluded with theauthorized body on provision of the following types of investment preferences: investment tax
preferences, exemption from customs duties, and state natural grants.
Investment tax preferences are granted for a term computed based on the amount of
investments into fixed assets, but for a term of no more than 5 years.
Investment preferences are granted if:
- investment activities of the investor are listed among the top-priority activities;
- the investor places investments in fixed assets of a legal entity of the Republic of
Kazakhstan for the purposes of establishment of new enterprises, expansion and
modernization of existing enterprises involving implementation of advanced
technologies; and
- the investor submits a complete set of required documents, proving his financial,
technical, and organizational capacities for implementation of the investment project.
At present, the Ministry of Industry and Trade together with the Ministry of Economy and
Budget Planning develops the draft Program of Industrial Development and Modernization in the
Republic of Kazakhstan for 2003-2015, one of its main objectives being the enhancement ofscientific, technical, and production potential in perspective areas of the post-industrial development
in order to gain critical competitive advantages in the future.
Question 30
We appreciate Kazakhstan's commitment that it will notify its subsidies will be notified as
require under Article 3 of the Agreement.  We would like a standard commitment on that point
incorporated in Kazakhstan’s protocol.
Please update Kazakhstan's information on such subsidies, in light of the response to
Question 10 in WT/ACC/KAZ/37/Add.1.
We believe it would move us forward if Kazakhstan would begin the process now of developing
its notifications in this area.
Answer:
The state support of industrial sectors may be granted in the form of tax benefits, soft loans,
and other preferences to priority sectors of the national economy; deferral of debts of industrial
enterprises, as well as railroad transportation benefits.WT/ACC/KAZ/37/Add.3
Page 24
The Law of the Republic of Kazakhstan "On State Support of Direct Investments" provides
for the state support of direct investments in the priority sectors of the national economy in the form
of the following benefits and preferences:  state natural grants, exemption from land and property
taxes, full or partial exemption from customs duties levied on imported equipment, raw materials, and
materials, required for implementation of the investment project.
Tax benefits shall be granted based on the volume of investments into fixed assets (fixed
capital) and the level of priority of a specific sector of the national economy.
Exemption from customs duties shall be granted in cases where the Republic of Kazakhstan
has no facilities for production of imported goods or where existing facilities allow for the production
of imported goods only in limited quantities insufficient for implementation of the investment project.
Priority economic sectors of the Republic of Kazakhstan comprise a number of enterprises of
the chemical industry, metallurgy, machinery cons truction, textile industry, production of furniture,
paper industry, construction, pharmaceutics, and medical industry.
In 2002, tax benefits and preferences have been granted to the chemical, textile, metallurgical
industries, machinery construction, etc. (See Table 1).
Also, the Development Bank of the Republic of Kazakhstan has granted soft loans for
implementation of investment projects in priority sectors of the national economy, includingmachinery construction, metallurgy, textile industry, production of leather, leather goods, and
footwear, production of electric and electronic equipment, as well as a number of soft loans
guaranteed by the State.
The Decree of the Chairman of the Agency of the Republic of Kazakhstan for Regulation of
Natural Monopolies, Protection of Competition, and Support of Small Businesses No. 24- ОД of
30 September 1999 "On Adoption of Rules for Setting and Cancellation of Decreasing Coefficients to
Tariffs on Transportation of Goods by State Regulated Railroad Transport" provides for relief for
tariffs levied on services supplied by natural monopolies.  In 2002 decreasing coefficients have been
set for tariffs levied primarily on railroad transportation of products of ferrous and non-ferrous
industries (iron ore products, coal, copper ore).
Table 1
SubsidyAmount
(US$ 000s)Legislation
Tax Benefits and Preferences, including: 9,433.8 the Law of the Republic of Kazakhstan "On
State Support of Direct Investments"
Textile industry and production of garments 1,134.2
Production of leather, leather goods, and
footwear8.9
Woodworking and manufacturing of wood
products100.5
Cellulose and paper industry;  publishing 1,092.3
Chemical industry 2,499.5
Production of rubber and plastic goods 427.0
Production of other non-metallic mineral
goods941.5
Metallurgy and production of finished
hardware66.0
Machinery and equipment production 3,001.5
Production of electric, electronic, and optical
devices4.4WT/ACC/KAZ/37/Add.3
Page 25
SubsidyAmount
(US$ 000s)Legislation
Production of transportation means and
equipment0.0
Other 158.0
Soft loans granted by the Development Bank
of the Republic of Kazakhstan16,436.0 the Law of the Republic of Kazakhstan "On
Development Bank"
Textile industry and production of leather,leather products, and footwear4,740.0
Metallurgy 4,417.0
Production of electric and electronic devices 3,762.0
Production of machinery and equipment 3,517.0
Subsidies for railroad transportation of
industrial goods14,886.7 the Degree of the Agency of the Republic of
Kazakhstan for Regulation of NaturalMonopolies, Protection of Competition, andSupport of Small Businesses "On Adoption ofRules for Setting and Cancellation of
Decreasing Coefficients to Tariffs on Cargo
Transportation by State Regulated RailroadTransport"
Coal 13,700.0
Ore 291.3
Slag 895.4
Deferred Debts 22,200.0 the Law of the Republic of Kazakhstan "On
Taxes and Other Mandatory Payments to theBudget"
Total 62,956.5
(b) Technical regulations and standards
Question 31
It is noted in WT/ACC/KAZ/27/Rev.1 that the Law "On standardization" provides for the
application of international technical regulatio ns and standards or their drafts where at the
stage of completion.  What percentage of standards presently align with international
standards?  What targets for the adoption of  international standards does Kazakhstan have?
Under the TBT Agreement (Art 2.9.2), Members are required to notify other WTO Members at
"an early point" (60 days) through the Secretaria t of proposed technica l regulations whenever a
relevant international standard does not exist or  where their content is not in accordance with
that of relevant international standards, if th e regulation may have a significant effect on
international trade.  Does the Law "On Standardisation" provide for such advancenotification?
While not required prior to accession, the early ad option of the Code of Good Practice by State
Standard would be viewed as a positive step by Members.
Answer:
At present, 25 per cent of intergovernmental and national standards used in the Republic of
Kazakhstan have been harmonized with the requirements set out in the international standards.
Article 17(4) of the Law of the Republic of Kazakhstan "On Standardization" states that "the
Inquiry Point shall be established for interactin g with international organizations and providingWT/ACC/KAZ/37/Add.3
Page 26
notifications, relevant documentation and information related to standards and certification procedures
to all interested parties".  That covers standards and certification procedures that may potentially
become technical barriers to trade.
Following adoption of the Code of Good Practice for the purposes of development, adoption,
and implementation of standards, the Republic of Kazakhstan will observe the term, stipulated in theCode (not more than 60 days) for provision of notifications, including notifications on adoption of
regulations, that may potentially become technical barriers to trade.
The Republic of Kazakhstan is willing to consider the possibilities for adoption of the Code of
Good Practice for the purposes of development, a doption, and implementation of standards as a part
of the process of its accession to the World Trade Organization.
Question 32
We appreciate the additional information provided  by Kazakhstan on its Standards regime, i.e.,
in WT/ACC/KAZ/37 and WT/ACC/KAZ/27/Rev.1 and WT/ACC/KAZ/37/Rev.1 and in the new
legislation provided in WT/ACC/KAZ/23.
We are reviewing this documentation and will provide specific comments and questions in
writing for review prior to the next Working Party meeting.  We believe that Kazakhstan has
made great efforts to comply with WTO provisio ns and to inform the Working Party of these
efforts. We owe comments on this documentation that will give our assessment of these efforts.
We note, however, that the provisions in the new legislation seem very broad and appear to
need further regulations in order to be operatio nalized.  Is this the case, i.e., that further
regulation is required or exists to fully implem ent the TBT Agreement in Kazakhstan. If so, we
would appreciate a status report on (a) the repeal of previous regulation and laws that conflictwith the new regime, and (b) the development of new regulations.
We are confused by the information provided in WT/ACC/KAZ/37/Rev.1 in response to
Question 11.  Is it established in law that "sta ndards" in Kazakhstan, as opposed to "technical
regulations" are voluntary?  Is Kazakhstan reviewing its mandatory standards to determine if
they meet WTO requirements as technical regu lations?  How much longer does Kazakhstan
expect this process to continue prior to completion?
What is the status of establishment of the enquiry point, as its operation was foreseen in
WT/ACC/KAZ/37/Rev.1 by the end of 2002?
We note Kazakhstan's response on the issue of adoption of the Code of Good Practice.  We
believe that Kazakhstan should adopt the Code in the context of its accession and to help
establish a good TBT regime.
Answer:
The current Law of the Republic of Kazakhstan "On Standardization" and a number of its
amendments contain general provisions on technical regulation. Concrete provisions on technical
regulation, including development, adoption, and publication of standards, application of international
and foreign standards; provision of information for consumers, and other provisions are contained in
the standards of the state (national) standardization system.
In the current year the Republic of Kazakhstan intends to develop and submit to the
Government of the Republic of Kazakhstan a new draft law "On Technical Regulation", incorporating
all necessary provisions on technical regulation.  This draft law will be developed as a substitute ofWT/ACC/KAZ/37/Add.3
Page 27
the Law of the Republic of Kazakhstan "On Standardization" and related standards of the state
(national) standardization system.
At present, standards used in the Republic of Kazakhstan include obligatory and
recommended requirements.
Obligatory requirements comprise requirements ensuring:
- protection of human life and health, property, and environment;
- compatibility and interchangeability; and
- rules, marking, and methods of control over  conformity with obligatory requirements.
The remaining requirements are recommended, including requirements aimed to protect
consumer qualitative characteristics of products.
The Republic of Kazakhstan takes steps for transition to the international system of technical
regulation by means of application of technical regulations and voluntary standards to be implementedunder the draft law "On Technical Regulation", which is currently at the stage of development.  At the
same time, the Republic of Kazakhstan determines the list of necessary technical regulations to be
developed, and analyzes standards in order to single out obligatory provisions and norms for their
subsequent incorporation in technical regulations. These include technical regulations on the
protection of human health and environment.  Following adoption of technical regulations, allstandards, except for those harmonized (interrelated) with the regulations, will be classified as
voluntary.  The completion of this work will require seven years.
The Information Center has been established under the state body on standardization,
metrology, and certification and is designed to provide information on standards and conformity
assessment  procedures upon receipt of well-grounded requests from interested parties.
The Republic of Kazakhstan is willing to consider the possibilities for adoption of the Code of
Good Practice for purposes of development, adopti on, and implementation of standards as a part of
the process of its accession to the WTO.
Question 33
Could Kazakhstan confirm that its new Law on Standartisation will be fully compliant with the
provisions of the TBT agreement?
Could Kazakhstan provide further clarification on the use of technical regulations and
standards.  What do the provisions of the new le gislation on standardization foresee in terms of
voluntary standards?  Could a copy of the legislation be made available to the Working Party?
Answer:
Under the Law of the Republic of Kazakhstan "On Standardization", producers of the
Republic of Kazakhstan may use directly both international standards, and national standards offoreign countries.
The Republic of Kazakhstan has the following types of regulations, specifying obligatory
requirements, classified in the TBT Agreement as technical regulations:
- regulations of the Government of the Republic of Kazakhstan;
- rules and norms set by public administration bodies, authorized to develop obligatory
requirements under the current legislation;WT/ACC/KAZ/37/Add.3
Page 28
- standards with respect to obligatory requirements specified therein.
- Obligatory requirements comprise requirements targeted at:
- protection of human life and health, property, and environment;
- compatibility and interchangeability; and
- rules, markings, and methods of enforcement of obligatory requirements.
All remaining requirements are classified as recommended and include requirements
developed to ensure consumer-oriented qualities of products.
The Republic of Kazakhstan intends to switch to the international system of technical norms
through development and implementation of technical regulations and voluntary standards, which
requires a number of amendments to the current Law on Standardization, including:
- the phrase "specifying obligatory requirements" has been removed from the definition of
a "standard" to enable subsequent transition to voluntary standards; and
- the Law has been amended to include the basic principles, set in international standards
(transparency, non-discrimination, voluntary application).
In the current year the Republic of Kazakhstan intends to develop a new draft Law of the
Republic of Kazakhstan "On Technical Regulations" to replace the Laws on Standardization and
Certification in order to ensure transition to technical regulations and voluntary standards.
Question 34
The documentation provided mentions obligatory certification of products and services. But the
producer is also said to have the right to conf irm the conformity of the products by declaration,
which probably means self-declaration.  Could this be clarified?
Answer:
The declaration of conformity shall be adopted by manufacturers-legal entities, with respect
to products under mandatory certification.
The list of products under mandatory certification which may be included in the declaration
of conformity shall be approved by the Government of the Republic of Kazakhstan.
The declaration of conformity may be made with respect to concrete products (goods) or a
group of similar products (goods), regulated by common requirements of conformity.
Manufactures may adopt the declaration of conformity based on:
- records of acceptance tests and other tests of products (goods), performed by the
manufacturer and/or qualified test centers;
- previously issued valid certificates of conf ormity of products, or records of product or
material tests;
- acts of state supervision bodies certifying fulfillment of set standards (issued if no
violations of standards have been revealed); and
- other documents, certifying in a direct or implicit manner, the conformity of products
(services) with the set standards.
The declaration of conformity, adopted by the manufacturer, shall be registered with the
certification body authorized under set procedures to act in a given sphere.WT/ACC/KAZ/37/Add.3
Page 29
Following adoption and registration with the certification body, the declaration of conformity
becomes a sufficient justification for sale of products (goods), included therein, while the declaration
of conformity shall be viewed as a form of the certificate of conformity.
Question 35
From the reading of the document WT/ACC/KAZ/37 it seems that the Committee of
Standartisation/State Standard (KazINST) concentrates in it all activities related to
standartisation, certification, testing, accreditation etc..  If this is the case, this would appear in
contradiction with international practice.  Could further clarification be provided.
Answer:
The Committee on Standardization, Metrology, and Certification of the Ministry of Industry
and Trade of the Republic of Kazakhstan (the Gosstandart) is the national body in the sphere of
standardization authorized to perform registration of normative documents on standardization,metrology, and certification, and to manage the National Standards Fund.  The Gosstandart is not
involved in the development of standards.
The Gosstandart issues accreditations to certification bodies, and test centers,  authorizing
them to perform certification activities, and pre-certification testing.  The Gosstandart includes the
Accreditation Committee as one of its subdivisions for consideration of submitted test results ofapplicants, making decisions on the issue of accr editations, and management of the Register of
Accredited Certification Bodies and Test Centers.  The Gosstandart does not provide consulting
services, research services, or any other type of services incidental to accreditations.
The Gosstandart does not conduct pre-certification testing and certification per se , these
functions being performed by accredited organizations (certification bodies, test centers) undercontracts concluded with applicants.
Question 36
Could Kazakhstan confirm that the enquiry point will be operational by the end of 2002 as
planned.  Will it be electronically acce ssible to domestic and foreign companies?
Answer:
The Republic of Kazakhstan confirms that the enquiry point on cooperation with the WTO
will start its work on 1 April 2003, and will be accessible for all interested parties electronically.
Presently, the enquiry point is equipped with all necessary hardware.  E-mails may be sent to
the following addresses:  Int_rel@memst.kz , abilkair@memst.kz .  The information on the operation
of the  enquiry point will be uploaded to  the web-site:  www.memst.kz .
The Republic of Kazakhstan is currently working on a project of a web-site designed to
contain information on the operation of the enquiry point.  For the moment, the initial stage of theproject is dedicated to preparation of the bulletin of the enquiry point on co-operation with the WTO
for e-publication on the net.WT/ACC/KAZ/37/Add.3
Page 30
(c) Sanitary and phytosanitary measures
Question 37
We thank Kazakhstan for its update of the check-list of illustrative SPS issues
(WT/ACC/KAZ/32/Rev.1) and additional answers to SPS questions contained in
WT/ACC/KAZ/37.   Kazakhstan appears to have done much work towards WTO conformity on
SPS issues in the two years since their first SPS checklist came out. In terms of substance, we
would encourage Kazakhstan to continue progress towards:
- the establishment of a formal WTO SPS enquiry point;
Answer:
In the beginning of 2002 the Ministry of Agriculture of the Republic of Kazakhstan has
opened the Information Marketing System (Centre), designed primarily to provide agricultural
producers and public administration bodies with marketing, analytical and other information, andallow access to adopted normative and legislative acts.
The project also includes the web-site www.minagri.kz , including sections on Veterinary,
Plant Protection, Farming, Animal Husbandry, etc..  These sections allow access for all interested
parties to documents relating to sanitary and phytosanitary rules.
Also, the center has been designed to answer incoming inquiries, in particular, those on
sanitary and phytosanitary measures.  Any interested party may send inquiries to strategy@minagri.kz
and the center guarantees that they will be answered.
Additionally, the project includes the analytical bulletin "AgroInform" published on a
monthly basis, that contains texts of all titles adopted in the sphere of agriculture, including
veterinary, and plant quarantine.  A special section of the bulletin is dedicated to the publication ofanswers to submitted inquiries.
- further harmonisation towards internatio nal standards through their "program on
agriculture standardisation";
Answer:
The Republic of Kazakhstan continues to implement targeted procedures aimed at the stage-
be-stage  harmonization of the national and international standards.  Presently, more than 50 per cent
of the standards of the Republic of Kazakhstan are obsolete, and require revision given the fact that,
as a general rule, the Republic of Kazakhstan uses standards developed in the USSR era.  The
2001-2006 Program on Standardization in the Agricultural Sector, developed by the Ministry of
Agriculture of the Republic of Kazakhstan, aims primarily at the further harmonization with the
international standards.
This program covers a list of standards and technical regulations that are in the frontline for
transition to the international standards, including veterinary, animal husbandry, processing of
agricultural products, and plant quarantine.
- membership of codex alimentarius and th e international plant protection convention
(IPPC).WT/ACC/KAZ/37/Add.3
Page 31
Answer:
The Republic of Kazakhstan intends to join the European and Mediterranean Plant Quarantine
Convention under the International Plant Protection Convention by the end of 2003.
The Ministry of Health of the Republic of Kazakhstan has taken active measures to initiate
negotiations with the Secretariat of the Codex Alimentarius Commission on the establishment of theenquiry point of the Codex Alimentarius Co mmission in the Republic of Kazakhstan.
Question 38
Kazakhstan continues to insist that a seven year transitional period will be necessary, post
WTO accession, to bring all of its laws into conformity with the SPS agreement.  This is not
acceptable.
Answer:
At present, the bulk of the laws on veterinary and plant quarantine is brought in line with the
SFS Agreement.  This process involves introduction of changes and amendments to the subordinate
normative legislative acts.
Among the main factors, preventing the Republic of Kazakhstan to implement all provisions
of the SFS Agreement by the time of its accession to the WTO are technical issues relating to the
necessity of modernization of the technical basis of the veterinary and quarantine centers of theRepublic of Kazakhstan and harmonization of instructions, norms, rules, and methods of laboratory
testing procedures.
In order to bring the veterinary and plant quarantine measures, used in the Republic of
Kazakhstan, with Article 3, Harmonization, Article 5, Assessment of Risk and Determination of the
Appropriate Level of Sanitary or Phytosanitary Protection, and Article 8, Control, Inspection, andApproval Procedures, as well as Annex C of the SFS Agreement, the Republic of Kazakhstan needs to
take the following steps:
- Тechnical modernization of veterinary and quarantine centers of the Republican and local
levels; staff increase; retraining and advanced training of experts to ensure quick and
reliable laboratory analysis of agricultural products;
- In general, equipment of veterinary and quarantine center is morally and physically
obsolete and requires replacement.  The current share of the installed high-performance
equipment is well below 40 per cent.  Under the 2003-2005 National Program for
Agricultural Production, in order to attain these objectives the Republican budget shall
allocate app KZT 1.4 billion or US$9.1 million at the current exchange rate.
Harmonize national veterinary and quarantine instructions, norms, rules, and laboratory
testing methods with the international standards.
Currently, out of 1,928 existing standards and technical conditions the Republic of
Kazakhstan needs to review 76 per cent of standards and 25 per cent of technical conditions.
The Ministry of Agriculture of the Republic of Kazakhstan  has adopted the 2001-2006
Program on Standardization in the Agricultural Sector, the Action Plan for the program
implementation, as well as the Schedule of Agricultural Products and Foods, that shall be transferredto international standards in the first place.  Atta inment of the above objectives and adaptation with
the international standards requires a seven year implementation period.WT/ACC/KAZ/37/Add.3
Page 32
Question 39
If any of the new legislation has not yet been provided, we urge Kazakhstan to make it available
as soon as possible.  We believe that Kazakhs tan has made great efforts to comply with WTO
provisions and to inform the Working Party of these efforts.  We owe comments on this
documentation that will give our assessment of these efforts.
Answer:
Among the main normative legislative acts of the Republic of Kazakhstan on veterinary and plant
quarantine, implementing provisions of the SFS Agreement in the Republic of Kazakhstan are:
- the Law of the Republic of Kazakhstan No. 339-II ЗРК of 10 July 2002 "On Veterinary";
- the Resolution of the Government of the Republic of Kazakhstan No. 1783 of
29 November 2000 "On Adoption of the Instruction on Quality and Safety of Food
Materials and Food Products";
- the Rules for the Issue of Veterinary Certificates by Veterinary Inspectors for Objects
under the State Veterinary Control (Decree of  the Minister of Agriculture No. 372 of
15 November 2002);
- the Law of the Republic of Kazakhstan  No. 344-I of 11 February 1999 "On Plant
Quarantine";
- the Rules on the Protection of the Republic of Kazakhstan from Quarantine Objects (the
Resolution of the Government of the Republic of Kazakhstan No. 1960 of
30 December 2000); and
- the Nomenclature of Basic Quarantinable Products Subject to Phytosanitary Control
under Plant Quarantine Procedures (Decree of the Ministry of Agriculture No. 166 of30 May 2002), etc..
All of the above titles may be found on www.minagri.kz  under sections:  "Veterinary" and
"Plant Protection".
Question 40
We note statements in WT/ACC/KAZ/32/Rev.1 that  further regulations will be necessary in
some areas in order for full SPS Agreement implementation to be realized.  If this the case, we
would appreciate a status report on (a) the repeal of previous regulations and laws that conflict
with the new regime, and (b) the development of new regulations.
Answer:
The Republic of Kazakhstan has included the information on (a) removal of earlier
regulations and laws contradicting the new regime; and (b) development of new regulations, in
Annex 2.
Question 41
We have a concern, however. In WT/ACC/KAZ/34/Rev.1, new legislation on SPS is noted.  In
KAZ/32/Rev1, no explicit indication is given of an y problems foreseen in full implementation of
the Agreement prior to WTO accession.  Yet in WT/ACC/KAZ/37,in the response to
Question 22, it states that Kazakhstan requests a seven year transition to implement itsprogram.
We seek a commitment from Kazakhstan that it will implement and enforce the WTO
Agreement on SPS from the date of accession.WT/ACC/KAZ/37/Add.3
Page 33
Answer:
At present, the bulk of the legislation of the Republic of Kazakhstan on veterinary and plant
protection has been brought in line with the SPS Agreement, while the Republic of Kazakhstan
continues to introduce changes and amendments to subordinate normative legislative acts.
Among the main factors, preventing the Republic of Kazakhstan to implement all provisions
of the SPS Agreement by the time of its accession to the WTO are technical issues relating to the
necessity of modernization of the technical basis of the veterinary and quarantine centers of the
Republic of Kazakhstan and harmonization of instructions, norms, rules, and methods of laboratory
testing procedures.
In order to bring the veterinary and plant quarantine measures, used in the Republic of
Kazakhstan, in line with Article 3, Harmonization, Article 5, Assessment of Risk and Determination
of the Appropriate Level of Sanitary or Phytosanitary Protection, and Article 8, Control, Inspection,and Approval Procedures, as well as Annex C of the SPS Agreement, the Republic of Kazakhstan
needs to take the following steps:
- Technical modernization of veterinary and quarantine centers of the Republican and local
levels; staff increase; retraining and advanced training of experts to ensure quick and
reliable laboratory analysis of agricultural products.  In general, the equipment ofveterinary and quarantine center is morally and physically obsolete and requires
replacement. The current share of the installed high-performance equipment is well below
40 per cent. Under the 2003-2005 National Program for Agricultural Production, in order
to attain these objectives the Republican budget shall allocate approximately KZT 1.4
billion or US$9.1 million at the current exchange rate; and
- Harmonize national veterinary and quarantine instructions, norms, rules, and laboratory
testing methods with international standards.  Currently, out of 1,928 existing standards
and technical conditions the Republic of Kazakhstan needs to review 76 per cent of
standards and 25 per cent of technical conditions.
The Ministry of Agriculture of the Republic of Kazakhstan has adopted the 2001-2006
Program on the Standardization in the Agricultural Sector, the Action Plan for the program
implementation, as well as the Schedule of Agricultural Products and Foods, that shall be transferred
to international standards in the first place.
Attainment of the above objectives and adaptation of international standards requires a
seven year implementation period.
The Republic of Kazakhstan is aware of all difficulties and the entire scope of measures
required for its accession to the WTO and harmonization with international standards to ensure equalrights for participation in the international trade and hopes to find understanding and assistance on the
part of the WTO member-countries.
Question 42
Does specific legislation governing the import  of wood, or wood-based products, exist in
Kazakhstan.  If yes, could a copy be provided to the Working Party.
Answer:
The Legislation of the Republic of Kazakhstan does not include specific laws, regulating
imports of wood and wood products.WT/ACC/KAZ/37/Add.3
Page 34
Imports of wood and wood product is regulated by the same legislative acts that cover other
forms of imports, namely:
- the Resolution of the Government of the Republic of Kazakhstan No. 1389 of
14 November 1996 "On Customs Duties Levied on Imported Goods" stipulates the values
of import customs duties levied on all goods, including wood and wood products; and
- the Law of the Republic of Kazakhstan "On Plant Quarantine" No. 344-I of
11 February 1999 and the Resolution of the Government of the Republic of Kazakhstan
No. 1960 of 30 December 2000 "On Adoption of Procedures for the Protection of the
Republic of Kazakhstan from Quarantine Objects and the List of Quarantine Objects"
contain phytosanitary requirements as well as rules applied to imports of quarantinable
products.
Question 43
Please inform the Working Party when the enquiry point for SPS will be operational.
Answer:
In 2002 the Ministry of Agriculture of the Republic of Kazakhstan has established the
Marketing Information System (Center), designed, inter alia , to provide agricultural producers and
public administration bodies with marketing, analytical, and other data, as well as to give access toadopted normative and legislative acts.
Apart from the above, there is a web-site www.minagri.kz  operating as a component in the
structure of the enquiry point, with Veterinary, Pl ant Protection, Farming, Husbandry, etc. among its
sections.  These sections give access for all interested parties to documents on sanitary and
phytosanitary rules.
Also, the enquiry point has been established to provide answers to the questions on sanitary
and phytosanitary measures.  Any interested party may receive necessary clarifications by sending a
request to the following e-mail address: strategy@minagri.kz .
In addition, the enquiry point publishes a monthl y bulletin: Agro-Inform containing the texts
of all adopted legislative acts on agriculture, including issues on veterinary, and plant quarantine.Besides, it has a special section dedicated to public ation of answers to the questions, sent by readers.
Question 44
From the information provided, we understand Kazakhstan to be seeking a transitional period
of up to seven years after accession to the WTO for full implementation of the SPS Agreement.
We would expect Kazakhstan to fully apply the SPS Agreement from the time of accession to
the WTO.
Answer:
At present, the Republic of Kazakhstan has brought the Laws of the Republic of Kazakhstan
"On Veterinary" and "On Plant Quarantine" in line with the SFS Agreement, and is in the process of
introducing changes and amendments to subordinate legislative acts.
The duration of the implementation period is dictated by the need to bring a number of
measures in the sphere of veterinary and plant quarantine in line with Articles 5 and 8 Annex C of theSFS Agreement, which requires the following steps:WT/ACC/KAZ/37/Add.3
Page 35
- Technical modernization of veterinary and quarantine centers of the Republican and local
levels, advanced training of employees to ensure quick and reliable analysis of
agricultural products.  In the vast majority of cases, the equipment of centers is physically
and morally obsolete, and needs replacement.  The share of modern high-performance
devices installed remains below 40 per cent. In accordance with the 2003-2005 NationalProgram for Agricultural Production, the share of the Republican budget allocated for this
purpose will be approximately KZT 1.4 billion or US$9.1 million at the current exchange
rate; and
- Harmonization of Internal and Quarantine Regulations, Norms, Rules, and Methods of
Tests with International Standards.  At present, 76 per cent of standards and 25 per cent of
technical regulations out of 1928 standards and technical regulations currently in place
need to be updated.
In this connection, the Ministry of Agriculture of the Republic of Kazakhstan has adopted the
2001-2006 Program on Standardization in the Agricultural  Sector, along with the List of Agricultural
Products and Food Articles, subject to transition to international standards in the first place.
According to the above Program, the overall project cost of harmonization in the sphere of
veterinary, processing of agricultural products, animal husbandry, crop cultivation, and plantquarantine comprises KZT 75,200 or approximately US$485,000.
Attainment of set objectives and adaptation of production facilities to standards set in the SPS
Agreement will require a term of no less than seven years.  Based on the above, and in accordance
with the provisions of the SPS Agreement, the Republic of Kazakhstan would like to call for a seven
year implementation period.  The Republic of Kazakhstan is prepared to submit detailed action plan.
(d) Trade-related investment measures
Question 45
What sectors of industry are currently affected by TRIMs and what are the measures in place
for each sector and product?
Document WT/ACC/KAZ/37 states that "in 1998, Kazakhstan will amend the Law on Oil and
the Law on Subsurface Utilisation to bring them into conformity with GATT Articles III and XI
by eliminating from these two laws preferences to Kazakhstan products and equipment".  Has
this been legislated?  If not, when will this be legislated?  Is the legislation and economic
practice harmonised with WTO rules on TRIMs?
While Kazakhstan requests a ten year transition  period for its TRIMs, how does Kazakhstan
justify such an exemption when TRIMs are prohib ited by the WTO?  (replies to Question 13 of
WT/ACC/KAZ/37/Add.1 and questio n 23 of WT/ACC/KAZ/37 refer).
Answer:
Industry is one of the most important sectors of the national economy of the Republic of
Kazakhstan, its sustainable development being a pre-requisite for the economic growth.
The structure of industrial production is dominated by extraction and processing of
hydrocarbon and mineral products.  This is a sensitive sector of high priority, providing for the bulk ofreceipts to the Republican budget.WT/ACC/KAZ/37/Add.3
Page 36
The above sectors are viewed as the most attractive by foreign investors.  The preliminary
forecasts show that the volume of foreign investments to these sectors will increase in the next few
years by several dozens of billions of dollars.
In this connection, and in order to ensure rational restructuring of the subsurface use,
constituting non-renewable national wealth, the Republic of Kazakhstan has introduced new
provisions in its legislation regulating relations in these sectors with the view to achieve sustainable
development of the country through diversification of sectors of the national economy, alienation
from primary products-oriented way of development, stimulation of domestic producers to
manufacture products with a high added value, meeting world standards of quality, and competitive
on both domestic and foreign markets.
Measures introduced to these Laws are non-discriminating and cannot grant preferential
treatment to domestic products (goods, services), as they require "obligatory conformity withstandards and other requirements" and stipulate "organization of bidding within the Republic of
Kazakhstan in accordance with procedures, set by the Government of the Republic of Kazakhstan".
Requirements set for bidding held in the Republic of Kazakhstan are non-discriminating with
respect to foreign participants.  Thus, the monitoring of fulfilment of concluded contracts on
operations relating to subsurface use and oil operations, conducted by the authorized public body toensure conformity with the national legislation, has showed that the bidding selection usually results
in the use of goods, produced by foreign company, given the low competitive power of Kazakhstani
products and violations of international quality standards (ISO, API).
As per additional adopted regulations (June 2002), ensuring practical implementation of contractors’
obligation, the Republic of Kazakhstan would like to point out that it takes steps to  improve certainprovisions of these regulations, that codify implementation of measures running counter to the
provisions, set out in the TRIMS Agreement.
However, noting the actual conditions in place in the national industrial sectors, the plans of
the Government of the Republic of Kazakhstan aimed at the establishment of competitive enterprises
in the light and food industry; creation of the fu nctional mechanism for the innovation development of
the real sector of the national economy; introduction of scientific achievements into the production
process, creation of high-tech production facilities, all require a certain period of time necessary to
view the outcome of attainment of set objectives and ensuring conformity with the provisions of the
TRIMS Agreement on "adopted regulations".
The Republic of Kazakhstan is prepared to submit detailed information on the 2003-2015
National Program on Industrial Development and Innovations in the Republic of Kazakhstan.
Question 46
In the last two working party meetings, we ra ised the issue of TRIMS-inconsistent measures
(i.e., the preference for the use of local inputs in foreign investment activities) in the Law on
Petroleum and the Law "On Subsurface Utilization".  In response to Question 54 of
WT/ACC/KAZ/11, Kazakhstan stated that, "In 19 98, Kazakhstan will amend the Law on Oil
and the Law 'On Subsurface Utilization' to bring them into conformity with GATT Articles IIIand XI by eliminating from these two laws preferences to Kazakhstan products and
equipment".
In the response to Question 23 in WT/ACC/KAZ/37, however, Kazakhstan, in effect and
indirectly, indicates that no such elimination has taken place, and seeks a ten year transition
period to withdraw the measures.WT/ACC/KAZ/37/Add.3
Page 37
In addition, in June of this year, regulation s were enacted to ensure that WTO-inconsistent
measures requiring the use of local goods and services in 1999 legislation on Oil and Mining
Company Procurement were fully implemented.  My government has noted, both in 1999 when
the law was passed, and more recently, that thes e provisions violate our Bilateral Investment
Treaty as well as WTO obligations.  As Treaties and international agreements are supposed tosupercede domestic law, we are most concerned that Kazakhstan has proceeded to implement
these measures through regulation.
We do not favor a transition for these measures. Indeed, we seek a commitment from
Kazakhstan that it will have eliminated all such  TRIMS violations by the date of accession.
But if Kazakhstan seeks such flexibility, it will need to provide precise information along the
lines provided for in the TRIMS agreement, i.e ., detailed information on the nature of the
measures and Kazakhstan's concrete plans for their alteration or elimination.
Answer:
Industry is one of the most important sectors of the national economy of the Republic of
Kazakhstan, its sustainable development being a pre-requisite for the economic growth.
The structure of industrial production is dominated by extraction and processing of
hydrocarbon and mineral products.  This is a sensitive sector of high priority, providing for the bulk ofreceipts to the Republican budget.
The above sectors are viewed as the most attractive by foreign investors.  The preliminary
forecasts show that the volume of foreign investments to these sectors will increase in the next few
years by several dozens of billions of dollars.
In this connection, and in order to ensure rational restructuring of the subsurface use,
constituting non-renewable national wealth, the Republic of Kazakhstan has introduced new
provisions in its legislation regulating relations in these sectors with the view to achieve sustainable
development of the country through diversification of sectors of the national economy, alienation
from primary products-oriented way of development, stimulation of domestic producers to
manufacture products with a high added value, meeting world standards of quality, and competitiveon both domestic and foreign markets.
Measures introduced to these Laws are non-discriminating and cannot grant preferential
treatment to domestic products (goods, services), as they require "obligatory conformity with
standards and other requirements" and stipulate "organization of bidding within the Republic of
Kazakhstan in accordance with procedures, set by the Government of the Republic of Kazakhstan".
Requirements set for bidding held in the Republic of Kazakhstan are non-discriminating with
respect to foreign participants. Thus, the monitoring of fulfilment of concluded contracts onoperations relating to subsurface use and oil operations, conducted by the authorized public body to
ensure conformity with the national legislation, ha s showed that the bidding selection usually results
in the use of goods, produced by foreign company, given the low competitive power of Kazakhstani
products and violations of international quality standards (ISO, API).
As per additional adopted regulations (June 2002), ensuring practical implementation of
contractors’ obligation, the Republic of Kazakhstan would like to point out that it takes steps to
improve certain provisions of these regulations, that codify implementation of measures running
counter to the provisions, set out in the TRIMS Agreement.WT/ACC/KAZ/37/Add.3
Page 38
However, noting the actual conditions in place in the national industrial sectors, the plans of
the Government of the Republic of Kazakhstan aimed at the establishment of competitive enterprises
in the light and food industry; creation of the fu nctional mechanism for the innovation development of
the real  sector of the national economy; introduction of scientific achievements into the production
process, creation of high-tech production facilities, all require a certain period of time necessary toview the outcome of attainment of set objectives and ensuring conformity with the provisions of the
TRIMS Agreement on "adopted regulations".
The Republic of Kazakhstan is prepared to submit detailed information on the 2003-2015
National Program on Industrial Development and Innovations in the Republic of Kazakhstan.
(Comment)  The information provided that Kazakhs tan intends to request a transition period of
ten years for the elimination of WTO-inconsistent measures included in the national Laws on
Oil and On mineral wealth and use of mineral wealth.  We expect Kazakhstan to be fullycompliant with all aspects of the TRIMS agreement at the time of its accession to the WTO.
(e) State-trading practices
Question 47
We suggest that Kazakhstan review its statement th at it has no state trading enterprises in light
of the information provided on natural monopolies and in terms of recent developments tocreate a dominant State enterprise in the petroleum sector.
Answer:
The Republic of Kazakhstan does not have enterprises covered by Article XVII of GATT.  The
Government of the Republic of Kazakhstan has never granted any private or public enterprise,
including marketing agencies, exclusive or special rights or benefits, including charter orconstitutional powers, that could be used, through purchase or sale, to influence the level or direction
of import and export operations.  Both private and public commercial enterprises operate in the same
(non-discriminating) competitive market environment.  There are no enterprises whether public of
private to own special trade or distribution rights.
(f) Free zones
(g) Free economic zones
Question 48
Document WT/ACC/KAZ/37 notes that "Tax pref erences are provided with regard to value
added tax on turnover".  Does this suggest that Kazakhstan imposes export or performance
targets in return for "free zone" benefits?
Are any of the payments, tax breaks and incentive s to entities in free zones dependent on use of
local content or exports?
Answer:
The Republic of Kazakhstan does not impose export or performance targets in return for "free
zone" benefits.
Tax benefits and preferences granted to organizations in free economic zones do not depend
on local usage, or use of products of foreign origin.WT/ACC/KAZ/37/Add.3
Page 39
Question 49
Please update information on the existence and operation of free trade and free economic zones,
e.g., including the Astana City special economic zone described in the response to Question 25 of
WT/ACC/KAZ/37.  Are there any ex port performance or local content requirements associated
with establishment in the zone?  Does Kazakhstan apply taxes and tariffs to output from thezone sold in Kazakhstan, rather than exported?
Answer:
At present, the Republic of Kazakhstan hosts only two special economic zones, namely the
"Astana – New City", and the "Aqtau Seaport".
Issues on establishment, legal regulation, and operation of special economic zones are
covered by the Statutory Order of the President of the Republic of Kazakhstan  "On Special Economic
Zones in the Republic of Kazakhstan", the Laws of the Republic of Kazakhstan "On Taxes and Other
Mandatory Payments to the Budget", "On Customs in the Republic of Kazakhstan", banking
regulations and other legislative acts of the Republic of Kazakhstan.
The special economic zone (SEZ) "Astana - New City" has been established by the Decree of
the President of the Republic of Kazakhstan No .645 of 29 June 2001 for a period between
1 January 2002 and 2007.
The Law of the Republic of Kazakhstan of 5 July 2001 "On Changes and Amendments to
Legislative Acts of the Republic of Kazakhstan on the Special Economic Zone 'Astana – New City'
Including Changes and Amendments to the Laws of  the Republic of Kazakhstan 'On Taxes and Other
Mandatory Payments to the Budget' and 'On Customs in the Republic of Kazakhstan'" provides for tax
and customs benefits for construction of infrastructural assets, administrative and residential sectors inthe territory of the established SEZ.
Tax benefits shall be granted for:
- VAT levied on the turnover of goods (works, se rvices) sold in the territory of the SEZ if
consumed in full in the process of construction and putting infrastructural assets,
administrative and residential sectors into service (hereafter – objects);
- land tax levied on land lots located in the territory of the SEZ used as construction sites or
containing buildings constructed within the term of operation of the SEZ; and
- property tax, levied on objects constructed within the term of operation of the SEZ.
Customs benefits in respect of customs duties and VAT shall be granted for the imports
of: machinery and equipment, required for construction works; goods and equipments,
required for construction works and for putting constructed objects into service in
accordance with project records and cost estimates.
It should be noted, that with respect to zones whether currently existing or to be established in
the future, the legislation of the Republic of Kazakhstan sets no restrictions on access for foreign
parties, except for the restriction on the place of registration of parties – recipients of benefits, which
is a generally recognized standard used in the majority of free economic zones all over the world.  In
particular, as per the SEZ "Astana – New City", customs and tax benefits for VAT shall extend tolegal entities of the Republic of Kazakhstan, and non-residents of the Republic of Kazakhstan
engaged in business activities without establishment of a legal entity, and residing permanently in the
city of Astana.WT/ACC/KAZ/37/Add.3
Page 40
The special economic zone "Aqtau Seaport" has been created by the Decree of the President
of the Republic of Kazakhstan No. 853 of 26 April 2002 for a term between 1 January 2003 and
1 January 2007.
It is located in the territory of a seaport within boundaries of the city of Aqtau.  The SEZ
Aqtau Seaport is a free customs zone and has been established for the invigoration of the developmentof the region, establishment of efficient export-oriented enterprises, assimilation of new products,
attraction of investments, and implementation of modern methods of  economic management.
There are no requirements on export or use of local resources as pre-conditions for operation
in the SEZ.
Taxation in the SEZ Aqtau Seaport is effected under the current tax legislation and does not
provide for additional tax benefits.
(l) Government procurement practices
Question 50
Are the purchases listed in the response to Question 15 of WT/ACC/KAZ/3/Rev.1 for the
government’s own consumption, or are some of these purchases used by state owned firms in
the manufacturing process?
We note Kazakhstan's commitment in previous Working Party meetings to consider
membership in the WTO Agreement on Governme nt Procurement in the context of accession,
and to make alternations in its laws to meet its provisions.
We would appreciate updated information on Kazakhstan's efforts in this direction and a clear
indication that Kazakhstan will initiated negot iations to accede to the GPA within a clear
timeframe after accession.
Answer:
The legislation of the Republic of Kazakhstan regulating state procurement comprises the
Law of the Republic of Kazakhstan "On State Procurement" No. 321-II ЗРК of 16 May 2002; the
Rules for Organization and Performance of State Procurement of Goods, Works, and Services,
approved by the Resolution of the Government of the Republic of Kazakhstan No. 1158 of31 October 2002; the Resolution of the Government of the Republic of Kazakhstan No. 1163 of
3 November 2000 "On Special Procedures for State Procurement", the standard bidding documents,
approved by the Decree of the Chairman of the Agency of the Republic of Kazakhstan on State
Procurement No. 8 of 31 October 2002, registered with the Ministry of Justice of the Republic of
Kazakhstan under No. 2041 of 14 November 2002.
The Agency of the Republic of Kazakhstan on State Procurement is the authorized body of
the Republic of Kazakhstan in the sphere of state procurement.
The Agency of the Republic of Kazakhstan for State Procurement is responsible for the
development and implementation of the state policies in the sphere of state procurement.  The Agency
generalises and develops proposals aimed at the improvement of legislative acts regulating state
procurement, adopts legislative acts within its competence in accordance with the legislation of the
Republic of Kazakhstan; coordinates and monitors state procurement activities; controls fulfilment ofthe requirements set out in the legislation of the Republic of Kazakhstan on state procurement;
develops accounting forms relating to state procurement, including procedures for their completion
and filing; develops and adopts methodological materials, standard bidding documents; providesWT/ACC/KAZ/37/Add.3
Page 41
consulting services to organizers of biddings relating to state procurement; takes decisions on the
review or cancellation of decisions of organizers of biddings, contractors, and bid evaluation
committees, violating the requirements set out in the legislation of the Republic of Kazakhstan on
state procurement, prior to conclusion of state procurement contracts; initiates court proceedings in
order to invalidate contracts concluded with violations of the legislation of the Republic ofKazakhstan on state procurement; examines instances of administrative offences in the sphere covered
by the legislation of the Republic of Kazakhstan on state procurement, and imposes administrative
punishments in accordance with the legislation of the Republic of Kazakhstan on administrative
offences.
Under the Law of the Republic of Kazakhstan "On State Procurement" of 16 May 2002, state
procurement is the procurement of goods, works, and services effected by public bodies and agencies,
public enterprises, and joint stock companies with th e controlling share owned by the State, as well as
by their affiliated legal entities, using available funds.  A certain portion of goods, works, and services
procured by public bodies and agencies, public enterprises, and joint stock companies with the
controlling share owned by the State, as well as by their affiliated legal entities, is used for their own
production purposes.
Main mechanisms of state procurement are represented by: public bidding, limited bidding
(public and limited bidding may consist of two stages), procurement from one source, selection of a
supplier based on requested price offers, and market procurement.
The concept and the 2001-2004 Program on the Development of the State Procurement
System, as well as the action plan for its implementation, set major medium-term methods for the
improvement of the state procurement system:
- Improvement of the legislation on state procurement;
- Institutional strengthening of the authorized body;
- Introduction of modern information technologies;
- Staff training; and
- Preparation for the development and implementation of the electronic bidding system.
Attainment of the above objectives will help eliminate existing drawbacks of organization and
management of state procurement, allow to create modern electronic bidding infrastructure, and settle
the whole range of issues relating to the adaptatio n of the state procurement system for the accession
of the Republic of Kazakhstan to the WTO.
The recent economic stabilization and growth, while allowing the Republic of Kazakhstan to
increase volumes of procurement of goods, works, and services, still need to be supported by
structural transformations, aimed at by the national policies on import substitution.  Practices ofcertification of enterprises and their products in accordance with the ISO standards are just at the
initial stage.  The share of import of processing facilities, that might have been produced in the
Republic of Kazakhstan, is still large.  Based on preliminary estimates, the ratio of imported goods
and services in the total volume of state procurement is equal to 1/3.  As per such goods as products
for the protection of plants and animals, medica ments, medical equipment, transportation means
(including special types), gauges, computer servers, computers, and peripheral devices, software
products, etc., the share of import is close to 100 per cent.
In this connection, the legislation of the Republic of Kazakhstan on state procurement sets
norms on support of domestic producers, small businesses, and public associations of the disabled.
After generalization of the results of the program implementation and accumulation of the
required statistical data to enable analysis of the share, structure, and dynamics of imports in the stateWT/ACC/KAZ/37/Add.3
Page 42
procurement, the Republic of Kazakhstan intends to develop new program documents on the
improvement of the state procurement system.
Question 51
Could Kazakhstan provide information to the Working Party on how it will ensure consistency
of its new legislation on procurement in the oil and gas sector with the TRIMS Agreement, giventhat he legislation foresees local content requirements?
Answer:
Industry is one of the most important sectors of the national economy of the Republic of
Kazakhstan, its sustainable development being a pre-requisite for the economic growth.
The structure of industrial production is dominated by extraction and processing of
hydrocarbon and mineral products.  This is a sensitive sector of high priority, providing for the bulk of
receipts to the Republican budget.
The above sectors are viewed as the most attractive by foreign investors. The preliminary
forecasts show that the volume of foreign investments to these sectors will increase in the next few
years by several dozens of billions of dollars.
In this connection, and in order to ensure rational restructuring of the subsurface use,
constituting non-renewable national wealth, the Republic of Kazakhstan has introduced newprovisions in its legislation regulating relations in these sectors with the view to achieve sustainable
development of the country through diversification of sectors of the national economy, alienation
from primary products-oriented way of development, stimulation of domestic producers to
manufacture products with a high added value, meeting world standards of quality, and competitive
on both domestic and foreign markets.
Measures introduced to these Laws are non-discriminating and cannot grant preferential
treatment to domestic products (goods, services), as they require obligatory conformity with standards
and other requirements and stipulate organization of bidding within the Republic of Kazakhstan in
accordance with procedures, set by the Government of the Republic of Kazakhstan.
Requirements set for bidding held in the Republic of Kazakhstan are non-discriminating with
respect to foreign participants.  Thus, the monitoring of fulfillment of concluded contracts on
operations relating to subsurface use and oil operations, conducted by the authorized public body to
ensure conformity with the national legislation, has showed that the bidding selection usually results
in the use of goods, produced by foreign company, given the low competitive power of Kazakhstani
products and violations of international quality standards (ISO, API).
As per additional adopted regulations (June 2002), ensuring practical implementation of
contractors’ obligation, the Republic of Kazakhstan would like to point out that it takes steps toimprove certain provisions of these regulations, that codify implementation of measures running
counter to the provisions, set out in the TRIMS Agreement.
However, noting the actual conditions in place in the national industrial sectors, the plans of
the Government of the Republic of Kazakhstan aimed at the establishment of competitive enterprises
in the light and food industry; creation of the fu nctional mechanism for the innovation development of
the real  sector of the national economy; introduction of scientific achievements into the production
process, creation of high-tech production facilities, all require a certain period of time necessary to
view the outcome of attainment of set objectives and ensuring conformity with the provisions of the
TRIMS Agreement on adopted regulations.WT/ACC/KAZ/37/Add.3
Page 43
The Republic of Kazakhstan is prepared to submit detailed information on the 2003-2015
National Program on Industrial Development and Innovations in the Republic of Kazakhstan.
Question 52
Could Kazakhstan keep the Working Party updated on its plans regarding a possible joining of
the WTO Agreement on Government Procurement.  We strongly encourage Kazakhstan topositively consider this option.
Answer:
At present, the Republic of Kazakhstan does not intend to join this Agreement.
4. Policies affecting foreign trade in agricultural products
(e) Internal policies
- Supporting Table DS:1 Green box
Question 53
We previously sought details of the inclusion of state procurement of grain under (3) public
stool holding for food security purposes, and sought more details about state procurement of
grain and whether purchases and sales were made at current market prices. Kazakhstan
replied:  "the state procurement of grain for th e purpose of food security was implemented by
the state products contract corporation at mark et prices through the commodity exchange, i.e.,
in compliance with the requirements set forth in paragraph 3 of Annex 2 to the agreement on
agriculture" (reply to Question 62 of WT/ACC/KAZ/22).  We appreciate this.  However could
Kazakhstan please provide details of how the requirements of the other criteria set out in
paragraph 3 of Annex 2 were met?
Answer:
Under the Republican budgetary program on the Procurement for the Renewal of the National
Grain Reserve, every year the Republican budget allocates funds to the procurement of grain for the
national reserves of the Republic of Kazakhstan.  The national grain reserve is the buffer designed to
cover mobilization needs and to ensure food safety of the Republic of Kazakhstan, and implements
provisions of Paragraph 3 Annex 2 of the Agreement on Agriculture – Creation of National Reservesfor Food Safety Purposes.
National grain reserves are formed by the authorized body – the Ministry of Agriculture of the
Republic of Kazakhstan – through the Agent on Management of the National Grain Reserve (the
national public company – CJSC, Product Contracts Corporation, hereafter – the Corporation) by
means of annual grain procurement procedures, stipulated in the Law of the Republic of Kazakhstan
"On State Procurement", and the Rules on Formation, Storage, and Use of the National Grain Reserve
(the Resolution of the Government of the Republic of Kazakhstan No. 394 of 28 March 2001) inaccordance with the Resolution of the Government of the Republic of Kazakhstan on state
procurement for the corresponding year.
State procurement mechanisms (rules on financing of operations with the national grain
reserve, the volume of the state procurement of grain, requirements to documents, and to the quality
of grain) shall be defined by the Resolution of the Government of the Republic of Kazakhstan,offering an appropriate level of transparency in terms of financial costs.WT/ACC/KAZ/37/Add.3
Page 44
In 1996 the state procurement of grain has been performed in the commodity market at the
market price.
The grain of the national reserve has been sold in the domestic market at the market price to
the winner of the open bidding or in the commodity market.  The price, at which the Corporation sold
grain for export purposes, has also been based on the world market conditions and provisions of thecontracts concluded on the supply of grain, which al so implements Paragraph 3 Annex 2 of the WTO
Agreement on Agriculture – sale of food reserves – at  prices not lower that the current internal market
prices on a concrete good of the appropriate quality.
Question 54
A new green box program has been introduced in the 1996-98 DS:1 table:  "Development of
state national parks, fish hatcheries, forestry associations".  Could further information be
provided for this new measure?
Answer:
In 1997-1998, funds for budgetary programs have been allocated from the Republican budget
to the Republican Committee on Forestry, Fisheries, and Hunting Grounds of the Ministry of
Agriculture of the Republic of Kazakhstan for financing of the following programs:  Forestry
Associations (green belts, and operating expenses), Forest Protection, National Parks, NatureReserves, Selection Centers, Forest Vegetation Breed ing Stations, Forestry and Forest Area Planning,
Reproduction of Fish Reserves.
More specific information on the programs on the Development of state national parks, nature
reserves, fish hatcheries, and forestry associations can be found in the paper WT/ АСС /SPEC/KAZ/7.
- Supporting Table DS:2 - Development programmes
Question 55
Kazakhstan has submitted entries for Supporting Table DS:2 – Development programmes,
pursuant to its request to be treated as a deve loping country. Without prejudice to our position
in relation to this request, we note that the value for 1996 for preferential credit to agriculture
has increased to US$39,880,000 in Table DS:2 for 1996-98 from US$11,493,000 in the same tablefor 1994-96.  How does Kazakhstan explain the three-fold increase in this category of
expenditures in relation to the same year?
Answer:
Soft loans for the agricultural sector have been granted under the Agreement concluded
between the Republic of Kazakhstan and the Asian Development Bank (hereafter – ADB) on the Loan
of US$100 million, ratified by the President of the Republic of Kazakhstan "On Ratification of the
Loan Agreement of the Republic of Kazakhstan and the Asian Development Bank" No. 2685 of14 December 1995.  The loan have been granted in two tranches of US$50 million each, the bulk of
which have been realized within three years between 1996 and 1998.
Given the limited period of time defined for submission of the information to the WTO
Secretariat, the Tables on internal support of 1994-96 included only preliminary data on disbursement
of the listed soft loans.  The reviewed Tables on 1996-1998 reflect finalized data on the amount ofsoft loans as of 1996, granted to agricultural producers.WT/ACC/KAZ/37/Add.3
Page 45
Question 56
Also, who qualifies for the "preferential cred it to agriculture" and "state guarantees on
external loans" programmes?
Answer:
Soft loans to the agricultural sector
Loans have been granted to agricultural producers via second-tier banks (hereafter – Banks)
based on bidding results for the purchase of facilities for processing of agricultural products.
Soft loans have been granted to projects meeting the following criteria:
- leasing-based purchase of agricultural machinery, and facilities for production and
processing of agricultural products;
- establishment of wholesale food markets and other market infrastructure for the sale of
agricultural products; and
- renewal of the working capital of agricultural producers.
To receive soft loans, the potential Borrower (agricultural producer, wishing to receive a soft
loan) shall meet the following requirements:
- the Borrower shall have property for mortgage;
- the Borrower shall not have tax arrears payable to the budget; and
- requirements to documents submitted by the Borrower to the Banks have been set in
accordance with their credit policies.
The selection of the equipment and the supplying companies shall be performed jointly by the
Banks and the Borrower based on the results of the bidding procedure.
State Guarantees on External Loans
State guarantees on non-governmental loans have been granted for foreign credit lines (credit
lines of  the United States, Germany, Israel, Italy, Canada, France, Turkey, Spain, and Austria),
attracted in 1992-1994 to the agricultural sector of the Republic of Kazakhstan to enable agricultural
producers to purchase production equipment, new technologies of crop cultivation (potatoes, cotton,
sugar-beet) and development of animal husbandry, as well as agricultural machinery, and facilities forprocessing of agricultural products.
Article 20 of the Law of the Republic of Kazakhstan "On State Loans and Debts, and Loans
and Debts Guaranteed by the State" contains requirements applied to Borrowers, applying for state
guarantees.
Legal entities, wishing to receive state guarantees on loans, in cases where they act as
borrowers, shall:
- be residents of the Republic of Kazakhstan, engaged in business activities;
- implement projects, included in the State Investment Program of the Republic of
Kazakhstan, adopted for a corresponding period;
- have counter-guarantee of the second-tier bank of the Republic of Kazakhstan, meeting
requirements on reimbursement of loans, set by the Government of the Republic of
Kazakhstan following prior coordination with the National Bank of the Republic ofKazakhstan,  or  decisions of the sectoral ministry, authorized public body, appointed byWT/ACC/KAZ/37/Add.3
Page 46
the Government of the Republic of Kazakhstan, and of the Ministry of Finance of the
Republic of Kazakhstan on the ability of the Borrower to fulfill obligations arising from
the attracted non-governmental loan in cases, where the Borrower is represented by a
legal entity with 100 per cent state participation in the authorized capital or by a joint
stock company with the state owned majority interest;
- not have arrears on dues relating to the repayment and servicing of previous non-
governmental loans, guaranteed by the State, as well as other outstanding debts before the
creditors; and
- present obligations on the co-financing of the proposed investment project if the attracted
loan is  insufficient to cover total project costs.
The Government of the Republic of Kazakhstan may set additional requirements for parties,
applying for state guarantees, depending on the terms of the non-governmental loan and the level ofrisk of the investment project.
Question 57
Are "subsidies through the foundation of support of small and medium businesses" directed
only to the agricultural sector?
Answer:
Funds in the form of the financial aid to small and medium businesses have been allocated
through the foundation of support of small and medium businesses.
Subsidies allocated through the foundation of support of small and medium businesses have
been granted to all small and medium businesses, in cluding those operating in the agricultural sector.
Table DS:2 reflects only funds allocated to small and medium businesses of the agricultural sector inthe framework of the specified program.
- Supporting Table DS:3 Blue Box - Supporting Table Market Price Support -
Supporting Table Equivalent Measurement of Support
Question 58
There are no entries for these domestic support tables.
Answer:
The Republic of Kazakhstan does not provide subsidies of this type.
- Supporting Table DS:4 Calculation of total AMS
Question 59Regarding Table DS:4 for the 1996-98 period (WT/ACC/SPEC/KAZ/6), we appreciate the
added level of transparency that has been afforded by breaking down all product-specific
support into the three years.  Could extra rows be introduced indicating the average product-specific AMS for the three-year period for the purposes of de minimis  calculation?  Similarly,
could the average gross output be provided an d the production share calculated from the
averages?WT/ACC/KAZ/37/Add.3
Page 47
Answer:
The Republic of Kazakhstan will submit the reviewed Table DS:4 incorporating the above
comments.
Question 60
Near the end of the DS:4 table, the row labelled, "Total: Current Total AMS (thousands tenge)"
is misleading because it appears to be the total of non-product specific support only and the
label should reflect this.
Answer:
The Republic of Kazakhstan will make necessary corrections.
Question 61
Also gross output is placed in the same row as "total (all aggregate measures of
support)(thousands tenge)", and a production share calculated from these figures.  However,the above measure of support is apparently the sum of both non-product specific and product-
specific AMS.  For the purposes of facilitating calculation of de minimis for non-product specific
support, the gross output should be instead placed a row above where only the total of non-
product specific support is given, and then the production share calculated for non-product
specific support as a percentage of gross output.  Once again, as in product-specific support,averages should be provided for the three years for both total non-product specific support and
for the gross output.
Answer:
The Republic of Kazakhstan noted the above comments and will submit the revised Table
DS:4 to the WTO Secretariat.
Question 62
There appears to have been a slight downward  adjustment for total non-product specific
support in 1996 from 33,208,958 thousand tenge in the 1994-96 table (WT/ACC/SPEC/KAZ/2)
to 32,530,510 tenge in the 1996-98 table (WT/ACC/SPEC/KAZ/6).  At the same time, non-
product specific support has risen sharply in the new 1996-98 figures overall as compared to the1994-96 figures, due to large increases in such supporting during 1997 and 1998. These large
increases is non-product specific support would appear to constitute violations of the standstill.
This has resulted in an increase of over two and a half times the average total AMS in the
original 1994-96 base period.
The main contributor to this increase was rescheduled arrears, which rose from 5,333,373 to
93,257,900 thousand tenge from 1996 to 1998.  Why were such measures introduced?  If this
was in response to specific and temporary financ ial and/or sectoral crises, then we would expect
that the additional outlays (as indicated in the new tables and any new outlays introduced since
these tables were submitted) would cease in a timely manner and there will be no recourse to
them in the future.  We would not accept the inclusion of entries that were clearly
unrepresentative of current policies and would involve major distortions in Kazakhstan's level
of commitment.WT/ACC/KAZ/37/Add.3
Page 48
Answer:
One of the main reasons behind the growing level of non-product-specific measures in 1996-
1998 is represented by the accumulated debts of agricultural producers before the Republican budget,
pushed even further by the severe and protracted crisis in the national economy of the Republic of
Kazakhstan, that had adverse effects primarily in the agricultural sector.
Deferred debts of agricultural producers have been included in the calculation of the AMS in
accordance with Paragraph 1(a) Annex 2 of the Agreement on Agriculture.
Debt restructuring is a persevering issue for the economy of the Republic of Kazakhstan. At
present, it retains all of its edge given a number of objective factors.  The Republic of Kazakhstan is
located in the area of high-risk agriculture, charac terized with distinct zoning and a strong dependence
on the environmental and climatic conditions, the bio-climatic potential of arable lands being 2.7
times lower than that of the North America and the Western Europe.  This factor is all but favorablefor the rehabilitation of the financial and economic position of the agricultural producers, and, as a
consequence, remains one of the reasons of the increasing urbanisation rate, resulting in a situation
where 203 villages have been abolished and some 27 rural districts have been recognized as sunset
areas. Additionally, another reason curbing development is the unwillingness of second-tier banks to
credit agricultural production.  Pledge property being insufficient and represented by fixed assets,coupled with a poor development of the land market, represent the main reason of the situation, where
the bulk of agricultural producers cannot get access to credit, either seasonal or long-term.
This situation has been pushed further still by radical reforms, initiated under macroeconomic
conditions rather unfavourable for the sector.  The agricultural sector, deprived of the state support,
started to accumulate astronomic debts, and the process spread far and wide.
This problematic issue, both systematically a nd persistently recurring, is rooted in the
persevering losses of agricultural producers, rooted in catastrophic fatigue wear (approximately
78 per cent), ageing  and insufficiency of agricultural machinery,  expensiveness of lubricants and
combustibles, and a number of social issues.  Thus, based on the data of the Statistics Agency, in 2002
the agricultural sector incurred losses of KZT 2.72 billion or US$17.8 million.
The increasing price disparity is also one of the factors of the loss-making in the agricultural
sector. Thus, between 1993 and 1999, prices on industrial goods have increased by 1,417 times, while
those on agricultural products - only by 686 times.  Furthermore, there is still a significant price gap
between plant products and animal products, which increased by 282 and 1,221 times, respectively.
Following closing of the planned state financing of the agriculture, transition from enterprises
fully funded by the state to non-governmental forms of property (their share in the production volume
skyrocketed from 38.9 per cent in 1990 to 99.3 per cent in 1999), and given the weak budget,agricultural enterprises started to accumulate debts in all spheres, including target-oriented loans, and
centralized loans, loans for covering debit balance of the inter-republican netting, wages, and loans of
the National Bank of the Republic of Kazakhstan, external state loans, as well as accrued, but
outstanding interest payments on the above loans, fines, and penalties, etc.
Given the high inflation rate, economic agents have lost their own working capital and the
unavailability of the adequate credit system in the agricultural sector has made this loss practically
unrecoverable.
As a result, financial standing of agricultural producers evolved into a permanent problem,
forcing the State to conduct periodical restructuring of debts.WT/ACC/KAZ/37/Add.3
Page 49
Hence, the Government of the Republic of Kazakhstan has been forced to defer accumulated
debts, payable between 1996 and 1998.  The need of the deferral has also been dictated by the lack of
funds in accounts of agricultural producers and their insolvency.
At present, the issue of the huge volumes of outstanding debts of agricultural producers
preserves much of its edge, some 90 per cent of them being still unsettled given the lack of funds.Given the persevering complex situation in the agricu ltural sector, this issue will surely remain open
for a number of years to come.
Current policies of the Republic of Kazakhstan on outstanding debts of agricultural producers
comprises the following positions:
- outstanding debts of agricultural producers may not be cancelled except for tax arrears of
livestock breeding stations and seed breeding stations, payable to the budget, deferred in
2000, and cancelled under the decision of the Parliament of the Republic of Kazakhstanof December, 2002;
- inventory of agricultural producers, who have outstanding debts before the budget; and
- deferral of payment individually for each economic agent, noting its solvency, financial
and economic circumstances.
To address this issue, the Government of the Republic of Kazakhstan has established by its
decision a permanent Intergovernmental Committee on collection and restructuring of loans, issued
from the Republican budget, as well as other funds allocated from the Republican budget under non-
governmental external loans, guaranteed by the Republic of Kazakhstan.
The agriculture of the Republic of Kazakhstan  will also need subsidies in the future.
Therefore, while not wishing to cancel continuity of the issues relating to support of the agriculturalsector, including deferred debts, the Republic of Kazakhstan, noting the results of reforms
implemented in the sector, shift emphasis from earlier support measures to more advanced
mechanisms.
The rationalization of measures of state support of the agricultural production is addressed in
the 2003-2005 National Program of the Republic of Kazakhstan on Agricultural Production, adoptedby the Decree of the President of the Republic of Kazakhstan No. 889 of 5 June 2002.
The state support will be targeted at the creation of favorable conditions for agricultural
producers demonstrating higher level of efficiency.  Apart from the traditional loan schemes for
sowing and harvesting, subsidies on the purchase of mineral fertilizers, development of seed selection
and livestock breeding, leasing of agricultural machinery, etc..  the Republic of Kazakhstan provides
for subsidize costs of services on the supply of water to agricultural producers, production of stock
seeds, leasing of facilities by enterprises engaged in processing of agricultural products; benefits onthe interest rate of up to 15 per cent on bank loans, issued to processing enterprises as a form of
renewal of their working capital, included in the AMS.
Also, the Republic of Kazakhstan would like to point out that the standstill principle covers
only the commitment of parties under the GATT Agreement to abstain from application of any
measures restricting trade in the course of the Uruguay Round of negotiations, and shall not be seen asa pre-requisite in the context of the WTO accession procedures.  Given that the economy of the
Republic of Kazakhstan is in the process of reformation, we should not that fulfilment of this principle
is practically impossible.WT/ACC/KAZ/37/Add.3
Page 50
Question 63
There appears to be a minor clerical error fo r the production share column 6 with the
percentages for cattle 1998 and sheep 1997 apparently swapped over.
Answer:
The Republic of Kazakhstan will make necessary corrections.
Question 64
Kazakhstan will need to be much more specific in relation to its entries for the basic product
that it refers to as "fruit".  This of course  applies to DS:6 and DS:7, as well as to DS:4.
Answer:
Support classified as "Fruit" comprises support of agricultural producers engaged in
viticulture and cultivation of perennial plants.  The volume of support granted to the cultivation of
perennials have not been recorded at that period.
- Supporting Table DS:7 Other Product-Specific Support and Total Product-Specific
Support
Question 65
The information in DS:7 is identical to DS:6.  The only measures that need to be included in
DS:7 are "other" product-specific support not covered by DS:5 or DS:6.  Only a summary offigures from DS:5 and DS:6 need to be included so that total product-specific support can be
arrived at.
Answer:
The Republic of Kazakhstan will make necessary corrections.
- Supporting Table ES:1 Export Subsidies
Question 66
The tables for 1996-1998 include export subsidies where none previously existed.  This is totally
unacceptable.  It is our expectation that these measures will be withdrawn prior to accession
and that Kazakhstan will commit in Supporting Table ES:1 to not have recourse to there in the
future.
Answer:
The Republic of Kazakhstan needs to use export subsidies given the following objective
factors:
- Geographical location (land-locked country), vastness of territory, remoteness from major
markets (countries) engaged in import of agricultural products, all drastically decrease the
competitive power of Kazakhstani agricultural products in terms of price parameters;
- In the Republic of Kazakhstan the bulk of export products is transported by railway, the
share of transportation costs in the product value rising as high as 30 per cent. Given the
high share of transportation costs in the export price, domestic products of the Republic ofWT/ACC/KAZ/37/Add.3
Page 51
Kazakhstan are not competitive in the foreign markets.  The share of foods and
agricultural products in the total volume is decreasing and fluctuates recently between 8
and 10 per cent of the total export turnover, while more than 50 per cent of export
turnover is covered by grain.  However, while in some years the Republic of Kazakhstan
exported 10-12 million tons of grain, in 2001 and 2002 this figure plummeted to 3.3 and4.3 million tons, respectively; and
- The production of the basic export product (g rain) exceeds by far (by more than two
times) the level of demand on the domestic market, while agricultural production involves
the major part of the population of the Republic of Kazakhstan, sales of agricultural
products for export purposes being the only source of income for the population of rural
areas. Given this, the Government of the Republic of Kazakhstan shows support to the
export of products.
At the same time, it should be noted that major trade partners of the Republic of Kazakhstan –
WTO members (the United States, the European Union), have the right to subsidize export products
which right they exercise very actively.  The application of export subsidies will allow the Republic of
Kazakhstan to ensure equal competitive capacities for the Kazakhstani traders.
Question 67
We seek clarification on state procurement of grain. Could Kazakhstan please explain how its
procurement process meets the requirements set out in Paragraph 3 of Annex 2 of the
Agreement on Agriculture.  At the last pluril ateral (July 2001), Kazakhstan indicated that it
was providing market price support to grain producers through its procurement program.
Kazakhstan had explained that (in 2000) the average price was 80 USD per tonne andproducers did not want to sell at that price so the price was adjusted to US$95 per tonne.  Could
Kazakhstan please detail its policy on price determination for grain?  Kazakhstan will need to
include any price support in its domestic support tables.
Answer:
As per the statement that the Republic of Kazakhstan has been providing market price support
to grain producers through its procurement program, the Republic of Kazakhstan points out that the
state procurement of grain is used to ensure the national food safety and mobilization needs and is not
aimed at the provision of price support to agricultural producers.
The annual state procurement of grain is necessary to refresh grain reserves.  It is performed
under contracts concluded with the agricultural producers on grain supply through direct purchase
procedures, effected by the Corporation, and serves to ensure the food safety of the Republic of
Kazakhstan.
Currently, the grain is procured for the national reserves directly from agricultural producers
in line elevators at the price and in the amount, determined by the Resolution of the Government of
the Republic of Kazakhstan.
Grain procurement effected by the Corporation reflects the level of market prices in place in
the free grain market at the time of procurement for the moment, and is approved by the Decision ofthe Government of the Republic of Kazakhstan.  The procurement price varies depending on the
changing market conditions. The Decision of the Government of the Republic of Kazakhstan is a
necessary component of the entire process, as it is connected with spending of budgetary funds.
However, this does not imply that the Government of the Republic of Kazakhstan has any influence
on the level of prices.WT/ACC/KAZ/37/Add.3
Page 52
Thus, in 2000 under the Resolution of the Government of the Republic of Kazakhstan
No. 1341 of 5 September 2000 "On State Procurement of Grain in 2000", the initial procurement price
has been set at US$70 and US$75.  However, given the growing demand in the foreign markets and
relatively low yield of the year, the situation in the domestic market changed continuously towards the
increase of the price on grain.  Consequently, the procurement price has been adjusted to US$80 andUS$85 (the Resolution of the Government of the Republic of Kazakhstan No. 1640 of
31 October 2000), and subsequently to US$100 (the Resolution of the Government of the Republic of
Kazakhstan No. 1841 of 13 December 2000).
Question 68
In the 1996-98 DS:1 table, a green box program  was introduced for "Development of state
national parks, fish hatcheries, forestry associations".  Fish and fish products are not covered
by the Agreement on Agriculture.  Could Kazakhstan please amend this to remove funds spenton development of fish hatcheries?
Answer:
The Republic of Kazakhstan will remove funds spent on development of fish hatcheries from
Table DS:1 on 1996-1998 and submit the amended Table to the WTO Secretariat.
Question 69
We ask that Kazakhstan to cease paying export subsidies and bind its export subsidies at zero.
The introduction of export subsidies by Kazakhstan violates the standstill principle and runs
counter to the decision taken by Ministers at Do ha to phase out all forms of export subsidies.
Answer:
Without trying to forestall the outcome of the new round of negotiations under the Doha
Development Agenda, the Republic of Kazakhstan intends to undertake commitments for export
subsidies in pursuance of the Agreement on Agriculture, adopted in the course of the Uruguay Round.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
2. Substantive standards of protection
(a) Copyright and related rights(Statement) Kazakhstan is to be commended for the efforts it has made since the last Working
Party to revise its laws on intellectual pr operty protection in line with the WTO TRIPS
Agreement.  We have discussed some of this legislation with you, and we would appreciate a
status report on the further amendments noted in KAZ/34/Rev.1
- Copyright Amendments/TRIPS Compliance
Question 70
Although The Republic Kazakhstan updated its Law on Copyright and Neighbouring Rights in
June 1996, we have identified a number of TR IPS copyright deficiencies in the law in
September 2000 including the absence of a provisio n that clearly provides protection for pre-
existing works and sound recordings as required under bilateral and multilateral obligations
undertaken by Kazakhstan.  In October 2002, Ka zakhstan stated that such TRIPS copyrightWT/ACC/KAZ/37/Add.3
Page 53
deficiencies would be addressed in amendments and additions to its 1996 copyright law, a draft
of which "will be submitted to Parliament in December 2002."
Please provide:  an update on the status of this legislation; and a copy of the proposed, amended
law.
- International Copyright Relations
The Republic Kazakhstan is to be commended for signing the WIPO Copyright Treaty (WCT)
and the WIPO Performances and Phonograms Treaty (WPPT) in December 1996.
Please provide an update on the steps taken, if any, to ratify and fully implement these treaties.
- Copyright Enforcement
Although the WIPO Internet treaties help to raise the minimum standards of copyright
protection, ratification and accession to the treaties must supplement, not replace, effective
copyright enforcement in traditional and electronic channels of commerce.
Please provide an update on recent civil and criminal copyright enforcement actions.
Kazakhstan did not adequately respond to the questions previously posed.  For example,
Kazakhstan states that "A law on 'Customs in the Republic of Kazakhstan'…is supplemented
by articles, establishing a mechanism of customs control…."
This response does not address the concern that was previously voiced that there are no civil or
criminal ex parte search procedures and no effective border enforcement.
Please indicate precisely where, in Kazakhstan's law and regulation, such provisions can be
found.
Kazakhstan indicates in the chart in WT/ACC/KAZ/24 that it does not allow right holders or
importers to inspect detained merchandise or  provide information regarding the importer to
the right holder , as required by TRIPS Article 57.
Are there any plans to change this  aspect of its domestic law to comply with TRIPS?  Likewise,
has Customs been granted authority to act ex officio?
Answer:
- Changes and Amendments Relating to C opyright and Conformity with the TRIPS
Provisions
At present, the Committee on Intellectual Property Rights of the Ministry of Justice of the
Republic of Kazakhstan (hereafter – the Committee) has developed the draft Law of the Republic of
Kazakhstan "On Changes and Amendments to Legislative Acts on Intellectual Property".  The draft
law provides for changes and amendments to the Law of the Republic of Kazakhstan of 10 June 1996
"On Copyright and Relating Rights" aimed to bring it in line with the provisions of the TRIPS
Agreement.  Changes and amendments cover, in the first place, provision of retroactive protection andthe status of organizations engaged in collective management of economic rights of authors.
Currently, the draft law is coordinated with all interested public bodies.WT/ACC/KAZ/37/Add.3
Page 54
Noting the wish of the some members to have the draft Law of the Republic of Kazakhstan
"On Changes and Amendments to Legislative Acts on Intellectual Property", the Republic of
Kazakhstan will submit a copy of the draft (ref.: ДРТ-1-1/4-230 of 30 January 2003).
- International Relations in the Sphere of Copyright
In order to enable implementation in the Republic of Kazakhstan of the Agreement on
Copyright and the Agreement on Performances and Phonograms of the World Intellectual Property
Organization, the Republic of Kazakhstan has taken a number of steps.  Thus, it has developed two
draft laws "On Accession of the Republic of Kazakhstan to the World Intellectual Property
Organization Performances and Phonograms Trea ty" (DIF) of 20 December 1996, and "On Accession
to the World Intellectual Property Organizati on Copyright Treaty" (DAP) of 20 December 1996.
Both draft laws are currently being coordinated with interested public bodies.
- Enforcement of Copyright
Based on the data submitted by the Republican public association "Association of Authors of
the Republic of Kazakhstan", responsible for the collective management of economic rights of
authors, in 2002 the number of lawsuits arising from infringements of economic rights of authors in
the sphere of public performances equalled 39, of which, by this moment, nine have been won by
authors (collected penalties exceeded KZT 3,000,000), three have been dismissed for various reasons,three have been lost (currently examined by the court of appeal and under supervisory procedures);
and 24 are still examined by nisi prius courts.
Unfortunately, evidence of criminal proceedings initiated against violating parties does not
exist in the Republic of Kazakhstan.
However, it should be noted that in 2002 the number of administrative measures, taken by the
Committee and justice authorities in the framework of activities aimed at fighting piracy, increased by
78 per cent.  Thus, in 2002 the Committee and regional bodies of justice conducted 856 inspections of
natural persons and legal entities, verifying fulfil lment of the laws on copyright and relating rights,
which resulted in confiscation and destruction of 207,688 units of counterfeits worth KZT 59,119,341.
Under court decisions, budget has received KZT 1,980,176.
In 2001 the number of inspections of natural persons and legal entities comprised 481,
resulting in confiscation and destruction of 144,190 units of counterfeits worth KZT 28,316,983. The
budget received KZT 1,088,775 under court decisions.
- Enforcement of Intellectual Property Rights
The Republic of Kazakhstan takes steps to ensure the required level of protection for the
intellectual property subject matter by bringing its national legislation in line with the requirements
set out in TRIPS and international agreements.  Thus, the draft Customs Code of the Republic ofKazakhstan contains  a whole section dedicated to the protection by customs bodies of rights to the
intellectual property subject matter.  In particular, this section of the draft Customs Code expands on
the peculiarities of customs clearance of and customs control over goods, containing intellectual
property subject matter.  Peculiarities of customs clearance and customs control address movement of
goods, containing intellectual property subject matter, across the customs border of the Republic ofKazakhstan, procedures and terms for suspension of authorization, and compensation of costs
incurred by suspension of authorization.
Currently, authorities of customs bodies are contained in the Law of the Republic of
Kazakhstan "On Customs in the Republic of Kazakhstan".WT/ACC/KAZ/37/Add.3
Page 55
As per examination of goods, suspended by customs bodies, by possessors of rights, the
customs legislation of the Republic of Kazakhstan requires that the customs body of the Republic of
Kazakhstan:
- notify the possessor of rights and the applicant on suspension of goods, containing
intellectual property subject matter;
- notify the possessor of rights and the applicant on reasons for suspension;
- inform the applicant on the name and address of the possessor of rights; and
- inform the possessor of rights on the name and address of the applicant, not later than on
the next working day following the day when the decision on suspension of goods,
containing intellectual property subject matter, has been made.
Additionally, the Republic of Kazakhstan would like to point out, that in January of this year,
the Republic of Kazakhstan has established the first piracy control organization, entitled the"Association of the Republic of Kazakhstan on the Protection of Copyright and Relating Rights",
which held a press-conference on 11 February.  The participants of this press-conference included
founders of the organization – limited liability companies Meloman, Vostok-video, Gamma-video,
Digital-video, Premier Multimedia, FAIR PLAY, the third secretary of the US Embassy in the
Republic of Kazakhstan – Mark E. Wood, the employee of the Department on Politics, Economy, andScience of the Embassy T. Omoyev, famous performers, representatives of mass media, and the
Chairman of the Committee on Intellectual Property Rights of the Ministry of Justice of the Republic
of Kazakhstan.
Question 71
In Document WT/ACC/KAZ/37/Add.1, page 20, it is stated that modifications to the Copyright
Act are currently under discussion.  What is, apart from the retroactive granting of protection
for works covered by international conventions,  the precise content of this new legislation?
"A registration of license agreements for use of objects of copyright and neighbouring rights is
being intensified".  (WT/ACC/KAZ/37/Add.1, Page 20) – Is such registration mandatory?
Answer:
With this we attach the draft Law of the Republic of Kazakhstan "On Changes and
Amendments to Legislative Acts of the Republic of Kazakhstan on Intellectual Property", introducing
changes and amendments to the Law of the Republic of Kazakhstan of 10 June 1996 "On Copyright
and Relating Rights" (see Annex 3).
As per the obligatory nature of registration of licensing agreements on the use of copyrighted
works and works covered by relating rights, the Republic of Kazakhstan would like to point out that
under Paragraph 3 Article 44 of the Law of the Republic of Kazakhstan "On Copyright and RelatingRights", registration shall be obligatory only in respect of licensing agreements concluded with
organizations, involved in collective management of economic rights of the copyright owner.
(b) Trademarks, including service marks
Question 72
The following questions refer to the "Law of the Republic of Kazakhstan on Trademarks,
Service Marks and Appellations of Origin", 456-I LRK, of 26 July 1999:
Article 5 of the Law does not seem to limit the category of signs which may serve to distinguish
the goods/services from one undertaking to those of other undertakings.  Please clarify whetherWT/ACC/KAZ/37/Add.3
Page 56
the Law would permit the registration of smell and/or sound marks and if so, under what
conditions?
Answer:
The Law of the Republic of Kazakhstan on Trade Marks, Service Mark, and Appellations of
Origin covers all requirements of the TRIPS Agreement, including Articles 15 through 24.
Under Paragraph 2.1 of the Rules for Drafting and Filing of Applications for Registration of
Trade Marks of 8 October 1996 (hereafter – the Rules) trade marks may be represented by words,
pictures, 3D objects, and other forms.  These other forms are represented under Paragraph 2.1.5 of the
Rules by sound marks in the form of signals.
If the submitted application involves registration of a sound mark, it shall include its musical
notation and phonogram recorded on tape.  If a sound mark includes a part of a music piece, the
application shall specify its composer and title (for copyright violations clearance).
Question 73
The Legislation of the Republic of Kazakhstan does not provide for registration of smell marks.
Article 6 (3) of the Law provides in a supplementary protection for mineral waters, wines and
spirits.  Does the Kazakh Republic foresee to extend such protection to other goods as well (e.g.
beers and other agricultural products)?
Answer:
Paragraph 3 Article 6 of the Law does not provide for additional level of protection for
mineral waters, wines, and spirits.  The strong emphasis placed on these products results from the fact
that geographical indications occur mainly in descriptions, accompanying mineral waters and wines.
Question 74
How does Article 6 (3) of he Law (second bullet point) comply with Article 22.2 (a) of the TRIPs
Agreement?
Is there any provision of the Law that implements Article 22.2 (b) of the TRIPs Agreement?
Is there any provision of the Law that implements Article 22.4 of the TRIPs Agreement?
Answer:
Paragraph 3 Article 6 of the Law implements Article 22.2. of the TRIPS Agreement.  The
legislation of the Republic of Kazakhstan prohibits registration, as trademarks or their elements, of
designations, including geographical indications, that indicate or suggest that the good in question
originates in a geographical area other than the true place of origin in a manner which misleads the
public as to the geographical origin of the good. This provision covers designations contained in
geographical indications of mineral waters, wines. and strong alcoholic beverages, and includes cases
of translated designations or designations having the following prefixed phrases:  "à la", "in the styleof", etc..  Under the above Law, registration of applications containing false or misleading
geographical indications shall be denied.WT/ACC/KAZ/37/Add.3
Page 57
Question 75
Article 7 (e) seems to limit the protection of geographical indications to those appellations of
origin protected in Kazakhstan.  How are geographical indications of other WTO members
protectable in Kazakhstan?
Answer:
Under Paragraph 1 Article 7 of the Law, regist ration as trademarks of designations of goods
and services,  identical or similar to appellations of origin protected by the Republic of Kazakhstan
shall be denied where such use would result in a likelihood of confusion.  Hence, if processing of the
application for registration of a trademark reveals that it contains or consists of a geographical
indication, registered as the appellation of origin, the registration shall be denied if the application has
been submitted by a person without the right to use the appellation of origin in question.  However, if
the applicant is the owner of the right to use this appellation of origin, the application shall beregistered, while all protection of the geographic indication shall be removed.
Question 76
Article 21 (1) of the Law mentions that "no transfer of the right to the trademark shall be
allowed where it might mislead as to the product or its manufacturer".  Please confirm that a
trademark maybe assigned with or  without the goodw ill of a company.
Answer:
Under Paragraph 1 Article 21 of the Law, the right to a trademark may not be assigned or
transferred if this action is of such a nature as to mislead the public as to the product or its true
manufacturer.  Introduction of this provision has its roots in the necessity to perform analysis of
conformity of the trademark with requirements of Articles 6 and 7 of the Law in respect of the newowner.
Question 77
Article 19 (4) of the Law states that the cancel lation of a trademark can be requested when it
has not been used for five consecutive years.  Please specify whether a resumption of use before
the action for revocation is filed, will be consid ered a "revival" of the exclusive right. In other
words, shall a resumption of use following a no n-challenged period of more then five years of
non-use, lead to a restoration of the right?
Answer:
Under Paragraph 4 Article 19 of the Law, the registration of a trademark may be cancelled or
revoked as a result of opposition after an uninterrupted period of five years of non-use following
registration, or after an uninterrupted period of five years of non-use immediately preceding the
opposition procedures, if initiated by an interested party.  If no opposition has been initiated, theregistration of a trademark shall be valid throughout the entire period.  Instances of use of a trademark
shall be verified by the Board of Appeal of the Committee on Intellectual Property of the Ministry of
Justice of the Republic of Kazakhstan, or by a court decision made after hearing  an opposition or a
lawsuit.
Question 78
Please clarify the difference between Collective Trademarks and Appellations of Origin under
the Law.  Can a Collective Trademark be composed of or contain a geographical indication?WT/ACC/KAZ/37/Add.3
Page 58
Answer:
Under Paragraph 7 Article 1 of the Law, a collective trademark of an association or any form
of organization of legal entities and/or individual entrepreneurs, serves to designate goods or services
produced or sold by them, and having the same characteristics (quality, etc.).  Hence, under Paragraph
5 Article 7 of the Law, registration as collective trademarks of designations of goods and services,identical or similar to appellations of origin protected by the Republic of Kazakhstan shall be denied
where such use would result in a likelihood of confusion, except for cases where these designations
may be included as non-protected elements of a trademark, if the registration is granted to an owner of
the right to use the appellation of origin in question.
Question 79
Please indicate whether a foreign geographical indication needs to be protected in your country
as an Appellation of Origin (Title 6 of the Law) in order to benefit of exclusive rights?
Answer:
Legal protection of appellations of origin in the Republic of Kazakhstan is based on their
registration in accordance with procedures stipulated by the national legislation, as well as by
international agreements to which the Republic of Kazakhstan is party.  Applications for registration
of an appellation of origin filed by foreign applicants shall include a document certifying their right touse the appellation of origin specified in the application in the country of origin.
Question 80
Please clarify whether Article 26 covers non-geographical names that yet identify a product as
having a certain origin in accordance with Article 22.1 of the TRIPs Agreement.
Answer:
Under Paragraph 9 Article 1 of the Law, an appellation of origin is a geographical indication
used for designation of goods, specific qualities of  which are connected primarily or solely with the
place of production, including environmental, and climatic conditions, and/or human factors.
Article 26 of the Law stipulates that appellations of origin may be represented by names of countries,
cities, towns, villages, and areas (including their historic names).
Question 81
Please clarify article 27 (third recital) and its compatibility with Article 24.6 of the TRIPS
Agreement.
Answer:
Paragraph 3 Article 27 of the Law implements all requirements of Article 24.6 of the TRIPS
Agreement. In particular, it provides for denial of registration, as appellations of origin of goods and
services, of designations containing or consisting of geographical indications identical with the termcustomary in common language as the common name for such goods or services in the Republic of
Kazakhstan.  For instance, this provision covers the names of wines included in reference materials
(encyclopedias, etc.) as those not connected with the place of origin (e.g. port).
Question 82
Please clarify whether Article 39 (2) applies to WTO nationals.WT/ACC/KAZ/37/Add.3
Page 59
Answer:
Provisions of Paragraph 2 Article 39 of the Law extend to citizens of other WTO members, as
covers all interested parties.  Furthermore, under Article 48 of the Law, foreign individuals and legal
entities, as well as stateless individuals shall have the same rights and responsibilities, as individuals
and legal entities of the Republic of Kazakhstan, unless subject to other provisions of the legislationof the Republic of Kazakhstan.
Question 83
Please explain more in details the provisions of Article 34 of the Law.  The registration would
have an effect without time-limit, but the term of the right to use the Appellation of Origin shall
be ten years, please clarify.  Please also specify whether non-use of a foreign registered
Appellation of Origin may lead to its revocation.
Answer:
An appellation of origin shall be registered upon receipt of an application specifying the
appellation of origin in question submitted by its first user.  It shall be entered in the State Register,
and be of unlimited duration provided that goods or services produced in the specified geographic
locality retain their specific qualities.  Under Paragraphs 2, 3 Article 34 of the Law, all lawful users of
the appellation of origin shall have the right to use it for a period of ten years following submission ofan application subject to subsequent renewal provided that goods or services covered by the
appellation of origin retain their specific qualities.
Registration of an appellation of origin or right to use the appellation of origin may be
cancelled or invalidated on grounds specified in Article 40 of the Law, which includes their
exhaustive list.
Question 84
Please specify where the Law foresees in the poss ibility of judicial review of final administrative
decisions.
Answer:
Under Paragraph 3 Article 41 of the Law, the applying owner of a trademark or the right to
use an appellation of origin, shall have the right to appeal the decision of the Board of Appeal in the
court of law within a term of 6 month following receipt of its decision.
Question 85
Please explain in detail the administrative and judicial enforcement mechanisms of Trademarks
and of Appellations of Origin.
Answer:
The legislation of the Republic of Kazakhstan provides for protection of intellectual property
rights, including trademarks and appellations of origin, under administrative, civil, and criminal laws.
In case of a discovered violation, the owner of the right shall protect it in one of the ways, described
below.  This provision implements requirements of the TRIPS Agreement.WT/ACC/KAZ/37/Add.3
Page 60
Protection against violation of or opposition to rights to trademarks and use of appellations of
origin provided under administrative laws may be reduced to the following options.  The party
involved may apply to:
- bodies authorized to perform registration of intellectual property rights; or
- bodies of general administrative jurisdiction.
To apply to the bodies authorized to perform re gistration of intellectual property rights, the
party involved may file an objection with the Board of Appeal of the Committee on Intellectual
Property Rights of the Ministry of Justice of th e Republic of Kazakhstan (hereafter – the Board of
Appeal).  The Board of Appeal has been established by the Order of the Chairman of the Committee
on Intellectual Property Rights of the Ministry of Justice of the Republic of Kazakhstan No. 28a of
19 March 2002 to perform initial consideration of cases in the sphere of industrial property.  The
Board of Appeal may receive objections, specified in Paragraph 3 of the Rules for Filing andConsideration by the Board of Appeal of Objections Relating to Patenting and Registration of
Industrial Property, approved by the Order of the Chairman of the Committee No. 69 of
1 November 2001.  Decisions of the Board may be appealed in the court of law.
In pursuance of Articles 538, 551 of the Code of the Republic of Kazakhstan "On
Administrative Offences" of 30 January 2001, officials of bodies on intellectual property rights shallconsider cases and impose administrative sanctions for violations, stipulated in Article 145 "Illicit Use
of Trademarks, Service Marks, Appellations of Origin or Brand Names without Consent of their
Owners".
Bodies of general administrative jurisdiction may take steps to enforce rights and suppress all
instances of violation through the Customs Control Agency of the Republic of Kazakhstan, and theAgency of the Republic of Kazakhstan for Regulation of Natural Monopolies and Protection of
Competition.
In general, intellectual property rights are protected by the civil legislation in the course of
common court procedures (procedures initiated in the form of a lawsuit).
Criminal liability is stipulated in Article 184, Infringement of Copyright, and Article 199,
Illicit Use of Trademarks of the Criminal Code of the Republic of Kazakhstan of 16 July 1997.
All legislative acts regulating relations in the sphere of intellectual property include clauses
stipulating that participants of these relations may protect their rights in the court of law.
(e) Patents
Question 86
Paris Convention Article 3 requires that nationals of non-Member countries having domiciles or
"real and effective industrial or commercial establishments" in a Member country be treated asnationals of a Member country.  Kazakhsta n's response, in WT/ACC/KAZ/24, focused on
"stateless" individuals and states that such individuals enjoy the same rights relating to
protection of industrial property," unless it contradicts the Laws of the Republic of
Kazakhstan.
Is this the case as well for persons that are nationals of a non-Member country and are not
"stateless" individuals.
Are there any provisions of law in Kazakhstan that  provide that such persons will not enjoy the
same rights, as related to protection of industrial property, as nationals of Kazakhstan?WT/ACC/KAZ/37/Add.3
Page 61
Article 6 of the Kazakh Patent Law excludes "proposals contradicting with public interests,
principles of humanity, and morality" from being inventions.  It is not clear whether this is
consistent with Article 27.2 which allows for exclusions for inventions for which the prevention
of "commercial exploitation of which is necessary to protect order public or morality".  The
current language appears to be broader than provided for in TRIPS Article 27.2.
What is extent of this exclusion?  How does it comply with the exception allowed for under the
TRIPS Agreement?
In addition, it is not clear whether the Kazakh law is compliant with the proviso of TRIPS
Article 27 that "such exclusion is not made merely because the exploitation of the invention is
prohibited by their Kazakh law".  Please explain.
Answer:
Under Paragraph 4 Article 12 of the Constituti on of the Republic of Kazakhstan, foreign and
stateless individuals shall have the same rights and freedoms and fulfill the same responsibilities as
those set for citizens of the Republic of Kazakhstan.
Under the Statutory Order of the President of the Republic of Kazakhstan of 19 June 1995
"On Legal Status of Foreign Citizens in the Republic of Kazakhstan", stateless individuals are natural
persons, who do not have the citizenship of the Republic of Kazakhstan and cannot present evidenceof their status of citizens of any other country.
Under Paragraph 2 Article 38 of the Patent Law of the Republic of Kazakhstan of
16 July 1999, stateless individuals residing in the Republic of Kazakhstan shall enjoy the same rights
stipulated by the Law and other legislative acts to the protection of industrial property subject matter,
as natural persons and legal entities of the Republic of Kazakhstan, unless there are provisions to thecontrary in the Law and other acts of the national legislation of the Republic of Kazakhstan.
The legislation of the Republic of Kazakhstan on protection of rights to industrial property
does not contain provisions, denying stateless individuals the same rights to protection of the
industrial property subject matter, as those enjoyed by citizens of the Republic of Kazakhstan.
Provisions of Sub-paragraph 8 Paragraph 3 Article 6 of the Law of the Republic of
Kazakhstan of 16 July 1999 "The Patent Law of the Republic of Kazakhstan" implement Article 27.2
of the TRIPS Agreement.
Also, it should be noted that Paragraph 3 Article 4 of the Constitution of the Republic of
Kazakhstan stipulate that international agreements, ratified by the Republic of Kazakhstan, shall have
priority over the national legislation and shall be applied directly.
Question 87
The following questions refer to the "Patent Law of the Republic of Kazakhstan" 428-I LRK, of
16 July 1999:
On what grounds can the 20-years patent term be extended as provided for under Article 5.3?
Can compulsory licenses be granted on other grounds than those mentioned under Articles 11.4
and 11.5?WT/ACC/KAZ/37/Add.3
Page 62
Answer:
The Patent Law of the Republic of Kazakhstan is in line with all requirements set in TRIPS,
Articles 25 through 34.
Under Paragraph 3 Article 5 of the Patent Law, a patent holder shall apply for patent renewal,
which may be granted for a period of up to five years by a decision of the competent body;
Article 11 of the Patent Law contains an exhaustive list of reasons for obligatory licensing of
the use of inventions, as well as other cases where inventions are used without authorization of patent
holders, specified in accordance with Article 31 of TRIPS.
(c) Geographical indications
Question 88
According to your legislation on Trademarks, Service Marks and Names of Places of Origin
mineral waters are granted the same level of protection as wines or strong alcoholic drinks (seeWT/ACC/KAZ/34 page 4).  Please explain if other products are granted the same kind of
protection as wines or strong alcoholic drinks.  If not, please explain what level of protection
applies in respect of these other products.
Answer:
Registration of mineral water as a trademark is provided with the normal level of protection,
i.e. its registration is subject to the same procedures applied to other products.  Paragraph 3 Article 37
of the Law of the Republic of Kazakhstan "On Trademarks, Service Marks, and Appellations of
Origin" of 26 July 1999 (hereafter – the Law on Trademarks) denies registration of appellations of
origin containing or consisting of geographical indications, identifying mineral water, wines or strong
alcoholic beverages, that indicate or suggest that the products originate in a geographical area otherthan the true place of origin even when the true place of origin is included or in cases of use of
translated designations or designations with the following prefixed phrases:  "à la", "in the style of",
etc.  The Law on Trademarks does not specify a list of products that may be registered as appellations
of origin.  Consequently, other products are granted the same level of protection as wines, mineral
water, and strong alcoholic beverages.
(e) Patents
Question 89
Your law of Protection of Selective Breeding Achievements provides legal protection for new
varieties of plants and new breeds of animals (see WT/ACC/KAZ/34 page 2).  Please explain in
detail how are the latter protected.  Please indicate whether any exclusion from this protection
applies and if yes, please specify what these exclusions are.
On page 1 of document WT/ACC/KAZ/26 Kazakhs tan mentions that "the new Patent Law
specifies the extended list of manners to protect patent holders' rights, and in particular
provides for the opportunity to recover income, which has been gained by an infringer of a
safeguard document, instead of indemnification, and provides for payment of the compensation
by the infringer of the safeguard document in the amount of from 10,000 to 50,000 monthly
evaluation indices, established by the legislation, instead of indemnification or recovering ofincome".  Please explain in detail what does this provision of your Patent law exactly mean and
how does it comply with Article 28, 39 and 41 TRIPS.WT/ACC/KAZ/37/Add.3
Page 63
Answer:
Protection of new types of plants and breeds of animals in the Republic of Kazakhstan is
based on the Civil Code of the Republic of Kazakhstan (hereafter – the CC of the RK), and the Law of
the Republic of Kazakhstan of 13 July 1999 "On Protection of Selection Achievements" (hereafter –
the Law).  The Law implements requirements of Article 27(3)(b) of the TRIPS Agreement, under
which WTO members shall ensure protection of plant varieties either by patents or by an efficient
independent single system or by a combination thereof.    
Under the above legislative acts, "a selection achievement" is  a new patented plant variety or
animal breed resulting from creative activities of a person.
A selection achievement in plant cultivation shall be a plant variety produced through
artificial means or as a result of a selection process, and having one or more characteristics,
distinguishing it from existing plant varieties.  A selection achievement in animal husbandry shall be anew breed, i.e. a homogenous group of animals of  common origin, produced by a person and having
genealogical structure and characteristics, which allow to differentiate between this breed and other
breeds of the same species, and are sufficient to ensure its propagation as a new breed.
According to the current legislation, protection of selection achievements in the Republic of
Kazakhstan is performed under the national patent system, based on the International Convention forthe Protection of New Varieties of Plants.
Under Article 3 of the Law, rights to a selection achievement shall be protected by the laws of
the Republic of Kazakhstan and certified by a patent.  The patent shall certify the exclusive right of
the patent owner to use the selection achievement, the priority thereof, as well as the authorship of the
breeder.  
The patent for a plant variety shall be valid for 25 years from the date of submission of an
application to the Kazpatent. For animal breeds the said period shall be 30 years.  For grapevines,
ornamental, fruit and forest trees, including rootstocks thereof, the said period shall be 35 years from
the date of submission of an application to the Kazpatent.  At the request of the patent owner,
Kazpatent shall extend the term of the pate nt for a tern of no more than ten years.
The right to file a patent application shall belong to the breeder or his successor in title.  The
patent  application for a selection achievement shall be filed with the responsible state body.
A patent application may be filed by several applicants if the selection achievement has been
made by a team of breeders or if applicants are successors to the title of the authors.
Under Article 9 of the Law, in the period between the date of publication of the particulars of
the patent application for a selection achievement and the date when the patent is issued, the selection
achievement shall be granted provisional legal protection.
After the patent has been granted, the patent owner shall be entitled to compensation for
damages from any person who, during the period of provisional legal protection, performed any
actions stipulated in Paragraph 1 Article 14 of th e Law without  authorization of the patent owner.
In the period covered by provisional legal protection of the selection achievement, the
applicant shall have the right to sell or otherwise dispose of seeds and pedigree stock for scientificpurposes only or where such actions are performed in connection with the transfer of rights to the
selection achievement, or where production of seeds or pedigree stock is performed at the behest of
the applicant for the purpose of stocking.WT/ACC/KAZ/37/Add.3
Page 64
Where the applicant or any other person acting on his behalf fails to comply with the above
conditions, the provisional legal protection shall be deemed as having been never granted.
Article 14 of the Law contains a list of acts, codified as exclusive rights of the patent owner,
the use of which shall require his prior consent:
- production or reproduction (proliferation);
- conditioning of seeds for the purpose of propagation;
- offering for sale;
- selling or other marketing activities;
- exporting from the Republic of Kazakhstan;
- importing to the Republic of Kazakhstan; and
- stocking for any of the aforementioned purposes.
Article 15 of the Law determines liabilities ensuing from infringement of the rights of the
patent owner.  According to provisions of this Article, any natural person or legal entity using a
variety or breed in a manner contrary to the provisions of the Law shall be deemed to be infringing the
rights of the patent owner.   
Any natural person or legal entity who:
- discloses, without the authorization of the patent owner, information constituting a
commercial secret relating to any variety or breed for which an application has been
filed;
- uses for the produced and sold protected variety of plants or pedigree animals a
denomination that is different from the registered denomination of the variety or
breed;
- uses for the produced and sold protected variety of plants or pedigree animals a
denomination identical or similar  to a re gistered denomination where such use would
result in a likelihood of confusion;
- uses for the produced and/or sold varieties of seeds or pedigree stock a denomination
of a registered selection achievement where the said variety  or pedigree stock do notconstitute a part of  the registered selection achievement; and
- furnishes documents containing fraudulent  information on the selection achievement,
shall be deemed to be infringing the rights of the patent owner.
The owner of the patent shall be compensated by the infringer for the illicit use of the
selection achievement, as well as for any other damage incurred in the result of infringement of the
Law in accordance with the current legislation.
An exclusive or non-exclusive license holder may also initiate legal proceedings against the
infringer, based on a written authorization of the pa tent owner or a power of attorney issued by him.
Damages may be claimed for a period starting on the date an infringement has been
committed and throughout the entire period of the infringement of the patent.
Under Article 18 of the Law, any person who is not the patent owner shall have the right to
use the selection achievement only upon authorization of the patent owner (granted on the basis of alicensing agreement).
Under the current legislation of the Republic of Kazakhstan, disputes arising from violations
of legislation regulating patents granted for a variety of plants or breeds of animals, shall be settled in
courts of law, including:WT/ACC/KAZ/37/Add.3
Page 65
- authorship of a variety or breed;
- identification of the patent owner;
- infringements of the exclusive right to use the selection achievement and of other
economic rights of the patent owner;
- conclusion and execution of licensing agreements for the use of the selection
achievement;
- payment of compensations under this Law;
- remunerations payable to the author under the contract;
- grant of a patent;
- grant of a compulsory license; and
- other disputes arising from the protection of rights stipulated by a patent.
Under Article 15 of the Law of the Republic of Kazakhstan of 16 July 1999 "Patent Law of
the Republic of Kazakhstan" (hereafter – the Patent Law), a patent owner shall have the right to
require that:
- the infringement of the market authorization cease;
- the infringer compensate the owner the da mages sustained, including moral damage;
- the infringer pay the owner the amount of profit s derived from the unauthorized use of the
protected industrial property subject matter, in place of compensation for damage
sustained;
- the infringer pay the owner a compensation of 10,000 to 50,000 monthly calculation
indexes in accordance with the current legislation, in place of compensation for damages
sustained or payment of the amount of profits;
- the infringing products that have been commercialized or stocked for commercial
purposes as well as materials and implements that have been especially used in the
manufacture of infringing products be withdrawn from sale in favor of the aggrieved
patent owner; and
- information on the infringement, including  detailed information  on the owner of the
infringed right, be published as a mandatory requirement.
Under Sub-Paragraph 4 Paragraph 2 Article 15 of the Patent Law, the aggrieved patent owner
may require that the infringer pay the owner a compensation in place of indemnity for damages
sustained or repayment of the amount of received profits.  In 2002, in accordance with the Law of the
Republic of Kazakhstan of 15 December 2001 "On Republican Budget for 2002" the value of a
monthly calculation index was set at KZT 823.  Hence,  the amount of compensation could be as large
as KZT 41,150,000, while the actual size of compensation required in place of indemnity orrepayment of received profits  is determined on a case-by-case basis by a court decision.
With respect to forms of protection of rights of patent owners and conformity of the current
patent legislation with provisions of Articles 28, 39, and 41 of the TRIPS Agreement, please note the
following:
Under Article 992 of the CC of the RK, a patent owner shall have exclusive rights to use
patented inventions, models, industrial designs at his own discretion, including the right to produce
them employing patented know-how, use patented  technological processes for own production, sell
products containing or consisting of patented know- how or offer them for sale,  and import products.
Any other party shall be denied the right to use patented inventions, models, industrial
designs without consent of the patent owner, except for cases where such use is not deemed by the CCof the RK and other legislative acts  to be infringing the rights of a patent owner.
The following acts shall be deemed as infringing exclusive rights of a patent owner:
unauthorized manufacturing, utilization, importation, stocking, offering for sale, sale, and any otherWT/ACC/KAZ/37/Add.3
Page 66
form of distribution for commercial purposes of products manufactured with recourse to patented
inventions, models, industrial designs, and technologies, or distribution for commercial purposes or
stocking for subsequent distribution of products manufactured be means of direct application of
patented technologies.
A new product shall be deemed to have been manufactured by a patented process unless there
is evidence to the contrary.
Also, in accordance with the current patent legislation (Article 1000 of the CC of the RK,
Article II of the Patent Law), a patent owner may transfer the right to the granted safeguard document
to any natural person or legal entity.  A transfer agreement shall be subject to registration with the
authorized body.
A safeguard document for industrial property subject matter and/or the right to obtain a
safeguard document  may be bequeathed, inherited, or acquired by succession.
Under Articles 1001, 1002 of the CC of the RK and Article 14 of the Patent Law, a patent
owner may conclude licensing agreements, which provision of the current patent legislation
implements requirements of Article 28 of the TRIPS Agreement.
In respect of Article 39 of the TRIPS Agreement, it should be noted that under Article 34 of
the Patent Law, any party infringing rights of authors, applicants, and patent owners; usurpingauthorship; acquiring the status of author by coerci on; disclosing without consent of the patent owner
or the applicant information on industrial property subject matter prior to its official publication; using
protected industrial property subject matter in a manner contrary to the provisions of this Law, or
violating patenting procedures set for industrial property subject matter  in foreign countries,  shall be
liable to sanctions under the legislation of the Republic of Kazakhstan.
With respect to Article 42 of TRIPS, the Committee would like to point out that under Article
32 of the Law the Board of Appeal of the Committee shall be the competent authority entrusted with
extra-judicial consideration of disputes arising from activities of the responsible state body relating to
registration and processing of applications.
Under Article 33, the following disputes shall be settled in the court of law:
- authorship of industrial property subject matter;
- legality of the grant of market authorization;
- identification of the patent owner;
- grant of a compulsory license;
- infringements of the exclusive right to use the protected industrial property subject matter
and of other economic rights of the patent owner;
- conclusion and execution of license contracts for the use of the protected industrial
property subject matter;
- rights of the prior user and the interim user;
- remuneration payable to the author by the employer under Article 10(4) of this Law;
- payment of compensation under this Law; and
- other disputes on protection of rights arising from market authorization.
(h) Requirements on undisclosed information
Question 90
Please explain in detail if your legislation ensures that undisclosed test or other data submitted
by an applicant to the responsible State agency in the procedure for market authorization of aWT/ACC/KAZ/37/Add.3
Page 67
pharmaceutical or of an agricultural chemical product is protected against unfair commercial
use by a competitor by prohibiting a second applicant from relying on, or from referring to the
original data of the first applicant, when applyi ng subsequently for market authorization for his
own product.  If no such provision exists under current legislation, please explain in detail how
does your country plan to implement this obligation.  Does your legislation provide forexceptions to this obligation?  If yes, under wh at conditions would such exceptions apply?  Does
your legislation set a specific term of protection for undisclosed test or other data of the first
applicant?
Please explain to what extent if any does your draft Law on Commercial Secrets, addresses the
issues raised under Questions 3 and 4.
Answer:
Under Article 34 of the Patent Law, disclosure of information on industrial property subject
matter without the authorization of the author or the applicant prior to its publication shall be liable to
sanctions stipulated in the legislation of the Republic of Kazakhstan.
Also, under Paragraph 1 of Article 15, any natural person or legal entity shall be deemed to be
infringing the exclusive rights of the patent owner if they disclose information on the type and brand
constituting a commercial secret without authorization of the patent owner.  
The responsible state body shall preserve confidentiality of all information submitted by
applicants in the course of processing of their applications for market authorization prior to official
publication of the results.
Thus, both the Patent Law and the Law of the Republic of Kazakhstan "On Protection of
Selection Achievements" guarantee non-disclosure of the results of tests or other data submitted by anapplicant to the responsible state body for mark et authorization of chemical, pharmaceutical or
agricultural products.
4. Enforcement
(d) Any special border measures
Question 91The Law of the Republic of Kazakhstan "On Customs Matters in the republic of Kazakhstan"
adopted in 1999 includes Article 216 (1-5) stipul ating restrictions on importation into the
Republic of Kazakhstan and exportation from the republic of Kazakhstan of goods
incorporating objects of intellectual property (see WT/ACC/KAZ/24, page 30).  Please explain
in detail to what extent do the procedural rule s foreseen in the case of importation of alleged
infringing products differ from the ones foreseen  in the case of exportation of alleged infringing
products.
Answer:
The customs legislation of the Republic of Kazakhstan provides for import to and export from
the Republic of Kazakhstan of goods containing or consisting of works of intellectual property. This
provision is stipulated in Articles 218-1 – 281-5 of the Law of the Republic of Kazakhstan "On
Customs in the Republic of Kazakhstan" (hereafter – the Law).  The above articles of the Law covergoods entered in the List of Goods Containing Intellectual Property Subject Matter of the Customs
Control Agency of the Republic of Kazakhstan and do not distinguish between  import or export
thereof.  This norm implements the requirements of the TRIPS Agreement, in particular, of Article 51.WT/ACC/KAZ/37/Add.3
Page 68
Additionally, the draft Customs Code of the Republic of Kazakhstan includes a section of 12
Articles on protection of intellectual property rights by customs bodies.
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH
THIRD COUNTRIES
Question 92What portion of Kazakhstan's current imports and exports are traded within the Customs
Union, and within the CIS?
Answer:
The table below shows the shares of import and export in the trade volumes of the Republic
of Kazakhstan with other members of the Customs Union and the CIS in 2002.
Turnover % Exports % Imports %
Total 16,199,620.8 100 9,709,127.1 100 6,490,493.7 100
CIS 5,253,820.8 32.4 2,223,258.3 22,9 3,030,562.5 46.7
EurAzEs 4,319,066.5 26.7 1,689,600 17,4 2,629,466.5 40.5WT/ACC/KAZ/37/Add.3
Page 69
ANNEX 1
On the Schedule of Non-Privatisable State Property
Decree of the President of the Republic of  Kazakhstan No. 422 of 28 July 2000.  (SAPP of
the Republic of Kazakhstan, 2000, No. 29, page 354)
In order to ensure state regulation of activities of organizations and facilities of particular
significance for the strategic interests of the Republic of Kazakhstan, I decree hereby that:
- the Government of the Republic of Kazakhstan:
- classify state property included in the attached Schedule as not subject to privatization
and its preliminary stages;
- change and amend the Schedule only upon approval of the President of the Republic of
Kazakhstan;
- form a supplementary Schedule of public organizations, state-owned shares of joint stock
companies, and businesses, application of state regulation mechanisms to which is
strategically necessary for the national interests of the Republic of Kazakhstan, to be
retained for a specific period of time in the form of state property.
The Decree of the President of the Republic of Kazakhstan No. 2261 of 4 May 1995 "On
High Priority Measures for the Development of Mass Sports in the Republic of Kazakhstan" berepealed.
This Decree come into force on the day of signing.
- Annex to the Decree of the President of the Republic of Kazakhstan No. 422 of
28 July 2000
Schedule of Property Exempt from Privatization and its Preliminary StagesLand (excluding land that may be privately owned under conditions and within limits set by
the legislation of the Republic of Kazakhstan), subsurface and  water resources, flora and fauna.
Natural zones under special protection.
Military organizations and sites, including prop erty thereof, required to ensure  the national
security of the Republic of Kazakhstan.
Main railroads, Republican public highways, forming a part of the network of state
international  railroad routes; and those designed for defense purposes, including accompanying
engineering structures; navigable waterways, lighthouses, navigation devices and seamarks,
regulating navigation and ensuring its safety;
Main oil and gas pipelines, and interregional electric networks of 220, 500, and 1,150 kW.
Water reservoirs and hydraulic works, water control pivots, dams and barrages on water
sources.
First-aid medical organizations operating in ru ral areas, specialized medical centers (blood
banks, maternity welfare centers, centers of radiological medicine, oncology centres; tuberculosis,
HIV and AIDS centers; STD centers; mental hospitals), as well as organizations and centers of
monopolistic standing in a specific area.WT/ACC/KAZ/37/Add.3
Page 70
Social protection services, children's homes, orphanages, nursing homes, rest homes,
hospitals and health resorts for the disabled, veterans of the World War II and individuals of the same
status, children, and the aged.
Public organizations of secondary education, implementing the constitutional rights of every
citizen of the Republic of Kazakhstan to education.
Historic and cultural sites, protected by the State.WT/ACC/KAZ/37/Add.3
Page 71
ANNEX 2
(а) removal of earlier regulations
Repealed titles and titles to be repealedNew Titles Enacted to Replace Removed Earlier
Regulations/Titles Submitted for Approval
The Statutory Order of the President of theRepublic of Kazakhstan No .2376 of 25 July 1995"On Veterinary".The Law of the Republic of Kazakhstan "On
Veterinary", adopted by the Decree of the President ofthe Republic of Kazakhstan No. 339-II of 10 July 2002.
The Resolution of the Government of the Republicof Kazakhstan No. 1205 of 2 October 1996 "On
Adoption of Normative Legislative Acts on
Veterinary".
The Schedule of Freights Subject to ObligatoryState Veterinary Control of the Republic ofKazakhstan if Imported, Exported, in Transit, orMoved Within the Country (adopted by Order ofthe Chief State Veterinary Expert of the Republic of
Kazakhstan No. 08-1/404 of 21 March 2002).
The Provision on Procedures for Alienation andWithdrawal of Animals, Animal Products, and Raw
Materials of Animal Origin (adopted by the Decreeof the Minister of Agriculture of the Republic ofKazakhstan No. 27 of 12 March 1997).The draft Resolution of the Government of the
Republic of Kazakhstan "On Adoption of Normative
Legislative Acts on Veterinary":
- the Provision on the State Veterinary Control in
the Republic of Kazakhstan;
- the List of Dangerous Animal Diseases,
Prevention, Diagnostics, and Elimination ofWhich Shall Be Funded from the Republican
Budget;
- the Rules for Mandatory Withdrawal and
Destruction, or Mandatory Decontamination(Disinfection) and Processing, withoutWithdrawal, of Animals, Animal Products, andRaw Materials of Animal Origin, Constituting a
Threat for Human and Animal Health;
- the List of Dangerous Animal Diseases, Requiring
Mandatory Withdrawal and Destruction ofAnimals, Animal Products, and Raw Materials ofAnimal Origin, Constituting a Threat for Human
and Animal Health;
- the Rules and Conditions for Compensation of
Damages Incurred as a Result of Withdrawal andDestruction of Animals, Animal Products, andRaw Materials of Animal Origin, Constituting aThreat for Human and Animal Health;
- the Rules for the State Veterinary Control Applied
to Freights Subject to the State Veterinary ControlMoved across the border of the Republic ofKazakhstan; and
- the Rules for the Establishment of Border
Veterinary Checkpoints, Operating on the Border
and in customs offices (confirming authorization
for freight movement across the national border) –submitted for approval.WT/ACC/KAZ/37/Add.3
Page 72
Cancelled titles and titles to be cancelledNew Titles Enacted to Replace Removed Earlier
Regulations/Titles Submitted for Approval
The Provision on the Issue of Veterinary Certificatesand Notes for Freights of Animal Products Subject to
the State Veterinary Control of the Republic of
Kazakhstan (adopted by the Order of the Chief StateVeterinary Expert of the Republic of Kazakhstan of18 June 1998).The Rule for the Issue of Veterinary Acts (Sanitary
Report, Veterinary Declaration, Veterinary
Certificate, Veterinary Reference) by Veterinary
Inspectors for the Subjects of State VeterinaryControl. Adopted by  the Decree of the Minister ofAgriculture of the Republic of Kazakhstan No. 372 of15 November 2002.
The Resolution of the State Committee of the Republicof Kazakhstan on Pricing and Anti-Monopoly Policies
No. 18 of 31 March 1997 "On Adoption of Prices on
Services, Supplied by Veterinary Control Bodies,Operating on the Border and in Transportation Means"Charges for services of veterinary control bodiesoperating on the border and in transportation means
have been removed.
The Provision on Procedures for Imposing Penalties forViolations of the Law of the Republic of Kazakhstan
"On Veterinary" (adopted by the Decree of the Ministerof Agriculture of the Republic of Kazakhstan No. 28 of12 March 1997).Article 310 and 559 of the Code of the Republic of
Kazakhstan on Administrative Offences No. 155-II of
30 January 2001.
(b) development of new regulations
New TitlesNew Titles Under Development
(Scheduled for Development)
The Standard Provision on the Oblast Veterinary
Department, Almaty and Astana, the Decree of theMinister of Agriculture of the Republic of Kazakhstan
No. 283 of 16 September 2002.The draft Rule for the Identification of Livestock for
Purposes of Effecting Control over VeterinaryMeasures on Prevention and Diagnostics of Animal
Diseases.
The Standard Provision on the Rayon (City) Veterinary
Department, the Decree of the Minister of Agricultureof the Republic of Kazakhstan No. 283 of16 September 2002.The draft Rule for the Verification of Conformity of
Veterinary Drugs, Fodder, and Feed Additives,Containing Antibiotics, Hormones, and BiologicalStimulants, with the Veterinary Norms.
The Provision on the Oblast Chief State VeterinaryInspector (Almaty and Astana), the  Decree of theMinister of Agriculture of the Republic of Kazakhstan
No. 283 of 16 September 2002.The draft Rule for Transportation (Movement) of
Freights Subject to the State Veterinary Control inthe Republic of Kazakhstan.
The Provision on the Rayon (City) Chief State
Veterinary Inspector and his Deputy, the Decree of the
Minister of Agriculture of the Republic of KazakhstanNo. 283 of 16 September 2002.The draft Rule for the State Veterinary Control and
Verification of Conformity of Animals, Animal
Products, and Raw Materials of Animal Origin,Originating in Organizations, Engaged in Production,Slaughter, Storage, and Processing of Animals,Animal Products, and Raw Materials of AnimalOrigin, with the Veterinary Norms.
The Provision on the State Veterinary Inspector of a
Rural District, the Decree of the Minister of
Agriculture of the Republic of Kazakhstan No. 283 of16 September 2002.The draft Rule for the Identification of Markets,
Organizations Engaged in Production, Slaughter,
Storage, and Processing of Animals, AnimalProducts, and Raw Materials of Animal Origin,Veterinary Drugs, Fodder, and Feed Additives.
The Provision on the State Veterinary Inspector of aMarket, the Decree of the Minister of Agriculture ofthe Republic of Kazakhstan No. 283 of
16 September 2002.Draft Instructions on Occupational Health and Safety
in Veterinary.WT/ACC/KAZ/37/Add.3
Page 73
New TitlesNew Titles Under Development
(Scheduled for Development)
The Provision on the Chief State Veterinary Inspector,Operating on the Border and in Transportation Means,the Decree of the Minister of Agriculture of theRepublic of Kazakhstan No. 283 of16 September 2002.Draft Instructions for the Control of Infectious
Diseases of Livestock.50+ titles.
The Rules for the Veterinary and Sanitary Inspections
in the Markets, adopted by the Decree of the Minister
of Agriculture of the Republic of Kazakhstan No. 351by 30 September 2002.The Draft Instruction on Veterinary Accounting and
Reporting.
The Rules for the Veterinary Inspection of Animals for
Slaughter and Post-Slaughter Veterinary and SanitaryTesting of Carcasses and Organs, and their SanitaryAssessment, adopted by the Decree of the Minister ofAgriculture of the Republic of Kazakhstan No. 351 by
30 September 2002.
Standard Tests Used in the Veterinary and Sanitary
Examination, adopted by the Decree of the Minister ofAgriculture of the Republic of Kazakhstan No. 351 by30 September 2002.
The Instruction on Meat Marking, approved by theOrder of the Chief State Veterinary Inspector of theRepublic of Kazakhstan No. 11-1/571 of
19 August 1999.
The Rules for the Issue by Veterinary Centers ofInspection Certificates Based on the Result of
Diagnostics or Veterinary and Sanitary Examination ofthe Subjects of State Veterinary Control, adopted bythe Decree of the Minister of Agriculture of theRepublic of Kazakhstan No. 399 of 4 December 2002.
The Rules for Drafting and Issue of Orders byVeterinary Inspectors, adopted by the Decree of the
Minister of Agriculture of the Republic of Kazakhstan
No. 372 of 15 November 2002.
The Nomenclature of Basic Quarantinable Products,Subject to Phytosanitary Control Under PlantQuarantine Procedures (adopted by the Decree of theMinister of Agriculture of the Republic of KazakhstanNo. 166 of 30 May 2002).
The List of Infectious Diseases Subject to Quarantine,
adopted by the Decree of the Minister of Agriculture of
the Republic of Kazakhstan No. 369 of14 November 2002.
The List of Infectious Diseases Subject to RestrictiveMeasures, adopted by the Decree of the Minister ofAgriculture of the Republic of Kazakhstan No. 369 of14 November 2002.
The List of Animal Diseases subject to MandatoryDecontamination (Disinfection) and Processing,
without Withdrawal, of Animals, Animal Products,
Raw Materials of Animal Origin, Fodder, and FeedAdditives, Veterinary Drugs, Constituting a Threat forHuman and Animal Health, adopted by the Decree ofthe Minister of Agriculture of the Republic ofKazakhstan No. 369 of 14 November 2002.WT/ACC/KAZ/37/Add.3
Page 74
New TitlesNew Titles Under Development
(Scheduled for Development)
The Rules for Verification of Conformity of Series(Lots) of Veterinary Drugs with the Requirements Setfor Veterinary Drugs, adopted by the Decree of theMinister of Agriculture of the Republic of KazakhstanNo. 415 of 13 December 2002.
The Rules for Organization and Implementation of
Veterinary Actions, Obligatory for Natural Persons and
Legal Entities, adopted by the Decree of the Ministerof Agriculture of the Republic of Kazakhstan No. 367of 14 November 2002.
The Veterinary Norms for Premises, and ProcessingFacilities, Required for the Veterinary and SanitaryExamination of Animal Products and Raw Materials ofAnimal Origin, adopted by the Decree of the Minister
of Agriculture of the Republic of Kazakhstan No. 05 of
9 January 2003.
The Rules for Coordination of Scientific Documents,Submitted by Natural Persons and Legal Entities, onImproved Veterinary Drugs, adopted by the Decree ofthe Minister of Agriculture of the Republic ofKazakhstan No. 1 of 7 January 2003.
The Provision on State Inspectors on Plant Quarantine
(adopted by the Decree of the Minister of Agriculture
of the Republic of Kazakhstan No. 56 of4 February 2003).
Titles Titles to Be Amended
The Law of the Republic of Kazakhstan ‘On PlantQuarantine’ No.344-I of February 11, 1999 (amendedunder the Law of the Republic of KazakhstanNo. 293-II of 18 February 2002).The Provision on the Procedures for Completion of
Veterinary Certificates Required for Transportationof Controlled Freights, adopted by the Order of theChief State Veterinary Inspector of the Republic ofKazakhstan No. 08-1/784 of 14 August 2000).
The Veterinary and Sanitary Requirements Applied
to Subjects of the State Control imported to the
Republic of Kazakhstan.  Total:  23 titles.
The Rules for the Protection of the Republic ofKazakhstan from Quarantine Objects No. 1960 of30 December 2000.
The Provisions on Branches Effecting PhytosanitaryControl Under Plant Quarantine Procedures (adoptedby the Decree of the Minister of Agriculture of theRepublic of Kazakhstan No. 88 of 31 March 2000).WT/ACC/KAZ/37/Add.3
Page 75
ANNEX 3
Draft Law of the Republic of Kazakhstan
"On Changes and Amendments to Legislative Acts
of the Republic of Kazakhstan on Intellectual Property"
Article 1.  Changes and amendments shall be introduced to the following legislative acts of
the Republic of Kazakhstan.
The Law of the Republic of Kazakhstan of 10 June 1996 "On Copyright and Relating Rights"
shall be amended as follows:
Article 1:
- "performances" shall be removed; and
- "broadcasts" shall be replaced with "programs".
Article 2 shall read:Except as otherwise provided in this title, as used in this title, the following terms and their
variant forms mean the following:
- an "author is a natural person, whose creative effort has brought about the creation of a
work;
- a "copyright" comprises economic and moral rights of an author;
- an "adaptation of a computer program or a database" comprises changes made to a
computer program or a database with the only purpose to ensure its stable work in
combination with specific hardware, user requirements, or as a part of a higher-level
software run by the user;
- "audiovisual works" are works that consist of a series of related images which are
intrinsically intended to be shown by the use of machines or devices together with
accompanying sounds, if any. "Audiovisual works" include cinematographic works, and
all works expressed by means comparable to cinematography (TV broadcasts and video
films, fixed projections, slide shows, and the like),  regardless of the nature of the material
objects in which the works have been  initially or subsequently embodied;
- a "database" is a collection of data (entries, calculations, facts, etc.), compiled as a result
of creative efforts, organized so that its contents can easily be accessed, managed, and
updated electronically by the use of a computer.  The definition of a "database" does not
extend to client-side computer software used to access information contained in a
“database”;
- a "reproduction" is making, both directly or indirectly, of one or more permanent or
temporary copies, both complete or partial, of a work or an object covered by relatingrights in any physical form and using any methods, including reproduction of sound or
visual recordings; production of one or more 3D  copies of a 2D work, and recording of a
work or an object covered by relating rights for its temporary or permanent conservation
in an electronic medium;
- a "program decompilation" is a conversion of the executable program code (object code)
into the source code with the view to study its structure and introduce required alterations;
- a "global proliferation" is a kind of proliferation of works covered by copyright or
relating rights, which allows them to be accessed by the public from any location and at
any time, chosen at their own discretion (interactively);
- a "recording" is a fixing by technical means of sounds or images or both in a material
form that permits them to be repeatedly perceived, reproduced or communicated;WT/ACC/KAZ/37/Add.3
Page 76
- a "producer of an audiovisual work" is a natural person or legal entity, who has taken the
initiative and responsibility for producing such a work. Unless there is evidence to the
contrary, a natural person or legal entity whose name is given on the work shall be
considered the producer of that work;
- an "intellectual property" is the property that subsists in the materialized results of
creative activities;
- an "exclusive right" is the economic right enjoyed by the author or the holder of relating
rights in the exploitation of a work, performance, phonogram or program (broadcasting,
cable television) by any means he chooses during the period of time laid down by this
Law;
- "information on rights" is any information, identifying the author, work, performer,
performance, producer of a phonogram, phonogram, broadcasting or cable televisionorganization, broadcasting or cable television program, holder of any right stipulated in
this Law, or information on terms of use of the work, performance, phonogram,
broadcasting or cable television program, as well as any numbers and codes, representing
such information, in cases where any of the above accompany a copy of the work,
recorded performance, phonogram, recorded broadcasting or cable television program, orappears under general notice of a work, recorded performance, phonogram, broadcasting
or cable television program;
- a "performance" is a performance of works, phonograms, performances carried out by
acting, singing or dancing in a live show or by technical means (broadcasting, cable
television, etc.), or the showing of images of an audiovisual work, with or without sound,
in their normal sequence;
- a "performer" is an actor, singer, musician, conductor of an orchestra, dancer or any other
person who performs, sings, recites, plays a musical instrument or performs in any other
manner a literary or artistic work (including folklore works);
- "program or database modifications" are any changes not covered by the definition of the
adaptation above;
- "folklore works" are works, incorporating charac teristic elements of the traditional artistic
culture (fairy tales, folk poetry, folk songs,  instrumental folk music, folk dances and
plays, folk costumes, etc.);
- an "infringing copy of a copyrighted work or work covered by relating rights" is any copy
of the work, recorded performance, phonogram, broadcasting or cable television program,
manufacturing, distribution, and any other form of use, which infringes the copyright andrelating rights under this Law or provisions of international agreements ratified by the
Republic of Kazakhstan.  This definition also extends to any copyrighted works or works
covered by relating rights that have information on rights deleted or changed without the
consent of the holder of the copyright or relating rights or that have been manufactured by
the illegal use of devices, allowing to override technical methods of protection;
- a "holder of rights" is any natural person or legal entity other than the author, who holds
economic rights received through:
- inheritance or succession of rights;
- conclusion of an agreement on complete or partial transfer of economic rights for the
period of protection of a copyrighted work; and
- conclusion of an agreement with the author on transfer of exclusive economic rights.
This definition also extends to:
- a producer of an audiovisual work, produ cer of a phonogram, broadcasting and cable
television organizations;
- a natural person or a legal entity who receives transferred economic rights;
- a natural person other than the author or performer, or a legal entity in cases where they
act as initial holders of economic rights;WT/ACC/KAZ/37/Add.3
Page 77
- a "disclosure of a work" is an action performed upon the author's consent which makes
the work accessible to the public for the first time by publication, public performance,
broadcasting or any other means;
- a "publication" is offering of copies of a work or a phonogram with the consent of the
author or any other holder of rights to copyrighted works and works covered by relatingrights in the amount necessary to satisfy reasonable requirements of the public, for sale,
hire or in any other form of transfer of the right of ownership or of the right to posses a
copy of a work or a phonogram;
- a "translation" is rendering of a derivative work into a language other than the language of
the original.  Translation shall be reliable.  It shall not distort either the contents or the
style of the original work;
- a "broadcasting" is communication to the public of works, performances, phonograms,
programs of broadcasting or cable distribu tion organizations (including presentation or
performance) by means of transmission by radio or television, except for cable television.
Where works, performances, phonograms or programs of broadcasting and cable
distribution organizations are broadcast by satellite, broadcasting means the acts of
receiving signals from a ground station by a satellite and retransmission of the signals bythe satellite in such a way that the works, performances, phonograms or programs of
broadcasting or cable distribution organizations can be communicated to the public,
irrespective of their being actually received by such public;
- transmission of encoded signals shall be classified as "broadcasting" in cases where the
broadcasting organization provide the public with decoding devices;
- a "program of a broadcasting or cable distribution organization" is a program created by a
broadcasting organization or a cable distribution organization itself or, on its commission
and using its funds, by another organization;
- a "remake" is the original work transformed according to rules of a different genre.  This
definition extends to adaptation, staging, and arrangement of the original work;
- a "computer program" is a set of commands in verbal, schematic or any other form, which
allows, when recorded on a compatible material carrier, a computer to fulfill a certain task
or objective.  This extends to preliminary stages, which  result in the creation of a
computer program at a later stage;
- a "derivative work" is a work based upon  one or more preexisting works;
- a "public presentation" is a presentation of the original or copy of the work in its initial
form or as a slide, snapshot, or frame, or in any other form and using any other technicaldevice (for audiovisual works, the order of presentation of separate frames may differ
from their original sequence) in places, attended by persons, other than immediate family
members or close acquaintances,
- a "public performance" is the performance of a work carried out by reciting, acting,
dancing or in any other form, including technical means (for audiovisual works,presentation of frames in their original sequence with sound) in places, attended by
persons, other than immediate family members or close acquaintances;
- a "play director" is a person, responsible for staging a play, circus, puppet, variety show
or any other type of performance;
- a "reproduction (reprographic imaging)" is a fax reproduction in one or more copies, in
whatever dimensions or form, of originals or copies of written and other graphic works by
means of a photocopier or any devices, other than those used in publishing.  Reprographic
imaging does not include storage or reproduction of such copies in electronic (including
digital), optical or any other machine-readable form;
- a "rental" is making a copy of a work or a phonogram temporarily available for direct or
indirect commercial profit;
- "communicate" means to broadcast, by wires or wireless communication devices, images
or sounds or both images and sounds of works, performances, phonograms, programs of
broadcasting or cable distribution organizations, so that images and sounds may be
perceived by persons, other than immediate family members or close acquaintances, inWT/ACC/KAZ/37/Add.3
Page 78
places remote from the point of broadcasting to an extent that unless broadcast these
images and sounds cannot be perceived.  The definition also extends to global
proliferation of works, performances, phonograms, performed in such a manner so as to
allow access of the public from any location and at any time, chosen at their discretion;
- "communicate to the public by cable" means to communicate works, phonograms,
performances,  programs of broadcasting or cable distribution organizations to the public
by means of cable, wire, optical fiber or similar means;
- a "technical means" is any device, product, or component, making an integral part of a
method, device or product, used to prevent instances of infringement of copyright and
relating rights, stipulated in this Law;
- a "statutory body" is a public body of which the tasks in relation to regulating
relationships deriving from the exercise of the rights of authors and of holders of relatingrights are defined by the legislative acts, decrees of the President of the Republic of
Kazakhstan, and resolutions of the Government of the Republic of Kazakhstan;
- a "phonogram" is any sound recording of performances, other sounds or their imitations.
This definition does not extend to recordings of sounds, accompanying audiovisual
works;
- a "copy of a work" is any copy of a work regardless of the material form in which it is
embodied;
- a "copy of a phonogram" is any copy of a phonogram on any physical medium
whatsoever, made directly or indirectly from a phonogram, and incorporating all or some
of the sounds recorded thereon.
Article 5 - paragraph 1
Sub-Paragraph 1) shall be amended to include "in the territory of the Republic of Kazakhstan"
after the work "disclosed".
Sub-Paragraph 3) shall read:
- works, whether disclosed outside of the Republic of Kazakhstan or not, but existing in
some objective form outside of the Republic of Kazakhstan, where the authors of such
works and their successors in title are citizens of the Republic of Kazakhstan or
authorized residents of the Republic of Kazakhstan.  Also, based on the above provisions
of this Article, it may be afforded to other persons in accordance with international
treaties to which the Republic of Kazakhstan is party.
The Article shall be amended to include Paragraph 4:
- A work shall be granted protection under provisions of international treaties to which the
Republic of Kazakhstan is party unless it has fallen into the public domain in the country
of origin, determined in accordance with the rules of the corresponding international
agreement signed by the Republic of Kazakhstan, following expiration of the term of
copyright, set in this country, or unless it has become part of the public domain in the
Republic of Kazakhstan following expiration of the term of copyright.
Article 6
Paragraph 3 shall read:
- Any part of a work (including its title) that meets the conditions set in paragraph (1) of
this Article and that can be used independently shall afford entitlement to copyright.
Paragraph 5 shall read:WT/ACC/KAZ/37/Add.3
Page 79
- Copyright in a work shall be independent of the ownership of the material object in which
the work is embodied.
- The transfer of the right of ownership of a material object or of the right of possession of
the material object shall not in itself imply transfer of any copyright in the work expressed
in such object, except for instances stipulated in this Law.
Article 7
Paragraph 1:
- Sub-Paragraph 1) shall be amended to include "(including computer programs and
databases)" after "works".
- Sub-Paragraph 6) the phrase "cinematographic, television and video films, slide shows
and other cinematographic and television productions" shall be removed.
Sub-Paragraph 12) shall be removed.Paragraph 2 shall read:
- Computer programs shall be protected as literary works.  The protection of computer
programs shall extend to all types of computer program (including applications and
operating systems) whatever the language and form in which they are expressed,
including the source code and the object code.
- Sub-Paragraph 1) Paragraph 3 shall be amended to include "stage productions" after
"translations".
Article 9
Paragraph 1 shall read:
- A scientific, literary or artistic work shall enjoy copyright by the mere fact of its creation.
The origin and exercise of copyright shall not require either a registration of the work or
the accomplishment of any other act or formality.
- In order to have his exclusive economic rights recognized, an author and holder of rights
may use a copyright notice, which should be placed on each copy of the work and should
consist of the following three necessary elements:
- the encircled Latin letter "C": ©;
- the name of the owner of exclusive rights; and
- the year of the first publication of the work.
- In order to attest his moral rights to an undisclosed work, an author may have them
recorded in the official registers at any time during the term of copyright protection or
corresponding agreements.  A holder of rights may do the same to attest his exclusive
economic rights to the work. Registration shall be carried out by the statutory bodyfollowing procedures set out in the regulatory texts in force.
The Article shall include Paragraph 1-1, which shall read:
- The registration of copyright in works used (designed) to distinguish between goods
(services) of one natural person or legal entity and similar goods (services) of another
natural person or legal entity shall be denied.WT/ACC/KAZ/37/Add.3
Page 80
Article 10 shall include Paragraph 3:
- Each of the joint authors shall have the right to take steps, stipulated in this Law, in his
own name, including steps taken without consent of other joint authors, to protect his
rights, unless there are provisions to the contrary set out in the agreement to which they
are party.
The title of Article 11 shall read:
- Article 11. Copyright in Composite Works.
The title of Article 12 shall read:
- Article 12. Copyright in Derivative Works.
Paragraphs 4 and 5 Article 14 shall read:
- On expiry of a period of ten years of non-use by an employer of his economic rights
received under contract concluded with the author, the rights shall belong in full to theauthor or his heirs with no compensation payable to the employer; and
- The provisions of this Article shall not apply to encyclopedias, collections of scientific
works, and periodical publications, listed in Paragraph 2 Article 11 of this Law.
Article 15 - paragraph 1
- Sub-Paragraph 3) shall read:
- the right to protect the work, including its title, of any distortion or other
derogatory acts liable to prejudice the honor or reputation of the author (right to
the protection of the author's reputation).
- The Article shall include Paragraph 4:
- the right to disclose or allow disclosu re of the work in any form (right to
disclosure).
Article 16
- The Article shall include Paragraph 3-1:
- The right to distribute the original work or its copies by way of rental shall
belong to the author, irrespective of the right of ownership applied to them.  Thisprovision shall not apply to computer programs, if a computer program per se is
not the main object of rental, and to audiovisual works;
- Paragraph 5 shall be removed; and
- Paragraph 6 shall be amended to include "and the holder of rights" after "author".
Article 17 shall include Paragraph 3:
- The transfer of the right of ownership to a work of art or original of a literary or musical
work, whether permanent or temporary, effected by its author to another person, shall beviewed as the first sale of the work; and
- The Title of Article 18 shall be amended to include "or the consent of the holder of rights'
after "the author's consent".WT/ACC/KAZ/37/Add.3
Page 81
Article 19
 The Title of Article 19 shall be amended to include "or the consent of the holder of rights'
after "the author's consent".
- Sub-Paragraph 4) shall read:
- the reproduction in newspapers, broadcasting of political speeches, addresses,
lectures and other works of the same nature delivered in public, to the extent
justified by informational purposes.
Article 21 shall read:
- The reproduction and broadcasting of architectural works, photographic works, and works
of art permanently located in a public place with free access shall be permissible without
the consent of the author or the holder of rights and without payment of remuneration,
except where the presentation of the work constitutes the main feature of suchreproduction and broadcast, or if used for commercial purposes.
- Paragraphs 1 and 2 Article 24 shall read:
- Any person lawfully in possession of a copy of computer programs or databases
may, without the permission of the author or other holder of exclusive rights and
without paying any additional remuneration, make alterations where such actionsare aimed solely to ensure their operation in combination with the user's
hardware, and fulfillment of functions for which they have been designed,
including:
- inputting and storing of data in a computer memory, as well as correction of
obvious errors.  Inputting and storing may apply to only one computer ornetwork user, unless there are provisions to the contrary in the agreement
concluded with the author or the holder of rights;
- performing adaptation of a computer program or a database;
- making a copy (or have a copy made) of a computer program or a database,
provided that the copy is intended solely for archiving purposes and forreplacement of a lawfully acquired copy (in the event if the original version
of a program or a database have been lost, destroyed or rendered useless), on
the understanding that the copy of a computer program or database may not
be used for purposes other than those specified above and that it must be
destroyed should further possession of the copy of a computer program or
database cease to be lawful.
- Any person lawfully in possession of a copy of computer programs or
databases may, without the permission of the author or other holder of exclu-
sive rights and without paying any additional remuneration, decompile them
or have them decompiled as a part of the process of programming studies and
in order to understand the structure of the program, in which case the
following conditions have to be fulfilled or observed:
- the person concerned must not previously have had access to other sources
capable of  providing him with the information necessary to ensure the
interactive capability;
- the information obtained as a result of decompilation may only be used for
the achievement of the interactive capability of an independently developedcomputer program with other programs; it may not be used for the devel-
opment of a computer program of a type essentially comparable to theWT/ACC/KAZ/37/Add.3
Page 82
decompiled program, or for carrying out any other act that infringes
copyright.
- decompilation may only be performed in relation to the parts of the computer
program where it is essential for the achievement of the interactive capability.
Article 25 shall read:
- A broadcasting organization may, without the consent of the author or the holder of rights
and without payment of any additional remuneration, make an ephemeral recording of a
work in which it has obtained a right of broadcasting. This provision shall apply under the
following conditions:
- the recording is made with its own equi pment and for the purposes of its own
broadcasts; and
- the recording is destroyed within six months after having been made, except
where a longer period has been agreed upon with the author of the recorded work
or the holder of rights; the recording may be preserved without the consent of the
author of the work or the holder of rights in official archives if it is of a purely
documentary nature.
Article 26
The title of the Article 26 shall read "Article 26.  Reproduction for Personal Purposes Subject
to Payment of Remuneration".
- Paragraph 2 shall read:
- The remuneration for reproduction as referred to in Paragraph 1 shall be paid by
the manufacturers or importers of the equipment and of the recording materialused for the reproduction; and
- The list of the equipment and recording material shall be approved by the
Government of the Republic of Kazakhstan.
Article 28 shall include Paragraph 9:
- While a work is granted protection under provisions of international agreements to which
the Republic of Kazakhstan is party, the term of its copyright may not exceed the period
set in the country of origin (Paragraph 4 Article 5 of this Law).
Article 29
- Paragraph 2 shall be removed; and
- Paragraph 4 shall read:
- The Government of the Republic of Kazakhstan may specify instances of
payment as well as  the amount of special contributions made for the use in theRepublic of Kazakhstan of works that have fallen into the public domain.  These
contributions shall be made to the professional funds for authors or to the
organizations for the collective administration of the economic rights of authors.
- Paragraph 1 Article 30 shall be removed.
- Paragraph 1 Article 31 shall read:WT/ACC/KAZ/37/Add.3
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- The economic rights referred to in Article 16 of this Law may be assigned in full
or in part, or transferred by means of an author's contract; and
- Any transfer of economic rights shall be fixed in a written contract, signed by the
author and the recipient of transferred rights (holder of rights).
Article 32
- Paragraph 6 shall read:
- The minimum rate of remuneration shall be set by the Government of the
Republic of Kazakhstan, subject to indexation in accordance with the minimum
wage rates, determined in the legislative act.  If the author's contract on
publication or any other form of reproduction of the work specifies remuneration
as a fixed sum, it shall also include the maximum number of copies; and
- Paragraph 8 shall be amended to include the phrase "except for instances covered
by Articles 14 and 33 of this Law".
- Paragraph 12 shall read:
- Special forms of contracts (and procedures for their conclusion) set out in the
legislation of the Republic of Kazakhstan may  apply to sale of copies of
electronic works, including computer programs or databases, as well as toprovision of large-scale access to computer programs or databases.
Article 34
- the word "stage productions" shall be removed; and
- the word "broadcasts" shall be replaced by "programs".
Article 36
- paragraph 1 - all occurrences of the word "stage production" shall be removed;
- sub-paragraph 2 - change the verb form from plural to singular; and
- sub-paragraph 3 - change the verb form from plural to singular.
- sub-paragraph 4 shall read:
- the performance has not been recorded on a phonogram, but included in a
program of a broadcasting or cable distribution organization protected under
paragraph 3 of this Article.
- Paragraph 4 shall read:
- Based on Paragraphs 1-3 of this Article, relating rights of foreign natural persons
and legal entities shall be recognized in the Republic of Kazakhstan in
accordance with the international agreements to which the Republic of
Kazakhstan is party, unless the performance, phonogram, or program of abroadcasting or cable distribution organization has fallen into the public domain
in the country of origin, determined in accordance with the rules of the
corresponding international agreement signed by the Republic of Kazakhstan,
following expiration of the term of relating rights, set in this country, or unless it
has become part of the  public domain in the Republic of Kazakhstan followingexpiration of the term of relating rights.WT/ACC/KAZ/37/Add.3
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Article 37
- Sub-Paragraph 2) of Paragraph 1:
- words "and stage productions" shall be removed;
- "any distortion" shall be replaced with "all forms of distortions";
- "or" following the word "honor" shall be replaced with "and"; and
- "performer" shall be substituted with "author".
- The following Paragraph shall be included:
- Moral rights shall belong to the performer irrespective of economic rights and
shall be retained in case of transfer of exclusive economic rights to exploit a
performance.
- Paragraph 2 shall read:
- Exclusive rights of the performer to exploit a performance comprise the rights to
undertake, authorize or prohibit the following actions:
- record the performance if it has not hitherto been recorded;
- reproduce the recording of the performance directly or indirectly;
- broadcast the performance or communicate it to the public by cable if it does
not utilize a recording;
- broadcast the recording of the performance or communicate it by cable
except for cases covered in Paragraph 1 Article 39 of this Law;  if such
recording was initially made for non-commercial purposes; and
- rent a phonogram published for commercial purposes on which a
performance has been recorded with the participation of the performer; thisright shall be transferred to the phonogram producer on conclusion of a
contract relating to the recording of the performance on the phonogram.
However, the performer shall retain his right to remuneration for the rental of
copies of the phonogram.
- all occurrences of the phrase "or stage productions" shall be removed from paragraph 3.
- Paragraph 2 Article 38 shall read:
- Exclusive rights to exploit a phonogram comprise the rights to undertake,
authorize or prohibit the following actions:
- any form of reproduction of the phonogram, made directly or indirectly;
- distribution of the original or copies of the phonogram, including import, by
sale or any other form of transfer of the right of ownership;
- rental of the original or copies of the phonogram, even following distribution
made by the phonogram producer or under his authorization;
- adaptation or any other transformation of the phonogram; and
- global proliferation of the phonogram.
Article 40
- Paragraph 1:
- the word "broadcasts" following "its" shall be replaced with "programs"; andWT/ACC/KAZ/37/Add.3
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- the word "broadcasts" following "use" shall be replaced with "programs".
- Paragraph 2 shall read:
- The exclusive right to authorize the use of the program comprises the right to
undertake, authorize, or prohibit the following actions:
- broadcast the program;
- communicate the program to the public by cable;
- proliferate the program globally;
- record the program;
- reproduce the recording of the program; and
- communicate the program to the public in places where a charge is made for
admission.
Article 3
- All occurrences of the word "broadcasts" shall be replaced with "programs"; and
- Sub-Paragraph 1) shall be amended to include the phrase "and cable distribution" after
"broadcasting".
Article 41
- Paragraph 1:
- The phrase "a performance, program broadcast or transmitted by cable" shall be
replaced with "a program of a broadcasting or cable distribution organization";
and
- "phonograms" shall be replaced with "a phonogram".
- Sub-Paragraph 1) shall read:
- for inclusion in a report on current events of short extracts taken from a
performance, a phonogram or a program of a broadcasting or cable distribution
organization.
- Sub-Paragraph 3) shall read:
- in order to quote, in the form of short extracts taken from a performance, a
phonogram, or a program of a broadcasting  or cable distribution organization, on
condition that the quotation is made for informational purposes and on the
understanding that a broadcasting or cable distribution organization may make
use of copies of a phonogram published for commercial purposes only for
broadcasting, transmission by cable, or global communication if the provisions of
Article 39 of this Law are respected.
- Paragraph 2:
- The phrase "a program broadcast or transmitted by cable" shall be replaced with
"a performance, a program of broadcasti ng and cable distribution organization";
and
- The phrase "Reproduction of the phonogram shall be permissible" shall be
followed by "only".WT/ACC/KAZ/37/Add.3
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- Paragraph 3:
- The first paragraph shall read:
- The provisions of Articles 37, 38 and 40 of this Law concerning the
authorization of the performer, the phonogram producer and the broadcasting
or cable distribution organization shall not be applicable to the making ofephemeral recordings of a performance or a program of the broadcasting or
cable distribution program, to the reproduction of such recordings or to the
reproduction of a phonogram published for commercial purposes if the
ephemeral recording or the reproduction is made by a broadcasting
organization using its own equipment and for the purposes of its own
broadcasts, on condition that.
- Sub-Paragraph 1):  "broadcasts" shall be replaced with "programs";
- Sub-Paragraph 2):  the phrase "within six months" shall be removed;
- The phrase "a single copy may be conserved in official archives if" shall be replace with
"a recording may be conserved in official archives if";
- Paragraph 4:  the phrase "the performance or the program broadcast or transmitted by
cable" shall be replaced with "a program of a broadcasting or cable distributionorganization".
Article 42
- Paragraph 1:
- All occurrences of the phrase "or a stage production" shall be removed; and
- The phrase "derogatory act" shall be followed by "liable to prejudice the honor
and dignity of the author".
- Paragraph 4:  the phrase "first cable transmission" shall be replaced with "first
communication";
- Paragraph 5:  the phrase "television programs (broadcast programs)" shall be replaced
with "television programs";
- Paragraph 8:  the phrase "a performance, a phonogram or a program broadcast or
transmitted by cable" shall be replaced  with "a phonogram, a program of a broadcasting
or cable distribution organization".
- The Article shall include Paragraph 9:
- Upon expiry of the term of relating rights to performances, phonograms, programs of
broadcasting or cable distribution organizations, they shall become a part of the
public domain;
- Works covered by relating rights that have fallen into the public domain shall be
governed by provisions of Article 29 of this Law with reference to Articles 34-42 of
this Law’;
- Paragraphs 1, 2, 3 Article 43 shall read:
- The authors, performers, producers of phonog rams and other holders of rights may, in
order to exercise their economic rights where individual actions are for practical
reasons difficult to implement (public presentation, public performance,
communication  by radio or television, global proliferation in the form of mechanical,
tape or other recordings, including one-time reproduction for communicationWT/ACC/KAZ/37/Add.3
Page 87
purposes, and other instances), set up collective organizations to administer those
rights.
- Activities of these organizations shall not be covered by restrictions set out in the
legislation on monopolies.
- Two or more organizations may not perform collective administration of a single
category of rights on behalf of a single ca tegory of holders where these holders use
identical methods of exploitation of copyrighted works and works covered by relating
rights. Such organizations shall be set up directly by the authors, holders of copyright
or relating rights and shall operate within the limits defined by their charters, given
authority, and licenses granted in accordance with procedures set out in the legislation
of the Republic of Kazakhstan for collective administration of economic and relating
rights.
Article 6.  This Law shall come into force on the day of publication.
President of the Republic of Kazakhstan
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