RESTRICTED
WORLD TRADE WT/ACC/KGZ/7
11April 1997
ORGANIZATION(97-1532)
Original: English
ACCESSION OFTHE KYRGYZ REPUBLIC
Consolidated Questions andReplies
totheMemorandum ontheForeign Trade Régime
(Documents WT/ACC/KGZ/5 andWT/ACC/KGZ/5/Add.2)
Theconsolidated listofquestions submitted byMembers andthereplies thereto provided by
theauthorities oftheKyrgyz Republic arereproduced hereunder. Theannexes mentioned inthis
document areavailable intheSecretariat (Accessions Division, Room 1126) forconsultation.
_______________WT/ACC/KGZ/7
Pageii
TABLE OFCONTENTS
Page
No.Question
No.
II. ECONOMY, POLICIES AND FOREIGN TRADE
1. Economy
(a) General description 1 1-6
(b) Current economic situation 2 7
2. Economic Policies
(a) Main directions ofongoing economic policies 3 8-13
(d) Foreign anddomestic investment policy 4 14-19
(e) Competition policy 6 20-22
III. FRAMEWORK FOR MAKING AND ENFORCING
POLICIES AFFECTING FOREIGN TRADE INGOODS
AND TRADE INSERVICES
2. Government Entities Responsible forMaking andImplementing
Policies Affecting Foreign Trade8 23
3. Division ofAuthority Between Central andSub-central
Governments8 24
4. Legislative Programmes orPlans toChange theRegulatory
Régime8 25-27
IV. POLICIES AFFECTING TRADE INGOODS
1. Import Regulation
(b) Characteristics ofnational tariff 9 28-33
(c) Tariff quotas, tariff exemptions 11 34-38
(d) Other duties andcharges, specifying anycharges forservices
rendered12 39-46
(e) Quantitative import restrictions, including prohibitions, quotas
andlicensing systems14 47
(f) Import licensing procedures 14 48-54
(h) Customs valuation 17 55-59
(i) Other customs formalities 19 60-61
(j) Pre-shipment inspection 20 62
(k) Application ofinternal taxes onimports 20 63-78
(l) Rules oforigin 26 79-84
(m) Anti-dumping régime 27 85-87
(n) Countervailing dutyrégime 28 88-90
(o) Special purpose duties 29 91-98
2. Export Regulation
(d) Export licensing procedures 31 99-105
(f) Export financing, subsidy, andpromotion policies 34 106-108WT/ACC/KGZ/7
Pageiii
Page
No.Question
No.
3. Internal Policies Affecting Foreign Trade inGoods
(a) Industrial policy, including subsidy policy 34 109
(b) Technical regulations andstandards, including border measures 34 110-136
(c) Sanitary andphytosanitary measures 42 137-144
(d) Trade-related investment measures 44 145-148
(e) State-trading practices 46 149-151
(f) Freezones 46 152-153
(g) Freeeconomic zones 47 154-155
(h) Trade-related environmental policies 47 156-162
(j) Government-mandated countertrade andbarter 49 163
(k) Trade agreements leading tocountry-specific quotas allocation 50 164
(l) Government procurement practices 50 165-182
4. Policies Affecting Foreign Trade inAgricultural Products
(a) Imports 55 183-184
(b) Exports 55 185-186
(e) Internal policies 56 187-189
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
(a) Intellectual property policy 56 190-193
(b) Responsible agencies forpolicy formulation and
implementation58 194
(c) Membership ofinternational intellectual property conventions 58 195-197
(d) Application ofnational andm.f.n. treatment toforeign
nationals59 198-200
2. Substantive Standards ofProtection 60 201-203
(a) Copyright andrelated rights 63 204-217
(b) Trademarks, including service marks 67 218-227
(c) Geographical indications, including appellations oforigin 71 228-231
(d) Industrial designs 72 232-234
(e) Patents 74 235-245
(f) Plant variety protection 78 246-248
(g) Layout designs ofintegrated circuits 79 249-254
(h) Requirements onundisclosed information 80 255-257
(i) Anyother categories ofintellectual property 81 258
3. Measures toControl Abuse ofIntellectual Property Rights 82 259WT/ACC/KGZ/7
Pageiv
Page
No.Question
No.
4. Enforcement
(a) Civil judicial procedures andremedies 82 260-262
(b) Provisional measures 83 263-264
(d) Anyspecial border measures 83 265-267
(e) Criminal procedures 84 268-270
5. Laws, Decrees, Regulations andOther Legal ActsRelating to
theAbove86 271
VI. TRADE-RELATED SERVICES REGIME
1. General 86 272
2. Policy Affecting Trade inServices
(a) Government departments, agencies orother bodies 86 273
(d) Provisions governing theexistence andoperation ofmonopolies
orexclusive service suppliers87 274
3. Market Access andNational Treatment
(e) Restriction on,orrequirements ofspecific types oflegalentity
through which aservice maybesupplied87 275
(f) Limitations ontheparticipation offoreign capital 87 276-277
(g) Measures providing forlessthanthetreatment accorded to
national services orservice suppliers88 278-280
5. Description oftheMarket andtheMechanism forRegulating
theMost Prominent Service Sectors
(a) Legal services 89 281-283
(b) Telecommunication services 90 284-294
(e) Banking services 93 295-297
(f) Transport services 93 298
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC
RELATIONS WITH THIRD COUNTRIES
1. Bilateral, Plurilateral andMultilateral Agreements Relating to
Foreign Trade inGoods andTrade inServices
(b) Plurilateral agreements relating toforeign trade ingoods and
trade inservices (Annex 8brefers)94 299
2. Economic Integration, Customs Union andFreeTrade
Agreements
(b) Customs union agreements 94 300-312
(c) Freetrade areaagreements 99 313-320WT/ACC/KGZ/7
Pagev
Page
No.Question
No.
ANNEXES
ANNEX 5INFORMATION ONTECHNICAL BARRIERS INTRADE
2. Information Regarding:
(b) Thenames andaddresses oftheenquiry points foreseen in
Articles 10.1and10.3oftheWTO Agreement ontechnical
barriers totrade (theAgreement) withanindication asto
whether theyarefullyoperational101 321WT/ACC/KGZ/7
Page1
II. ECONOMY, POLICIES AND FOREIGN TRADE
1. Economy
(a) General description (WT/ACC/KGZ/5/Add.2, Qu.1-6)
Question 1.
Please confirm whether theprivate sector contributed 77or87percentoftheRepublic ’stotal
agricultural production in1995.
Answer:
Theaccurate amount isseventy-five point fourpercent(75.4%).
Question 2.
Please identify anddescribe thenon-private entities which contributed theremaining share of
agricultural production.
Answer:
Thefigure intheMemorandum indicating that78percent(75.4%) ofagricultural production
in1995 wascontributed bytheprivate sector needs clarification. According toaresolution ofthe
Cabinet ofMinisters “OnAgriculture ”,agricultural producers aretobedivided intothreecategories:
(i)Stateagricultural enterprises, kolkholzes andpeasant farmassociations; (ii)personal farms; and
(iii)peasantfarms.Inaccordancewiththisresolution,theMinistryofAgriculturecollectsgrossstatistics
foreachofthethree specified categories. Producers falling intothelatter twocategories, which are
entirely private, contributed 75.4percent(75.4%) ofagricultural production in1995. The150
enterprises falling within thefirstcategory contributed theremaining 24.6percent(24.6%).
However, itmustbenoted thatkolkholzes andpeasant farmassociations (PFA’s),which are
included within thefirstcategory, arealsoentirely private agricultural entities. They arecompletely
owned andcontrolled bytheirrespective members. TheStatedoesnotownorcontrol theiroperations,
property orresources. Furthermore, theyreceive noStatesupport. APFAisusually akolkhoz that
hasbeenreorganized byitsmembers. Thedifference between akolkhoz andaPFAisthat,inakolkhoz
eachmember owns anundivided share intheentire enterprise, andinaPFAeachmember hasthe
exclusive righttoworkaspecified parcel oflandandhasanexclusive ownership rightincertain specified
productive assets (such asbuildings and/or equipment).
Only goskhozes arestillState-owned; however, anymember ofagoskhoz maytakeaparcel
representing hisshare inthegoskhoz andwithdraw thisfromthegoskhoz, thereby creating aprivate
farm. Thisisanon-going process asmore andmore members ofgoskhozes takeadvantage ofthis
right. Although allgoskhozes aresupposed toreceive some State support, duetoalackoffunds,
theState hasbeenunable toprovide thissupport, except tothose fewgoskhozes engaged inanimal
breeding orseedproduction. DuetothelackofStatesupport, itisbelieved thattheresources ofthe
other goskhozes willbecompletely privatized bytheirmembers within thenextfewyears.
Question 3.
DoState-owned means ofagricultural production (i.e., collective farms) continue toexistinthe
Kyrgyz agricultural sector?WT/ACC/KGZ/7
Page2
Answer:
Yes
Question 4.
Ifso,what istheir share oftotalagriculture production?
Answer:
Somewhat lessthan10percent(10%). Seeanswer toquestion 2above.
Question 5.
Does theKyrgyz Republic intend toprivatize further itscollective farming system?
Answer:
Yes
Question 6.
When doestheKyrgyz Republic believe thatitwillhavecompleted itsprivatization programme?
Answer:
Currently, theprivatization programme for1997 isbeing developed. During 1997 the
privatization programme for1998 and1999 willbedeveloped. Itistooearly topredict thedateon
which theentire programme willhavebeencompleted, butitisenvisaged thattheprogramme will
becompleted before 2005
(b) Current economic situation
Question 7.(WT/ACC/KGZ/5, Qu.1)
Could youspecify what ismeant bythe“sixnatural monopolies ”forwhich prices havenotbeen
liberalized?
Answer:
Actually, seven entities havenowbeensoclassified:
- Kyrgyz Energy Company (electric power andthermal energy);
- ManagementDepartmentofKyrgyzRailroad(intra-republicpassengerandgoodstransportation);
- “Kyrgyzgas ”(natural andliquefied natural gas);
- Ministry ofCommunication (telecommunication services rendered tothepublic);
- “Kyrgyzjilkommunsojuz ”(thermal energy, water-pipe water andsewage);
- “Kyrgyzalco ”(alcohol andalcohol products, other thanbeer); and
- “Kyrgyztamekesi ”(tobacco fermentation, manufacture oftobacco products, saleoffermented
tobacco).WT/ACC/KGZ/7
Page3
2 Economic Policies
(a) Main directions ofongoing economic policies
Question 8.(WT/ACC/KGZ/5, Qu.2)
Areanygoods (asopposed tocompanies) subject toprice control?
Answer:
Nogoods -asopposed tocompanies -aresubject toprice control.
Question 9.(WT/ACC/KGZ/5, Qu.3)
Could youspecify the“sound andworkable bankruptcy process ”(page 5)?
Answer:
Withtheassistance offoreign advisers, bankruptcy laws, regulations andprocedures thatare
modeledafterthesimilarlaws,regulationsandproceduresofdevelopedcountriesarebeingpromulgated
andimplemented.
Question 10.(WT/ACC/KGZ/5/Add.2, Qu.7)
TheMemorandum states thatconsiderable progress hasbeen achieved with regard tothe
privatization ofmedium andlarge enterprises, andthattheprocess ofprivatization willcontinue
under the1996-1997 programme. Does theKyrgyz Republic consider theprivatization ofsmall
enterprises tonowbecomplete?
Answer:
Privatization ofsmall enterprises engaged intheproduction oroffering ofgoods hasbeen
completed; however, thesituation isdifferent forservice enterprises. Such enterprises include the
following typesofservice providers: educational institutions, scientific institutions, cultural institutions,
recreationalandentertainmentfacilities,tourismserviceproviders,hotels,healthresorts,sportsfacilities
andhealth careproviders. Inaccordance withtheDenationalization andPrivatization Programme for
1996-1997, theState istoretain a70percentinterest inthese entities. Privatization ofallsmall
enterprises isplanned tobefinished by1999.
Question 11.(WT/ACC/KGZ/5/Add.2, Qu.8)
TheMemorandum states thattheprivatization process isopentoforeign anddomestic participation
according tothesame rules. Arethecurrent procedures published andwhere cantheybefound?
Answer:
Theprocedures applicable toprivatization aredeveloped andmaintained bytheStateProperty
Fund. Although suchprocedures arenotusually formally “published, ”theyaremade available by
theSPFtoanyinterested person upon request. Currently, several private publishers anddatabase
companiesroutinelycollectandpublishsuchprocedures,aswellaslaws,resolutions,decrees,regulations
andrules.WT/ACC/KGZ/7
Page4
Question 12.(WT/ACC/KGZ/5/Add.2, Qu.9)
TheMemorandum states thatthelandprivatization programme willresume intheautumn of
1996, andthatanelement oftheplanistocreate private ownership ofland. What isthecurrent
status ofthelandreform programme? What isthestatus oftheParliamentary consideration of
alawtocreate theright toprivate ownership ofland?
Answer:
The Memorandum discusses landreform onlywithin thecontext oftheprivatization of
agriculture.Foradescriptionofthecurrentsituationregardingagriculturalprivatization,seetheanswers
toquestions 2and5onPartII,Section 1(a)above.
TheCabinet ofMinisters iscurrently considering anewdraftofalawentitled “OnProperty
Rights inLand. ”Thedraftlawwasdeveloped bythegovernmental working group onthematter created
pursuant toInstruction No.105-p oftheCabinet ofMinisters of22April 1996. Thisdraft law
establishes private property rights inland; however, evenifapproved bytheCabinet ofMinisters and
submittedtoandpassedbytheParliament,thislawcannotcomeintoeffectuntilthecurrentconstitutional
prohibition ontheprivate ownership oflandhasbeeneliminated. Therefore, itisunlikely thatsuch
alawwillcome intoeffect until1999, attheearliest.
Question 13.(WT/ACC/KGZ/5/Add.2, Qu.10)
When doestheKyrgyz Republic believe thatitwillhavecompleted itsprivatization programme?
Answer:
Weassume thisquestion isdirected toagricultural privatization. Foradescription ofthecurrent
situation regarding agricultural privatization, seetheanswer toquestion 2onPartII,Section 1(a)above.
Fornon-agricultural privatization, thePrivatization Programme for1998-1999 willbedeveloped in
1997. Itistooearly topredict thedateonwhich theentire privatization programme willhavebeen
completed, butitisenvisaged thattheprogramme willbecompleted before 2005.
(d) Foreign anddomestic investment policy
Question 14.(WT/ACC/KGZ/5, Qu.5)
Arethere anyrestrictions tothenational treatment principle?
Answer:
There arenogeneral restrictions ontheprinciple ofnational treatment. Nevertheless, incertain
veryspecific instances, anapplicable laworregulation subjects aforeign product, service, citizen or
legalentity toacondition orrequirement thatdiffers from thatapplicable toaKyrgyz citizen and/or
legalentity. Incertain instances, suchcondition orrequirement treats foreign persons lessfavourably
thanKyrgyz citizens (e.g., theexisting feestructure fortheregistration ofintellectual property rights);
inother instances, foreign persons receive more favourable treatment (e.g., certain taxexemptions
areonlymade available toKyrgyz legalentities which havesubstantial foreign participation). Those
lawsandregulations thatsubject foreign persons toconditions orrequirements thatdiffer fromthoseWT/ACC/KGZ/7
Page5
applicable toKyrgyz citizens aredescribed intheMemorandum onForeign Trade Regime. (Seealso,
theMemorandum atVI.3(g), page54)
Question 15.(WT/ACC/KGZ/5, Qu.6)
Canforeign investors freely repatriate their investments made intheKyrgyz Republic infreely
convertible currency?
Answer:
Yes.
Question 16.(WT/ACC/KGZ/5, Qu.7)
Isthere anydomestic legal protection forforeign investors incases ofexpropriation?
Answer:
Inaccordance withArticle 7ofthe“LawOnForeign Investments intheKyrgyz Republic ”
of28June1991, foreign investments areprotected from nationalization except where: (i)a
nationalization isnecessary toprotect thehealth and/or livesofthepopulation ortoensure Stateand/or
public security from athreat created bytheinvestment, and(ii)theforeign investor hasrefused or
isnotabletocomply withanorder oftheresponsible State body toeliminate thethreat within the
timespecified insuchorder. Inanyevent, foreign investments areaccorded national treatment in
thisrespect; i.e.they canbesubject torequisition orconfiscation onlyforthesame reasons and
according tothesame procedure applicable toKyrgyz citizens andlegalentities. Furthermore, inthe
event ofanationalization orrequisition ofaforeign investment, theLawonForeign Investments requires
thattheforeign investor bepaidcompensation inanamount commensurate withtherealcostofthe
concerned property. Such compensation istobemade inthecurrency inwhich theinvestment was
made or-iftheinvestor agrees -inthenational currency oftheKyrgyz Republic. TheLawonForeign
InvestmentscreatesrightsthatareenforceableagainsttheGovernmentandStatebodiesinthecommercial
courts oftheKyrgyz Republic.
Question 17.(WT/ACC/KGZ/5, Qu.8)
Underwhatcircumstanceswouldforeigninvestorsberestrictedfromparticipatinginprivatization?
Answer:
Asstated intheMemorandum onForeign Trade Regime (PartII,Section 2(d)), theCabinet
ofMinisters hastheauthority torestrict orotherwise limitforeign investors fromparticipating inthe
privatization ofcertain industries; however theCabinet ofMinisters hasnotyetexercised thisauthority.
Nevertheless,thesourceofthatauthority,paragraph26oftheLawonDenationalizationofStateProperty
of12January 1994, states that“Intheprocess ofdenationalization andprivatization ofobjects ofcertain
sectors ofthenational economy, theCabinet ofMinisters mayreduce thenumber ofpurchasers to
guarantee thepriority rights ofcitizens andlegalentities oftheKyrgyz Republic. ”WT/ACC/KGZ/7
Page6
Question 18.(WT/ACC/KGZ/5, Qu.10)
Itisstated thattheCabinet ofMinisters hastheauthority under the1994 Privatization Lawto
restrict foreign investors from participating intheprivatization ofcertain sectors. Towhich sector
does thisrestriction apply? Could theKyrgyz Republic explain thebackground behind the
introduction ofsuchaprovision?
Answer:
Seeanswer toQuestion 17above.
Question 19.(WT/ACC/KGZ/5, Qu.9)
Areforeign investors freetoacquire realestate linked totheestablishment?
Answer:
Foreign citizens andlegal entities maypurchase residential immovable property -suchas
apartments andhouses -onlywiththespecific permission oftheCabinet ofMinisters. Foreign citizens
andlegalentities mayrentsuchimmovable property onthesame basis asKyrgyz citizens andlegal
entities. Noprivate person orlegalentity, either foreign orlocal, mayyetacquire ownership rights
inland.
(e) Competition policy
Question 20.(WT/ACC/KGZ/5, Qu.11)
Does theKyrgyz Republic intend tonotify anyofits“natural ”monopolies listed inthissection,
under Article XVII oftheGATT 1994 ofArticle VIIIoftheGATS? Ifnot,whynot?
Answer:
TheGovernment oftheKyrgyz Republic isreviewing theoperations, legalstatus andrights
ofthebelow-listed natural monopolies todetermine whether theymustbenotified as“Statetrading ”
entities within themeaning ofArticle VIIIoftheGATS orArticle XVII oftheGATT. Ifthe
Government determines thatanentity fallswithin thedefinition ofa“State-trading ”enterprise, that
entity willbenotified assuchtotheWTO. IftheGovernment determines thatanentity doesnotmeet
thatdefinition, itwillsupply theWTO withastatement astowhyitbelieves thatsuchentity doesnot
meetthedefinition and,therefore, neednotbenotified totheWTO.
- ManagementDepartmentofKyrgyzrailroad(intra-republicpassengerandgoodstransportation);
- Ministry ofCommunication (telecommunication services rendered topublic);
- Kyrgyz Energy Holding Company (electric power andthermal energy);
- “Kyrgyzgas ”(natural andliquefied natural gas);
- “Kyrgyzjilkommunsojuz ”(thermal energy, water-pipe water andsewage);
- “Kyrgyzalco ”(alcohol andalcohol products, other thanbeer); and
- “Kyrgyztamekesi ”(tobacco fermentation, manufacture oftobacco products, saleoffermented
tobacco).WT/ACC/KGZ/7
Page7
Question 21.(WT/ACC/KGZ/5/Add.2, Qu.11)
TheMemorandumstatesthat“opencompetitioncurrentlyexistinalmostallsectorsoftheeconomy,
“butthat“natural, ”“permitted ”and“temporary ”monopolies exist, withthevarious categories
of“natural ”monopolies specifically mentioned. Please identify thesectors characterized bythe
dominance of“permitted ”and“temporary ”monopolies.
Answer:
Thefollowing are“permitted ”monopolies:
- “Kyrgyzstan AbaZholdoru ”(airtransportation -tobeprivatized in1997);
- State Joint Stock Company “Kyrgyzmunaizat ”(oilcompany);
- Jalal-Abad OilProcessing Plant;
- State concern “Uchkun ”(printing house);
- State concern “Akyl”(printing house);
- Production Association “Kyrgyzkomur ”(coal);
- State concern “Kyrgyzaltyn ”(gold).
“Temporary ”monopolies, numbering 31,predominate inmachine-building, textiles andfood
industries.
Question 22.(WT/ACC/KGZ/5/Add.2, Qu.12)
How many entities characterized as“permitted ”and“temporary ”monopolies arecurrently
regulated bytheAnti-monopoly Department oftheMinistry ofEconomy?
Answer:
AtthistimetheAnti-monopoly Department regulate thefollowing “permitted ”monopolies:
- thenational aircompany “Kyrgyzstan AbaJoldoru ”;
- SJSC “Kyrgyzmunaizat ”(oilcompany);
- State concern “Uchkun ”(printing house);
- State concern “Akyl”(printing house).
Therest“permitted ”monopolies arebeing studied.
None ofthe“temporary ”monopolies iscurrently regulated; however, theactivities andprices
ofeacharemonitored toensure thatitdoesnotabuse itsdominant position.WT/ACC/KGZ/7
Page8
III. FRAMEWORKFORMAKINGANDENFORCINGPOLICIESAFFECTINGFOREIGN
TRADE INGOODS AND TRADE INSERVICES
2. Government Entities Responsible forMaking andImplementing Policies Affecting Foreign
Trade
Question 23.(WT/ACC/KGZ/5, Qu.12)
What process willbeneeded tocomplete national procedures relating toWTO accession? Will
implementing legislation berequired?
Answer:
TheGovernment willdesignate anegotiating teamtoconduct theaccession negotiations. Upon
theapproval oftheresulting terms ofaccession bytheCabinet ofMinisters, anofficial ofminister
rankwillbeauthorized toexecute theagreement setting forththeterms ofaccession. Theagreement
willthenbesubmitted totheParliament forratification. IfParliament ratifies theagreement, then
-totheextent thattheterms ofaccession require changes toexisting legalactsortheenactment of
newlegal acts-these actswillbedrafted andputintoeffect inaccordance withthetimetables set
forth intheterms ofaccession.
3. Division ofAuthority Between Central andSub-central Governments
Question 24.(WT/ACC/KGZ/5, Qu.13)
Itisstated inthesecond paragraph that“thelocal governmental policy affecting trade ingoods
andservices isalmost exclusively determined bythecentral Government ”.Please describe all
exceptions tothisprinciple.
Answer:
Thisissuehasbeenreviewed andithasbeendetermined thatthecentral Government andthe
Parliament havetheexclusive authority tosetpolicy andtoissuelawsandregulations concerning matters
affecting trade ingoods andservices falling within thescope oftheagreements administered bythe
WTO.
4. Legislative Programmes orPlans toChange theRegulatory Régime
Question 25.(WT/ACC/KGZ/5, Qu.14)
Please provide anup-date ontheprogress incompleting theParliament ’slegislative work
programme for1996. Which oftheactslisted inthissection have nowbeen enacted?
Answer:
Thelistoflawsmentioned inthissection includes onlythose which affect theforeign trade
regime. Parliament adopted several lawssinceJuly1996, butnotallofthemwerelisted inthissection.
Thefollowing lawshavebeenadopted byParliament since July1996:
- LawontheQuarantine ofPlants;
- LawonPower Engineering; andWT/ACC/KGZ/7
Page9
- LawonAmendments andChanges totheTaxCode.
Question 26.(WT/ACC/KGZ/5/Add.2, Qu.13)
According totheMemorandum, theParliament ’swork programme for1996includes, interalia,
preparation ofthefollowing legislation: OntheProcurement ofGoods (Works) andServices,
OnState Enterprises, OnPatent Rights, OnTrademarks, Service Marks andAppellations of
Origin, OnCopyright andRelated Rights, OnForeign Investment, aCustoms Code and
Amendments tothelawOnGeneral Principles ofDenationalization, Privatization and
Entrepreneurship. With regard totheaforementioned legislative changes inparticular, what
isthetimeframe forthecompletion ofeach? Werequest thattheKyrgyz Republic furnish drafts
ofthese legislative changes forWorking Party review.
Answer:
Allabove mentioned draftlawsareincluded intotheplanoftheParliament ’swork for1997.
Time frame tocomplete thework oneachofthese legislative actshasnotbeendetermined.
Drafts ofthese legislative actsaregiven inAttachments A1-A6,andC1-C3.
Question 27.(WT/ACC/KGZ/5/Add.2, Qu.14)
Does theGovernment oftheKyrgyz Republic publish drafts ofnew, revised oramended laws
seeking public comment? Ifso,inwhich publications might theyappear?
Answer:
ThelawdoesnotbindtheParliament ortheGovernment topublish drafts ofnew, revised
oramended lawsforpublic comment. Usually, draft lawsarepublished inthefollowing official
publications: Vedomosti Jogorku Kenesha, Slovo Kyrgyzstana, Erkin TooandNasha Gazetta.
Wesupport andencourage theKyrgyz Republic ’suseofWTO Agreements andthecommitments
contained therein inthedrafting ofchanges toitslegal environment andforeign trade regime.
IV. POLICIES AFFECTING TRADE INGOODS
1. Import Regulation
(b) Characteristicsofnationaltariff,customstariffnomenclature(HS),typesofduties,general
description ofthecustoms tariff structure, weighted average levelofduties onmain customs
tariff groupings, application ofm.f.n. tariff rates, tariff preferences
Question 28.(WT/ACC/KGZ/5, Qu.15)
When doestheKyrgyz Republic intend tobring itstariff nomenclature intolinewiththeHS96
system?
Answer:
TheKyrgyz Republic doesnothaveitsowntariff nomenclature, butinstead usesthetariff
nomenclature inforceinRussia. Russia wasscheduled tohave adopted theHarmonized Tariff SystemWT/ACC/KGZ/7
Page10
by1January 1997. Ifandwhen Russia hasadopted thatsystem, theKyrgyz Republic willusethe
HSnomenclature.
Question 29.(WT/ACC/KGZ/5/Add.2, Qu.17)
WT/ACC/KGZ/3 notes thatthere aresome structural andcoding differences between theexisting
tariff nomenclature andtheInternational Harmonized System.
Answer:
Seeanswer toQuestion 28above.
Question 30.(WT/ACC/KGZ/5/Add.2, Qu.15)
What isthelegislative status oftheproposed Customs Tariff Law, which wastohave been
introduced bytheCabinet ofMinisters by30September 1996?
Answer:
Itisunder consideration byaParliamentary committee. Once approved bythecommittee,
itwillgobefore theParliament asawhole forapproval. Itisincluded inthe1997 work planforthe
Parliament butnospecific timeschedule foradoption hasbeenset.
Question 31.(WT/ACC/KGZ/5/Add.2, Qu.16)
When doestheKyrgyz Republic anticipate completing itsnewtariff schedule? Please provide
acopy ofittotheWorking Party.
Answer:
Itiscurrently before theCabinet ofMinisters. Thedraftofnewthetariffschedule isprovided
inAnnex 10ofWT/ACC/KGZ/3.
Question 32.(WT/ACC/KGZ/5/Add.2, Qu.18)
Willthenewtariff regime retain theexisting import nomenclature?
Answer:
Seethepreceding answer.
Question 33.(WT/ACC/KGZ/5/Add.2, Qu.19)
Willthese differences beeliminated under theproposed Customs Tariff Law?
Answer:
Seetheanswer toQuestion 28above.WT/ACC/KGZ/7
Page11
(c) Tariff quotas, tariff exemptions
Question 34.(WT/ACC/KGZ/5, Qu.16)
With regard totheexemption granted tosome products originating inCIScountries; Article I
oftheGATT 1994 requires application ofthem.f.n. principle, whilst Article XXIV allows for
exceptions forregional integration initiatives where these arecompatible withtherequirements
ofArticle XXIV andoftheUnderstanding onthatArticle. IstheKyrgyz Republic prepared to
undertake thatexemptions willonlybegiven tothird countries inthecontext ofaWTO compatible
FreeTrade Agreement orCustoms Union Agreement?
Answer:
Yes.
Question 35.(WT/ACC/KGZ/5, Qu.17)
AretheFreeEconomic Zones under theLawonFreeEconomic Zones of16December 1992bonded
zones? Could theKyrgyz Republic explain thezones?
Answer:
TheFreeEconomicZonesarenotbondedzones.Thecustomsauthoritiesdonotrequiresecurity
fortheadmission ofgoods tosuchazone. These zones aredescribed inPartIV,Section 3(g)(page 35)
ofWT/ACC/KGZ/3.
Question 36.(WT/ACC/KGZ/5/Add.2, Qu.20)
WT/ACC/KGZ/3reportsthattechnicalequipment,rawmaterials,materials,reagents,components,
replacements, spare parts, semi-manufactures andother articles, thatareexempt from customs
duties when theyareimported bydomestic business enterprises fortheproduction offinalproducts.
Willtheproposed Customs Tariff Lawretain these dutyexemptions?
Answer:
Yes
Question 37.(WT/ACC/KGZ/5/Add.2, Qu.21)
Please identify, byHStariff linenumbers, theitems andtariff categories eligible forthese
exemptions.
Answer:
Individual domestic business enterprises mustapply totheMinistry ofIndustry andForeign
Trade toreceive these exemptions.WT/ACC/KGZ/7
Page12
Question 38.(WT/ACC/KGZ/5/Add.2, Qu.22)
Please indicate approximately what portion oftheKyrgyz Republic ’simports inarecent
representative period made useofthese exemptions.
Answer:
There arenostatistics available ontheportion ofimports entered under thisexemption.
(d) Other duties andcharges, specifying anycharges forservices rendered
Question 39.(WT/ACC/KGZ/5, Qu.18)
Asanadvalorem fee,theCustoms Clearance doesnotappear tobeconsistent withArticle VIII
ofGATT 1994, which requires thatfeesandcharges related toimportation belimited tothecost
ofservices rendered. What steps doestheKyrgyz Republic intend totaketobring itssystem
intolinewithGATT practice?
Answer:
TheKyrgyzRepublicisconsideringalteringthecurrentcustomsclearancefeefromanadvalorem
feeintoafeethattracks theactual costoftheservice provided. TheKyrgyz Republic iscurrently seeking
advice from foreign customs advisors onhowsuchafeestructure canbeputintoplace inamanner
acceptable totheWTO.
Question 40.(WT/ACC/KGZ/5, Qu.19)
How willtheKyrgyz Republic ensure thatfeesandcharges related toimportation arelimited
tothecostofservices rendered, ifthisisnotcovered expressly intheproposed newCustoms Code?
Answer:
Under Article VIII, allfeesandcharges related toimportation arerequired tobelimited to
thecostoftheservices rendered. TheKyrgyz Republic willintroduce changes totheproposed Customs
Code thatwillensure thatallfeesandcharges related toimportation reflect thecostofservices rendered.
TheKyrgyz Republic iscurrently attempting tocalculate theactual costoftheservices rendered in
connection withimportation.
Question 41.(WT/ACC/KGZ/5, Qu.20)
Under Kyrgyz law,istheimposition ofseasonal taxes limited tocertain product sectors?
Answer:
TheKyrgyz Customs Code provides forseasonal taxes; butthese arenotexpressly limited
toparticular product sectors.WT/ACC/KGZ/7
Page13
Question 42.(WT/ACC/KGZ/5/Add.2, Qu.23)
Both theexisting andproposed Customs Codes provide forthepayment ofcustoms service fees
based upon astated percentage ofthevalue ofgoods imported. Thismethod ofcharging customs
feesisnotconsistent withArticle VIIIoftheGATT 1994 which limits theamount offeestothe
approximate costofservices rendered. What hastheKyrgyz Republic done tomodify thisfee
structure tobring itintoconformity withWTO provisions?
Answer:
TheGovernment intends toamend theproposed Customs Code toensure thatfeesandcharges
related toimportation arelimited inamount tothecostofservices provided asrequired byArticle VIII
oftheGATT.
Question 43.(WT/ACC/KGZ/5/Add.2, Qu.24)
Theproposed Customs Code alsoapplies different service feestocommercial andnon-commercial
importations. What isthebasis forthedifference infeesforcommercial versus non-commercial
importations?Whatcriteriaareusedtodistinguishcommercialfromnon-commercialimportations?
Answer:
Cost ofprocessing fornon-commercial importations islessthanforcommercial ones.
Non-commercial importations areitems imported forpersonal useandnotforresale. Since this
distinction isfound intheproposed Customs Code, which hasnotyetbeenpassed, nocriteria have
yetbeenestablished bytheStateCustoms Inspectorate forthepractical implementation ofthisprovision.
Question 44.(WT/ACC/KGZ/5/Add.2, Qu.25)
TheMemorandum states that, asopposed totheexisting Customs Code, the“Proposed Customs
Code”currently doesnotcontain therequirement thatfeesforlicences, customs brokers, storage,
goods escort, information andconsultancy, andparticipation incustoms auctions, notexceed the
approximate value ofservices rendered. Does theKyrgyz Republic plan toincorporate this
requirement intothefinal version ofthenewCustoms Code?
Answer:
Yes
Question 45.(WT/ACC/KGZ/5/Add.2, Qu.26)
Why wasthisprovision dropped?
Answer:
Itisunclear.
Allfeesandcharges related tocustoms services, e.g.,customs processing, licensing, sanitary and
standards certification, must conform totheprovisions ofArticle VIIIoftheGATT 1994, e.g.,
thattheynotconstitute abarrier totrade andthattheyapproximate thecostoftheservicesWT/ACC/KGZ/7
Page14
rendered fortheindividual import transaction. Feesapplied without functional justification or
thatgenerate revenue inexcess ofthecostoftheservice arenotcompatible withWTO. (Note:
Thefindings oftheGATT 1947 panel ontheU.S. Customs User Feearealsorelevant inthis
regard.)
Weexpect thatallservice feesapplied toimports willbereviewed andamended tomeettheWTO
criteria prior tothedateofaccession.
Question 46.(WT/ACC/KGZ/5/Add.2, Qu.27)
TheMemorandum notes thatanti-dumping, countervailing andspecial-purpose duties are
authorized under theexisting Customs Tariff Law andsimilar duties areprovided forinthe
proposed Customs Tariff Law. Towhat extent arethese duties alsoprovided forinArticle 23
oftheCustoms Code of2July1992?
Answer:
These duties were notprovided forinArticle 23oftheCustoms Code ofJuly1992.
(e) Quantitative import restrictions, including prohibitions, quotas andlicensing systems
Question 47.(WT/ACC/KGZ/5, Qu.21)
CantheKyrgyz Republic confirm thatitdoesnotintend inthefuture tointroduce import quotas
ofanysort?
Answer:
TheKyrgyz Republic confirms thatitdoesnotplantointroduce import quotas inthenearfuture.
(f) Import licensing procedures (Annex 3refers)
Question 48.(WT/ACC/KGZ/5, Qu.22)
There isanadministrative charge forissuing alicence ofUS$75. Could theKyrgyz Republic
givemore precise indications onhowexactly these charges arecalculated tocover theservices
rendered (GATT Art.VIII) ?
Answer:
Thefeecharged foralicence isestablished at10“minimum salaries ”.This currently equals
750soms (approximately US$45 asof10January 1997). Theamount ofthefeeisnotcurrently based
onthecostofservices rendered. Income from licence feesistransferred intotheState budget
Question 49.(WT/ACC/KGZ/5/Add.2, Qu.28)
Section II.1(b) (Current economic situation) oftheMemorandum states thattheKyrgyz Republic
haseliminated import andexport licensing forthevast majority ofgoods. Annex 3of
WT/ACC/KGZ/3 indicates thattheonlylicensing requirements leftareapplied onimports for
health, consumer orenvironmental welfare andsafety, andnational security purposes. PleaseWT/ACC/KGZ/7
Page15
providealistofanyagriculturalandfoodcommoditiesthatarecurrentlysubjecttoimportlicensing
foranyreason, e.g.,safety certification, sanitary regulations, etc.
Answer:
Agricultural andfoodcommodities arenotsubject tolicensing. Allitems subject tolicensing
arelisted inTable 3-1ofAnnex 3totheMemorandum. Fooditems thataresubject tosafety certification
asdescribed inPartIVSection 3(b)areasfollows:
Products ofagriculture andfoodindustry subject tosafety certification
0201-0210 Meat andedible meatsub-products
0301-0307 Fishandcrustaceans, shellfish andother water invertebrates
0401-0410 Milkandmilkproducts, poultry eggs, natural honey, foodproducts ofanimal origin
0701-0714 Vegetables, edible tuber crops androot-crops
0901-0910 Coffee, tea,spices
0801-0814 Edible fruitandnuts, citrus andwater-melon croppeel
1001-1108 Grain bread
1101-1109 Products offlour-and-cereals industry, malt, starch, inuline, wheat gluten
1501-1522 Lardandoilofanimal andvegetable origin, products oftheirdecomposition
1601-1605 Products made ofmeat, fish,crustaceans, shellfish, other water invertebrates
1701-1704 Sugar andconfectionery made ofsugar
1801-1806 Cocoa anditsproducts
1901-1905 Products made ofgrain, flour, starch andmilk, flour confectionery products
2001-2009 Products made ofprocessed vegetables, fruitandnuts
2101-2106 Other foodstuff
2201-2209 Alcoholic andsoftdrinks, vinegar
2401-2403 Tobacco andindustrial tobacco substitutes
2501 Salt
2301-2309 Products offodder industry
Question 50.(WT/ACC/KGZ/5/Add.2, Qu.29)
Please describe indetail theadministration oftheimport licensing system.
Answer:
Applications mustbeobtained fromtheOffice oftheMinistry ofIndustry andForeign Trade.
Then theimporter mustsubmit theapplication totheappropriate expert Statebodyforapproval. Once
approved bytheexpert State body, theform must thenbereturned totheMinistry ofIndustry and
Foreign Trade andsubmitted withallother required documents forfinalapproval.
Theimport licensing system isdescribed infurther detail inAnnex 3totheMemorandum.
Question 51.(WT/ACC/KGZ/5/Add.2, Qu.30)
Weseekconfirmation ofanyareas oftheWTO Agreement onImport Licensing Procedures where
theKyrgyz Republic believes itisnotnowabletofullyimplement theAgreement from thedate
ofaccession.Forexample,Kyrgyzadministrativeguidancesuggestsapprovaloflicenceapplications
within20days-whereastheWTOAgreementonImportLicensingProcedurescallsforamaximumWT/ACC/KGZ/7
Page16
of10daysforallautomatic licences. Another problem istherequirement thatimporters obtain
multiple “expert ”certifications from various different Government entities prior tobeing able
toobtain animport licence from theMinistry ofIndustry andTrade.
Please indicate howthisandanyother deficiencies willbeaddressed prior toWTO accession.
Answer:
TheGovernment willrevise itsimport licensing system toensure conformity withtheWTO
Agreement onImport Licensing Procedures. TheKyrgyz Republic believes thatitwillbeabletofully
implement theAgreement from thedateofaccession.
Question 52.(WT/ACC/KGZ/5/Add.2, Qu.31)
WT/ACC/KGZ/3 paragraph IV(c)(xii) notes thatimports oftechnical equipment, rawmaterials,
materials, reagents, components, replacements, spare parts, semi-manufactures andother articles,
which areimported bydomestic business enterprises fortheproduction offinalproducts inthe
Kyrgyz Republic, areexempted from customs duties. Please describe thelicensing process for
obtaining thisdutyexemption, intheform ofaresponse totheQuestionnaire onimport licensing
procedures.
Answer:
Toreceive thisexemption, arequest mustbemade bythedomestic business enterprise tothe
Ministry ofIndustry andForeign Trade. TheMinistry ofIndustry andForeign Trade generally only
reviews thetypeofproduct andthequantity tobeimported. Onceapproved bytheMinistry ofIndustry
andForeign Trade, finalapproval must beobtained bytheCabinet ofMinisters. Ifsuchapproval
isobtained, theCabinet ofMinisters willissuearesolution specifying theparticular product, thequantity
andtheimporting company. Thecountry oforigin ofthemerchandise isnotaconsideration inthe
granting ofthelicence.
Question 53.(WT/ACC/KGZ/5/Add.2, Qu.32)
Aretheadministrative procedures andguidelines fortheKyrgyz import licensing system published
andavailable tothepublic? Ifso,inwhat publication aretheprocedures found?
Answer:
Yes, theyarepublished inthemonthly scientific journal Economics, which publishes the
normative actsoftheKyrgyz Republic.
Question 54.(WT/ACC/KGZ/5/Add.2, Qu.33)
Weunderstand thatthere areadditional licensing provisions intheRussia-Belarus-Kazakstan
Customs Union Agreement concerning theimportation ofprecious metals andstones. Please
indicate anyother proposed licensing provisions intheAgreement, describe theneed forthese
requirements, andprovide information ontheirapplication suchasthatprovided fortheKyrgyz
Republic ’scurrent import licences inAnnex 3.WT/ACC/KGZ/7
Page17
Answer:
Toourknowledge, there arenoimport orexport licensing requirements intheactual RBK
Customs Union Agreement, orintheagreement providing forthejoining oftheKyrgyz Republic.
However, pursuant tothe“Agreement between theGovernment oftheKyrgyz Republic andthe
GovernmentoftheRussianFederationontheCommonOrderofRegulatingForeignEconomicActivity,”
theCabinet ofMinisters issued Resolution No.56of6February 1996describing theitems forwhich
animport licensing regime isenvisaged. Note thatResolution No.56,byitsownterms, doesnot
become effective untiltheAgreement providing forthejoining oftheKyrgyz Republic totheCustoms
Union hasbeenratified.
Resolution No.56provides fortheintroduction ofanimport licensing regime forprecious
metals andstones, industrial wastes, pharmaceuticals, medical andveterinary equipment, chemical
plant protection substances, military uniforms anddecoding equipment.
ResolutionNo.56alsoprovidesfortheintroductionofanexportlicensingregimefor:(i)certain
specified seafood products (e.g., fish, molluscs, crabs, caviar); (ii)decoding equipment;
(iii)palaeontology artifacts; (iv)geology andmineralogy samples; (v)precious metals andarticles
thereof; (vi)precious andsemi-precious stones andarticles thereof; (vii)wildanimals, wildplants,
ivory, horns, hooves, coral, andthelike; (viii) organic rawmaterial fortheproduction of
pharmaceuticals; (ix)weapons andspare parts therefor; (x)explosives; (xi)nuclear materials;
(xii)militaryworksandservices;(xiii)antiquities;(xiv)informationonmineralandfossilfueldeposits;
(xv)narcotics, psychotropic items, poisons; (xvi)material andrawmaterial, equipment, technologies
andinformation ofamilitary character; (xvii) dual-use material, equipment andtechnologies;
(xviii) pharmaceuticals; (xix)means ofprotection frommilitary poisons e.g.,gasandbiologic weapons,
andtheparts therefor; (xx)military uniforms andattributes thereof.
Theabove licensing requirements areintended tofurther health, safety and/or national security
purposes.
AsResolution No.56iscontingent upon theratification oftheCustoms Union Agreement,
theimplementing regulations havenotyetbeendeveloped.
Discretionary import licensing forprotective purposes isprohibited bytheWTO except when
specifically justified, Adoption bytheKyrgyz Republic oflicensing requirements thatcannot
bejustified onhealth, safety, ornational security grounds willcomplicate itsaccession process.
(h) Customs valuation (Annex 4refers)
Question 55.(WT/ACC/KGZ/5/Add.2, Qu.34)
Annex 4toWT/ACC/KGZ/3 states thatcurrent legislation neither incorporates norotherwise
provides forimplementation ofkeyprovisions oftheWTO Agreement ontheImplementation
ofArticle VIIoftheGATT 1994 (Customs Valuation Agreement), e.g.,thattheprohibitions of
Article 7.2(b), (c),(d)and(f)oftheWTO Agreement onCustoms Valuation arenotexpressly
delineated intheProposed Customs Code, thatthere isnoprovision tousethehierarchy of
valuation methods, thatcertain transparency provisions arealsonotincluded. Italsostates,
however, thatanewCustoms Code, nowbefore thelegislature, willinclude thenecessary provisions
toaddress these concerns andtofully implement theWTO Agreement. What isthecurrent
legislative status oftheproposed Customs Code?WT/ACC/KGZ/7
Page18
Answer:
Itisunder consideration byoneoftheParliamentary Committees. Once approved bythe
committee itwillgobefore theParliament forapproval. Itisincluded inthe1997 work planforthe
parliament butnospecific timeschedule hasbeenset.
Question 56.(WT/ACC/KGZ/5/Add.2, Qu.35)
How longbefore thenewlawisimplemented?
Answer:
Parliament isduetoconsider thisnewproposed lawthisyear. TheParliament willdefine
theimplementation period.
Question 57.(WT/ACC/KGZ/5/Add.2, Qu.36)
What difficulties areforeseen inimplementing thecustoms valuation provisions ofthenewCustoms
Code law?
Answer:
Weanticipate nodifficulties other thanthose usually inherent intheimplementation ofanew
customs procedure, suchastheeducation ofthecustoms officers andtheimporting public.
Question 58.(WT/ACC/KGZ/5/Add.2, Qu.37)
Webelieve thatthedraft Customs Lawshould besubmitted forreview totheWorking Party
assoonaspossible, inorder toensure thatitsprovisions address theaspects ofCustoms Valuation
covered bytheWTO Agreement.
Answer:
Theproposed Customs Code isattached asAttachment A4.
Question 59.(WT/ACC/KGZ/5/Add.2, Qu.38)
Weseekacommitment from theKyrgyz Republic toimplement theWTO Customs Valuation
Agreement from thedateofaccession.
Answer:
TheKyrgyz Republic confirms thatitwillimplement theWTO Customs Valuation Agreement
from thedateofaccession.WT/ACC/KGZ/7
Page19
(i) Other customs formalities
Question 60.(WT/ACC/KGZ/5/Add.2, Qu.39)
Article VIIIofGATT 1947 states thatfeesassociated withimports must belimited tothecost
ofservices rendered andshall notindirectly provide protection fordomestic products. Listed as
oneofthe“other customs formalities ”isafeetobepaidatthemoment offiling theimport
declaration.
Answer:
Thefeereferredtounder“othercustomsformalities”referstotheclearancefeeof0.15percent.
Question 61.(WT/ACC/KGZ/5/Add.2, Qu.40)
Please list,describe, andexplain thereason forapplication ofallfeesinvolved inimporting a
product. Please describe indetail therelationship oftheamount ofthefeetothepricing structure
fortheassociated service.
Answer:
- clearance fee:0.15%;
- importlicence:750soms(currently,aboutUS$45)-theamountcurrentlyequalto“tenminimum
salaries ”;
- licence extension: 350soms (currently, about US$20);
- certificate ofcompliance: 600-1500 soms (currently, about US$35-90), depending onthetype
oflaboratory testsrequired;
- phytosanitary certificate: 76-166 soms depending onthetypeofproduct. Ifthetotalweight
oftheproduct islessthan300kg therequired payment willbe10percentoftheotherwise
applicable amount. Iftheweight isfrom300kg-1000kg therequired payment willbe50percent
oftheotherwise applicable amount;
- veterinary certificate: forgoods having avalue equal toorlessthan5000 soms, afeeequal
to0.5percentofthevalue isassessed; forgoods having avalue exceeding 80,000 soms, a
feeequal to350soms plus0.1percentofthevalue isassessed; forgoods having avalue
inexcess of5000 soms butlessthan80,000 soms, avariety offormulas areapplied that
gradually reduce theamount ofthefeeinadvalorem terms;.
- hygienic certificate: 70-800 soms depending onthetypeoflaboratory testsrequired.WT/ACC/KGZ/7
Page20
(j) Pre-shipment inspection
Question 62.(WT/ACC/KGZ/5, Qu.23)
WilltheKyrgyz Republic undertake that,should anypreshipment inspection system beintroduced
inthefuture, theoperation ofsuchasystem willbeconsistent withtherelevant WTO Agreements,
inparticular, onPreshipment Inspection andCustoms Valuation?
Answer:
TheKyrgyz Republic hasnoplans tointroduce anypreshipment inspection requirements;
however, ifsuchrequirements areintroduced, theKyrgyz Republic commits thatitwillensure that
suchrequirements areconsistent withtherelevant WTO Agreements.
(k) Application ofinternal taxes onimports
Question 63.(WT/ACC/KGZ/5, Qu.25)
TheMemorandummentionstheKyrgyzRepublic’spolicyonnationaltreatmentoninternaltaxation
butnotonregulatory aspects ofsale, offering forsale, purchase, transportation, distribution
oruse. What isthecontent oftheKyrgyz Republic ’spolicy inthisarea? Please explain how
itcomplies withArticle III.4 ofGATT?
Answer:
Imported goods aresubject tonational treatment onallregulatory aspects ofsale,offering for
sale,purchase, transportation, distribution anduse.Itisthepolicy oftheKyrgyz Republic tomaintain
thisnational treatment regime forimported products. Bothlawandpolicy inthisareaconform to
Article III.4oftheGATT.
Question 64.(WT/ACC/KGZ/5, Qu.26)
AreVAT exemptions applied withfullrespect forthenational treatment andm.f.n. principles?
Answer:
Yes.
Question 65.(WT/ACC/KGZ/5, Qu.27)
Does theKyrgyz Republic accept thatitscurrent excise taxsystem (with itsdifferent levels and/or
methods ofcalculation forimported anddomestically produced goods) isnotcompatible with
Article IIIoftheGATT 1994?
Answer:
Yes,theexisting system ofexcise taxesstipulates different methods ofcalculation forimported
anddomestic goods. Thenecessity forusing twomethods forcalculating excise taxes iscaused by
thefactthatimported goods often haveprices thatarehigher thanthose ofsimilar domestic goods.
Inthisrespect, equal absolute rates ofexcise taxforimported anddomestic products would meanWT/ACC/KGZ/7
Page21
relatively higher ratesfordomestic products. Excise ratesinpercentages arehigher foralmost all
domestic goods incomparison withratesforimported goods. Thissituation provides arelative price
advantage inthemarket ofimported goods overdomestic production.
Question 66.(WT/ACC/KGZ/5/Add.2, Qu.47)
Article IIIoftheGATT 1994(national treatment) stipulates thattaxes onimported goods should
benohigher thansuchtaxes ondomestic production. Article I(m.f.n.) requires thattaxes applied
toimports from WTO members should benohigher thanthose applied toimports from non-WTO
sources. InAnnex 9,theKyrgyz Republic indicates thatthere isaconsiderable disparity inthe
rates ofexcise taxforimported anddomestic goods. WenotethatthenewTaxCode, which came
intoeffect on1July1996, continues thisdiscriminatory treatment foralarge number ofproducts.
What aretheKyrgyz Republic ’splans fortheelimination ofthisdiscriminatory treatment?
Answer:
Seeanswer toQuestion 65above.
Question 67.(WT/ACC/KGZ/5, Qu.28)
What measures istheKyrgyz Republic taking tobring itsexcise taxsystem intolinewiththe
national treatment principle? What istheanticipated timetable?
Answer:
Currently, inaccordance withtheTaxCode, newexcise taxratesforimported anddomestic
goods havebeendeveloped (seeanswer toquestion 69below). Thepolicy oftheKyrgyz Republic
inthesphere ofexcise taxisaimed atthecreation ofoneequal excise taxregime forimported and
domestically produced goods. Itisexpected thatthismatter willberesolved by1January 1998.
Question 68.(WT/ACC/KGZ/5, Qu.29)
Please confirm that,except forVAT andexcise tax,noother internal taxes arelevied onimported
goods.
Answer:
Currently, theonlyinternal taxes towhich imported goods aresubject aretheVAT andexcise
taxes.
Question 69.(WT/ACC/KGZ/5, Qu.30)
ForAnnex 9,please provide thefulllistoftariff headings (toHS6or8-digits) ofallitems subject
toexcise tax.
Answer:
On24December 1996, theLegislative Assembly, oneofthetwochambers ofParliament,
approved thefollowing tableofexcise taxrates. Thematter isnowpending before theother chamber,
theAssembly ofPeople ’sRepresentatives. TheGovernment believes that,although theexcise taxratesWT/ACC/KGZ/7
Page22
applicable tocertain items maychange before finaladoption andapproval bythePresident, the
descriptionofgoodsandtheapplicabletariffcodenumbers,withtheexceptionofthepossibleelimination
ofcoffee andcocoa, willnotchange .
Proposed excise taxrégime
Goods Domestic Rates Import Rates Codes
Ethyl alcohol andpurified ethyl alcohol
produced from rawmaterials (except
those imported byspecial consumers
within stipulated limits)$1.4 /litre $1.4/litre 2207
Vodka $0.90/litre $0.90/litre 220890110-22089
0390
Liqueurs andvodka products $0.90/litre $0.90/litre 220810,
220830,
220890510-22089
0790,
220890910,
220890990
Alcoholized beverages, juice andbalsam1$0.90/litre $0.90/litre 220840-
220850
Grape wine
other wines$0.35/litre
$0.29/litre
Wine $0.35/litre 220421-220429,
2205, 2206
Cognac $0.60/litre $0.80/litre 220820100
Sparkling wines $0.40/litre $0.45/litre 220410
Beer:
-packaged
-unpackaged$0.08/litre
$0.05/litre$0.25/litre 2203
Raw materials forwine production $0.15/litre $0.20/litre 220430
Tobacco products
-filter cigarettes
-unfiltered cigarettes$1.5/1000 each
$0.75/1000 each$5/1000 each
$2/1000 each2402
2402
Other tobacco-containing items, including
fermented tobacco12% 240110,
240120, 2403
Golden, platinum orsilver jewellery 20% 30% 7113-7118
Processed andrawfurhides (other than
mole, rabbit, deer, dogandsheep skin)0% 10% 4110,
4103-4104,
4106-4109
1Excise taxratesarecalculated based onthecontent ofethylalcohol insuchitems, thebasebeing
abeverage containing 45percentalcohol.WT/ACC/KGZ/7
Page23
Goods Domestic Rates Import Rates Codes
Wearing apparel made ofnatural fur,
including coats, short-coats, jackets,
capes, stoles, scarves, headgear, collars,
furcoats andfurpieces (other than
apparel make ofhides ofmole, rabbit,
dog, deerorsheep skin)0% 10% 4303
Coats, short-coats, jackets andcapes
trimmed withfur(other thanmole,
rabbit, dog, deerorsheep skin)0% 10% 4303
Clothing made ofnatural leather 0% 10% 4203
Crystalware 0% 30% 701321,
701331,
701391
Firearms andgasweapons (other than
those acquired fortheneeds ofState
agencies)10% 20% 9301-9393,
9305-9306
Oilproducts:
-gasoline, softandmedium distillates $45/ton$45/ton 2707,
271000330,
271000350,
271000390,
271000110,
271000150,
271000210,
271000250,
271000410,
271000450
Aircraft fuel $45/ton 271000510-27100
0590
Diesel fuel $0/ton $45/ton 271000610-,
271000650,
271000690
Black oil $0/ton $0/ton 271000710,
271000750,
271000790
Other $0/ton $0/ton 271000550,
271000910,
271000930,
271000990
Coffee andcocoa products 10% 0901, 1801,
1803-1805
Carpets andrugs(except floor coverings) 0% 35% 57
Question 70.(WT/ACC/KGZ/5/Add.2, Qu.49)
Forthose items made subject toexcise taxation bythenewTaxCode, which came intoeffect
on1July1996, when doestheKyrgyz Republic expect tosubmit theapplicable excise taxrates
toParliament?WT/ACC/KGZ/7
Page24
Answer:
Seeanswer toQuestion 69above.
Question 71.(WT/ACC/KGZ/5/Add.2, Qu.41)
Please identify, including HStariff number, those imported capital goods eligible forVAT
exemption, duetotheir importation byalegalentity orentrepreneur foruseinits/his productive
economic activity. Please describe thecriteria applied indetermining eligibility forthisVAT
exemption.
Answer:
Criteria foreligibility ofthisVAT exemption isthattheymustbecapital goods andnotfor
resale. Capital good aregoods thatcostmore than45minimum salaries (oneminimum salary is
currently 75som) (45minimum salaries isapproximately US$200) andthecapital good musthave
alifeofmore thanoneyear.
Capital goods donotinclude rawmaterials.
Question 72.(WT/ACC/KGZ/5/Add.2, Qu.42)
Please identify, including HStariff number, anyimported products thathave beenspecified as
VAT-exempt bytheState Customs Inspectorate. What werethereasons fortheexclusion ofthese
products from VAT?
Answer:
Although theTaxCode provides forsuchanexemption, thisexemption hasnotyetbeen
implemented.
Question 73.(WT/ACC/KGZ/5/Add.2, Qu.43)
TheMemorandum states thatCIScountries charge aVAT onexports toother CIScountries.
Does thismean thatimports from CIScountries intheKyrgyz Republic donotpayVAT taxes
atthetimeofimportation?
Answer:
TheVAT isnotassessed atthetimeofimportation onimports originating fromaCIScountry.
Iftheimporter thensellsthegoods intheKyrgyz Republic, theVAT isassessed atthetimeofsale;
however, theimporter isentitled toclaim aVAT credit intheamount oftheVAT paidonthegoods
inanother CIScountry.
Question 74.(WT/ACC/KGZ/5/Add.2, Qu.44)
Does theKyrgyz Republic rebate VAT taxes onexports (a)toCIScountries; and/or (b)toother
countries?WT/ACC/KGZ/7
Page25
Answer:
VAT taxes arerebated onexports tonon-CIS countries, butnotonexports toCIScountries.
Question 75.(WT/ACC/KGZ/5/Add.2, Qu.45)
WT/ACC/KGZ/3statesthatgoodssubjecttoexcisetaxesareexemptfromcustomsduties.However,
itappears thatanumber ofgoods inAnnexes 9and10areprovisionally subject tobothexcise
taxes andcustoms duties. Please explain thisapparent contradiction.
Answer:
Currently,allgoodssubjecttoexcisetaxesareexemptfromcustomsduties.NotethatAnnex10
toWT/ACC/KGZ/3 contains aproposed tariffschedule. Ifandwhen anewtariffschedule isadopted,
itwillprovide forratesofduties onallproducts, including those subject toexcise taxes; however,
thenotes tothattariff schedule willmake itclearthatthose ratesarenottobeapplied togoods that
aresubject toexcise taxes.
Question 76.(WT/ACC/KGZ/5/Add.2, Qu.46)
Willcustoms duties beeliminated onthose items?
Answer:
Seeanswer above.
Question 77.(WT/ACC/KGZ/5/Add.2, Qu.48)
Weunderstand thatneither VAT norexcise taxes areapplied toimports from CIScountries.
Please indicate howthiswillbealtered prior toaccession.
Answer:
Excise taxes areapplied totheconcerned imports fromallcountries, including CIScountries.
TheKyrgyz Republic currently supports theconcept ofbringing itsVATsystem intoconformity
with accepted world practice: i.e.applying theVAT toallgoods soldorimported intothe
Kyrgyz Republic regardless oftheircountry oforigin, andexempting exported goods regardless of
theircountry ofdestination. Nevertheless, itshould benoted thattheagreement ofother CIScountries
mustbeobtained toaccomplish this.Uncoordinated unilateral transition mayleadtoasituation ofdouble
taxation onCISimports, thereby causing are-orientation oftrade andthepossible imposition of
reciprocal measures byCIScountries onKyrgyz exports.
Thisissueisthetheme ofthediscussion ofexperts atmeetings oftheInter-State Council and
theIntegration Committee andcurrently itisimpossible todetermine theconcrete terms ofwhen or
howthetransition willbeaccomplished.
Question 78.(WT/ACC/KGZ/5, Qu.24)
ArticleXXIVoftheGATT1994doesnotexemptRegionalIntegrationAgreementsfromapplication
ofthem.f.n. principle withregard tointernal taxation. Please indicate when theKyrgyz RepublicWT/ACC/KGZ/7
Page26
intends tobring itssystem ofVAT application intolinewithArticle IoftheGATT 1994, sothat
itisapplied equally toimports from allthird countries.
Answer:
Seeanswer toQuestion 77above.
(l) Rules oforigin
Question 79.(WT/ACC/KGZ/5, Qu.31)
Does theKyrgyz Republic have anylegislation requiring thatgoods (imported ordomestically
produced) must bemarked withrespect tocountry oforigin?
Answer:
TheKyrgyz Republic currently hasnocountry oforigin marking requirement.
Question 80.(WT/ACC/KGZ/5, Qu.32)
Isproof oforigin required forproducts originating from allcountries oronlyfrom those countries
exporting totheKyrgyz Republic under apreferential scheme?
Answer:
Certificates oforigin arerequired forallimported goods.
Question 81.(WT/ACC/KGZ/5, Qu.33)
Where proof oforigin isrequired, what constitutes thatproof?
Answer:
Acertificate oforigin thatiscertified byanauthorized governmental body inthecountry of
origin.
Question 82.(WT/ACC/KGZ/5, Qu.34)
Please provide amore detailed explanation ofhowthecountry oforigin isascertained.
Answer:
Currently, theKyrgyz Republic relies almost entirely onthecertificate oforigin. However,
theproposed Customs Code includes themethods specified intheKyoto Convention Annex. Assuming
thattheproposed Customs Code ispassed byParliament initscurrent form, theKyrgyz Republic will
needtodevelop regulations ontheimplementation ofthecountry oforigin methods. Itisenvisaged
thattheprimary method tobeusedwillbethetariff shiftmethod.WT/ACC/KGZ/7
Page27
Question 83.(WT/ACC/KGZ/5, Qu.35)
HastheKyrgyz Republic adopted specific criteria andformula ofcalculation withrespect tothe
criteria of(ii)and(iii)onpage 30?
Answer:
With respect tocriterion (ii),theproposed Customs Code contains alistofoperations that
areconsidered asinsufficient toconfer origin. Alistofoperations thatwould beconsidered assufficient
toconfer origin hasnotbeendeveloped. Noother specific implementing regulations orrules have
asyetbeendeveloped.
With respect tocriterion (iii),nospecific implementing regulations orruleshaveasyetbeen
developed.
Question 84.(WT/ACC/KGZ/5/Add.2, Qu.50)
TheKyrgyz Republic states thatitsCustoms laws generally follow thetransitional disciplines
governing rules oforigin. Does theKyrgyz Republic intend toadopt inlawtherules oforigin
thatarebeing developed intheWTO?
Answer:
TheKyrgyz Republic doesintend toadopt inlawtherulesoforigin thatarebeing developed
intheWTO.
(m) Anti-dumping régime
Question 85.(WT/ACC/KGZ/5, Qu.36)
Could theKyrgyz Republic please provide acopyofitsCustoms Tariff Lawprovisions applying
inthecaseofdumping practices andanyother rulewhich may enter play inantidumping
enforcement, including theProposed Customs Code?
Answer:
Theprovisions oftheCustoms Tariff Lawapplicable todumping, thirdcountry subsidization,
safeguards, warning measures andretaliatory trade measures areincluded inAttachment A7hereto.
Thecorresponding provisions oftheProposed Customs Tariff Lawareincluded inAttachment A8.
Question 86.(WT/ACC/KGZ/5, Qu.37)
Onemember oftheWorking Party notes thatKyrgyz anti-dumping rules’injury standard
(“damage ”)anddefinition ofdomestic manufactures (“manufacturers ofsimilar ordirectly
competing goods ”)asdescribed intheMemorandum (para. IV.1(m)) differ from thedefinitions
intheWTO Anti-Dumping Agreement. Could theKyrgyz Republic please comment onthe
WTO-compatibility ofthose requirements?WT/ACC/KGZ/7
Page28
Answer:
TheGovernment oftheKyrgyz Republic isintheprocess ofdrafting aWTO-compliant law
onextraordinary trademeasures thatwillcontain detailed provisions onanti-dumping, countervailing
dutyandsafeguard actions. TheKyrgyz Republic willprovide acopy ofthedraft lawwhen itis
finalized.
Question 87.(WT/ACC/KGZ/5/Add.2, Qu.51)
Both theCustoms Tariff Law andtheproposed Customs Code provide fortheimposition of
anti-dumping duties inanamount “...thatdoesnotexceed thedifference between theprice of
thedumped goods atthemoment ofexport andtheaverage price oflikeordirectly competitive
goods intheKyrgyz market. ”However, GATT Article VIlimits theamount ofduties tothe
amount ofthemargin ofdumping, which isthedifference between theprice ofthedumped good
andtheprice forthelikeproduct destined forconsumption intheexporting country, or,inthe
absence ofsuchdomestic price, thehighest comparable price forthelikeproduct forexport to
anythird country, orthecostofproduction oftheproduct inthecountry oforigin plusa
reasonable addition forselling costandprofit. Itappears thatthelegislation oftheKyrgyz
RepublicdoesnotatpresentfullyconformtoWTOprovisionsinthisarea.Haveeffortscommenced
toamend proposed Customs Code tobring itintoconformity withGATT Article VIandtheWTO
Agreement onAntidumping?
Answer:
Theprovisions relating totheimposition ofdumping duties havenever beenutilized orfully
developed indetail. TheGovernment oftheKyrgyz Republic isintheprocess ofdrafting a
WTO-compliant lawonextraordinary trade measures thatwillcontain detailed provisions on
anti-dumping, countervailing dutyandsafeguard actions. TheKyrgyz Republic willprovide acopy
ofthedraftlawwhen itisfinalized.
(n) Countervailing dutyregime
Question 88.(WT/ACC/KGZ/5, Qu.38)
Could theKyrgyz Republic provide acopyofitsCustoms Tariff Lawprovisions andanyother
rules applicable inthecaseofthird country subsidization, including theProposed Customs Code?
Answer:
SeeAttachments A7andA8.
Question 89.(WT/ACC/KGZ/5, Qu.39)
Onemember oftheWorking Party notes thatKyrgyz CAD rules’injury standard (“damage ”)
anddefinition ofdomestic manufactures (“manufactures ofsimilar ordirectly competing goods ”)
asdescribed intheMemorandum (para. IV.1(n)) differ from thedefinitions intheWTO SCM
Agreement. Could theKyrgyz Republic please comment ontheWTO-compatibility ofthose
requirements?WT/ACC/KGZ/7
Page29
Answer:
TheGovernment oftheKyrgyz Republic isintheprocess ofdrafting aWTO-compliant law
onextraordinary trademeasures thatwillcontain detailed provisions onanti-dumping, countervailing
dutyandsafeguard actions. TheKyrgyz Republic willprovide acopyofthedraftlawwhen itisfinalized.
Question 90.(WT/ACC/KGZ/5/Add.2, Qu.52)
DotheCustoms Tariff Lawandtheproposed Customs Code limit thecountervailing duties to
theamount equal totheestimated bounty orsubsidy determined tohave been granted, directly
orindirectly, onthemanufacture, production orexport oftheproduct inthecountry oforigin
orexportation, including anyspecial subsidy tothetransportation ofaparticular product? Please
discusshowtheKyrgyzRepublicintendstoincorporateWTOprovisionsinthisareinitslegislation.
Answer:
Theprovisions relating totheimposition ofcountervailing duties havenever beenutilized or
fullydeveloped indetail. TheGovernment oftheKyrgyz Republic isintheprocess ofdrafting amore
detailed WTO-compliant lawonextraordinary trade measures thatwillcontain detailed provisions on
anti-dumping, countervailing dutyandsafeguard actions. TheKyrgyz Republic willprovide acopy
ofthedraftlawwhen itisfinalized.
(o) Special purpose duties
Question 91.(WT/ACC/KGZ/5, Qu.40)
Could theKyrgyz Republic provide acopy ofitsCustom Tariff Lawprovisions andanyother
rules applicable intheareaofsafeguard measures, including theProposed Customs Tariff Law?
Answer:
SeeAttachments A7andA8.
Question 92.(WT/ACC/KGZ/5, Qu.41)
OnememberoftheWorkingPartynotesthatKyrgyzsafeguardrules’injurystandard(“damage”),
asdescribed intheMemorandum (para. IV.1(n)) differs from thedefinitions oftheWTO
SCM Agreement. Could theKyrgyz Republic please comment ontheWTO-compatibility ofthose
requirements? Furthermore, could itconfirm thatnoquantitative restrictions areimposed as
safeguard measures?
Answer:
TheGovernment oftheKyrgyz Republic isintheprocess ofdrafting aWTO-compliant law
onextraordinary trade measures thatwillcontain detailed provisions onanti-dumping, countervailing
dutyandsafeguard actions. Furthermore, theGovernment oftheKyrgyz Republic confirms thatno
quantitative restrictions areorwillbeusedassafeguards. TheKyrgyz Republic willprovide acopy
ofthedraftlawwhen itisfinalized.WT/ACC/KGZ/7
Page30
Question 93.(WT/ACC/KGZ/5, Qu.42)
Could theKyrgyz Republic please elaborate onitswarning measures andretaliation measures?
How dothetwomeasures differ inscope, substantive requirements andprocedures leading to
their adopting? What sortofnational interests maybeconsidered asjustifying their adoption?
How would theyrelate toWTO dispute settlement procedures?
Answer:
TheKyrgyz Republic isintheprocess ofdrafting aWTO-compliant lawonextraordinary trade
measuresthatwillcontaindetailedprovisionsonanti-dumping,countervailingdutyandsafeguardactions.
Question 94.(WT/ACC/KGZ/5/Add.2, Qu.53)
Aretheprovisions oftheCustoms Tariff LawandtheProposed Customs Tariff Lawauthorizing
theimposition of“special purpose duties ”consistent withtherequirements oftheWTO Agreement
onSafeguards?Pleasedescribefullyanyprovisionsthatarenotinconformitywiththerequirements
oftheSafeguards Agreement.
Answer:
Theprovisions relating totheimposition ofspecial purpose duties havenever beenutilized
orfullydeveloped indetail. TheGovernment oftheKyrgyz Republic isintheprocess ofdrafting a
WTO-compliant lawonextraordinary trade measures thatwillcontain detailed provisions on
anti-dumping, countervailing dutyandsafeguard actions. Furthermore, theGovernment oftheKyrgyz
Republic confirms thatnoquantitative restrictions areorwillbeusedassafeguards. TheKyrgyz
Republic willprovide acopyofthedraftlawwhen itisfinalized.
Question 95.(WT/ACC/KGZ/5/Add.2, Qu.54)
WilltheWarning Measures provided bytheexisting Customs Tariff Lawcontinue ineffect after
enactment oftheproposed Customs Tariff Law? What ismeant bytheterm“violating theinterests
ofthecountry ”?
Answer:
No.Theproposed Customs Tariff Law, ascurrently drafted, doesnotcontain provisions on
warning measures. Theadoption oftheproposed Customs Tariff Lawwillrepeal theexisting Customs
Tariff Law. Thewarning measures provided forintheexisting Customs Tariff Lawhavenever been
utilized orfullydeveloped indetail. Therefore, itisnotpossible toprovide adefinition of“violating
theinterests ofthecountry ”.
Question 96.(WT/ACC/KGZ/5/Add.2, Qu.55)
Arethere anyprovisions oftheAnti-Monopoly Lawspecifically applicable toforeign firms or
imported products?
Answer:
NoWT/ACC/KGZ/7
Page31
Question 97.(WT/ACC/KGZ/5/Add.2, Qu.56)
Arethespecial purpose duties authorized bytheexisting andproposed Customs Tariff Laws equal
tothepenalties assessed ondomestic firms engaged inunfair competition pursuant tothe
Anti-monopoly Law?
Answer:
No.
Question 98.(WT/ACC/KGZ/5/Add.2, Qu.57)
Please describe theapplicable provisions oftheAnti-monopoly Law.
Answer:
TheAnti-monopoly Lawhasnospecific provisions toaddress unfair foreign trade practices.
Theproposed lawonextraordinary trademeasures mayinclude specific provisions addressing unfair
trade practices byforeign firms.
2. Export Regulation
(d) Export licensing procedures
Question 99.(WT/ACC/KGZ/5, Qu.43)
Does theprinciple ofnational treatment apply forissuing export licences?
Answer:
Yes.
Question 100.(WT/ACC/KGZ/5, Qu.44)
Please provide amore detailed explanation ofhowtheexport licensing system formetals operates.
Answer:
AsnotedintheMemorandum,theexportationofferrous,preciousandrare-earthmetalsextracted
and/or processed intheKyrgyz Republic requires anexport licence. Anymanufacturing/mining entity
orintermediary entity (regardless offormorownership) iseligible toapply. Thelicence application
must besubmitted totheMinistry ofIndustry andTrade. When applying foranexport licence, an
applicant mustsubmit: (i)anapplication onastandard form; (ii)acopyoftheexport contract; (iii)a
copyoftheapplicable bilateral agreement ondeliveries, ifany; and(iv)ashort description ofhow
thetransaction benefits theKyrgyz Republic.
Thelicence istobeprepared andgranted within 20daysafterthereceipt oftheapplication
andallrequired supporting documentation. Thelicence isnon-transferable. Once thelicence hasbeen
granted, therecipient must provide ittotheState Customs Inspectorate together withacustoms
declaration. A“single shipment ”licence mustbeusedwithin sixmonths from thedateofissuance.
A“multiple shipment ”licence must beusedwithin 12months.WT/ACC/KGZ/7
Page32
Question 101.(WT/ACC/KGZ/5/Add.2, Qu.58)
Cabinet ofMinisters Resolution No.56of6February 1996 provides forlicensing requirements
andcontrols onexports. These include licensing restrictions fortextile goods, wearing apparel,
silicon carbide, ammonium nitrate, andrawaluminum, required bybilateral agreements between
theRussian Federation andtheEuropean Union, andforgeneral exports ofprecious stones,
precious metals, articles containing precious metals, andprecious metal waste. Arethese
requirements currently ineffect intheKyrgyz Republic? Ifnot,please elaborate onthetiming
oftheir implementation?
Answer:
Currently, Cabinet Ministers Resolution No.56of6February 1996 isnotineffect. This
resolution willcome intoforce ifandwhen theCustoms Union Agreement isratified byParliament.
Question 102.(WT/ACC/KGZ/5/Add.2, Qu.59)
What isthefunctional justification forthese restrictions andhowwilltheKyrgyz Republic justify
them under WTO provisions?
Answer:
These restrictions willcome intoforce onlyiftheKyrgyz Republic becomes amember ofthe
Customs Union. Inthatevent, internal customs barriers between andamong Russia, Belarus, Kazakstan
andtheKyrgyz Republic willgradually bedismantled. Inthecurrent transitional period, suchasituation
could provide alargeopportunity forthemisappropriation andexport ofcertain high-value commodities
ofthemember countries. Therefore, theseexport licensing requirements areintended toprovide some
degreeofcontroloversuchunlawfulactivity.Fromourperspective,thesemeasures-whichareintended
tolastforthetransitional period -arejustifiable national security controls.
Question 103.(WT/ACC/KGZ/5/Add.2, Qu.60)
IsCabinet ofMinisters Resolution No.373,adopted on25August 1995, OnIncreasing theLiability
forUnauthorized Purchase andSaleoftheFragments andWaste ofNon-Ferrous andFerrous
Metals andtheir Industrial Fragments (Resolution No.373)stillineffect?
Answer:
Yes
Question 104.(WT/ACC/KGZ/5/Add.2, Qu.61)
Please describe thelawthatisbeing considered byParliament which deals withthissubject matter.
Answer:
Thegoalofthedraftlawistoprotect electric transmission andcommunication linesandferrous
andnon-ferrousmetalitemsfromtheftbypersonsdesiringtoresellthosemetalstoscrapmetalprocessing
firms. According tothedraftlaw,aperson desiring topurchase and/or export suchitems musthold
alicence. Under thedraftlaw,licensed persons maypurchase onlythose items thatarespecified by
theCabinet Ministers inanimplementing resolution. Under thedraftlaw,anycompany thatproducesWT/ACC/KGZ/7
Page33
waste offerrous ornon-ferrous metals isobligated toreport thekindandamount ofsuchwaste. The
export andimport ofsuchitems must belicensed. Engaging insuchactivity without alicence is
punishable bymonetary finesandtheconfiscation ofillegally purchased orusedwastes.
Question 105.(WT/ACC/KGZ/5/Add.2, Qu.62)
Please identify, including HStariff number, theferrous andnonferrous metal fragments and
wastes which aresubject totheexport licensing requirement.
Answer:
Itmustfirstbenoted thatferrous metal fragments andwaste arenotsubject toexport licensing.
Thefollowing isalistofthenon-ferrous metal andwastes andscrap thereof, andHStariff number,
subject toexport licensing:
7404 Copper wastes andscrap
7503 Nickel wastes andscrap
7802 Lead wastes andscrap
7602 Aluminum wastes andscrap
9702 Zincwastes andscrap
8002 Tinwastes andscrap
8101 Wolfram andarticles thereof, including wastes and
scrap
2611
2825
8102 Molybdenum andarticles thereof, including wastes and
scrap
2613
2825
8103 Tantalum wastes andscrap
8104 Magnum wastes andscrap
8105 Cobalt wastes andscrap
8106 Bismuth wastes andscrap
8107 Cadmium wastes andscrap
8108 Titanium wastes andscrap
8109 Zirconium wastes andscrap
8110 Antimony andarticles thereof, including wastes and
scrap
2617 Antimony concentrates
2825 Antimony oxides
8111 Manganese wastes andscrap
8112 Rhenium andarticles thereof, including wastes and
scrap
8112 Chrome, germanium, vanadium, beryllium andniobium
wastes andscrapWT/ACC/KGZ/7
Page34
(f) Export financing, subsidy, andpromotion policies
Question 106.(WT/ACC/KGZ/5, Qu.45)
CantheKyrgyz Republic confirm thatitdoesnotmaintain, andhasnointention ofintroducing
inthefuture, anyexport subsidies?
Answer:
Except fortheprofits taxreduction described inSection IV.3(d) oftheMemorandum onthe
Foreign Trade Regime, theKyrgyz Republic confirms thatitdoesnotcurrently andwillnotinthe
future maintain anyexport subsidies.
Question 107.(WT/ACC/KGZ/5/Add.2 -)
WenotethattheKyrgyz Republic hasnopolicies ormeasures tofinance exports.
Question 108.(WT/ACC/KGZ/5/Add.2 -)
Because export subsidies arethemost trade distorting forms ofsupport, westrongly encourage
youtocommit tobinding export subsidies atzeroforallproducts.
3. Internal Policies Affecting Foreign Trade inGoods
(a) Industrial policy, including subsidy policy
Question 109.(WT/ACC/KGZ/5, Qu.46)
Please provide theWorking Party with acopy oftheReport onDomestic Support Measures
mentioned inthisSection.
Answer:
Thisreport hasalready beensubmitted.
(b) Technical regulations andstandards, including border measures
Question 110.(WT/ACC/KGZ/5, Qu.47)
Does theKyrgyz Republic anticipate anydifficulties inapplying theTBT Agreement infullon
accessing?
Answer:
Yes. Themost significant difficulties willbethefollowing:
- Receiving andtransmitting thenecessary information inoneoftheaccepted languages ofthe
WTO.
- Forimplementation ofpoint 6ofArticle 2,theKyrgyz Republic willnothavetheability to
participate fully inthework ofinternational organizations onstandardization dueto:
(i)insufficient financing forthiswork; (ii)alackofspecialists experienced inthedevelopmentWT/ACC/KGZ/7
Page35
ofinternational standards; and(iii)theslowpaceofestablishing theinfrastructure needed
todevelop standards andtechnical regulations.
- Organizational difficulties areexpected inimplementing point11ofArticle 2,regarding timely
publication ornotification oftechnical regulations.
- Theinquiry pointonstandards andtechnical regulations required bypoint10.1.1 ofArticle 10
isonlyintheinitial stage offormation.
- Membership inISONET poses organizational-technical andfinancial difficulties for
Kyrgyzstandard atthistime.
Question 111.(WT/ACC/KGZ/5, Qu.48)
Could theKyrgyz Republic please provide anoverview ofregulations relating todifferent
products/product areas.
Answer:
Anoverviewofthevariousregulationsrelatingtodifferentproductsandproductareasisprovided
inAnnex 5totheMemorandum onForeign Trade Regime oftheKyrgyz Republic.
Question 112.(WT/ACC/KGZ/5, Qu.49)
Arethestandards used intheKyrgyz Republic voluntary ormandatory; ifmandatory, could
theKyrgyz Republic please state therational behind this?
Answer:
According toLaw“OnProtection ofConsumers ’Rights ”,requirements forproducts which
bytheirnature poseasubstantial potential threat totheenvironment orthesafety, livesand/or health
ofcitizens aremandatory andareestablished innormative documents onstandardization which are
mandatory.
Other requirements (indications) arevoluntary.
Question 113.(WT/ACC/KGZ/5, Qu.50)
HastheKyrgyz Republic theintention ofgradually moving from theuseofGOST-standards to
theuseofinternational standards; ifso,what isthetimetable andthepriorities forthis
change-over?
Answer:
Yes. TheKyrgyz Republic isamember oftheCISInter-Governmental Council on
Standardization,MetrologyandCertification.ThisorganizationhasbeenrecognizedbyISOasaregional
organization acting incompliance withitsrequirements. Membership inthisorganization ensures the
eventual implementation andusage ofinternational standards intheKyrgyz Republic. Aspecific
timetable forandthepriorities inthischange-over hasnotyetbeendeveloped.WT/ACC/KGZ/7
Page36
Question 114.(WT/ACC/KGZ/5, Qu.51)
Could theKyrgyz Republic please provide more in-depth information ontheprocedures and
requirementsconnectedwiththemandatoryandthevoluntarysystemofcertification.Forexample:
Does theKyrgyz Republic certification system contain thepossibility ofusing amanufactures ’
declaration? Does theKyrgyz Republic usepre-market certification inanyproduct areas?
Answer:
Inaddition totheinformation oncertification provided inAnnex 5totheMemorandum, it
should benoted thatthesystem ofcertification ineffect intheKyrgyz Republic isharmonized with
thesystems ofcertification ineffect intheRussian Federation andother CIScountries, andwiththe
regulations ofISO/IEC andEuropean standards ofserial No.EN45000. Thecertification rulesand
regulations oftheKyrgyz Republic aresetforthin44different setsofregulations, ofwhich 20have
general applicability and24apply tospecific products orproduct groups. These documents contain
detailedinformationontheproceduresandrequirementsrelatedtomandatoryandvoluntarycertification.
Goods forwhich State standards have been established forthepurpose ofprotecting the
environment orthelife,health andproperty ofcitizens aresubject tomandatory certification bythe
appropriate ministry orState body, andthesubsequent issuance byKyrgyzstandard ofacertificate
ofconformity andalicence tomark theconcerned goods witha“mark ofconformity. ”Saleorimport
ofsuchgoods intheKyrgyz Republic without suchpriorcertification andmarking isprohibited. List
ofgoods thataresubject tomandatory certification isdeveloped byKyrgyzstandard.
Goods thatarenotsubject tomandatory certification inaccordance withthelegislation ofthe
Kyrgyz Republic maybecertified onavoluntary basis. Such certification iscarried outonthebasis
ofanagreement between theapplicant andKyrgyzstandard. Voluntary certification canalsobedone
byanybody authorized bytheKyrgyzstandard todoso.Themethod ofvoluntary certification is
chosen bytheapplicant from those accepted byKyrgyzstandard.
Generally, theissuance ofacertificate andmark ofconformity requires: (i)thefiling ofan
application withtheresponsible ministry orStatebody; (ii)areview oftheapplication, including the
choice ofcertification method; (iii)theidentification andselection ofsamples andtheirtesting; (iv)a
review ofthetestresults andacomparison withtheapplicable standards; and(v)theissuance ofa
certificate ofconformity andalicence tousethemark ofconformity.
Generally, intheKyrgyz Republic itispossible forthecertifying bodytoaccept thedeclaration
ofamanufacturer orproducer. Atthistime, theacceptability ofsuchadeclaration iswithin the
discretionoftheministryorStatebodyresponsibleforcertifyingtheconformityofthegoodsinquestion.
IntheKyrgyz Republic, regulations providing forpre-market certification arecurrently indraft
form.
Question 115.(WT/ACC/KGZ/5, Qu.52)
DoestheKyrgyz Republic accept asequivalent, certificates fromthirdcountry certification bodies?
Answer:
Theacceptance ofcertificates issued byforeign certification bodies isgenerally dependent on
theexistence ofabilateral ormultilateral agreement onhematter.WT/ACC/KGZ/7
Page37
Inabsenceofanapplicablebilateralormultilateralagreement,theKyrgyzRepublicwillgenerally
accept acertificate issued byamanufacturer orcertification body widely recognized ashaving a
reputation forquality. Thedetermination ofsuchfirms andorganizations remains within thediscretion
oftheKyrgyz Republic.
Asarule,foreign certificates areaccepted onlyforproducts originating inthecountry where
thecertificate wasissued.
Theacceptability offoreign certificates andtheform andmethod ofevaluating compliance
isestablished foreachproduct onacase-by-case basis.
Question 116.(WT/ACC/KGZ/5, Qu.53)
HastheKyrgyz Republic developed aquality assurance system? Could theKyrgyz Republic please
provide further information onthissystem oronanyplantodevelop suchasystem.
Answer:
No.Currently, work isbeing conducted thatisaimed atintroducing theISO-9000 standards.
Question 117.(WT/ACC/KGZ/5, Qu.54)
Could theKyrgyz Republic alsoplease provide further information onitsaccreditation system?
Answer:
IntheState system ofcertification, three setsofregulations establish therequirements and
theprocedure foraccrediting testlaboratories andcertification bodies. These regulations cover:
(i)products andservices; (ii)systems ofquality; and(iii)production methods. These documents
arealsoharmonized withsimilar documents ofthesystem ofcertification oftheRussian Federation,
theregulations ofISO/IEC andEuropean standards ofserial No.EN45000.
Accreditation ofacertification andtesting organization isdonebyKyrgyzstandard andother
Statebodies authorized toconduct mandatory certification within theirareaofcompetence (forexample,
theKyrgyz Ministry ofConstruction andArchitecture isresponsible forcertifying thecompliance of
construction materials). Alltypes oforganizations areeligible foraccreditation iftheymeet the
requirements. Anapplicant mustprovide Kyrgyzstandard withitsorganizational documents, thedesired
scope ofaccreditation, abriefdescription ofitslegalstatus, aswellasadescription ofitsorganizational
structure. Anorganization applying foranaccreditation must: (i)beindependent andunbiased; and
(ii)besufficiently competent, i.e.possess sufficient means, qualified professionals, etc.
Question 118.(WT/ACC/KGZ/5, Qu.63)
Annex 5states thattheState Inspection onStandardization andMetrology (Kyrgyzstandard)
performstheStateadministrationofstandardization,includingtheestablishmentofrulesgoverning
theapplication ofinternational standards. Arethere regulations oradministrative procedures
which provide guidance toKyrgyzstandard, orother agencies suchastheMinistry ofArchitecture
andConstruction andMinistry ofEnvironmental Protection, topublish draft standards for
comment?WT/ACC/KGZ/7
Page38
Answer:
No,there arenot.IntheKyrgyz Republic, draftstandards arenormally sentforreview and
comment tointerested organizations.
Question 119.(WT/ACC/KGZ/5, Qu.64)
Isthere guidance onarecommended period toallow forpublic comment?
Answer:
Draft standards arenotrequired tobesubmitted forpublic review andcomment. Therefore,
there isnorecommended period oftimeforpublic comment.
Question 120.(WT/ACC/KGZ/5/Add.2, Qu.65)
Isthere guidance foragencies toconsider theuseofappropriate international standards?
Answer:
Yes. IntheKyrgyz Republic, international standards aretobeapplied inaccordance with
theinstructions oftheState Standardization System oftheKyrgyz Republic.
Question 121.(WT/ACC/KGZ/5/Add.2, Qu.66)
DoestheBulletin ofCurrent Information ofKyrgyzstandard provide announcements forallKyrgyz
(including other Ministries) draft standards, technical regulations andconformity assessment
procedures, sothatinterested parties mayprovide comments?
Answer:
Draft standards, technical regulations, andconformity assessment procedures arenotpublished
forpublic comment.
Question 122.(WT/ACC/KGZ/5/Add.2, Qu.67)
Inwhatspecific publication(s) arefinalstandards, technical regulations andconformity assessment
procedures published?
Answer:
Final standards, technical regulations andconformity assessment procedures arepublished in
Kyrgyzstandard ’stheofficial Bulletin ofState Standards andTechnical Regulations, published ona
quarterly andannual basis.
Question 123.(WT/ACC/KGZ/5/Add.2, Qu.68)
Annex 5states thata“certificate ofconformity ”isrequired fortheimportation ofselect regulated
products. Kyrgyzstandard istoreview documents issued by“national certification bodies ”which
assert compliance withapplicable safety requirements. Aresuchcertificates onlyaccepted from
Kyrgyzstandard-accredited certification bodies andtesting laboratories?WT/ACC/KGZ/7
Page39
Answer:
Certificates issued byforeign certification bodies areaccepted ifabilateral ormultilateral
agreement exists thatprovides fortheiracceptance.
Intheabsence ofanapplicable bilateral ormultilateral agreement, theKyrgyz Republic will
generallyreviewandacceptacertificateissuedbyamanufacturerorcertificationbodywidelyrecognized
ashaving areputation forquality. Suchcertification body doesnotnecessarily havetobeaccredited
byKyrgyzstandard. Thedetermination ofsuchfirms andorganizations remains within thediscretion
oftheKyrgyz Republic.
Asarule,foreign certificates areaccepted onlyforproducts originating inthecountry where
thecertificate wasissued.
Question 124.(WT/ACC/KGZ/5/Add.2, Qu.69)
Doyouhave alistofthese products together withthestandards theymust meet?
Answer:
Thatlistisattached asAttachment B.
Question 125.(WT/ACC/KGZ/5/Add.2, Qu.70)
What isthelegal basis forcertification? Doyouhave copies ofthelaws andthenormative
regulations?
Answer:
Thelegalbasis forcertification isdescribed inAnnex 5totheMemorandum. Copies ofthe
applicable lawsandnormative regulations onstandardization andcertification, allofwhich arereferred
toinAnnex 5,havealready beensubmitted totheWTO ondiskette.
Question 126.(WT/ACC/KGZ/5/Add.2, Qu.71)
How cananimporter gainaccess tothestandards affecting hisproduct?
Answer:
Animporter cangainaccess toallstandards affecting hisproduct bysubmitting arequest to
Kyrgyzstandard, orbyreviewing theofficial bulletins ofKyrgyzstandard.
Question 127.(WT/ACC/KGZ/5/Add.2, Qu.72)
Does theKyrgyz Republic recognize anyexternal, regional orinternational standards?
Answer:
Yes.Standards developed onthebasis oftheinternational standards ofISO,MEK, CMEA
areapplied intheKyrgyz Republic. Forexample, GOST 28397-91 hasbeendeveloped onthebasis
ofISO2382-15-85, GOST 28397-91 (ISO 2382-15-85), GOST 29106-91 (MEK 748-1-84), GOST
28312-89 (CMEA 6415-88, MEK 417-73) andothers. (Thefulllistcanbefound intheCommentsWT/ACC/KGZ/7
Page40
ofKyrgyzstandard for1996 which isavailable intheInformation-Analytical Department of
Kyrgyzstandard.)
Question 128.(WT/ACC/KGZ/5/Add.2, Qu.73)
Hasitidentified anyequivalencies between standards intheKyrgyz Republic andthese external
standards? Ifso,which ones: ISO? MEK? ASME? API? CE?Others?
Answer:
Asdescribed intheanswer totheabove question, standards intheKyrgyz Republic have
equivalencies withISO, MEK andCMEA. Asforother external standards theyhavenotyetbeen
considered forequivalency.
Question 129.(WT/ACC/KGZ/5/Add.2, Qu.74)
Arethere plans torecognize suchequivalencies asabasis forautomatic certification?
Answer:
Currently Government ofKyrgyz Republic hasnoplans torecognize suchequivalencies as
abasis forautomatic certification.
Question 130.(WT/ACC/KGZ/5/Add.2, Qu.75)
Arethere provisions fornotice ifthelistofproducts requiring mandatory certification changes?
Answer:
No.There arenoformal notice requirements. However, within theCIS,regulations have
been developed thatoperate likenotice provisions. TheCISInter-Governmental Counsel for
standardization, methodology andcertification (ICS) hasdeveloped regulations allowing fortheimport
andsaleinanICS-member country, without acertificate, ofaproduct thatisotherwise subject to
mandatory certification if:(i)theproduct originated inanICS-member country; and(ii)andthe
importation occurs within sixmonths fromthedateoftheintroduction ofthemandatory certification
requirement.
With respect tonon-ICS-member countries, theKyrgyz Republic mayresolve thisissue on
thebasis ofaninternational agreement.
Question 131.(WT/ACC/KGZ/5/Add.2, Qu.76)
What isthefeestructure forcertification ofthese product types? Ifyoumaintain astandard
feeschedule, maywehave acopy?
Answer:
- certificate ofcompliance: 600-1500 soms (currently, about US$35-90), depending onthetype
oflaboratory testsrequired;
- phytosanitary certificate: 76-166 soms depending onthetypeofproduct. Ifthetotalweight
oftheproduct islessthan300kg therequired payment willbe10percentoftheotherwiseWT/ACC/KGZ/7
Page41
applicable amount. Iftheweight isfrom300kg-1000kg therequired payment willbe50percent
oftheotherwise applicable amount.
- veterinary certificate: forgoods having avalue equal toorlessthan5000 soms, afeeequal
to0.5percentofthevalue isassessed; forgoods having avalue exceeding 80,000 soms, a
feeequal to350soms plus0.1percentofthevalue isassessed; forgoods having avalue
inexcess of5000 soms butlessthan80,000 soms, avariety offormulas areapplied that
gradually reduce theamount ofthefeeinadvalorem terms;.
- hygienic certificate: 70-800 soms depending onthetypeoflaboratory testsrequired.
- acertificate setting forth thedetermination ofState ecology experts thattheproduct hasmet
applicable environmental standards: amount offeedefined oncasebycasebasisbased oncost
ofthelaboratory tests.
Question 132.(WT/ACC/KGZ/5/Add.2, Qu.77)
What istheprocedure thatimporters ofproducts andequipment intotheKyrgyz Republic should
follow inorder toobtain acertificate?
Answer:
Theprocedure ofcontrolling products imported totheKyrgyz Republic isregulated bythe
Resolution oftheCabinet ofMinisters oftheKyrgyz Republic of12/02/95, No.520.
Work oncertification intheKyrgyz Republic isimplemented within thedeveloped National
system ofcertification. Theorder andprocedure ofwork oncertification isestablished bystandards
ofthissystem -KMC 40.03-96- andprocedures ofcertification ofsimilar categories ofproducts (at
thistimetwenty ofthem areineffect. They continue tobeworked out). There isalsoanormative
document establishing theprocedure ofrecognizing foreign certificates ofcompliance intheSystem.
Question 133.(WT/ACC/KGZ/5/Add.2, Qu.78)
Doproducts imported forpersonal useoraspartofaforeign assistance programme require
certification?
Answer:
Allproducts specified inthelist,including those imported ashumanitarian aidaresubject to
certification. Goods imported forpersonal usedonotrequire certification.
Question 134.(WT/ACC/KGZ/5/Add.2, Qu.79)
What arethe“national certification bodies ”?
Answer:
“National certification bodies ”arebodies authorized tomaintain acommon government policy
intheareaofcertification. TheNational certification bodyoftheKyrgyz Republic isKyrgyzstandard.WT/ACC/KGZ/7
Page42
Question 135.(WT/ACC/KGZ/5/Add.2, Qu.80)
Howdothenational certification bodies relate toeachother andtotheState customs service and
theindustry ministries andGoskominvest?
Answer:
Cabinet ofMinisters Resolution No.12of6January 1997 established anInter-Departmental
Counsel ontheCertification ofProducts andServices. Theresolution alsoestablished itscomposition.
TheCounselincludesthefollowingStatebodiesespeciallyauthorizedtoworkoncertificationofproducts:
- Kyrgyzstandard;
- Ministry ofArchitecture andConstruction oftheKyrgyz Republic;
- Ministry ofHealth oftheKyrgyz Republic;
- Ministry ofTransportation andCommunication oftheKyrgyz Republic
- Ministry ofInterim oftheKyrgyz Republic;
- StateAgency forTourism andSports under theCabinet ofMinisters oftheKyrgyz Republic;
and
- Kyrgyz Energy Holding Company.
Thepurpose ofitscreation istoensure thecoordination ofStatecertification bodies having theauthority
toissue certificates and/or toaccredit other certificate-issuing organizations. Relation ofStatebodies
totheState Customs Inspectorate isestablished bytheResolution oftheCabinet ofMinisters ofthe
Kyrgyz Republic of12/02/95, No.520.Intheimportation ofproducts, theStateCustoms Inspectorate
checks thepresence ofnecessary certificates issued bythementioned agencies, andalsoevery month
itinforms these bodies ofthedelivery ofproducts which aresubject tomandatory certification tothe
Kyrgyz Republic.
Question 136.(WT/ACC/KGZ/5/Add.2, Qu.81)
Arethere pre-requisites forcertification suchastherequirement toobtain internal uselicences
from industry sector inspectorates, ministries, and/or agencies?
Answer:
No.
(c) Sanitary andphytosanitary measures
Question 137.(WT/ACC/KGZ/5, Qu.55)
Does theKyrgyz Republic anticipate anydifficulties inapplying theSPSAgreement infullon
accession?
Answer:
TheKyrgyz Republic expects nodifficulties inapplying theSPSAgreement infullonaccession.
Question 138.(WT/ACC/KGZ/5/Add.2, Qu.82)
AretheKyrgyz Republic ’sprocedures foradopting trade measures relating toconcerns with
human, animal andplant health inlinewiththerequirements oftheSPSAgreement?WT/ACC/KGZ/7
Page43
Answer:
Theappropriate ministries andStatebodies (particularly, theMinistry ofHealth, theMinistry
ofAgriculture andFood, theMinistry ofEnvironmental Protection, andtheVeterinary-Sanitary
Supervisory Office) arereviewing theprovisions oftheSPSAgreement forthepurpose ofbringing
theirrespective procedures intocompliance withtheSPS.
Question 139.(WT/ACC/KGZ/5/Add.2, Qu.83)
Areallproposals forsuchmeasures published inadvance, andisthere anopportunity forpublic
comment byinterested parties, bothdomestic andforeign?
Answer:
State bodies canpublish suchmeasures inadvance seeking forthepublic comment, butitis
notobligatory.
Question 140.(WT/ACC/KGZ/5/Add.2, Qu.84)
Istherearequirementandarethereguidelinesforconductingriskassessmentspriortotheadoption
ofSPSmeasures, including arequirement thatsuchmeasures bebased onscientific evidence?
Answer:
ThereisarequirementthatanySPSmeasurebebasedonscientificevidence,butnorequirements
orguidelines fortheconduct ofriskassessments.
Question 141.(WT/ACC/KGZ/5/Add.2, Qu.85)
AccordingtotheinformationprovidedinWT/ACC/KGZ/3,CabinetofMinistersResolutionNo.260
requires thatsafety certificates beobtained forimports of“agricultural andfood industry
products. ”Arealltypes ofagricultural andfoodproducts subject tothisrequirement? Ifnot,
please provide acomplete listofagricultural andfood products subject tocompulsory safety
certificates.
Answer:
Seeabove, theanswer toQuestion 49onPartIV,Section 1(f).
Question 142.(WT/ACC/KGZ/5/Add.2, Qu.86)
Onwhat scientific evidence orriskassessments isResolution No.260based?
Answer:
Resolution No.260isbased ontheevaluation ofthepossibility ofentry ofpestanddisease
andpotential biological consequences. Certification requirements foritems listed inResolution No.260
arebased onscientific studies andareimposed onlytotheextent necessary toprotect human lifeand
health, environment.WT/ACC/KGZ/7
Page44
Question 143.(WT/ACC/KGZ/5/Add.2, Qu.87)
Isthere anyother legislative oradministrative authority forspecific SPSmeasures affecting
imported agricultural andfoodproducts?
Answer:
- TheLaw“OnQuarantine ofPlants oftheKyrgyz Republic, ”of7June1996; and
- Cabinet ofMinisters Resolution No.520of2December 1995 (described inAnnex 5tothe
Memorandum atpage143).
Question 144.(WT/ACC/KGZ/5/Add.2, Qu.88)
Arethesanitary andphytosanitary standards intheKyrgyz Republic inconformity withapplicable
international standards, inparticular those developed bytheCodex Alimentarius Commission,
theInternational Office ofEpizootics, andtheinternational andregional organizations operating
within theframework oftheInternational Plant Protection Convention?
Answer:
Theappropriate ministries andStatebodies (particularly, theMinistry ofHealth, theMinistry
ofAgriculture andFood, theMinistry ofEnvironmental Protection, andtheVeterinary-Sanitary
Supervisory Office) arereviewing theprovisions ofthese standards forthepurpose ofbringing their
respective standards intoconformity therewith.
(d) Trade-related investment measures
Question 145.(WT/ACC/KGZ/5, Qu.56)
Please indicate whether ornotthere areanydomestic content orexport performance requirements
linked togranting thetaxexemptions mentioned inthissection.
Answer:
There arenodomestic content orexport performance requirements linked togranting thetax
exemptions mentioned inthissection.
Question 146.(WT/ACC/KGZ/5, Qu.57)
Please elaborate onthetaxincentives granted toforeign-owned legalentities, particularly ontheir
consistency withtheSCM Agreement andwiththeTRIMs Agreement?
Answer:
These taxincentives areprimarily directed atencouraging foreign investment intheKyrgyz
Republic. These taxincentives involve aninitial 2-5yearexemption fromtheprofits tax,and-thereafter
-areduction oftheprofits taxby:
- foralltaxable profits reinvested intheKyrgyz Republic;
- ifatleast50percentofentity ’sproducts andservices areexported;
- ifatleast50percentofproduction isderived from imported rawmaterials orcomponents;
andWT/ACC/KGZ/7
Page45
- ifatleast20percentoftaxable profits arespent forprofessional training.
None ofthese taxincentives areinconsistent withtheTRIMs Agreement.
With oneexception, noneofthese incentives areinconsistent withtheSCM Agreement. The
exception isthe25percentreduction intheotherwise applicable profits taxif50percentormore
oftheentity ’sproducts andservices areexported. TheKyrgyz Republic understands thatthistax
reduction isaprohibited export subsidy within themeaning ofSection 3.1(a) oftheSCM Agreement.
Question 147.(WT/ACC/KGZ/5, Qu.58)
Please confirm thattheKyrgyz Republic maintains noother TRIMs Agreement inconsistent
measures.
Answer:
TheKyrgyz Republic confirms thatitmaintains noothermeasures inconsistent withtheTRIM ’s
Agreement.
Question 148.(WT/ACC/KGZ/5/Add.2, Qu.89)
According totheMemorandum, bidsarescored according toanumber offactors forthe
privatization ofmedium andlarge State-owned enterprises. Included among thefactors considered
isthecommitment bythebidder “tomaintain certain employment levels ”.HowdoestheKyrgyz
Republic justify thisexamination ofabidder ’sability tohirelocally, inlight ofcommitments
intheTRIMs Agreement? Please listanddescribe allother factors used toratebidsinthe
privatization process.
Answer:
Giving weight toabidder ’swillingness tomake acommitment tomaintain acertain employment
leveldoesnotcontradict theTRIMs Agreement. There isnotrade-related aspect imposed bytheState
onthebuyer inconnection withthiscommitment. TheState iscurrently themajor stock-holder in
theseentities, andinthatrolemayrequire apotential purchaser tomaintain certain employment levels
aspartofthedeal. Theimposition ofsucharequirement isnotunknown inwholly private transactions
involving thesaleofabusiness. Furthermore, arequirement tomaintain employment levels does
notmean thatabuyer willberequired touseonlylocallabour. Therequirement isimposed onthe
buyer forthepurpose ofavoiding de-stabilizing simultaneous masslay-offs during thisperiod ofinitial
transition andmass privatization. Thisrequirement always terminates orphases outwithin alimited
timeafterthetransaction hasclosed. Nothing inthese arrangements violates theTRIMs Agreement.
Other factors which maybeusedtoratebidsintheprivatization process areapplied withdue
regard forthem.f.n. andnational treatment principles. These factors include:
- theamount andtermofinvestment;
- keeping thecompany profile and/or production volume within aperiod oftimespecified by
abidding commission;
- thecommitment tohireahighly professional staff;
- maintaining environmental protection measures;
- maintenance anduseofsocial programmes andcultural objects, which areapartofthe
commercial property, under privatization;
- prohibition ofcertain actions inrespect ofabidding property;WT/ACC/KGZ/7
Page46
Thebidding commission canestablish other factors toratebids.
(e) State-trading practices
Question 149.(WT/ACC/KGZ/5/Add.2, Qu.90)
TheKyrgyz Republic notes that29enterprises have been granted exclusive rights bythe
Government topurchase andexport scrap metals. Annex 6alsonotes thatthelistofenterprises
istemporary (under Resolution No.373), pending theenactment ofalawbyParliament inlate
1996. What isthestatus ofthisanticipated law. HowdoestheGovernment exercise control over
thescrap metal exports ofthese enterprises?
Answer:
ThisDraft LawisintheParliament ’swork planfor1997. Seeanswer below.
Question 150.(WT/ACC/KGZ/5/Add.2, Qu.91)
Annex 6states nocriteria existfordetermining thequantities tobeexported. Ifthisisthecase,
howdoestheGovernment ensure thatthisexclusive system ofscrap metals exporters doesnot
“plunder ”domestic supplies?
Answer:
Thisresolution isintended toprevent theplunder ofdomestic resources ofwaste andscrap
metal andtoprotect theexisting infrastructure frombeing cutupandsold. TheGovernment haslicensed
only29companies toengage inthebusiness ofpurchasing andprocessing waste andscrap metal. These
companies must regularly provide totheMinistry ofIndustry andForeign Trade information about
thequantities andsources ofpurchases. Thisisonlyatemporary measure taken toprevent thetheft
andexportation ofthecountries resources. Resolution No.373contains anexclusive listofitems made
offerrous andnon-ferrous metals which these companies canpurchase domestically onacashbasis.
Question 151.(-)
Werequest thatKyrgyz Republic submit notifications forthisprogramme under theprovisions
ofGATT Article XVII.
(f) Freezones
Question 152.(WT/ACC/KGZ/5, Qu.59)
Please confirm whether ornotanyfreezones established inthefuture willbefully subject to
thecoverage oftheKyrgyz Republic ’sfuture commitments asaWTO member.
Answer:
TheKyrgyz Republic confirms thatallfreezones intheKyrgyz Republic willbefullysubject
tothecoverage ofthecommitments undertaken bytheKyrgyz Republic asamember oftheWTO.WT/ACC/KGZ/7
Page47
Question 153.(WT/ACC/KGZ/5, Qu.60)
Please indicate whether ornotgoods produced orimported intofreezones under thespecial tax
andtariff regimes envisaged forthese zones willbesubject tonormal customs formalities, taxes
andtariffs when entering therestoftheKyrgyz Republic.
Answer:
TheKyrgyz Republic confirms thatallgoods produced orimported intofreezones willbe
subject tonormal customs formalities, taxes andtariffs when entering thecustoms territory ofthe
Kyrgyz Republic.
(g) Freeeconomic zones
Question 154.(WT/ACC/KGZ/5, Qu.61)
Please confirm whether ornotfreeeconomic zones willbefully subject tothecoverage ofthe
Kyrgyz Republic ’sfuture commitments asaWTO member.
Answer:
TheKyrgyz Republic confirms thatallfreeeconomic zones intheKyrgyz Republic willbe
fullysubject tothecoverage ofthecommitments undertaken bytheKyrgyz Republic asamember
oftheWTO.
Question 155.(WT/ACC/KGZ/5, Qu.62)
Please indicate whether ornotgoods produced orimported intofreeeconomic zones under the
special taxandtariff regimes envisaged forthese zones aresubject tonormal customs formalities,
taxes andtariffs when entering therestoftheKyrgyz Republic.
Answer:
TheKyrgyz Republic confirms thatallgoods produced orimported intofreeeconomic zones
willbesubject tonormal customs formalities, taxes andtariffs when entering thecustoms territory
oftheKyrgyz Republic.
(h) Trade-related environmental policies
Question 156.(WT/ACC/KGZ/5, Qu.63)
Thethird paragraph under thisheading states thatproducts from acountry suffering from a
disease requiring quarantine measures must accompanied bydocuments ofsafety. Please confirm
thatsuchmeasures onlyapply toproducts which areaffected bythedisease inquestion, andnot
toallimports from thatcountry.
Answer:
TheKyrgyzRepublicconfirmsthatsuchmeasuresapplyonlytoproductswhichcouldreasonably
beexpected tobeaffected bythedisease inquestion, andnottoallimports from thatcountry.WT/ACC/KGZ/7
Page48
Question 157.(WT/ACC/KGZ/5/Add.2, Qu.92)
Please describe themandatory product standards thattheKyrgyz Republic hasestablished to
protect theenvironment ofthelife,health orproperty ofKyrgyz citizens.
Answer:
Inaddition totheinformation oncertification provided inAnnex 5totheMemorandum, it
should benoted thatthesystem ofcertification ineffect intheKyrgyz Republic isharmonized with
thesystems ofcertification ineffect intheRussian Federation andother CIScountries, andwiththe
regulations ofISO/IEC andEuropean standards ofserial No.EN45000. Thecertification rulesand
regulations oftheKyrgyz Republic aresetforth in44different setsofregulations, ofwhich 20have
general applicability and24apply tospecific products orproduct groups. These documents contain
detailedinformationontheproceduresandrequirementsrelatedtomandatoryandvoluntarycertification.
Goods forwhich State standards have been established forthepurpose ofprotecting the
environment orthelife,health andproperty ofcitizens aresubject tomandatory certification bythe
appropriate ministry orState body, andthesubsequent issuance byKyrgyzstandard ofacertificate
ofconformity andalicence tomark theconcerned goods witha“mark ofconformity. ”Saleorimport
ofsuchgoods intheKyrgyz Republic without suchpriorcertification andmarking isprohibited. List
ofgoods thataresubject tomandatory certification isdeveloped byKyrgyzstandard.
Question 158.(WT/ACC/KGZ/5/Add.2, Qu.93)
What documentation andinformation isrequired to“confirm thesafety oftheproducts imported ”
from countries having asignificant incidence ofadisease requiring quarantine measures?
Answer:
Itcanbeanydocument certifying thesafety ofimported products thatisissued byanauthorized
body ofacountry having adisease problem.
Question 159.(WT/ACC/KGZ/5/Add.2, Qu.94)
Cabinet Ministers Decision No.260ontheApproved ListofGoods Locally Produced orImported
intotheKyrgyz Republic thatareSubject toCompulsory Safety Certification, asamended, appears
toreserve much oftheeconomy forcompulsory certification forhealth, safety orenvironmental
reasons. TheDecision covers capital goods (machinery, building, electrotechnical andinstrument
making industries), agriculture/food, lightindustry, rawmaterials, wood processing andmedical
products.
Answer:
Although Cabinet ofMinisters Resolution No.260covers many industries, itonlycovers a
limited range ofproducts within eachindustry. Thetextoftheresolution hasalready beensubmitted
totheWTO ondiskette. Theresolution contains anitem-by-item listofthespecific products subject
tocompulsory certification. Therefore, onlyasmall classofgoods issubject tocompulsory certification.
Question 160.(WT/ACC/KGZ/5/Add.2, Qu.95)
What significant sectors oftheeconomy remain outside thescope ofthisDecision?WT/ACC/KGZ/7
Page49
Answer:
Sectors oftheeconomy thatareoutside ofthescope ofthisresolution include ferrous metals,
mining, mosttypes ofconstruction materials, fuelindustry, tourism industry, scientific institutions,
production offeedforlivestock andflour mills.
Question 161.(WT/ACC/KGZ/5/Add.2, Qu.96)
What hasbeentheexperience withtheDecision No.260? Isthecertification process sufficiently
rapid soastoensure theinfusion ofnewgoods and/or technologies intotheeconomy? What is
thetimelineforcertification?
Answer:
Cabinet ofMinisters Resolution No.260applies toarelatively small range ofproducts. The
fewgoods subject tocompulsory certification obtain thatcertification within arelatively briefperiod
oftimeprovided therequired documentation isprovided.
Question 162.(WT/ACC/KGZ/5/Add.2, Qu.97)
Does thecertification requirement apply toeach shipment orimport? Isthere aninspection
requirement foreachshipment orimport?
Answer:
Thecertification requirement applies toevery shipment ofgoods subject tomandatory
certification. Onecertificate maybeissued tocover alargeshipment tobeimported overtimeinpieces
orlots,butthetermofitsvalidity cannot exceed 3years.
(j) Government-mandated countertrade andbarter
Question 163.(WT/ACC/KGZ/5/Add.2, Qu.98)
Does theGovernment maintain statistics onthevalue andquantity ofgoods imported intoand
exported from theKyrgyz Republic through counter-trade andbartering, particularly within
theCIS? Ifso,please furnish these statistics totheWorking Party. Ifnot,please describe, to
theextent possible, theportion oftheeconomy accounted forbycounter-trade andbartering,
aswellasthegeneral categories ofproducts traded inthismanner.
Answer:
According tocustoms accounting, barter transactions werecarried with30countries in1996,
mainly withRussia, Kazakstan, Uzbekistan andChina. Thetotalvalue ofbarter transactions in1996
isestimated atUS$92.9 million.
Inbarter tradewiththeCIScountries, thevalue ofexported products wasUS$45 million, and
imported products US$36.1 million. Tobacco, sugar, textile products, electro-technical equipment
andparts therefor werethemain barter exports, while oilproducts, non-precious metals andarticles
ofthereof, rawsugar, timber andarticles thereof constituted themajor barter imports.
Commodity exchange withnon-CIS countries hadanon-balanced character: thevalue ofbarter
exports wasmorethantwice thevalue ofbarter imports. Barter tradewasmainly carried outwithChina,WT/ACC/KGZ/7
Page50
Cyprus, Austria andRumania. Wool, cotton-fibre, rawleather werethemain exports inthistrade,
andfoodproducts andrawmaterials fortheirproduction, machines, equipment andinstruments were
themain imports.
(k) Trade agreements leading tocountry-specific quotas allocation
Question 164.(WT/ACC/KGZ/5, Qu.64)
Areallcountertrade andbarter arrangements subject tocustoms formalities, tariffs andtaxes
inthesame wayasother imports?
Answer:
Yes.
(l) Government procurement practices
Question 165.(WT/ACC/KGZ/5, Qu.65)
Does theKyrgyz Republic plantoaccede totheAgreement onGovernment Procurement (GPA)?
Ifnot,whynot?
Answer:
Yes.
Question 166.(WT/ACC/KGZ/5, Qu.66)
Does theKyrgyz Government collect statistics onprocurement?
Answer:
Statistics onprocurement arenotseparately collected. Statistics onprocurement using
international donor funds arecollected byConsultative Agency onInternational Procurement. See
alsoTables 1-29and1-30ofAnnex 1totheMemorandum.
Question 167.(WT/ACC/KGZ/5, Qu.67)
What istheoverall value ofpublic sector purchasing intheKyrgyz Republic?
Answer:
Atthistime, theTables 1-29and1-30ofAnnex 1totheMemorandum provide thisinformation
tothebestextent possible.
Question 168.(WT/ACC/KGZ/5, Qu.68)
Please provide abreakdown ofthepublic procurement market both bycontracting entity and
product type.WT/ACC/KGZ/7
Page51
Answer:
Forthebestavailable information onthismatter, seeTables 1-29and1-30ofAnnex 1tothe
Memorandum.
Question 169.(WT/ACC/KGZ/5, Qu.69)
Howarebidsevaluated bytheExamination Committee? Isprice theonlycriterion orarecontracts
alsoevaluated byreference toan“economically most advantageous offer approach? Ifso,under
what conditions arethedifferent evaluation methods used?
Answer:
Under theproposed lawongovernment procurement, procedures andcriteria fortheevaluation
ofbidsaresetforthinthesolicitation documents issued foreachprocurement. Theproposed lawrequires
procuring entities toactinstrict accordance withtheapplicable solicitation documents.
Price, subject toanymargin ofpreference applied pursuant tothelaw,istheonlycriterion
unless thesolicitation documents statethattheaward willbebased onother objective andquantifiable
criteria. Alternative criteria must bespecified inadvance inthesolicitation documents.
Question 170.(WT/ACC/KGZ/5, Qu.70)
Isthere acentral agency thatcontrols theapplication ofthelegalsystem, supervises thedecisions
ofthecommittees andmonitors infringement ofpublic law?
Answer:
TheKyrgyz Government plans tocreate anewGovernment Procurement Agency within the
Ministry ofFinance inthefirsthalfof1997. (Please notethatunder arecent reorganization ofthe
Government, theMinistries ofEconomy andFinance weremerged, andtheresulting entity iscalled
theMinistry ofFinance). Thisnewcentral agency willcontrol theapplication ofthelegal system,
supervise thedecisions ofallpurchasing organizations, monitor infringements ofpublic lawandsettle
disputes.
Question 171.(WT/ACC/KGZ/5, Qu.71)
Cansuppliers whodispute theaward ofacontract seekredress through national courts ora
tribunal system?
Answer:
Yes. Under theproposed lawongovernment procurement, suchadispute maybepursued
intheeconomic court system; however, judicial redress isgenerally available onlyaftertheexhaustion
ofadministrative remedies. Note, however, thatthefollowing matters arenotsubject tojudicial review:
- theselection ofthemethod ofprocurement;
- thechoice ofaselection procedure;
- thelimitation ofprocurement proceedings onthebasis ofnationality;
- adecision bytheprocuring entity toreject alltenders, proposals, offers, orquotations;
- arefusal bytheprocuring entity torespond toanexpression ofinterest toparticipate in
request-for-proposal proceedings; andWT/ACC/KGZ/7
Page52
- anomission ofreference tolawsandregulations inthesolicitation documents.
Question 172.(WT/ACC/KGZ/5, Qu.72)
What remedies areavailable?
Answer:
Under theproposed lawongovernment procurement, oneormore ofthefollowing remedies
areavailable tosuppliers disputing theaward ofacontact:
- adetermination oftherules applicable tothecomplaint;
- anorder prohibiting theprocuring entity from carrying outunlawful actions, decision or
procedures;
- anorder requiring theprocuring entity tocarry outlawful actions ordecisions;
- theannulment ofanunlawful actordecision byaprocuring entity, other thananyactwhich
resulted inaprocurement contract;
- therevision ofanunlawful decision taken byaprocuring entity, orthesubstitution ofthe
reviewing body’sowndecision foranunlawful decision, otherthananydecision which resulted
inaprocurement contract;
- anaward ofcompensation forreasonable costsincurred byasupplier insubmitting acomplaint;
and
- anorder toterminate procurement proceedings.
Provisional remedies arealsoavailable. Insome cases, thesubmission ofacomplaint andrequest for
administrative review results inthetemporary suspension ofongoing procurement proceedings. Where
acontract hasalready beenawarded atthetimeofthecomplaint, performance ofthecontract may
betemporarily suspended.
Question 173.(WT/ACC/KGZ/5, Qu.73)
Isthere anoffset policy and,ifso,howoften areoffset arrangements negotiated onacase-by-case
basis?
Answer:
TheKyrgyz Government maintains nooffset policy.
Question 174.(WT/ACC/KGZ/5, Qu.74)
Does apolicy tosupport local industry existintheKyrgyz Republic?
Answer:
Under theproposed lawongovernment procurement, withrespect topublic procurement, there
arelimited legalprovisions tosupport localindustry. Seeresponse toQuestion 175below.
Question 175.(WT/ACC/KGZ/5, Qu.75)
Istheprocurement ofcertain products reserved forlocalindustry? Ifso,isalistofthese products
available?WT/ACC/KGZ/7
Page53
Answer:
Thecurrent proposed procurement lawdoesnotcontain alistofcertain products whose
procurement isreserved forlocalindustry. However, theproposed lawallows forthepossibility that
particular proceedings maybelimited todomestic bidders (forexample, where theprocuring entity
determines thatthevalue ofthecontract tobeawarded issolowthatonlydomestic bidders arelikely
tobeinterested). Also, inlimited cases, aprocuring entity may, inevaluating tenders, grant amargin
ofpreference forthebenefit oftenders fordomestic contractors, domestically produced goods, or
domestic suppliers ofservices.
Question 176.(WT/ACC/KGZ/5, Qu.76)
What aretheprocedures andthecriteria toshort-list candidates inthecases oflimited tendering?
Answer:
Theproposed lawsetsouttwocircumstances under which restricted tendering ispermitted.
The“short list”procedures andcriteria employed inagiven casedepend onwhich ofthetwo
circumstances isapplicable.
First, aprocuring entity mayconduct restricted tendering where thegoods, works orservices
tobeprocured arehighly complex orspecialized, andtherefore available onlyfromalimited number
ofsuppliers. Itthatcase,theentity mustsolicit tenders fromallsuppliers fromwhom thegoods, works
orservices areavailable.
Alternatively, aprocuring entity mayconduct restricted tendering when itdetermines thatthe
timeandcostrequired toexamine andevaluate alarge number oftenders would bedisproportionate
tothevalue ofthegoods, works orservices tobeprocured. Inthatcase, theproposed lawprovides
thattheprocuring entity must select suppliers orcontractors from whom toselect tenders “ina
nondiscriminatory manner, “andthatitshall“select asufficient number ofsuppliers orcontractors
toensure effective competition. ”
Inbothcases, theprocuring entity mustpublish anotice ofitsrestricted tendering intheofficial
gazette.
Question 177.(WT/ACC/KGZ/5, Qu.77)
Does theKyrgyz Republic have anytrade agreements withother countries withcover public
procurement? Ifso,which countries?
Answer:
No.
Question 178.(WT/ACC/KGZ/5, Qu.78)
Under theGovernment Procurement Lawwhich isunder thepreparation, howwilltheNational
Treatment principle andMost Favoured Nation principle beensured forforeign products and
service providers?WT/ACC/KGZ/7
Page54
Answer:
With respect tothem.f.n. principle, theproposed lawdoesnotpermit theprocuring entity
todiscriminate among foreign bidders.
With respect tothenational treatment principle, theproposed lawallows forthepossibility
thatparticular proceedings maybelimited todomestic bidders (forexample, where theprocuring entity
determines thatthevalue ofthecontract tobeawarded issolowthatonlydomestic bidders arelikely
tobeinterested). Also, inlimited cases, aprocuring entity may, inevaluating tenders, grant amargin
ofpreference forthebenefit oftenders fordomestic contractors, domestically produced goods, or
domestic suppliers ofservices.
Question 179.(WT/ACC/KGZ/5, Qu.79)
According tothenewlawinpreparation, willforeign bidders betreated inanon-discriminatory
manner andwillthere beachallenge procedure open alsoforforeign bidders?
Answer:
According totheproposed law,foreign bidders arepermitted toparticipate inprocurement,
except incases when aprocuring entity decides ongrounds specified intheprocurement regulations
oraccording toother provisions ofthelawtolimitparticipation inprocurement proceedings tolocal
bidders. Ifforeigners arenotpermitted toparticipate, aprocuring entity shallinclude intherecord
oftheprocurement proceedings astatement ofthegrounds andcircumstances which thislimitation
isrelied on.Also, inlimited cases, aprocuring entity may, inevaluating tenders, grant amargin of
preference forthebenefit oftenders fordomestic contractors, domestically produced goods, ordomestic
suppliers ofservices. There arenotyetanyregulations specifying theacceptable grounds forestablishing
suchlimitations orpreference margins.
Thelawprovides fornoother exceptions tothenational treatment principle, andforno
exceptions tothem.f.n. principle. Therefore, inallother aspects, foreign bidders aretobetreated
according tothenational treatment andm.f.n. principles, including challenge procedures.
Question 180.(WT/ACC/KGZ/5/Add.2, Qu.99)
TheKyrgyz Republic notes thatitisdrafting alawongovernment procurement entitled “On
theProcurement ofGoods, Works andServices ”.
Please submit acopy ofthedraft lawtotheWorking Party.
Answer:
Acopyofthedraftlawisprovided inAttachment A1.
Question 181.(WT/ACC/KGZ/5/Add.2, Qu.99bis)
Weencourage theKyrgyz Republic tousetheWTO Government Procurement Agreement (GPA)
asaguide indrafting thislaw.WT/ACC/KGZ/7
Page55
Question 182.(WT/ACC/KGZ/5/Add.2, Qu.99bis bis)
Asapartofitsprotocol accession commitments, weseekacommitment from theKyrgyz Republic
toaccede totheGovernment Procurement Agreement andsubmit aschedule ofcommitments
totheGPA Committee toinitiate negotiations nolaterthan3months after thedateofaccession
totheWTO.
4. Policies Affecting Foreign Trade inAgricultural Products
(a) Imports
Question 183.(WT/ACC/KGZ/5/Add.2, Qu.100)
Why didtheKyrgyz Republic decide tochange itsflat10percentcustoms dutyonagricultural
products toanewtariff regime thatwillhave rates ofdutyranging from zeroto25percent?
Answer:
Thecurrenttariffregime,characterizedbyaflat10percentrateapplicabletoalmostallimports,
wasnever intended tobeapermanent system. Itwasinstituted shortly afterindependence inorder
toprovide ourrelatively newnational customs service withaneasytoadminister system. Today, after
several years ofeconomic reforms, theKyrgyz Government hasdecided todevelop amoreeconomically
sophisticated system thatisbased onabetter understanding ofourtrade flows andtheneeds ofour
stillfledgling market economy.
Question 184.(WT/ACC/KGZ/5/Add.2, Qu.101)
Willtheaverage tariff rateforagricultural products under thenewtariff regime exceed theexisting
tenpercentaverage rate?
Answer:
Theaverage tariff rateforagricultural products under theproposed tariff regime willremain
atabout 10percent.
(b) Exports
Question 185.(WT/ACC/KGZ/5/Add.2, Qu.102)
TheKyrgyz Republic istobecommended foritsliberal trade regime foragricultural exports.
Wewould liketoseethisregime bound intheaccession commitments. IstheKyrgyz Republic
prepared tobinditsexport subsidies foragricultural products atzero?
Answer:
TheGovernment oftheKyrgyz Republic isconsidering theeffects ofbinding export subsidies
foragricultural products atzero.
Question 186.(WT/ACC/KGZ/5/Add.2, Qu.103)
IstheKyrgyz Republic prepared tobindtheexisting policies ofnotrequiring licences forexport
ofagricultural products andnotimposing tariffs orquotas ontheexport ofagricultural products?WT/ACC/KGZ/7
Page56
Answer:
Yes, theKyrgyz Republic isprepared totemporarily bindtheexisting policies regarding
agricultural exports.
(e) Internal policies
Question 187.(WT/ACC/KGZ/5, Qu.80)
Please provide theinformation requested inWT/ACC/4 ondomestic support andexport subsidies.
Answer:
Thishasalready beensubmitted.
Question 188.(WT/ACC/KGZ/5, Qu.81)
What isthestate ofplayregarding thelawproviding forprivate ownership oflandwhich the
Parliament wastoconsider inautumn 1996?
Answer:
Thegovernmental working group created pursuant toInstruction No.105-p oftheCabinet
ofMinisters of22April 1996hasdeveloped andsubmitted adraftlaw“OnProperty Rights inLand”
totheCabinet ofMinisters.
Question 189.(WT/ACC/KGZ/5/Add.2, Qu.104)
TheGovernment ’sprogramme forthereform oftheagriculture sector provides forthecomplete
cessation -asof1995 -ofdirect State financial payments toallagricultural enterprises, withthe
exception of6special animal breeding and26seedproducing farms. DoestheGovernment intend
tocease thedirect State financial support payments tothespecial animal breeding andseed
producing farms inthefuture? What isthetime frame forthecessation ofthese support
payments?
Answer:
Duetoalackoffinancial resources, theState currently provides nosupport tothe
above-mentioned farms. Breeding farms engaged inraising pedigree horses havebeenabletocover
theircostswithout Stateassistance, butfarms fortheproduction ofseeds aresupported bytheEuropean
Commission onTechnical Issues. Theassistance rendered in1995 wasanestimated 15-20 million
soms. In1997assistance forsuchfarms isprovided forinagovernment programme forsheep breeding.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
(a) Intellectual property policy
Question 190.(WT/ACC/KGZ/5, Qu.82)
TheGovernment oftheKyrgyz Republic explains thattheKyrgyz Republic isstillundergoing
atransition process from thesystem inherited from theformer Soviet Union. TheKyrgyz RepublicWT/ACC/KGZ/7
Page57
istherefore stillintheprocess ofadopting several laws (e.g. Civil Code, “various additional
specialized laws”etc.)linked tointellectual property. Against thisbackground, could theKyrgyz
Government specify thelawsandtimeframe(s) fortheir adoption?
Answer:
Theintellectual property lawscurrently indraftformandthelegislative status ofeachareas
follows:
- ThePatent Law(under consideration byParliament; adoption isplanned forthefirsthalfof
1997);
- Thelaw“OnTrade Marks, Service Marks andAppellations ofOrigin ”(under consideration
byParliament; adoption isplanned forthefirsthalfof1997);
- Thelaw“OntheLegalProtectionofSoftwareandDatabases”(underreviewbytheGovernment;
exact timeofconsideration willdepend onParliament ’sworkload);
- Thelaw“OnLegal Protection ofIntegrated Circuit Topographies ”(under review bythe
Government; exact timeofconsideration willdepend onParliament ’sworkload);
- Thelaw“OnSelection Achievements ”(under review bytheGovernment; exact timeof
consideration willdepend onParliament ’sworkload); and
- Thelaw“OnCopyrightsandNeighbouringRights”(underconsiderationbyParliament;adoption
isplanned forthefirsthalfof1997).
Copies ofalldraftlawsareattached inAttachments C1through C6.
Question 191.(WT/ACC/KGZ/5/Add.2, Qu.105)
Weapplaud thedesire oftheKyrgyz Republic toputinplace asystem ofintellectual property
protection modeled onthesystems found indeveloped market economy countries. Wenotethat
theKyrgyzRepublicisintheprocessofadoptingCivilCodeprovisionstoestablishbasicintellectual
property rights andprotection andthevarious additional specialized laws, dealing withspecific
types ofintellectual property.
Please provide theWorking Party withtextsofthese draft lawsattheearliest opportunity. What
isthelegislative status ofeachofthese bills?
Answer:
Seeanswer toQuestion 190above.
Question 192.(WT/ACC/KGZ/5, Qu.84)
DoestheGovernment oftheKyrgyz Republic intend toadhere tointernational intellectual property
conventions-such astheRome orBerne Convention-other than those mentioned in
WT/ACC/KGZ/3? Ifyes,what aretheyandwhat isthetimeframe?WT/ACC/KGZ/7
Page58
Answer:
TheKyrgyz Government iscurrently considering adhering totheRome andBerne Conventions,
aswellastheNiceAgreement Concerning theInternational Classification ofGoods andServices (1957)
andtheWashington Treaty onIntellectual Property inRespect ofIntegrated Circuits (1989). However,
thereisnoavailable estimate astowhen theGovernment maysignontotheseinternational agreements.
Itshould alsobenoted thattheKyrgyz Government nowadheres totheUniversal Copyright
Convention.
Question 193.(WT/ACC/KGZ/5/Add.2, Qu.106)
Weseekadoption andimplementation ofaTRIPS-consistent intellectual property regime prior
toWTO accession. Does theKyrgyz Republic foresee anyproblems inaccomplishing this?
Answer:
Theobvious problem isdelay inadopting thedraftlaws. Theabove-referenced drafts have
already beenunder consideration bytheParliament forfouryears. However, itisanticipated that
atleastthreeofthedraftlawswillbeadopted inthefirsthalfof1997, andthatParliament willconsider
theother draftlawswithin areasonable timethereafter.
(b) Responsible agencies forpolicy formulation andimplementation
Question 194.(WT/ACC/KGZ/5, Qu.83)
IstheState Agency forIntellectual Property (alsoknown asKyrgyzpatent) already putinplace?
Answer:
Yes.
(c) Membership ofinternational intellectual property conventions
Question 195.(WT/ACC/KGZ/5/Add.2, Qu.107)
Does theKyrgyz Republic intend tojointheBerne Convention fortheProtection ofLiterary and
Artistic Works andtheGeneva Convention ontheProtection ofProducers ofPhonograms? If
not,howwilltheir requirements incorporated intheWTO beimplemented intheregime ofthe
Kyrgyz Republic?
Answer:
TheKyrgyz Republic intends tojointheBerne Convention (1971). TheState Agency for
Intellectual Property (“SIPA”)iscurrently conducting preparatory work necessary forjoining that
Convention.
Forthetimebeing, theKyrgyz Republic isnotconsidering joining theGeneva Convention
ontheProtection ofProducers ofPhonograms. Therights ofproducers ofphonograms willbeprotected
bytheLaw“OnCopyright andNeighbouring Rights ”,which includes basic provisions protecting the
rights ofthese producers incompliance withapplicable WTO requirements.WT/ACC/KGZ/7
Page59
Question 196.(WT/ACC/KGZ/5/Add.2, Qu.108)
Concerning intellectual property obligations theKyrgyz Republic hasassumed pursuant toits
accession totheEurasian Patent Convention andthrough itssigning ofabilateral agreement with
theGovernment oftheRussian Federation onCooperation intheSphere ofProtection ofIndustrial
Property. Please listanddescribe anysuchobligations.
Answer:
Theobligations oftheParties onthebasisofthereferenced bilateral agreements areasfollows:
- providing physical andlegalpersons ofoneparty withtherights andprivileges provided to
localphysical andlegalpersons oftheother party;
- recognition ontheterritory ofthecountry oftheprotection documents oftheUSSR; payment
ofroyalties inaccordance withtheLawoftheparty using theinventions; thepossibility of
converting protection documents oftheUSSR intothose oftheKyrgyz Republic;
- granting oftherightofprior useofaninvention orindustrial design without execution ofa
licence agreement, withpayment ofaroyalty inaccordance withthelawoftheparty using
theinvention ordesign;
- granting oftherighttoconduct business activities afterthereceipt ofprotection documents,
andtherighttomaintain theirvalidity directly withthepatent agencies oftheparties, without
apatent attorney;
- granting oftheright topayfeesforconducting legally significant activities related tothe
protectionofindustrialpropertyincompliancewithapplicableregulations,currencyandamounts
provided forthenational applicants oftheparties;
- harmonisation national legislative acts;and
- exchange ofpatent information, legislative andother documents, experience, andexperts in
theareaofindustrial property protection.
Question 197.(WT/ACC/KGZ/5/Add.2, Qu.109)
Aretheintellectual property benefits provided bythese agreements alsogranted tothird country
nationals onamost favoured nation basis?
Answer:
No.Benefits provided bythese agreements arenotgranted tothird country nationals ona
most-favoured-nation basis.
(d) Application ofnational andm.f.n. treatment toforeign nationals
Question 198.(WT/ACC/KGZ/5, Qu.85)
Inwhich waydoestheKyrgyz Republic intend todealwiththelisted exceptions tothenational
treatment policy when itaccedes totheWTO Agreement under Article XII,i.e.howdoesthe
Kyrgyz Republic intend tocomply withArticle 4oftheTRIPS Agreement?WT/ACC/KGZ/7
Page60
Answer:
Inordertoensurenationaltreatment,theStateAgencyforIntellectualProperty(“Kyrgyzpatent”)
isnowreviewing alllawsandregulations toeliminate, orpropose theelimination of,allprohibited
differences inthetreatment offoreign persons andKyrgyz citizens. Forexample, auniform feestructure
iscurrently being developed.
With respect tothem.f.n. principle, theKyrgyz Republic intends tofollow therequirements
ofArticle 4oftheTRIPS Agreement. Alldraftlawsmentioned above intheanswer toQuestion 190
onPartV,Section 1(a),havebeendrafted byKyrgyzpatent withregard totherequirements ofArticle 4.
Question 199.(WT/ACC/KGZ/5/Add.2, Qu.110)
Footnote17ofWT/ACC/KGZ/3statesthattheKyrgyzRepublicintendstoeliminate,induecourse,
thediscriminatory treatment inthemethod ofcalculating application, registration, renewal and
other feespaidbydomestic, foreign andCISholders ofintellectual property rights. Article 2
oftheParis Convention fortheProtection ofIndustrial Property (theParis Convention), which
isincorporatedbyreferenceinArticle2.1oftheTRIPSAgreement,providesfornationaltreatment.
Does theKyrgyz Republic intend toprovide national treatment, through thereduction or
elimination offeesforintellectual property protection, toforeigners whoaremembers ofcertain
specified classes, specifically, veterans oftheGreat Patriotic War, students anddisabled persons?
Answer:
TheKyrgyz Republic intends toapply thesame feestructure toforeign students anddisabled
persons asitapplies toKyrgyz students anddisabled persons, thusassuring national treatment forthose
classes. Currently, theissueonprivileges related tofeesgranted toveterans oftheGreat Patriotic War
hasnotbeendefinitively resolved, because thisprivilege provided favourable treatment forcitizens
oftheUSSR.
Question 200.(WT/ACC/KGZ/5/Add.2, Qu.111)
What istheplantoeliminate thepractice ofcharging higher feesfornon-CIS nationals, inlight
oftheKyrgyz Republic ’smembership intheParis Convention?
Answer:
Kyrgyzpatent intends tointroduce asingle-fee system foralllocalandforeign applicants. The
newsystem willbeputintoplace after theadoption ofdraft lawswhich comply withtheParis
Convention.
2. Substantive Standards ofProtection
Question 201.(WT/ACC/KGZ/5, Qu.86)
When willthe“additional provisions inlater parts oftheCivil Code”(notyetadopted) enter
intoforce? Please specify these “other specialized laws”.WT/ACC/KGZ/7
Page61
Answer:
PartIIoftheCivil Code isstillunder preparation andisexpected tobesubmitted tothe
Parliament attheendof1997. The“other specialized laws”areenumerated above intheanswer to
Question 190onPartV,Section 1(a).
Question 202.(WT/ACC/KGZ/5, Qu.112)
Section V.2oftheMemorandum outlines provisions ofPartIoftheKyrgyz Republic ’sCivilCode
thatrefer totheexistence ofrights incertain forms ofintellectual property andstates thatthese
rights willbedeveloped andrefined byadditional provisions inlaterparts oftheCivil Code and
otherspecializedlaws.Pleasedescribetheseadditionalprovisionsandspecializedlaws,andprovide
atimetable fortheir introduction andimplementation.
Answer:
Afullsection onintellectual property iscontained inPartIIIoftheCivil Code. PartIIIis
currentlyunderconsiderationbyaspecialParliamentaryCommittee.Itisanticipatedthatfinaldiscussion
andadoption ofPartIIIwilltakeplace in1997.
Theintellectual property section ofCivil Code Part IIIconsists ofseven chapters
(Chapter54-Chapter60).Chapter54coversgeneraltopics,including:(i)objectsofintellectualproperty
andtheirlegalprotection; (ii)property andnon-property rights; (iii)exclusive rights ofauthorship;
(iv)agreements onthecreation andexploitation ofworks; and(v)means ofprotection, including
withdrawal andpublication.
Chapter 55covers copyrights. Thechapter addresses: (i)objects ofcopyright; (ii)works
thatarenotobjects ofcopyright; (iii)authorship; (iv)freeandunlicensed useofworks; (v)the
territorialandtemporalscopeofcopyright;(vi)author’sagreements;and(vii)liabilityforinfringement.
Chapter 56governs neighbouring rights, andspecifically mentions: (i)objects andentities
ofneighbouring rights; and(ii)rights ofperformers, producers ofphonograms, andairandcable
broadcast organizations.
Chapter 57covers industrial property rights, including: (i)protection ofinventions, utility
models andindustrial designs; (ii)exclusive rights; (iii)authorship; (iv)work-for-hire andlicence
agreements; and(v)liability forpatent infringement.
Chapter 58addresses selection achievements, including: (i)protection ofrights toselection
achievements; and(ii)therights andobligations ofapatent-holder.
Chapter 59governs theprotection ofundisclosed (confidential) information. Thischapter
specifically mentions: (i)rights toprotection ofundisclosed (confidential) information; and(ii)liability
forillegal useofsuchinformation.
Finally, Chapter 60covers trademarks andrelated issues, inparticular: (i)trade names;
(ii)trademarks; and(iii)appellations oforigin.
Inaddition totheintellectual property provisions ofCivil Code PartII,there aresixdraft
specialized lawscurrently under consideration byParliament:WT/ACC/KGZ/7
Page62
- ThedraftPatent Lawconsists ofninesections. Section 1covers general concepts. Section 2
definesconditionsofpatentabilityforinventions,industrialdesignsandutilitymodels.Section3
defines entities which areaccorded rights under thelaw. Section 4defines exclusive rights
toobjects ofindustrial property. Section 5setsforth procedures forobtaining apatent,
preliminary patent orcertificate. Section 6covers termination ofpreliminary patents, patents
andcertificates. Section 7defines therights andbenefits ofauthors andpatent-holders.
Section 8governs theenforcement ofthose rights. Section 9contains miscellaneous final
provisions.
- Thedraftlaw“OnTrade Marks, Service Marks andAppellations ofOrigin ”comprises ten
chapters. Chapter 1defines general trademarkconcepts, including exclusive rights andgrounds
forrefusal ofregistration. Chapter 2covers registration procedures, including making an
application, expert examinations, appeals ofexamination decisions, registration, publication,
issuance ofcertificates, andtrademarkterms. Chapter 3dealswithcollective marks. Chapter 4
governs theuseoftrademarks, andconsequences ofnon-use. Chapter 5covers transfers of
marks. Chapter 6defines howtrademark protection maybelost. Chapter 7covers general
concepts related toappellations oforigin. Chapter 8setsoutregistration procedures for
appellations oforigin. Chapter 9covers theuseofappellations oforigin. Chapter 10defines
howlegalprotection foranappellation oforigin maybelost.
- Thelaw“OnLegal Protection ofSoftware andDatabases ”consists offourchapters. Chapter 1
setsoutthemain concepts usedinthelaw;terms ofcopyright; andtemporal andterritorial
limits ofprotection. Chapter 2defines property (economic) andnon-property (moral) rights,
aswellasregistration procedures. Chapter 3defines thegrounds foruseofsoftware and
databases. Chapter 4deals withinfringement, elements ofprotection, andinternational
cooperation.
- Thelaw“OnLegal Protection ofIntegrated Circuit Topographies ”consists offourteen Articles.
Article 1defines various terms usedinthelaw. Article 2defines therelationships regulated
bythelaw. Article 3defines theobjects oflegalprotection. Article 4deals withauthorship.
Article 5covers economic (property) rights. Article 6governs theassignment ofthose rights.
Article 7deals withwork-for-hire andcommissioned works. Article 8defines actions not
recognized asinfringement. Article 9governs registration andnotification. Article 10sets
outterms forexclusive rights. Article 11setsouttherights oftheauthor orother owner of
therights inatopography. Articles 12-14 dealwithinternational protection issues.
- Thedraftlaw“OnSelection Achievements ”consists ofseventeen sections. Section 1covers
general concepts. Section 2deals withprotectability ofselection achievements. Section 3
describes patent application procedures. Section 4covers protection ofselection achievements.
Section 5defines therights andobligations ofapatent-holder. Section 6governs licence
agreements, including openandcompulsory licences. Section 7defines authorship. Section 8
covers invalidity andnullification. Section 9dealswithregistration andpublication. Section 10
discusses governmental encouragement ofthecreation anduseofselection achievements.
Section 11governs appeals. Section 12covers selection achievement certificates. Section 13
setsoutpatent fees. Section 14governs enforcement ofpatent rights. Section 15explains
thegenetic fundoftheKyrgyz Republic. Section 16governs import andexport controls on
selection achievements. Section 17deals withinternational protection issues.
- Thedraftlaw“OnCopyrights andNeighbouring Rights ”consists offivesections, including
50articles. Section 1defines thesubject ofregulation andbasic concepts usedinthelaw.
Section 2covers theobjects ofcopyright, authorship, authors ’rights, transfers ofproperty
rights, andterms ofcopyright. Section 3,which covers neighbouring rights, defines entitiesWT/ACC/KGZ/7
Page63
ofneighbouring rights, theirrights, andtheterms ofneighbouring rights. Section 4dealswith
collective management ofproperty rights byorganizations created toprovide property rights
fortheholdersofcopyrightsandneighbouringrightsincaseswhereexploitationonanindividual
basis isdifficult. Section 5setsforth civilandother enforcement measures.
Eachofthedraftlawsprovides thatforeign persons andentities enjoy thesame rights aslocalpersons
andentities.
Thelegislative status ofeachoftheforegoing draft lawsisprovided above inresponse to
Question 190,Section 1(a).
Question 203.(WT/ACC/KGZ/5/Add.2, Qu.113)
Section V.2oftheMemorandum alsorefers toexisting protection fortrademarks andtrade secrets
contained insection 5oftheAnti-monopoly Law. Please describe indetail theprocedure for
invoking thisprotection, theprocess followed bythebody responsible forreviewing suchmatters,
andtheremedies available intheevent ofafavourable decision.
Answer:
Special procedures forinvoking thisprotection havenotyetbeenestablished. Violations are
nowidentified through auditing conducted bytheDepartment onAntimonopoly Policy.
(a) Copyright andrelated rights
Question 204.(WT/ACC/KGZ/5, Qu.87)
TheKyrgyz Government explains thatadraft lawonCopyright andRelated Rights iscurrently
pending before theParliament. What isthetimeframe fortheadoption ofthelaw?
Answer:
Itisscheduled tobevoted onbyParliament within thefirsthalfof1997.
What areitsmain elements? (WT/ACC/KGZ/5, Qu.88)
Answer:
Thedraftlaw“OnCopyright andRelated Rights ”oftheKyrgyz Republic consists offivebasic
chapters, divided intoatotalof50articles. Asummary ofthechapters isasfollows:
- Chapter 1.-“General ”-establishes thesubject ofregulation andbasic concepts usedinthe
law.
- Chapter 2.-“Copyright ”-establishes theobjects ofcopyright, defines theauthor ofthecreative
work, hisproperty andnon-property rights, thetransferability ofproperty rights, aswellas
theperiod ofvalidity ofcopyrights.
- Chapter 3.-“Related Rights ”establishes thesubjects ofrelated rights (performers, producers
ofphonograms (recordings), organizations ofairandcable broadcasts), theirrights, aswell
astheperiod ofvalidity ofrelated rights.WT/ACC/KGZ/7
Page64
- Chapter 4.-“Collective Management ofProperty Rights ”provides forthecreation byowners
ofcopyrights andrelated rights oforganizations forthemanagement ofproperty rights ona
collective basis. Such organizations arecreated forthepurpose ofproviding copyright and
related rights holders withproperty rights incases where itisdifficult torealize theirrights
separately.
- Chapter 5.-“Protection ofCopyrights andRelated Rights ”establishes civil-legislative and
other measures fortheenforcement ofcopyrights andrelated rights.
Could theKyrgyz Government provide acopy ofthedraft? (WT/ACC/KGZ/5, Qu.89)
Answer:
Thedraftisattached asAttachment C3.
Question 205.(WT/ACC/KGZ/5, Qu.90)
Does thecurrent copyright legislation provide forrental rights? Ifyes,please explain. Ifno,
arerental rights foreseen inthedraft law? Ifyes,how?
Answer:
Thecurrent lawonlyrequires thatanexhibitor, producer, performer, broadcaster orpublisher
obtain theconsent ofthecopyright holder. There arenoprovisions specifically covering rental rights.
Thedraftlawcontains aprovision covering rental rights atArticle 16.Thedraftlawisattached
atAttachment C3.
Question 206.(WT/ACC/KGZ/5, Qu.91)
Inwhich waywilltheKyrgyz Republic comply withArt.9(1)oftheTRIPS agreement? Does
theKyrgyz Republic intend toaccede totheBerne Convention of1971?
Answer:
ThedraftLawoftheKyrgyz Republic “OnCopyright andRelated Rights ”hasbeendeveloped
withregard totherequirements oftheBerne Convention. Therefore, afterthislawcomes intoforce,
therequirements oftheBerne Convention andofArticle 9those oftheTRIPS Agreement willbe
observed.
TheKyrgyz Republic intends tojointheBerne Convention (1971). Currently, theterms of
accession arebeing considered indetail; however exactterms ofaccession havenotyetbeenestablished.
Question 207.(WT/ACC/KGZ/5, Qu.92)
When istheentering intoforce ofthelaw“OnCopyright andRelated Rights ”tobeexpected?
Answer:
Consideration ofthedraftLaw“OnCopyright andRelated Rights ”byParliament isplanned
forthefirsthalfof1997.WT/ACC/KGZ/7
Page65
Question 208.(WT/ACC/KGZ/5, Qu.93)
Does thedraft copyright lawcomply withArt.14oftheTRIPS Agreement?
Answer:
Yes.
Question 209.(WT/ACC/KGZ/5/Add.2, Qu.114)
Concerning thedraft law“OnCopyrights andRelated Rights ”.Please provide theWorking Party
withacopy ofthisdraft legislation.
Answer:
Acopyofthedraftlegislation isprovided inAttachment C3.
Question 210.(WT/ACC/KGZ/5/Add.2, Qu.115)
Aretheprovisions ofthisdraft lawinconformity withtherequirements oftheBerne Convention
fortheProtection ofLiterary andArtistic Works? Please identify anddescribe anyprovisions
thatarenotconsistent withBerne Convention requirements.
Answer:
Thedraftlawiscurrently undergoing twominor amendments toensure compliance withthe
BerneConvention.Article27(5),whichcurrentlygrantslongercopyrighttermstoKyrgyzwarveterans,
isbeing deleted toensure compliance withtheBerne Convention ’snational treatment provision. A
similar provision atArticle 43,which grants longer neighbouring rights terms toKyrgyz veterans,
isalsobeing deleted. Otherwise, thedraftlaw“OnProtection ofCopyrights andNeighbouring Rights ”
complies withtherequirements oftheBerne Convention.
Question 211.(WT/ACC/KGZ/5/Add.2, Qu.116)
Willthedraft law“OnCopyrights andRelated Rights ”protect compilations ofdataorother
material?
Answer:
Yes.
Question 212.(WT/ACC/KGZ/5/Add.2, Qu.117)
Section V.1(b) oftheMemorandum refers toregistration ofcopyrights intheState Agency for
Intellectual Property. TheBerne Convention fortheProtection ofLiterary andArtistic Works,
incorporated byreference inArticle 9.1oftheTRIPS Agreement, prohibits anyformalities as
acondition forprotection ofcopyrights. Isregistration offoreign copyrights required toobtain
protection intheKyrgyz Republic and,ifso,howisthisjustified inlight oftheprovisions of
theTRIPS Agreement?WT/ACC/KGZ/7
Page66
Answer:
No;registration isoptional andisnotaprerequisite toprotection.
Question 213.(WT/ACC/KGZ/5/Add.2, Qu.118)
Thesection ofyour Memorandum onforeign trade V.2(a) mentions protection fortherights
ofperformers, producers ofphonograms, andbroadcast organizations onlyinrelation tothe
draft copyright lawIsprotection currently available toperformers, producers ofphonograms,
andbroadcast organizations under theCivilCode oranytemporary regulations? Ifso,what rights
areprovided, forhowlong, andhowmaythese rights beenforced?
Answer:
Legislation currently inforce doesnotspecifically provide foranyprotection ofrights of
performers, producers ofphonograms andbroadcast organizations. However, thedraftlegislation
which grants theprotection isexpected tocome intoforce thisyear.
Question 214.(WT/ACC/KGZ/5/Add.2, Qu.119)
Article 18oftheBerne Convention, incorporated byreference inArticle 9.1oftheTRIPS
Agreement, requires thatprotection under theConvention apply toallworks thatarenotinthe
public domain intheir country oforigin andthathave nothadafullterm ofprotection inthe
country applying theBerne Convention. Howwillthisobligation beimplemented under theKyrgyz
Republic ’sproposed copyright lawforbothcopyrighted works andsound recordings?
Answer:
Thedraftlaw“OnCopyrightandNeighbouringRights”containsthefollowingprovisiondealing
withthisissue:
Ifaninternational agreement towhich theKyrgyz Republic isasignatory establishes standards
other thanthose contained inthislaw,thentherules oftheinternational agreement shallbeapplied.
Thereferenced provision inArticle 18oftheBerne Convention shallbeapplied through this
general provision.
Question 215.(WT/ACC/KGZ/5/Add.2, Qu.120)
Articles 11and14.4oftheTRIPS Agreement require thatrental rights beprovided atleastfor
computer programs, cinematographic works (except incertain circumstances), andsound
recordings. Arerental rights currently available under theCivil Code oranytemporary
regulations? Ifso,what rights areprovided, forhowlong, andhowmaythese rights beenforced?
Answer:
TheCivil Code oftheKyrgyz Republic setsoutadefinition ofexploitation ofawork ofan
author byanother person (Article 501). Thedefinition ofexploitation isunderstood toinclude leasing
relationships, although theyarenotdirectly specified intheCivilCode. Article 517oftheCivil Code
provides forthepossibility ofconcluding authors ’agreements ontransfer ofworks ofliterature, science,
orart,forexploitation indifferent ways. Thelistofauthors ’agreements given inthisArticle isnot
exhaustive.WT/ACC/KGZ/7
Page67
Question 216.(WT/ACC/KGZ/5/Add.2, Qu.121)
How willthisobligation beimplemented under theKyrgyz Republic ’sproposed copyright law
forbothcopyrighted works andsound recordings?
Answer:
Thedraftlaw“OnCopyright andNeighbouring Rights ”(atArticle 16)specifically provides
forrental rights. Under thatArticle, anowner ofanaudiovisual work, software, database, ormusical
composition intheformofamusic texthastherighttodistribute thatwork through leasing, regardless
oftheownership ofactual copies ofthework.
Question 217.(WT/ACC/KGZ/5/Add.2, Qu.122)
Section V.1(d) oftheMemorandum refers tofeesfortheregistration ofcomputer programs,
databases. Article 10oftheTRIPS requires thatcomputer programs beprotected asliterary
works andthatcompilations ofdata, including computer databases, beprotected under copyright
law. TheBerne Convention fortheProtection ofLiterary andArtistic Works, incorporated by
reference inArticle 9.1oftheTRIPS Agreement, prohibits anyformalities asacondition for
protection ofcopyrights. What, ifany,benefits areaccorded totheowners ofregistered computer
programs ordatabases thatarenotavailable tounregistered owners ofcomputer programs
databases?
Answer:
TheTemporary Regulation ontheLegal Protection ofSoftware, Databases andTopographies
ofIntegrated Circuits (atparagraph 2.2)provides thatsoftware isprotected asaliterary work.
There arenobenefits accorded totheowners ofregistered programs thatarenotalsoavailable
toowners ofunregistered programs.
(b) Trademarks, including service marks
Question 218.(WT/ACC/KGZ/5, Qu.94)
How arewell-known marks protected?
Answer:
Incompliance withtheParisConvention, noregistration ofwell-known trademarks isrequired.
However, voluntary registration forwell-known trade marks ispossible.
Atpresent,inmakingexpertexaminationsandresolvingissuesregardingrefusalsofregistration,
where agenerally-known trade mark isinvolved, experts oftheTrade Mark Expert Examination
Department follow onlytheirpersonal knowledge.
Under thecurrent “Temporary Regulation onIndustrial Property, ”theowner ofaregistered
well-known mark mayfileacivilaction incivilcourt against anunauthorized userofthemark. The
onlyjudicial remedies currently available are:(i)aninjunction; (ii)anaward ofcompensation for
losses; and(iii)anassessment ofapenalty.WT/ACC/KGZ/7
Page68
Thedraft trademark lawalsoprovides forcivilenforcement, andforthejudicial remedies
available under theexisting regulations. Inaddition, thecourt canauthorize acourt official toseize
theoffending goods. Thedrafttrademark lawalsoprovides forcriminal penalties intheevent ofongoing
violations ofthetrademark law.
Thelawisthesame forwell-known marks.
Question 219.(WT/ACC/KGZ/5, Qu.95)
Inthesection ontrademarks inWT/ACC/KGZ/3 itissaidthattrademarks areprotected for
aperiod oftenyears. Does thismean thatafter thisperiod haselapsed nofurther protection is
granted?
Answer:
Registration ofatrademark isvalid fortenyears from thepriority date. Thevalidity term
ofthetrademark maybeextended pursuant totheowner ’sapplication submitted within thelastyear
ofthetrademark ’svalidity, forsuccessive ten-year periods, onthecondition thattherequired feeis
paid.
Question 220.(WT/ACC/KGZ/5, Qu.96)
Amore comprehensive draft trade mark lawiscurrently pending before theParliament. Could
theKyrgyz Government explain itsmain elements?
Answer:
Thedrafttrademark lawisattached asAttachment C2.
When isitexpected toenter intoforce? (WT/ACC/KGZ/5, Qu.97)
Answer:
Enforcement ofthelawwillbeestablished bytheLaw“OnEnforcement oftheLawofthe
Kyrgyz Republic “OnTrade Marks, Service Marks andAppellations ofOrigin ”.Consideration of
thedraftlawontrade marks byParliament isplanned forthefirsthalfof1997.
Could theKyrgyz Government provide acopy ofthelaw? (WT/ACC/KGZ/5, Qu.98)
Answer:
Thedraftisattached asAttachment C2.
Question 221.(WT/ACC/KGZ/5, Qu.99)
Does the“more comprehensive draft trade mark law”currently pending before the
Parliament, comply withArt.15-21 oftheTRIPS Agreement?
Answer:
Yes.WT/ACC/KGZ/7
Page69
When istheentering intoforce tobeexpected? (WT/ACC/KGZ/5, Qu.100)
Answer:
Itisscheduled tobevoted byParliament inthefirsthalfof1997.
Question 222.(WT/ACC/KGZ/5/Add.2, Qu.123)
Please provide theWorking Party withacopy ofthedraft trademark law,currently pending
before Parliament.
Answer:
Thedraftlawisincluded inAttachment C2.
Question 223.(WT/ACC/KGZ/5/Add.2, Qu.124)
DotheTemporary Regulations anddraft Trademark Lawprovide forcancellation ofatrademark
application fornon-use?
Answer:
TheTemporary Regulations currently inforcedonotprovide forcancellation based onnon-use.
However, Article 21ofthedraftTrademark Lawprovides forcancellation ofamark thathasnotbeen
usedfor3years.
Question 224.(WT/ACC/KGZ/5/Add.2, Qu.125)
Article bisoftheParis Convention, incorporated byreference inArticle 2.1ofthe
TRIPS Agreement, requires thatwell-known marks beprotected. Isprotection forwell-known
marks currently available under theCivil Code oranytemporary regulations? How willthis
obligations beimplemented under theKyrgyz Republic ’sproposed lawontrademarks, service
marks andappellations oforigin?
Answer:
Civil Code PartI,which iscurrently inplace, contains nospecific provisions onwell-known
marks.
Thecurrent “Temporary Regulations onIndustrial Property, ”incompliance withtheParis
Convention, donotrequire registration ofwell-known marks. However, voluntary registration for
well-known marks ispossible. Atpresent, SIPA iscarrying outwork todevelop methods todetermine
whether atrademark iswell-known, andisinvestigating theexperience ofother countries. Toenforce
rights inatrademark, including awell-known mark, theowner ofthemark mayfileacivilaction
incivilcourt against anunauthorized userofthemark. Theonlyjudicial remedies currently available
are(i)aninjunction, (ii)anaward ofcompensation forlosses and(iii)anassessment ofapenalty.
TheKyrgyz Republic ’sproposed law“OnTrademarks, Service Marks andAppellations of
Origin ”wasdrafted toensure compliance withtheParisConvention. Likethetemporary regulations,
thedraftlawdoesnotrequireregistrationofwell-knownmarks,butvoluntaryregistrationforwell-known
marks remains possible. Incompliance withArticle 6bisoftheParis Convention, thedraftlaw(atWT/ACC/KGZ/7
Page70
Article 6)provides that“marks maynotberegistered astrademarks iftheyareidentical orsufficiently
similar astocause confusion withawell-known mark intheterritory oftheKyrgyz Republic. ”
Toensure thatholders ofwell-known marks canenforce theirrights, thedraftlawprovides
forthesamejudicialremediesavailableundertheexistingregulations.Inaddition,thedraftlawprovides
thatacourt mayorder seizure ofcounterfeit goods, aswellascriminal penalties forongoing violations.
Theprovisions apply equally tocases involving well-known andordinary marks.
Question 225.(WT/ACC/KGZ/5/Add.2, Qu.126)
Ispriority currently granted toapplicants ofParis Convention countries, ifthey apply for
registration intheKyrgyz Republic within sixmonths ofthenational filing?
Answer:
Yes.
Question 226.(WT/ACC/KGZ/5/Add.2, Qu.127)
Under theCivil Code ortemporary regulations onindustrial property, isitpossible tooppose
registration ofamark ortoseekitscancellation, ifithasalready been registered? What are
theprocedures foropposing registration orcancellation?
Answer:
TheCivil Code currently inforce doesnotdealwithopposition orcancellation.
Under the“Temporary Regulations onIndustrial Property, ”(atArticle 16),anyperson or
legalentity mayoppose theregistration ofamark, orseekcancellation ofaregistered mark. Inboth
cases, apetition must befiledwiththeAppeals Board ofSIPA. TheAppeals Board must consider
thepetition within 6months fromthedateofitsreceipt. Boththepetitioner andtheowner ofthemark
havetherighttoparticipate intheAppeals Board ’sconsideration ofthepetition.
Question 227.(WT/ACC/KGZ/5/Add.2, Qu.128)
Please describe thenature ofthemarks thatareeligible forregistration.
Answer:
Ingeneral, amark iseligible forregistration ifitserves todistinguish thegoods andservices
ofoneperson orentity fromsimilar goods andservices ofother persons orentities. Verbal, graphic,
volumetric andother signs ortheircombinations mayberegistered astrade marks.
Non-registrable marks include marks which arenotdistinctive; national symbols, flags, and
emblems; official names ofStates, emblems, abbreviated orfullnames ofinternational or
intergovernmentalorganizations,official,control,guaranteestampsandhallmarks,seals,anddecorations;
marks generally applicable asmarks ofgoods ofacertain kind(i.e.,generic marks); generally accepted
terms andsymbols; andmarks which arepurely indications ofappearance, quality, quantity,
characteristics, purpose, value ofgoods, oroftheplace andtimeoftheirproduction orsale(i.e.,
descriptive marks). Moreover, nomark mayberegistered which isfalseorliable tocause consumer
confusion regarding thegoods ortheirmanufacturer. Marks contradicting thepublic interest, principles
ofhumanity andmorality arealsonoteligible forregistration.WT/ACC/KGZ/7
Page71
Marks mayalsonotberegistered iftheyaresosimilar oridentical astocause confusion with:
- trademarks previously registered orfiledforregistration intheKyrgyz Republic under the
name ofanother person inrelation toidentical goods;
- trademarks ofother persons which areprotected without registration under theinternational
agreements oftheKyrgyz Republic;
- trade names (ortheircomponents) belonging toother persons whoobtained therighttothese
designations before thereceipt ofanapplication foratrademark inrelation toidentical goods;
- appellations oforigin ofgoods protected intheKyrgyz Republic, except incases inwhich they
areincluded asanunprotected element inatrademark, registered totheindividual whohas
therighttousesuchadesignation.
Designations shallnotberegistrable astrademarks where theypresent:
- industrial designs therights, towhich belong toother persons intheKyrgyz Republic;
- names ofwell-known works ofscience, artorliterature orquotations therefrom, orworks
ofartortheircomponents, without consent ofthecopyright author oranappropriate competent
body;
- names, pseudonyms andtheirderivatives, portraits andfacsimiles offamous persons, without
consent oftheirheirs oranappropriate competent body.
(c) Geographical indications, including appellations oforigin
Question 228.(WT/ACC/KGZ/5, Qu.101)
Could theKyrgyz Government explain themain elements oftheprotection ofgeographical
indications andappellations oforigin asforeseen inthedraft trademark law?
Answer:
SeeAttachment C2.
Question 229.(WT/ACC/KGZ/5, Qu.102)
Does thedraft trade mark lawpending before Parliament accomplish therequirements of
Article 22.2oftheTRIPS Agreement?
Answer:
Yes.
Question 230.(WT/ACC/KGZ/5/Add.2, Qu.129)
Please describe thenature oftherights tobeprovided geographical indications intheproposed
draft trademark law.
Answer:
Under thedraft law“OnTrade Marks, Service Marks andAppellations ofOrigin, ”legal
protection ofanappellation oforigin arises onthebasis ofregistration. Anappellation oforigin
mayberegistered byoneormore entities orpersons who(i)arelocated inthegeographical location
indicated bytheappellation oforigin; and(ii)produce goods thathavespecial characteristics whichWT/ACC/KGZ/7
Page72
areexclusively ormainly determined bynatural conditions and/or human factors characteristic ofthe
geographical place indicated intheappellation. Registration isvalidforanunlimited period oftime.
Aparty whoregisters anappellation oforigin obtains therighttoaffixtheappellation tohis
goods, provided thathisgoods have thespecial characteristics indicated above. Theholder ofa
registration document mayplace awarning mark neartheappellation oforigin, indicating thatthe
designation usedisanappellation oforigin registered intheKyrgyz Republic. Theholder ofa
registration document maynotlicence theuseoftheappellation toother persons.
Aregistered appellation oforigin maynotbeusedbyparties whodonothavearegistration
document. Also, noonemayaffixaregistered appellation togoods which aresimilar tothose for
which registration wasgranted, because suchuseislikely toleadtoconsumer confusion.
Itshould benoted thatthedrafttrade mark lawtreats appellations oforigin distinctly from
mere geographical indications. Under Article 5(6)ofthedraftlaw,purported marks which merely
describe agood’splace ofmanufacture orsalearebarred fromregistration. Moreover, amark which
includes deceptively misdescriptive geographical terms would benon-registrable under Article 5(7)
ofthesamelaw,which prohibits theregistration ofmarks which arefalseormisleading astothegoods
ortheirmanufacturer.
Question 231.(WT/ACC/KGZ/5/Add.2, Qu.130)
Isprotection currently available forgeographical indications, including appellations oforigin,
under theAnti-Monopoly law?
Answer:
Yes.Under theLaw“OnRestricting aMonopolistic Activity, Development andProtection
ofCompetition”(atSection5,Article19)appellationsoforiginareprotected.Remediesforinfringement
ofprotected appellations oforigin include: (i)disgorgement ofillegal profits; (ii)indemnification,
including indemnification forlostprofits; and(iii)punitive damages.
(d) Industrial designs
Question 232.(WT/ACC/KGZ/5, Qu.103)
Could theGovernment oftheKyrgyz Republic explain whether textile designs areprotected?
Ifyes,how?
Answer:
Yes,theyareprotected. Legal protection ofindustrial designs isregulated bytheTemporary
Regulation “OnIndustrial Property oftheKyrgyz Republic. ”
Anapplication onanindustrial design maybesubmitted through apatent attorney registered
inKyrgyzpatent.
Patent information, uponwhich apatent examination hasrelied indetermining thecompliance
oftheindustrial design totheconditions ofpatentability, ispublished intheofficial bulletin of
Kyrgyzpatent. Thepublication ismade within 6months fromtheregistration dateintheStateRegister
ofIndustrial Property oftheKyrgyz RepublicWT/ACC/KGZ/7
Page73
After deciding togrant aprotection document, butbefore theinformation ispublished,
Kyrgyzpatent includes information intotheStateRegister ofIndustrial Property oftheKyrgyz Republic
andgrants tothepatent-holder anappropriate protection document.
Kyrgyzpatent grants aprotection document onthebasis ofitsregistration within a6-month
period afterreceiving adocument onpayment oftherequired fee.
Anindustrial design patent isvalidfortenyears fromthepriority date. Apreliminary industrial
design patent isvalid for3years from thedateofpriority (application registration datewith
Kyrgyzpatent).
Thepatent-holder hastheexclusive right touseandtolicence theuseofthedesign. The
unauthorized manufacture, use,import, offerforsale,saleandotherintroduction ofaproduct containing
thedesign intocommerce isconsidered tobeviolation ofthepatent-holder ’srights.
Question 233.(WT/ACC/KGZ/5/Add.2, Qu.131)
Under theTemporary Regulations onIndustrial Property, areindustrial designs registered or
isexamination ofapplications required?
Answer:
Both; industrial designs areregistered, andexamination ofapplications, according toprocedures
established bytheTemporary Regulations, isaprerequisite forregistration.
Question 234.(WT/ACC/KGZ/5/Add.2, Qu.132)
Please describe therights acquired inindustrial designs andhowmaytheybeenforced?
Answer:
Theholder ofapatent toanindustrial design hastheexclusive righttomanufacture, import,
offer forsale,sellandotherwise introduce thedesign intocommerce. Unauthorized manufacture,
importation, offer forsale, saleorintroduction ofaprotected design intocommerce constitutes
infringement.
Thefollowing donotconstitute infringement:
- theuseofmechanisms containing patented industrial designs intheconstruction oruseof
transport vehicles ofother countries, where suchvehicles aretemporarily orincidentally in
theterritory oftheKyrgyz Republic;
- theconduct ofscientific research orexperiments using amechanism containing apatented
industrial design;
- theuseofmechanisms containing patented industrial designs inresponse tonatural disasters,
catastrophes, epidemics andother extreme situations, aslongascompensation islatermade
tothepatent-holder;
- theprivate, non-commercial useofamechanism containing apatented industrial design; orWT/ACC/KGZ/7
Page74
- theuseofamechanism containing apatented industrial design, where themechanism hasbeen
legally introduced intocommerce.
(e) Patents
Question 235.(WT/ACC/KGZ/5, Qu.104)
Arethere anyprovisions oncompulsory licensing andgovernment use? Ifyes,could theKyrgyz
Government explain them?
Answer:
Yes.
The“Temporary Regulations onIndustrial Property ”(Article 6,paragraph 6.3)provide for
compulsory licensing incertain circumstances, specifically: (i)intheevent ofnon-use orinsufficient
useby:(i)thepatent-holder ofaninvention within thefirstfouryears, or(ii)bytheholder ofautility
model certificate within thefirstthree years, fromthedateoftheissuance ofthepatent orcertificate.
Iftheholder refuses toconclude alicensing agreement, anyperson desiring andprepared tousethe
protected object mayapply toaneconomic courtforacompulsory licence. Iftheholder doesnotprovide
validreasons forthenon-use orinsufficient use,thecourt maygrant therequested licence andimpose
-within itsdiscretion -limits onitsterms, including apayment obligation.
Inaddition, para. 6.5ofthose same temporary regulations provides fortheunlicensed use
ofprotected inventions, utility models andindustrial designs incertain emergency situations (e.g.,
natural disasters, catastrophes, epidemics, etc.),withasubsequent payment ofappropriate compensation
totheholder.
According toitem5.6ofthe“Temporary Regulations ontheProcedure ofHandling Secret
Inventions, Utility Models andIndustrial Designs ”oftheMinister ofEducation andScience of
29August 1995, theCabinet ofMinisters hastheright“forthepurpose ofthesecurity oftheKyrgyz
Republic ”toauthorize theuseofsecret inventions, utility models andindustrial designs -without
theconsent oftheholder -ifappropriate compensation ispaidtotheholder.
Question 236.(WT/ACC/KGZ/5, Qu.105)
Does theimportation ofgoods which areprotected byapatent fulfil thecondition of“working
thatpatent ”?
Answer:
Yes.
Question 237.(WT/ACC/KGZ/5, Qu.106)
How doestheGovernment oftheKyrgyz Republic define “public interest ”and“principles of
humanity ”inthecontext ofexceptions topatentability?
Answer:
Reasons forexclusion frompatentability arebased ononlymoral principles supported byforce
ofpublic opinion.WT/ACC/KGZ/7
Page75
Denial ofpatentability because ofcontradiction toprinciples ofhumanity andmorals isnot
nowbased onofficial normative documents andmaybeonlyaccompanied byreferences tosources
which haveastatement ofhumane ideasandmoral-ethic standards formed inthesociety, inconformity
withtheinternational standards setforth intheapplicable international agreements.
Question 238.(WT/ACC/KGZ/5, Qu.107)
Please define thepatentable matter intheKyrgyz Republic asprovided forArt.27oftheTRIPS
Agreement.
Answer:
InaccordancewithArticle27oftheTRIPSAgreement,the“TemporaryRegulationsonIndustrial
Property ”provide that:“Aninvention isgiven legalprotection ifitisnew,contains inventive level,
andisapplicable forproduction. ”Thedraftpatent lawprovides thesame.
Question 239.(WT/ACC/KGZ/5, Qu.108)
DotheTemporary Regulations onIndustrial Property foresee thepossibility forother useofthe
subject matter ofapatent without theauthorization oftheright holder according toArt.31of
theTRIPS Agreement?
Answer:
According toitem6.3ofTemporary Regulation onIndustrial Property, “Ifapatented invention
isnotused, orisusedbelow itscapacity, foraperiod offouryears, orautility model foraperiod
ofthree years, fromthetimeoftheissuance ofthepatent orcertificate, anyperson willing andready
tousetheprotected object ofindustrial property, upon refusal bythepatent holder toenter intoa
licensing agreement, mayapply tothecourt oftheKyrgyz Republic [under Article 21ofthepresent
provisions] withapetition toobtain acompulsory licence. Ifthepatent holder doesnotprove that
hisinsufficient useoftheobject ofindustrial property iscaused byserious reasons, theCourt shall
provide forthespecified licence, along withadetermination ofthelimits ofuse,andtheamount, terms
andorder ofpayments. Licence feesshallbeestablished atalevelnotlessthanmarket price ofthe
licence. ”
According toitem6.5ofthesame Regulation, infringement oftheexclusive righttousean
object ofindustrial property doesnotinclude:
- theuseofdevices containing protected inventions, utility models orindustrial designs, where
theuseoccurs intheconstruction oruseoftransportation vehicles from other countries, or
support equipment forsuchvehicles, where suchtransportation vehicles aretemporarily or
incidentally present ontheterritory oftheKyrgyz Republic. Suchactions arenotrecognized
asviolation oftheexclusive righttoexploit theobjects ofindustrial property ifthetransportation
vehicles areowned bycitizens orlegalentities ofcountries providing thesamerights tocitizens
andlegalentities oftheKyrgyz Republic;
- useforthepurpose ofconducting scientific experimentation orresearch onadevice containing
aprotected invention, utility model orindustrial design;
- single preparations ofmedicines inpharmacies upon adoctor ’sprescription;WT/ACC/KGZ/7
Page76
- useofdevices containing protected inventions, utility models orindustrial designs inconditions
ofnatural disasters, catastrophes, epidemics andother emergency circumstances, witha
subsequent payment ofreasonable compensation tothepatent holder;
- personal, non-commercial useofdevices containing protected inventions, utility models or
industrial designs; or
- useofdevices containing protected inventions, utility models orindustrial designs, where such
devices arelegally introduced intocommerce.
Article 14ofthedraftPatent LawoftheKyrgyz Republic, entitled “Actions NotConsidered
asViolation oftheExclusive Right ofthePatent Holder, ”contains provisions similar toitem6.5of
theTemporary Regulation onIndustrial Property oftheKyrgyz Republic, except forthefollowing
passages: “single preparation ofmedicines inpharmacies adoctor ’sprescription ”and“personal,
non-commercial useofdevices containing protected inventions, utility models orindustrial designs. ”
Thesixthpassageofitem6.5oftheTemporaryRegulationonIndustrialPropertyoftheKyrgyzRepublic
isrepeated inthedraftPatent Law, asfollows: “Useofdevices containing aninvention, utility model
orindustrial design protected byapreliminary patent, patent orcertificate, ifsuchdevices arelegally
putintocommerce according torights granted bythepatent holder. Further, aperson who, withthe
permission ofthepatent holder, purchases adevice containing invention, utility model orindustrial
design ormanufactured withapplication ofthepatented method hastherighttouseorownthisdevice
without additional permission, unless otherwise stipulated bytheagreement. ”
Accordingtoitem7oftheTemporaryRegulationonIndustrialPropertyoftheKyrgyzRepublic:
“Anycitizen orlegalentity who, before thedateofthepriority ofinvention, utility model, industrial
design andindependently fromitsauthor hasdesigned andusedadevice ontheterritory oftheKyrgyz
Republic identical totheinvention, orhasmade required preparations foritsuse,retains therightfor
future freeuse,without permission toexpand itsscope.
“Therightofprior usemaybetransferred toanindividual orlegalentity onlytogether with
theproduction linewhich hasbeenusedforitsproduction, orhasbeenprepared foritsproduction. ”
Question 240.(WT/ACC/KGZ/5/Add.2, Qu.133)
Please provide acopy ofthedraft patent lawandadvise itsstatus inthelegislative process.
Answer:
Thedraftlawisincluded inAttachment C1.Itslegislative status isexplained intheresponse
toQuestion 190above.
Question 241.(WT/ACC/KGZ/5/Add.2, Qu.134)
TheTemporary Regulations provide forpatent protection foraperiod oftwenty years from the
“priority date”.TRIPS Article 33provides patent protection fortwenty years from thedateof
filing. How istheterm “priority date”defined forpurposes oftheTemporary Regulations and
thedraft patent law?
Answer:
Under boththeTemporary Regulations andthedraftPatent Law, theterm“priority date”is
defined asdateonwhich thepatent application isfiledwithSIPA.WT/ACC/KGZ/7
Page77
Question 242.(WT/ACC/KGZ/5/Add.2, Qu.135)
How longisthegrace period referred toinsection V.2(e)?
Answer:
Thegrace period is12months. Iftheapplication ismade within 12months from thedate
ofdisclosure, thedisclosure shallnotinfluence thepatentability oftheinvention.
Question 243.(WT/ACC/KGZ/5/Add.2, Qu.136)
Please describe anycompulsory licensing provisions inthetemporary regulations, including any
thatwould permit asecond patentee tousethetechnology patented byanother, ifitwerenecessary
todosoinorder toexploit thesecond patent. Please describe howthetemporary regulations
anddraft patent lawwillensure thateachoftheconditions ofArticle 31oftheTRIPS Agreement
ismetbefore acompulsory licence canbegranted?
Answer:
Thetemporary regulations donotcontain compulsory licensing provisions related tosecond
patents, asreferenced inArticle 31(1) oftheTRIPS Agreement. Nordothetemporary provisions
provide specifically fornon-assignability (asreferenced inArticle 31(e)), orfordomestic supply
restrictions (asreferenced inArticle 31(f)). However, thetemporary regulations takeintoaccount
eachoftheother requirements ofArticle 31oftheTRIPS Agreement. Article 6(3)ofthetemporary
regulations provides forcompulsory licensing incertain circumstances, specifically intheevent of
non-use orinsufficient useby(i)thepatent-holder ofaninvention within thefirstfouryears, or(ii)by
theholder ofautility model certificate within thefirstthree years, from thedateoftheissuance of
thepatent orcertificate. Iftheholder refuses toconclude alicensing agreement, anyperson desiring
andprepared tousetheprotected object mayapply tothecourt foracompulsory licence. Iftheholder
doesnotprovide valid reasons forthenon-use orinsufficient use,thecourt maygrant therequested
licence andimpose, within itsdiscretion, limits onitsterms, including apayment obligation.
ThedraftPatent Lawalsotakesintoaccount eachoftherequirements ofArticle 31oftheTRIPS
Agreement. ThedraftPatent Law(atArticle 13)contains compulsory licence provisions similar to
those inthetemporary regulations. However, thedraftPatent Lawcontains anadditional provision
allowing fortheunlicensed useofprotected inventions, utility models andindustrial designs incertain
emergency situations (e.g., natural disasters, catastrophes, epidemics, etc.), withasubsequent payment
ofappropriate compensation totheholder.
Question 244.(WT/ACC/KGZ/5/Add.2, Qu.137)
Article 27.1oftheTRIPS Agreement requires thatpatents beavailable inallfields oftechnology
withtheexception ofthose indicated inparagraphs 2and3.Integrated circuit topologies isnot
among thelisted exceptions. Willthedraft patent laweliminate theexclusion from patentability
nowapplied tointegrated circuit topologies?
Answer:
No,thedraft patent lawwillnoteliminate theexclusion. However, integrated circuit
topographies arecovered byaseparate draftlaw,andarepatentable under thatlaw.WT/ACC/KGZ/7
Page78
Question 245.(WT/ACC/KGZ/5/Add.2, Qu.138)
Please describe therights acquired byapatentee withthegrant ofhispatent.
Answer:
Under thedraftPatent Law, apatent-holder hastheexclusive righttomanufacture, import,
offerforsale,sellandotherwise introduce thedesign intocommerce, andtoprohibit these activities
byothers. Apatent-holder alsohastherighttoown, useanddispose ofthepatent itself.
(f) Plant variety protection
Question 246.(WT/ACC/KGZ/5, Qu.109)
Could theKyrgyz Government explain themain elements ofitsprotection inthe“Temporary
Regulations onBreeding Achievements ”?
Answer:
These regulations havealready beensubmitted totheWTO.
Apatent protecting abreeding achievement (alsotranslated as“selection achievement ”)that
meets therequirements oftheregulations maybeissued tothecreator thereof. Thepatent certifies
theexclusive right ofthepatent-holder touseandtolicence theuseofthebreeding achievement.
Abreeding achievement isanewvariety ofplant oranimal.
Iftheresult ofthepreliminary examination oftheapplication ispositive, apreliminary patent
valid forfiveyears isissued. Thetermofapatent onavariety ofplant is20years; onavariety of
grape, ornamental plant, fruitcroporforestry species, aswellastheirstocks, 30years; andonavariety
ofanimal, 25years. Thetermbegins onthedatethattheapplication wassubmitted.
Apatentable breeding achievement mustbe:(i)novel, (ii)distinguishable, (iii)homogeneous
and(iv)stable.
Apatent-holder hastheexclusive righttouseandlicence theuseoftheachievement, including
its(i)production andreproduction, (ii)planting, (iii)offerforsale,(iv)saleorothertransfer (v)import
orexport, and(v)storage forsuchpurposes.
Question 247.(WT/ACC/KGZ/5/Add.2, Qu.139)
DotheTemporary Regulations onIndustrial Property ortheTemporary Regulations onBreeding
Achievements provide patent protection forplant microorganisms, andfornon-biological processes
fortheproduction ofplants? Does theRepublic ofKyrgyz provide similar patent protection
foranimal microorganisms, andfornon-biological processes fortheproduction ofanimals?
Answer:
Yes;theTemporaryRegulationsonIndustrialPropertyprotectplantandanimalmicroorganisms,
aswellasnon-biologicalprocessesfortheproductionofplantsandanimals.TheTemporaryRegulations
onBreeding Achievements protects thesame microorganisms andprocesses.WT/ACC/KGZ/7
Page79
Question 248.(WT/ACC/KGZ/5/Add.2, Qu.140)
Section V.2(f) refers toprotection forplant varieties andanimal breeds under theTemporary
Regulations onIndustrial Property.
Please describe thenature oftherights provided, including anylimitations, andhowtheyare
acquired.
Answer:
Theholder ofapatent toaselection achievement hastheexclusive righttoconduct thefollowing
activities withrespect tothepatented material:
- production andreproduction;
- bringing tomaturity forreproduction;
- offer forsale;
- saleandother types ofdistribution;
- import andexport from theterritory oftheKyrgyz Republic; and
- storage fortheabove-mentioned purposes.
Thepatent-holder maylicence these rights tothirdparties, orprohibit theirconduct bythirdparties.
(g) Layout designs ofintegrated circuits
Question 249.(WT/ACC/KGZ/5/Add.2, Qu.141)
Please provide totheWorking Party acopyofthedraft law“OntheLegal Protection ofIntegrated
Circuit Technologies. ”
Answer:
Thedraftlawisincluded inAttachment C4.
Question 250.(WT/ACC/KGZ/5/Add.2, Qu.142)
Please describe thenatural oftherights acquired under thedraft lawandunder theTemporary
Regulations OntheLegal Protection ofComputer Programs, Databases andIntegrated Circuits,
andindicate theterm ofthese rights.
Answer:
Under thedraftlaw,thecreator ofacomputer program, database orintegrated circuit hasthe
following author ’s(moral) rights: theright toclaim authorship (theright ofpaternity); theright to
decide whether theauthor ’sname willappear onthework; andtherighttoinviolability. Thecreator
alsohastheexclusive economic right toexploit his/her topography athis/her discretion, through
manufacturing, distributing (which includes thenotion ofcopying), andprohibiting theexploitation
ofthework byothers without permission.
Thecreator ’smoral rights arevalidwithout timelimitation. Thecreator ’sexclusive economic
rights arevalid fortenyears from thedateoffirstuse,orfrom thedateofregistration ofthework
withSIPA.WT/ACC/KGZ/7
Page80
Question 251.(WT/ACC/KGZ/5/Add.2, Qu.143)
Please describe theprocedure forobtaining thecertificate referred toinSection V.2(g).
Answer:
Theprocedure toobtain thecertificate consists ofseveral steps:
- submission ofanapplication forregistration, which complies withapplicable requirements;
- examination oftheapplication toensure compliance withtherequirements;
- iftheexamination ’sresults arepositive, dataareincluded inaRegister;
- grant ofthecertificate; and
- publication ofdataintheSIPA bulletin.
Question 252.(WT/ACC/KGZ/5/Add.2, Qu.144)
Please describe anyprovisions inthedraft lawandunder theTemporary Regulations relating
tocompulsory licensing forintegrated circuits.
Answer:
There arenosuchprovisions inthedraftlawortheTemporary Regulations.
Question 253.(WT/ACC/KGZ/5/Add.2, Qu.145)
Would aproduct containing infringing integrated circuits beconsidered toviolate therights of
theowner ofthecertificate protecting theintegrated circuit?
Answer:
Yes;aproduct containing infringing integrated circuits would violate therights oftheowner
ofthecertificate protecting theintegrated circuit, except where theuseroftheproduct didnotknow,
andshould nothaveknown, thattheproduct contained suchinfringing integrated circuits.
Question 254.(WT/ACC/KGZ/5/Add.2, Qu.146)
Dothedraft lawandTemporary Regulations provide protection against products thatinclude
infringing integrated circuits ,asisrequired byArticle 37.1oftheTRIPS Agreement?
Answer:
Yes;thedraftlaw“OnLegal Protection ofIntegrated Circuit Topographies ”(atArticle 8)
andtheTemporary Regulations (atparagraph 21.1) comply withtotherequirements ofArticle 37.1
oftheTRIPS Agreement.
(h) Requirements onundisclosed information
Question 255.(WT/ACC/KGZ/5/Add.2, Qu.147)
Aredamages theonlyremedy available against persons whohave misappropriated undisclosed
information? Ifnot,please describe theother remedies thatwould beavailable totheowner of
theundisclosed information.WT/ACC/KGZ/7
Page81
Answer:
No,damages arenottheonly available remedy. There arealsocriminal penalties for
misappropriation ofundisclosed information (atArticle 165(2) oftheCriminal Code). Also, injunctive
relief isavailable.
Question 256.(WT/ACC/KGZ/5/Add.2, Qu.148)
Please describe theactions thatcanbetaken against aparty whoacquires undisclosed information
andwhoknew, orshould haveknown, thattheinformation belonged toanother party whointended
thatitbekeptsecret because ithadcommercial value. Ifsuchactions arenotavailable currently,
howwillsuchactions bemade available inthefuture?
Answer:
TheCode oftheKyrgyz Republic onAdministrative Violations provides forremedies against
aparty whoreceives undisclosed information under suchcircumstances. Specifically, Article 151of
theCode setsoutafineoftentimes theminimum monthly wage forunauthorized useordisclosure
ofconfidential scientific, technical, productive ortrade information.
Question 257.(WT/ACC/KGZ/5/Add.2, Qu.149)
Please describe themanner inwhich thecriminal penalties referred toinsection V.2(h) canbe
invoked.
Answer:
Article 165(2) oftheCriminal Code provides thatthetheftofadatabase, program, orsoftware
bymeans ofunauthorized copying, printing, oranyother means ispunishable byimprisonment for
uptotwoyears, orbyafineof50-150times theminimum monthly wage.
(i) Anyother categories ofintellectual property
Question 258.(WT/ACC/KGZ/5/Add.2, Qu.150)
Section V.2(i) states thatthedraft law“OnTrade Marks, Service Marks andAppellations of
Origin ”willprohibit theregistration ofmarks thatreproduce company names owned byothers.
Please describe themanner inwhich theKyrgyz Republic ensures thatcompany names, orparts
thereof, donotreproduce trademarks, service marks, andappellations oforigin known inthe
Kyrgyz Republic.
Answer:
TheDraft Provisions onTrade Names havebeenprepared, andareexpected tobeadopted
bytheGovernment. Paragraph 2.3oftheseDraft Provisions provides thattradenames which coincide
withverbal trademarks andservice marks ofother owners protected ontheterritory oftheKyrgyz
Republic shallnotberegistrable. Further, trade names which include well-known names shallnot
besubject toregistration.
Incompliance withParagraph 4.4.6 oftheTemporary Provisions onIndustrial Property of
theKyrgyz Republic, designations which aresimilar oridentical toexisting marks, totheextent of
causing confusion withexisting trademarks (ortheircomponents), andwhich belong toother personsWT/ACC/KGZ/7
Page82
whoobtained therighttothename before thereceipt oftheapplication forthetrademark inrelation
tothesame goods cannot beregistered astrademarks.
3. Measures toControl Abuse ofIntellectual Property Rights
Question 259.(WT/ACC/KGZ/5/Add.2, Qu.151)
Does importation satisfy theworking requirement forpatented inventions, asprovided by
section 6.3oftheTemporary Regulations onIndustrial Property? Importation must satisfy the
working requirement inorder fortheuserequirement tosatisfy national treatment requirements.
Answer:
Yes;importation satisfies theworking requirement contained inparagraph 6.3oftheTemporary
Regulations onIndustrial Property.
4. Enforcement
(a) Civil judicial procedures andremedies
Question 260.(WT/ACC/KGZ/5, Qu.113)
Please specify ifenforcement procedures asspecified inPartIIIoftheTRIPS Agreement are
orwillbeavailable under Kyrgyz law. Does Kyrgyz lawcomply witharticles 42-49 oftheTRIPS
Agreement concerning theorganization ofcivilandadministrative procedures?
Answer:
Existing legislation oftheKyrgyz Republic regulating civilandadministrative procedures and
remedies inconnection withtheenforcement ofintellectual property rights complies withArticles 42-49
oftheTRIPS Agreement, except Article 46.ThedraftAdministrative andCriminal Codes takeinto
account theprovisions ofArticle 46.
TheKyrgyz Republic commits thatitwillreview andpropose allnecessary amendments to
therelevant legislation andregulations forthepurpose ofbringing them intocompliance withthe
requirements ofPartIIIoftheTRIPS Agreement.
Question 261.(WT/ACC/KGZ/5/Add.2, Qu.152)
Areinjunctions available intheKyrgyz Republic tostopinfringement inaddition todamages?
What aretherequirements forobtaining aninjunction?
Answer:
Yes,injunctions areavailable. Thebasic requirement istoestablish thefactofillegal use.
Currently, SIPA isconsidering developing more detailed requirements.
Question 262.(WT/ACC/KGZ/5/Add.2, Qu.153)
Mayjudges oradministrative officials order theseizure anddestruction ofinventories ofinfringing
goods andoftheequipment used toproduce theinfringing goods? What procedures must be
followed andwhat evidence presented toobtain suchremedies?WT/ACC/KGZ/7
Page83
Answer:
Yes.Incompliance withlegislation inforce (Civil Procedural Code, Article 135.1) judges
may,upontherequest ofaplaintiff orwithin theirowndiscretion, order theseizure ofinfringing goods.
Thedraftlawsprovide forfurther measures, suchasconfiscation anddestruction ofinfringing goods
andequipment usedtoproduce infringing goods. Toobtain suchremedies, itisnecessary tosubmit
tothecourt anapplication thatindicates obvious infringement.
(b) Provisional measures
Question 263.(WT/ACC/KGZ/5, Qu.114)
Does Kyrgyz lawcomply withtherequirements ofprovisional measures according toArticle 50
oftheTRIPS Agreement?
Answer:
With theexception ofArticle 50.1(a), thejudicial authorities oftheKyrgyz Republic have
theauthority under existing lawtotakealloftheactions specified inArticle 50oftheTRIPS Agreement.
Inorder tocomply withArticle 50.1(a), anamendment totheproposed Customs Code willbedrafted..
Question 264.(WT/ACC/KGZ/5/Add.2, Qu.154)
Itisnotclear from section V.4(b) oftheMemorandum whether judicial andadministrative
authorities havetheauthority toprovide temporary remedies during alegal proceeding inorder
toprevent serious injury ortopreserve evidence. Please describe anylegal means thatexist
providing forsuchprovisional relief andwhat circumstances must beshown toinvoke suchrelief.
Answer:
Judicial andadministrative authorities dohavetheauthority toprovide temporary remedies
during alegal proceedings inorder toprevent injury ortopreserve evidence. Inaccordance with
Article 134oftheCivil Procedural Code oftheKyrgyz Republic:
Thecourt orajudge, attherequest ofthepersons participating intheproceeding, orat[the
court orjudge’s]owninitiative, maytakeactions toprovide provisional remedies. Provisional remedy
ispermitted atanystage oftheproceeding, ifthefailure toprovide suchremedy willrender itdifficult
orimpossible toexecute thefinaldecision ofthecourt.
Oneoftheprovisional remedies available under theCivil Procedural Code (atArticle 135)
isthefreezing ofthedefendant ’sassets pending litigation.
(d) Anyspecial border measures
Question 265.(WT/ACC/KGZ/5, Qu.110)
InWT/ACC/KGZ/3 itissaidthatKyrgyz lawdoesnotprovide anyspecial border measures.
When doestheKyrgyz Government intend toamend itslegislation accordingly?WT/ACC/KGZ/7
Page84
Answer:
Kyrgyzpatent, within theCabinet ofMinisters oftheKyrgyz Republic, iscurrently studying
theexperience ofothercountries incontrolling import andexport ofintellectual property, forthepurpose
ofsubmitting proposals totheCabinet ofMinisters oftheKyrgyz Republic onthenecessity oflegal
regulation ofimport andexport andthecontrol bytheState.
Question 266.(WT/ACC/KGZ/5, Qu.115)
Since Kyrgyz lawdoesnotcurrently provide anyspecial border measures related tointellectual
property, when willitcomply withArticles 51.1oftheTRIPS Agreement?
Answer:
Seeabove answer.
Question 267.(WT/ACC/KGZ/5/Add.2, Qu.155)
Please describe theKyrgyz Republic ’splans forproviding border enforcement, atlistwithrespect
tocounterfeit trademarked goods andpirated copyrighted works.
Answer:
SIPAandtheStateCustomsInspectoratearecurrentlyconsideringtheseissues.Bordermeasures
arecurrently being drafted.
(e) Criminal procedures
Question 268.(WT/ACC/KGZ/5, Qu.111)
Thedocument alsostates thattheKyrgyz Republic isconsidering theadoption ofanewcriminal
law. Isthere anyconcrete timeframe forsuchalaw?
Answer:
Currently, adraftofthenewCriminal Code isunder consideration byParliament. Itwill
probably beconsidered inthefirsthalfof1997. Itisimpossible topredict adefinite timeofenactment
oftheresolution, asthisdepends ontheworkload ofParliament.
Question 269.(WT/ACC/KGZ/5, Qu.112)
Does thecurrent criminal lawcontain anyspecific measures against counterfeit trademark or
pirated copyright goods?
Answer:
Thecurrent Criminal Code oftheKyrgyz Republic contains twoarticles which contemplate
criminal liability forillegal actions infringing intellectual property: Article 137,titled “Breach ofthe
Author ’sandInventor ’sRights ”;andArticle 158(5), titled “Illegal Usage oftheTrade Marks. ”
Article 137provides:WT/ACC/KGZ/7
Page85
“Issuance under one’sownname, oranyother misappropriation oftheauthor ’srights
onanother ’sscientific, literary, musical orartistic work; aswellasunauthorized
reproduction ordistribution ofsuch work ofart,isillegal andpunishable by
imprisonment foruptotwoyears, orbyafineofuptosixminimum wage rates.
“Aclaim ofinvention without theconsent oftheinventor, amisappropriation ofthe
author ’srights ontheinvention ,aswellasamisappropriation oftheauthor ’srights
onatechnological improvement, isillegal andpunishable byimprisonment forupto
twoyears, orbyafineofuptosixminimum wage rates.”
Article 158(5) provides:
“Illegal useofanother ’strademark, production mark orcompany name, repeated after
anadministrative punishment imposed forthesame andearlier actions, ispunishable
byafineofuptoseventy minimum wage rates.”
Kyrgyzpatent, oneofthedrafters ofthenewCriminal Code, hasproposed amendments and
supplements inthedraftCriminal Code totheGovernment oftheKyrgyz Republic. Article 151of
theCode oftheKyrgyz Republic onAdministrative violations states: “Illegal useofanother ’strademark,
product mark, orcompany name shallresult inafine... ”
Question 270.(WT/ACC/KGZ/5/Add.2, Qu.156)
Please describe thecriminal penalties provided bythecurrent proposed Criminal Codes for
copyrightandpatentinfringement,unauthorizeduseofatrademarkorcompanyname,commercial
espionage, anddisclosure oftrade secrets.
Answer:
Thecurrent Criminal Code oftheKyrgyz Republic contains articles providing forcriminal
penalties forillegal actions which infringe intellectual property rights, specifically, Article 137
(“Violationsofcopyrightandinventionrights”)andArticle158(5)(“Illegalexploitationoftrademarks”).
Article 137provides asfollows:
Manufacturing under one’sownname, orother misappropriation ofcopyright to
another ’swork ofscience, literature, music orart,orillegal re-production and
distribution ofsuchwork, shallbepunishable bymandatory community service for
uptotwoyears, orafineofuptosixminimum monthly wages.
Disclosure ofaninvention before registration andwithout theinventor ’spermission,
misappropriation ofauthorship, andmisappropriation ofcopyright toanother ’sutility
model shallbepunishable bymandatory community service foruptotwoyears, or
afineofupto6minimum monthly wages.
Article 158(5) provides:
Illegal useofanother ’strade mark, brand orcompany name upon application of
administrative remedies shallbepunishable byafineofupto7minimum monthly
wages.WT/ACC/KGZ/7
Page86
Further, Article 165(2) oftheCriminal Code oftheKyrgyz Republic provides that
misappropriation ofinformation, software, andintegrated circuits byillegal copying orreproduction
shallbepunishable byimprisonment foruptotwoyears, orafineranging from50to150minimum
monthly wages.
ThedraftCriminal Code (atArticle 187)imposes liability fortheillegal useofatrade mark,
where theuseisrepeated orcauses significant damage. Criminal sanctions consist ofpossible
imprisonment foruptosixmonths. Further, theillegal usage ofapreventive marking carries apenalty
ofpossible imprisonment foruptofourmonths.
ThedraftCode (atArticle 158(5)) alsomakes illegal useoftrademarks punishable byafine
ofupto70times theminimum monthly wage. There arealsopenalties fortheproduction ofsubstandard
goods (atArticle 152); consumer fraud (Article 158); thesaleofpoorquality goods (Article 159);
theviolation ofcopyright orinventor ’srights (Article 150); intentional falseadvertising (Article 181);
illegal receipt ofcommercial orbanking secrets (Article 182); commercial graft (Article 184); and
illegal acquisition ofcomputer information (Article 202).
5. Laws, Decrees, Regulations andOther Legal ActsRelating totheAbove
Question 271.(WT/ACC/KGZ/5, Qu.116)
Please specify when thedraft lawsunder consideration bytheParliament willenter intoforce.
Answer:
Seeabove, answer toQuestion 190onPartV,Section 1(a).
VI. TRADE-RELATED SERVICES REGIME
1. General
Question 272.(WT/ACC/KGZ/5, Qu.117)
TheKyrgyz Republic isrequested toprovide theWorking Party assoon aspossible with a
substantialinitialofferonservicesintheGATSframework,bindingliberalmarketaccessconditions
andtreatment guarantees onanm.f.n. basis forforeign service suppliers.
Answer:
TheGovernment ispreparing suchaproposal.
2. Policy Affecting Trade inServices
(a) Government departments, agencies orother bodies
Question 273.(WT/ACC/KGZ/5, Qu.118)
Attheendofpara1itisstated thattheregulatory system, withrelatively fewminor exceptions,
isimposed equally onbothforeign domestic suppliers. Arethese exceptions theonesindicated
inSection 3oftheMemorandum? Ifnot,could youplease indicate alltheexceptions tonational
treatment thatexistinaddition totheoneslisted under Section 3?WT/ACC/KGZ/7
Page87
Answer:
Yes,allexceptions arementioned inSection 3ofPartVIoftheMemorandum.
(d) Provisionsgoverningtheexistenceandoperationofmonopoliesorexclusiveservicesuppliers
Question 274.(WT/ACC/KGZ/5, Qu.119)
Para. 1:Three classes ofmonopolies aredistinguished: “natural ”,“permitted ”and“temporary ”.
Canyouexplain thedifference between a“temporary ”anda“natural ”monopoly?
Answer:
Thisdistinction isfullydescribed inSection 2(e)ofPartIIoftheMemorandum.
3. Market Access andNational Treatment
(e) Restriction on,orrequirements ofspecific types oflegal entity through which aservice
maybesupplied
Question 275.(WT/ACC/KGZ/5, Qu.120)
Para. 1:Canyouplease specify theterm “open joint-stock company ”.
Answer:
An“openjoint-stock company ”isajoint-stock company, theshareholders ofwhich havethe
righttosellorotherwise totransfer itsshares toanyperson without obtaining thepermission ofthe
other shareholders.
(f) Limitations ontheparticipation offoreign capital
Question 276.(WT/ACC/KGZ/5/Add.2, Qu.157)
Dotheforeign capital ownership limitations oftheprovision ofairtransportation services for
passengers orgoods, asprovided byArticle 113oftheAirCode of15April 1994, apply tothe
legal entities offering computerized reservation system services?
Answer:
No.
Question 277.(WT/ACC/KGZ/5/Add.2, Qu.159)
Thebilateral investment treaty (BIT) between theUnited States andtheKyrgyz Republic does
notallow restrictions tonational treatment, suchasthose listed under paragraphs VI.3.(f) and
(g),specifically pertaining toairtransportation, banking andprofessional services, tobeplaced
onUnited States 'investors. TheKyrgyz Republic didnotcarve outanysectors from national
treatment under theBIT. How doestheKyrgyz Republic viewcommitments under theBITin
relation tothestatements made inthese paragraphs ofitsMemorandum?WT/ACC/KGZ/7
Page88
Answer:
TheKyrgyz Republic willhonour thecommitment totheUnited States, asprovided inthe
BIT, tonottoapply therestrictions discussed inparts VI.3(f) and(g)oftheMemorandum to
United States 'service suppliers.
(g) Measures providing forlessthanthetreatment accorded tonational services orservice
suppliers
Question 278.(WT/ACC/KGZ/5, Qu.121)
Para. 1:What isthereason fortherequirement, thataKyrgyz legal entity thatoffers banking
services andisatleast 20percentforeign-owned must have aminimum fund thatistwice as
large astheonerequired forbanks having lessthan20percentforeign-ownership. Dothere
alsoexist requirements regarding aminimum fund forother forms ofestablishment such as
branches andsubsidiaries? What arethecriteria toqualify as“firstclass”foreign bank?
Answer:
TheNational Bank oftheKyrgyz Republic hascalculated theoptimal amount oftheminimum
charter capital forcommercial banks operating ontheterritory oftheKyrgyz Republic. Thelower
minimum fundrequirement forbanks thatarepredominantly locally owned wasmade necessary by
theneedtodevelop adomestic network offinancial institutions andadomestic financial market capable
ofmaximizing theattraction ofthefreemonetary resources ofKyrgyz legalentities andnatural persons.
On13September 1996, aresolution oftheNational Bank established newregulations on
minimum fundrequirements. These regulations provide asfollows:
Forbanks withlessthan20percentforeign participation operating asof13September 1996:
15million Somby31December 1997
20million Somby31December 1998
25million Somby31December 1999
30million Somby31December 2000
Forbanks withlessthan20percentforeign participation commencing operations after13December
1996:
15million Somby31December 1997
25million Somby31December 1998
35million Somby31December 1999
45million Somby31December 2000
Forbanks with20percentormore foreign participation andbranches offoreign banks:
30million Somby31December 1997
40million Somby31December 1998
45million Somby31December 1999
50million Somby31December 2000.
Theminimum fundrequirements forbranches andsubsidiaries offoreign banks arethesame
asforalocalbank20percentormore owned byforeigners. Until 31December 1997, theexistingWT/ACC/KGZ/7
Page89
minimum fundrequirements remain valid: 10million Somforabankwithlessthan20percentforeign
participation and20million Somforabankwith20percentormore foreign participation orabranch
ofaforeign bank.
Thedetermination astowhether aforeign bank isa“firstclass”bankismade onthebasis
oftheMOODY ’Srating established inaccordance withinternational banking practice.
Question 279.(WT/ACC/KGZ/5/Add.2, Qu.158)
Thecapital requirement forKyrgyz Republic legal entities offering banking services istwice as
large forentities withatleast20percentforeign ownership thanitisforentities which haveless
than20percentforeign ownership. What isthereason forthisdifferent capital requirement?
Answer:
TheNational Bank oftheKyrgyz Republic hascalculated theoptimal amount oftheminimum
charter capital forcommercial banks operating ontheterritory oftheKyrgyz Republic. Thelower
minimum fundrequirement forbanks thatarepredominantly locally owned wasmade necessary by
theneedtodevelop adomestic network offinancial institutions andadomestic financial market capable
ofmaximizing theattraction ofthefreemonetary resources ofKyrgyz legalentities andnatural persons.
Question 280.(WT/ACC/KGZ/5/Add.2, Qu.159)
Thebilateral investment treaty (BIT) between theUnited States andtheKyrgyz Republic does
notallow restrictions tonational treatment, suchasthose listed under paragraphs VI.3.(f) and
(g),specifically pertaining toairtransportation, banking andprofessional services, tobeplaced
onUnited States 'investors. TheKyrgyz Republic didnotcarve outanysectors from national
treatment under theBIT. How doestheKyrgyz Republic viewcommitments under theBITin
relation tothestatements made inthese paragraphs ofitsMemorandum?
Answer:
TheKyrgyz Republic willhonour thecommitment totheUnited States, asprovided inthe
BIT, tonottoapply therestrictions discussed inparts VI.3(f) and(g)oftheMemorandum to
United States 'service suppliers.
5. Description oftheMarket andtheMechanism forRegulating theMost Prominent Service
Sectors
(a) Legal services
Question 281.(WT/ACC/KGZ/5, Qu.122)
TheMemorandum notes thatlawyers withthree years experience mayapply foralicence tooffer
non-criminal legalservices-and arerequired totakeanoralexam-is thisalsothecaseforlawyers
seeking onlytooffer advice oninternational laworthelawoftheir owncountry?
Answer:
Yes.WT/ACC/KGZ/7
Page90
Question 282.(WT/ACC/KGZ/5, Qu.123)
Para.1: Canforeign persons engage inallthree categories oflawyers (including “government ”
and“in-house ”lawyers)?
Answer:
Foreign citizens maynotserve asgovernment lawyers. They may, however, engage inall
other non-criminal legalactivities.
Question 283.(WT/ACC/KGZ/5, Qu.124)
Doonly“private practice lawyers ”need alicence tooffer legal services tothepublic?
Answer:
Yes.
(b) Telecommunications services
Question 284.(WT/ACC/KGZ/5, Qu.125)
DoesKyrgyztelecom haveamonopoly forlong-distance andinternational communications oronly
forlong-distance andinternational voice?
Answer:
Kyrgyztelecom hasamonopoly forallinternational andlong-distance communications services.
Question 285.(WT/ACC/KGZ/5, Qu.126)
Isthere adateforeseen fortheendoftheKyrgyztelecom monopoly forinter-city andinternational
lines?
Answer:
According toResolution No.167oftheCabinet ofMinisters of16May1995, thetermination
dateofKyrgyztelecom ’smonopoly forlong-distance andinternational linesisprovided tooccur in2008.
Question 286.(WT/ACC/KGZ/5, Qu.127)
Istheregulator independent from theoperator Kyrgyztelecom?
Answer:
Yes.
Question 287.(WT/ACC/KGZ/5, Qu.128)
Isthere aregime fornon-discriminatory cost-based interconnection?WT/ACC/KGZ/7
Page91
Answer:
Yes.
Question 288.(WT/ACC/KGZ/5, Qu.129)
Isthere aregime fortransparent andnon-discriminatory licensing procedures?
Answer:
Yes.
Question 289.(WT/ACC/KGZ/5, Qu.130)
Arethere competition obligations ontheabuse ofdominant positions, cross-subsidies andmisuse
ofinformation?
Answer:
Thegeneral statutory provisions establishing liabilities fortheabuse ofdominant position in
agoods orservices market areapplicable totelecommunications service providers.
Question 290.(WT/ACC/KGZ/5, Qu.131)
Para. 1:Inthefirstsentence, itisstated thattelephone services arealmost wholly provided by
Kyrgyztelecom.Couldyoupleasedescribetheeconomicstructureofthetelecommunicationsmarket
inamore detailed manner (e.g. listing ofmonopoly andexclusive rights, precise scope ofthe
monopoly ofKyrgyztelecom, number ofexisting suppliers besides Kyrgyztelecom etc.)?
Answer:
Kyrgyztelecom enjoys theexclusive righttorender alllong-distance andinternational telephone
communication services untiltheyear2008.
Inaddition toKyrgyztelecom, anumber ofenterprises rendering services oncellular, paging
andother types ofcommunication operate inthetelecommunication network ofthecountry. There
areabout 10suchcompanies. Inthesphere oftelecommunications, themostsignificant are:(i)the
jointventure Katel, anoperator ofcellular communications; (ii)thejointventure Areopag-Bishkek,
anoperator ofpager andmobile radio communications; (iii)thejointventure Smart-Com, anoperator
ofpager communications; and(iv)thejointventure Geliopag, anoperator ofpager communications.
Inthesphere ofdatatransmission, themost significant isSvyaz-Info.
Dothere existanyplans toliberalize thetelecommunications market? (WT/ACC/KGZ/5, Qu.132)
Answer:
Inorder toliberalize thetelecommunications market, theprivatization ofKyrgyztelecom is
planned tooccur in1997. Thecurrent planfortheprivatization ofKyrgyztelecom stipulates thatthe
Statewillmaintain acontrolling interest (51%). About 40percentoftheshares willbeplaced through
theorganizationofacompetitivetender,andtheremainingshareswillbereservedfortheworkcollective
andforsaleatcoupon auctions.WT/ACC/KGZ/7
Page92
Question 291.(WT/ACC/KGZ/5, Qu.133)
Inthelastsentence itisstated, that“other firms desiring tooffer telecommunication services
utilizing these lines must enter intoanagreement withKyrgyztelecom ”.What isthemeaning
of“enter intoagreement ”?IsKyrgyztelecom freetosettheconditions ofthese “agreements ”?
Answer:
Afirmwishing torender telecommunications services mustobtain alicence fromtheMinistry
ofCommunication; andincasesuchfirmdesires toutilize anyoftheequipment ofKyrgyztelecom,
itshould “conclude anagreement ”onthatutilization withKyrgyztelecom. “Toconclude anagreement ”
means thattheconcerned firmshould negotiate theconditions andtheterms ofutilization ofthe
equipment belonging toKyrgyztelecom.
Question 292.(WT/ACC/KGZ/5, Qu.134)
Dotheexclusive rights ofKyrgyztelecom include allkinds ofinfrastructure? What about, e.g.,
providers ofservices provided overradio frequencies? Dotheyalsohavetoenter anagreement
withKyrgyztelecom?
Answer:
Exclusive rights ofKyrgyztelecom arevalidonlyinrelation totheservices oftelephone long
distance andinternational electronic communications. TheDecree ofthePresident on28February 1996,
No.VP-179, created theCommittee onRadio Frequencies forthepurpose ofassigning theradio
frequencyspectrum..Inordertouseradiofrequencies,thereisnorequirementtoconcludeanagreement
withKyrgyztelecom .
Question 293.(WT/ACC/KGZ/5/Add.2, Qu.160)
Telecommunications services areincluded among the“natural monopolies ”discussed in
paragraph I.2.(e) oftheMemorandum (oncompetition policy). Competition policy officials and
regulators havefound thattechnological advancement facilitates thefostering ofcompetition even
inindustries thatpreviously hadbeen considered natural monopolies, suchastheprovision of
telecommunicationsservices.Competitionwasaccomplishedbyallowingseparationoftheprovision
oftheinfrastructure (e.g., thetelecommunications network), which remains aregulated monopoly,
from theprovision ofservices overthatnetwork (e.g., competition among firstlong-distance and
thenlocal phone service providers). Thishasledtosignificant improvements intheefficiency
ofservices provided aswellaslower costs toconsumers. Hasanythought beengiven toasimilar
policy fortelecommunication services intheKyrgyz Republic?
Answer:
Yes.However, under theterms ofaWorld Bankloan,themonopoly position ofKyrgyztelecom
onlongdistance andinternational telecommunications hasbeenguaranteed untiltheyear2008. Even
ifKyrgyztelecom isprivatized priortothattime,itsmonopoly position willstillremain intact until2008.
Therefore, theliberalization ofthetelecommunication market cannot trulytakeplace prior to2008.
Question 294.(WT/ACC/KGZ/5/Add.2, Qu.161)
DoestheRepublicofKyrgyzintendtoprivatizetheState-ownedtelephonecompaniesKyrgyztelecom
orKyrgyzpost?WT/ACC/KGZ/7
Page93
Answer:
TheKyrgyz Republic isnowdeveloping theconcept ofprivatizing Kyrgyztelecom.
(e) Banking services
Question 295.(WT/ACC/KGZ/5, Qu.135)
Itisstated thattheestablishment ofabranch ofa“firstclass”foreign bank needs alicence similar
tothatrequired fordomestic banks. What isthedefinition of“firstclass banks ”?Canwe
understand thatsuchameasure doesnothavelegal basis? WilltheKyrgyz Republic introduce
provisions concerning theestablishment offoreign banks?
Answer:
Thedetermination astowhether aforeign bankisa“firstclass”bankismade onthebasis
oftheMOODY ’Srating established inaccordance withinternational banking practice.
TheNational Bank oftheKyrgyz Republic haspromulgated regulations concerning the
establishment ofbranches offoreign banks. These regulations areattached asAttachment E.
Question 296.(WT/ACC/KGZ/5, Qu.136)
Para 4:What ismeant by“theState hasaminority ownership interest ”?Does theState hold
10percentoftheshares inallthecommercial banks? Isthisaminimum requirement tobe
fulfilled forevery commercial bank inorder tobelicensed?
Answer:
Thisstatement simply describes thecurrent situation, which istheresult oftheprivatization
ofcertain former State-owned banking entities. TheStatedoesnotholda10percentownership interest
inallcommercial banks. Most commercial banks nowinoperation are100percentprivate-owned.
There isnorequirement thattheState haveanownership interest inabanking entity.
Question 297.(WT/ACC/KGZ/5, Qu.137)
Lastparagraph (p.60): Why dobranches ofaforeign bank need aminimum capital which is
higher thanbranches ofdomestic banks?
Answer:
Seetheanswer toQuestion 278toPartVI,Section 3(g).
(f) Transport services
Question 298.(WT/ACC/KGZ/5/Add.2, Qu.162)
CouldtheKyrgyzRepublicpleaseoutlineitscurrentregimeinairservices,withparticularemphasis
ontheroleofforeign airservice suppliers andthedegree ofmarket access thatexists forthem?WT/ACC/KGZ/7
Page94
Answer:
Thecurrent regime inaairservices isoutlined intheMemorandum onpage62.Inaddition
itshould benoted thatthePresident hasissued adecree ordering theprivatization oftheKyrgyz Republic
AbaZholduru (theKyrgyz Republic Airlines). Amore detailed description ofthecurrent regime in
airservices andadescription ofthecurrent market willbeincluded inthesubstantial initial offeron
services intheGATS framework which willbesubmitted totheWorking Party innearfuture.
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH THIRD
COUNTRIES
1. Bilateral, Plurilateral andMultilateral Agreements Relating toForeign Trade inGoods
andTrade inServices
(b) Plurilateral agreements relating toforeign trade ingoods andtrade inservices (Annex 8b
refers)
Question 299.(WT/ACC/KGZ/5/Add.2 -)
Weseekacommitment from theKyrgyz Republic thatitwilladhere totheWTO Agreement
onTrade inCivil Aircraft from thedateofaccession.
2. Economic Integration, Customs Union andFreeTrade Agreements
(b) Customs Union Agreements (Annex 8erefers)
Question 300.(WT/ACC/KGZ/5, Qu.138)
When doestheKyrgyz Republic expect toratify theCustoms Union Agreement?
Answer:
Theagreement providing forthejoining oftheKyrgyz Republic totheCustoms Union among
Russia, Kazakstan andBelarus wassubmitted totheParliament in1996. Parliament intends toconsider
thisissueduring 1997. Atthesametime, Parliament willconsider theGovernment ’spolicy ofacceding
totheWTO.
Question 301.(WT/ACC/KGZ/5, Qu.139)
Towhat extent doestheKyrgyz Republic consider thatitwillremain a“Customs Territory ”
withintheWTOdefinitiononcetheCustomsUnionAgreementwithRussia,BelarusandKazakstan
isratified?
Answer:
IftheCustoms Union Agreement isratified, itislikely theKyrgyz Republic willbecome part
ofalarger single (united) customs territory where acommon external tariff willoperate.
Question 302.(WT/ACC/KGZ/5, Qu.140)
Please provide theWorking Party withthetextoftheCustoms Union Agreement andallrelated
legislative andadministrative acts.WT/ACC/KGZ/7
Page95
Answer:
TheCustomsUnionAgreement,otherrelatedinternationalagreements,andallrelatedlegislative
andadministrative actsthathavenotalready beensubmitted totheWTO areattached inAttachment F.
Thefollowing actswhich relate totheCustoms Union Agreement havealready beensubmitted
totheWTO:
- Resolution No.56oftheCabinet ofMinisters “OntheProcedure ofExport andImport of
Goods (works andservices)on theterritory oftheKyrgyz Republic, ”of6February 1996. (It
willcome intoforce from thedateofratification oftheCustoms Union Agreement bythe
Parliament );
- Resolution No.119oftheCabinet ofMinisters “OnApproving Rules fortheEquipping of
Transport Facilities (Containers) forTransportation ofGoods with Customs Seals, ”of
20March 1996.
- Resolution oftheCabinet ofMinisters “OnApproving theListofCountries-Users ofthe
Preferences Scheme oftheKyrgyz Republic, ”of6February 1996.
- Instructions No.05-06/12 oftheStateCustoms Inspectorate “OntheProcedure forControlling
Goods Exported from theTerritory oftheCustoms Union, ”of24January 1996.
Question 303.(WT/ACC/KGZ/5, Qu.141)
TheKyrgyz Republic iscommitted tointroducing acommon external tariff withitsCustoms Union
partners. How, inthelightofthiscommitment, doestheKyrgyz Republic intend toproceed with
respect tothataspect oftheaccession negotiations pertaining totariffs?
Answer:
Pending theoutcome oftheratification process, theKyrgyz Republic willremain entirely in
control ofitsown tariff regime, andwillproceed tonegotiate onthatbasis.
Question 304.(WT/ACC/KGZ/5, Qu.142)
PleaseprovidedetailedinformationonthetimetableforeseenintheCustomsUnionforharmonizing
legislation affecting foreign trade. How willfuture amendments ornewlegislation bedealt with
bytheCustoms Union? How doestheKyrgyz Republic intend toproceed intheWorking Party
discussions inthelightofthiscommitment toharmonize legislation?
Answer:
There isnoprecise timetable foreseen. Theexistence ofthecommitment toharmonize
legislation isentirely dependent onthefuture ratification oftheCustoms Union Agreement. The
Kyrgyz Republic intends toconsult withitspotential Customs Union partners withrespect toany
commitments undertaken withtheWTO toensure thatsuchcommitments willultimately bereflected
inthelegislation ofallsuchpartners.WT/ACC/KGZ/7
Page96
Question 305.(WT/ACC/KGZ/5/Add.2, Qu.163)
What isthestatus ofParliamentary ratification ofthecustoms union agreement withRussia,
Belarus andKazakstan?
Answer:
Theagreement providing forthejoining oftheKyrgyz Republic totheCustoms Union among
Russia, Kazakstan andBelarus wassubmitted totheParliament in1996. Parliament intends toconsider
thisissueduring 1997. Atthesametime, Parliament willconsider theGovernment ’spolicy ofacceding
totheWTO.
Question 306.(WT/ACC/KGZ/5/Add.2, Qu.164)
Once ratified, when willthecustoms union agreement enter inforce?
Answer:
Themoment ofentry intoforce willbedefined inParliamentary resolution tobepassed if
andwhen thecustoms union agreement isratified.
Question 307.(WT/ACC/KGZ/5/Add.2, Qu.165)
Please identify anynon-tariff trade barriers thatwillbecreated orincreased, withrespect to
imports intotheKyrgyz Republic, from countries which arenotparties tothecustoms union
agreement.
Answer:
There areadditional import licensing requirements proposed forindustrial wastes,
pharmaceuticals, medical andveterinary equipment, chemical plant protection substances, military
uniforms anddeciphering equipment. However, these requirements willbeimposed onimports from
allcountries, including Customs Union countries.
Question 308.(WT/ACC/KGZ/5/Add.2, Qu.166)
Cabinet ofMinisters Resolution No.56of6February 1996 fortheimplementation ofthis
agreement. Please outline itsprovisions, inparticular withrespect tochanges itproposes tothe
current trade regime oftheKyrgyz Republic.
Answer:
ThisResolution would introduce certain changes tothecurrent foreign traderegime. Ifitcomes
intoforce, itwould:
- reduce thetimewithin which anexport orimport licence application mustbeacted upon by
theMinistry ofIndustry andForeign Trade to10days;
- require theestablishment ofanexport contract registration system;
- establish newlistsofitems subject toimport and/or export licensing; and
- introduce alistofgoods, theexport ofwhich isgoverned byinternational agreements.WT/ACC/KGZ/7
Page97
Question 309.(WT/ACC/KGZ/5/Add.2, Qu.167)
Please describe theprovisions relating totheneedfortheregistration ofcontracts involving exports,
listing theproducts covered, describing theregistration process, noting thespecific criteria that
must bemettohave exports registered andthebasis forrejecting theregistration application,
identifying theMinistries involved intheadministration ofthesystem, howtheregistration
requirement isenforced, andthepenalties imposed fornon-conformance.
Answer:
Theexport contract registration requirement ofResolution No.56applies onlytocontracts
fortheexport ofcertain products. These arelisted immediately below. There isnospecific criteria
thatmustbemetinorder toregister anexport contract forthesegoods. Thisexport contract registration
systemistoservethepurposeofprovidingtheGovernmentwithinformationaboutsuchexportcontracts,
e.g.,toidentify theseller, thebuyer, thequantity, thepurchase price, etc.Thisinformation isnecessary
sothattheGovernment cancontrol themisappropriation (i.e.theft) andexport ofstrategically significant
goods. Exporters simply mustsupply acopyoftheexport contract totheMinistry ofForeign Trade
andIndustry. Although thisrequirement must befulfilled inorder toexport, theministry hasno
authority toreject theregistration; however, questionable contracts mayresult intheinitiation ofan
investigation toassure theirlegitimacy. Specific regulations governing thisprocess havenotyetbeen
developed. Thefollowing items aresubject toexport contract registration:
Listofstrategically significant goods, contracts forwhich areregistered
Commodity Name CLFEA Code No.
Fishalive, fresh, cold, frozen, reprocessed products of
cod,sturgeon, salmon species, cancroid, caviar030199110, 030212000,
030270000,(only caviar)
030321000, 030322000,
030329000, 030380000, (only
caviar), 030410110,
030410130,030520000, (only
caviar) 030530300, 160411000,
160419100, 160420100,
160420300, 160430, 1605
030310000
Grain 1001-1005, 100610
1000810
Seeds ofsoy-bean andsun-flower 1201, 1206
Ethyl non-denatured alcohol 220710000
Rawmaterial fornon-ferrous andferrous metals 2603, 2604, 2606-2610
Natural gas 271111000, 271121000,
271112110, 271113900
Electric power 271600000
Mineral andchemical nitrous fertilizers, (except
ammonium, sulphate andnitrate)3102 (except 310221000,
310230900, 310240900)
Mineral orchemical potash fertilizers 3104
Mineral orchemical fertilizers withtwoandthree nutrient
elements, nitrogen, phosphorus, potassium, other
fertilizers3105WT/ACC/KGZ/7
Page98
Commodity Name CLFEA Code No.
Casein 3501 (except 350190100)
Leather rawmaterial 4101-4107
Business timber (coniferous species) 440310100, 440310910, 440320
Coniferous saw-timber 440710100-440710500,
440710910, 440710930
Oaksaw-timber andlumber 440391, 440791
Wool 5101, 5105
Cotton 5201, 5203
Linen fibber 5301
Tobacco 2401
Silk 5001-5003
Non-ferrous metals 7401-7403, 7405, 7501, 7502,
7504, 7601, 7603, 7801, 7901,
7903, 8001, 8104
Cobalt andother semi-products ofCobalt metallurgy;
cobalt andarticles, including waste andfragments8105
Ferro alloy 7202 (except 720299)
Alumna 281820000
Ferrous andnon-ferrous waste andfragments 281820000, 7204, 7404, 7802,
7902, 7503, 7602, 8002, 8109109,
8113001, 720210900, 860719910
Sparse, Sparse ground metals, rawmaterial for
production, alloy, compound andarticles2611-2615, 2804, 2805, 282330,
282619000, 284170, 2844-2846,
7110, 8103, 8106, 8108, 8109,
8110, 8112, 8113, 280540100
Question 310.(WT/ACC/KGZ/5/Add.2, Qu.168)
Export registration thatisnon-automatic ordiscretionary mayconstitute aviolation ofArticle XI
oftheGATT 1994 unless thesubstantive criteria applied areconsistent withWTO provisions.
WeseekassistancefromtheKyrgyzRepublicinbetterunderstandingthenatureofthisrequirement
anditssubstantive justification under WTO provisions.
Answer:
Registration isautomatic. Seeanswer above.
Question 311.(WT/ACC/KGZ/5/Add.2, Qu.169)
Willthetrade-weighted average tariff ratefortheKyrgyz Republic increase asaresult ofthe
implementation ofthecommon external tariff?WT/ACC/KGZ/7
Page99
Answer:
Thecommon external tariff willpossibly cause changes inimport patterns thatwillaffect the
average-weighted tariff. TheGovernment isstudying these changes inorder topredict the
average-weighted tariff.
Question 312.(WT/ACC/KGZ/5/Add.2, Qu.170)
Please identify anygoods, including HStariff number, thattheRepublic ofKyrgyz intends to
exclude from thecommon external tariff.
Answer:
Alistofexclusions hasnotbeendeveloped. Annex 10provides asummary ofthenewtariff
schedule.
(c) FreeTrade Area Agreements (Annex 8frefers)
Question 313.(WT/ACC/KGZ/5, Qu.143)
Please provide theWorking Party withthetexts ofallFTA’stowhich theKyrgyz Republic is
aParty.
Answer:
TheAgreements areattached asAttachment G.
Question 314.(WT/ACC/KGZ/5, Qu.144)
ForeachFTA, please provide details ofthe%trade overall andineachmajor sector which is
excluded from thefreetrade regime.
Answer:
TheMinistry ofIndustry andTrade willattempt toprovide thisinformation.
Question 315.(WT/ACC/KGZ/5/Add.2, Qu.171)
IstheCISFreeTrade Area Agreement currently ineffect intheKyrgyz Republic?
Answer:
Yes.
Question 316.(WT/ACC/KGZ/5/Add.2, Qu.172)
Does theKyrgyz Republic presently provide duty freeentry forimports ofproducts from the
Azerbaijan Republic, Turkmenistan, Republic ofBelarus, Republic ofGeorgia orRepublic of
Tajikistan?WT/ACC/KGZ/7
Page100
Answer:
Yes,except products from Georgia.
Question 317.(WT/ACC/KGZ/5/Add.2, Qu.173)
What isthestatus ofthenegotiation oftheCISFreeTrade Area Agreement protocol, which will
specify thegoods excluded from thefreetrade regime?
Answer:
Theprotocol hasnotbeendrafted anditisnotcurrently being negotiated.
Question 318.(WT/ACC/KGZ/5/Add.2, Qu.174)
Please identify, including HStariff number, those products thattheKyrgyz Republic willexclude
from theCISfreetrade regime.
Answer:
Such alisthasnotbeendeveloped yet.
Question 319.(WT/ACC/KGZ/5/Add.2, Qu.175)
Please identify theproducts, including tariff numbers, thattheKyrgyz Republic excludes from
coverage under itsbilateral freetrade agreements with Armenia, Kazakstan, Moldova, the
Russian Federation andUkraine.
Answer:
Armenia. Noproducts havebeenwithdrawn from thefreetrade regime.
Kazakstan. According totheProtocol totheAgreement withKazakstan, Kazakstan haswithdrawn
several categories ofgoods: (i)goods, theexport ofwhich issubject tocontract
registration inKazakstan; (ii)goods requiring anexport orimport licence under the
lawofKazakstan; and(iii)goods identified asstrategically important under thelaw
ofKazakstan. TheKyrgyz Republic haswithdrawn onlyexports thataresubject to
anexport tariff, export licence orexport quota under thelawoftheKyrgyz Republic.
Currently, there arenoexport quotas ortariffs intheKyrgyz Republic. Therefore,
onlygoods requiring anexport licence havebeenwithdrawn. These goods arelisted
inCabinet ofMinisters Resolution No.408. Asummary ofthislistisattached as
Attachment D.
Goods fallen under theeffect oftheKyrgyz legislation onexport tariff, andlegislation
onlicensing andquoting ofexportation ofgoods (works, services) which isinforce
atthemoment ofgoods customs clearance when thegoods areexported fromtheKyrgyz
Republic totheRepublic ofKazakstan.
Moldova. Noproducts havebeenwithdrawn from thefreetrade regime.
Ukraine. Noproducts havebeenwithdrawn from thefreetrade regime.WT/ACC/KGZ/7
Page101
Russia. According totheProtocol totheAgreement withRussia, Russia haswithdrawn goods
subject toanexport tariff, export quota orexport licensing requirement under thelaw
oftheRussian Federation. TheKyrgyz Republic haswithdrawn onlyexports thatare
subject toanexport tariff orexport licensing requirement. Currently, there areno
exporttariffsintheKyrgyzRepublic.Therefore,onlygoodsrequiringanexportlicence
have beenwithdrawn. These goods arelisted inCabinet ofMinisters Resolution
No.408. Asummary ofthislistisattached asAttachment D.
Question 320.(WT/ACC/KGZ/5/Add.2, Qu.176)
Please identify theproducts, ifany,including tariff numbers, thattheKyrgyz Republic excludes
from freetrade coverage, which areimported from countries which areparties totheCISFree
Trade Area Agreement, butwithwhom theKyrgyz Republic doesnothaveabilateral freetrade
agreement.
Answer:
TheCISFreeTrade Agreement isineffect; however, theKyrgyz Republic hasnotwithdrawn
anygoods from itscoverage.
ANNEX 5 INFORMATION ONTECHNICAL BARRIERS TOTRADE
2. Information Regarding:
(b) Thenames andaddresses oftheenquiry points foreseen inArticles 10.1and10.3ofthe
WTO Agreement ontechnical barriers totrade (theAgreement) withanindication as
towhether theyarefully operational
Question 321.(WT/ACC/KGZ/5, Qu.145)
Onpage 144,theinquiry points related totheTBT Agreement areindicated. HastheKyrgyz
Republic established inquiry points according toArticle 7andannex BoftheSPSAgreement?
Answer:
Theestablishment oftheinquiry point required byArticle 10.1oftheTBTAgreement isin
process. TheState Fund ofStandards, classifiers oftechnical-economic information, international
(regional)standards,rulesandrecommendationsonstandardization,andthenationalstandardsofforeign
countries, which willperform thefunction oftherequired inquiry point isnowbeing established.
Thelegal document ontheestablishment ofthisState Fund ofStandards hasbeendeveloped and
presented totheCabinet ofMinisters foradoption inadraftresolution entitled “OntheOrganization
oftheWork onStandardization, Maintaining Unity ofMeasurement, andtheCertification ofGoods
andServices. ”
Theimplementation oftheSPSAgreement iswithin thecompetence oftheMinistry ofHealth
andMinistry ofAgriculture. Plans forthecreation oftherequired inquiry points arestillunder
development.