RESTRICTED
WORLD TRADE WT/ACC/KAZ/3
23September 1996
ORGANIZATION(96-3745)
Original: English
ACCESSION OFTHE REPUBLIC OFKAZAKSTAN
Memorandum ontheForeign Trade Régime
Inacommunicationdated29January1996(WT/ACC/KAZ/1),theGovernmentoftheRepublic
ofKazakstan applied foraccession under Article XIIoftheAgreement Establishing theWorld Trade
Organization (WTO).
Atitsmeeting on16April 1996, theGeneral Council established aWorking Party withthe
following terms ofreference: "Toexamine theapplication oftheGovernment ofKazakstan toaccede
totheWTO Agreement under Article XII,andtosubmit totheGeneral Council recommendations
which mayinclude adraftProtocol ofAccession." Themembership isopentoallWTO Members
indicating theirwishtoserve ontheWorking Party.
Inaccordance withtheestablished procedures (WT/ACC/1), theSecretariat iscirculating the
attached Memorandum ontheForeign Trade Régime received from theGovernment ofKazakstan.
WTO Members wishing tosubmit questions ontheMemorandum areinvited todosoby
11November 1996 fortransmission totheauthorities oftheRepublic ofKazakstan.WT/ACC/KAZ/3
Pageii
TABLE OFCONTENTS
PageNo.
I. INTRODUCTION 1
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
1. Economy
(a) General description
Territory 2
Population 3
Economic specialization 4
Main economic indicators 6
(b) Current economic situation 6
2. Economic Policies
(a) Main directions andgoals 7
Pricing policy 8
Trade policy 8
Private sector development/privatization 8
Sectoral priorities 10
(b) Monetary andfiscal policy 12
Monetary policy (inflation control, banksupervision,
interest rate,monetary policy short-term) 12
Fiscal policy 14
(c) Foreign exchange, payments system andrelations withtheInternational
Monetary Fund (IMF)
Payments system 15
Foreign exchange 16
Relations withtheInternational Monetary Fund andWorld Bank 17
(d) Foreign anddomestic investment policies 18
(e) Competition policies 18
3. Trade InGoods andServices 19
4. Information OnFinancial Movements Related toNationals Working Abroad 19
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES
AFFECTING FOREIGN TRADE INGOODS AND TRADE INSERVICES
1. Powers oftheExecutive, Legislative andJudicial Branches ofGovernment 20
(a) Powers oftheExecutive 20
(b) Powers oftheLegislature 20
(c) Powers oftheJudiciary 21
2. Government Entities Responsible forMaking andImplementing Policies
Affecting Foreign Trade 21
3. Division ofAuthority Between Central andSub-Central Governments 22
4. AnyLegislative Programmes orPlans toChange theRegulatory Régime 22
(a) Agenda forDrafting NewLaws: 22
(b) Agenda forRe-drafting Existing Laws 23
(c) Agenda forAmending Existing Laws 23WT/ACC/KAZ/3
Pageiii
5. Laws andLegal Acts 24
6. Description ofJudicial, Arbitral orAdministrative Tribunals or
Procedures, IfAny
(a) Judicial procedures 24
(b) Arbitral procedures 24
(c) Administrative procedures 24
IV. POLICIES AFFECTING TRADE INGOODS
1. Import Regulation
(a) Registration requirements forengaging inimporting 25
(b) Characteristics ofthenational tariff andnomenclature 25
(c) Tariff quotas andtariff exemptions 25
(d) Other duties andcharges, specifying anycharges forservices rendered 26
Customs processing feesandother customs services 26
Value Added Tax(VAT) 27
Excise taxes 27
Other duties andfees 28
(e) Quantitative import restrictions, including prohibitions,
quotas andlicensing systems 29
(f) Import licensing procedures 29
(g) Other border measures, e.g.anyother schemes thathaveborder
effects similar tothose ofthemeasures listed under (e)above 30
(h) Customs valuation 30
(i) Other customs formalities 30
(j) Pre-shipment inspection 30
(k) Application ofinternal taxes onimports 30
(l) Rules oforigin 31
(m) Anti-dumping régime 31
(n) Countervailing dutyrégime 31
(o) Safeguard régime 31
2. Export Regulation
(a) Registration requirements forengaging inexporting 31
(b) Customs tariff nomenclature, types ofduties, dutyrates,
weighted averages ofdutyrates 32
(c) Quantitative export restrictions, including prohibitions,
quotas andlicensing systems 32
(d) Export licensing procedures 32
(e) Other measures, e.g.minimum export prices, voluntary export
restrictions, orderly marketing arrangements 33
(f) Export financing, subsidy andpromotion policies 33
(g) Export performance requirements 33
(h) Import dutydrawback schemes 33
3. Internal Policy Affecting Foreign Trade inGoods
(a) industrial policy, including subsidy policies 34
Agricultural subsidies 34
Non-agricultural subsidies 34
(b) Technical regulations andstandards, including measures taken atthe
border withrespect toimports 35WT/ACC/KAZ/3
Pageiv
(c) Sanitary andphytosanitary measures, including measures taken with
respect toimports 36
(d) Trade-related investment measures 37
(e) State-trading practices 37
(f) Freezones 37
(g) Freeeconomic zones 38
(h) Trade-related environmental policies 38
(i) Mixing regulations 39
(j) Government-mandated counter-trade andbarter 39
(k) Trade agreements leading tocountry-specific quotas allocation 39
(l) Government procurement practices
General legalrégime governing procurement practices 39
Procedures fortendering anddealing withtenders 40
Procedures forawarding contracts 40
(m) Regulation oftrade intransit 40
4. Policies Affecting Foreign Trade inAgricultural Products
(a) Imports 41
(b) Exports 41
(c) Export prohibitions andrestrictions 41
(d) Export credits 41
(e) Internal policies 41
5. Policies Affecting Foreign Trade inother Sectors
(a) Textiles régime 42
(b) Other sectors 42
V. TRADE-RELATED INTELLECTUAL PROPERTY RÉGIME
1. General
(a) Intellectual property policy 42
(b) Responsible agencies forpolicy formulation andimplementation
(i) State Patent Office 42
(ii) State Agency forCopyright andRelated Rights 42
(c) Membership ininternational intellectual property conventions
andregional orbilateral agreements 43
(i) International intellectual property conventions 43
(ii) Anticipated membership ininternational intellectual property conventions 43
(iii) Membership inregional intellectual property conventions 43
(iv) Bilateral agreements onintellectual property protection 43
(d) Application ofnational andM.F.N. treatment toforeign nationals 43
(e) Feesandtaxes 44
2. Substantive standards ofprotection, including procedures for
theacquisition andmaintenance ofintellectual property rights
(a) Copyright andrelated rights, including rights ofperformers,
producers ofphonograms andbroadcasting organizations 44
(b) Trademarks, including service marks 45
(c) Geographical indications, including appellations oforigin 45
(d) Industrial designs 45
(e) Patents 45
(f) Plant variety protection 46
(g) Layout designs ofintegrated circuits 46WT/ACC/KAZ/3
Pagev
(h) Requirements onundisclosed information,
including trade secrets andtestdata 46
(i) Other categories ofintellectual property 46
3. Measures toControl Abuse ofIntellectual Property Rights 47
4. Enforcement
(a) Civil judicial procedures andremedies 47
(b) Provisional measures 47
(c) Administrative procedures andremedies 47
(d) Special border measures 47
(e) Criminal procedures 47
5. Laws, Decrees, Regulations andOther Legal ActsRelating totheAbove
(a) Laws governing intellectual property
(i) Parliamentary Acts 48
(ii) Decrees ofthePresident 48
(iii) Resolutions oftheCabinet ofMinisters 48
6. Statistical DataonApplications forGrants ofIntellectual Property Rights,
aswellasanyStatistical DataonTheir Enforcement 48
VI. TRADE-RELATED SERVICES RÉGIME
1. General 49
2. Policies Affecting Trade inServices
(a) Government departments, agencies, professional associations orother
bodies withauthority orarolerelevant totheconduct ofservice activities 49
(b) Judicial, arbitral oradministrative tribunals orprocedures providing for
thereview of,orremedies inrelation to,administrative decisions
affecting trade inservices 50
(c) Provisions, including those ininternational agreements, concerning
qualification requirements andprocedure, technical standards and
licensing and/or registration requirements forthesupply ofservices 51
(d) Provisions governing theexistence andoperation ofmonopolies
orexclusive service suppliers 51
(e) Provisions relating tosafeguard measures astheyapply totrade inservices 51
(f)(g) Provisions relating tointernational transfers andpayments forcurrent
andcapital transactions ofservices 51
(h) Provisions governing theprocurement bygovernmental agencies ofservices 51
(i) Provisions concerning anyform ofaid,grant, domestic subsidy,
taxincentive orpromotion scheme affecting trade inservices 51
3. Market Access andNational Treatment
(a) Limitations onthenumber ofservice suppliers 52
(b) Limitations onthetotalvalue ofservice transactions orassets 52
(c) Limitations onthetotalnumber ofservice operations or
onthetotalquantity ofservice output 52
(d) Limitations onthetotalnumber ofnatural persons thatmaybeemployed
inaparticular service sector 52
(e) Restrictions on,orrequirements ofspecific types oflegalentity
through which aservice maybesupplied 52WT/ACC/KAZ/3
Pagevi
(f) Limitations ontheparticipation offoreign capital 53
(g) Measures providing forlessthanthetreatment accorded to
national services orservice suppliers 53
4. Most-Favoured-Nation Treatment 53
VII. INSTITUTIONAL BASIS FOR TRADE AND ECONOMIC RELATIONS
WITH THIRD COUNTRIES
1. Bilateral orPlurilateral Agreements Relating toForeign Trade
inGoods andTrade inServices 53
2. Economic Integration: Customs Union andFreeTrade Area Agreements 54
3. Labour Markets Integration Agreements 54
4. Multilateral Economic Cooperation, Membership inthe
Multilateral Economic Organizations, Trade-Related Programmes
ofOther Multilateral Organizations. 55
ANNEX 1
Statistics andPublications 56
ANNEX 2
ListofLaws andLegal Acts 77
ANNEX 3
Information onImport Licensing Procedures 86
ANNEX 4
Information onImplementation andAdministration ofthe
Customs Valuation Agreement 93
ANNEX 5
Information onTechnical Barriers toTrade 102
ANNEX 6
Information onState Trading 109
ANNEX 7
Services 110
ANNEX 8
International Agreements 140
ANNEX 9
Annex onExport 154
ANNEX 10
Intellectual Property 160
ANNEX 11
Agricultural Subsidies 167WT/ACC/KAZ/3
Page1
I. INTRODUCTION
TheRepublic ofKazakstan (Kazakstan) declared itsindependence on16December 1991.
Kazakstan hassince undertaken aprogramme ofcomprehensive reforms aimed atfulltransition to
amarket economy andintegration within world markets. Significant progress hasbeenachieved in
areas suchastradeandpriceliberalization, privatization, competition andfiscal andmonetary reform.
Thefoundations ofKazakstan ’sreform programme consist ofalegalandregulatory régime
based upon internationally accepted standards andconducive totrade andinvestment. Inparticular,
Kazakstan hasliberalized itstrade régime governing goods byrestricting import andexport licensing
requirements toalimited setofgoods only; andeliminating export tariffs, State-trading andnon-tariff
barriers totradesuchasexport quotas. Asforservices, Kazakstan hasestablished alegalandregulatory
framework which abolishes barriers toentry andensures faircompetition. Also, standards, testing
andcertification methods employed byKazakstan fallwithin internationally accepted norms and,as
such, donotcreate barriers totrade. Finally, common trade-distorting features suchasrestrictive
trade-related investment measures arenon-existent.
Inreformingitslegalrégime,Kazakstanhasbeenattentivetointernationallyacceptedstandards.
Keytradeandinvestment legislation adhere tothemostimportant WTO principles byproviding national
andnon-discriminatory treatment toproducts andservices regardless oforigin. TheCustoms Code
isbased largely uponWTO, WCO andother internationally accepted standards and,therefore, ensures
transparency anduniformity ofprocedures andtimely processing ofgoods. Inaddition, thetariff
nomenclature, rules oforigin andcustoms valuation arebased largely upon theHarmonized System
(developed bytheWCO), WCO andWTO standards respectively. TheGovernment ofKazakstan is
alsocurrently taking important steps tobring itslegislation onintellectual property protection into
conformity withWTO.
TheGovernment ofKazakstan understands thebenefits which freetrade andinvestment will
bring toitsconsumers, producers andtoitsoverall effort toenhance economic development andgrowth.
TheGovernment iscommitted tobring Kazakstan ’sforeign trade régime intofullcompliance with
WTOandtocontinueadheringtoWTOandotherinternationallyacceptedtradeandinvestmentprinciples
inenacting future legislation. Thiscommitment isdemonstrated byGovernment Resolution No.211
adopted 19February 1996 which urges allministries toreview existing legislation toensure full
compliance withWTO.
Kazakstan isready tobecome amember ofWTO andtofullyintegrate itself intoandplay
according totherules of,themultilateral trading system. Thiswillingness wasexpressed when the
Prime Minister ofKazakstan, Akezhan Kazhegeldin, submitted toWTO on23January 1996Kazakstan ’s
formal request foraccession.
Themain purpose ofthismemorandum istofurnish WTO anditsmembers withbackground
onKazakstan’seconomyandforeigntraderégime.TheGovernmentofKazakstaniswillingandprepared
toprovide additional information, ifandwhen requested bytheWTO Secretariat ormembers ofthe
Working Party. Information contained inthismemorandum isprepared bytheGovernment
Inter-Institutional Commission onAccession totheWTO andreflects theStateofKazakstan ’sforeign
trade régime asof1July1996.WT/ACC/KAZ/3
Page2
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
1. Economy
(a) General description
Territory
Located inCentral Asia, Kazakstan isthesecond largest oftheformer Soviet States witha
totalareaofapproximately 2.7million square kilometres (sq.km.). Roughly equal totheterritory
ofWestern Europe, Kazakstan represents 12percentoftheformer Soviet Union territory andborders
China totheeast,Russia tothenorth, theCaspian SeatothewestandKyrgyzstan, Uzbekistan and
Turkmenistan totheSouth. Itistheninthlargest country intheworld. Kazakstan ’sexternal boundaries
total12,187 kmwith11,587 kmoflandboundaries (shared asdescribed intable1)and600kmof
water boundary withtheCaspian Sea.
Table 2.1-Land Boundaries
Country Land Boundary
China 1,460 km
Kyrgyzstan 980km
Russian Federation 6,467 km
Turkmenistan 380km
Uzbekistan 2,300 km
The country isadministratively divided into 19oblasts (regions) and one city
administration (Almaty City). Table 2.2provides theareaand1995 population ofeachoblast.
Table 2.2-Area (thousands sq.km.)and1995 Population (thousands) ofOblasts
Oblast Area Population
Akmola 92.0 812.1
Aktyubinsk 300.6 751.0
Almaty City 0.26 1,172.4
Almaty Oblast 105.7 964.8
Atyrau 118.6 461.7
East-Kazakstan 97.5 926.3
Zhambyl 144.3 1,035.6
Zhezkazgan 312.6 480.9
West-Kazakstan 151.4 669.5
Karaganda 115.4 1,243.0
Kzyl-Orda 226.0 677.0
Kokshetau 78.2 647.8
Kustanai 113.9 1,029.1
Mangistau 165.6 335.1
Pavlodar 124.8 926.7
North-Kazakstan 45.0 584.6WT/ACC/KAZ/3
Page3
Oblast Area Population
Semipalatinsk 185.8 796.4
Taldykorgan 118.5 712.1
Turgai 111.8 304.0
South-Kazakstan 117.0 2,015.1
Population
Asof1January 1996, thepopulation ofKazakstan isapproximately 16.6million. Itis
oneoftheleastdensely populated countries (approximately 6inhabitants persq.km.). Thethreelargest
citiesareAlmaty City(1,172,400), Karaganda City(567,200) andShymkent (394,500). Thepercentage
ofpopulation living inurban areas isapproximately 56percent. percent. Theethnic composition
ofKazakstan ’spopulation issetforthinTable 2.3(“Others ”consist ofmore than100distinct ethnic
groups).
Table 2.3-Ethnic Composition ofPopulation
Ethnic Group Share
Kazak 45.98%
Russian 34.74%
Ukrainian 4.94%
German 3.05%
Uzbek 2.28%
Tatar 1.93%
Belarusian 1.04%
Others 6.04%
Thetwomain religions areMuslims (46percent) andRussian Orthodox (45percent)
withotherminorities including Protestant andCatholic. Additional population-related dataisdescribed
inTable 2.4.
Table 2.4-Population Data
Population Factor Value
Growth Rate 0.87%
Birth Rate 1.82%
Death Rate 0.95%
Infant Mortality Rate 2.74%
Literacy Rate 97.00%
LifeExpectancy 65.80
The State language istheKazak language. InState institutions and local
self-administrative bodies, however, theRussian language isofficially usedonequal grounds withthe
Kazak language.WT/ACC/KAZ/3
Page4
Economic specialization
Theeconomic potential ofKazakstan ischaracterized byits(i)richdeposits ofmineral and
energy resources, (ii)production andprocessing capabilities and(iii)large agricultural area
(approximately 20percentofarable landoftheCIS). Themarket forservices, moreover, hasbeen
growing during thepastthreeyears inmostsectors especially communications, financial andtransport.
Formore details regarding theservice sector, please consult section VIandAnnex 7.
Kazakstan hasmajor deposits ofbauxite, bismuth, cadmium, chrome ore,coal,cobalt, copper,
gold, iron,lead,manganese, molybdenum, natural gas,nickel, petroleum, phosphate, silver, sulphur,
titanium, uranium andzinc.Among CIScountries, Kazakstan (i)isfirstinexplored deposits ofbismuth,
chrome, leadandzinc; (ii)issecond inexplored deposits ofcadmium, copper, molybdenum, oil
andphosphates; (iii)produces 97percentofchrome, 70percentoflead, 40percentofuranium
and90percentofyellow phosphor; and(iv)possesses 90percentofchrome andothermetals reserves
andapproximately 50percentoflead, tungsten, copper andzincreserves.
Thetotallabour force inKazakstan is9,211,000 asof1January 1996. Thebreakdown of
GDP bysector isshown inTable 2.5andofworkforce bysector isshown inTable 2.6.
Table 2.5-Breakdown bySector ofGDP (percentage)
Sector 1993 1994 1995
Industry: 31.00 25.92 21.82
Energy Sector 4.87 5.68 4.87
Chemical &Petrochemical Industry 1.24 0.96 0.79
NonFerrous Metallurgy 4.15 3.11 2.64
Ferrous Metallurgy 3.26 3.08 3.01
Electric Power 4.46 4.90 3.58
Machine Building &Metal Processing 3.07 1.89 1.27
Food Industry 3.53 2.57 2.36
Light Industry 1.80 0.98 0.57
Construction Materials 1.61 1.06 0.63
Wood Processing, Pulp, &paper 0.74 0.26 0.15
Other industries 2.26 1.43 1.96
Agriculture 13.00 14.00 11.39
Construction Services 9.00 9.05 7.00
Transport &Communications 6.00 7.89 9.46
Trade 4.00 15.67 18.40
Other andTaxes 37.00 27.47 31.93WT/ACC/KAZ/3
Page5
Table 2.6-Breakdown bySector ofEmployment (percentage)
Sector 1993 1994 1995
Total employed workforce (thousands) 6,926.3 6,581.8 6,300.0
Industry 17.25 17.53 16.67
Agriculture 16.00 17.62 10.05
Services 44.74 41.30 40.58
Construction 7.10 6.26 5.56
Communications 1.14 1.29 1.28
Financial 0.75 0.77 0.78
Trade 4.24 4.38 3.83
Transportation 7.17 6.72 6.33
Other Services 24.34 21.88 22.83
Other 22.01 23.55 32.67
Heavy industry andlarge-scale agriculture (e.g. grain) areconcentrated inthenorthern
regions ofKazakstan. Thesouthern regions aremainly agriculture (e.g.cotton) withlightandchemical
industry bases andmining. Theoilandgasindustry isconcentrated intheWestern partofthecountry.
Thecoalindustry isconcentrated intheNorthern andCentral parts ofthecountry, especially the
Karaganda andPavlodar oblasts. Mining andprocessing ofcopper anditsassociated industry, are
concentrated inZhezkazgan.
Major goods andservices provided under thevarious industrial, services andagricultural
categories aredescribed inTable 2.7below.
Table 2.7-Major Goods andServices
Sector Major Goods
FuelandEnergy Sector oil,gas,coal, electricity andheat
Chemical &Petrochemical
Industrychemical industry, calcium carbide, sulphuric acid
monohydrate, mineral fertilizers, synthetic resins and
plastics, yellow phosphor andchrome oxide
NonFerrous Metallurgy bauxite, refined copper, lead, titanium andzinc
Ferrous Metallurgy ironore,manganese, chromate, castiron, steel, rolled
products offerrous metals, sheet iron, tinandcoke
Machine Building &Metal
Processingelectromechanical machinery, machine tools, instruments,
tractors, agricultural machinery, bulldozers, trolleybuses
Food Industry processed meat, milkproducts andconfectioneries
Light Industry fabric, knitted products andfootwear
Consumer Goods Industry television sets,radio-receivers, refrigerators, furniture,
tape-recorders andwashing machines
Construction Materials cement, bricks, reinforced concrete, asbestos, construction
panels androofing.
Wood Processing, Pulp, &Paper timber, paper, lumber andcardboardWT/ACC/KAZ/3
Page6
Sector Major Goods
Agriculture barley, corn, cotton, eggs, fruit, meat, milk, millet, oat,
oilseeds, potatoes, rice,rye,sugar beet, tobacco,
vegetables, wheat andwool. Cattle (6.9million), sheep
andgoats (19.4 million) andpigs(1.6million).
Construction Services construction ofroads, houses, buildings, pipelines and
irrigation systems.
Transport &Communications maritime, internal waterways, air,rail,space androad
transport ofpassengers andfreight; postal, courier and
telecommunications.
Trade import/export ofalltypes ofproducts. Warehousing,
wholesale andretail services.
Energy constitutes thepriority sector ofKazakstan ’seconomy. Kazakstan ’soilreserves are
approximately 27billion barrels. TheTengiz oilfieldisoneoftherichest oilreserves intheworld.
Exports fromtheTengiz oilfieldcould toponemillion-barrels perdayonce fullydeveloped. In1995,
thevolume ofoilexport wasapproximately 11.2million tons. Lowproduction levels areduetolack
ofadequate pipeline infrastructure fortheexport ofoil.Kazakstan currently depends ontheRussian
oilpipeline; withaccess limited byquotas duetolimited pipeline capacity. Theproduction andexport
ofoilareexpected toincrease significantly onceanoilexport pipeline isbuilt.
TheKarachaganak gasdeposit isoneofthelargest gasdeposits intheworld. Thefieldcontains
approximately 453billion cubic meters ofgasand5billion barrels ofoil.There arethreeoilrefineries
inKazakstan (Pavlodar, Shymkent andAtyrau) andthree gasprocessing plants. ThePavlodar and
Shymkent refineries mainly depend onRussian oilfrom Western Siberia.
Main economic indicators
Themain economic indicators ofKazakstan areprovided inAnnex 1.
(b) Current economic situation
During thelastthree years, theGDP continued thedecline begun in1992, butatalower rate
in1995 thaninprevious years. In1995, theGDP fellby8.9percentcompared withacumulative
dropofapproximately 40percentin1993-1994. ThetotaldropofGDPwasapproximately 50percent
during 1991-1995 period. In1995, theGDPwasapproximately US$16billion andtheGDPpercapita
wasapproximately US$980.
Thedecline inGDPwasduemainly toeconomic restructuring. Inmainsectors suchasindustry,
agriculture andconstruction, output dropped significantly during thelastfiveyears.
During thelasttwoyears, there wasamodest budget deficit (1.8percentofGDP in1994
and2.3percentin1995). Government expenditures stillexceeded revenues mainly duetoaweak
taxcollection system.
Price liberalization wascompleted bytheendof1995, except fornatural monopolies andState
services. Significant trade liberalization measures were taken during 1995 including elimination of
import andexport licensing formostgoods andtheelimination ofexport quotas. State-trading practices
wereeliminated anddemonopolization ofStatemonopolies wasinitiated in1994. Competition currently
exists inmostsectors oftheeconomy. Dueinlarge measure tosignificant progress inprivatizationWT/ACC/KAZ/3
Page7
andthedevelopment ofentrepreneurship, theshare ofnon-State1sector inGDP wasincreased from
approximately 26percentin1993 to70percentin1995.
Theannual inflation ratewasapproximately 2,260 percentin1993and1,275 percentin1994.
Inflation reached itsall-time highof45percentpermonth inJune1994. Thehighinflation ratein
1993 wascaused bynominal wage increases, adjustments toadministered prices, anincrease inthe
priceofenergy imports andimported inflation fromRussia sinceKazakstan wasstillintheRuble zone
in1993. Kazakstan lefttheRuble zoneinlate1993; introduced itsowncurrency, theTenge, on
15November 1993; andsubsequently embarked onafinancial stabilization programme approved
bytheIMF. TheTenge wasintroduced at4.68perUS$.
Early in1994, government credits toclear sizable inter-enterprise arrears ledtonear
hyperinflationtemporarilyderailingprogresstowardstabilizationandleadingtoasharprealdepreciation
oftheTenge. Thegovernment andtheNational Bank, thereafter, strictly tightened themonetary and
fiscal polices inorder tosuppress inflation. Asaresult, theannual inflation ratefelltoaround
60percentin1995 andtherealexchange ratereturned toitslevelprior toclearing inter-enterprise
arrears. Inflation forthefirstfourmonths of1996wasaround 11percent(around 39percentannual).
Figure 2.1indicates thetrend ininflation ratessince itreached itspeakinJune1994.
(Figure 2.1willbereproduced indocument WT/ACC/KAZ/3/Add.1)
Theaverage exchange rateofTenge was35.62 perUS$in1994and60.93 perUS$in1995.
Theexchange rateoftheTenge was66.9perUS$on1July1996.
Interest ratesinKazakstan oncredits increased significantly during 1993and1994. Theaverage
rateofinterest wasapproximately 113percentin1993; 280percentin1994; and98percentin
1995. Thetrend ininterest rates(refinance andtreasury billrates) from June1994 untilApril 1996
isshown inFigure 2.2below.
(Figure 2.2willbereproduced indocument WT/ACC/KAZ/3/Add.1)
Employment hasbeendeclining inmostsectors since1991. Unemployment was10.97 percent
attheendof1995versus lessthan1percentin1993. Thelevelofemployment inthenon-State sector
hasbeenincreasing. Attheendof1995, atleast62percentoftheemployed workforce wasinthe
non-State sector.
Amore detailed discussion ofeconomic policies, theirmaindirections andgoals, isprovided
insection 2below.
2. Economic Policies
(a) Main directions andgoals
Since independence in1991, Kazakstan hasbeenundergoing acomprehensive economic reform
toward anopen, freeandcompetitive market economy. During thepasttwoyears, significant progress
hasbeenachievedinmanyareasincludingtradeliberalization,privatizationoftheeconomy,development
1thenon-State sector includes alleconomic entities except those entities where theStatehasmore
than50percentownership shareWT/ACC/KAZ/3
Page8
ofcompetition inmany sectors, inflation control, monetary andfiscal reform, price liberalization,
financial sector reform, legalandregulatory reform, institutional reform andtheestablishment ofa
conducive environment fortradeandinvestment. Accordingly, government interference inthemarket
hasbeensignificantly reduced.
Theprogress demonstrated during thelasttwoyears willcontinue. Theunderlying goalof
theGovernment ’sstrategy forthefuture istocreate anenvironment capable ofachieving significant
positive realGDP growth. Toachieve thisobjective, atwo-pronged strategy isenvisaged. First, a
consolidation andstrengthening oftheprocess ofreducing inflation andachieving balance ofpayments
viability; andsecond, acceleration ofthestructural transformation oftheeconomy. Pursuit ofthis
strategy, together withthedevelopment ofanefficient andstable financial system, willcontribute to
thecreation ofafavourable climate formobilizing domestic savings andinvestment.
Pricing policy
Priceliberalization, withtheexception ofnatural monopolies andStateservices, wascompleted
inKazakstan bytheendof1995. Profitability control, moreover, waslifted inSeptember 1995 for
non-natural monopolies asaresult ofgreater competition created through demonopolization, elimination
ofbarriers toentry andliberal tradepolicies. Currently, onlypublic services suchaselectricity, water
supply, gas,heating, postal, public transport andStateservices (e.g,automobile inspection, licensing
andregistration fees)remain subject toprice control. Tariff ratesfornatural monopolies (e.g.power
sector, oilandgaspipelines, communications) arecurrently regulated bytheStateCommittee onPricing
andAnti-Monopoly Policy (Anti-Monopoly Committee).
Trade policy
TheaimofKazakstan ’strade policy isto(i)liberalize trade andincrease itsvolume and
(ii)provides reasonable support todomestic industry. Contract registration isrequired forexport of
certain goods (cf.IV.2(e)). Import andexport licensing andpermissions wereeliminated except for
afewcategories ofgoods representing lessthan2percentofKazakstan ’stotal value oftrade
(cf.section IV.1(f) andIV.2(d)). Inaddition, export quotas weretotally abolished early1995, except
forquotas imposed byRussia onusage oftheoilexport pipeline andquotas onexport oftextiles imposed
bytheEuropean Union. Import quotas donotapply inKazakstan. Finally, State trade monopolies
havebeenabolished.
Recently, Kazakstan eliminated allexport duties except wheat other thanDurum wheat.
Private sector development/privatization
Development oftheprivate sector hasbeenoneofthemain priorities ofthegovernment of
Kazakstan since independence. Thegovernment has:
- established aconducive legalenvironment forattracting private foreign anddomestic investment
(cf.section II.2(d));
- opened themarket forcompetition; and
- initiated anambitious privatization programme.
Asoftheendof1995, atleast62percentofemployed workforce wasinthenon-State sector
and70percentofGDP wascontributed bythenon-State sector.WT/ACC/KAZ/3
Page9
Privatization
Thefirststage ofprivatization wasinitiated in1991andlasted fortwoyears. During thefirst
stage, approximately 10percentofStateassets wereprivatized mainly through thesaleofenterprises
andshops tomanagers andemployees inagriculture, retail andconsumer services.
Thesecond stageofprivatization (1993-1995) wasinitiated in1993andconsists offourseparate
privatization programmes based onthetypeofenterprises andnumber ofemployees: small-scale
privatization (less than200employees), mass privatization (200-5000 employees), case-by-case
privatization (more than5000 employees) andagro-industrial complex privatization (allenterprises
intheagriculture sector). Theabove general criteria weresubject tovarious exceptions. Forexample,
companies withlessthan200employees inthemanufacturing andconstruction sectors wereprivatized
under mass privatization.
small-scale privatization: Thisprogramme isconducted through cashauctions andcommercial tenders.
Thetotalnumber ofenterprises andobjects qualifying forsmall-scale isestimated tobeapproximately
20,000 andconcentrated mainly inthegeneral retail, distribution andconsumer services sectors. As
oftheendofJune1996, more than74percentofthese enterprises havebeenprivatized.
Mass privatization: 1,712 companies inalmost every sector oftheeconomy havebeenoffered for
thisprogramme. Themassprivatization wasconducted asfollows: 10percentofshares weregiven
toemployees; around 51percentofshares weresoldthrough coupon auctions toinvestment funds
inwhich thecitizens ofKazakstan invest coupons distributed bythegovernment; andtheremaining
shares(around39percent)arecurrentlybeingsoldviaopencashauctionstolocalandforeigninvestors.
BytheendofJanuary 1996, coupon auctions werecompleted forallcompanies qualifying formass
privatization. More than150investment funds, many ofwhich arelinked tomajor banks anddomestic
private entrepreneurs, nowownshares inthese companies. Cash auctions under mass privatization
wereinitiated inDecember 1995. AsoftheendofApril 1996, more than300companies weresold
through cashauctions. Thegovernment plans tocomplete mass privatization bytheendof1996.
Case-by-case privatization: There arearound 160large enterprises scheduled tobeprivatized under
thisprogramme mainly inheavy andchemical industry, extraction andprocessing ofnatural resources,
energy, metallurgy, transportation (oilandgaspipelines, roads, railways andairtransport), major
department stores andtelecommunications. Theprivatization ofthese enterprises maytaketheform
ofdirect sale,auctions, management contract, orcommercial tender (conditional sale). Case-by-case
privatization isopentoforeign investors without anylimitations onforeign participation. Asofthe
endofApril 1996, 5companies were soldtoforeign investors, 24companies arecurrently under
managementofforeigninvestorsand20companiesareunderthemanagementoflocalprivatecompanies.
Contract management isviewed asanintermediate stage prior tosale. Companies which have
management contract mayhavetheoption topurchase theenterprise atalaterstage.
Agro-industrial complex privatization: Agriculture related processing industry suchasfoodprocessing,
mills, elevators weresoldortransferred according tothefollowing scheme: 10percentnon-voting
shares were given toemployees; 10percentwithpriority sales toemployees; 51percentto
producers, suppliers andallied companies; and29percentremained withtheState. Currently, the
remaining Stateshares aremainly being privatized viathemassprivatization opencashauction which
include foreign andlocalparticipation. Asoftheendof1995, over84percent(1,862 enterprises)
ofState enterprises intheagro-industrial complex were privatized.
Asof1January 1996, more than2,404 Statefarms (over 90percentofallStatefarms) were
privatized. However, thelandusedbythesefarms isstillowned bytheStateandleased onalong-termWT/ACC/KAZ/3
Page10
basis.ThemajorityofStatefarmshavebeensoldatlargediscounts,orsimplytransferred,toemployees.
Housing privatization isapproximately 80percentcomplete.
Morethan35percentofState-ownedtruckswereprivatizedthroughsmallandmassprivatization
programmes. More thanahalfofthetotaltruck fleetinKazakstan (thetotalisapproximately
375thousand) iscurrently owned byprivate individuals andcompanies.
ThePresidential decree having theForce theLawNo.2717OnLand, dated 26December 1995
permitsprivatelandownershipinKazakstan.Kazakstanilegalentitieswhosesharesmaybe100percent
foreign-owned nowhavetherighttoownland. Thefollowing types oflandplotsmaynotbeprivately
owned: (i)landusedforagricultural purposes except landplots forpersonal farming, horticulture
anddacha construction, (ii)landusedfordefense purposes, (iii)nature reserves including forest and
water stock landand(iv)commonly usedlandinpopulated areas. Inaddition, foreigners maynot
ownlandforthepurpose ofpersonal farming, horticulture, ordacha construction.
Theconcept oflandownership inKazakstan islimited tosurface rights. Vertical licences,
however, maybeobtained onatemporary orpermanent leasebasistomake useofsubsurface resources.
TheCentral Asian Stock Exchange (CASE) isoneoftheother mechanisms thathavebeen
usedforprivatization ofStateproperty. AsoftheendofApril 1996, there was117companies listed
ontheCASE. Asmall number ofthese companies haveState shares which maybetraded withthe
permission oftheState Property Committee.
Thethird stage ofprivatization (1996-1998) wasinitiated inearly 1996 withthegoalof
completing privatization ofremaining State assets withcertain exceptions. Privatization during the
thirdstageofprivatization willconsist ofmainly cashprivatization andwillbeopentoforeign investors
without limitations.
Sectoral priorities
TheGovernmentplanstocontinueimprovingthelegalandregulatoryrégimeinordertoestablish
conducive conditions forinvestment inallsectors, without exception. TheGovernment planstocomplete
small-scale, massandagricultural privatization bytheendof1996. Inaddition, theGovernment plans
tocontinue case-by-case privatization inorder toattract needed domestic andforeign investment, new
technologies, management techniques andknow-how. Thegoals aretoincrease production andto
modernizeandexpandexistinginfrastructure,especiallytransport,electricpowerandtelecommunications.
TheGovernment isopenforBOT (Build-Operate-Transfer) schemes andother forms ofinvestment
ininfrastructure. Inaddition toattracting investment, theGovernment priorities inthemostimportant
sectors oftheeconomy aredescribed inTable 2.8below. Investment inthese sectors isopenequally
toforeign andlocalinvestors.
Foreign investment hasbeensteadily increasing insectors listed inTable 2.8.Foreign investors
insuchsectors include AT&T, Agip, Australian Telstra, British Gas,Chevron, Deutsch Telecom,
Elf,Exxon, France Telecom, LukOil, Mitsubishi, Mitsui, Mobil, Netas, Northern Telecom, Oryx,
Shell, Siemens andTotal.WT/ACC/KAZ/3
Page11
Table 2.8-Government Priorities inmost important Sectors oftheEconomy
Sector Priorities
Oil Increase inproduction
Construction ofinternal andexport oilpipeline
Privatization ofseveral enterprises intheoilsector, including refineries,
within thecontext ofcase-by-case privatization
Completion oftherestructuring andprivatization ofthegasoline andoil
products distribution company (Munai OnimDeri)
exploration ofoilintheCaspian sea
Gas Increase inproduction
Development oftheKarachaganak gasdeposit andother deposits
Construction oftheZhanazhol gasrefinery
Privatization ofseveral enterprises inthegassector within thecontext of
case-by-case privatization
Exploration ofgasintheCaspian sea
Coal Privatization ofseveral enterprises inthecoalsector within thecontext
ofcase-by-case privatization
Modernization ofmining processes
Development anduseofsmall coaldeposits
Shut-down ofunprofitable mines
Power Development ofsmall power engineering byusing alternative sources of
energy: small rivers, solar energy andwind energy
Promotion ofenergy saving technologies
Construction ofnewpower generation facilities andmodernization of
existing ones
Privatization ofexisting power generation facilities
Establishment ofanIndependent Energy Regulatory Commission
AirTransport Restructuring oftheState aviation company Kazakstan AirWays:
transferring ofairports tolocalgovernments andprivatization ofrelated
services.
Modernization ofairports, airtraffic control andmanagement
Modernization andexpansion ofairports inmajor cities
Modernization ofaircraft fleet
RailTransport Expansion andmodernization ofrailnetwork
Privatization ofrailway related services
Road Transport Procurement ofurban transport vehicles
SeaTransport Modernization oftheAktau seaport andestablishment ofanoilterminal
fortransport ofoilthrough theCaspian sea
Partial privatization oftheAktau seaport
Telecommunications Expansion/modernization ofTelecommunications system
Privatization inthecontext ofcase-by-case privatization
Agriculture Establishment ofasystem ofmandatory insurance ofagricultural
production
Improvement ofirrigation systemsWT/ACC/KAZ/3
Page12
(b) Monetary andfiscal policy
Themajor vehicles ofthegovernment ’sstrategy toachieve financial stabilization andstructural
transformation oftheeconomy havebeenthepursuit oftightfiscal andmonetary policies.
Monetary policy (inflation control, bank supervision, interest rate, monetary policy short-term)
There aretwobasicobjectives tomonetary policy inKazakstan. Thefirstistocontrol inflation
andthesecond istomaintain thestability ofthefinancial system. Kazakstan hasopted foraflexible
exchange raterégime andismoving toward establishment ofcurrent account convertibility. With a
flexible exchange raterégime monetary policy isimportant initscontrol ofinflation andtheinfluence
itcanhaveonthefinancial sector. Monetary policy is,therefore, active andasaresult itmust be
bothresponsible andconservative. TheNBK (National Bank ofKazakstan) implements themonetary
policy.
Inflation control
TheNBK hassofarexceeded itsprimary goalofinflation control. Itresisted pressure to
monetize thebudget deficit andquasi budget deficit. Inaddition, ithasfollowed strictmonetary policy
andnetdomestic assettargets. Accordingly, there wasasteady decline intheinflation rateoverthe
entire period since reaching itsall-timehighinJune1994. TheNBK hasmanaged tokeepinflation
toaround 2.0percentpermonth asofMay1996.
TheNBK tracks therelationship between themonetary baseandinflation andhasthusrecently
announced thatitwillcontinue itsefforts tocontrol thebase. Aninflation target ofaround 28percent
in1996 isoneofthemain goals ofNBK policy.
Banking Supervision andRegulation
TheNBKmaintains stability ofthefinancial system through banking supervision andregulation.
Under theDecree OnBanks andBanking Activities (theBanking Decree), adopted inAugust 1995
andtheDecree OntheNational BankoftheRepublic ofKazakstan (theNational BankDecree), adopted
Mach 1995, theNBK hastheresponsibility forprotecting thestability ofthemonetary-credit system
andtheinterest ofcreditors, depositors andother bankclients. Inorder tofulfiltheseresponsibilities,
theNBK isgiven theauthority tooversee andregulate theactivities ofbanks. More specifically, under
theBankingDecree,theNBKdeterminesthecriteriaforenteringintothebankingsystem,theprocedures
forlicensing ofbanking activities, theconditions under which acontrolling interest inabank may
beacquired andtheprocedures forremoving problem banks fromthesystem, through conservatorship
orliquidation.
TheNBKimplements itssupervisory policies through prudential normative requirements with
which allbanks mustcomply. These requirements include minimum capital requirements, limitation
onloans toasingle borrower, aminimum liquidity ratioandthelimits ofthebank’sopencurrency
position. Inaddition, there arerestrictions onrelations between banks andpersons connected tothe
banks (“special relations ”generally defined asmanagement officials, physical persons holding more
than10percentofthebank’sshares, close relatives ofsuchpersons andlegalentities inwhich such
persons arelarge participants). TheNBK isauthorized toconduct inspections ofbanking activities.
Included inthemeasures thatmaybetaken bytheNBK aretheimposition ofwritten instructions or
finesandthesuspension orannulment ofabank’slicence andtherevocation ofitspermission toopen.WT/ACC/KAZ/3
Page13
Interest RatePolicy
Kazakstan isnowmoving intoitssecond stageofreform anditfacesseveral newtasks. While
aninflation target ofaround 28percentfor1996 willstillbeoneofthemain goals ofitspolicy, the
NBK isincreasingly concerned withthemore complex financial market thathasemerged asaresult
ofitslowinflation policies. Inparticular, withconsistently lowinflation themarket forgovernment
debtandprivate financial markets begin totolerate longer termloans. Thusinterest rateshavebecome
anincreasing concern oftheNBK. TothatendtheNBK hasestablished apolicy tomaintain apositive
realrateofinterest ontherefinance rate(therateatwhich loans tothegovernment aremade) and
hasestablished alombard facility toactaslender oflastresort.
Itispossible toseethatinterest rates, afterexperiencing substantial variability andunrealistically
highlevels havelevelled offandbegun toconverge. Asratesconverge, theNBK canbegin totarget
theinterbank rate. More importantly however, theNBK willbeabletomonitor developments onthe
increasingly important T-Bill market. Thislatter market isthemostimportant areaofdevelopment
targeted bytheNBKsinceitisoneoftheprimary non-inflationary means offinancing thebudget deficit.
Inaddition, IMFtargets onexternal debtwillputmore pressure onthegovernment toraisemoney
from thissource. Asthesecondary market grows theNBK intends tobecome themajor participant
onthemarket forsecondary debtthusrunning fullscale openmarket operations.
Monetary Policy-Short Term
Theimperatives forKazakstan inthecarrying onmonetary policy over1996 and1997 will,
therefore, bethree-fold:
- strengthening theautonomy oftheNBKandhaving theNBKstrongly commit toitsnetdomestic
assettargets (ceilings) soastoforce theGovernment toseekalternative sources offinancing
andthereby, putting more pressure ondeveloping themarket forGovernment debt;
- closemonitoringofinterestratesbytheNBKasthemarketsarenowexperiencingaconvergence
ofrates, lower nominal butpositive realratesandanincrease inthenumber ofdebtinstruments
asfinancial innovation develops;
- sensitivity bytheNBK about themove tofullinformation onthelower-tier banking sector.
Thesupervision andaccounting reform measures willbegin tocome tofruition inthenext
future. Asproper charts ofaccounts andsupervisory standards areimposed theactual net
worth ofthelower-tier banks willbecome better known. Thenewinformation willserve growth
intheindustry andthiswillallow forbetter selection oflongrunbanks bydepositors raising
thequality ofthefinancial sector.
Since thebudget deficit ultimately willdetermine theinflation rate,theGovernment plans to
increase thequality ofitsdeficit financing by:
- increasing taxcollections soastoavoid adeficit problem inthefirstplace; and
- developing themarket forgovernment debtmore rapidly thanatitscurrent pace.WT/ACC/KAZ/3
Page14
Fiscal policy
TheTaxCode (Presidential Decree having theForce ofLaw No.2235), adopted on
24April 1995, represents most clearly thethrust oftheGovernment ’sfiscal policy. Itisthemost
comprehensive andsystematic bodyoflawdealing withtaxes thathasbeenintroduced within theCIS
andindicates aclear commitment totheuseofmarket instruments inpursuit ofpolicy goals.
TheTaxCode istheonlyvehicle employed bytheGovernment ofKazakstan tospecify
compulsory nationwide andlocaltaxes. Ingeneral, taxes areapplied universally withalimited set
ofexemptions. TheTaxCode provides forthreemajor central government taxes: income taxforboth
business andindividual; value added tax(VAT); andexcise duty. Income taxisassessed onaresidency
basis rather thancitizenship (with normal residency rules applying). Legal andnatural persons who
havetaxable income inthetaxyeararetaxpayer ofincome tax.Annual aggregate income ofaresident
taxpayer shallinclude allincome sourced bothwithin andwithout Kazakstan. Ontheotherhand, annual
aggregate income ofanon-resident taxpayer shallconsist onlyofincome sourced within Kazakstan.
TheCode offers nopreferences toforeign nationals orforeign owned orjointventures.
Theaggregate annual income comprises alltypes ofincome including: business income in
cashorkind; employment income incashorkind; andproperty income ofnatural persons.
TheCode, ingeneral, allows forthededuction ofallexpenses incurred inincome generation.
Thatbeing said,itdoeshowever limittheextent ofdeductions allowed withrespect tointerest, bad
debts, R&D, depreciation andmaintenance andrepair costs. Afiveyearcarry forward oflosses is
permitted.
Anindividual isentitled toabasic deduction ofmonthly evaluation index2forhim/her self
andforeachdependent.
Business income istaxed at30percent(20percentinspecial economic zones) except for
income derived principally fromlandforwhich therateis10percent. Individual incomes aretaxed
atprogressive marginal ratesvarying from5percentto40percent. Individual income taxiswithheld
atsource.
Dividends andInterest aresubject toa15percentwithholding tax. Forindividuals this
withholding taxrepresents thefinaltaxonsuchincome. Assuchanyincome onwhich taxhasbeen
withheld atsource isexempt from further income tax.Taxcrediting provisions effectively exempt
dividends andinterest received bybusiness ’sfrom withholding tax.
Certain other payments tononresidents arealsosubject towithholding taxandabranch tax
isapplied tothenetaftertaxincome ofbranches offoreign owned enterprises operating inKazakstan.
TheCode provides foraVAT which taxes thevalue added through thevarious stages of
production anddistribution uptofinalsaleforconsumption oruse.Itischarged onbothgoods and
services consumed inthecountry whether domestically produced orimported. Thetaxispaidateach
point inthechain ofsales butasystem oftaxcrediting avoids anycascading effect. Thetaxis
comprehensive withveryfewexemptions.
2Itisaninternal government index updated quarterly. Currently, itisTenge 460.WT/ACC/KAZ/3
Page15
ThebasicrateforVATis20percent. Having justtheonepositive rateavoids liability disputes
andkeeps thetaxsimple tooperate andadminister. Exports areassessed atazeroratewithcredit for
allinput taxes except forexport toCIScountries
Excise dutyischarged onasetofspecified imported anddomestically produced goods. A
limited setofexemptions byuserarespecified. (cf.section IV.1(d))
Twoother nationwide taxes arecollected. They areasecurities transaction tax; andspecial
taxes andpayments imposed upon mineral resource users. Further theCode details thefollowing:
localtaxes: landtax; property tax; andtaxonvehicles.
Within theoverall government strategy, thefiscal policy willconcentrate onthefollowing four
elements:
- raising taxrevenues viaastrengthened taxadministration;
- improving thestructure andmanagement ofexpenditures;
- overhauling thesocial safety net; and
- continuing theprocess ofdivestiture ofenterprises ’social assets.
(c) Foreign exchange, payments system andrelations withtheInternational Monetary Fund
Payments system
Thepayment system inKazakstan involves paper-based instruments which canbetransferred
bypostortelegraph aswellaselectronic payments which accounts forapproximately 80percentof
allbanks transmissions including allpayments which exceed Tenge 100,000. Since 1993, theNBK
hasadoptedanumberofregulationsconcerningbankaccountsandcertaintypesofpaymentsinstruments.
Atthepresent time, payments inTenge must bemade inaccordance withthefollowing rules and
regulations:
- Temporary Regulation onnon-cash settlements intheRepublic ofKazakstan;
- Instruction onsettlement, current andbudget accounts being opened inbanks oftheRepublic
ofKazakstan;
- Temporary Regulation oninterregional electronic payments;
- Regulation onsettlement byCheques intheRepublic ofKazakstan;
- Temporary Regulation oncorresponding banking intheRepublic ofKazakstan;
- Temporary Regulation onsettlement form based onpromissory notes andbillsofexchange
intheRepublic ofKazakstan
TheBanking Decree provides thatrelations between bankandclient shallbemaintained on
thebasisofacontract unless otherwise stipulated bylegislation oftheRepublic ofKazakstan andthat
thebankmake money transfers informs, methods andprocedures established bytheNBK. Cross-border
transfers aremade inmanners existing ininternational practice andnotcontradicting theapplicable
legislation ofKazakstan. According toArticles 48-51 oftheNational Bank Decree, theNBK hasthe
authority to:
- organize, co-ordinate andregulate thefunctioning ofthepayment system;
- establish theforms, means andprocedures foreffectuation ofthesettlement ofaccounts, cashier
servicing ofbanks andtheirclients;
- establish theeconomic responsibility forviolation oftherulesforperforming account settlement
operations;WT/ACC/KAZ/3
Page16
- establish types andlegalrégime ofaccounts, types ofpayment instruments andrulesfortheir
circulation; and
- create clearing andaccount settlement organizations andtolicence andregulate theactivity
ofnon-State clearing andaccount settlement organizations.
Foreign exchange
Under theNational Bank Decree, theNBK isauthorized to:
- conduct interventions inthecurrency markets; and
- determine thesphere andprocedure forthecirculation inKazakstan offoreign currency and
securities denominated inforeign currency, including the:
- establishment ofrules fortheimporting andexporting offoreign currency andthe
procedures fortheissuance oflicences tobanks toperform foreign currency operations;
- purchase andsaleofforeign currency andgovernment securities offoreign countries.
Theprimary lawgoverning currency regulation, theLawOnCurrency Regulation, wasenacted
on14April 1993(TheCurrency Law) andamended on21April and20July1995. Thislawestablishes
thegeneral provisions affecting currency operations inKazakstan. More specific provisions areset
forthintheRules ofHard Currency Transactions intheRepublic ofKazakstan, (theCurrency Rules)
which were issued bytheNational Bank ofKazakstan on24November 1994 andwhich havebeen
thesubject ofanumber ofliberalizing amendments throughout 1995 (24January, 18May and
16November) and30May1996.
TheLawonCurrency Regulation provides thatKazakstani residents maypurchase foreign
currency ontheinternal currency market under theprocedures andforthepurposes established by
theNBK. Residents arepermitted tohaveforeign currency accounts inKazakstani orforeign banks
under procedures established bytheNBK. Under theCurrency Law, foreign currency valuables (which
includes currency, securities andprecious metals) maybeimported intoKazakstan byresidents and
non-residents without limitation. Residents mayexport foreign currency inaccordance with rules
determined bytheNBK. Non-residents mayexport foreign currency butmust present toCustoms
Officials adeclaration drawn upwhen theyentered thecountry anduponwhich theyreported anyforeign
currency being imported intoKazakstan. Iftheamount oftheforeign currency tobeexported exceeds
theamount thatwasimported, thenon-resident mustpresent adocument fromlicensed bankorfrom
non-bank exchange bureaus confirming thelegality ofhisreceipt oftheamount tobeexported.
TheCurrency Lawcharges theNBK withdetermining theexchange rateforthecurrency of
Kazakstan (theTenge) withmonetary units ofother countries onthebasis ofthemarket currency
exchange operations. Theexchange rateistobepublished inthepress. Exchange rateforthesaleand
purchase offoreign currency fortheequivalent currency ofKazakstan aredetermined bythepurchaser
andseller autonomously. Thetrade attheorganized currency market (Kazak Interbank Currency and
Stock Exchange) isconducted every dayandlimited toRussian Ruble, US$andDM. There isalso
averyintensive interbank OTC market withtransactions inmany different currencies.
Banks arepermitted bytheCurrency Lawtofreely purchase andsellforeign currency, both
inKazakstan andabroad. Operations relating tothepurchase andsaleofforeign currency maybe
carried outbylicensed banks and“exchange points ”(legal entities having alicence from theNBK
tocarry outsuchoperations). Residents maypurchase foreign currency foranequivalent amount of
Tenge,providedthatforeigncurrencyisnecessarytoeffectuatecurrentcurrencyoperations,inKazakstan
orabroad, under procedures established bytheNBK. Non-residents maypurchase foreign currency
onthecondition thattheassets usedforsuchpurchase areareceipt from acurrent payment bytheWT/ACC/KAZ/3
Page17
non-resident inKazakstan, inaccordance withprocedures established bytheNBK. Bothresidents and
non-residentsmaysellforeigncurrencyinKazakstanintheprocedureestablishedbytheNBK,atlicensed
banks andexchange points, foranequivalent amount ofTenge.
Mandatory exchange ofcurrency isnotrequired inKazakstan. Kazakstan doesnotapply any
restrictions related tointernational transfers andpayments forcurrent transactions related toservices
including (i)thetransfer offoreign currency toandfromKazakstan toaffect payment onimport and
export ofservices, (ii)thereceipt andgranting offinancial credits, (iii)transfer toandfromKazakstan
ofinterests, dividends, other revenues ondeposits, investments andcredits and(iv)non-commercial
transfers including wages, pension andalimonies.
Foreign andlocalentities andresidents mayopenandmaintain localandhardcurrency accounts
atanybankinKazakstan. However, noresident legalentity maymaintain abankaccount atabank
outside ofKazakstan without thewritten permission oftheNational Bank.
According totheCurrency Rules, payments inhardcurrency between theresidents ofKazakstan
areprohibited except forlending andrepaying loans. Lending inhardcurrency tonatural persons
isprohibited (Article 1.16). Allhardcurrency transactions within Kazakstan havetobedonevialicensed
banks orexchange bureaus (Article 1.01).
Apart fromtheCurrency LawandtheCurrency Rules, the1994Foreign Investment Lawgrants
broad rights toforeign investors interms ofspending theirowncurrency resources. Specifically, all
moneytransfersincurrencyassociatedwithforeigninvestments(whetherinsideoroutsideofthecountry)
cantakeplace without anyrestrictions. Forexample, foreign investors arepermitted tosettle their
obligations, including thepayment ofwages totheirresident andnon-resident employees, inforeign
currency. Inaddition, under the1994Foreign Investment Law, foreign investors mayfreely convert
andrepatriate theirtenge earnings made inside Kazakstan.
Relations withtheInternational Monetary Fund andtheWorld Bank
Kazakstan became amember oftheIMFon15July1992. Afirstloanforsystem transformation
financing wasgranted in1993, followed bytwostand-by loans in1994and1995respectively. Another
IMFloanisexpected forperiod 1996-1998.
IMFhasprovidedtechnicalassistancetotheNationalBankofKazakstaninmanyareasincluding
researchandanalysisofmonetary-creditpolicy,currencyandmonetary-creditingregulations,automation
andreform ofthebanking sector anddeveloping andintroducing anewchart ofaccounts.
Kazakstan hasbeenamember oftheWorld Bank since 23July1992. Seven loans havebeen
granted bytheWorld Bank inthefollowing order: technical assistance loan(1993), rehabilitation
loan(1993), urban transportation rehabilitation loan(1994), petroleum sector technical assistance loan
(1994),structuraladjustmentsloan(1995),financialsectordevelopmentloan(1995)andsocialprotection
loan(1995). Twoloansareexpected for1997and1998period: structural adjustment loanandstructural
adjustment inthefinancial sector.
Kazakstan hasmetsatisfactory theIMFandtheWorld Bank conditions onprivatization,
demonopolization andtrade andprice liberalization forprevious loans. Theconditions fortheperiod
1996-1998 include further liberalization inforeign trade.WT/ACC/KAZ/3
Page18
(d) Foreign anddomestic investment policies
Reforming thelegalandregulatory investment régime wasoneofthemajor components of
thebroad based reforms undertaken bythegovernment to(i)move from acentralized toamarket
economy and(ii)attract needed investment toincrease production, modernize infrastructure and
restructure theindustrial base. Kazakstan hasestablished asound legal environment conducive to
investment. Anumber ofimportant legislation modeled along international rulesandstandards were
enacted including theForeign Investment Lawof1994, theTaxCode of1995 (cf.section II.2(b)),
theCustoms Code of1995, theDecree ofPresident having theForce ofLawOnInsurance of1995,
theLaw onDevelopment ofCompetition andRestriction ofMonopolistic Activity of1991
(cf.section II.2(e)), currency andbanking lawsandregulations (cf.section II.2(b)), intellectual property
legislation (cf.section V)andPresident Decree having theForce ofLaw OnLand of1995
(cf.section II.2(a)).
TheForeign Investment Law(theFIL)provides for,interalia,guarantees fornational treatment
andnon-discrimination among foreign investors. Kazakstan, moreover, hasapolicy offreeandopen
admission toforeign investments. Inother words, itdoesnotrestrict investment perseinanysector
anditdoesnotsubject foreign investment toanyprior authorization requirements. TheFILdoesnot
provide anyinvestment incentives (e.g.taxholidays) either ingeneral orwithregard toaspecific sector.
TheGovernment plans tocontinue improving thelegalandregulatory environment forforeign
investment in1996-1997 andtoimprove theconditions forstimulating theoperations ofcredit, financial,
investment andinsurance institutions servicing thesmall andmedium-size enterprises.
(e) Competition policies
Kazakstan ’sLawonDevelopment ofCompetition andRestriction ofMonopolistic Activity
(AML), enacted in1991, ismodeled according tointernational principles ofcompetition. Theaim
ofthecompetition policy inKazakstan istostimulate commercial activities bydeveloping andpreserving
opencompetition, restricting monopolistic practices andpreventing discriminatory andunfair practices.
TheAnti-MonopolyCommittee(AMC)anditsnetworkof19regionalcommitteesandonecitycommittee
(Almaty City) areentrusted inenforcing theAML. Under theAML, theAMC hasawiderange of
authorityincluding(i)breaking-updominantcompaniesthatraiseseriousmonopolyconcernsintosmaller
non-dominant andcompeting companies, (ii)preventing mergers andacquisitions thatthreaten
competition, (iii)taking administrative andcourt actions against companies thatviolate theAML and
(iv)invalidating government decisions thatprevent competition andestablish barriers toentry.
Monopolies formed thebasis ofmuch ofKazakhstan ’seconomy during theperiod following
independence 1991-1993. During thepasttwoyears, competition inKazakstan wasdeveloped through
(i)demonopolization ofStateenterprises priortoprivatization toensure thatStatemonopolies arenot
simply transferred toprivate monopolies, (ii)elimination ofbarriers toentry (e.g.exclusive rights),
(iii)dissolving mostStateholding companies andnational jointstock companies and(iv)restructuring
severalnaturalmonopoliesbyseparatingnaturalmonopolyfeaturesfromcompetitivefeaturesandopening
competition intherelated service sectors. Asaresult, competition wasdeveloped inmany sectors
oftheeconomy including distribution, trade, services (telecommunications, insurance, transport and
construction) andproduction.
Inaddition, tradeliberalization policy andelimination ofState-trading practices haveincreased
thelevelofcompetition andopenness ofthemarket inKazakstan. Thegovernment plans, bytheend
of1996, tocomplete theprocess ofrestructuring theremaining national andStatejointstock companies
andState holding companies which willleadtofurther competition inthemarket.WT/ACC/KAZ/3
Page19
Thegovernment requires licences forcertain activities inorder toensure competence of
providers, safety, health andprotection ofenvironment. Anyeconomic entity mayapply toobtain
licences.
3. Trade InGoods andServices
Thevalue andvolume offoreign trade ingoods havebeensteadily increasing during thelast
threeyears. During the1993-1995 period, growth inthevalue ofimport andexport wasapproximately
21percentand44percentrespectively. Thegrowth inexport value ismainly duetoincrease inexport
prices formaingoods exported fromKazakstan suchaswheat, oilandferrous andnon-ferrous metals.
TheGrowth inforeign trade isexpected tocontinue during thenextfiveyears.
In1993, 1994and1995, import share oftheGDPwas30percent,28percentand23percent
respectively andexport share ofGDPwas33percent,26percentand31percentrespectively. The
balance oftradeingoods for1993, 1994and1995amounted toUS$371.9 million, US$-263million,
US$1,232.3 million respectively. Import andexport datausedtocompute theaforementioned trade
balance arebased onc.i.f. forimports andfobforexports andoncustoms cargo declaration. The
balance ofpayment indicates adifferent trade balance ofUS$-922.9 million andUS$-222.5 million
for1994 and1995 respectively. Thedifference iscaused by,interalia,thefollowing factors which
weretaken intoaccount inthebalance ofpayment: imports asluggage forcommercial purposes, barter
trade andfobprices forbothexport andimport.
Themaintradepartners ofKazakstan for1995wereRussia (45.2 percentoftotalforeign trade
turnover ofgoods), Netherlands (6.0percent), Uzbekistan (4.9percent), Germany (4.2percent)
andChina (3.8percent). (SeeTable A1.33).
Statistics related totradeinservices ispartially maintained (cf.Table A1.34). During theperiod
1993-1995 thevalue ofimport ofservices haveincreased byapproximately 87percentandthevalue
ofexport hasdecreased byapproximately 35percent.
Statistics related tothevalue andcomposition offoreign direct investment indomestic services
isnotmaintained. However, foreign participation intheservice sectors intheformofbranch offices
offoreign companies orjointventures hasbeensteadily growing overthepastfiveyears. Investors
andcompanies fromAustralia, European Union member countries, Turkey andtheUnited States have
significant shares intheservices sector including professional services (e.g. legal, accounting),
construction, telecommunication, transport, trade andfinancial services.
Alistofpublications onforeign trade statistics oftheRepublic ofKazakstan isprovided in
section 2ofAnnex 1.Inaddition, section 3(b)ofAnnex 1provides statistics onforeign trade, export,
import, main trade partner andtrade bygeographic areas.
4. Information OnFinancial Movements Related toNationals Working Abroad
Currently, thenumber ofKazakstani citizens working outside Kazakstan isnotsignificant.
Therefore, statistical datarelated tothese citizens isnotavailable.WT/ACC/KAZ/3
Page20
III. FRAMEWORKFORMAKINGANDENFORCINGPOLICIESAFFECTINGFOREIGN
TRADE INGOODS AND TRADE INSERVICES
1. Powers oftheExecutive, Legislative andJudicial Branches ofGovernment
TheRepublicofKazakstanisaPresidentialStatewithpowerdividedamongexecutive,legislative
andjudicial branches.
(a) Powers oftheExecutive
ThePresident isHead ofStateandexecutive powers intheRepublic ofKazakstan areexercised
bythePresident andtheGovernment. ThePresident iselected to5yearterms ofoffice onthebasis
ofuniversal, equal anddirect suffrage bysecret ballot. Themembers oftheGovernment, including
thePrime Minister, Ministers andheads ofState committees areappointed andmaybedismissed,
individually orcollectively, bythePresident. ThePresident alsoappoints threeoftheseven members
oftheConstitutional Council, seven oftheforty-seven members oftheupper house ofParliament,
executive heads oflocalgovernment unitsintheOblasts andmajor cities ,alldiplomatic representatives
oftheState, thehighest commanding officers ofthearmed forces andtheChairperson oftheState
Budget Committee. With theconsent ofbothhouses ofParliament, thePresident appoints thehead
oftheNational Bank and,withtheconsent oftheSenate, theProcurator General andtheChairperson
oftheNational Security Committee.
ThePresident isauthorized toprioritize draftlawsforconsideration byParliament and,once
adopted, toeither signthem intoeffect ortoexercise power tovetothem. Inorder tooverride a
Presidential veto,bothhouses ofParliament mustgenerate avoteofatleasttwothirds oftotalmembers.
TheParliament maydelegate itslegislative powers tothePresident foraperiod ofuptooneyear.
ThePresident, moreover, maydissolve Parliament inthefollowing cases: where insurmountable
differences arisebetween thehouses ofParliament orbetween Parliament andanother branch ofState
power giving risetoa“political crisis; ”where Parliament votes no-confidence intheGovernment or
twice refuses togiveitsconsent totheappointment ofthePrime Minister. Finally, thePresident may
callanational referendum andadopt decrees andresolutions implementing legislation.
TheGovernment isorganized andsupervised bythePrime Minister whois,inturn,accountable
tothePresident. TheGovernment isauthorized todevelop, implement andenforce themaindirections
ofsocio-economic policy intheStateincluding policies intheareaofforeign relations, foreign economic
relations, revenue generation, defense andpublic order. “Sub-law acts”intheformofresolutions and
directives, which implement legislative acts,maybeissued bytheGovernment. Thesub-law actsof
theGovernment, aswellastheactsoftheexecutive heads ofunitsoflocalgovernment maybeannulled
bythePresident. Themandate oftheGovernment expires withthatofthePresident unless otherwise
terminated bythePresident.
(b) Powers oftheLegislature
TheParliament isabi-cameral bodywithanupper house called theSenate andalower house
called theMajilis. There aresixty-seven deputies comprising theMajilis elected tofouryearterms
onthebasis ofuniversal, equal anddirect suffrage bysecret ballot. Thedeputies oftheSenate are
elected tofouryearterms withhalfsubject tore-election every twoyears. Inaddition tothe7deputies
appointed bythePresident, twodeputies from eachOblast, major cityandthecapital, areelected at
ajointsession oftherepresentative bodies ofalllocalgovernment units.
Upon theinitiative ofthePresident, Parliament mayamend theConstitution. Parliament may
alsoadopt Constitutional Laws, Laws, resolutions anddecrees onissues that,“regulate themost
important public relations. ”Atjointsessions, Parliament approves ofandmayissuechanges to,theWT/ACC/KAZ/3
Page21
Statebudget andputforward aninitiative calling foranational referendum. Atseparate sessions, the
Majilis andthentheSenate mayratify ordenounce international treaties anddecide issues ofState
loans andother forms ofeconomic assistance. TheSenate, interalia,hasexclusive jurisdiction to
electanddischarge theChairperson andallJustices oftheSupreme Court andtheChairpersons of
theCollegium ofJustice. TheMajilis, interalia,hasexclusive jurisdiction toaccept draftLaws for
considerationandtoannounceregularandextraordinaryPresidentialelections.TheGovernmentprepares
mostdraftlawswhicharesubsequentlyinitiatedforconsiderationbyParliamenteitherbytheGovernment
orParliament members.
(c) Powers oftheJudiciary
Judicial power intheRepublic ofKazakstan isexercised within theframework ofaunitary
court system divided among threetiers. TheSupreme Court isacourt ofgeneral appellate jurisdiction
(andincertain contexts acourt oforiginal jurisdiction) withpower toreview alljudicial decisions
rendered bylower-tiered courts including those ofthemilitary courts. TheSupreme Court, however,
isdivided intospecialized Collegiums withoneCollegium reviewing cases ineachofthefollowing
fourareas:economic,civil,criminalandmilitary.TheSupremeCourt,moreover,mayissuenormative
resolutions based uponcourt practice. These normative resolutions formbinding precedents forcourts
subsequently considering similar cases andassuchformpartofthecorpus ofactive lawoftheRepublic
ofKazakstan.
Atthenexttierbelow theSupreme Court aretheOblast Courts, theAlmaty CityCourt and
theMilitary Court ofTroops. TheOblast andAlmaty CityCourts arecourts ofgeneral jurisdiction
which mayfunction ascourts oforiginal orappellate jurisdiction depending upon thegravity or
importance ofacaseassessed according torules ofcivilandcriminal procedure. LiketheSupreme
Court,theOblastCourtsarespecializedintoCollegiums.TheOblastCourts,moreover,exercisepowers
ofappellate review overthedecisions ofDistrict Courts. Unlike theSupreme andOblast Courts, the
District Courts areexclusively courts ofgeneral andoriginal jurisdiction andarenotorganized into
specialized Collegiums. Finally, theMilitary Courts arecourts oforiginal andspecialized jurisdiction.
While theRepublic ofKazakstan doesnothaveaConstitutional Court, perse,cases before
thecourts which giverisetoquestions challenging theconstitutionality oflawsorsub-law actsand
which appear toinfringe therights orliberties ofindividuals aresuspended andreviewed bythe
Constitutional Council. TheConstitutional Council maydeclare thelaworsub-law actunconstitutional,
rendering thatlaworsub-law actwithout legalforce andissuenormative resolutions which willthen
havetheforce oflaw.
2. Government Entities Responsible forMaking andImplementing Policies Affecting Foreign
Trade
TheGovernment isresponsible fordeveloping theRepublic ofKazakstan ’seconomic policy
including policy onforeign tradewhich isexpressed intheformofdraftlaws, resolutions anddirectives
preparedbyaGovernmentWorkingGroupordinarilycomprisedofmembersoftheMinistriesofJustice,
Economy, Trade andIndustry, theAntimonopoly Committee andother relevant ministries and
departments. Overall policy intheareaofforeign relations isoverseen bytheMinistry ofForeign
Affairs. TheGovernment ’sgeneral economic policy, including itsforeign economic policy, isdeveloped
andcoordinatedthroughtheMinistryoftheEconomy.ForeigneconomicpolicyconcerningCISmember
countries, however, iscoordinated through theCommittee forEconomic Cooperation withtheCIS.
TheMinistryofIndustryandTradeistheprincipalGovernmentalbodyresponsibleforgenerating
Statepolicyoninternationaltrade,includingproposalsoncustomsratesanddutieswhicharesubsequently
implemented bytheState Customs Committee; attraction andallocation offoreign investments;WT/ACC/KAZ/3
Page22
andpreparation ofproposals concerning settlement andcredit relations inthecontext ofinternational
agreements. TheMinistry ofIndustry andTrade alsoassumes responsibility forissuing import and
export licences. State finance policy, including currency control andcurrency aspects offoreign
economic relations, isdetermined bytheMinistry ofFinance. Administration ofcurrency control
iscarried outbytheNational Bank through theissuance oflicences toconduct currency transactions.
3. Division ofAuthority Between Central andSub-Central Governments
Thedevolution ofgovernmental authority fromcentral tosub-central unitsoccurs atseveral
tiersfromnational toOblast andfinally District withthecityofAlmaty occupying thestatus ofOblast
andothermajorcitiesthestatusofDistrict.Localgovernmentalpowerisdividedbetweenrepresentative
bodies called Maslikhats andlocalexecutives called Akims. EachOblast (including theCityofAlmaty)
hasanAkim (appointed bythePresident) andaMaslikhat. Each major cityhasanAkim appointed
byanOblast Akim. Thedeputies ofMaslikhats areelected tofour-year terms onthebasisofuniversal
andequal suffrage bysecret ballot.
Governmental powers affecting foreign trade aredevolved from national tolocalauthorities
inaccordance withthefollowing sixprinciples: (a)relative autonomy toregulate region-specific
economicrelations;(b)delineationofspecificjurisdictionalactivitiesinaccordancewiththeConstitution
andtheLawonLocal Representative andExecutive Bodies; (c)reciprocal obligations among the
different tiersofgovernment toconform business operations torequirements ofsocial, environmental
andmoral standards; (d)State support ofspecific sectors3andregions andthepromotion of
inter-relations among localauthorities, management bodies andbusiness bodies; (e)allocation ofbudget
resources andregional property within commercially sensitive margins; and(f)inter-governmental
relations which promote aunified approach toissues affecting, interalia,foreign trade.
4. AnyLegislative Programmes orPlans toChange theRegulatory Régime
Therecently adopted Constitution, approved bynational referendum on30August 1995, gives
priority tointernational treaties overlawswhere suchtreaties havebeenratified andareself-executing.
TheConstitution, moreover, requires allConstitutional Laws tobeenacted within oneyearandall
existing legislation tobebrought intoconformity within twoyears ofthedatetheConstitution was
approved. There arecurrently 2draftlawsbefore Parliament which impact foreign trade: copyright
lawandamendments toPresident decree OnLicensing.
TheGovernment ’scurrent legislative drafting agenda4forthenextthree years includes the
adoption ofnewlawsandthere-drafting oramendment ofexisting lawsasfollows:
(a) Agenda fordrafting newlaws:
- TheLawonIndividual Entrepreneurship;
- TheLawonNotaries;
- TheLawonGovernment Procurement;
- TheLawonAnti-Dumping;
- TheLawonDepository Activities;
3Seesection IV3(a)infra.
4Adopted byResolution No.56oftheGovernment dated 12January 1996.WT/ACC/KAZ/3
Page23
- TheLawonSelection Achievements;
- TheLawonExport Control;
- TheLawonJoint Stock Companies;
- TheLawonAdvertising;
- TheLawonPedigree, livestock breeding andPoultry;
- TheLawontheProtection ofComputer Programs;
- TheLawonSecret Inventions;
- TheLawonEcological Control;
- TheLawontheIssuance ofSovereign Guarantees;
- TheLawonState Control ofForeign Economic Activities;
- TheLawonForeign Credits;
- TheLawonPayments forUtilization ofBiological Resources;
- TheLawonBanking Guarantees;
- TheTrade SeaNavigation Code;
- TheCode onAutomobile Transport;
- TheCode onRailroad Transport;
- TheCode onRiver Transport;
- TheCode onSubsurface anditsUse;
- TheLawontheCommercial Utilization ofOuter Space; and
- TheLawonInvestments ofEntrepreneurial Agencies.
(b) Agenda forre-drafting existing laws:
- TheLawonDevelopment ofCompetition andtheRestriction of
Monopolistic Activities;
- TheCivil Code, PartII(theSpecific Part);5
- TheLabour Code;
- TheLawonConsumer Rights andProtection;
- TheLawonState Duties;
- TheCriminal Procedure Code;
- TheCriminal Code;
- TheLawonLocal Self-Government;
- TheLawonCurrency Regulation;
- TheLawonBankruptcy;
- TheLawonEmployment ofPopulation;
- TheCode onAdministrative Violations; and
- TheLawonStandardization andCertification.
(c) Agenda foramending existing laws:
- TheLawonMedical Insurance;
- TheLawonState Statistics;
- TheLawonState Registration ofLegal Entities;
- TheLawonOil;
- TheLawonPeasant Farms;
5Including thebasic legalrégime forintellectual property protection.WT/ACC/KAZ/3
Page24
- TheCurrent TaxLegislation6;and
- TheLawonProtection ofHistoric andArchitectural SitesofValue.
TheGovernment oftheRepublic ofKazakstan recently issued Resolution No.211of
19February1996requestingthatallministriesandStatecommitteessubmitproposalsregardingchanges
tothelegal environment andtheforeign trade régime toconform toWTO. Accordingly, the
aforementioned drafting agenda oftheGovernment willmostlikely bechanged during thepreparation
andsubmission ofthismemorandum.
5. Laws andLegal Acts
Alistoflawsandlegalactsaffecting economic activity ingeneral andforeign trade ingoods
andservices, isfound Annex 2attached hereto.
6. Description ofJudicial, Arbitral orAdministrative Tribunals orProcedures, IfAny
(a) Judicial procedures
Prior tojudicial adjudication, plaintiffs mustmake ademonstrable effort tovoluntarily settle
disputes. Upon rejection ofaplaintiff ’sclaim, orfailure bythedefendant toprovide atimely response
thereto, acaseconcerning an“economic matter ”maybefiledwiththeEconomic LawCollegium.
Judgments areexecuted onthebasis ofawritwhich isserved, together withthejudgment, bythe
Collegium. Theparties havearighttoappeal thejudgment provided apetition isfiledtotheEconomic
LawCollegium oftheSupreme Court within ten(10)daysofreceipt ofthewritofexecution. Filing
apetition forreview, however, doesnotsuspend execution ofjudgment.
(b) Arbitral procedures
Foreign investors arefreetonegotiate choice offorum clauses withtheirprivate counterparts
intheRepublic ofKazakstan. Where foreign arbitral panels areselected andthose panels render
decisions pursuant totheterms offorum selection clauses, judges intheRepublic ofKazakstan are
obliged torecognize andenforce those decisions inaccordance withtheRepublic ofKazakstan ’s
commitments asasignatory tothe1958 NewYork Convention ontheRecognition andEnforcement
ofForeign Arbitral Awards andthe1969 Vienna Convention onInternational Agreements. Where
disputes involve foreign investors andtheState, theparties thereto mayselect from among alistof
fiveinternational arbitration panels assetforthintheLawonForeign Investment. Foreign investors
involved indisputes withnatural orjuridical persons mayalsoselect from among existing oradhoc
arbitration panels intheRepublic ofKazakstan.
(c) Administrative procedures
Administrative decisions arerendered inaccordance withprinciples ofadministrative lawand
procedure assetforth intheCode onAdministrative Violations. Administrative decisions mayalso
bereviewed inthecourts oftheRepublic ofKazakstan.
6Concerning refinement ofsystem oflocal taxation, taxation ofpayments forspecial utilization
ofnatural resources, responsibilities oftaxandcustoms officials inthesphere oftaxcollection and
borrowers, banking clients anddepositors.WT/ACC/KAZ/3
Page25
IV. POLICIES AFFECTING TRADE INGOODS
1. Import Regulation
(a) Registration requirements forengaging inimporting
There arenoregistration requirements forengaging inimporting andallbusiness entities,
irrespective oftheirownership, mayengage inimporting.
(b) Characteristics ofthenational tariff andnomenclature
ThelegalframeworkforCustomsactivitiesintheRepublicofKazakstan(RK)consistsofseveral
separate butrelated lawsanddecrees. ThePresident ’sDecree of20July1995onCustoms Activities
intheRepublic ofKazakstan No.2368 anditsimplementing President Resolution No.2369 and
Government Resolution No.298of12March 1996 constitute thebasic lawoncustoms procedures,
régimes andformalities. Inaddition, theResolution onTariff Import Rates of15August 1995
(No.1125) anditsamendment of12March 1996(Decree No.300), theResolution onCustoms Tariff
Payments of7November 1995(No.1479) andtheResolution onApproval oftheCommodity Exchange
Listof28July1995(No.1035). Additional legislation thatimpact Customs activities maybefound
insection 1ofAnnex 2.
Thecurrent import tariff nomenclature isbased ontheCommodity ListofForeign Economic
Activity (CLFEC) andispatterned aftertheHarmonized System (HS)developed bytheWorld Customs
Organization (WCO). There are,however, some structural andcoding differences between thetariff
nomenclature ofKazakstan andtheHarmonized System. HS96changes havenotyetbeenincorporated.
Import duties arelevied on70-75 percentofthegoods imported intoKazakstan. There are
bothadvalorem andspecific ratesofdutyinthetariff. Thetrade weighted average tariff rateson
customs tariffgroupings areprovided inTable A1.35. In1995, revenue fromimport duties constituted
approximately 1.44percentoftotalgovernment revenue. There are97separate categories enumerated
inthetariff. Theoverall trade-weighted average import tariffrateisapproximately 12percentbased
on1995 import data. Thecurrent ratesofdutyonimports arepublished intheofficial press aswell
asinthemass media. Copies ofthecustoms tariff havebeentransmitted totheWTO Secretariat.
Thecustoms value ofimported goods isnormally thetransaction value onac.i.f. (cost,
insurance, freight) basisanditscalculation islargely based onthe1994WTO Agreement onValuation.
When thetransaction value ofgoods isinapplicable theother bases ofvaluation provided forinthe
WTO Agreement areapplied sequentially.
Goods produced inandimported fromdeveloping countries, withafewexceptions, aresubject
toadutyratewhich is50percentoftheMFN ratewhile goods produced inandimported fromleast
developed countries, withafewexceptions, arefreeofduty. Alistofthese countries isprovided
insection EofAnnex 8.
(c) Tariff quotas andtariff exemptions
There arenotariff quotas. There aretariff exemptions foranumber ofgoods setoutinthe
Customs Code, mostly Chapter 22,including thefollowing:
- goods imported temporarily andretained under Customs control onthebasis ofoneormore
customs procedures;
- goods imported aspartofthecharter fundofcompanies withforeign interest;
- goods imported bytheNational Bankaswellascurrency (other thannumismatic) andsecurities;
- goods declared atimportation tobeforre-exportation;WT/ACC/KAZ/3
Page26
- goods originating intheleastdeveloped countries;
- goods re-imported within 3years aftertheirexportation;
- goods sodamaged prior totheirCustoms clearance astobeunsuitable foruse;
- goods imported ashumanitarian aidincluding teachers ’manuals forfreeeducational, pre-school
andmedical establishments;
- goodsimportedasgratuitousassistanceand/orcharityundertheauspicesofStates,governments,
international organizations, including goods fortechnical assistance;
- goods from thecountries forming aCustoms Union withKazakstan;
- goodsfromcountrieswithwhichKazakstanhasbilateralfreetradeagreementsinforce,currently
Kyrgyzstan andMoldova, withcertain exceptions (cf.section VII.2) goods intransit;
- vehicles engaged ininternational trade;
- goods forofficial andprivate useofforeign government representatives; and
- goods imported orexported onatemporary basisaccording toGovernment Resolution No.342
of25March 1996.
(d) Other duties andcharges, specifying anycharges forservices rendered
Anumber ofother duties andcharges arelevied onimports including: customs processing
feeandother customs services; value added tax;excise tax;anddumping, seasonal, compensatory
andspecial-purpose duties
Customs processing feesandother customs services
InadditiontocustomsdutyandinaccordancewithArticle118oftheCustomsCode,animporter
mustpayacustoms processing feewhich currently amounts to0.2percentofthetotalCustoms value
ofthegoods. Thisfeegoesintotheincome oftheRepublic Budget (Customs procedures). Other
feesconnected withservices rendered bytheCustoms aredescribed inTable 4.1below.
Table 4.1-Customs levies andfeesforcustoms services
Type ofpayment Rateforservices rendered in%ofcustoms
value orinECU
Customs levies forcustoms processing of
goods transferred through thecustoms
boundary bylegalandnatural persons0.2%
Forcustoms processing ofvehicles transferred
bynatural persons15ECU perunit
Customs levies forcustoms processing of
goods andvehicles outside designated areas
andoutside working hours ofcustoms bodies.levied indouble
Customs levies forstorage ofgoods in
warehouses established bycustoms bodies for
temporary storage0.04ECU
per1kggross perday
Forstorage ofvehicles transferred asgoods 3ECU perunitperday
Customs levies forstorage ofgoods incustoms
warehouses established bycustoms bodies0.02ECU
per1kggross perday
inspecial adapted premises (with useof
specific equipment, establishing special
temperature régime etc.)0.03ECU
per1kggross perdayWT/ACC/KAZ/3
Page27
Type ofpayment Rateforservices rendered in%ofcustoms
value orinECU
Customs levies forcustoms ’accompanying
goods within thezoneofactivities ofcustoms
administration100ECU
Outside thezoneofactivities ofcustoms
administration 200ECU
Payment forinformation andConsultancy 5ECU
Value Added Tax(VAT)
Mostgoods imported intoKazakstan are,pursuant toGovernment Resolution No.2235, subject
toaValue Added Taxintheamount of20percent, thesame asisapplied todomestic goods. The
VAT iscomputed asfollows:
(a) goods subject tocustoms duties andexcise taxes: T=(V+L+D+E) X20%;
(b) goods subject tocustoms duties butnotexcise taxes: T=(V+L+D) X20%; or
(c) goods subject toneither customs duties norexcise taxes: T=(V+L) X20%.
(where T=VAT; V=Customs Value; L=Customs Levies; D=Customs Duties; andE=Excise
Taxes)
Thefollowing imported goods areexempt from VAT:
- goods necessary fortheoperation ofvehicles usedininternational transportation and/or acquired
abroad inconnection withemergency repairs;
- goods damaged beyond useprior totheirimportation;
- goods imported ashumanitarian aid;
- goods imported forcharitable purposes including theprovision oftechnical assistance from
State, governments andinternational agencies;
- confiscated, ownerless andescheated items;
- goods imported forofficial andpersonal usebyforeign diplomatic andsimilar representative
offices;
- national aswellasforeign currency (other thannumismatic) andsecurities;
- goods purchased atbudget expenses andimported byorganizations supported attheexpenses
ofState budget aswellasgoods imported under foreign credit linesthatareguaranteed by
theState;
- goods imported bynatural persons according totherateoffreedutyimport stipulated bythe
Government; goods imported orexported onatemporary basis according toGovernment
Resolution No.342of25March 1996; and
- goodsoriginatedinandimportedfromCIScountries(CustomsCommitteeInstructionNo.131-P
of29September 1995 OnOrder ofapplication ofVAT andExcise related togoods imported
totheterritory oftheRepublic ofKazakstan).
Excise taxes
TheTaxCode liststhegoods thataresubject toexcise tax. Thefollowing Government
Resolutions specify thevarious ratesforexcise taxes:WT/ACC/KAZ/3
Page28
- Government Resolution No.960of13July1995, asamended byGovernment Resolution
No.1397of30October 1995andGovernment Resolution No.341of25March 1996, specifies
excise taxratesforimported goods.
- Government Resolution No.974of14July1995, asamended byGovernment Resolution
No.1487of8November1995andGovernmentResolutionNo.341of25March1996,specifies
excise taxratesforgoods produced inKazakstan.
- Government Resolution No.1439 of2November 1995 specifies excise rates forimported
automobiles andlorries.
- Excise taxesforgoods 1-11listed inTable 4.2arecomputed bysimply multiplying thequantity
bytheapplicable rate. Forgoods 12-22, excise taxesarecomputed onthebasisofthecustoms
value.
Exempt from excise taxes arethefollowing:
- goods imported orexported onatemporary basisaccording toGovernment Resolution No.342
of25March 1996.
- goods originated inandimported from CIScountries (seeVAT above)
- allalcohol intended foruseinproduction ofliqueurs, vodka products, fortified drinks andjuice,
wineandbalsam provided thatitispurchased byalicensed producer.
Other duties andfees
Inaddition, according toArticles 109,113,114,115,116,119and120oftheCustoms Code,
thefollowing duties and/or feesmaybepayable:
- seasonal duties when effective;
- anti-dumping duties when ineffect (cf.IV.1(m) below formore details);
- countervailing duties (compensatory duties) when ineffect (cf.IV.1(n) below formoredetails);
- safeguard (special-purpose duties) when ineffect (cf.IV.1(o) below formore details); and
- special feesforstorage, transport under Customs control, issuance ofcustoms licences (e.g.
dutyfreeshops), issuance ofqualification certificates, preliminary decisions andparticipating
inCustoms auctions.
Table 4.2-Goods subject toExcise Tax
Goods Subject toExcise Tax Domestic Rates Import Rates
Allalcohol 3.5ECU/L 3.5ECU/L
Liqueurs andvodka products 0.6ECU/L 3.0ECU/L
Vodka 0.7ECU/L 3.0ECU/L
Fortified drinks, juices andbalsam 0.6ECU/L 3.0ECU/L
Wine 0.3ECU/L 0.8ECU/L
FineWine 0.15ECU/L 0.8ECU/LWT/ACC/KAZ/3
Page29
Goods Subject toExcise Tax Domestic Rates Import Rates
Cognac 0.3ECU/L 3.0ECU/L
Champagne 0.3ECU/L 0.8ECU/L
Beer 0.05ECU/L 0.2ECU/L
Wine-making ingredients 0.1ECU/L 0.1ECU/L
Tobacco products andother products containing
tobacco0.75ECU per1000
units2.0ECU per
1000 units
Sturgeon andsalmon, theirroeanddelicacies made
therefrom100% 100%
Gold, platinum orsilver jewellery 40% 40%
Cured andnon-cured furskins (except mole, rabbit,
dog,deer, sheep skins)20% 50%
Cured andnon-cured furskins ofKarakul 7% 50%
Wearing apparel made ofKarakul 10% 50%
Coats, short coats, jackets andmantles with
decoration made from Karakul10% 50%
Wearing apparel made ofnatural fur(except mole,
rabbit, dog,deer, sheep)50% 50%
Overcoats, short coats, jackets andmantles with
decoration made from fur(except mole, rabbit, dog,
deer, sheep)50% 50%
Clothing made ofnatural leather 50% 50%
Objects made ofcrystal, including lighting
appliances50% 50%
Diesel fuel 5% 5%
Gasoline (other thanaviation gasoline) 20% 20%
Passenger automobiles N/A 10-25%
Lorries withacarrying capacity under 1.25tonne N/A 15%
Firearms andgasweapons (other thanthose forthe
needs ofState agencies)40% 40%
(e) Quantitative import restrictions, including prohibitions, quotas andlicensing systems
Pursuant toArticle 20oftheCustoms Code, quantitative import restrictions maybeestablished
intheinterest ofnational security; ethics; health (human, animal andplant); theenvironment; art,
history andarchaeology; protecting therights ofconsumers andprotecting ownership rights suchas
intellectual property.
Currently, Kazakstan doesnothaveanyimport quotas. Import licences arerequired forthe
importation ofcertain goods assetoutinIV.1(f) below.
(f) Import licensing procedures
Certaingoodssuchaspharmaceuticalsandmedicalequipment;opium,narcoticsandpsychotropic
agents; enciphering devices andinstructive andtechnical documentation relating thereto; explosivesWT/ACC/KAZ/3
Page30
andexplosive devices; service andcivilarmaments andinstructive documentation relating tomilitary
products andindustrial waste require alicence issued bytheMinistry ofIndustry andTrade afterprior
approval ofother concerned body ofthegovernment (cf.Table A3.1). Licence forother goods such
asarms, military equipment andnuclear materials isissued bytheMinistry ofIndustry andTrade after
permission ofthegovernment isgranted.
SeeAnnex 3foradetailed description ofthelicensing system ineffect inKazakstan. Table A3.1
liststhegoods thatrequire import licence andTable A3.2 liststhegoods thatneedpermission ofthe
government forimport. Exhibit A3.1 illustrates theimport licensing application.
(g) Other border measures, e.g.,anyother schemes thathaveborder effects similar tothose
ofthemeasures listed under (e)above
There arenoother border measures witheffects similar tothose listed under (e)above.
(h) Customs valuation
Thecustoms valuation system provided forinChapter 20theCustoms Code ofKazakstan is
based onandislargely incompliance with, theWTO Customs Valuation Agreement. Transaction
value isusedastheprimary basis ofvaluation bycustoms although thismaynotalways bethecase
when thecustoms valuation isreported bytheSociete Generale deSurveillance (SGS) who,bycontract,
provides valuation information onimports valued overUS$3,000 which arenotfrom other CIS
countries. (cf.IV.1(i)). Also, seeAnnex 4foradetailed description ofthevaluation system of
Kazakstan.
(i) Other customs formalities
Thecustoms formalities required byKazakstan lawarebased onthose procedures setoutin
theInternational Convention ontheSimplification andHarmonization ofCustoms Procedures (Kyoto
Convention) authored bytheWorld Customs Organization (WCO). These include completing a
declaration, submitting acopyofthecontract andanynecessary licences, permits orcertificates, where
necessary areport offindings from SGSandpaying ofallapplicable duties andtaxes before release
ofthegoods.
(j) Pre-shipment inspection
TheGovernment ofKazakstan entered intoathreeyearagreement, effective 1January 1996,
withSociete Generale deSurveillance S.A.toprovide pre-shipment inspection ofgoods, other than
those from CIScountries andgoods which arevalued atnotmore thanUS$3,000. Objects ofart,
precious stones andmetals, weapons, explosives, nuclear materials, liveanimals, humanitarian aid,
newspapers andperiodicals, household andpersonal effects, giftsandparcel postgoods arealsoexempt
from PSI.
(k) Application ofinternal taxes onimports
Theonlyinternal taxes which apply toimported goods aretheValue Added Tax(VAT) and
theexcise taxmentioned in(d)above. Bothapply todomestic products aswellastoimported goods.WT/ACC/KAZ/3
Page31
(l) Rules oforigin
Thecountry oforigin ofallgoods istobedetermined fortariffandnon-tariff purposes inrespect
ofbothimported andexported goods. Thesystem inuseisthatdeveloped bytheWorld Customs
Organization andfound intheirKyoto Convention andsetoutinChapter 21oftheCustoms Code
ofKazakstan.
Therules contemplate twodifferent albeit basic criteria: thatofgoods wholly produced in
agiven country where onlyonecountry enters intoconsideration inattributing origin andthatofgoods
having beensubstantially transformed where twoormore countries havetaken partintheproduction
ofthegoods. The“wholly produced ”criterion applies mainly tonatural products suchasliveanimals,
minerals, fruits, etc.whereas thesubstantial transformation criterion applies togoods which have
undergone processing intwoormore countries. Inthelatter case, various testssuchaschange in
tariff heading, value added, oralistofmanufacturing processes maybeusedtodetermine whether
asubstantial transformation hastaken place. Agroup ofcountries maybeconsidered asonecountry
fororigin purposes.
(m) Anti-dumping régime
Article 115oftheCustoms Code ofKazakstan provides fortheimposition ofanti-dumping
duties ifgoods areimported intoKazakstan atprices lower thantheirregular prices inthecountry
ofexportation atthemoment ofexport andifsuchimports inflict orthreaten toinflict damage to
domestic manufacturers ofsimilar ordirectly competing goods. Theratesoftheduties areestablished
bytheGovernment afterconsideration ofeachindividual caseandtheamount mustbeinproportion
tothedegree oftheestimated damage. Anydecision mustbeeconomically founded. Further procedural
rulesandimplementing regulations willbeelaborated andtheimposition ofanti-dumping duties will
beinfullcompliance withtherules oftheWTO.
Kazakstan hassofarnotimposed anti-dumping duties.
(n) Countervailing dutyrégime
Article 116oftheCustoms Code stipulates thatcountervailing duties areapplied ifimported
goods, themanufacture orexport ofwhich hasbeendirectly orindirectly subsidized, inflict orthreaten
toinflict damage toKazakstan manufacturers orimpedes theorganization orexpansion oftheproduction
ofsimilar products. Theprocedural rulesinrespect tocountervailing duties aswellashowsubsidization
willbedefined andcalculated andduties imposed willbeelaborated inaccordance withWTO rules.
Countervailing duties havenotbeenusedsofar.
(o) Safeguard régime
Article 114oftheCustoms Code provides fortheimposition ofSpecial-Purpose Custom duties
asaprotection remedy ifgoods areimported intoKazakstan insuchquantities oronsuchterms that
theyinflict orthreaten toinflict damage todomestic manufacturers. Procedural ruleswillbeelaborated
inaccordance withWTO rules.
2. Export Regulation
(a) Registration requirements forengaging inexporting
There arenoregistration requirements forindividuals orcompanies toengage inexporting.WT/ACC/KAZ/3
Page32
(b) Customs tariff nomenclature, types ofduties, dutyrates, weighted averages ofdutyrates
Government Resolution No.810of28June1996eliminated export duties forallexported goods
except Wheat other thanDurum Wheat 100190. Thedutyrateis7percentuntil1August 1996.
VAT doesnotapply toexport except forCIScountries.
(c) Quantitative export restrictions, including prohibitions, quotas andlicensing systems
Exportquotasapplyonlyforexportoftextiles(cf.sectionIV.5(a))andoilexport(duetopipeline
capacity). Alimited number ofproducts aresubject toexport licensing andthisiscovered inmore
detail inIV.2(d) below.
According toAnnex 6toGovernment Resolution 298,thefollowing products mayonlybe
exported withthepermission oftheappropriate Ministry:
- weapons ofanytype, ammunition therefor andmilitary outfits -withthepermission ofthe
Ministry ofDefence, theNational Securities Committee andtheMinistry oftheInterior;
- objects ofart,antiques andother articles having major artistic, scientific andcultural value
-withpermission oftheMinistry ofCulture andsubject toanexport dutyof100percent.
Inaddition, theLawOnExport Control ofArmaments, Military Technology andProducts
ofDouble Application, dated 18June1996, establishes alicensing régime forexporting armaments,
military technology andproducts ofdouble application (defined asincluding massdestruction weapons)
andincircumstances covered byArticle XXIofGATT.
(d) Export licensing procedures
While thenumber ofproducts requiring export licences hasdecreased significantly during the
pastyear, export licences arerequired forcertain animal products; pharmaceutical rawmaterials of
vegetable andanimal origin; pharmaceuticals andmedical equipment; pharmaceuticals forveterinary
purposes andveterinary equipment; certain geological andmineralogical information; certain types
ofrawmaterials, consumables, equipment, technologies andscientific research information which may
beusedincreating armaments andcombat equipment; materials, equipment andtechnologies which
havepeaceful application butmaybeusedforcreating rockets, nuclear, chemical andother types of
massdestruction weapons; enciphering devices (including components forenciphering equipment and
softwareforenciphering)instructivedocumentationtoencipheringequipment(includingthoseconcerning
design andoperation); powder, explosives, explosive devices andpyrotechnics; andcertain narcotic
andpsychotropic agents andvenoms.
InaccordancewithResolution298theMinistryofIndustryandTradehasprimaryresponsibility
fortheissuance oflicences; however, theMinistry primarily concerned withthegoods inquestions
mustapprove theissuance ofthelicence, e.g.theMinistry ofHealth Protection forpharmaceuticals.
SeeTable A9.1 foracomplete listing ofgoods requiring anexport licence.
Anyone wishing toexport goods mustapply totheMinistry ofIndustry andTrade foranexport
licence andsubmit thecontract concerning thegoods tobeexported. Ifthenecessary information
hasbeensubmitted, adecision willbetaken within 10daysoftheapplication. Thelicence willbe
valid fortheperiod oftimenecessary tocomplete theexportation process butnotlonger thanone
calendar year. Ifjustified, thetermofanexport licence maybeextended ifjustified. IfarequestWT/ACC/KAZ/3
Page33
foranexport licence isdenied itmust beforjustreason andtheapplicant isnotified ofthereason
inwriting ifhesorequests.
Theapplication forexport licence issimilar totheimport licence application provided in
Exhibit A3.1.
Certain goods suchasarms, military equipment andnuclear materials require permission from
thegovernment asacondition toapply foranexport licence. Alistofthese products isprovided in
Table A9.2.
(e) Other measures, e.g.minimum export prices, voluntary export restrictions, orderly
marketing arrangements
Export contracts forcertain categories ofproducts must beregistered attheCommodity
Exchanges. Approximately 26percentoftotalvalue ofexport (based on1995export data)issubject
tocontract registration. Government Resolution No.1035 dated 28July1995 anditsamendment
Government Resolution No.304dated 13March 1996 specify thelistofexports subject tocontract
registration atthecommodity exchanges. There areminimum export prices oncertain basicproducts.
Table A9.3 provides thelistofproducts subject tocontract registration. Table A9.4 provides thefee
schedule forregistering contracts attheCommodity Exchanges.
There arenovoluntary export restrictions ororderly marketing arrangements ineffect in
Kazakstan.
(f) Export financing, subsidy andpromotion policies
Kazakstan doesnotsponsor orfinance enterprises, regardless oftheirform ofownership, to
participate intrade shows. Inaddition, thegovernment doesnotorganize orfinance anytrade shows
oradvertising aimed atpromoting products made inKazakstan.
Starting in1996, thegovernment plans toprovide preferential credits tosmall andmedium
sizeindustrial enterprises focusing onexport orimport substitution (cf.section IV.3(a)).
On26January 1996, thePresident issued aDecree establishing thelegalframework forfree
economic zones withthegoalofcreating efficient export production (cf.section IV.3(g))
(g) Export performance requirements
There arenoexport performance requirements imposed bythegovernment onenterprises
including trade balancing requirements andexport requirements.
(h) Import dutydrawback schemes
Provision ismade intheCustoms Code, Chapter 15,fordrawback ongoods imported into
Kazakstan andre-exported withnochange incondition. When goods areimported theymustbedeclared
forre-export andtheyareexempted frompayment ofimport duties andtaxes. They mustbeexported
inthesame condition asimported andwithin sixmonths oftheirimportation. Otherwise, theyare
liable tofullduties andtaxes plusinterest.WT/ACC/KAZ/3
Page34
Inthecaseofthere-exportation ofgoods onwhich duties andtaxeshavebeenpaid, theduties
andtaxes mayberefunded ifthegoods areinthesame condition aswhen imported, theyhavenot
beenusedforprofit purposes andtheyarere-exported within twoyears oftheirimportation.
Provision ismade intheCustoms Code, Chapter 9,fortherefund ofcustoms duties andtaxes
ongoods which havebeenimported, subjected toprocessing andthenre-exported. Thegoods must
bedeclared forprocessing atthetimeofimportation andapermit obtained fromcustoms toundertake
theprocessing. Goods maybeusedformanufacturing; installation, assembly andadjustment toother
goods; processing andtreatment; repair, including replacement; andutilization ofcertain goods
inproduction ormanufacture evenwhere suchgoods arefullyorpartially consumed. Theprocessing
ofgoods must becompleted within timelimits setbythecustoms which takeintoaccount thetime
requirements forre-processing andexport ofthegoods. Goods which havebeenprocessed inaccordance
withtherequirements oftheCustoms Code shallbeentitled toarefund ofCustoms duties andtaxes
ifthegoods arere-exported within twoyears oftheirimportation. Theforeign components ofsuch
processed andre-exported goods shallbeexempt from customs export duties.
3. Internal Policy Affecting Foreign Ttrade inGoods
(a) Industrial policy, including subsidy policies
Theindustrial policy ofKazakstan istomodernize itsindustrial base, increase industrial output
andestablish aneffective industrial structure through attracting localandforeign investment toallsectors
andprivatizing theindustry (cf.section II.2(a) andsection II.2(d))
Kazakstan maintains domestic agricultural andnon-agricultural subsidies.
Agricultural subsidies
Tables ondomestic subsidies inagriculture areprovided inAnnex 11.
TheGovernmentgrantsagriculturalsubsidiestosupportsmallandmediumsizeStateandprivate
enterprises. In1995, thetotalagricultural subsidies wasapproximately US$878million andconstituted
approximately 5.4percentofGDP. TheGovernment provided domestic subsidies mainly inthe
following forms:
- subsidies through theAgricultural Support Fund intheamount ofUS$56million;
- credits through theExIm Bank ofKazakstan intheamount ofUS$1.1million;
- loanguarantees issued in1995 intheamount ofUS$133million; and
- rescheduling ofarrears US$525.6 million.
Other agricultural subsidies include preferential tariffratesforrailroad transport ofagriculture
andfoodproducts produced locally (70percentofregular rates). Inaddition, Article 30ofthetax
codeprovides preferential taxratesforincome derived from activities where landisthemain mean
ofproduction (e.g.agriculture) 10percentvs.30percentfornon-agriculture.
Non-agricultural subsidies
Table 4.3summarizes industrial subsidies for1995 and1996 (planned).
TheGovernment provides specific non-actionable subsidies, intheformofaid,tocertain oblasts
which aredisadvantaged. TheOblast Administration hasdiscretion indistributing thesefunds internallyWT/ACC/KAZ/3
Page35
within theoblast. Thetotalamount for1995wasapproximately US$325million. For1996, thetotal
planned aidtoregions bytheGovernment isapproximately US$308million.
Other non-agricultural subsidies include preferential rates forrailroad transport ofcoal
(50percentofregular rates).
Table 4.3-Industrial Subsidies for1995 and1996 (millionUS$)
Types 1995 1996
I. Non-specific subsidies
1. Preferential internal credits viaExIm Bank 131.90 117.70
2. Preferential internal credits viaRehabilitation Bank 93.95 93.75
3. Government guarantees onexternal loans 500.00 250.00
Total 725.85 461.45
II. Specific subsidies
Actionable subsidies
1. Taxdeferments 92.00 200.00
2. Forgiven debts 0.36 0.40
3. Deferred debts 67.79 200.00
Total 160.15 400.40
Export subsidies
1. Preferential credits directed tosupport ofexport andimport
substitution0.00 50.00
Total 0.00 50.00
Grand Total 886.00 911.85
Share ofTotal Subsidies inPercent ofGDP (1995) 5.40% 5.60%
Share ofActionable Subsidies inIndustrial Production (1995) 4.51% 11.27
%
Share ofActionable &Export Subsidies inIndustrial Production (1995) 4.51% 12.67
%
Share ofExport Subsidies inIndustrial Production (1995) 0.00% 1.41%
(b) Technical regulations andstandards, including measures taken attheborder withrespect
toimports
Standards andcertification inKazakstan arenotintended toestablish technical barriers totrade
ortodisrupt trade. Themain goals aretoensure safety, health, protection oftheproperty ofcitizens
andprotection oftheenvironment. Foreign goods, regardless ofthecountry oforigin anddomestic
goods havetocomply withthesame standards andcertification requirements without anyexception.
Annex 5summarizes thelegislation andprocedures related tostandards andcertification. GosStandard
isresponsible foradministering andenforcing thelawOnStandardization andCertification, dated
18January 1993.WT/ACC/KAZ/3
Page36
Government Resolution No.411of20May1993 lists24product categories thatrequire
certification prior tosale,regardless whether these products areimported ordomestically produced.
Thelistisprovided inAnnex 5andcovers allproducts thatrequire certification forsafety, sanitary
andenvironmental reasons. Inrespect tohealth, sanitary/hygiene testresults areusedasthebasisfor
granting thecertificate ofconformity.
Asof1January 1996, thereare27certification bodies and175testing laboratories inKazakstan.
Thirteen regional bodies ofGosStandard arealsoaccredited forcertification. Kazakstan honours
certificatesprovidedbyStatecertificationbodiesofArmenia,Azerbaijan,Belarus,Georgia,Kyrgyzstan,
Moldova, theRussian Federation, Tajikistan, Turkmenistan andUzbekistan. Inaddition, there are
fiveforeign companies accredited byGosStandard toissue certificates: GasdeFrance, France;
MertControl, Hungary; Societe Generale deSurveillance (SGS), Switzerland; TUFRheinland Holding
AG,Germany; andTurkish Institute ofStandards, Turkey. Anyforeign ordomestic certification
body mayapply toGosStandard foraccreditation toissue certificates. Therequirements andthe
procedures arethesame fordomestic andforeign certification bodies.
TheGovernment ofKazakstan plans toharmonize withinternational standards. Kazakstan
isamember ofInternational Organization forStandardization (ISO) andInternational Organization
forLegal Metrology. Kazakstan hasalsoadopted over130International Electrotechnical Commission
(IEC) standards. TheGovernment ofKazakstan iscurrently intheprocess ofnegotiating agreements
onstandards withChina, Turkey andtheUnited States.
Measures taken attheborder withrespect toanimported goodthatmustcorrespond tostandards
aredescribed inAnnex 5andarebased onOrder ofCustoms Control overProducts Subject to
Compulsory Certification andGovernment Resolution No.1891 of29December 1995.
(c) Sanitary andphytosanitary measures, including measures taken withrespect toimports
Sanitary standards aredeveloped forthepurpose ofprotecting human, animal, orplant life
orhealthandarenotdevelopedforpurposesofdiscriminationorprotectionofdomesticmarket.Sanitary
standards aredeveloped bytechnical committees including theMinistry ofHealth Protection. The
concurrence oftheMinistry ofHealth Protection isrequired before GosStandard adopts standards related
tosanitary matters.
Goods which arehazardous tohealth mustmeetKazakstan ’sstandards. Government Resolution
No.411,dated 20May 1993, provides alistofallproduct categories (seeAnnex 5)subject to
compulsory certification toensure safety, health, protection ofproperty ofcitizens andtheenvironment.
Product categories ofsanitary concerns areincluded inthislist.Hygiene conclusion isoneofthe
requisites forobtaining thecertificate forproducts requiring sanitary certification. Certificate of
conformity maybegranted byanyofthedomestic andforeign certificate bodies listed under IV.3(b).
accredited according tolegislation described inAnnex 5.
Measures taken withrespect toimports arethesame asdescribed under section IV.3(b), with
onlyoneexception. Notwithstanding certification, theCustoms must inform thebodies ofState
sanitary-epidemiological supervision toensure thattheshipment orproduct passsanitary testswhere
acontainer orpackaging isdamaged. Iftheproduct doesnotpasssanitary tests, thenitisnotcleared
through customs andactions aretaken according toGovernment Resolution No.1891 described in
Annex 5.WT/ACC/KAZ/3
Page37
(d) Trade-related investment measures
Kazakstan doesnothaveanyTrade-Related Investment Measures (TRIMs) anddoesnotimpose
localcontent requirements and/or tradebalancing requirements except intheoilandsubsurface sectors
TheLawonOilandtheLawonSubsurfaceUtilizationrequireinvestorstogivepreferencestoKazakstani
goods andequipment iftheyarecompetitive interms ofecological andtechnological characteristics,
price, operating parameters andsupply conditions.
(e) State-trading practices
Kazakstan doesnotmaintain enterprises covered bytheprovisions ofArticle XVII andthe
understanding ontheinterpretation ofArticle XVII ofGATT 1994. TheGovernment ofKazakstan
doesnotgrant toanyprivate orStateenterprise, including marketing boards, exclusive orspecial rights
orprivileges,includingstatutoryorconstitutionalpowers,intheexerciseofwhichtheyinfluencethrough
theirpurchases orsalesthelevelordirection ofimports orexports. Stateandprivate tradeenterprises
operate inanon-discriminatory andcompetitive market environment. There arenoimport orexport
companies thathaveexclusive rights, except companies, authorized bytheGovernment totrade in
militaryandnuclearrelatedmaterialsandpreciousmetals,theactivitiesofwhichfallundertheexceptions
ofArticle XXIandXXofGATT 1994.
Inaddition, theLawonDevelopment ofCompetition andRestriction ofMonopolistic Activity
(Articles 6and8),adopted 11June1991, prohibits State andadministrative bodies from restricting
competition inthemarket.
Licences arerequired fortheimport andexport ofalimited setofproducts (cf.section IV.1(f)
andIV.2(d)). Anyeconomic entity mayapply toobtain these licences.
(f) Freezones
Chapter12oftheCustomsCode,datedJuly20,1995,FreeCustomsZonesandFreeWarehouses
envisages thecreation offreecustoms zones andfreewarehouses within which anycommercial
operations, except retail trade, maybeconducted. Thisincludes thetransshipment ofgoods. There
isnotanylimitation ontheperiod forwhich goods maystayinthefreecustoms zones andfree
warehouses.Entitiesconductinganytypeofcommercialactivities,includingproduction,infreecustoms
zones andfreewarehouses must keeprecords ofallcommercial transactions tobepresented tothe
central bodyoftheCustoms Committee. TheCustoms Committee regulates andsupervises theactivities
offreecustoms zones andfreewarehouses.
Theterritories offreecustoms zones andwarehouses meetinternational requirements interms
oftheircustoms régime andthezones andwarehouses aretreated aslocated outside thecustoms territory
ofKazakstan.
FreecustomszonesareestablishedandabolishedbyGovernmentresolutionsandareadministered
bytheCustomsCommitteeoftheRepublicofKazakstan.Freewarehousesareestablishedafterobtaining
alicence from thecentral body oftheCustoms Committee.
OnlyKazakstani legalentities andnatural persons havetherighttoestablish freewarehouses.
Kazakstani legalentities maybefullyorpartially foreign-owned. TheNational treatment stipulated
under article 4.1oftheforeign investment lawapplies under thiscondition.
Currently, there arenofreecustoms zones orfreewarehouses inKazakstan.WT/ACC/KAZ/3
Page38
(g) Freeeconomic zones
There aretwolegaltextsdealing withfreeeconomic zones:
- Chapter 12oftheCustoms Code ofJuly20,1995, FreeCustoms Zones andFreeWarehouses
- Decree ofthePresident OnSpecial Economic Zones intheRepublic ofKazakstan, of
26January 1996
Chapter 12oftheCustoms Code envisages thecreation offreecustoms zones andfree
warehouses inKazakstan. Insuchzones andwarehouses, allkinds ofcommercial operations, including
production, arepermitted withexception ofretail trade. Regulations offreecustoms zones and
warehouses isdescribed insection IV.3(f) above.
TheDecree ofthePresident onSpecial Economic Zones stipulates thatspecial economic zones
areestablished inorder toaccelerate theeconomic development andintegration intotheworld economy
ofcertain regions ofthecountry. Thisshould beachieved, interalia,through thecreation ofhighly
efficient export oriented production, theattraction ofinvestments andtheintroduction ofmodern
management methods andsocial norms.
Special economic zones areestablished foraspecific period oftimebyPresidential Decree
andmaybeabolished prematurely byPresidential Decree iftheydonotachieve thepurpose forwhich
theywereestablished. TheChairman oftheAdministrative Council oftheEconomic zones isappointed
anddismissed bythePresident. Theadministrative authority inthespecial economic zones enjoys
considerable degree ofautonomy andisfinanced bytaxes andfeespaidbylegalentities andnatural
persons registered intheterritory ofthespecial economic zone.
Incaseofchanges inthelegalrégime ofthespecial economic zoneorpremature abolishment
ofthespecial economic zone, entities conducting investment activities intheeconomic zonehavethe
righttocontinue conducting suchactivities under conditions atthemoment ofinitiation ofinvestment
anduntilthetermination oftheperiod ofthespecial economic zone(butnolonger than10years from
thetimeofchanges orabolishment ofthespecial economic zone).
Thespecial economic zones aretreated asbeing outside thecustoms territories ofKazakstan.
However,legalentitiesinthespecialeconomiczonesaresubjecttothetaxation,registrationandlicensing
legislation oftheRepublic ofKazakstan. Banking activities mayalsobecarried outinspecial economic
zones according tothebanking legislation ofKazakstan.
Kazakstani legalentities andnatural persons havetherighttoregister inthespecial economic
zones. Kazakstani legal entities maybefully orpartially foreign-owned. TheNational treatment
guarantee stipulated inArticle 4.1oftheForeign Investment Lawapplies under thiscondition. Foreign
investment inspecial economic zones isgoverned bytheforeign investment lawofKazakstan. The
lawOnSpecial Economic Zones envisages theadmission offoreign citizens intothespecial economic
zones.
Currently, there arenofreeeconomic zones inKazakstan.
(h) Trade-related environmental policies
There arenoproducts prohibited fromimport intoKazakstan because ofenvironmental reasons.
Licences, however, mustbeobtained from theMinistry ofIndustry andTrade, afterconcurrence of
theMinistry ofEcology andBio-Resources, forthepurpose ofimport andexport ofseveral goodsWT/ACC/KAZ/3
Page39
(c.f.Table A3.1 andTable A9.1). Inaddition, Government permission isneeded fortheimport and
export ofnuclear materials, technologies, equipment andinstallations, special non-nuclear materials,
sources ofradioactive radiation including radioactive waste
According totheLawonProtection ofEnvironment andGovernment Resolution No.637of
25October 1991, newtechnical devices, technologies, materials andsubstances maynotbeimported
toorproduced intheterritory ofKazakstan forthefirsttimewithout positive conclusion oftheState
ecological expertise conducted bytheMinistry ofEcology andBio-Resources. Theapplicant must
submit documents indicating thepotential impact onenvironment.
Environmental standards aredeveloped forthepurpose ofprotecting theenvironment andare
notdeveloped forthepurpose ofdiscrimination orprotection ofdomestic market. They aredeveloped
bytechnical committees including theMinistry ofEcology andBio-Resources. Concurrence ofthe
Ministry ofEcology andBio-Resources isrequired before theyareadopted byGosStandard.
Goods which arehazardous totheenvironment mustmeetKazakstan ’sstandards. Government
Resolution No.411provides alistofallproduct categories (seeAnnex 5)subject tocompulsory
certification toensure safety, health, protection ofproperty ofcitizens andtheenvironment. Product
categories ofenvironmental concerns areincluded inthislist.Certificates ofconformity maybegranted
byanyofthedomestic andforeign certification bodies listed under IV.3(b). Measures taken withrespect
toimports arethesame asdescribed under section IV.3(b).
(i) Mixing regulations
There arenomixing regulations. Kazakstan doesnotrequire localcontent forgoods produced
locally. However, seesection IV.3(d) above.
(j) Government-mandated counter-trade andbarter
TheGovernmentofKazakstandoesnotmandatecounter-tradeandbarter.Governmentresolution
No.948dated17July1995andGovernmentResolutionNo.1200dated29August1995bannedcounter
andbarter trade, except within theCISandunder thecondition thatonlytheproducers mayengage
incounter-trade andbarter provided thattheyexchange goods theyproduce forrawmaterial and
equipment needed fortheproduction ofthegoods.
(k) Trade agreements leading tocountry-specific quotas allocation
Theonlytradeagreement leading tocountry-specific quota allocation istheinitialled agreement
between Kazakstan andtheEuropean Union onTrade inTextiles (cf.section IV.5(a)).
(l) Government procurement practices
General legal régime governing procurement practices
Asatemporary measure pending theenactment ofalawongovernment procurement, the
Government hasrecently adopted Government Resolution No.586OnState Procurement ofGoods
andServices dated 13May1996. Prior toResolution No.586,eachStateentity procured goods and
services according toitsowninternal procurement regulations. Pursuant toResolution No.586,any
Ministry, Committee orStateOrganization (State Customers) mayprocure goods orservices onbehalf
oftheState provided those goods orservices serve thefollowing purposes:
(i) toimplement State scientific andtechnical programmes;
(ii) toimplement inter-State programmes;WT/ACC/KAZ/3
Page40
(iii) tomaintain necessary levels ofdefense capabilities andsecurity;
(iv) toensure theactivities ofStatepower bodies, courts, prosecutorial offices, education, health,
social provision, culture, sport, science, geology, geodesy, cartography, land-tenure andother
spheres ofRepublican importance;
(v) tomaintain communications systems; and
(vi) tomaintain adequate reserves allowing theState torespond tonatural andother disasters.
Goods orservices supplied inconnection withtheaforementioned procurements mustconform
toState standards, technical terms andother requirements.
Theprocess fortheprocurement ofgoods orservices notgoverned byResolution No.586
isdetermined bytheprocuring State entity according toitsinternal procurement regulations. These
regulations varyfrom oneState entity toanother and,ingeneral, stipulate openbidding process.
Procedures fortendering anddealing withtenders
Thetendering process fortheprocurements furthering theaforementioned purposes are
undertaken inoneoftwoways.
Procurement ofGoods orServices appearing ontheListofGeneral-Purpose Goods. Where
thegoods orservices appear ontheListofGeneral-Purpose Goods7(theList)approved bytheMinistries
ofFinance andEconomy, competitive tenders forthesupply ofthesegoods andservices areorganized
bytheBidding Commission oftheMinistry oftheEconomy (theBC). Bidsaresolicited viapublic
announcements communicated inthemass media andinviting bidders tosubmit proposals. Bidding
isopenanddeemed valid when three ormore bidders submit proposals.
Procurement ofGoods orServices notAppearing ontheList. Where StateCustomers procure
goods orservices notappearing ontheList,competitive tenders areorganized bytheStateCustomers
themselves. Theprocedures governing tenders organized byState Customers areidentical tothose
governing theprocurement ofgoods orservices appearing ontheListwithoneexception: there is
nostated priority given todomestic overforeign suppliers.
Procedures forawarding contracts
General criteria forawarding contract aretobeelaborated andadopted bytheBCforgoods
ontheList. Resolution No.586,however, requires thatforgoods orservices appearing ontheList,
domestic suppliers aregiven apriority overforeign suppliers if,other things being equal, theirprices
donotexceed theforeign suppliers ’prices bymore than20percent.
(m) Regulation oftrade intransit
Transit ofgoods inKazakstan isallowed byChapter 6,Articles 33to38,oftheCustoms Code.
When goods arrive attheentry point theymustbedeclared tothecustoms authorities astransit goods
andthentheymaymove freely through thecustoms territory ofKazakstan without thepayment of
customs duties andtaxes. However, thegoods mustremain unchanged incondition andnotbeused
forcommercial purposes. Goods maybemoved intransit under custody ofacarrier butifthere is
7Goods andservices included ontheListareprocured ingreatnumbers bymultiple StateCustomers.
Assuch, theyareincluded ontheListinorder tofacilitate wholesale purchases anduniformity of
procurements.WT/ACC/KAZ/3
Page41
reason tobelieve thatthegoods maynotbesecure inthecustody ofacarrier orinthevehicle ofa
carrier thencustoms hastherighttorequire thatthetransport vehicle beproperly equipped, orthat
Customs accompany thegoods, orthatthegoods bemoved byaCustoms carrier.
Ifthegoods arenotdelivered tothecustoms authorities atthedestination, thecarrier must
payallcustoms payments andtaxes which would bedueonthegoods ifreleased intofreecirculation,
unless thegoods havebeenexported, destroyed, orlostasaconsequence ofanaccident orforcemajeure.
Article 35oftheCustoms Code provides thatthetransit ofgoods shallbecarried outunder
permission oftheCustoms except forcases where theGovernment hasadopted another decision as
aretaliatory measure todiscrimination orother actions byforeign governments orunions which
encroaches ontheinterest ofKazakstan.
4. Policies Affecting Foreign Trade inAgricultural Products
(a) Imports
Kazakstan doesnotrequire licences fortheimport ofagricultural products. Inaddition, there
arenoquantitative restrictions suchasquotas fortheimport ofagricultural products. Thetrade-weighted
average import tariff rateforagricultural products is24.65 percentbased on1995 import data.
There arenospecial border measures related toagricultural products.
VeterinarycertificatefromthecountryoforiginisrequiredinordertoimportcattletoKazakstan.
(b) Exports
Kazakstan doesnotrequire export licences foragricultural products, except forivory, antlers,
hoofs, horns andcorals andsimilar materials. Export tariffs apply onlyforwheat other thanDurum
wheat (therateis7percent). There arenoexport subsidies foragricultural products.
(c) Export prohibitions andrestrictions
There arenoexport prohibitions orrestrictions onagricultural products.
(d) Export credits
There arenoexport credits, export credit guarantees orinsurance programmes foragricultural
products
(e) Internal policies
Themaingoaloftheagricultural policy oftheGovernment ofKazakstan istoestablish alegal
andinstitutional framework providing market conditions forastable growth ofproduction ofagricultural
goods. Asoftheendof1995, 1,862 (over 84percentoftotalState agricultural enterprises) State
agricultural enterprises and2,404 State farms (over 90percentofallState farms) were privatized.
Most companies intheagricultural sectors thathaddominant position inthemarket (more than
35percentmarket share) were demonopolized prior toprivatization. Prices havebeenliberalized.
Insupport ofsmall andmedium-size enterprises intheagriculture sector, thegovernment hasbeen
providing agricultural subsidies. In1995, theamount ofsubsidies wasUS$878million
(cf.section IV.3(a)).WT/ACC/KAZ/3
Page42
5. Policies Affecting Foreign Trade inother Sectors
(a) Textiles régime
Theonlyrestriction related toforeign tradeintextiles isexport quotas imposed bytheEuropean
Union. According totheagreement initialled between theEuropean Union andtheRepublic of
Kazakstan onTrade ofTextile Items dated 15October 1993, Kazakstan isnotallowed toexport to
theEuropean Union more than0.35percentofcategory Igoods, 1.2percentofcategory IIgoods
and4percentofcategory III,IVandVgoods ofthetotalimports ofsuchgoods intotheEuropean
Union during theprevious year.
Thetrade-weighted average import tariff ratefortextile products is16.73 percentbased on
1995 data. Consumer goods which havecontact withskins maynotbesoldinKazakstan without
certificate ofconformity (cf.Annex 5)
(b) Other sectors
There arenopolicies affecting foreign trade inother major sectors.
V. TRADE-RELATED INTELLECTUAL PROPERTY RÉGIME
1. General
(a) Intellectual property policy
Thepolicy objectives oftheRepublic ofKazakstan intheareaofintellectual property rights
andprotection arethree-fold: (i)tobring thelegalrégime governing intellectual property rights and
enforcement intoconformity withinternational standards, (ii)toensure thatthelegalrégime governing
intellectual property rights isenforced inpractice and(iii)totrainacadre ofhighly qualified experts
ineachspecific areaofintellectual property protection.
(b) Responsible agencies forpolicy formulation andimplementation
(i) State Patent Office
TheNational Patent Office (theNPO) wasestablished byPresidential Decree on23June1992.
TheNPO isaStateagency staffed andfunded outoftheRepublic budget. Theprimary functions of
theNPOaretoexamine patent andtrademark applications, toissuepatents andtoregister trademarks,
service marks andappellations oforigin. Inconnection withtheseapplications, theNPOalsomaintains
alibrary ofsearch filesonKazak andinternational patents, patent applications andtrademarks and
publishes agazette identifying allpatents andtrademarks issued bytheNPO. TheNPO hears and
decides appeals filedbyprospective inventors andtrademark applicants whose applications havebeen
denied byNPO examiners. Once applications aregranted, theNPO records andindexes documents
transferringownershipandparticipatesincourtproceedingsinvolvingpatentandtrademarkapplications.
TheNPO, moreover, examines andissues licences toallpatent andtrademark practitioners. Finally,
theNPO isresponsible fordeveloping draft laws andsub-law actsconcerning patent and
trademark-related issues andrepresents theRepublic ofKazakstan ininternational efforts tocooperate
onpatent andtrademark policy.
(ii) State Agency forCopyright andRelated Rights
TheState Agency forCopyright andRelated Rights intheRepublic ofKazakstan (the
KAZGAASP), wasestablished byaspecial decree oftheGovernment on8June1992. Theprincipal
functions ofKAZGAASP are(i)toensure observance oftherights andinterests ofauthors, artists,
actors, producers ofsound recordings andradio andtelevision broadcasts (authors) (ii)topromoteWT/ACC/KAZ/3
Page43
theworks ofKazak authors abroad and(iii)tocollect anddistribute honorariums onbehalf ofauthors.
KAZGAASP isalsoresponsible fordeveloping draftlawsandsub-law actsconcerning copyright and
copyright-related issues andrepresents theRepublic ofKazakstan ininternational efforts tocooperate
oncopyright policy.
(c) Membership ininternational intellectual property conventions andregional orbilateral
agreements
(i) International intellectual property conventions
On5February 1993, theGovernment oftheRepublic ofKazakstan adopted theDeclaration
onInternational Treaties intheAreaofIndustrial Property Protection wherein itexpressly acknowledged
that,asasuccessor Stateoftheformer U.S.S.R., itwillcontinue toassent tothefollowing multilateral
intellectual property conventions:
- Paris Convention fortheProtection ofIndustrial Property;
- Madrid Convention forInternational Trademark Registration; and
- Patent Cooperation Treaty (PCT).
On16February 1993, theGovernment oftheRepublic ofKazakstan formally deposited its
declaration ofcontinued accession totheaforementioned conventions withappropriate international
bodies.
(ii) Anticipated membership ininternational intellectual property conventions
With therecent adoption oftheLawonCopyrights andRelated Rights on10June1996, the
Republic ofKazakstan isnowprepared tocomplete theprocess ofaccession totheBerne Convention
fortheProtection ofLiteracy andArtistic Works (theBerne Convention).
(iii) Membership inregional intellectual property conventions
ByPresidential Decree, theRepublic ofKazakstan acceded totheEurasian Patent Convention
on18July1995. TheEurasian Patent Convention, which currently includes ninemember countries
(allfrom theCIS), allows patents registered inonemember country tobeautomatically recognized
inallother member countries.
(iv) Bilateral agreements onintellectual property protection
Currently,thebilateralagreementswhichcontaincooperativerelationsinthesphereofintellectual
property aretheKazak-American Agreement onTrade andCooperation ratified bytheRepublic of
Kazakstan on23December 1992; Kazak-Russian intergovernmental Agreement inthefieldofIndustrial
Property Protection, signed on28March 1994andasimilar Kazak-Kyrgyz Agreement isintheprocess
ofnegotiation indifferent appropriate ministries.
(d) Application ofnational andMFN treatment toforeign nationals
Ingeneral, theConstitution, Civil Code andLawonForeign Investments, provide foreign
physical andjuridical persons bothnational andmost favoured nation treatment. With reference to
intellectual property rights inparticular, Article 37ofthePatent LawandArticle 3oftheLawonTrade
Marks, Service Marks andAppellations ofOrigin; andArticle 5oftheLawonCopyrights andRelated
Rights allassure thatforeign physical andjuridical persons aretobeaccorded national treatment.
Assuch, theRepublic ofKazakstan ’sintellectual property régime conforms toArticles 3and4ofthe
WTO TRIPS Agreement.WT/ACC/KAZ/3
Page44
(e) Feesandtaxes
SeePartIandPartIIinAnnex 10forfeescharged tonon-nationals andnationals respectively.
2. Substantive Standards ofProtection, Including Procedures fortheAcquisition and
Maintenance ofIntellectual Property Rights
(a) Copyright andrelated rights, including rights ofperformers, producers ofphonograms
andbroadcasting organizations
Thedefinition ofprotectable subject matter, including rental rights inrespect ofcinematographic
andcomputer programs, isprovided forinArticles 6-8ofthenewLawonCopyrights andRelated
Rights andissufficiently broad toencompass allforms ofcopyright prescribed byArticles 9-12of
theTRIPS Agreement andArticles 2and2bisoftheBerne Convention.
(i) Rights ofauthors
Inaccordance withrelevant provisions intheBerne Convention andtheTRIPS Agreement,
thenewLawonCopyrights andRelated Rights provides authors andtheirsuccessors intitlewith,
interalia,theexclusive right toauthorize the: reproduction; broadcast; public recitation;
cinematographic orotheradaptation, arrangement oralteration; andpublic performance, oftheirworks.
Inaccordance withArticles 12and14oftheTRIPS Agreement andArticle 7oftheBerne Convention,
thetermofprotection ofawork (whether cinematographic, photographic orother) shallbeforthe
lifeoftheauthor plusfifty(50)years aftertheauthor ’sdeath.
(ii) Rights ofperformers
Inaccordance withArticle 14(1) oftheTRIPS Agreement, Article 37ofthenewLawon
Copyrights andRelated Rights provides performers with, interalia,therighttoprevent thefixation
oftheirunfixed performance andthereproduction thereof andthebroadcast orother communication
oftheirliveperformance.
(iii) Rights ofproducers ofphonograms
Inaccordance withArticle 14(2) oftheTRIPS Agreement, Articles 34-38 ofthenewLawon
Copyrights andRelated Rights provides toproducers ofphonograms therights to,interalia,prohibit
unauthorized reproduction, re-make, distribution orimportation ofphonograms.
(iv) Rights ofbroadcasting organizations
Inaccordance with Article 14(3) oftheTRIPS Agreement, Articles 34-37 and39-41,
Broadcasting organizations have, interalia,therighttoprohibit thefollowing unauthorized acts: the
fixation, reproduction offixations andtherebroadcast bywireless means ofbroadcasts, aswellas
communication tothepublic oftelevision broadcasts ofthesame.
(v) Terms ofprotection forperformers, producers ofphonograms andbroadcasting
organizations
Inaccordance withArticle 14(5) oftheTRIPS Agreement, Article 42ofthenewLawon
Copyrights andRelated Rights provides performers, producers ofphonograms andbroadcasting
organizations withanunqualified termofprotection offifty(50)years afterthedateoffirstperformance
(orstaging), firstpublication ofaphonogram, orfirstbroadcast respectively.WT/ACC/KAZ/3
Page45
(b) Trademarks, including service marks
TheLaw onTrade Marks, Service Marks andAppellations ofOrigin wasadopted on
18January 1993 andentered intoforce on23February 1993. Inaccordance withArticle 15ofthe
TRIPS Agreement, theRepublic ofKazakstan recognizes, asprotectable subject matter, trade marks
orservice marks which areoral,figurative, inthree dimensional form, orinanyother designation
capableofdistinguishingthegoodsandservicesofonebusinessfromthesameorsimilaronesofanother.
Inaccordance withArticle 15(4) oftheTRIPS Agreement, thenature ofthegoods orservices towhich
thetrademark orservice mark isapplied isnotanobstacle toitsregistration. Trade marks andservice
marks areafforded protection foraperiod oftenyears from thedateoffiling andforeachrenewal
thereafter and,assuch, thisperiod ofprotection conforms toArticle 18oftheTRIPS Agreement.
While theRepublic ofKazakstan doesrequire theowner ofatrade mark certificate touseitongoods
orservices, there isnoprerequisite ofprior useforregistration. Interested parties, moreover, may
onlyfileapetition forcancellation fornon-use ifsuchnon-use canbeestablished foraperiod offive
consecutive years priortothefiling ofthepetition. Hence, thelegalrégime fortrademark andservice
marks alsoconforms toArticles (15)(3) and19oftheTRIPS Agreement.
(c) Geographical indications, including appellations oforigin
Inaccordance withArticle 22oftheTRIPS Agreement, geographical indications identifying
aproduct asoriginating within theterritory oftheRepublic ofKazakstan andhaving aquality or
characteristic attributable toaparticular location therein, mayberegistered withtheNPO. Registrations
forgeographical indications orappellations oforigin areaccomplished according tothesameprocedures
asthose setforth fortrade andservice marks. Aswithtrade andservice marks, certifications are
afforded forperiods oftenyears fromthedateoffiling andforeachrenewal thereafter. Appellations
oforigin, moreover, maybecancelled fornon-use where interested parties fileanapplication for
cancellation withtheNPO andcandemonstrate continuous non-use foraperiod offiveyears tothe
satisfaction oftheNPO.
(d) Industrial designs
Rights toindustrial designs areregulated bythePatent Lawadopted on24June1992 which
grants patents forindustrial designs which arenovel, original andcapable ofindustrial application.
Assuch, thePatent Lawgoverning thepatentability ofindustrial designs conforms toArticle 25(1)
oftheTRIPS Agreement. Inaccordance withArticle 26(3) oftheTRIPS Agreement, preliminary
patents forindustrial designs aregranted foraperiod offiveyears andfullpatents foraperiod often
years fromthedateoftheapplication andthese patents maybeextended foranadditional fiveyears.
Patent holders forindustrial designs shallhaveexclusive rights ofuseandunauthorized production,
importation, saleorplacement ofgoods bearing orembodying theprotected design intocommercial
circulation, shallconstitute aninfringement assetforth inArticle 26(1) oftheTRIPS Agreement.
Finally, anyinterested party mayapply tothecourts oftheRepublic foracompulsory licence inthe
event ofnon-use provided thepetitioner canestablish non-use foraperiod offiveyears fromthedate
thepatent forindustrial design wasinitially granted andpublished. Should thecourt grant sucha
compulsory licence, theterms androyalty feeswillbesetbythejudge inanamount notlower than
themarket rateforsuchalicence.
(e) Patents
Patent protection isavailable forinventions, industrial designs (seeparagraph (d)above) and
utility models (seeparagraph (i)below). Patents forinventions areavailable inrespect of,interalia,
processes andproducts which arenovel andhaveindustrial application and,assuch, thePatent Law
isinconformity withArticle 27(1)oftheTRIPS Agreement. Inaccordance withArticle 27(2) andWT/ACC/KAZ/3
Page46
(3)oftheTRIPS Agreement, thePatent Lawprovides thatthefollowing inventions arenotpatentable:
scientific theories, mathematical solutions, methods ofeconomic organization, computer programs,
plant varieties andanimal breeds, layout designs ofintegrated circuits andanyinvention which is
considered tobecontrary topublic order, health ormorality.
Formal examination ofapatent application isperformed bytheNPO within twomonths after
thedateoffiling. Ifaccepted, apreliminary patent isgranted notearlier thanfourmonths afterthe
dateoftheinitialfilingandtheNPOwillpublishinformationconcerningthepatentinitsOfficialGazette.
Thepublished documents maybeinspected byanyperson foraperiod ofeight months aftertheir
publication. Within aperiod ofnomore thanfouryears, theholder ofthepreliminary patent must
apply totheNPO foradetailed examination ofthepatent onthemerits. Iftheclaims aresatisfied,
apatent isissued foraperiod oftwenty years inconformity withArticle 33oftheTRIPS Agreement.
Applicants, inconformity withArticle 32oftheTRIPS Agreement, havetherighttoappeal anyinterim
decision oftheNPOtotheNPOBoard ofAppeals foradministrative review. Subsequently, applicants
mayapply tothecourts forjudicial review ofthedecision oftheNPO Board ofAppeals.
Patent holders aregranted exclusive rights inconformity withArticle 28oftheTRIPS
Agreement. Unauthorized production, importation, saleandplacement ofanyproducts which arethe
result ofaninfringement intocommercial circulation constitute aninfringement. Anyinterested party
mayapply tothecourts oftheRepublic foracompulsory licence intheevent ofnon-use provided
thepetitioner canestablish non-use foraperiod offiveyears from thedatethepatent wasinitially
granted andpublished. Should thecourt grant suchacompulsory licence, theterms androyalty fees
willbesetbythejudge inanamount notlower thanthemarket rateforsuchalicence.
(f) Plant variety protection
Asnoted insection III(4) ofthisMemorandum, theGovernment hasincluded onitsdrafting
agenda for1997-98 aLawonSelection Achievements.
(g) Layout designs ofintegrated circuits
Alegalframework governing layout designs forintegrated circuits isnotyetdefined inthe
Republic ofKazakstan. Patent protection forlayout designs isunavailable.
(h) Requirements onundisclosed information, including trade secrets andtestdata
While there isnospecific lawprotecting tradesecrets, perse,information which hasnotbeen
disclosed tothirdparties, hascommercial value andforwhich reasonable stepstoprotect secrecy have
beentaken bypersons lawfully incontrol thereof, isprotected bytheCivil Code oftheRepublic of
Kazakstan. Assuch, therelevant provisions oftheCivilCode constitute thesubstance ofatradesecret
lawwhich conforms toArticle 39(2) oftheTRIPS Agreement. Undisclosed dataorother information,
moreover, which isrequired bytheRepublic ofKazakstan intheprocess ofapproving themarketing
orsaleofchemical, pharmaceutical, oragricultural products isalsoprotected and,assuch, complies
withArticle 39(3) oftheTRIPS Agreement.
(i) Other categories ofintellectual property
Utility models areafforded patent protection iftheyarenovel andhaveindustrial application.
Patents forutility models aregranted forinitial periods offiveyears andmaybeextended foran
additional period ofthree years. Exclusive rights topatents forutility models andthecircumstances
ofinfringement aresimilar tothose assetforth above forpatents. Finally, anyinterested party may
apply tothecourts oftheRepublic foracompulsory licence intheevent ofnon-use provided theWT/ACC/KAZ/3
Page47
petitioner canestablish non-use foraperiod offiveyears fromthedatethepatent fortheutility model
wasinitially granted andpublished. Should thecourt grant suchacompulsory licence, theterms and
royalty feeswillbesetbythejudge inanamount notlower thanthemarket rateforsuchalicence.
3. Measures toControl Abuse ofIntellectual Property Rights
While there arenospecific provisions tocontrol theabuse ofintellectual property rights by
right-holders, abuses ofintellectual property rights which result inconstraints oncompetition andunfair
competition willmostlikely violate existing provisions intheCivil Code, theLawonthePromotion
ofCompetition andLimitation ofMonopolistic Activity andtheCriminal Code.
4. Enforcement
(a) Civil judicial procedures andremedies
Current provisions inthePatent Law; theLawonTrade Mark, Service Mark andAppellations
ofOrigin; theCivilCode; andtheCode ofCivilProcedure provide theholder ofintellectual property
rights withtheability tobring thefollowing actions inaState Court against aninfringer:
- tostopaninfringer from unlawfully using aholder ’srights tointellectual property;
- toforce aninfringer topaydamages (including allcourt costs, attorney ’sfeesandloss
ofprofit totheholder); and
- topaytheholder additional compensation formoral damages.
Anapplication toacourtforanyoftheaforementioned remedies willnotpreclude arightholder
fromconcurrently applying totheappropriate Stateagency foradministrative action against aninfringer.
(b) Provisional measures
Currently, judges have nospecial authorities toorder provisional measures ofthetype
contemplated byArticle 50oftheTRIPS Agreement.
(c) Administrative procedures andremedies
TheAdministrative Code andtheLawOnthePromotion ofCompetition andLimitation of
Monopolistic Activity provide foradministrative liability for,interalia,(i)actions which restrict
competition, (ii)actions which constitute unfair competition and(iii)actions which manifest anabuse
ofadominant position.
(d) Special border measures
Currently, therearenospecial border measures inplacetoprevent theimportation ofcounterfeit
trademark orpirated copyright goods. Withtheadoption ofthenewLawonCopyrights andRelated
Rights, however, appropriate adjustments willbemade totheCustoms Code, Criminal Code, theCode
ofCriminalProcedureandAdministrativeCode.Theseadjustmentswillinclude,interalia,theadoption
oftheaforementioned special border measures.
(e) Criminal procedures
Ingeneral, under thecurrent lawsoftheRepublic ofKazakstan, onlyphysical andnotjuridical
persons maybeheldcriminally liable. Withreference tointellectual property rights, violators ofeither
therights ofauthors andinventors ortheLawonthePromotion ofCompetition andLimitation ofWT/ACC/KAZ/3
Page48
Monopolistic activity willbeheldcriminally liable.8With theanticipated adoption ofthedraftLaw
onAuthorshipandArtisticPerformance,moreover,appropriateadjustmentswillbemadetotheCriminal
LawandCode ofCriminal Procedure torender acrime, interalia,themanufacture, importation or
saleofcounterfeit trademark orpirated goods.
5. Laws, Decrees, Regulations andOther Legal ActsRelating totheAbove
(a) Laws governing intellectual property
(i) Parliamentary Acts
- Civil Code adopted 27December 1994;
- LawonProtection ofConsumer Rights, adopted 5June1991;
- LawonDevelopment ofCompetition andRestriction ofMonopolistic Activities, adopted
11June1991;
- Patent Lawadopted on24June1992;
- LawonTrade Marks, Service marks andAppellations ofOrigin, adopted 18January 1993;
and
- LawonCopyrights andRelated Rights, adopted 10June1996.
(ii) Decrees ofthePresident
- OntheNational Patent Office Under theCabinet ofMinisters oftheRepublic ofKazakstan,
adopted 23June1992.
(iii) Resolutions oftheCabinet ofMinisters
- OntheEstablishmentofaStateAgencyonCopyrightsandRelatedRights,adopted8June1992;
- OntheNational Patent Office under theCabinet ofMinisters oftheRepublic ofKazakstan,
adopted 21July1992
- OntheApproval oftheRegulation ontheNational Patent Office Under theCabinet ofMinisters
oftheRepublic ofKazakstan, adopted 16October 1992;
- OntheApproval ofProcedures forthePayment ofandRates ofDuties for,Patenting Inventions,
Industrial Patterns andUtility Models; forRegistration ofTrade Marks andService Marks,
forRegistration andtheRights ofUseofAppellations ofOrigin, adopted 20October 1992;
- OntheApproval oftheProcedure forIssuing Documents forInventions, Industrial Designs,
Trade Marks andService Marks Protected bySafe-Conduct Documents oftheUSSR, adopted
11November 1992;
- OntheRates andProcedure forthePayment ofDuties Applicable toForeign Applicants for
Juridical Significant ActsRelated totheProtection oftheIndustrial Property Objects inthe
Territory oftheRepublic ofKazakstan, adopted 6April 1993; and
- OntheApproval ofRegulations OnService Inventions, Utility Models andIndustrial Patterns
Created intheRepublic ofKazakstan, adopted 11August 1994.
6. Statistical Data onApplications forGrants ofIntellectual Property Rights, aswellasany
Statistical Data onTheir Enforcement
SeePartIIIinAnnex 10forstatistical dataonapplications. Nostatistical dataavailable
concerning theenforcement ofintellectual property rights.
8Seesection V(3)above.WT/ACC/KAZ/3
Page49
VI. TRADE-RELATED SERVICES RÉGIME
1. General
Annex 7provides description ofmajor sectors including financial, transport and
telecommunications. Table 6.1provides abreakdown ofmajor services aspercentage ofGDP and
workforce. Although thenumber ofemployed citizens hasbeendecreasing intheservice sector, GDP
share ofservice sector hasbeengrowing. Theworkforce presently employed intheservice sector is
atleast40percentofthetotalemployed workforce. Theservice sector output constitutes 50.7percent
ofGDP in1995 (41.8 percentin1994).
Theprivate sector dominates theservice industry withmostservices inprivate hands. Foreign
entities haveasignificant share inthemostprominent services andthenumber offoreign entities is
steadily growing. Kazakstan doesnothavecomplete statistics related totradeinservices. Inaddition,
Statistics regarding thevalue andcomposition offoreign trade intheservice sector isnotcollected.
Table 6.1-Breakdown ofmajor Services aspercentage ofGDP andtotalworkforce (WF)
Type ofServices %GDP %ofEmployed Work
Force
1993 1994 1995 1993 1994 1995
Construction Services 9.00 9.05 7.0 7.10 6.26 5.56
Financial * 1.58 1.88 0.75 0.77 0.78
Trade-Related Services 4.00 15.67 18.40 4.24 4.38 3.83
Transport andCommunications 6.00 7.89 9.46 8.31 8.01 7.61
*Datanotavailable
Open competition exists inevery service sector oftheeconomy andmany natural
monopoly sectors havebeenderegulated.
2. Policies Affecting Trade inServices
(a) Governmentdepartments,agencies,professionalassociationsorotherbodieswithauthority
orarolerelevant totheconduct ofservice activities
TheState roleintheservice sector mainly involves theissuance oflicences andsupervision
inorder toensure competition, non-discriminatory practices andproper compliance withlegislation
and,incertain sectors suchasbanking, toensure viability ofbanks andsoundness ofthefinancial
system.
ThePresidential Edict OnLicensing, dated 17April 1995, governs licensing activities in
Kazakstan. Article 3.1stipulates thatissuing oflicence shallbecarried outonequal bases andequal
terms foranypersons whomeet therequirements established forthattypeoflicence. Itshall be
prohibited togrant advantages inissuing licences toState-owned enterprises, except forthose types
ofactivities which arereferred toasStatemonopoly inlegislative acts.Article 3.3ofthatEdict prohibits
granting advantages through issuance oflicences tocertain groups ofentrepreneurs regardless oftheir
form ofownership, departmental interests orlocations. Inaddition, itprohibits therestriction of
competition. Article 8stipulates thatforeign legalentities orphysical persons shallbegranted licences
under thesame conditions andprocedures aslegal entities andphysical persons oftheRepublic of
Kazakstan, unless itisotherwise stipulated byother legislative acts. Article 20states thatifalicence
isnotissued within theestablished deadline (i.e.,onemonth), oriftheresponse seems tobeunfounded,WT/ACC/KAZ/3
Page50
theapplicant shallhavetherighttochallenge thelicensing agency inajuridical procedure within one
month. Ifthecourt reveals unreasonable refusal forissuing licence, thelicensing body must issue
licence within 10daysofcourt decision.
Ministries, which areauthorized toissue licences under thePresidential Edict, arecurrently
intheprocess offormulating newlicensing procedures andqualification requirements.
Peculiarities oflicensing ofactivities onusage ofnatural resources andenvironmental protection
aretobeelaborated inspecific legislation according toamendments of23December 1995toPresidential
Edict OnLicensing.
GovernmentResolutionNo.1894OnImplementationofResolutionofthePresidentofKazakstan
on17April 1995No.2201, dated 29December 1995specifies theStatebodies responsible forissuing
various licences. Nomore thanoneState body isallowed toissue aparticular licence. However,
forcertain typeofservices thereisaneedforexpert evaluation bythesanitary, ecological and/or mining
supervisionbodies.Thereare27Statebodiesresponsibleforissuinglicencesaffectingbusinessactivities.
Table A7.5 liststhese State bodies andtheirroles.
Ingeneral, State bodies responsible forissuing licences foraparticular activity arealso
responsible forsupervising thatactivity. TheotherStateandindependent bodies which havesupervisory
andregulatory roles relevant totheconduct ofservice activities aredescribed inTable 6.3below.
Table 6.3-State Bodies, Agencies andProfessional Associations withRole
Relevant totheConduct ofService Activities
Government Bodies, Agencies and
Professional AssociationsRolerelevant toConduct ofService Activities
Anti-Monopoly Committee approval oftariff ratesfornatural monopolies (e.g,
telecommunications, oilandgaspipelines, power
transmission anddistribution); restriction of
anti-competitive activities
Chamber ofAuditors control overactivities ofauditors
State Committee onLand control proper useoflandandissue permit foruseof
land
State Energy Supervision Commission inspection ofproper installation, operation andsafety
ofpower equipment
Ministry ofInternal Affairs approval ofbusiness sealsandstamps
State Statistics Committee collection andprovision ofstatistics
TaxPolice andTaxInspection
Departments under theMinistry of
Financecollection oftaxes andtaxinspection
(b) Judicial, arbitral oradministrative tribunals orprocedures providing forthereview of,
orremedies inrelation to,administrative decisions affecting trade inservices
Such procedures arethesame asthose fortrade ingoods (cf.section III.6)WT/ACC/KAZ/3
Page51
(c) Provisions, including those ininternational agreements, concerning qualification
requirements andprocedure, technical standards andlicensing and/or registration
requirements forthesupply ofservices
Annex 7listsqualification requirements andprocedures andrefers totherelevant legislation.
Ingeneral, thecriteria include competence andability todeliver theservice. Most professional services
require auniversity degree. Themoststrict requirements arethose related tofinancial, professional
services, health andaviation services.
There isnoregistration requirement forthesupply ofservices other thannormal registration
asalegalentity attheMinistry ofJustice. Forcertain services, licences arerequired (cf.Annex 7).
Businesses incertain trade anddesign activities must meetstandards (cf.Annex 5).
(d) Provisionsgoverningtheexistenceandoperationofmonopoliesorexclusiveservicesuppliers
Thepolicy oftheGovernment ofKazakstan istopromote opencompetition inallservice sectors.
TheGovernment doesnotgrant anyentity, regardless ofownership, exclusive ormonopolistic right
toprovide services. Competition isensured through theenforcement oftheLawonDevelopment of
Competition andRestriction ofMonopolistic Activities. Under thelaw,theAnti-Monopoly Committee
hastheauthority todemonopolize companies thatraisemonopoly concerns andtoprevent mergers
thatmayleadtotheformation ofmonopolies. Most State monopolies intheservice sector were
demonopolized prior totheirprivatization.
Natural monopolies arealsoregulated bytheAnti-Monopoly Committee. Natural monopolies
(e.g., pipelines, power transmission networks, railroads andtelephone network) actastransport carriers
withequal openaccess toallsuppliers andoperators regardless offormandtypeofownership. Tariff
ratesareestablished bytheAnti-Monopoly Committee.
(e) Provisions relating tosafeguard measures astheyapply totrade inservices
Kazakstan doesnothaveanysafeguard measures fortrade inservices.
(f)(g) Provisions relating tointernational transfers andpayments forcurrent andcapital
transactions ofservices
Policies andlawsdiscussed under section II.2(c) applies forinternational transfers andpayments
forcurrent andcapital transactions ofservices.
(h) Provisions governing theprocurement bygovernmental agencies ofservices
Provisionsforgovernmentprocurementofservicesarethesameasthosegoverningprocurement
ofgoods (cf.section IV.3(l))
(i) Provisions concerning anyform ofaid,grant, domestic subsidy, taxincentive orpromotion
scheme affecting trade inservices
TheGovernment provided loanguarantees in1995 forthefollowing service sectors:
- trade services (US$ 39million)
- transport services (US$ 67million)WT/ACC/KAZ/3
Page52
Inaddition, theGovernment provided direct subsidies (US$197,000) topromote theproduction
ofalternative sources ofenergy suchassolar andwind energy. TheGovernment alsoprovided
favourable credits through ExIm Bank torailroad companies amounting toUS$3million andto
communications enterprises (US$ 1M).
3. Market Access andNational Treatment
(a) Limitations onthenumber ofservice suppliers
There arenolimitations onthenumber ofservice suppliers inKazakstan.
(b) Limitations onthetotalvalue ofservice transactions orassets
Therearenolimitationsonthetotalvalueofservicetransactionsorassets,exceptintheinsurance
sector. ThelawOnInsurance dated 2October 1995 doesnotallow more than95percentofriskto
bere-insured outside ofKazakstan.
(c) Limitations onthetotalnumber ofservice operations oronthetotalquantity ofservice
output
There arenolimitations onthetotalnumber ofservice operations oronthetotalquantity of
service output.
(d) Limitations onthetotalnumber ofnatural persons thatmaybeemployed inaparticular
service sector
There arenolimitations onthenumber ofnatural persons thatmaybeemployed inaparticular
sector.
(e) Restrictions on,orrequirements ofspecific types oflegal entity through which aservice
maybesupplied
According toArticle 34oftheCivilCode, 27December 1994, services maybesupplied through
eachofthree existing types oflegalentity: State company, partnership andproduction cooperative.
According toArticle 58oftheCivil Code andtheLawOnLegal Entities, dated 17April 1995, there
arefiveforms inwhich partnership maybeestablished: FullLiability Partnership, Commandite
Partnership, LLP(Limited Liability Partnership), Partnership withAdditional Liability andJSC(Joint
Stock Company).
Requirements forspecific types oflegalentity, through which aservice maybesupplied, are
limited tothree types ofservices:
- Banks should beJSCs (President Decree having theForce ofLawonBanks andBanking
Activities intheRepublic ofKazakstan; 31August 1995).
- Stock Exchanges should beJSC(President Decree having theForce ofLawonSecurities and
Stock Exchange; 21April 1995)
- Insurance companies could beeither LLPorJSC(President Decree having theForce ofLaw
onInsurance; 3October 1995).WT/ACC/KAZ/3
Page53
(f) Limitations ontheparticipation offoreign capital
There arenolimitations ontheparticipation offoreign capital intheservice sectors except
inthefollowing twocases:
Banking Sector. TheEdict ofthePresident ofKazakstan having theforce ofthelawOnBanks and
Banking Activities inKazakstan states thatthetotalregistered charter fundofallbanks withforeign
participation should notexceed 25percentoftheoverall registered charter fundofallbanks in
Kazakstan. However, theNational Bank maystillgrant exceptions onacase-by-case basistoforeign
banks toenter themarket regardless ofthislimitation.
InsuranceSector.Themaximumforeignparticipationininsurancejointventuresis50percentstipulated
bytheLawonInsurance.
(g) Measures providing forlessthanthetreatment accorded tonational services orservice
suppliers
Kazakstan makes nodistinction between domestic andforeign services andservice suppliers
exceptingovernmentprocurement(cf.sectionIV.3(l))andservicesinconnectionwithoilandsubsurface
useprovided thatKazakstani services arecompetitive interms ofprice, efficiency andquality. However,
foreign natural persons must register within 3daysafterestablishing residency intheoblast where
theywillbeworking. Suchregistration isforstatistical andimmigration-related reasons. Inaddition,
foreign natural persons must obtain internal visas forvisiting certain oblasts.
4. Most-Favoured-Nation Treatment
TheGovernment ofKazakstan makes nodistinction among theservices andservice suppliers
from various countries andprovides toallarégime which isnotlessfavourable thanthatapplied to
theservices andservice suppliers ofanyforeign country already operating attheservice market of
Kazakstan.
VII. INSTITUTIONAL BASIS FORTRADE AND ECONOMIC RELATIONS WITH THIRD
COUNTRIES
1. Bilateral orPlurilateral Agreements Relating toForeign Trade inGoods andTrade in
Services (cf.Annex 8-section A)
TheRepublic ofKazakstan hasconcluded more than45bilateral andplurilateral agreements
relating toforeign trade ingoods andtrade inservices withmore than40countries. Most ofthese
agreements aresigned withcountries whowere contracting parties toGATT andaremembers ofthe
WTO. GATT principles wereobserved, withexceptions permitted under Articles XVIII, XIX, XX,
XXIandXXIV ofGATT.
Alltrade agreements withforeign countries, except those withCIScountries, arereciprocal,
based onMost-Favoured-Nation (MFN) treatment andstipulate theusual exceptions from theMFN
régime.
Some ofthese agreements haveprovisions thatrestrict unauthorized re-export. Re-export of
reciprocally supplied goods, inrespect ofwhich thecontracting parties apply tariffs andnon-tariff
measures, ispossible onlyupon written permission ofauthorized bodies ofthecountry oforigin of
thegoods.WT/ACC/KAZ/3
Page54
Asmall number ofthese agreements haveprovisions stipulating freetrade inservices butdo
not,however, provide preferential treatment.
2. Economic Integration: Customs Union andFreeTrade Area Agreements
(cf.Annex 8-section B)
TheRepublicofKazakstanhassignedbilateralfreetradeagreementswithKyrgyzstan,Lithuania,
Moldova, theRussian Federation, Ukraine andTadjikistan. Inaddition, amultilateral freetrade
agreement wassigned among Kazakstan, Kyrgyzstan andUzbekistan establishing aunified economic
area. Amultilateral agreement onthecreation ofafreetrade areaamong allCIScountries hasalso
beensigned. Ofallthese agreements, onlytheagreements withMoldova andKyrgyzstan havebeen
ratified bybothparties andarepresently inforce. Theother agreements havesofarbeenratified only
byKazakstan.
These agreements stipulate freetrade based onexemptions fromduties forallkinds ofgoods
andservices withcertain exceptions. Thelistofexceptions, notcovered under freetrade, areagreed
toinprotocols tothese agreements. MFN principles apply tothose goods thatarenotcovered by
thefreetraderégime. Thelistofexceptions fromfreetrade, agreed uponwithKyrgyzstan andMoldova,
arethefollowing:
- goods requiring export contracts registration;
- goods requiring permission from theGovernment ofKazakstan forexport andimport (e.g.
goods ofstrategic importance);
- goods requiring import licences; and
- goods thataresubject toexport tariffs, licences andquotas inaccordance withthelegislation
ofKazakstan, Kyrgyzstan andMoldova.
Currently, thelawsofKazakstan, Kyrgyzstan andMoldova donotimpose quotas. According
tothelegislation ofKazakstan, import/export licensing andpermission arerequired forasmall number
ofproducts. Inaddition, export tariffs apply forasmall number ofproducts. Thelistsofproducts,
intheHSnomenclature, requiring export contracts registration, permission fromthegovernment for
export andexport licensing areprovided inAnnex 9.Thelistofproducts requiring import licences
andgovernment permission forimport areprovided inAnnex 3.
On20January1995,KazakstanjoinedthecustomsunionformedbetweentheRussianFederation
andBelarus. Apart from creating acommon customs tariff, themembers ofthecustoms union plan
toharmonize theirlegislation affecting foreign trade. TheGovernment ofKazakstan isdetermined
toimplement theagreement insuchaway,astoensure thatitwillbefullycompatible withKazakstan ’s
obligations asamember oftheWTO.
On20July1995, theRepublic ofKazakstan joined thesystem ofpreferences andissued
resolution No1009 Onconfirmation ofalistofcountries-users ofthescheme ofpreferences ofthe
Republic ofKazakstan. Inaccordance withthisresolution, halfofthebaserateofimport tariffs is
applied forgoods produced indeveloping countries. Goods produced inleastdeveloped countries
areimported toKazakstan dutyfree. Thelistsofdeveloping andleastdeveloped countries andthe
listofgoods excluded from preferential treatment areprovided insection EofAnnex 8.
3. Labour Markets Integration Agreements (cf.Annex 8-section C)
KazakstanhaslabourmarketintegrationagreementswithIran,Kyrgyzstan,Mongolia,theRussian
Federation, Turkey andUzbekistan.WT/ACC/KAZ/3
Page55
4. Multilateral Economic Cooperation, Membership intheMultilateral Economic
Organizations, Trade-Related Programmes ofOther Multilateral Organizations
(cf.Annex 8-section D)
Kazakstan isasignatory of72bilateral economic agreements (Annex 8-section D.1),
7multilateral economic agreements (Annex 8-section D.2) and14international conventions
(Annex 8-section D.3). Inaddition, Kazakstan isamember of33multilateral economic organizations
(Annex 8-section D.4)andisintheprocess ofjoining 3additional organizations including theWTO
(Annex 8-section D.5).WT/ACC/KAZ/3
Page56
ANNEX 1
STATISTICS AND PUBLICATIONS
1. Foreign Trade Statistics forGoods andServices: Responsible Agencies
Thetwokeygovernment agencies responsible forforeign tradestatistics forgoods andservices
aretheState Statistics Committee andtheCustoms Committee. Customs statistics wasinitiated in
1993.
2. Publications Related toStatistics
Publications related tostatistics arepublished bytheState Statistics Committee andinclude
thefollowing:
- Onsocial-economic situation ofKazakstan (monthly)
- Brief statistical year-book
- Statistical year-book
- Regional statistical year-book
- Statistical bulletin inEnglish (quarterly)
- Statistical press-bulletin Onsocial-economic situation oftheRepublic ofKazakstan
(quarterly)
- Finances oftheRepublic ofKazakstan (annual)
- Agriculture oftheRepublic ofKazakstan (annual)
- Protection ofenvironment andrational utilization ofnatural resources oftheRepublic
ofKazakstan (annual)
- Youth oftheRepublic ofKazakstan (annual)
- Demography year-book (annual)
- Foreign trade oftheRepublic ofKazakstan (annual)
3. Statistical Data
(a) Main economic indicators
(i) Gross Domestic Product -GDP
TheGDP for1995 wasequal to992.5 Billion Tenge (US$ 16.289 Billion).
Table A1.1 -GDP (inpercent of1992 year) during period 1993-1995
1992 1993 1994 1995
100 87.1 65.0 59.2
Table A1.2 -Estimated Public andPrivate Sectors Share ofGDP (inpercentage)
1993 1994 1995
State Sector 74 58 30
Non-State Sector 26 42 70WT/ACC/KAZ/3
Page57
Table A1.3 -Breakdown bySector ofGDP (percentage)
Sector 1993 1994 1995
Industry: 31.00 25.92 21.82
Energy Sector 4.87 5.68 4.87
Chemical &Petrochemical Industry 1.24 0.96 0.79
NonFerrous Metallurgy 4.15 3.11 2.64
Ferrous Metallurgy 3.26 3.08 3.01
Electric Power 4.46 4.90 3.58
Machine Building &Metal Processing 3.07 1.89 1.27
Food Industry 3.53 2.57 2.36
Light Industry 1.80 0.98 0.57
Construction Materials 1.61 1.06 0.63
Wood Processing, Pulp, &paper 0.74 0.26 0.15
Other industries 2.26 1.43 1.96
Agriculture 13.00 14.00 11.39
Construction Services 9.00 9.05 7.00
Transport &Communications 6.00 7.89 9.46
Trade 4.00 15.67 18.40
Other andTaxes 37.00 27.47 31.93
(ii) Gross domestic product percapita
Table A1.4 -GDP perCapita (inprices of1995)
1992 1993 1994 1995
GDP perCapita (Tenge) 98,764 86,079 64,824 59,745
GDP perCapita (US$) 1,621 1,413 1,064 981
(iii) Budget
Table A1.5 -Budget (Millions Tenge)
Budget Items 1993 1994 1995
Total Revenue 7,102.7 84,238.9 197,202.1
A. Current revenue 6,318.7 82,771.9 189,969.1
A.1 Taxrevenue 3,344.5 36,936.0 108,414.7
Value added tax 1,158.6 10,798.0 33,259.0
Excise tax 159.7 2,181.1 6,307.5
Corporate tax 1,248.50 14,550.0 35,269.7WT/ACC/KAZ/3
Page58
Budget Items 1993 1994 1995
Personal tax 743.1 8,256.8 25,801.6
Local tax 13.3 550.7 3,421.0
Capital gains tax 1.9 105.7 400.5
Land tax 18.3 225.1 2,059.4
Other taxes 1.1 268.6 1,896.0
A.2Revenue from foreign economic activities 138.5 6,075.0 22,588.3
Customs levies 22.0 376.2 600.0
Import Customs duties 32.3 421.9 3,022.8
Export Customs duties 77.1 5,264.20 9,145.0
Barter operations 4.3 12 295.6
Other revenue from foreign economic activity 2.8 0.70 9,524.9
A.3Other Current Revenue 2,835.70 39,760.90 58,966.1
Rentpayment 43.9 201.0 1,032.5
Revenue from bonuses androyalties 3.0 3,802.0
Profit ofNBK 342.8 8,303.2 800.0
Revenue from NBK 0 8,414.0 2,826.0
Purpose-oriented funds revenue 984.2 12,821.0 21,106.5
Feesandother non-tax revenues 842.2 7,668.2 17,845.0
Other current revenue 622.6 2,350.5 11,554.1
B.Capital Revenue 784 1,467.0 7,233.0
revenue from privatization 784 1,467.0 7,233.0
Total expenditure 7,488.0 94,809.0 223,442.9
A.National Economy 1,880.9 11,328.0 37,956.8
B.SocioCultural andScientific projects 2,460.1 28,594.0 92,405.7
Education andScience 1,309.5 14,417.0 47,696.7
Social Security 268.1 3,193.9 7,837.0
Health, Tourism, andSport 687.4 9,282.0 29,954.4
C.Foreign Economic Activity 5.0 3,344.7 5,558.0
D.Funds 81.9 3,782.0 7,900.5
E.Defence 330.7 3,775.9 10,830.0
F.Public Order andSafety 413.2 5,387.1 15,800.4
G.State Authorities andAdministration 388.0 4,240.0 9,981.9
H.Repayment ofInternal Government Debt 97.6 17,518.0 7,801.6
I.Repayment ofExternal Debt 1917.9 10,023.5
J.Subsidies 582.7 1,193.4
L.Other expenditures 14,338.3 16,347.5
Debt repayment tobudget 2,408.6 3,173.4
Overall balance -385.3 -8,161.5 -23,067.4WT/ACC/KAZ/3
Page59
Budget Items 1993 1994 1995
Budget Financing 385.3 8,161.5 23,067.4
A.Domestic 867.8 5,900.0 4,484.9
B.External 177.3 6,378.0 18,582.5
Table A1.6 -Budget (inpercent ofGDP)
Budget Items 1993 1994 1995
Total Revenue 26.5% 18.7% 19.9%
A.Current revenue 23.5% 18.4% 19.1%
A.1Taxrevenue 12.5% 8.2% 10.9%
Value added tax 4.3% 2.4% 3.4%
Excise tax 0.6% 0.5% 0.6%
Corporate tax 4.7% 3.2% 3.6%
Personal tax 2.8% 1.8% 2.6%
Local tax 0.0% 0.1% 0.3%
Capital gains tax 0.0% 0.0% 0.0%
Land tax 0.1% 0.1% 0.2%
Other taxes 0.0% 0.1% 0.2%
A.2Revenue from foreign economic activities 0.5% 1.4% 2.3%
Customs levies 0.1% 0.1% 0.1%
Import Customs duties 0.1% 0.1% 0.3%
Export Customs duties 0.3% 1.2% 0.9%
Barter operations 0.0% 0.0% 0.0%
Other revenue from foreign economic activity 0.0% 0.0% 1.0%
A.3Other Current Revenue 10.6% 8.8% 5.9%
Rentpayment 0.2% 0.0% 0.1%
Revenue from bonuses androyalties 0.0% 0.0% 0.4%
Profit ofNBK 1.3% 1.8% 0.1%
Revenue from NBK 0.0% 1.9% 0.3%
Purpose-oriented funds revenue 3.7% 2.8% 2.1%
Feesandother non-tax revenues 3.1% 1.7% 1.8%
Other current revenue 2.3% 0.5% 1.2%
B.Capital Revenue 2.9% 0.3% 0.7%
revenue from privatization 2.9% 0.3% 0.7%
Total expenditure 27.9% 21.1% 22.5%
A.National Economy 7.0% 2.5% 3.8%
B.SocioCultural andScientific projects 9.2% 6.4% 9.3%
Education andScience 4.9% 3.2% 4.8%
Social Security 1.0% 0.7% 0.8%WT/ACC/KAZ/3
Page60
Budget Items 1993 1994 1995
Health, Tourism, andSport 2.6% 2.1% 3.0%
C.Foreign Economic Activity 0.0% 0.7% 0.6%
D.Funds 0.3% 0.8% 0.8%
E.Defense 1.2% 0.8% 1.1%
F.Public Order andSafety 1.5% 1.2% 1.6%
G.State Authorities andAdministration 1.4% 0.9% 1.0%
H.Repayment ofInternal Government Debt 0.4% 3.9% 0.8%
I.Repayment ofExternal Debt 0.0% 0.4% 1.0%
J.Subsidies 0.0% 0.1% 0.1%
L.Other expenditures 0.0% 3.2% 1.6%
Debt repayment tobudget 0.0% 0.5% 0.3%
Overall balance -1.4% -1.8% -2.3%
Budget Financing 1.4% 1.8% 2.3%
A.Domestic 3.2% 1.3% 0.5%
B.External 0.7% 1.4% 1.9%
(iv) Production andconsumption ofbasic goods
Table A1.7 -Production (P)andConsumption (C)ofbasic goods
Basic Goods 1993 1994 1995
P C P C P C
Food products
Meat andmeatproducts
(thousands tons)1,311.5 1,000.1 1,206.6 941.4 912.8 847.2
Milk andmilkproducts,
thousands tons5,576.5 4,410.6 5,296.0 4,118.6 4,461.2 3,754.4
Eggs, Million. units 3,288.2 2,883.9 2,629.3 2,353.5 1,823.2 1,661.2
Vegetables, thousands tons 990.0 848.2 927.2 891.0 942.0 897.1
Bread andbread products,
thousands tons21,631.0 3,053.5 16,454.0 3,328.5 9,505.0 2,923.7
Fruits andberries, thousands tons 124.9 154.8 137.0 169.8 166.0 216.0
Potatoes, thousands tons 2,296.3 1,357.1 2,040.2 1,260.1 1,720.0 1,046.6
Sugar, thousands tons 202.4 181.4 110.7 311.0 107.7 299.0
Vegetable oil,thousands tons 43.8 44.8 43.4 121.0 43.2 122.9
Light industry goods
Fabric, Million. square m. 188.1 133.2 107.4 55.3 30.5 7.8
Knitted products, thousands units 50,161.0 54.5 29,077.2 24.3 9,043.0 7.18
Footwear, thousands pairs 16,306.0 35.6 7,713.8 9.17 2,129.0 2.2WT/ACC/KAZ/3
Page61
Basic Goods 1993 1994 1995
Other goods
TVsets,thousands units 20.1 55.5 40.9 49.0 41.0 49.1
Refrigerators andfreezers
thousands units12.9 23.6 33.1 18.8 10.9 17.0
Washing machines, thousands
units255.4 180.8 87.7 38.9 46.3 34.9
* datanotavailable forthisyear
** datanotavailable forthese types ofgoods
(v) Annual changes inprices
Table A1.8 -Annual changes inprices (inpercent ofprevious year)
1993 1994 1995
Allgoods (average) 2,265.0 1,258.3 160.3
Food 2,297.1 1,155.7 158.7
Bread andcereals 1,943.7 2,221.2 176.6
Meat, poultry andfish 2,144.1 1,076.5 168.4
Eggs andmilkproducts 2,152.7 2,469.3 181.2
Oilandfats 1,894.1 1,476.9 167.2
Fruits andvegetables 3,405.8 691.0 136.8
Sugar, coffee, tea,spices 1,816.5 968.6 137.2
Tobacco 2,314.1 362.9 143.9
Clothes andfootwear 1,605.6 1,169.3 133.5
Rent, water, electric power 6,159.7 3,834.6 341.4
Household goods 1,930.1 985.2 133.3
Medication 2,142.0 2,556.3 145.2
Transport andcommunication 2,691.3 1,734.9 197.0
Recreation, education, culture 2,716.7 1,690.7 162.1
Personal Care 3,927.3 1,058.7 135.2
(vi) Employment indifferent sectors
Table A1.9 -Employment indifferent Sectors oftheNational Economy (inpercent)
Sector 1993 1994 1995
Total employed workforce (thousands) 6,926.3 6,581.8 6,551.5
Industry 17.25 17.53 16.00
Agriculture 16.00 17.62 10.00
Services 44.74 41.30 40.00
Construction 7.10 6.26 5.00WT/ACC/KAZ/3
Page62
Sector 1993 1994 1995
Communications 1.14 1.29 1.00
Financial 0.75 0.77 1.00
Trade 4.24 4.38 4.00
Transportation 7.17 6.72 6.00
Other Services 24.34 21.88 23.00
Other 22.01 23.55 34.00
(vii) Levels ofemployment
Table A1.10 Levels ofEmployment (thousands)
1993 1994 1995
Population 16,964.0 16,810.5 16,612.2
Total Labor Resources* 9,379.5 9,240.5 9,153.0
Economically Active Population** 6,963.4 7,118.2 7,359.8
Employed 6,926.3 6,581.8 6,551.5
State sector*** **** 3,531.7 2,796.6
Unemployed 37.1 536.4 808.3
Unemployment (inpercent) 0.53% 7.53% 10.97%
* includes students andhomemakers
** excludes students andhomemakers
*** includes stateenterprises andpublic andgovernment bodies andinstitutions
**** datanotavailable forthisyear
(viii) Balance ofpayments
Table A1.11 -Balance ofPayments (inmln.US$)
1994 1995
A.CURRENT ACCOUNT -877.36 -516.4
Trade balance -922.9 -222.5
Export (FOB) 3332.9 5196.6
Imports (FOB) -4255.8 -5419.1
Service, net -2.2 -204.6
Transportation 69.2 87.2
Passenger 15.1 20.7
Other Services -71.4 -291.8
Travel -97.5 -158.1
Income -49.0 -149.9
Interest -49.0 -144.0WT/ACC/KAZ/3
Page63
1994 1995
Other Income 0.0 -5.9
Current transfers 96.8 60.6
B.CAPITAL &FINANCIAL ACCOUNT -736.7 487.6
Capital transfers -1065.4 -380.6
Migrants transfers -1065.4 -380.6
Other transfers 0.0 0.0
Direct investment 635.0 723.0
Other investment 726.0 497.1
Trade credits 439.1 119.2
Drawings 542.8 256.0
Repayment (paid) -103.2 -118.6
Arrears onPrincipal Repayment -0.5 -18.3
Loans 287.0 377.9
Drawings 274.6 359.3
Repayment (accrued) 12.4 18.6
Other capital -1032.3 -351.9
C.NET ERRORS &OMISSIONS 1153.3 135.8
D.OVERALL BALANCE -460.6 107.0
E.FINANCING 460.6 106.9
International reserves -403.4 -252.3
Monetary gold 0.0 0.0
Netassetinforeign exchange -403.4 -252.3
Foreign assets inNBK -403.4 -252.3
Banks 0.0 0.0
IMFCredit 192.4 141.1
Exceptional financing 671.6 4.3
Interest payable 15.8 -13.5
Arrears onPrincipal 0.5 17.8
Debt among enterprises 655.3 0.0
(ix) Foreign exchange
Table A1.12 -Exchange Rate
US$ DM 1000 RR
1993 Average 2.58
1994 Month I 7.88 5.60 5.58
II 11.43 6.57 7.04
III 16.71 9.85 9.71WT/ACC/KAZ/3
Page64
US$ DM 1000 RR
IV 23.55 13.96 13.19
V 35.64 21.45 17.69
VI 41.73 25.44 22.70
VII 44.66 29.75 21.68
VIII 45.7 29.48 20.94
IX 47.01 30.49 21.03
X 48.67 32.18 16.51
XI 51.00 33.65 15.86
XII 53.47 34.35 16.26
1994 Average 35.62 22.78 15.73
1995 Month I 55.42 36.23 14.83
II 58.73 39.05 13.91
III 60.53 42.84 12.88
IV 62.06 45.22 12.49
V 63.10 45.40 12.18
VI 63.54 45.71 13.42
VII 62.58 45.50 13.89
VIII 56.62 39.70 13.02
IX 59.81 40.87 13.40
X 61.47 43.54 13.69
XI 63.29 45.32 14.01
XII 63.97 44.58 13.86
1995 Average 60.93 42.83 13.47
1996 Month I 64.41 44.3 13.83
II 65.25 44.57 13.90
III 65.21 44.51 13.81
IV 65.55 43.99 13.80WT/ACC/KAZ/3
Page65
(b) Foreign trade statistics
(i) Foreign trade (aggregates atthetwo-digit HSlevel) onthebasis ofcargo customs
declarations
Table A1.13 -Foreign Trade (invalue andpercentage) in1995
HS Chapter Export
(thousands
US$)Import
(thousands
US$)%of
total
export%of
total
import
01 Liveanimals 4,347.4 426.4 0.09 0.01
02 Meat andedible meatoffal 59,595.4 7,550.1 1.20 0.20
03 Fishandcrustaceans, molluscs and
other aquatic invertebrates10,792.4 4,229.8 0.22 0.11
04 Dairy produce; birds'eggs; natural
honey21,698.3 16,342.5 0.44 0.44
05 Products ofanimal origin, not
elsewhere specified orincluded3,706.9 142.9 0.07 0.00
06 Livetreesandother plants 16.0 58.9 0.00 0.00
07 Edible vegetables andcertain roots and
tubers13,566.5 3,391.2 0.27 0.09
08 Edible fruitandnuts 627.9 8,674.5 0.01 0.23
09 Coffee, tea,mateandspices 402.2 33,598.0 0.01 0.90
10 Cereals 331,796 2,263.6 6.67 0.06
11 Products ofthemilling industry 42,614.4 1,542.1 0.86 0.04
12 Oilseeds andoleaginous fruits 3,077.5 5,866.9 0.06 0.16
13 Lac;gums, resins andother vegetable
sapsandextracts427.6 609.6 0.01 0.02
14 Vegetable plaiting materials 15,176.6 7,102.3 0.31 0.19
15 Animal orvegetable fatsandoils 2,833.6 20,766.9 0.06 0.55
16 Preparations ofmeat, offishorof
crustaceans, molluscs23,737.3 8,380.2 0.48 0.22
17 Sugars andsugar confectionery 4,792.6 125,136.0 0.10 3.34
18 Cocoa andcocoa preparations 444.8 14,269.6 0.01 0.38
19 Preparations ofcereals, flour, starch or
milk; pastry cooks 'products5,159.0 31,694.0 0.10 0.85
20 Preparations ofvegetables, fruit, nuts
orother parts ofplants3,655.2 14,295.8 0.07 0.38
21 Miscellaneous edible preparations 787.2 12,176.2 0.02 0.33
22 Beverages, spirits andvinegar 7,402.8 43,940.2 0.15 1.17
23 Residues andwaste from thefood
industries8,934.0 1,068.8 0.18 0.03
24 Tobacco andmanufactured tobacco
substitutes4,894.6 39,229.7 0.10 1.05WT/ACC/KAZ/3
Page66
HS Chapter Export
(thousands
US$)Import
(thousands
US$)%of
total
export%of
total
import
25 Salt;sulphur; earths andstone 81,894.8 28,961.4 1.65 0.77
26 Ores, slagandash 118,752.3 109,499.3 2.39 2.93
27 Mineral fuels, mineral oilsand
products1,184,198 927,041.9 23.80 24.77
28 Inorganic chemicals 365,081 86,797.1 7.34 2.32
29 Organic chemicals 15,047.8 56,181.0 0.30 1.50
30 Pharmaceutical products 10,792.7 25,773.4 0.22 0.69
31 Fertilizers 46,371.6 4,063.1 0.93 0.11
32 Tanning ordyeing extracts 2,202.3 23,244.1 0.04 0.62
33 Essential oilsandresinoids; perfumery
cosmetic ortoilet preparations1,730.5 16,671.1 0.03 0.45
34 Soap, organic surface-active agents 1,667.8 29,711.0 0.03 0.79
35 Albuminoidal substances 6,353.8 2,481.4 0.13 0.07
36 Explosives; pyrotechnic products 207.1 29,831.2 0.00 0.80
37 Photographic orcinematographic goods 14.8 1,970.2 0.00 0.05
38 Miscellaneous chemical products 12,388.8 47,379.5 0.25 1.27
39 Plastics andarticles thereof 42,453.7 34,501.7 0.85 0.92
40 Rubber andarticles thereof 10,464.8 89,620.0 0.21 2.39
41 Rawhides andskins andleather 37,398.2 931.5 0.75 0.02
42 Articles ofleather 533.8 2,527.6 0.01 0.07
43 Furskins andartificial fur 3,223.2 925.7 0.06 0.02
44 Wood andarticles ofwood 1,968.8 62,412.5 0.04 1.67
45 Cork andarticles ofcork 1,013.7 11.9 0.02 0.00
46 Manufactures ofstraw 12.2 4.2 0.00 0.00
47 Pulpofwood orofother fibrous
cellulosic material212.6 3,924.4 0.00 0.10
48 Paper andpaperboard 3,075.6 70,761.9 0.06 1.89
49 Printed books, newspapers, pictures
andother products oftheprinting
industry443.0 16,231.6 0.01 0.43
50 Silk 567.9 1,188.4 0.01 0.03
51 Wool, fineandcoarse animal hair 51,677.6 3,302.4 1.04 0.09
52 Cotton 45,924.1 8,511.1 0.92 0.23
53 Other vegetable textile fibre 71.8 940.7 0.00 0.03
54 Man-made filaments 644.0 3,155.7 0.01 0.08
55 Man-made staple fibres 6,105.3 6,249.1 0.12 0.17
56 Wadding, feltandnon-wovens 6,709.8 7,387.8 0.13 0.20WT/ACC/KAZ/3
Page67
HS Chapter Export
(thousands
US$)Import
(thousands
US$)%of
total
export%of
total
import
57 Carpets andother textile
floor-coverings413.1 2,932.9 0.01 0.08
58 Special woven fabrics 223.0 2,113.1 0.00 0.06
59 Impregnated, coated, covered or
laminated textile fabrics1,339.2 6,506.1 0.03 0.17
60 Knitted orcrocheted fabrics 131.6 283.3 0.00 0.01
61 Articles ofapparel andclothing
accessories, knitted orcrocheted6,824.0 15,432.7 0.14 0.41
62 Articles ofapparel andclothing
accessories, notknitted orcrocheted4,088.4 22,796.3 0.08 0.61
63 Other made uptextile articles 2,542.0 13,132.3 0.05 0.35
64 Footwear, gaiters andthelike 3,379.2 33,177.6 0.07 0.89
65 Headgear andparts thereof 96.8 503.4 0.00 0.01
66 Umbrellas andparts thereof 62.0 38.3 0.00 0.00
67 Prepared feathers anddown 0.0 31.0 0.00 0.00
68 Articles ofstone, plaster, cement 14,675.4 15,874.2 0.29 0.42
69 Ceramic products 4,215.3 32,918.2 0.08 0.88
70 Glass andglassware 938.1 15,192.3 0.02 0.41
71 Natural orcultured pearls, precious
stones, precious metals11,494.5 5,204.0 0.23 0.14
72 Ironandsteel 958,766.1 76,560.7 19.27 2.05
73 Articles ofironorsteel 67,244.3 165,345.8 1.35 4.42
74 Copper andarticles thereof 612,327.2 12,800.7 12.31 0.34
75 Nickel andarticles thereof 151,136.2 32.0 3.04 0.00
76 Aluminum andarticles thereof 29,249.3 17,137.5 0.59 0.46
78 Lead andarticles thereof 32,452.0 6,917.0 0.65 0.18
79 Zincandarticles thereof 145,025.0 1,705.7 2.91 0.05
80 Tinandarticles thereof 0.0 8,431.2 0.00 0.23
81 Other basemetals 54,784.6 518.0 1.10 0.01
82 Tools, implements, cutlery, spoons,
forks ofbasemetal1,763.8 7,839.7 0.04 0.21
83 Miscellaneous articles ofbasemetal 4,336.8 13,033.5 0.09 0.35
84 Nuclear reactors, boilers, machinery
andmechanical appliances95,500.2 522,782.1 1.92 13.97
85 Electrical machinery andequipment 45,343.7 237,152.7 0.91 6.34
86 Railway ortramway locomotives,
rolling-stock andparts thereof2,089.1 48,267.8 0.04 1.29
87 Vehicles andparts 49,955.9 215,647.8 1.00 5.76
88 Aircraft, spacecraft, andparts thereof 3,750.1 2,727.3 0.08 0.07WT/ACC/KAZ/3
Page68
HS Chapter Export
(thousands
US$)Import
(thousands
US$)%of
total
export%of
total
import
89 Ships, boats andfloating structures 841.8 70.5 0.02 0.00
90 Optical, photographic instruments, etc. 9,903.6 79,181.6 0.20 2.12
91 Clocks andwatches andparts thereof 7.4 1,274.8 0.00 0.03
92 Musical instruments 254.5 129.7 0.01 0.00
93 Arms andammunition 23,612.7 1,571.5 0.47 0.04
94 Furniture; bedding andthelike 6,425.9 45,726.7 0.13 1.22
95 Toys, games andsports requisites 378.5 3,916.8 0.01 0.10
96 Miscellaneous manufactured articles 230.0 2,244.6 0.00 0.06
97 Work ofart,collectors 'pieces and
antiques0.2 0.2 0.00 0.00
Total 4,975,491.10 3,742,101.7 100.00 100.00
(ii) Export statistics
Table A1.14 -Export ofKazakstan (mln.US$)
1993 1994 1995
Export 3,458.8 3,230.7 4,975.5
Table A1.15 -Main export items (byvalue)
Goods (share oftotalexport) inpercent
1994 1995
Wheat 2 5
Coal 10 5
Oilandgascondensate 16 14
Ferro-alloys 5 6
Rolled ferrous metals 10 10
Copper andcopper alloys 13 11
Zincandzincalloys 3 3WT/ACC/KAZ/3
Page69
Table A1.16 -Main exports items (byvolume)
Goods 1994 1995 95to94
Wheat, thousands tons 2,382.1 2,485.6 104%
Chromium ores, thousand tons 1,216.2 1,029.6 85%
Coal, thousands tons 22,406.8 12,951.0 58%
Oilandgascondensate, thousand tons 9,444.8 11,250.0 119%
Ferro-alloys, thousands tons 468.3 578.3 123%
Rolled ferrous metals, thousand tons 1,490.8 1,694.0 114%
Copper andcopper alloys, thousand tons 301.1 216.6 72%
Zincandzincalloys, thousand tons 151.0 147.7 98%
Table A1.17 -Main export partners (1995)
Country Exports (mln. US$) %oftotalexports
Russia 2,102.6 42.3%
Netherlands 492.8 9.9%
China 294.2 5.9%
Switzerland 186.7 3.8%
Germany 170.4 3.4%
Uzbekistan 159.5 3.2%
Italy 142.6 2.9%
Ukraine 121.4 2.4%
Lithuania 120.8 2.4%
Great Britain 111.7 2.2%
Turkey 70.8 1.4%
Belarus 57.5 1.2%
Turkmenistan 51.1 1.0%
USA 44.7 0.9%
(iii) Import statistics
Table A1.18 -Import ofKazakstan (mln. US$)
1993 1994 1995
Import 3,086.9 3,493.8 3,742.1WT/ACC/KAZ/3
Page70
Table A1.19 -Main imports items (byvalue)
Goods (share oftotalimport) inpercent
1994 1995
Sugar 2 3
OresandConcentrates 1 3
Mineral fuel,oil,oilproducts 28 25
Articles ofironorsteel 4 4
Nuclear reactors andmachinery 13 14
Electrical machinery andequipment 8 6
Vehicles andparts 7 6
Table A1.20 -Main import items (byvolume)
Goods 1994 1995 95to94
Sugar, thousands tons 162.1 267.0 164%
Tea,thousands tons 40.3 13.8 32%
Oresandconcentrates, thousands tons 287.7 312.2 109%
Coal, thousands tons 406.0 1,192.6 299%
Coke, thousands tons 716.8 841.9 118%
Oilproducts, thousands tons 1,922.3 1,700.4 88%
Electric energy, Million KWH 13031.0 7,392.7 57%
Natural gas,Million cubic m 7173.1 9,120.9 127%
Table A1.21 -Main import partners (1995)
Country imports
(mln. US$)%oftotalimports
Russia 1,834.1 49.0%
Uzbekistan 263.5 7.8%
Turkmenistan 230.6 6.2%
Germany 201.5 5.4%
Turkey 123.9 3.3%
Ukraine 86.7 2.3%
Great Britain 82.8 2.2%
Belarus 79.8 2.1%
USA 72.5 1.9%
Switzerland 57.3 1.5%
China 34.2 0.9%
Netherlands 30.9 0.83%WT/ACC/KAZ/3
Page71
Country imports
(mln. US$)%oftotalimports
Italy 30.1 0.80%
Lithuania 18.0 0.53%
(iv) Imports from main suppliers preferably atatariff linelevel
Table A1.22 -Main imports from Russia (1994 and1995):
value ofimport (thousands US$) andshare ofimport from Russia (inpercent)
HS
Code Chapter1994 1995
Value Share Value Share
17 Sugars andsugar confectionery 9,364 0.7% 66,222
26 Ores,slagandash 4,137 0.3% 9,436 0.5%
27 Mineral fuels, mineral oilsandproducts 393,300 31.2% 441,557 24.1%
28 Inorganic chemicals 31,302 2.5% 79,550 4.3%
40 Rubber andarticles thereof 32,571 2.6% 72,281 3.9%
73 Articles ofironorsteel 83,983 6.7% 139,992 7.6%
84 Nuclear reactors 90,989 7.2% 201,791 11.0%
85 Electrical machinery andequipment 123,258 9.8% 104,850 5.7%
87 Vehicles andparts 121,254 9.6% 109,954 6.0%
90 Optical, photographic instruments, etc. 6,887 0.5% 15,805 0.9%
25 Salt;sulphur; earths andstone 8,305 0.7% 24,939 1.4%
29 Organic chemicals 24,637 2.0% 47,524 2.6%
44 Wood andarticles ofwood 34,018 2.7% 56,732 3.1%
48 Paper andpaperboard 22,755 1.8% 31,961 1.7%
69 Ceramic products 9,061 0.7% 27,057 1.5%
72 Ironandsteel 62,703 5.0% 68,748 3.7%
86 Railway locomotives 22,733 1.8% 32,212 1.8%
Other 180,743 14.3% 303,489 16.5%WT/ACC/KAZ/3
Page72
Table A1.23- Main imports from Uzbekistan (1994 and1995):
value ofimport (thousands US$) andshare ofimport from Uzbekistan (inpercent)
HS
CodeChapter 1994 1995
Value Share Value Share
7 Edible vegetables 1,681 0.6% 632 0.2%
14 Vegetable plaiting materials 734 0.3% 5,978 2.3%
20 Preparations ofvegetables, fruits, nutsand
other parts ofplants1,846 0.7% 2,888 1.1%
27 Mineral fuels, mineral oilsandproducts
(natural gas,electric energy)234,600 87.1% 208,859 79.3%
28 Inorganic chemicals 1,140 0.4% 4,673 1.8%
31 Fertilizers 736 0.3% 2,759 1.0%
52 Cotton 1,559 0.6% 2,758 1.0%
56 Wadding, feltandnon-wovens 617 0.2% 3,808 1.4%
84 Nuclear reactors, boilers, machinery 3,907 1.5% 6,156 2.3%
Other 22,5801 8.3% 24,989 9.5%
Table A1.24 -Main imports from Turkmenistan (1994 and1995):
value ofimport (thousands US$) andshare ofimport from Turkmenistan (inpercent)
HS
CodeChapter 1994 1995
Value Share Value Share
27 Mineral fuels, mineral oilsandproducts
(natural gas)261,200 99.5% 229,108 99.4%
Other 1,300 0.5% 1,471 0.6%
Table A1.25 -Main imports from Germany (1994 and1995):
value ofimport (thousands US$) andshare ofimport from Germany (inpercent)
HS
CodeChapter 1994 1995
Value Share Value Share
4 Dairy produce 887 0.3% 1,061 0.5%
12 Oilseeds andoleaginous fruits 134 0.0% 2,339 1.2%
22 Beverages, spirits andvinegars 14,874 5.1% 5,796 2.8%
24 Tobacco 94 0.0% 5,957 3.0%
40 Rubber andarticles thereof 939 0.3% 1,798 0.8%
38 Miscellaneous chemical products 9,803 3.3% 2,747 1.4%
33 Essential oilsandresinoids; perfumery 2,809 1.0% 3,762 1.9%
34 Soap 774 0.3% 2,686 1.3%
39 Plastics andarticles thereof 2,871 1.0% 5,535 2.7%WT/ACC/KAZ/3
Page73
HS
CodeChapter 1994 1995
Value Share Value Share
48 Paper andpaperboard 3,007 1.0% 7,215 3.6%
64 Footwear 12,486 4.2% 5,745 2.9%
84 Nuclear reactors, boilers, machinery 102,002 34.7% 66,612 33.1%
85 Electrical machinery andequipment 40,925 13.9% 25,523 12.7%
86 Railway locomotives 1,566 0.5% 8,597 4.3%
87 Vehicles andparts 16,782 5.7% 9,073 4.5%
90 Optical, photographic instruments, etc. 16,420 5.6% 9,289 4.6%
94 Furniture; bedding andthelike 6,451 2.2% 4,617 2.3%
Other 61,176 20.8% 33,146 16.4%
Table A1.26 -Main imports from Turkey (1994 and1995):
value ofimport (thousands US$) andshare ofimport from Turkey (inpercent)
HS
CodeChapter 1994 1995
Value Share Value Share
15 Animal orvegetable fatsandoils 9,781 11.2% 2,447 2.0%
17 Sugars andsugar confectionery 1,053 1.2% 4,291 3.5%
18 Cocoa andcocoa preparations 1,356 1.6% 1,398 1.1%
19 Preparations ofcereals, flour, starch or
milk 5,317 6.1% 17,215 13.9%
22 Beverages, spirits andvinegars 4,668 5.4% 2,329 1.9%
34 Soap, organic surface-active agents 4,171 4.8% 6,822 5.5%
39 Plastics andarticles thereof 1,568 1.8% 2,915 2.4%
73 Articles ofironorsteel 4,326 5.0% 3,484 2.8%
84 Boilers, machinery, nuclear reactors 6,468 7.4% 33,707 27.2%
85 Electrical machinery andequipment 9,478 10.9% 11,247 9.1%
87 Vehicles andparts 5,794 6.7% 12,668 10.2%
94 Furniture; bedding andthelike 2,387 2.7% 3,251 2.6%
Other 30,633 35.2% 22,091 17.8%WT/ACC/KAZ/3
Page74
(v) Trade bygeographic areas (main trade partners) for1995
Table A1.27 -Trade withEurope (thousands US$) andshare oftotaltrade (inpercent)
Turnover Share Export Import
Europe 2,070,180 23.75% 1,406,412.8 663,767.1
Netherlands 523,720 6.01% 492,799 30,921
Germany 371,889 4.27% 170,391 201,498
Switzerland 244,031 2.80% 186,712 57,319
Great Britain 194,504 2.23% 111,679 82,825
Italy 172,604 1.98% 142,531 30,053
Finland 81,842 0.94% 50,502 31,339
Ireland 79,453 0.91% 71,646 7,807
Austria 67,281 0.77% 15,657 51,624
Czech Republic 49,087 0.56% 26,727 22,360
Poland 38,811 0.45% 38,044 20,767
France 37,681 0.43% 11,306 26,375
Hungary 29,780 0.34% 8,367 21,414
Table A1.28 -Trade withAsia (thousands US$) andshare oftotaltrade (inpercent)
Turnover Share Export Import
Asia 992,985 11.39% 644,257 340,728
China 328,368 3.77% 294,154 34,214
Turkey 194,678 2.23% 70,810 123,868
Republic ofKorea 134,823 1.55% 91,625 43,198
Mongolia 63,065 0.72% 2,391 60,674
Iran 62,535 0.72% 46,514 14,022
Japan 53,364 0.61% 44,987 8,377
Thailand 40,153 0.46% 39,853 300
Taiwan 19,982 0.23% 19,310 672
Israel 15,573 0.18% 150 15,423
Cyprus 14,900 0.17% 10,710 4,191
India 14,689 0.17% 533 14,157
Singapore 14,132 0.16% 1,099 13,032WT/ACC/KAZ/3
Page75
Table A1.29 -Trade withAmerica (thousands US$) andshare oftotaltrade (inpercent)
Turnover Share Export Import
America 228,325 2.62% 109,739 118,586
USA 117,205 1.34% 44,683 72,522
Bahamas 55,284 0.63% 55,253 31
Chile 36,249 0.42% - 36,249
Canada 10,316 0.12% 2,419 7,897
Table A1.30 -Trade withAustralia (thousands US$) andshare oftotaltrade (inpercent)
Turnover Share Export Import
Australia 3,067 0.04% 140 2,926
Table A1.31 -Trade withCIS-countries (thousands US$) andshare oftotaltrade (inpercent)
Turnover Share Export Import
CIS-countries 5,201,310 59.67% 2,631,460 2,569,849
Russia 3,936,727 45.16% 2,102,631 1,834,096
Uzbekistan 423,027 4.85% 159,542 263,485
Turkmenistan 281,648 3.23% 51,069 230,579
Ukraine 208,109 2.39% 121,367 86,742
Belarus 137,240 1.57% 57,473 79,767
Kyrgyzstan 101,652 1.17% 73,274 28,377
Tadjikistan 52,215 0.60% 40,774 11,442
Azerbaijan 47,360 0.54% 22,420 24,940
Moldova 8,021 0.09% 2,467 5,554
Armenia 2,853 0.03% 192 2,661
Georgia 2,460 0.03% 252 2,208
Table A1.32 -Trade withBaltic countries (thousands US$) andshare oftotaltrade (inpercent)
Turnover Share Export Import
Baltic countries 206,018 2.36% 169,714 36,304
Lithuania 138,795 1.59% 120,807 17,988
Latvia 44,706 0.51% 33,162 11,545
Estonia 22,517 0.26% 15,746 6,771WT/ACC/KAZ/3
Page76
Table A1.33 -Main trading partners (1995)
Country Turnover (mln. US$) %oftotalturnover
Russia 3,936.7 45.2%
Netherlands 523.7 6.0%
Uzbekistan 423.0 4.9%
Germany 371.9 4.2%
China 328.4 3.8%
Turkmenistan 281.6 3.2%
Switzerland 244.0 2.7%
Ukraine 208.1 2.4%
Turkey 194.6 2.2%
Great Britain 194.5 2.2%
Italy 172.6 2.0%
Lithuania 138.8 1.6%
Belarus 137.2 1.6%
USA 117.2 1.3%
Table A1.34 Export-Import ofservices (mln. US$)
1993 1994 1995
Export Import Export Import Export Import
Total 810.1 402.1 430.4 472.9 533.5 752.3
(a) Transportation 726.4 279.1 305.5 245 339.2 260.5
- cargo 455.7 274.9 266.8 220.6 291.4 226.8
- passengers 11.2 4.2 12.1 6.5 20.7 8.6
- other 259.5 0 26.6 17.9 27.1 25.1
(b) Tourism 48.2 40.9 66.6 141.2 132.4 296.2
(c) Communications 8.1 10.2 38 20.6 35.2 53.6
(d) official services 5.8 1.6 8.3 10.3 6.2 45.5
(e) technical assistance 0 33.3 0 32.4 0 60
(f) other 21.6 37 12 23.4 20.5 36.5WT/ACC/KAZ/3
Page77
Table A1.35 Trade-Weighted Average Import Tariff Rates
Chapter 1 0.12% Chapter 34 14.18% Chapter 67 20.00%
Chapter 2 20.82% Chapter 35 4.96% Chapter 68 15.00%
Chapter 3 5.16% Chapter 36 30.00% Chapter 69 24.59%
Chapter 4 13.84% Chapter 37 9.06% Chapter 70 14.42%
Chapter 5 10.00% Chapter 38 0.80% Chapter 71 34.32%
Chapter 6 15.86% Chapter 39 16.96% Chapter 72 4.99%
Chapter 7 12.67% Chapter 40 8.85% Chapter 73 19.21%
Chapter 8 19.51% Chapter 41 5.00% Chapter 74 5.00%
Chapter 9 5.61% Chapter 42 23.90% Chapter 75 20.00%
Chapter 10 0.31% Chapter 43 9.84% Chapter 76 9.54%
Chapter 11 10.00% Chapter 44 19.90% Chapter 77 0.00%
Chapter 12 5.00% Chapter 45 0.00% Chapter 78 5.00%
Chapter 13 4.90% Chapter 46 25.00% Chapter 79 5.00%
Chapter 14 0.42% Chapter 47 15.00% Chapter 80 5.00%
Chapter 15 12.81% Chapter 48 8.69% Chapter 81 15.00%
Chapter 16 72.61% Chapter 49 0.68% Chapter 82 12.87%
Chapter 17 13.67% Chapter 50 2.65% Chapter 83 25.00%
Chapter 18 34.00% Chapter 51 20.00% Chapter 84 6.98%
Chapter 19 14.09% Chapter 52 9.84% Chapter 85 0.00%
Chapter 20 15.96% Chapter 53 9.69% Chapter 86 0.00%
Chapter 21 13.06% Chapter 54 10.64% Chapter 87 24.78%
Chapter 22 185.63% Chapter 55 5.00% Chapter 88 3.17%
Chapter 23 2.75% Chapter 56 2.26% Chapter 89 30.00%
Chapter 24 18.78% Chapter 57 30.00% Chapter 90 2.52%
Chapter 25 5.00% Chapter 58 24.91% Chapter 91 21.55%
Chapter 26 0.00% Chapter 59 5.18% Chapter 92 5.00%
Chapter 27 5.00% Chapter 60 10.00% Chapter 93 100.00%
Chapter 28 5.24% Chapter 61 16.73% Chapter 94 21.25%
Chapter 29 0.00% Chapter 62 19.96% Chapter 95 17.01%
Chapter 30 0.00% Chapter 63 20.70% Chapter 96 19.62%
Chapter 31 10.00% Chapter 64 19.86% Chapter 97 0.00%
Chapter 32 5.00% Chapter 65 20.00%
Chapter 33 15.21% Chapter 66 20.00%
(c) Government procurement
Therepublic ofKazakstan doesnotmaintain anystatistics ongovernment procurement except
procurement ofgrain forstatereserves. Thevalue ofstateprocurement ofgrain wasapproximately
Tenge 5.3Billion in1994 andTenge 2.6Billion in1995. Thegovernment plans toprocure grain
intheamount ofTenge 6.0Billion in1996.WT/ACC/KAZ/3
Page78
ANNEX 2
LIST OFLAWS AND LEGAL ACTS
General legislation under theresponsibility ofallstate agencies are:
- Constitution oftheRepublic ofKazakstan ofAugust 30,1995
- Civil Code ofRepublic ofKazakstan ofDecember 27,1994
1. Laws andlegalactsregulating theactivity ofthecustoms authorities; responsible agencies.
Laws andlegal acts Responsible agencies
TheKazakstan SSRLaw“Oncustoms tariffs and
duties ”of24December 1991Customs Committee
Ministry ofFinance
Decree ofthePresident oftheRepublic of
Kazakstan having theforce oflaw“Onthecustoms
affairs intheRepublic ofKazakstan ”of
20July1995; No.2368Customs Committee
Decree ofthePresident oftheRepublic of
Kazakstan “Onadditional measures fororganizing
theforeign economic activity oftheRepublic of
Kazakstan ”of30July1993; No1311Customs Committee
Ministry ofEconomy
Ministry ofIndustry andTrade
Decree ofthePresident theRepublic ofKazakstan
“Onliberalization offoreign economic activities ”
of11January 1995; No.2021Customs Committee
Ministry ofEconomy
Ministry ofIndustry andTrade
Decree ofthePresident theRepublic ofKazakstan
“Onestablishing theCustoms Committee under the
Cabinet ofMinisters oftheRepublic ofKazakstan ”
of1April 1995; No2160Customs Committee
Resolution ofthePresident theRepublic of
Kazakstan “Onimplementation oftheDecree ofthe
President oftheRepublic ofKazakstan having force
oflaw“Onthecustoms affairs intheRepublic of
Kazakstan ”of20July1995; No.2369Customs Committee
Government Resolution “Onexcise ratesfor
imported goods liable toexcise dutyandonnorms
forgoods carried through thecustoms border by
individuals andfreefrom excise duty”of
13July1995; No960Customs Committee
Ministry ofFinance
Government Resolution “Onconfirmation ofalist
ofcountries-users ofthescheme ofpreferences of
theRepublic ofKazakstan ”of20July1995;
No.1009Customs Committee
Ministry ofFinanceWT/ACC/KAZ/3
Page79
Laws andlegal acts Responsible agencies
Government Resolution “Onapproval oftheListof
commodities ”of28July1995; No.1035 (with
amendments introduced bytheGovernment ofthe
Republic ofKazakstan of13March 1996; No.304)Customs Committee
Ministry ofFinance
State Committee onPricing and
Antimonopoly Policy
Government Resolution “Ontheratesofcustoms
duties forimports ”of15August 1995; No.1125
(with amendments introduced bytheGovernment of
theRepublic ofKazakstan Resolution of21March
1996; No.300)Customs Committee
Ministry ofFinance
Government Resolution “Onestablishing asystem
ofindependent pre-shipment inspection forgoods
imported intotheRepublic ofKazakstan ”of
4October 1995; No.1301Customs Committee
Government Resolution “Onexcise ratesforcertain
types ofgoods imported intheRepublic of
Kazakstan andliable toexcise duty”of
2November 1995; No1439Customs Committee
Ministry ofFinance
Government Resolution “Ontheprocedure of
carrying goods, including vehicles, through the
customs border byindividuals ”of2November
1995; No.1440Customs Committee
Ministry ofIndustry andTrade
Government Resolution “Onthecustoms
declaration andtaxation ofrawmaterials exported
from theRepublic ofKazakstan ”of6November
1995; No.1461Customs Committee
Ministry ofIndustry andTrade
Government Resolution “Ontheratesofcustoms
payments ”of7November 1995; No.1479Customs Committee
Ministry ofFinance
Government Resolution “Ontheorder ofexport
andimport ofgoods (work, services) inthe
Republic ofKazakstan ”of12March 1996;
No.298Customs Committee
Ministry ofIndustry andTrade
Government Resolution “Ontheratesofcustoms
duties forexporting goods ”of12March 1996;
No.299Customs Committee
Ministry ofFinance
Government Resolution “OnAmendments to
Government Resolution of12March 1996,
No.299”of28June1996; No.810Customs Committee
TheResolution oftheCouncil ofGovernments ’
Heads ofCIS“Onauniform methodology for
determining customs statistics onforeign trade with
CIScountries ”of9December 1994Customs CommitteeWT/ACC/KAZ/3
Page80
2. Laws andlegalactsrelating tonon-tariff regulation ofimports, exports andtrade intransit,
rules oforigin; responsible agencies.
Laws andlegal acts Responsible agencies
Decree ofthePresident oftheRepublic of
Kazakstan “Oncancellation oflimitations for
export ofproducts andgoods bought inthe
Republic ofKazakstan forTenge ”of4February
1994; No.1543Customs Committee
Ministry ofEconomy
Ministry ofIndustry andTrade
Government Resolution “Onthedeclaration and
procedure forthetransference ofgoods through the
border oftheRepublic ofKazakstan ”of
19February 1993; No.129Customs Committee
Government Resolution “Onmeasures forfurther
developing theexport control system inthe
Republic ofKazakstan ”of24March 1995; No338Customs Committee
Ministry ofIndustry andTrade
Decree ofthePresident oftheRepublic of
Kazakstan having theforce oflaw“Onlicensing ”
of17April 1995; No.2200Ministry ofEconomy
Customs Committee
Ministry ofIndustry andTrade
State agencies withlicensing role
Resolution ofthePresident theRepublic of
Kazakstan “Onmeasures forimplementing the
Decree ofthePresident oftheRepublic of
Kazakstan having theforce oflaw“Onlicensing ”
of17April 1995; No.2201Ministry ofEconomy
Customs Committee
Ministry ofIndustry andTrade
State agencies withlicensing role
Government Resolution “Onthestage-by-stage
introduction ofcompulsory certification ofproducts
intheRepublic ofKazakstan ”of20May1993; No
411Standardization, Metrology and
Certification Committee
Government Resolution “Onapproval ofthe
Regulation ofProcedures governing tolling (ona
giveandtakebasis) transactions intheRepublic of
Kazakstan ”of23September 1994; No.1055Ministry ofEconomy
Ministry ofIndustry andTrade
Customs Committee
Government Resolution “Ontheabolishment of
export andimport barter transactions ”of17July
1995; No.984(with amendments of29August
1995)Ministry ofEconomy
Ministry ofIndustry andTrade
Customs Committee
Government Resolution “Onmeasures forthe
implementation oftheResolution ofthePresident
oftheRepublic ofKazakstan 17April 1995; No.
2201”of29December 1995; No.1894Ministry ofEconomy
Customs Committee
Ministry ofIndustry andTrade
State agencies withlicensing role
Government Resolution “Onapproval ofthe
procedure fordestruction orfurther reprocessing of
products incaseofdetermination asunsuitable for
saleandconsumption ”of29December 1995;
No.1891Standardization, Metrology and
Certification Committee
Customs CommitteeWT/ACC/KAZ/3
Page81
Laws andlegal acts Responsible agencies
Government Resolution “Onapproval ofthe
Regulations ontheState Committee for
standardization, metrology andcertification ”of
22February 1996; No.225Standardization, Metrology and
Certification Committee
Theresolution oftheCouncil oftheCIS
Governments ’Heads “Ontheprocedure for
determining thecountry origin forgoods ”of
24September 1993.Customs Committee
3. Laws andregulations relating toforeign investments; responsible agencies.
Laws andlegal acts Responsible agencies
TheKazakstan SSRLaw“Oninvestment activity in
Kazakstan SSR”of10June1991Ministry ofEconomy
Ministry ofFinance
Law“Onmembership oftheRepublic ofKazakstan
intheInternational Monetary Fund, International
Bank forReconstruction andDevelopment,
International Finance Corporation, International
Development Association, Multilateral Agency of
Investments Guarantee andInternational Center on
Investment Disputes Settling ”of26June1992Ministry ofEconomy
Ministry ofFinance
Law“Onareturnable system offinancing for
investments ”of12April 1993Ministry ofEconomy
Ministry ofFinance
Law“Onforeign investments ”of27December
1994Ministry ofEconomy
Ministry ofFinance
Decree ofthePresident oftheRepublic of
Kazakstan “Onmeasures forincreasing the
efficiency ofstateadministration andregulation of
processes fortheattraction offoreign capital tothe
economy oftheRepublic ofKazakstan ”of19
January 1995; No.2035Ministry ofEconomy
Government Resolution “Onmeasures forattracting
foreign credits totheRepublic ofKazakstan ”of
8February 1995; No.139Ministry ofEconomy
Ministry ofFinance
4. Other laws andlegal actsdealing with economic issues thataffect trade; responsible
agencies.
Laws andlegal acts Responsible agencies
TheForest Code oftheRepublic ofKazakstan of
23January 1993Committee forForest Affairs
TheWater Code oftheRepublic ofKazakstan of
1April 1993Committee forWater ResourcesWT/ACC/KAZ/3
Page82
Laws andlegal acts Responsible agencies
Law“Onpeasant farmintheKazakstan SSR”of
21May1990Ministry ofAgriculture
Law“Onfreedom ofeconomic activity andthe
development ofbusiness undertakings ”of
11December 1990Ministry ofEconomy
Law“Onconsumer co-operatives ”of
11December 1990TheRepublic ofKazakstan Union of
co-operators (non-government
organization)
Law“Onthedevelopment ofcompetition andthe
restriction ofmonopolistic activities ”of
11June1991State Committee onPricing and
Antimonopoly Policy
Law “Onenvironmental protection ”of
18June1991Ministry ofEcology andBio-Resources
Law “Onprotection ofconsumer rights ”of
26June1992State Committee onPricing and
Antimonopoly Policy
TheRepublic ofKazakstan Consumers ’
Society (non-government andvoluntary
organization)
Law “Onprotecting andsupporting private
business undertakings ”of4July1992Ministry ofEconomy
TheRepublic ofKazakstan Chamber of
Commerce andIndustry
(non-government organization)
Law“OnState stamp-duties ”of19December
1992Ministry ofFinance
Law “Onstandardization andcertification ”of
18January 1993Standardization, Metrology and
Certification Committee
Law “Oncurrency exchange regulation ”of
14April 1993National Bank
Ministry ofFinance
Law“Onprotection, reproduction andusage of
animals ”of21October 1993Ministry ofEcology andBio-Resources
Law“OnArchitecture andtown-planning inthe
Republic ofKazakstan ”of22October 1993Ministry ofconstruction, housing and
territory building
Law“Ontrade marks, service marks and
geographical indications oftheorigin ofgoods ”of
18January 1993State Agency forCopyright andrelated
rights
Law“Onsanitary andanti-epidemic measures
ensuring thehealth ofthepopulation ”of
8July1994Ministry ofHealth Protection
Law“Ontransportation intheRepublic of
Kazakstan ”of21September 1994Ministry ofTransportation and
Communication
Decree ofthePresident oftheRepublic of
Kazakstan having theforce oflaw“OntheNational
Bank”of30March 1995; No2155National BankWT/ACC/KAZ/3
Page83
Laws andlegal acts Responsible agencies
Decree ofthePresident oftheRepublic of
Kazakstan having theforce oflaw“On
bankruptcy ”of7April 1995; No2173Ministry ofEconomy
State Property Management Committee
Decree ofthePresident oftheRepublic of
Kazakstan having theforce oflaw“Onstate
registration ofjuridical persons ”of17April 1995;
No.2198Ministry ofJustice
Decree ofthePresident oftheRepublic of
Kazakstan having theforce oflaw“Onmaking
amendments andadditions tolegislative actsin
connection withtheopening ofanonymous
accounts ”of21April 1995; No.2230National Bank
Decree ofthePresident oftheRepublic of
Kazakstan having theforce oflaw“Ontaxes and
other mandatory payments tothebudget ”of
24April 1995; No.2235 (“TheTaxCode”)Ministry ofFinance
Decree ofthePresident oftheRepublic of
Kazakstan having theforce oflaw“Oneconomic
partnerships ”of2May1995; No.2255Ministry ofEconomy
National Securities Commission
Decree ofthePresident oftheRepublic of
Kazakstan having theforce oflaw“Onstate
enterprises ”of19June1995; No.2335Ministry ofEconomy
State Property Management Committee
Decree ofthePresident oftheRepublic of
Kazakstan having theforce oflaw“Onthelegal
status offoreign citizens intheRepublic of
Kazakstan ”of19June1995; No.2337Ministry ofForeign Affairs
Ministry ofInternal Affairs
Decree ofthePresident oftheRepublic of
Kazakstan having theforce oflaw“Onoil”of28
June1995; No.2350Ministry ofOilandGasIndustry
Ministry ofGeology andDepths
Protection
Decree ofthePresident oftheRepublic of
Kazakstan having theforce oflaw“OnState
regulation oftransactions connected withprecious
metals andprecious stones ”of20July1995; No
2372Ministry ofFinance
National Bank
Decree ofthePresident oftheRepublic of
Kazakstan having theforce oflaw“Onbanks and
banking activities ”of31August 1995; No.2444National Bank
Decree ofthePresident oftheRepublic of
Kazakstan having theforce oflaw“Oninsurance ”
of3October 1995; No.2475State Insurance Supervision
Decree ofthePresident oftheRepublic of
Kazakstan having theforce oflaw“Onproduction
co-operatives ”of5October 1995; No.2486Ministry ofEconomy
Ministry ofIndustry andTradeWT/ACC/KAZ/3
Page84
Laws andlegal acts Responsible agencies
Decree ofthePresident oftheRepublic of
Kazakstan having theforce oflaw“Onthe
procedure forconclusion, implementation and
denunciation ofinternational agreements ofthe
Republic ofKazakstan ”of12December 1995;
No.2679Ministry ofForeign Affairs
Decree ofthePresident oftheRepublic of
Kazakstan having theforce oflaw“Onusage of
airspace andaviation intheRepublic of
Kazakstan ”of20December 1995; No.2697.Ministry ofTransportation and
Communication
Decree ofthePresident oftheRepublic of
Kazakstan having theforce oflaw“Onland”of
22December 1995; No.2717State Committee forLand Relation and
Land-Tenure Regulations
Decree ofthePresident oftheRepublic of
Kazakstan having theforce oflaw“On
privatization ”of23December 1995; No.2721Privatization Committee
State Property Management Committee
Decree ofthePresident oftheRepublic of
Kazakstan having theforce oflaw“Onthe
mortgage ofrealestate”of23December 1995;
No.2723Ministry ofFinance
Ministry ofJustice
Decree ofthePresident oftheRepublic of
Kazakstan having theforce oflaw“OnState
registration andmanagement ofrealestate rights ”
of25December 1995; No.2727Ministry ofJustice
Decree ofthePresident oftheRepublic of
Kazakstan having theforce oflaw“On
accounting ”of26December 1995; No.2732Ministry ofFinance
Decree ofthePresident oftheRepublic of
Kazakstan having theforce oflaw“Onspecial
economic zones”of26January 1996; No.2823Ministry ofEconomy
Decree ofthePresident oftheRepublic of
Kazakstan having theforce oflaw“Onsub-surface
landrights andtheirexploitation ”of27January
1996; No.2828Ministry ofGeology andDepths
Protection
Decree ofthePresident oftheRepublic of
Kazakstan “Ontheimplementation ofinternational
treaties andagreements reached bytheRepublic of
Kazakstan atsummits involving thehighest
intergovernmental relations ”of9April 1996; No
2940Ministry ofForeign Affairs
Government Resolution “OnApproval ofthe
provision onstateecology expertise ”of25October
1991; No.637.Ministry ofEcology andBioResources
Government Resolution “Onapproval oftypical
regulation onrationalization activity ”of27
November 1992; No.996Ministry ofJustice
Ministry ofScience andNew
TechnologyWT/ACC/KAZ/3
Page85
Laws andlegal acts Responsible agencies
Government Resolution
“Issues ofState Trade Inspectorate ”of30March
1995 ;No369Ministry ofIndustry andTrade
Local Administration
Government Resolution “Ontheprocedure of
creation ofventure firms”of3July1995; No.908Ministry ofJustice
Ministry ofScience andNew
Technology
Government Resolution
“Onapproval oftheRegulations ontheState Trade
Inspectorate ”of21July1995; No1013Ministry ofIndustry andTrade
Local Administration
Government Resolution “Onselling ofpartofstate
block ofshares ofprivatized enterprises onStock
Exchange ”of21August 1995; No.1154State Committee forPrivatization
National Securities Commission
Government Resolution “Onestablishing currency
controls intheRepublic ”of31August 1995; No
1207Ministry ofFinance
“Therules governing hardcurrency transactions in
theRepublic ofKazakstan ”approved bythe
National Bank of24November 1994 (with
amendments)National Bank
5.(a)Existing Laws, resolutions oradministrative guidelines which significantly affect trade
inservices.
Laws andlegal acts Responsible agencies
TheKazakstan SSRLaw”Onapproval oftheRegulations
onAssociation ofadvocates ”of13November 1980 (with
amendments of28June1991)Association ofAdvocates
(professional non-government
organization)
Ministry ofJustice
Law“OnPress andother Mass Media intheRepublic of
Kazakstan ”of28June1991National Agency forpress and
mass information affairs
Law“Oneducation intheRepublic ofKazakstan ”of
18January 1992Ministry ofEducation
Law“Onprotection ofthepopulation ’shealth inthe
Republic ofKazakstan ”of10January 1992Ministry ofHealth Protection
TheRepublic ofKazakstan Patent Lawof24June1992 National Patent Agency
Law“Onhigher education intheRepublic ofKazakstan ”
of10April 1993Ministry ofEducation
Law“Onaudit activity inRepublic ofKazakstan ”of
21October 1993Ministry ofFinance
Decree ofthePresident oftheRepublic ofKazakstan
having theforce oflaw“OnCommodity exchanges ”of
7April 1995; No2170Ministry ofEconomy
Ministry ofIndustry andTrade
Decree ofthePresident oftheRepublic ofKazakstan
having theforce oflaw“OnSecurities andStock
Exchange ”of21April 1995; No2227National Securities CommissionWT/ACC/KAZ/3
Page86
Laws andlegal acts Responsible agencies
Decree ofthePresident oftheRepublic ofKazakstan
having theforce oflaw“Onmedical insurance of
citizens ”of15June1995; No.2329Ministry ofHealth Protection
Decree ofthePresident oftheRepublic ofKazakstan
having theforce oflaw“Onveterinary medicine ”of
25July1995; No.2376Ministry ofAgriculture
Decree ofthePresident oftheRepublic ofKazakstan
having theforce oflaw“OnPower engineering ”of
23December 1995; No.2724Ministry ofPower Engineering
andCoalIndustry
Resolution ofthePresident oftheRepublic ofKazakstan
“Onmeasures forimplementation oftheDecree ofthe
President oftheRepublic ofKazakstan having theforce of
law“Onmedical insurance ofcitizens ”of15June1995;
No.2330Ministry ofHealth Protection
Government Resolution “Onrules governing thepublic
demonstration ofmotion picture andvideo productions in
theRepublic ofKazakstan ”of5July1995; No.926Ministry ofCulture
Government Resolution “Onstateinsurance supervising
body”of19December 1995; No.1803Ministry ofFinance
Government Resolution “Onapproval ofregulation on
licensing ofinsurance activity ontheterritory ofthe
Republic ofKazakstan ”of19April 1996; No.478.State Insurance Supervision
Body
Ministry ofFinance
(b) Publications orsources ofinformation, concerning measures ofgeneral application, of
relevance totheGATS (General Agreement onTrade inServices).
Sources ofinformation onmeasures ofcommon useregarding theGeneral Agreement onTrade
inServices areasfollows:
- Compilation ofActsissued bythePresident andGovernment.
- Bulletin ofLaws enacted bytheParliament
- Bulletin ofinternational treaties, agreements andsome legalactsoftheRepublic of
Kazakstan
- Bulletin ofActsissued byministries anddepartments
- Periodical press
- Legal publications issued byvarious ministries
- Laws andmajor regulations andadministrative orders areusually published inthemass
media nomore thanoneweek aftertheyareenacted inKazakstan.
Currently there areseveral electronic databases oflegislation ofKazakstan compiled bythe
Ministry ofJustice andseveral private entities. Legal information fromsuchsuppliers maybeobtained
atafee.
(c) Inquiry points, ifthere areany,asforeseen inArticle IIIoftheGeneral Agreement on
Trade inServices.
Laws andmajor regulations andadministrative guidelines areusually published inthepress
nomorethanoneweek aftertheyareenacted. Thegovernment willtakeadditional measures toestablish
inquiry points asforeseen inArticle IIIofGATS.WT/ACC/KAZ/3
Page87
ANNEX 3
INFORMATION ONIMPORT LICENSING PROCEDURES
I. Outline ofSystems
MostproductsmayentertheRepublicofKazakstanwithoutalicense.Howevercertainproducts
which mayaffect thehealth ofcitizens, theenvironment, orNational Security dorequire alicense
tobeimported intothecountry. During thefirstninemonths of1995 only4.04% ofimports (and
0.38% ofexports) were subject tothelicensing procedure.
II. Purpose andcoverage oflicensing
1. There isonlyonelicensing system anditapplies tochemical agents forplant protection,
pharmaceuticals andmedical equipment; opium, narcotics andpsychotropic agents; enciphering devices
andinstructive andtechnical documentation relating thereto; explosives andexplosive devices; service
andcivilarmaments andinstructive documentation relating tomilitary products, andindustrial waste.
2. Thesystem isapplicable togoods from allcountries, including goods from other member
countries oftheCustoms Union (theBelarus Republic andtheRussian Federation), aswellasgoods
from other CIScountries.
3. Thelicensing system isnotintended torestrict either thequantity orvalue ofimported goods;
itissimply toprotect public health, theenvironment andnational security. Alternative methods of
accomplishing these purposes havenotbeenconsidered because those nowexisting arenotoverly
burdensome andareconsidered tobeadequate. Amorecomplicated system would bemoreburdensome
andasimplified system would probably notmeetourobjectives.
4. Thelicensing ofimports isbased onGovernment Resolution No.298of12March 1996 and
byPresidential Decree Number 2200of17April 1995andisthusstatutory ineffect. Thedesignation
ofproducts tobelicensed andthelicensing ofproducts tobeimported innotlefttoAdministrative
discretion. Thegovernment mayabolish thesystem oflicensing onlybystatutory action
III. Procedures
1. Forproducts under restriction astothequantity orvalue ofimports:
There arenoproducts under restriction astoquantity orvalue.
2. Wheretherearenoquantitativelimitsonimportationofaproductoronimportsfromaparticular
country.
(a) Themaximum timeforgranting animport license istendays; thustheminimum timein
which toapply foralicense inadvance ofimportation would beten(10)daysbutanapplication made
suchashort timebefore importation should beavoided toensure anorderly import process. Alicense
canbeobtained within ashorter timeifallthedocuments (contract, fee,approval fromrelevant ministry,
andsometimes invoice) aresubmitted withtheapplication andallareinorder. Anapplication for
animport license isprovided inExhibit A3.1.
(b) Yes,alicense canbegranted immediately, asnoted in(a).WT/ACC/KAZ/3
Page88
(c) No.Alicense isvalid foraperiod oftimesufficient toaccomplish theimportations covered
bythelicense which maybeuptoonecalendar year, withthepossibility ofanextension forvalid
reasons.
(d) Import licenses are,inmostcases, issued afterreview byasingle Ministry, theMinistry of
Industry andTrade. However, inthecaseofchemical agents, enciphering devices, andinstructive
documentation relating tomilitary products theapplication mustbereviewed bymorethanoneMinistry,
seeTable A3.1.
3. There arenocircumstances under which anapplication foralicense mayberefused other than
forfailure tomeetthebasic requirements. When alicense isrefused theapplicant isadvised ofthe
reasons andhemayappeal totheMinistry ofIndustry andTrade onanadministrative basis.
IV. Eligibility ofimporters toapply forlicense
1. Allpersons, firms andinstitutions areeligible toapply forlicenses.
V. Documentation andother requirements forapplication forlicense
1. Anapplication foranimport license requires information asto:thename, address, etc.ofthe
applicant; thename andaddress oftheforeign seller ofthegoods; thename ofthelocal consumer;
theCustoms entry station; thenature ofthetransaction (sale, barter, exchange, etc.); thecurrency
ofpayment; adescription ofthegoods, theirtariff codenumber (s),theirunitofmeasurement, their
quantity andtheirvalue. Theapplicant mustsubmit aletterrequesting thelicense, anofficial application
(acopyofwhich isattached), acopyofthecontract topurchase, andaproof ofpayment ofthelicense
fee,usually abankreceipt.
2. When goods areimported thefollowing documents must besubmitted toCustoms:
(a) authorization fromtheimporter ifanagent (broker) ishandling theclearance, (b)theoriginal
purchase contract plusonecopy, (c)acertificate oforigin forthegoods, (d)animport license forgoods
which require alicense, (e)acertificate ofconformity toState standards, (f)thebilloflading, (g)
thecommercial invoice, (h)aCustoms declaration and,when thenature ofthegoods sorequire and
(i)acertification astoquality and/or quantity forcertain goods suchaspotentially hazardous products
andanimal foods.
3. Afeeiscollected atthetimethelicense isissued andasof01July96itwas9,200 Tenge
forgoods imported from allcountries.
4. There isnodeposit oradvance payment required inassociation withtheissuance ofalicense;
thefeesnoted inV(3)above arecollected atthetimeofissuance ofthelicense.
VI. Conditions oflicensing
1. Theperiod ofvalidity oftheimport license issetatthetimeofissueandisforaperiod sufficient
tocover theimport transactions licensed which maynotbelonger thanonecalendar year. Anextension
ofalicense maybegranted where circumstances warrant.
2. There arenopenalties fornon-use oronlypartial useofalicense.
3. Licenses areissued toaspecific person, enterprise oragency andarenottransferable.WT/ACC/KAZ/3
Page89
4. There arenoother conditions attached totheissuance ofalicense thanthose noted above.
VII. Other procedural requirements
1. There arenoother administrative procedures required prior toimportation.
2. Anyimporter hastheright toexchange currency through thebanks withthere being no
restrictions orlicensing requirements.WT/ACC/KAZ/3
Page90
Exhibit A3.1 Application forImport License
Page1
1. General Valid foroneoccasion License Number
2.Organization -Applicant (address andphone number
3.Oninstruction of:(organization, enterprise,
itsaddress, phone number)Seller anditsaddress
4.Consumer
8.Country ofSeller
5.Country ofOrigin 9.Validity a.requested
byapplicationb.granted
bylicense
6.Customs PortofEntry 10.Thenature oftransaction
11.Currency ofpayment
12.Name andfull
description oftheproduct13.Code of
Commodity
Nomenclature14.Unit of
measurement15.Quantity Total value ofgoods
(inthousands of)
16.Currency
ofpayment17.US$
18.Basis ofapplication foralicense 20.Agreed upon (other State bodies)
21.Ministry ofIndustry andTrade
19.Organization- applicant (name, position,
date, signature ofheadoforganization and
stamp)Name
Position
Signature Date
Stamp here
22.Number ofsettlement (currency) accounts, names ofbanks/banks 'branches
23.Special conditions oflicense
Items 1,9b,and23areforusebytheMinistry ofIndustry andTrade
Item17-Tenge instead ofUS$ifimport isfrom CISWT/ACC/KAZ/3
Page91
Page2
Customs Remarks*
Product
Unitof
MeasurementShipped
quantityDateofremark Signature of
Customs
officerName Code of
Commodity
Nomenclature
*Tobefilled onaccrued basis
Note: TheMinistry ofIndustry andTrade provides detailed instruction onfilling thisform.WT/ACC/KAZ/3
Page92
Table A3.1 -Listofgoods, import whereof shallbecarried outunder license
Name ofGoods Code ofCommodity
NomenclatureTheMinistries and
Departments oftheRepublic
ofKazakstan coordinating
decision onlicense issuance
Chemical agents forplant
protection3808 (only preparation for
plant protection)Ministry ofAgriculture
Ministry ofEcology and
Bio-Resources
Pharmaceuticals, medical
equipment2936-2939, 2941, 3001-3004,
3006, 9013, 9018-9022Ministry ofHealth Protection
Pharmaceuticals for
veterinary purposes and
veterinary equipment2936-2939, 2941, 3001-3006,
9018-9022Ministry ofAgriculture
Narcotics andpsychotropic
agents, venomsAccording totheListDefined
bytheGovernment ofthe
Republic ofKazakstanMinistry ofHealth Protection
Ministry ofEcology and
Bio-Resources
Enciphering devices
(including enciphering
equipment, parts for
enciphering equipment and
software forenciphering),
instructive andtechnical
documentation relating to
enciphering devices
(including bothdesign and
maintenance)8471 (only enciphering
equipment), 847330000, (only
toenciphering equipment),
854390900 (only for
enciphering equipment)CNS, State Technical
Commission oftheRepublic of
Kazakstan ontheProtection of
Information
Devices forprotection
from combat poisonous
substances, components
andaccessories thereforAccording totheListDefined
bytheGovernment ofthe
Republic ofKazakstanMinistry ofDefense
Instructive documentation
relating toproducts of
military designation
(design andoperation)Ministry ofDefense, State
Technical Commission ofthe
Republic ofKazakstan onthe
Protection ofInformation
Powder, explosive devises
andpyrotechnics360100000 (except forhunting
powder), 360200000, 3603,
3604Ministry ofInternal Affairs
Industrial waste 2618-2620, 3915 Ministry ofEcology and
Bio-Resources
Opium RawMaterial 1211909 Ministry ofHealth Protection
Service andcivil
armamentsAccording totheListDefined
bytheGovernment ofthe
Republic ofKazakstanMinistry ofInternal AffairsWT/ACC/KAZ/3
Page93
Table A3.2 -Listofgoods, import whereof shallbecarried outwiththepermission ofthe
Government oftheRepublic ofKazakstan
Name ofGoods Code ofCommodity Nomenclature
Armaments andmilitary equipment, special
components fortheirmanufacture, works
andservices inthesphere ofmilitary
technology collaboration871000000, 8802 (except for880211100,
880212100, 880220100, 880230100,
880240100), 8803 (except for880310100,
880320100, 880330100, 880390910),
880400000, (only themilitary designation),
8805 (except for880520100, 890600100,
930100000, 930200, 9305 (only tocombat
arms), 9306 (except for930610000,
930629100, 930629200, 930629100,
930629200, 930629400, 930630910,
930630930, 901310000 (only themilitary
designation), 901320000 (only themilitary
designation), 901380000 (only themilitary
designation), 9014 (only themilitary
designation), 8525 (only themilitary
designation), 8526 (only themilitary
designation)
Nuclear materials, technologies, equipment
andinstallations, special non-nuclear
materials, sources ofradioactive radiation,
including radioactive waste2612, 2844, 2845, 380110000 (only nuclear
puregraphite), 8401WT/ACC/KAZ/3
Page94
ANNEX 4
INFORMATION ONIMPLEMENTATION AND ADMINISTRATION
OFTHE CUSTOMS VALUATION AGREEMENT
Attached tothisAnnex, please findarticles 124,125,126,127,128,131,132,133,137,138,
and149.4 oftheCustoms Code ofKazakstan.
1. Questions concerning Article 1:
(a) Sales between related persons:
(i) No,salesbetween related persons arenotsubject tospecial provisions.
(ii) No,intercompany prices arenotprima facie considered grounds forregarding the
respective prices asbeing influenced.
(iii) Theprovision forproviding information inwriting regarding theabove isArticle 126
oftheCustoms Code. (1)
(iv) Article 1.2(b) hasbeenimplemented byArticle 126oftheCustoms Code.
(b) Price oflostordamaged goods:
Article 149.4 oftheCustoms Code provides thatgoods which havebeendamaged prior to
clearance andhavebecome unsuitable foruseareexempt fromCustoms duty. Goods which havebeen
lostarenotpresented forclearance andaretherefore notsubject toduty.
2. Articles 127and128oftheCustoms Code allow theimporter toreverse theorder ofthe
application ofArticles 5and6oftheValuation Agreement.
3. Article 5.2oftheValuation Agreement hasbeenimplemented byArticles 127and131ofthe
Customs Code.
4. Article 6.2oftheValuation Agreement hasbeenimplemented byArticles 127and132ofthe
Customs Code.
5. Questions concerning Article 7:
(a) TheprovisionsformakingvaluationdeterminationspursuanttoArticle7oftheValuation
Agreement havebeenimplemented byArticles 127and133oftheCustoms Code.
(b) TheCustoms Code isnotexplicit inproviding thatanimporter shallbeinformed of
theCustoms valuation determined under Article 7oftheValuation Agreement. However,
itisimplicit inArticle 126oftheCustoms Code wherein itisstated that,uponwritten request,
Customs willprovide totheimporter thereason/s hisdeclared value wasnotaccepted and,
where applicable, thatvaluation wasdoneinaccordance withArticle 7.SeetheAttachment
tothisAnnex forthetextofreferenced Customs Code articles.
(c) Theprohibitions found inArticle 7.2oftheValuation Agreement aredelineated in
partbutnotwholly. Article 133oftheCustoms Code precludes useofthemethods specified
inArticle 7.2(a),(e)and(g)butthemethods specified in7.2(b),(c),(d),and(f)arenot
specifically excluded bythisArticle.WT/ACC/KAZ/3
Page95
6. Inregard totheoptions found inArticle 8.2oftheValuation Agreement, Article 128ofthe
Customs Code specifically includes transportation, handling, andinsurance costs. There isnof.o.b.
valuation application inKazakstan andthusnoquestion astotheacceptance ofex-factory prices.
7. Therateofexchange forforeign currency ispublished invarious official publications such
as“Foreign Economic Activities ”,“Kazakstanskaya pravda ”,“Panorama ”,“Caravan ”,etc.andis
available every dayattheNational Bank.
8. Theconfidentialityofinformationsubmittedbyadeclarantinrespectofthevaluationofimported
goods isguaranteed byArticle 124oftheCustoms Code.
9. Questions concerning Article 11:
(a) Anadministrative appeal maybelodged withtheCustoms Administration and,ifthis
doesnotprovide satisfaction, totheappropriate judicial authorities ofKazakstan.
(b) Therightofanimporter toappeal aCustoms valuation decision issetoutinArticle 125
oftheCustoms Code.
10. Publication oftheinformation required byArticle 12isasfollows:
(a) Information regarding thenational laws, regulations, administrative rulings andjudicial
decisions, andgeneral orspecific lawsreferred tointherulesofimplementation arepublicized
inofficial journals, tradejournals, official andprivate newspapers, andonnational television.
Thiswould alsobetrueofanysimilar measures necessary toimplement theprovisions of
Article VIIoftheGeneral Agreement onTariffs andTrade of1994.
(b) Publication offurther rules isnotanticipated atpresent.
11. Questions concerning Article 13:
(a) Theobligation found inthelastsentence ofArticle 13oftheValuation Agreement
aredealtwithinArticle 125oftheCustoms Code which permits thewithdrawal ofgoods before
thefinalvaluation determination iftheestimated duties arepaidorabank guarantee given
fortheirpayment. Article 137provides thatanimporter maygetadeferral oforpayduties
ininstalments, while Article 138provides thatthepayment ofduties onadeferred basis may
besecured byapledge ofthegoods orathirdparty guarantee.
12. Questions concerning Article 16.
(a) Therighttoawritten explanation ofthevalue ofimported goods when requested by
theimporter isprovided inArticle 126oftheCustoms Code.
(b) Since thisrightisspecifically provided forintheCustoms Code noother regulations
havebeendeemed necessary.
13. TheInterpretative Notes havenotbeenincluded intheCustoms Code oranyother regulations.
14. Thevaluation practices oftheGovernment ofKazakstan areincompliance withtheDecision
of26April 1984, i.e.,interest charges incurred bythepurchaser arenotconsidered aspartofthe
Custom value ofthegoods.WT/ACC/KAZ/3
Page96
15. There hasbeennoformal application oftheDecision of24September 1984 regarding the
valuation ofcarrier media bearing software fordataprocessing equipment anditsprovisions arenot
setoutintheCustoms Code oranyregulations but,inpractice, thedecision isapplied toimports of
media bearing software forADP.
Selected Articles from theCustoms Code- Articles 124,125,126,127,128,131,132,133,
137,138,and149.4
Article 124. Observance ofConfidentiality ofInformation Concerning theCustoms Value of
Goods
Information which issubmitted byadeclarant when declaring thecustoms value ofgoods,
whichisdefinedasconstitutingacommercialsecretorwhichisconfidential,maybeusedbytheCustoms
Body exclusively forcustoms purposes anditmaynotbedisclosed tothirdparties including anyother
statebodies without specific permission ofthedeclarant, except forthecases which alestipulated by
thisEdict andlegislation oftheRepublic ofKazakhstan.
Article 125. TheRights AndObligations ofaDeclarant inRespect ofCustoms Value
Adeclarant shallhavethefollowing rights:
toprove thereliability ofinformation submitted fordetermining thecustoms value, where the
Customs Body hasdoubts inrespect ofitsreliability;
when anecessity arises tospecify acustoms value declared, toapply toaCustoms Body of
theRepublic ofKazakhstan withtherequest topresent tothedeclarant thedeclared goods for
useunder theguarantee ofanauthorized bankinaccordance withlegislation oftheRepublic
ofKazakhstan, ortopaycustoms duties andtaxes inaccordance withthecustoms value of
thegoods asevaluated bytheCustoms Body oftheRepublic ofKazakhstan; inthecaseof
adisagreement withthedecision oftheCustoms Body oftheRepublic ofKazakhstan inrelation
todetermining thecustom value ofgoods, tochallenge thatdecision inaccordance withthe
procedure established bythisEdict.
Adeclarant shallbeobliged asfollows:
todeclare thecustoms value andtopresent information relating toitsdetermination, based
onreliable qualitatively measurable anddocumentary confirmed information;
where itisnecessary toconfirm thedeclared customs value inaccordance withtherequirements
oftheCustoms Body oftheRepublic ofKazakhstan, topresent tothelatter theinformation
which isrequired forsuchconfirmation;
tomake anyadditional expenditures which ariseinrelation tospecifying thecustoms value
declared bythedeclarant ortopresenting totheCustoms Body oftheRepublic ofKazakhstan
ofanyadditional information. Inthatrespect, theextension oftheperiod ofcustoms processing
ofgoods caused byconducting acustoms valuation maynotbeusedbyadeclarant toobtain
actual deferment ofpayment ofcustoms duties andtaxes.WT/ACC/KAZ/3
Page97
Article 126. TheRights AndObligations oftheCustoms Body inDetermining theCustoms
Value
TheCustom Body oftheRepublic ofKazakhstan which carries outcustoms processing ofgoods
shallhavethefollowing rights:
toadopt decisions inrespect ofaccuracy ofthecustoms value ofgoods asstated bythedeclarant;
whereinformationtoconfirmtheaccuracyofdeterminingthecustomsvaluestatedbyadeclarant
doesnotexist, orwhere there arereasons tobelieve thatinformation presented byadeclarant
arenotreliable orsufficient, toindependently assess thecustoms value ofdeclared goods by
consistent application ofthemethods fordetermining thecustoms value which areestablished
inthisEdict, onthebasisoftheinformation which isavailable toit(including priceinformation
relating toidentical orsimilar goods) withadjustments made inaccordance withthisEdict.
TheCustoms Body oftheRepublic ofKazakhstan inpursuance ofthewritten request ofa
declarant shallbeobliged topresent awritten explanation ofthereasons forwhich thecustoms value
stated bythedeclarant maynotbeaccepted bytheCustoms Body asthebaseforassessment ofcustoms
duties andtaxes.
Article 127. TheMethods ForDetermining theCustoms Value
Determining thecustoms value ofgoods imported tothecustoms territory oftheRepublic of
Kazakhstan shallbecarried outbywayofapplying thefollowing methods:
byusing thetransaction value ofimported goods;
byusing thevalue ofatransaction involving identical goods;
byusing thevalue ofatransaction involving similar goods;
bycostdeduction;
bycostaddition,
bytheprovisions method.
Themethodofdeterminingthecustomsvalueofgoodsbyusingthetransactionvalueofimported
goods shallbetheprincipal method.
Inthecasewhere itisimpossible tousetheprincipal method, eachofthelisted methods shall
beusedconsecutively. Inthatrespect, eachsubsequent method shallapply where thecustoms value
maynotbedetermined bywayofusing thepreceding method. Themethod ofdeducting andadding
costs maybeusedinanysequence.
Article 128. TheMethod ofDetermining theCustoms Value ontheBasis oftheTransaction
Value ofImported Goods
Price actually paidorprice which issubject topayment forgoods which areimported tothe
customs territory oftheRepublic ofKazakhstan, atthemoment oftheircrossing oftheCustoms
Boundary oftheRepublic ofKazakhstan shallbethecustoms value ofthegood.
When determining thecustoms value ofgoods, thetransaction value shallinclude thefollowing
expenditures, unless theywere ‘included earlier:
1. expenditures associated withdelivery ofgoods totheairport, portoranyplace ofimport of
goods tothecustoms territory oftheRepublic ofKazakhstan:WT/ACC/KAZ/3
Page98
costoftransportation;
costs associated withloading, unloading, reloading andtemporary storage ofgoods;
insurance amount;
2. expenditures incurred bythebuyer:
commission andbrokerage fees,except forcommission feesrelating tothepurchase ofgoods;
priceofcontainersoranyotherdurabletare,providedtheCommodityNomenclatureforForeign
Economic Activities handles them asoneunitwiththegoods under valuation;
costofpacking including thecosts ofpacking materials andwork associated withpacking;
3. theappropriatepartofcostsofthefollowinggoodsandserviceswhichweredirectlyorindirectly
supplied bybuyers freeofanycharge oratadiscount, fortheuseinrelation tomanufacture orexport
saleofthegoods under valuation:
rawmaterials, consumables, components, semi-products andanyother components which are
aconstituent partofthegoods under valuation;
tools, dies,moulds andother similar objects which areusedinthemanufacture ofthegoods
under valuation;
materials usedinthemanufacture ofthegoods under valuation (lubricants, fuelandanyother);
engineering research, experimental anddesign work, designing, sketches anddrawings made
outside theterritory oftheRepublic ofKazakhstan andwhich aredirectly required forthe
manufacture ofthegoods under valuation;
4. licensing feesoranyother payments fortheuseofitems ofintellectual property which the
buyer must effect directly orindirectly asacondition forselling ofthegoods under valuation;
5. thesizeoftheshare indirect orindirect income oftheseller fromanysubsequent resale, transfer
oruseintheterritory oftheRepublic ofKazakhstan ofthegoods under valuation.
Theindicated method maynotbeusedfordetermining thecustoms value ofgoods, where:
1. there arerestrictions oftherights ofthebuyer inrespect ofthegoods under valuation, except
forthefollowing:
restrictionsestablishedbylegislationoftheRepublicofKazakhstan;restrictionofthegeographic
region inwhich thegoods maybere-sold, restrictions winch donotsubstantially impact the
price ofthegoods,
2. salesandthevalueoftransactionarerelatedtoobservanceoftheconditionstheinfluencewhereof
maynotbecontrolled;
3. informationusedbythedeclarantwhendeclaringthecustomsvalueisnotconfirmeddocumentary
orarenotqualitatively determinable andreliable;
4. participants ofthetransaction areinter-related entities, except forthecases where the
inter-relation doesnotaffect theprice ofthetransaction, which mustbeproved bythedeclarant. In
thatrespect, inter-related entities shallbeunderstood tobeentities which fallatleastunder oneof
thefollowing categories:WT/ACC/KAZ/3
Page99
participants ofthetransaction areco-owners ofanenterprise, participants ofthetransaction
areconnected bylabor relations;
oneoftheparticipants ofthetransaction istheowner ofaninvestment (share) orholder of
shares associated withvoting rights inthecharter capital oftheother participant ofthe
transaction, which constitute more thantwenty percentofthecharter capital,
bothparticipants ofthetransaction arcunder direct orindirect control byathirdentity;
participants ofthetransaction together directly orindirectly control athirdentity;
oneoftheparticipants ofthetransaction isunder direct orindirect control bytheother
participant ofthetransaction;
participants ofthetransaction ortheirofficial persons areclose relatives.
Article 131. TheMethod ofDetermining theCustoms Value ontheBasis ofDeducting Costs
Determining customs value bythemethod ofvaluation based oncostdeduction, shallbecarried
outinthecasewhere thegoods tobevalued, identical orsimilar aretobesoldwithout anychanges
oftheirinitial condition.
When using themethod ofcostdeduction asabasisfordetermining thecustoms value ofgoods,
thepriceofaunitofthegoods shallbeusedatwhich thelargest consignments oftheidentical orsimilar
goods under valuation aresoldnotlaterthan90daysfrom thedateofimport ofthegoods under
valuation totheparticipant ofthetransaction which isnotanentity related totheseller. Thefollowing
components shallbededucted outoftheunitprice ofgoods:
1. expenditures onpayment ofcommission feesmark-ups onprofits andgeneral expenditures
relating toselling ofgoods ofthesame classandtype;
2. amounts ofimport duties, taxes, levies andanyother payments which aresubject topayment
intheRepublic ofKazakhstan inrelation toimport orsaleofthegoods;
3. current expenses incurred intheRepublic ofKazakhstan ontransportation, insurance, loading
andunloading operations.
Ifnoprecedent exists ofselling ofthegoods under valuation, ofidentical orsimilar goods
inthesame condition inwhich theywereatthemoment ofimport, upon therequest ofthedeclarant
theunitprice ofgoods which underwent reprocessing maybeusedwithadjustments relating tovalue
added taxandincompliance withtheprovisions ofthesecond andthethirdparts ofthisArticle.
Article 132. TheMethod ofDetermining theCustoms Value ontheBasis ofAdding Costs
When using themethod ofvaluation byadding costs asthebasisfordetermining thecustoms
value ofgoods, oneshallusetheprice orgoods calculated bywayoradding asfollows:
1. costormaterials andexpenditures incurred bythemanufacturer inrelation tomanufacture
orthegoods under valuation,
2. general costswhich arecharacteristics ofsalestotheRepublic ofKazakhstan fromthecountry
ofexport ofthegoods ofthesametype,including expenditures ontransportation, loading andreloadingWT/ACC/KAZ/3
Page100
operations, insurance totheplace ofcrossing thecustoms boundary oftheRepublic ofKazakhstan,
andanyother costs;
3. profits which areusually derived byexporters asaresult ofsupply totheRepublic ofKazakhstan
ofsuchgoods.
Article 133. TheProvisions method ofDetermining theCustoms Value
Inthecases where thecustoms value ofgoods maynotbedetermined bythedeclarant byway
ofsequential application ofthemethods indicated inArticles 129-132ofthisEdict fordetermining
thecustoms value, orwhere theCustoms Body notunreasonably believes thatthose methods of
determining thecustoms value maynotbeused, thecustoms value shallbedetermined bytheprovisions
method.
When using theprovisions method, theCustoms Body oftheRepublic ofKazakhstan inorder
todetermine customs value, shallusethepriceinformation which isavailable atitsdisposal andwhich
hasbeenreceived asaresult ofindependent expert evaluation (inspection) ofconsistency ofthelevel
ofprices ofthegoods withtheirquality andquantity, andalsoitsclassification.
Thefollowingmaynotbeusedasbasesfordeterminingcustomsvalueofgoodsbytheprovisions
method:
1. theprice ofgoods inthedomestic market oftheRepublic ofKazakhstan;
2. theprice ofthegoods which aresupplied from thecountry ofitsexport tothirdcountries;
3. thepriceofgoods inthedomestic market oftheRepublic ofKazakhstan forgoods ofKazakstani
origin;
4. arbitrarily established orreliably unsupported price ofgoods.
Article 137. Deferrals AndInstalment Plans forPayment ofCustoms Duties AndTaxes
Upon thedecision oftheCustoms Body oftheRepublic ofKazakhstan, which carries outthe
customs processing, unless itisotherwise stipulated inthisEdict andlegislation oftheRepublic of
Kazakhstan, payers maybegranted adeferral oraninstalment planforthepayment ofcustoms duties.
Neither deferrals norinstalment plans forthepayment ofcustoms duties mayexceed three
months from thedateofacceptance ofthecustoms declaration.
When ataxbody grants adeferral oraninstalment planforthepayment ofcustoms duties,
interest shallbelevied inaccordance withtheofficial interest rateofrefinancing established bythe
National Bank oftheRepublic ofKazakhstan.
Ensuring ofthepayment shallbecarried outinaccordance withtheprocedure stipulated in
Article 138ofthisEdict.
Deferrals andinstalment plans forpayment oftaxes shallbecarried outinaccordance with
taxlegislation oftheRepublic ofKazakhstan.WT/ACC/KAZ/3
Page101
Article 138. Providing forPayment ofCustoms Duties AndTaxes
Payment ofcustoms duties andtaxes maybesecured withthepledge ofgoods andtransport
vehicles, guarantees ofthirdparties, orbydepositing ofamounts due.
Under pledge thepledged goods andtransport vehicles shallremain withthepledger, unless
theCustoms Body oftheRepublic ofKazakhstan adopts anyother decision.
Apledger shallnothavetherighttodispose ofpledged items without consent oftheCustoms
Body theRepublic ofKazakhstan.
Registration orpledge andimposition ofclaims upon pledged items shallbecarried outin
accordance withlegislation oftheRepublic ofKazakhstan concerning pledge.
Guarantees orauthorized banks oroforganizations which carry outseparate types ofbanking
transactions maybeusedasasecurity inpayment ofcustoms duties andtaxes.
Theprocedure forusing suchguarantees shallbedefined bytheCentral Customs Body ofthe
Republic ofKazakhstan.
Inthecaseorafailure tocomply withtheterms ofguarantees, theCustoms Body shallhave
therightnottoaccept asasecurity ofpayment ofcustoms payments andtaxes theguarantees ofsuch
banks ororganizations which carry outseparate types ofbanking transactions.
Amounts oftaxpayments andtaxes which would besubject topayment should thegoods be
released forfreecirculation orexported inaccordance withthecustoms regime forexport, shallbe
deposited.
Interest shallnotbeassessed ondeposits forthetimeofcustody. Theprocedure fordepositing
amounts owing andoftheirrefund shallbedetermined bytheCentral Customs Body ortheRepublic
ofKazakhstan.
Article 149. Exemption From Imposition ofCustoms Payments
Thefollowing shallbeexempt from imposition ofcustoms duties:
1. transport vehicles which carry outregular international conveyance offreights, baggage and
passengers, andalsoitems ofmaterial andtechnical supplies andinventories, fuel,foodandanyother
inventories which arerequired fortheirmaintenance enroute, intheplaces oftransit stops, orassets
purchased abroad inrelation toliquidation ofaccidents (break-down) ofthose transport vehicles,
2. items ofmaterial andtechnical supplies andinventories, fuel,foodandanyother assets which
arcexported outside theterritory oftheRepublic ofKazakhstan toprovide forproduction activities
ofKazakstani enterprises, Kazakstani orleased (chartered) vessels chartered byKazakstani enterprises
andorganizations, which engage inseatrade andalsoproduction ortheirtrade which isimported to
theterritory oftheRepublic orKazakhstan, except forcustoms levies forcustoms processing,
3. thenational currency, foreign currency (except foroneusedfornumismatic purposes), and
alsosecurities inaccordance withlegislation oftheRepublic ofKazakhstan;WT/ACC/KAZ/3
Page102
4. goods which asaresult ordamage priortotheclearance thereof through thecustoms boundary
oftheRepublic ofKazakhstan became unsuitable fortheiruseasitems andinventories, except for
customs processing fees;
5. goods which areimported intothecustoms territory oftheRepublic ofKazakhstan orexported
fromthatterritory ashumanitarian aidinaccordance withtheprocedure tobedetermined bytheCabinet
orMinisters;
6. goods which areimported intothecustoms territory oftheRepublic ofKazakhstan orexported
fromthatterritory ascharge-free aidorforcharity purposes including rendering ortechnical assistance
under agreements withgovernments, states, andinternational organizations.
7. goods which areexempt from thecustoms duties inaccordance withlegislation concerning
foreign investments oftheRepublic ofKazakhstan, except forcustoms processing fees;
8. confiscated, ownerless assets andalsoassets winch aretransferred tothestateunder theright
toinheritance;
9. goods which areimported andexported bytheNational Bank oftheRepublic ofKazakhstan;
10. goods which aretransferred through thecustoms boundary oftheRepublic ofKazakhstan within
theframework ofthecustoms regimes which envisage exemption fromimposition ofcustoms payments;
11. goods which aretransferred through thecustoms territory oftheRepublic ofKazakhstan by
physical persons, which arenotintended forproduction oranyothercommercial activities inaccordance
withArticle 108ofthisEdict.WT/ACC/KAZ/3
Page103
ANNEX 5
INFORMATION ONTECHNICAL BARRIERS TOTRADE
Standards andcertification inKazakstan arenotintended toestablish technical barriers totrade
anddisrupt trade. Themaingoals aretoensure safety, health, protection ofproperty ofcitizens, and
protection oftheenvironment.
1. Description ofrelevant laws, regulations, administrative orders, etc., relating to
implementation andadministration oftechnical barriers totrade.
Kazakstan ’slaw“onStandardization andCertification ”,enacted 18January 1993, isthemain
lawgoverning standards andcertification inKazakstan. Other related legislation include:
- Government Resolution (20May1993) No.411“OnStage-by-Stage Introduction of
Compulsory Certification ofProducts intheRepublic ofKazakstan ”;
- Government Resolution (22February 1996) No.225“OnApproval ofProvisions on
State Committee onStandardization, Metrology, andCertification ”;
- Order “onCustom Control overProducts subject toCompulsory Certification, ”dated
January 1994; and
- Government Resolution (29December 1995) No.1891 “OnApproval oftheorder
ofDestruction orfurther Reprocessing ofProducts incaseofRecognizing them as
notSuitable forSaleandConsumption. ”
Other indirectly related legislation includes thefollowing laws:
- “OnProtection ofConsumer Rights, ”dated 5June1991;
- Government Resolution No.637“OnApproval oftheprovision onstateecology
expertise, ”dated 25October 1991;
- “OnSanitary andEpidemiological well-being ofPopulation, ”dated 23March 1995;
- “OnProtection ofEnvironment, ”dated 24June1991; and
- “OnProtection oftheHealth ofPopulation inKazakstan, ”dated 10January 1992.
Therulesandprocedures related tostandardization andcertification arepublicly available and
published inmass media.
Law“OnStandardization &Certification ”
According toArticle 2,standards andcertification inKazakstan arenotintended toestablish
technical barriers totrade. Themain goals areto:
ensure safety ofproducts forprotecting lifeandhealth ofpopulation andprotection ofthe
environment;WT/ACC/KAZ/3
Page104
eliminate technical barriers totrade andensure competitiveness ofKazakstan ’sproducts in
theworld market;
provide forcompatibility andinterchangeability ofproducts; and
meeting consumers interests related toquality.
TheLaw“OnStandardization &Certification ”stipulates thattheStateBody oftheRepublic
ofKazakstan onStandardization, Metrology, andCertification (GosStandard) istheonlygovernment
body responsible forenforcing thelaw“OnStandardization &Certification. ”including:
- adopting, abolishing, andamending standards;
- maintaining thelistofstandards andproviding information regarding standards;
- accrediting domestic andforeign certification bodies tooperate inKazakstan;
- supervising andimposing remedies incaseofviolations (e.g., fines; stoppage of
production, andsale);
- establishing statesystem ofstandardization andcertification;
- representing Kazakstan ininternational organizations concerning issues related to
standardization andcertification; and
- negotiating agreements onstandards andcertification withother countries.
Thelawstipulates thedevelopment andapplication ofthefollowing categories ofstandards:
interstate standards (GOST) andKazakstan statestandards (STRK). Interstate standards (GOST) are
developed bytheCIS Interstate Council onStandardization, Metrology, andCertification
(CISGosStandard). Kazakstan isamember ofCISGosStandard. Thedevelopment, approval, and
registration ofinterstate standards iscarried outinaccordance with procedures established by
intergovernmental agreement between CIScountries. Kazakstan isasignatory oftheCISinterstate
agreement “OnConducting ofAgreed Policy intheField ofStandardization, Metrology, and
Certification, ”13March 1992. Article 1ofthisagreement envisages harmonization ofrequirements
ofnewGOST standards withinternational, regional, andleading national standards. Currently, most
standards usedinindustry areGOST.
According toArticle 8.1ofthislaw,Kazakstan statestandards aredeveloped asresult of
advancement indomestic andforeign science andtechnology. Proposals foradoption, amendment,
orabolishment ofstandards arenormally prepared bytechnical committees. Currently, there are14
sector-oriented technical committees inKazakstan which include producers, consumers, consumer
associations, leading scientists andtechnical experts, scientific andengineering associations, various
ministries andstatebodies (e.g., Ministry ofHealth Protection-regulation ofhealth indicators; Ministry
ofEcology-Environmental Standards), andGosStandard anditsregional bodies. Technical committees
areresponsible fordrafting initial proposals andcirculating them, viadirect correspondence, torelevant
stateandprivate agencies forcomments wellinadvance before these proposals aresubmitted to
GosStandard forfinalapproval. GosStandard approves adoption, amendments, orabolishment ofstate
standards byissuing resolutions ofGosStandard.
Domesticproducershavetherightto(i)produceaccordingtointernational,regionalandnational
standards ofother countries (Article 10.2) and(ii)toproduce according totheir owntechnicalWT/ACC/KAZ/3
Page105
specifications (Article 8.4). Inbothcases, domestic producers must ensure thatthese standards do
notcontradict withGOST orKazakstan statestandards. According toArticle 10,production ofgoods
without normative documents isprohibited. Inaddition, domestic producers mustregister technical
conditions withGosStandard (Article 9.1and9.2)
According toArticle 22,therearetwotypes ofproduct certification: compulsory &voluntary.
Voluntary certification ofproducts isperformed ontheinitiative ofthesupplier (manufacturer orseller)
orconsumer ofproducts todetermine conformity tostandards. Compulsory certification isrequired
toensure safety, life,andhealth ofpopulation; property ofcitizens; andprotection oftheenvironment.
Thelistofproduct categories subject tocompulsory certification isestablished bytheGovernment.
Government Resolution No.411provides suchlist.Article 23states thatKazakstani producers may
notsellinKazakstan theirgoods, which aresubject tocompulsory certification, without obtaining a
certificate ofconformity (“certificate ”).Inaddition, goods requiring compulsory certification may
notbeimportedwithoutsuchcertificate.Hygieneconclusion(result)isoneoftherequisitesforobtaining
thecertificate forproducts requiring sanitary certification.
Theregulations andprocedures forconducting compulsory certification arenotdiscriminatory.
GosStandard enacts procedures andrequirements forcertification andforaccreditation of
certification bodies andtesting laboratories (Standard oftheRepublic ofKazakstan No.3.1-93,
No.3.2-94, No.3.4-94, No.3.3-94, andNo.3.0.94). Anylocal andforeign entity, regardless of
form ofownership, mayapply foraccreditation toperform certification andtesting (Article 3.4of
Standard No.3.2-94). Therequirements foraccreditation arethesame forforeign andlocalentities.
Asof1January 1996, there are33certification bodies and207testing laboratories inKazakstan.
AccordingtotheCISInterstateAgreementonStandards,Metrology,andCertification,Kazakstan
honors certificates provided bystatecertification bodies ofArmenia, Azerbaijan, Belarus, Georgia,
Kyrgyzstan, Moldova, theRussian Federation, Tajikistan, Turkmenistan, Ukraine, andUzbekistan.
Inaddition, there arefiveforeign companies accredited byGosStandard toissue certificates:
- GasdeFrance, France
- MertControl, Hungary
- Société Générale deSurveillance (SGS), Switzerland
- TUF Rheinhald Holding AG,Germany
- Turkish Institute ofStandards, Turkey
GosStandard has19regional bodies (oneineachofthe19regions ofKazakstan) responsible
mainly forsupervision-related activities. Thirteen ofthese regional bodies areaccredited toprovide
certification. Regional bodies mayparticipate intheactivities oftechnical committees todevelop new
standards. However, onlycentral GosStandard mayapprove adoption, abolishment, andamendment.
GosStandard maintains onelistofallaccredited testing andcertification bodies inKazakstan,
allforeign accredited certification companies, andaccredited regional bodies ofGosStandard. Importers
maycontact GosStandard toobtain suchlist.WT/ACC/KAZ/3
Page106
Government Resolution No.411
Government resolution No.411provides alistofallproduct categories subject tocompulsory
certification toensure safety, health, protection ofproperty ofcitizens andtheenvironment. Thislist
covers allproducts requiring certification tomeet product standards, sanitary standards, and
environmental standards:
1. Products forchildren;
2. Drinking water;
3. Food products, products ofagriculture andfeeding industry;
4. Medical equipment;
5. Pharmaceuticals andmedical plantations;
6. Consumer goods thathavecontacts withskin, foodproducts, anddrinking water;
7. Fuelrawmaterials;
8. Household chemicals;
9. Perfume andcosmetics;
10. Toxic chemical andmineral fertilizers;
11. Products ofmachinery building andinstrument making forhousehold;
12. Agricultural machinery;
13. Road andconstruction machinery;
14. Means ofindividual self-defense;
15. Electric, radiotechnical andelectronic items concerning testing electromagnetic
compatibility andsafety;
16. Construction materials andconstruction components;
17. Communications means;
18. Substances, materials, andgoods composed ofthem which have thepotential for
fire-explosion safety;
19. Aircraft, theircomponents andmaintenance;
20. Civil seaships, river andsmall sizeships, shiprefrigerators, lifting tackles and
containers, andmaterials anditems usedinshipbuilding;
21. Rolling-stock, railway tracks, power engineering equipment, alarm systems, and
communication means;WT/ACC/KAZ/3
Page107
22. Automobile transport;
23. Mining equipment, mineelectrical items, explosive materials andmeans forexplosion
works, highpressure vessels, andlifting machines and
24. Equipment included intothesystems ofnuclear power plants andproduction
(manufactures) ofpotential danger.
SaleoftheseproductsinKazakstanwithoutacertificateisprohibited,regardlesswhether
theyaredomestically produced orimported.
GosStandard issued resolution No.1on31January 1995toimplement government resolution
No.411. Resolution No.1 provides adetailed listofproducts inHSnomenclature forcompulsory
certification based onproduct categories provided byGovernment Resolution No.411.
Government Resolution No.255
GovernmentresolutionNo.255approvesprovisionsonGosStandard.Theseprovisionsdescribe
indetails tasks, functions, rights, obligations, andstructures ofGosStandard.
Order onCustom Control overProducts subject toCompulsory Certification
ThisorderisanagreementsignedbetweentheCustomsCommittee,theStateSanitaryInspection,
andGosStandard.
Theorder stipulates thatallproducts, subject tocompulsory certification, imported toKazakstan
shallbecontrolled bythecustoms. Oneofthefollowing documents should beprovided tothecustoms
fortheimportation ofgoods requiring compulsory certification:
- Certificate ofGosStandard issued byanaccredited Kazakstani certification body;
- Certificate provided byanyofthestatecertification bodies ofArmenia, Azerbaijan,
Belarus, Georgia, Kyrgyzstan, Moldova, theRussian Federation, Tajikistan,
Turkmenistan, Ukraine, andUzbekistan;
- Certificate provided byforeign certification bodies accredited byGosStandard; or
- Application-Declaration formwhich maybefiledbytheimporter iftheimported goods
donothaveacertificate. Theimporter maycleartheimported goods from customs
butmustinitiate thecertification process within tendaysanddoesnothavetheright
tosellthese goods untilthecertificate isgranted.
Iftheimporter optsnottofileanApplication-Declaration form, thengoods mustbekeptin
customs storage warehouses atafeeuntiltheimporter obtain acertificate from anyoftheaccredited
certification bodies. Samples maybewithdrawn fortesting. Goods mayremain inCustoms storage
warehouses foramaximum period of3years.
Government Resolution No.1891
Iftheimported product isproven nottocorrespond tostandards andisconsidered tobeof
potential danger, thenaspecial commission isestablished todecide whether theproduct should be
1)reprocessed, 2)destroyed, or3)shipped backtothecountry oforigin. Decisions made bytheWT/ACC/KAZ/3
Page108
commissionmaybeappealedbytheimporter.Duringsuchperiod,thegoodsmustremainundercustoms
supervision andtheimporter must payrequired storage fee.
However, adecision toimmediately destroy thegoods maybetaken ifitsstorage isproven
tobedangerous because ofsanitary reasons, ifthereisnotadequate storage facilities, oriftheproduct
cannot beheldinstorage without further damage.
Other Related Legislation
Thelaw“OnSanitaryandEpidemiologicalwell-beingofPopulation”andthelaw“OnProtection
oftheHealth ofPopulation inKazakstan ”authorize theMinistry ofHealth Protection to(i)develop,
approve, andsupervise theobservation ofsanitary andhygiene norms andrules, (ii)agree onstate
standards andtechnical conditions related tosanitary, before theyareadopted byGosStandard, and
(iii)toensure sanitary-epidemiological well-being ofpopulation. Thelawrequires thatsanitary and
hygiene norms andrulesbepublished anddistributed. Newnorms mustbepublished inthemassmedia
within onemonth aftertheirintroduction.
Also, thelaw“OnProtection ofEnvironment ”authorizes theMinistry ofEcology todevelop
andapproverules,regulations,andstandardsregardingenvironmentalprotection.However,theadoption
ofstandards related tohealth andenvironment isconducted byGosStandard inagreement withthe
Ministry ofHealth andtheMinistry ofEcology respectively.
Thelaw“OnConsumer Protection ”stipulates thatconsumers andconsumers associations have
therighttoparticipate inthedevelopment ofstandards. Inaddition, itstates thatconsumers havethe
righttohavesafeandquality products andaccess tofullandtrustworthy information about products.
2. Information regarding:
(a) names ofpublications, ifany,onwork relating todraft technical regulations orstandards
andprocedures
Kazakstan hasseveral publications onwork related tothedrafting oftechnical regulations,
standards, andprocedures. These publications areissued byGosStandard inaspecial bulletin named
“News ofGosStandard ”andinaperiodical “Information Handbook ofKazakstan Standards. ”In
addition, Kazakstan Society ofConsumers produces similar publications.
(b) thename andaddress oftheenquiry point(s) foreseen inArticles 10.1and10.3ofthe
WTO Agreement onTechnical Barriers toTrade (theAgreement) withanindication as
towhether itis/they arefully operational
Article 12ofthelaw“onStandardization andCertification ”stipulates theestablishment of
theStateFundofNormativeDocumentsatGosStandard.Itsfunctionsincludethefollowing:maintenance
ofdocumentation onstandards andtechnical conditions; acquisition andstorage ofinternational and
regional standards, regulations andrecommendations onstandardization, metrology andcertification;
acquisition ofnational standards offoreign countries; andproviding information onKazakstani and
foreignstandards.Thefundhas28,500normativedocuments,ofwhich4,700areinternationalstandards.
Thisenquiry pointhasbeenestablished andisoperational andresponsible forresponding toallinquiries
bylocalentities andforeign entities andcountries andproviding relevant documents asdescribed in
Articles 10.1and10.3oftheWTO Agreement toTrade.WT/ACC/KAZ/3
Page109
Theaddress andphone/fax numbers ofGosStandard is:
State Fund ofNormative Documents
Kazakstan Committee onStandardization, Metrology &Certification
83Altynsaryn street, Almaty 480035
Phone: (7/8) 3272 210808 (7from outside CISand8from inside CIS)
Fax: (7/8) 3272 286822 (7from outside CISand8from inside CIS)
(c) thename andaddress oftheagency dealing withconsultations asforeseen inArticle 14
oftheAgreement
Theorganization listed inparagraph (b)--GosStandard-- deals withconsultations asforeseen
inArticle 14oftheWTO Agreement onTechnical Barriers toTrade.
(d) thename andaddress ofagencies thataredealing withother specific functions foreseen
intheAgreement
Theorganization listed inparagraph (b)--GosStandard-- mayexecute other specific functions
provided forbytheWTO Agreement onTechnical Barriers toTrade.
(e) thescope ofresponsibility ofthecentral government authorities intheareaofnotification
requirements foreseen inArticle 10.11 oftheagreement andofindividual government
authorities, iftheresponsibility isdivided among twoormore suchauthorities
GosStandard isthesolecentral government authority responsible fornotification procedures
foreseen inarticle 10.11 oftheWTO Agreement onTechnical Barriers toTrade.
(f) measures andarrangements toensure thatnational andsub-national authorities preparing
newtechnical regulations orsubstantial amendments toexisting ones, provide early
information ontheir proposals.
Proposals foradoption, amendment, orabolishment ofstandards areprepared bytechnical
committees. Technical committees produce annual plans forpreparing newstandards oramending
existing ones. These plans areapproved byGosStandard andcirculated toallmembers oftechnical
committees andallconcerned institutions.
Technical committees intheRepublic ofKazakstan include representatives from producers,
consumers, consumer associations, leading scientists andtechnical experts, scientific andengineering
associations, andGosStandard anditsregional bodies. Technical committees areresponsible fordrafting
initial proposals andcirculating them, viadirect correspondence, torelevant stateandprivate agencies
forcomments wellinadvance before these proposals aresubmitted toGosStandard forfinalapproval.
GosStandard approves adoption, amendments, orabolishment ofstatestandards byissuing resolutions
ofGosStandard.
Inaddition, proposals arepublished inrelevant publications. Seesection 2(a)above.WT/ACC/KAZ/3
Page110
ANNEX 6
INFORMATION ONSTATE-TRADING
TheGovernment ofKazakstan doesnotmaintain enterprises covered bytheprovisions ofArticle
XVII andtheunderstanding ontheinterpretation ofArticle XVII ofGATT 1994. Thegovernment
ofKazakstan doesnotgrant toanyprivate orstateenterprise, including marketing boards, exclusive
orspecial rights orprivileges, including statutory orconstitutional powers, intheexercise ofwhich
theyinfluence through theirpurchases orsalesthelevelordirection ofimports orexports. Stateand
private trade enterprises operate inanon-discriminatory andcompetitive market environment. There
arenoimport orexport companies thathaveexclusive rights, except companies, authorized bythe
government totradeinmilitary andnuclear related materials andprecious metals, theactivities ofwhich
fallunder theexceptions ofArticle XXIandXXofGATT 1994.
Inaddition, theLawonDevelopment ofCompetition andRestriction ofMonopolistic Activity
(Article 6andArticle 8),adopted 11June1991, prohibits stateandadministrative bodies fromrestricting
competition inthemarket.
Licenses arerequired fortheimport andexport ofalimited setofproducts (cf.section IV.1.f
andIV.2.d). Anyeconomic entity mayapply toobtain these licenses.WT/ACC/KAZ/3
Page111
ANNEX 7
SERVICES
I. BUSINESS SERVICES
1. Professional Services
Type ofServices Licensing Requirements Qualification Requirements
a)Legal services Ministry ofJustice: advocate
servicesLaw“OnIntroducing Amendments and
Additions totheRegulation ofthe
KazSSR Bar”dated 28June1991. ”
Article 12:-“Advokats ”ableto
appear before courts onbehalf of
clients: tertiary leveldiploma inlaw,
twoyears practice experience, and
licensing examination. Persons,
however, whohavepreviously worked
asAdvokats, judges, investigators,
public prosecutors, stateprosecutors or
whoholdajurisdoctorate areexempt
from thelicensing examination.
-Individuals whohavebeenconvicted
ofacrime oramisdemeanour which,
inthediscretion oftheBar,is
inconsistent withtheroleorstature of
anAdvokat.
-Advokats, andtheirassistants, are
notallowed toserve instateorpublic
institutions andtoconcurrently
privately practice law.
b)Accounting,
auditing and
bookkeeping
servicesMinistry ofFinance:
auditingLaw“OnAuditing Activities inThe
Republic ofKazakstan “dated 18
October 1993:
-Article 2:Requirements for
Registration ofAuditing Firms and
Auditors (both foreign anddomestic):
-Qualification Certificate (valid for5
years) from theQualification
Committee oftheMinistry ofFinance
-Auditors must takeanexam
organized bytheChamber ofAuditors
inorder tobecertified bytheMinistry
ofFinance.
-Article 4:Auditors andtheir
assistants maynotserve instate
bodies andpublic organizations except
instateresearch andteaching
institutions .Persons whohavebeen
convicted ofwhite collar crimes may
notperform auditing activities.WT/ACC/KAZ/3
Page112
Type ofServices Licensing Requirements Qualification Requirements
-Article 8:certification requirements
include tertiary orsecondary education
andeconomic, financial, accounting, or
legalexperience.
c)Taxation services None Notstipulated byanylegislation
d)Engineering
servicesMinistry ofConstruction,
Housing, andBuilding:
design, research, expert, and
construction andinstallation
operations, operations
associated withproduction of
building materials, items,
andmodules (sanitary and
ecological expertise are
required)Law“OnArchitecture andUrban
Planning intheRepublic ofKazakstan ”
dated 22October 1993:
-Article 293:confirmation of
architectural urban-planning
documentation; permission from local
bodies onarchitecture and
urban-planning.
e)Architectural
servicesSame asunder dabove Same asunder dabove
f)Integrated
engineering servicesSame asunder dabove Same asunder dabove
g)Urban planning
andlandscape
architectural
servicesSame asunder dabove Same asunder dabove
h)Medical and
dental servicesMinistry ofHealth
Protection: medical activitiesLaw“OnProtection oftheHealth of
Population intheRepublic of
Kazakstan ”dated 10January 1992
(Article 39):clinical training; diploma
from alicensed tertiary levelmedical
orspecial educational institution, ora
Kazak accredited foreign medical
institution.
i)Veterinary
servicesMinistry ofAgriculture:
veterinary servicesPresident Decree, having force ofLaw
“OnVeterinary medicine “of25July
1995 (Article 5):highorspecial
veterinary secondary education.
j)Services provided
bymidwives,
nurses,
physiotherapists
andparamedical
personnelSame asunder habove Same asunder habove
Accreditation system hassofarbeenestablished formedical anddental services andservices
provided bymidwives, nurses, physiotherapists, andparamedical personnel.WT/ACC/KAZ/3
Page113
2. Computer andrelated services
Type ofServices Licensing Requirements Qualification Requirements
a)Consultancy
services related to
theinstallation of
computer hardwareNone Notstipulated byanylegislation
b)Software
implementation
servicesNone Notstipulated byanylegislation
c)Data processing
servicesNone Notstipulated byanylegislation
d)Data base
servicesNone Notstipulated byanylegislation
3. Research anddevelopment services
Type ofServices Licensing Requirements Qualification Requirements
a)R&D services on
natural sciencesNone Notstipulated byanylegislation
b)R&D services on
social sciences and
humanitiesNone Same asunder aabove
c)Interdisciplinary
R&D servicesNone Same asunder aabove
4. Realestate services
Type ofServices Licensing Requirements Qualification Requirements
a)Involving ownor
leased propertyNone Notstipulated byanylegislation
b)Onafeeor
contract basisNone Notstipulated byanylegislationWT/ACC/KAZ/3
Page114
5.Rental/Leasing services without operators
Type ofServices Licensing Requirements Qualification Requirements
a)Relating toships None Notstipulated byanylegislation
b)Relating to
aircraftNone Notstipulated byanylegislation
c)Relating toother
transport
equipmentNone Notstipulated byanylegislation
d)Relating toother
machinery and
equipmentNone Notstipulated byanylegislation
6. Other business services
Type ofServices Licensing Requirements Qualification Requirements
a)Advertising
servicesNone Notstipulated byanylegislation
b)Market research
andpublic opinion
polling servicesNone Notstipulated byanylegislation
c)Management
consulting servicesNone Notstipulated byanylegislation
d)Services related
toman. consultingNone Notstipulated byanylegislation
e)Technical testing
andanalysis
servicesState Committee on
Standardization, Metrology
andCertification :
marketing andleasing of
measurement instruments.
(sanitary expertise is
required)Notstipulated byanylegislation
f)Services
incidental to
agriculture,
hunting and
forestryMinistry ofEcology and
Bio-Resources-Hunting
Committee OnForestry:
forest resources (ecological
expertise isrequired)Law“Onprotection, re-production
andusage ofanimal world ”of21
October 1993 (article 40):passing test
forhunting card
g)Services
incidental tofishingMinistry ofEcology and
Bio-Resources: fishing
(ecological expertise is
required)Notstipulated byanylegislation
h)Services
incidental to
miningGovernment-Mining
Administration ofOblast :
mining ofexplored
resources (Sanitary,
ecological, andmining
expertise arerequired)Notstipulated byanylegislationWT/ACC/KAZ/3
Page115
Type ofServices Licensing Requirements Qualification Requirements
i)Services
incidental to
manufacturing-Ministry ofIndustry and
Trade :processing ofraw
minerals (Mining expertise
isrequired)
-State Inspectorate for
Supervision ofRational Use
ofFerrous andNon-Ferrous
Metals :procurement,
storage, processing and
marketing bylegalentities
ofscrap andferrous and
non-ferrous metals waste.Notstipulated byanylegislation
j)Services
incidental toenergy
distributionMinistry ofEnergy andthe
CoalIndustry :transmission
anddistribution ofelectric
andthermal energy.Notstipulated byanylegislation
k)Placement and
supply services of
personnelNone Notstipulated byanylegislation
l)Investigation and
securityMinistry ofInternal Affairs
:rendering by
non-governmental entities of
legalservices relating to
detective andsecurity
activitiesNotstipulated byanylegislation
m)Related
scientific and
technical consulting
servicesNone Notstipulated byanylegislation
n)maintenance and
repair of
equipment (not
including maritime
vessels, aircraft or
other transport
equipment)-Ministry ofEnergy and
CoalIndustry :repair of
boilers, vessels and
pipelines which operate
under pressure; repairs of
explosion-protective electric
equipment (mining expertise
isrequired)
-Ministry ofConstruction,
Housing andBuilding :
repair ofpassenger elevators
(mining expertise is
required)Notstipulated byanylegislationWT/ACC/KAZ/3
Page116
Type ofServices Licensing Requirements Qualification Requirements
-Ministry ofIndustry and
Trade :repair ofchemical,
drilling, mining equipment,
equipment andcontrol
systems, safety andalarm
systems; lifting
devices.(ecological and
mining expertise are
required)
-Ministry oftheOiland
GasIndustry :repair ofoil
andgas-related equipment;
repair ofgassystems for
housing andutility facilities
(mining expertise is
required)
-Ministry ofGeology and
Protection oftheSubsurface
:repairs ofgeological
prospecting equipment
(mining expertise is
required)
-State Committee on
Standardization, Metrology
andCertification :repair of
measurement instruments
(sanitary expertise is
required)
o)Building -
cleaning servicesNone Notstipulated byanylegislation
p)Photographic
servicesNone Notstipulated byanylegislation
q)Packaging
servicesNone Notstipulated byanylegislation
r)Printing,
publishingNone Notstipulated byanylegislation
s)Convention
servicesNone Notstipulated byanylegislationWT/ACC/KAZ/3
Page117
II. COMMUNICATION SERVICES
Type ofServices Licensing Requirements Qualification Requirements
1.Postal services Ministry ofTransport and
Communications :activities
inthesphere ofpostal
communications except for
technological andinside
business designation aswell
ascourier services;
operation ofnational main
andinternational
communication lines
(ecological expertise is
required).Notstipulated byanylegislation
2.Courier services None Notstipulated byanylegislation
3.Telecommunication
servicesMinistry ofTransport and
Communications :
telecommunication
services; operation ofmain
national andinternational
linesoftelecommunications
(ecological expertise is
required).Notstipulated byanylegislation
a)Motion picture and
video tapeproduction
anddistribution
servicesNone Notstipulated byanylegislation
b)Motion picture
projection servicesNone Resolution ofGovernment “Onrules
ofpublic demonstration ofmotion
picture andvideo production inthe
Republic ofKazakstan ”of5July
1995 (article 1):certification on
permission ofrelease ofmotion
pictures andvideo production.
c)Radio television
servicesNone Notstipulated byanylegislation
d)Radio television
transmission servicesMinistry ofTransport and
communications :
utilization ofradio
frequency range (sanitary
expertise isrequired)Notstipulated byanylegislation
e)Sound recording None Notstipulated byanylegislation
Communication services constituted approximately 1.0% ofGDP in1994 and2%in1995.
There aremore than600companies inthissector. About 2%oftheworkforce isemployed in
communications services.WT/ACC/KAZ/3
Page118
1. Postal services
TheRepublican State Enterprise ofPostal Communications owns andoperates thenational
postalsystem.TariffsformaintypesofservicesareestablishedbyAnti-MonopolyCommitteeaccording
toGovernment Resolution No.1171 dated 19October 1994.
TheinfrastructureoftheRepublicanStateEnterpriseofPostalCommunicationishighlydeveloped
throughout thewhole country. Thetotalnumber ofpostoffices is4355. They provide alltypes of
postal services bothwithin andacross theborders ofKazakstan. Themain services include:
- correspondence delivery (letters, postcards, business correspondence, registered mail);
- distribution ofpapers andmagazines;
- parcel andcourier services;
- delivery(mailing) ofpensions andremittances;
- distribution oftelegraph messages; and
- express mailwithin theRepublic ofKazakstan, andtoChina andKyrgyzstan.
Ingeneral, thespeed ofprocessing anddistributing mailcorresponds tointernational standards.
Table A7.1 shows thevolume ofmaincorrespondence handled bythepostal services during 1994and
thefirsthalfof1995. Information onexpress mailpackages isnotavailable.
Table A7.1 -Types ofCorrespondence (Millions) for1994 andfirsthalfof1995
Type ofCorrespondence 1994 1995
Letters 69.8 51.0
Newspapers &Magazines 257.6 165.3
Parcels 0.6 0.5
Remittances andPensions 23.6 21.8
Cables 6.8 6.8
2. Courier services
There are7state, 6private, and5foreign companies rendering parcel andcourier services
throughout Kazakstan. Companies likeDHL, UPS, Pony Express, TNT, AseExpress dominate in
international courier services.
3. Telecommunication services
Thetelecommunications sector hasbeenderegulated inKazakstan. TheNational JointStock
Company “Kazaktelecom “owns thetelecommunications network. Kazaktelecom has35subsidiaries
ofwhich 31render telecommunication services. TheAnti-Monopoly Committee setsthetariff rates
fortelecommunication services.WT/ACC/KAZ/3
Page119
Allother telecommunications companies haveequal access tothenetwork toprovide their
services. TheMinistry ofTransportation andCommunication hasissued licenses to46companies
rendering different types oftelecommunication services.
Several foreign companies (Australian, Canadian, French, German, Turkish, andUS)currently
havecontracts andformed jointventures tomodernize andexpand thetelecommunications infrastructure
inKazakstan andtoprovide various types oftelecommunication services. Kazakstan ’sgoalistomeet
OECD standards (40lines per100inhabitants). Currently, there are20satellite earth stations in
Kazakstan.
Themost prominent telecommunication services inKazakstan arethefollowing:
a. Voice telephone services
Local telephone services aremostly provided bythelocal subsidiaries of“Kazaktelekom."
Inaddition, there are5private companies rendering localtelephone services and1private company
renderinginternationalcalls.Automaticlongdistance,includinginternational,communicationisavailable
inmajor cities. Thetelephone density is13.2per100people. Thenumber oflongdistance callsmade
in1994 and1995 wasapproximately 125.9 million (1.8million international) and127.7 million
(3.0million international) respectively.
b. Telex services andteletype services
There aremore than3,000 users oftelexandteletype services (bothinternal andinternational)
inthecountry.
c. Telegraph services
Allmajorpostofficeshavethecapabilitiestosendcablestoallcountries.In1994,approximately
6.8million telegrams were sent. Asimilar number oftelegrams wasalsosentin1995.
d.Facsimile services
Many postoffices, hotels, business centres, andotherprivate entities provide facsimile services.
Regular phone linesmaybeusedforfacsimile transmission.
e. Installation, operation, maintenance ofradiotelephone systems, mobile communication
systems, paging systems.
There are7local and3jointventure companies rendering suchservices. Thedemand for
cellular telephone communications isgrowing veryrapidly inKazakstan. There aretwojointventures
withforeign participation rendering cellular communication services.
f. Electronic mail
There aremore than10companies, mostly foreign, inKazakstan providing electronic mail
services viatheInternet. Such services areonlyprovided inlarge cities.
With themodernization ofthetelecommunication network, newtypes oftelecommunication
services likethose listed below arebecoming available gradually inKazakstan:
- Packet-switched datatransmission services;WT/ACC/KAZ/3
Page120
- Circuit-switched datatransmission;
- Private leased circuit services;
- Voice mail;
- On-line information anddatabaseretrieval;
- Electronic datainterchange (EDI);
- Enhanced/value added facsimile services, incl.storeandforward, storeandretrieve;
- Code andprotocol conversion; and
- On-line information and/or dataprocessing (including transaction processing).
4. Audio-visual services.
a. Motion-picture andvideo tapeproduction anddistribution services.
There are19studios (1stateand18private) producing localmovies. There areatleast29
companies distributing foreign andlocalfilms andvideotapes.
b. Motion-picture projection service
There are221movie theaters inKazakstan. In1995, more than6Million attended movie
theaters.
c. Radio television services
There isawidenetwork ofradio andtelevision broadcasting inKazakstan. Inaddition tostate
radio andtelevision, there areatleast30private television andradio companies, some ofwhich have
24-hour broadcast. Advertising services arethemain services provided byprivate andpublic radio
andTVstations
Satellite television services arealsoprovided inbigcities including access tomore than20
international programs (e.g., CNN, BBC, Pakistani TV,Canal France International, IndiaTV,Turkish
International TV,StarTV,Sport TV,andMTV). There arefivecompanies inKazakstan providing
satellite TVservices.
d. Radio television transmission services
Radio andtelevision transmission services areprovided bystateandnon-state networks ofradio
television companies. Kazakstan possesses arelatively welldeveloped network ofrelaying stations
linking ittoallcountries ofCISincluding 8radio andtelevision transmission services (5private and
3state).
Atelecommunications consortium hasbeenestablished toimplement anUS$29Million project
aimed atestablishing anational satellite system oftelevision, broadcasting, transmission ofdata.
Transmission potential isdescribed inthefollowing table:WT/ACC/KAZ/3
Page121
Table A7.2
Transmission 1994 1995 (first sixmonths)
Number ofmain radio relay units 2,953,791 2,769,294
Receiving stations ofsatellite TV(units) 1,336 1,424
Radio stations ofUSW 4Mbroadcasting 134 145
e. Sound recording
Services inthesphere ofsound recording areprovided bystatetelevision andradio companies
andawell-developed network ofnon-state recording studios. There areabout 1000 small andlarge
recording studios throughout thecountry.
III. CONSTRUCTION AND RELATED ENGINEERING SERVICES
Type ofServices Licensing Requirements Qualification Requirements
1.General
construction work
forbuildingsame asunder I.1.d above same asunder I.1.d above
2.General
construction work
forcivil
engineeringMinistry ofConstruction,
Housing andBuilding:
construction work associated
withgasification of
residential andutility
facilities (mining expertise is
required).Same asunder I.1.d above
3.Installation and
assembly workMinistry ofConstruction,
Housing andBuilding :
installation ofoilandgas,
geological prospecting, and
mining equipment (mining
expertise isrequired);
installation ofgasservices to
residential andutility
facilities; installation of
passenger elevators (mining
expertise isrequired)Same asunder I.1.d above
4.Building
completion and
finishing workNone Notstipulated byanylegislationWT/ACC/KAZ/3
Page122
IV. DISTRIBUTION SERVICES
Type ofServices Licensing Requirements Qualification Requirements
1.Commission
agents ’servicesNone Notstipulated byanylegislation
2.Wholesale trade
servicesNone Notstipulated byanylegislation
3.Retailing
servicesNone Notstipulated byanylegislation
4.Franchising None Notstipulated byanylegislation
V. EDUCATIONAL SERVICES
Type ofServices Licensing Requirements Qualification Requirements
1.Primary
education servicesNone Law“OnEducation intheRepublic of
Kazakstan ”of18January 1992 (Article
27):special training andeducation.
2.Secondary
education servicesMinistry ofEducation :
activities ofeducational
institutions which provide
secondary andsecondary
vocational education with
therighttoissue diplomas
inspecific professions.Same asunder 1above
3.Tertiary Level
education servicesMinistry ofEducation :
activities ofeducational
institutions which provide
higher education withthe
righttoissue diplomas in
specific professionsSame asunder 1above
4.Adult education None Notstipulated byanylegislation
VI. ENVIRONMENTAL SERVICES
Type ofServices Licensing Requirements Qualification Requirements
1.Sewage services None Notstipulated byanylegislation
2.Refuse disposal
servicesNone Notstipulated byanylegislation
3.Sanitation and
similar servicesMinistry ofHealth
Protection: disinfecting,
deodorizing ofresidential
andcivilfacilities (sanitary
expertise isrequired).Notstipulated byanylegislationWT/ACC/KAZ/3
Page123
VII. FINANCIAL SERVICES
Type ofServices Licensing Requirements Qualification Requirements
1.Allinsurance and
insurance related
servicesState Insurance Supervision:
direct insurance activitiesPresident Decree, having force ofLaw
“OnInsurance “of3October 1995:
-Article 43:registration as
insurance company; minimal
charter fundis40,000 times
monthly evaluation index
c)Reinsurance and
retrocessionSame asunder 1above Notstipulated byanylegislation
d)Services auxiliary
toinsurance
(including
broking andagency
services)None Notstipulated byanylegislation
2.Banking and
other financial
services (excl.
insurance)National bank:banking
activities, activities of
clearing andsettlement
organization, performance of
transactions associated with
foreign currency, which are
considered inaccordance
withthelegislation as
currency transactions.President Decree, having force ofa
Law“OnBanks andBank Activity in
theRepublic ofKazakstan “of31
August 1995:
-(Article 1)Permission ofNational
Bank andstateregistration asa
bankattheMinistry ofJustice;
-(Article 12)joint-stock company
form (without righttoissue bearer
stocks) forabank(except state
bank).
-Minimal charter fundforallbanks
isUS$3Million; Forinvestment
bankisUS$4.6Million
-Leading bankemployees must
havehigheducation andsufficient
knowledge ofbanking and
economic legislation. They must
nothaveanycurrent conviction
andshould nothaveahistory of
managing anenterprise that
became bankrupt ormanaging a
bankwhose license wasrevoked
duetofailure tocomply withlegal
requirements.
-Chairman oftheboard ofdirectors
andhisdeputies, theGeneral
Bookkeeper andhisdeputies, and
theFirstChairman and
Bookkeeper ofabranch are
appointed withtheconsent ofthe
National Bank andasarulemust
havemore thantwoyears length
ofservice inbankingWT/ACC/KAZ/3
Page124
Type ofServices Licensing Requirements Qualification Requirements
g)Participation in
issues ofallkinds of
securities, incl.
under-writing and
placement asagent
andprovision of
service related to
suchissuesNational Securities
Commission :professional
activities inthesecurities
market andactivities of
Stock Exchanges;
manufacture andimport
securities papersPresident Decree, having force ofa
Law“OnSecurities andStock -
Exchange intheRepublic of
Kazakstan “of21April 1995
(Article 17):registration ofsecurities;
examination ofdocumentation;
(Article 32)Minimal charter fund:
10,000 times monthly evaluation
index.
j)Settlement and
clearing services for
financial assets, incl.
securities, derivative
products, andother
negotiable
instrumentsSame asunder gabove Same asunder gabove
Financial services inKazakstan encompass banking, insurance, hardcurrency exchanges, and
stock markets.
1. Allinsurance andinsurance related services.
Theinsurance market inKazakstan isarelatively newanddeveloping market. Thelegalbase
forthissector consists ofthefollowing lawsandregulations:
- Decree ofthePresident having theforce oflawof3October 1995 “OnInsurance ”;
- Civil Code oftheRepublic ofKazakstan of27December 1994;
- Decree ofthePresident having theforce oflawof2May 1995 “OnEconomic
Partnerships ”;
- Decree ofthePresident having theforceoflawof15June1995“OnMedical Insurance
ofCitizens ”;
- Decree ofthePresident having theforce oflawof17April 1995 “OnLicensing ”;
- ResolutionofthePresidentof17April1995No.2201“OnMeasuresonImplementation
oftheDecree thePresident having theforce oflaw‘OnLicensing ’”;
- ResolutionofthePresidentof15June1995No.2330“OnMeasuresforImplementation
oftheDecree ofthePresident having theforce oflaw‘OnMedical Insurance of
Citizens ”;
- Resolution oftheGovernment of29December 1995 No.1894 “OnImplementation
oftheResolution ofthePresident of17April N2201“Onmeasures onImplementation
oftheDecree ofthePresident having theforce oflaw‘OnLicensing ’”;
- Resolution oftheGovernment of19December 1995 No.1803 “OnState Insurance
Supervision Body”;andWT/ACC/KAZ/3
Page125
- Resolution oftheGovernment “Onapproval ofregulation onlicensing ofinsurance
activity ontheterritory ofKazakstan ”of19April 1996; No.478.
TheDecree “OnInsurance ”opened competition intheinsurance sector ofKazakstan and
permitted foreign insurance companies toformjointventures (maximum foreign participation islimited
to50%).
TheDecree prohibits granting anycompany, regardless ofitsform ortypeofownership,
exclusive rights intheinsurance business.
AfterregistrationasalegalentityattheMinistryofJustice,insuranceactivitiesmustbelicensed.
Theminimum charter capital required forregistering aninsurance company is40,000 times themonthly
evaluation index. Insurance licenses areapplied for,andgranted by,theStateBody forSupervising
Insurance (Gosstrahnadzor) which isanindependent entity supervising insurance activities inKazakstan.
According tothelaw“OnInsurance, ”therearetwotypes ofinsurance (personal andproperty)
which require separate licenses. Personal insurance includes health, life,anddisability insurance; and
property insurance includes commercial risksandcivilandlegalliabilities. Inaddition, insurance may
bevoluntary ormandatory.
Thefollowing insurance-related activities donotrequire licenses:
- activities ofinsurance agents andbrokers;
- activitiesconnectedwithevaluationofinsurancerisks,damageassessment,andinsurance
compensation; and
- consulting services intheinsurance field.
Currently thereare53insurance companies registered andlicensed inKazakstan andonejoint
venture withforeign participation. Thetotalcharter capital ofalllocalcompanies iscurrently equal
toUS$6.2Million. Thetotalamount ofinsurance premiums paidin1995 wasapproximately
US$10Million andthetotalamount ofpaidinsurance claims in1995 wasequal toUS$3Million.
a. Life, accident, health, commercial, andpolitical insurance services
Insurance companies inKazakstan offerthefollowing types ofservices: life,accident, health,
andcommercial insurance. Article 43ofthe“Insurance Law”prohibits companies engaged inlife
insurance activities from engaging inother types ofinsurance activities.
Thelargest quantity ofinsurance policies purchased inKazakstan include thefollowing:
commercial risksandcredits; property; transport; cargo, property ofindividuals against catastrophic
events,fireandburglary;voluntarymedical.Typesofinsurancesuchasproductliability,environmental,
andmalpractice (doctors, lawyers, other professional activities) havestarted todevelop.
There arenodomestic companies offering political riskinsurance. However, investors in
Kazakstan maypurchase insurance ofpolitical riskfromeither aninternational commercial insurance
company orfrom World Bank MIGA.WT/ACC/KAZ/3
Page126
b. Reinsurance andretrocession
Foreign re-insurance brokers arepermitted tohaverepresentative offices, branch offices or
fully-owned subsidiaries inKazakstan. Licenses arenotrequired forre-insurance brokers. According
tothelaw“OnInsurance, ”riskcanbereinsured byforeign orlocalre-insurers butthereisacompulsory
5%riskretention inKazakstan. Inother words, nomore than95%ofriskmaybere-insured onthe
international markets.
Currently, there areseveral foreign re-insurance brokers operating inKazakstan including
Sedgwick Ltd., Johnson andHiggins Ltd., Alexander Howden Ltd., and“Willis Carana. ”
c. Services auxiliary toinsurance (including broking andagency services)
Itisestimated thattherearemore than300insurance brokers andagents inKazakstan. Licenses
arenotrequired forinsurance agents andbrokers.
2. Banking andother financial services (excluding insurance)
Currently, thebanking sector isthemostdeveloped financial service inKazakstan. Banking
activities aregoverned bythefollowing laws:
- theConstitution, dated 30August 1996;
- theCivil Code, dated 27December 1994;
- President Edict No.2446 “OnBanks andBanking Activities, ”31August 1995 and
itsamendments of27January 1996;
- President Edict No.2155 “OntheNational Bank oftheRepublic ofKazakstan, ”
30March 1995 anditsamendments ofJanuary 1996; and
- “TheRules ofHard Currency Transactions ”oftheNational Bank, No.188,
24November 1994 anditsamendments.
Atwo-tierbankingsystemexistsinKazakstan:theNationalBankofKazakstan(NBK)represents
theupper tierandallother banks represent thelower tierofthebanking system.
Upper-Tier: TheNational Bank ofKazakstan (NBK)
(cf.Section II.2.b)
Lower-Tier: Other Banks
Starting from 1990,233 banking licenses havebeengranted bytheNational Bank; only118
banks arecurrently fullyoperational. Thenumber ofbanks isdecreasing duetotighter National Bank
regulation; mostly related tominimum capital requirements. Atthistime,inorder tohaveafullbanking
license (which isnecessary tooperate inhardcurrency without restrictions) aoperating bank must
becapitalized withaminimum equivalent toUS$1.5Million. Banking licenses forTenge operations
onlyrequire aminimum capitalization ofUS$500,000 foroperating banks. There isaprofessional
Association ofBanks ofKazakstan which isanon-governmental organization.WT/ACC/KAZ/3
Page127
According totheEdict No.2446, thefollowing types ofbanks mayexist:
a. Bytypes ofactivities
- Deposit Banks -thathavetheright toaccept deposits, butnorighttodealinstock
market;
- Investment Banks -thatcannot accept deposits except fixedtermdeposits ofotherbanks
butmaycarry outbothdirect andportfolio investment;
b. Bytypes ofcapital ownership
- State-Owned Banks;
- Foreign Banks (banks withmore than50%foreign ownership);
- Joint Venture Banks (banks withforeign ownership lessthan50%);
- Interstate (inter-governmental) Banks; and
- Subsidiary Banks (50% owned byanother bank).
AsofDecember1995,therewere6foreignbanks,7jointventurebanks,oneinter-governmental
(Central Asian Bank-Kazakstan, Kyrgyzstan, andUzbekistan), 3state-owned banks.. About 85%of
these banks havetheirheadquarters inAlmaty and25%ofallbanks havebranches inother oblasts.
Approximately 12banks havebranches inalmost every oblast. Thetotalregistered charter fundof
these133banks is17.7billion tenge ($270 million), with16.3billion tenge (US$ 249million) actually
paid-in tocharter funds. Currently, there arenoinvestment banks.
Juridical persons mayholdcurrent accounts bothintenge andinhardcurrency, aswellas
investments inCD’s,T-bills, andbillsofexchange. Opening ofbankaccounts abroad isprohibited
without special permit from theMinistry ofFinance.
Limitations andQualification Requirements inBanking
Thecurrent legislation imposes nolimitation onthefollowing:
- thenumber ofsuppliers ofbanking services;
- thetotalnumber ofservice operations ortheirquantity output; and
- thetotalnumber ofthenatural persons (including foreigners) thatmaybeemployed
inthebanking sector.
Article 22ofEdict No.2446, “theaggregate registered fundofbanks withforeign participation
maynotexceed 25%oftheaggregate registered charter fundofallbanks oftheRepublic ofKazakstan
except asapproved bytheNBK. ”Inaddition, onemember oftheBoard mustbeaKazakstani citizen
andfunds oftheforeign bankshould bedeployed indomestic assets.
Prudential ratios setbyNational Bank(liquidity ratio, capital adequacy ratio, etc.)restrict risks
ofoperations ofcommercial banks inorder toensure stable andsmooth functioning ofthebankingWT/ACC/KAZ/3
Page128
system asawhole. Some ofthese ratios maybeviewed aslimitation tothetotalvalue ofservices
andassets. Nonetheless, these restrictions, eventhough more rigidthanthose found inindustrialized
countries, arenecessary inorder toprotect clients ofcommercial banks fromriskyinvestments. Today,
there are6prudential ratios (normatives) thatshould beobserved bysecond-tier banks asfollows:
capital adequacy (8%ofriskweighted assets and4%oftotalassets), maximum riskperlender (25%
ofowncapital, 10%forpersons connected tobank byspecial relations), liquidity (20%), reserve
requirements (15%), share offixed assets (20%) andgoodwill (1%) incharter fund, maximum size
oftheopencurrency position toowncapital (30% atonecurrency ,50%netsum).
According toArticles 19-27 ofEdict 2446, thebasic requirements forbanking license include
abusiness plan, intentions oftheapplicant, andqualification ofthetopexecutives (3years ofservice
inthebanking sector forCEO andChief Accountant and2years forDeputy Chairman andDeputy
Chief Accountant). Edict 2446 requires that,prior toobtaining alicense, abankmust(1)receive a
written permission oftheNational Bank, (2)register asalegalentity attheMinistry ofJustice, (3)
openanoffice, and(4)establish allfacilities (building, hardware, security, etc.)
Inaddition, foreign banks musthavearepresentative office inKazakstan foroneyearbefore
theycanapply foralicense. Off-shore companies maynotbefounders orshareholders ofKazakstani
banks. Therating oftheparent bank, bymajor rating agencies, isalsotaken intoaccount when granting
banklicenses.
According toArticle 8ofEdict 2446, investment banks maynotcollect deposits except for
fixed termdeposits from other banks. Theminimum capital requirement foraninvestment bankis
Tenge 200Million (US$ 3Million) ifestablished before theendof1996 andTenge 300Million
(US$ 4.6Million), thereafter.
a. Acceptance ofdeposits andother repayable funds from thepublic
Thepublic mayplace theirfunds withdeposit banks either byopening personal accounts or
buying bankCDs. Several banks areoffering investments in91-day or182-day T-bills. Asof1May
1996, Thetotalsavings ofthepopulation deposited incommercial banks isapproximately US$235
Million (2.0times more thanJanuary 1995). Thetotalestimated M2isUS$1.74billion on1May
1996.
b. Lending ofalltypes, including interalia,consumer credit, mortgage credit, factoring and
financing ofcommercial transaction
Lending ofalltypes, withtheexception ofissuance ofcredits tonatural persons inhard
currency, ispermitted. Inpractice, lending hasbeenlimited tocommercial lending andfactoring,
aswellasto“repo”typeoperations withstatesecurities. Consumer credit andmortgage services are
limited atthemoment duetotheirhighinherent risk. Even commercial lending isassessed ashighly
risky withinterest ratesvarying currently from 18-30% inUS$and45-60% inTenge.
c. Financial leasing
There isnolegislation thatcovers financial leasing currently inKazakstan. Theonlyleasing
activities arerealestate andoffice building rentals andvehicle/vessel leasing withorwithout operators
orcrews.WT/ACC/KAZ/3
Page129
d. Allpayment andmoney transmission services
Company-to-company payments within theRepublic ofKazakstan aremade bybanks mostly
viatheClearing andSettlement Center oftheNational Bank, clearing chambers ofoblast centres, and
increasingly through thenetofdirect correspondent accounts ofcommercial banks. Usually ittakes
1-3daysfortheamount transferred tobecredited tothecustomer account inthedestination bank.
Banks areallowed toperform afullrange ofhardcurrency operations including:
- taking andplacing deposits, including loans andclient/correspondent accounts;
- buying andselling payment documents denominated inhardcurrency; and
- buying andselling hardcurrency atexchanges andOTC market andauctions from
andtonatural persons (both incashandnon-cash) andfrom andtolegal persons
(non-cash).
Themajority ofinternational transfers areperformed bythelargest banks, members ofSWIFT
orReuters. Thebasic regulation governing international transfers isNational Bank Regulation No.
188. Anumber ofbanks havebecome fullmembers oftheSWIFT interbank settlement system and
useplastic cards intheirsettlements.
e. Guarantees andcommitments
Guarantees areusually offered bybanks asapartoftradefinancing ona100% collateral basis
(they areveryrarely offered without collateral). In1995, there wasanagreement between 12major
banks intheRepublic ofKazakstan onmutual acceptance ofguarantees. Today theguarantees ofseveral
banks aregenerally accepted.
f. Trading forownaccount orforaccount ofcustomers, whether onanexchange, inan
over-the-counter market orotherwise
Trading forownaccount andforaccount ofcustomers isdone bothonanexchange and
over-the-counter market. Hard currency, T-bills, andfutures aretraded onanexchange:
Foreign exchange istraded attheKazak Interbank Currency andStock Exchange (KICSE).
Thedailytrading ofKICSE isabout $5-7million, withUSdollar, Deutschemarks andRussian rubles
being theonlythree currencies traded. Interbank OTC hardcurrency market israpidly growing.
Thevolume oftransactions atOTC markets currently exceeds approximately twice thevolume of
transactions atexchange.
T-bills aretraded mostly atOTCmarkets [approximately 98%]. Thegovernment started issuing
91-day T-bills in1994and182-day T-bills inearly1995, Theaggregate value ofKazak T-bills currently
isapproximately US$120Million. Asecondary market emerged inearly summer 1995.
Futures including contracts forUSdollar aretraded attheKazak International Agro-Industrial
Exchange (KIAIE) andsince May1995atKazak Interbank Currency andStock Exchange (only US$).
KIAIE wasestablished totrademajor export commodities atspotrates, lateritbecame themainplace
forfutures trading, including wheat, metals andUSdollars. Futures aretheonlyderivative product
traded atthemoment.WT/ACC/KAZ/3
Page130
Thetrading volume ofKICSE, CASE, KIAIE, accounts formore than95%ofthetotaltrading
onexchanges.
TheOTC market isquite large bylocalstandards inbillsofexchange andbankcertificates
ofdeposit. Billsofexchange worth US$70Million wereissued byKazkommertsbank in1995, and
approximately US$165Million worth ofKOBillsofExchange wereissued bytheStateFood Stuff
Corporation. Over adozen major localbanks havetheirCD’sinthemarket.
Cheques andshares ofstock existbuthaveverylimited liquidity. TheNational Bank andthe
Ministry ofFinance regulated theissuance andcirculation oftheseinstruments. Since December 1995,
theNSC (National Securities Commission) isactively creating andpromoting legislation related to
securities, including billsofexchange. According tothelaw“OnSecurities andStock Exchanges, ”
onlysecurities registered withNSC maybetraded inKazakstan. Anybroking anddealing instock,
andother non-state securities, without arelevant NSC license, isillegal.
g. Participation intheissues ofallkinds ofsecurities, including under-writing andplacement
asagent (whether publicly orprivately) andprovision ofservice related tosuchissues
Underwriting andplacement (both debtandequity, private andpublic) areregulated bythe
NSC andviewed assecurities dealings. Accordingly, therequirements areasfollows:
- issuance ofcorporate debt/equity must beregistered withNSC;
- issueofbankdebt/equity mustberegistered firstwiththeNational Bank andthenwith
theNSC;
- theissuer must beaKazakstani juridical persons; and
- theunderwriter oragent must haveanNSC license.
h. Money broking
There isnomoney broking market inKazakstan. However, there exists amarket of“short
money ”(Almaty Interbank Financial Chamber). About tenbanks participate insuchtrading.
i. Assetmanagement,suchascashorportfoliomanagement,allformsofcollectiveinvestment
management, pension fund management, custodial depository andtrust services
Notypesofassetmanagement, including portfolio andcashmanagement arecurrently regulated
bynational legislation. There arefewprivate (non-governmental) pension funds, thataremanaged
bytheirdirectors inaveryconservative way.
Depository andcustodial services areunder way. TheState Property Committee hasan
information andsettlement Center thatisactually aregistrar forjointstock companies established at
thebaseofformer stateenterprises. Itisexpected thatthisdepartment mayturnintoacentral depository,
similar totheDepository Trust Company intheUSA.
There are12localbanks thatprovide depository andcustodial services fortheirclients dealing
inT-bills andbillsofexchange. These services arenotyetavailable forstock andprivate bondtrading.
Trust services arenotpermitted under thecurrent legislation.WT/ACC/KAZ/3
Page131
j. Settlement andclearing services forfinancial assets, including securities, derivative
products, andother negotiable instruments
Theonlysettlement andclearing isoffered byexchanges. Settlement andclearing ofT-Bills
isperformed bythedepository ofNational Bank. IfdoneinOTCmarket, thetransaction usually bears
higher riskofnon-delivery andnon-payment.
k. Advisory andother auxiliary financial services onalltheactivities listed inArticle 1B
ofMTN.TNC/W/50, including credit reference andanalysis, investment andportfolio
research andadvice, advice onacquisitions andoncorporate restructuring andstrategy
Auxiliaryfinancialservices(e.g.,creditreferenceandanalysis,investmentandportfolioresearch,
andadvice onacquisitions andcorporate restructuring andstrategy) areoffered mostly byinternational
consulting, legal, andauditing companies. Some smaller localplayers, likeKazkommertsbank and
Narodney Savings bankrender auxiliary services tomany stateandprivatized companies.
l. Provision andtransfer offinancial information, andfinancial dataprocessing andrelated
software byproviders ofother financial services
Day-to dayfinancial information isprovided bythelocalinformation agency Maksat anda
company named Kazakstan Business Services, including on-exchange trading ofcurrency, T-bills, and
stock. Reuters hasarepresentative office inAlmaty andinforms itssubscribers about important
economic andfinancial events.
National Bank Decree No.237of26December 1995requires thatthetenlargest banks must
adopt international accounting standards by1April 1996 andremaining banks by1July1996.
VIII. HEALTH RELATED AND SOCIAL SERVICES
Type ofServices Licensing Requirements Qualification Requirements
1.Hospital services Same asunder I.1.h Same asunder I.1.h
2.Other human
healthSame asunder I.1.h Same asunder I.1.h
3.Social services Same asunder I.1.h Same asunder I.1.h
IX. TOURISM AND TRAVEL RELATED SERVICES
Type ofServices Licensing Requirements Qualification Requirements
1.Hotels and
restaurants (incl.
catering)Local administration :
catering (sanitary expertise is
required).Notstipulated byanylegislation
2.Travel agencies
andtouroperators
servicesMinistry ofYouth, Tourism,
andSport: Tourist Services
ActivitiesNotstipulated byanylegislation
3.Tourist guides
servicessame asunder 2above Notstipulated byanylegislationWT/ACC/KAZ/3
Page132
X. RECREATIONAL, CULTURAL AND SPORTING SERVICES (other thanaudio -visual
services)
Type ofServices Licensing Requirements Qualification Requirements
1.Entertainment
services (incl.
theater, livebands
andcircus services)Local administration :
organization andconduct of
lotteries (except forstate
lottery), totalizators, casino.Notstipulated byanylegislation
2.News agency
servicesNone Notstipulated byanylegislation
3.Libraries,
archives, museums
andother cultural
servicesNone Notstipulated byanylegislation
4.Sporting and
other recreational
servicesNone Notstipulated byanylegislation
XI. TRANSPORT SERVICES
Type ofServices Licensing Requirements Qualification Requirements
1.Maritime
transport servicesMinistry ofTransport and
Communications :passenger
andfreight transport by
marine andriver (sanitary
expertise isrequired).Law“OnTransportation inthe
Republic ofKazakstan ”of21
September 1994: -Article 15:
certification; registration; compulsory
civilliability insurance;
-Article 16:fornavigating right:
qualification testandmedical
attestation
2.Internal
waterways transport
servicesSame asunder 1above Same asunder 1above
3.Airtransport
servicesMinistry ofTransport and
Communications :transport
ofpassengers andfreights by
aviation (sanitary expertise is
required)Same asunder 1above
e)Supporting
services forair
transportMinistry ofTransport and
communications :airport
activities relating toservices
toaircraft, passengers and
freights atairports (sanitary
expertise isrequired).Law“OnUsage ofAirSpace and
Aviation Activity oftheRepublic of
Kazakstan “of20December 1995:
Article 83:certificate onaerodrome
reliability andsafety; certificate on
stateregistrationWT/ACC/KAZ/3
Page133
Type ofServices Licensing Requirements Qualification Requirements
4.Space transport National AirSpace Agency
attached totheMinistry of
Sciences andNew
Technologies: alltypes
associated withtheuseof
cosmic space, including
creation, manufacture,
operation, repair and
modernization ofrocket and
cosmic equipment, utilization
ofsurface, infrastructure to
provide foritsfunctioning
(test-site, command and
control compound, test-base,
etc.)(sanitary andecological
expertise arerequired).Notstipulated byanylegislation
5.Railtransport
servicesMinistry ofTransport and
Communications :transport
ofpassengers andfreights by
railway (sanitary expertise is
required).Same asunder 1above
6.Road transport
servicesMinistry ofTransport and
Communications :transport
ofpassengers andfreights by
automobile (sanitary
expertise isrequired).Same asunder 1above
7)Pipeline transport Ministry oftheOilandGas
Industry :operation ofmain
oilandgaspipelines
(ecological andmining
expertise arerequired).Notstipulated byanylegislation
8.Services auxiliary
toallmodes of
transportNone Notstipulated byanylegislation
Thecommunication andtransportation sectors constituted approximately 8.0% ofGDPin1994
and9.5% in1995. Currently, there areatleast1020 state, private, andforeign entities operating in
thetransportation sector. About 9%ofthetotalworkforce isemployed inthetransport sector.
Passenger andfreight transports aredescribed inTable A7.3 andTable A7.4.WT/ACC/KAZ/3
Page134
Table A7.3 -Passenger Transport (Million ofPassengers perKm)
Passenger Transport 1994 1995
Internal Waterways 0.00615 0.0063
Air 4.647 4.404
Road 13.137 11.404
Rail 17.361 13.412
Table A7.4 -Freight Transport (Thousand ofTons perKm)
Freight Transport 1994 1995
Internal Waterways 818 796
Air 89 120
Road 3902 1892
Rail 147,247 123,863
1. Maritime transport
Kazakstan hasonlyoneseaport, theportofAktau, ontheCaspian sea.There are7seatransport
enterprises allbased inAktau. Maritime transportation includes passenger, cargo, andoil.Statistics
arenotavailable formaritime transport.
Services provided bythevarious companies attheAktau seaport include repair andmaintenance
ofvessels andtowing andpushing.
Itispossible inKazakstan tohirevessels withcrew.
2. Internal waterways transport
Theshare ofriver transportation isinsignificant. In1994, only0.8% ofcargo and0.03%
ofpassenger transportation washandled viainternal waterways transport.
Itispossible torentvessels withcrew. Repair andmaintenance services aswellaspushing
andtowing ofvarious types ofbarges areavailable atmostinternal waterways ports. Other related
services include sales oftickets; catering, insurance ofcargo, loading andunloading, packaging of
cargo, escort ofcargo, fuelling, andinformation about shipservices viatelephone recording.
3. Airtransport services
Thetotalnumber ofaircarriers operating inthetransportation sector is32(1stateaviation
company- “Kazakstan AirWays, ”19localprivate companies, and12foreign companies). Kazakstan
AirWays isastatecompany with29subsidiaries, 20ofthemareaircarriers withheadquarters atvarious
airports. Most ofthelocalprivate companies havealicense tooperate asaircarriers, butdonotown
aircraft. Mostofthesecompanies rentaircraft withcrew. Foreign companies include Aeroflot, AustrianWT/ACC/KAZ/3
Page135
Air,KLM, Lufthansa, PIA, Transaero, andTurkish Airlines. There areapproximately 30private
ticket salesagents inKazakstan.
There are21airports inKazakstan. Three ofthese airports areopenforinternational flights.
Thefourlargest airports areAkmola, Almaty, Atyrau, andKaraganda. Allairports arecurrently owned
byKazakstan AirWays. Significant modernization isneeded forallairports including facilities,
communications equipment, andairtraffic control andmanagement equipment. Inaddition, services,
including repair andmaintenance ofaircraft, ticket sales, catering, andfuelling, arecurrently provided
byKazakstan AirWays atallairports. Auxiliary airport services (commercial shops, currency exchange,
carrental) areprovided byprivate entities. Thegovernment plans torestructure Kazakstan AirWays
bydivesting airports tolocalauthorities andprivatizing related services.
TheDepartment ofAviation attheMinistry ofTransport andCommunication isresponsible
forissuing permission tointernational companies toflyintoKazakstan; licensing andcertifying aircraft
andpilots; andcollecting airtransport fees. Themain regulating document isthePresidential Edict,
which hastheForce ofLaw, "OnUseofAirSpace oftheRepublic ofKazakstan" signed on20
December 1995. Kazakstan isamember ofICAO (International Civil Aviation Organization).
Landing andtaking offfeesareestablished byKazakstan AirWays andapproved bythe
Anti-Monopoly Committee. Airroutes usage feesareestablished byKazAirNavigation, (anindependent
entity from Kazakstan AirWays) andapproved bytheAnti-Monopoly Committee.
4. Space transport
TheBaykonurSpaceCenter,locatedinZhezkazganOblast,isthelargestspacevehiclelaunching
siteintheformer Soviet Union. Currently, itisleased totheRussian Federation for20years. Last
year,therewereseveral launches bytheRussian Federation fromtheBaykonur Space Center, including
ajointonewiththeUnited States.
Kazakstan doesnotownanyspace transport vehicles.
5. Railtransport services
Railtransport isoneofthemaintypes oftransportation inKazakstan. There arethree major
railroads which areowned bythefollowing three statecompanies: Zapadno Kazakstan, Tselinnaya,
andAlma-atinskaya. Railroad tariffs areestablished bytheAnti-Monopoly Committee. Kazakstan
hasdirect railway linkswithallneighbouring countries. Thetotallength ofmajor railroads inKazakstan
is13,531 Km. Therailroad network requires significant modernization.
Currently, therolling-stock approximately consists of3,355 locomotives, 2,800 passenger-cars,
and110thousand cargo wagons. There arelocomotive means forpushing andtowing ofrailway trains
toconsumersbyspur-tracksatallrailwaystationsandjunctions.Alljunctionsandmajorrailwaystations
haverepair bases andspare equipment stocks fortechnical maintenance andrepair ofrolling-stock.
6. Road transport services
More than35%ofstate-owned trucks wereprivatized through small andmass privatization
programs. More thanahalfofthetotaltruck fleet(thetotalisapproximately 375thousand) iscurrently
owned byprivate individuals andcompanies.
Kazakstan isamember oftheInternational Union ofAutomobile. Kazakstan hasroadtransport
agreements setting bilateral quotas forTIRs exchange withallCIScountries, China, Turkey, Iran,WT/ACC/KAZ/3
Page136
Mongolia,Pakistan.BilateralagreementsarebeingplannedwithFinland,Afghanistan,Austria,Bulgaria,
theCzech Republic, France, Germany, Hungary, Poland, Romania, andSlovakia.
Thetotallength ofgeneral useroads inKazakstan is87,800 Km. Highways inKazakstan
needmajor repair andexpansion; especially inrural areas.
TheWorld Bank hasgranted anurban transport procurement loan(US$ 39Million) andplans
togrant ahighway procurement loanin1997 (approximately US$100Million)
Rental ofcommercial vehicles withorwithout operator isgradually increasing inKazakhstan.
Financial leasing services oftransport vehicles isbecoming available.
Technical maintenance andrepair oftransport vehicles isavailable throughout theRepublic
inallcities andregional centres. Repair andmaintenance ofroads andhighways ismostly conducted
bythesubsidiaries ofthestatecompany Kazakstan Zholdari.
7. Pipeline Transport
Themainregulating bodyistheMinistry ofOilandGasIndustry which licenses andsupervises
oilandgastransportation viapipelines anddevelops thestrategy offuture development forthefuel
sector. Themain lawgoverning theoilsector isEdict No.2350 ofPresident Which hastheForce
ofLaw“OnOil“dated 28June1995. TheAMC approves thetariff ratesforpipeline transportation.
Kazakstan has3,300 kmofoilpipelinesand2,100 kmofgaspipelines, currently owned by
thestate.
Crude oil
There arethree main pipelines forcrude oil:
- Mangistau -Atyrau -Russia
- Russia -Pavlodar -Shymkent
- Aktyubinsk -Russia
TheMangistau-Atyrau-Russian isthepipeline currently usedforexporting Kazakstan crude
oilviaRussia.
Petroleum products
There arethree main pipelines forpetroleum products:
- Russia -Kustanai
- Russia -Petropavlovsk -Kokshetau
- Russia -Uralsk
Natural gas
There arethree main natural gaspipelines:
- Uzbekistan -Mangistau -Kustanai -Russia
- Turkmenistan -Mangistau -Uralsk -Russia
- Uzbekistan -Shymkent -Kyrgyzstan -AlmatyWT/ACC/KAZ/3
Page137
8. Services auxiliary toallmodes oftransport
a. Cargo-handling services
Loading andunloading services foralltypes ofgoods areavailable forallmodes oftransport.
b. Storage andwarehouse services
Storage andwarehouses services areavailable atvarious, oratclose proximity, from main
transportation nodes. Most statewarehouses inKazakstan havebeenprivatized.
c. Freight transport agency services
There aremany companies specializing inallmodes offreight transport. There arecompanies
specialized inthetransportation ofcontainers withfixedtemperature regimes, bulktanks, largeoverall
load, andtechnical complex equipment (computers, measuring apparatus, copy machines, medical
equipment etc.). Some ofthese companies provide consulting services onissues related toexport and
import ofproducts, customs rules, services forpackaging andstorage ofgoods.
d.Other
Insurance ofcargo andmeans oftransport isnotmandatory. However, there arecompanies
providing alltypes ofinsurance risks(cf.Annex 7-Section VII.1).
Table A7.5 State Bodies which haveLicensing Roles
NTheAuthority Body Type ofActivities tobeLicensed
1TheMinistry ofDefense Development, manufacture, repair andmarketing of
weapons andmunitions thereto, military equipment,
spare parts, component elements andinstruments
thereto, provided theyarenotusedinanyother
sectors aswellasspecial purpose materials and
equipment relating totheirmanufacture; elaboration,
manufacture andmarketing ofexplosive and
pyrotechnic materials anditems involving those
manufacture andmarketing ofcombat, toxic
substances andmeans ofprotection therefrom.
2TheNational AirSpace Agency
attached totheMinistry of
Sciences andNewTechnologiesAlltypes associated withtheuseofcosmic space,
including creation, manufacture, operation, repair
andmodernization ofrocket andcosmic equipment,
utilization ofsurface, infrastructure toprovide forit
functioning (test-site, command andcontrols
compound, test-base, etc.)
Utilization oforbits ofgeostationary communication
satellitesWT/ACC/KAZ/3
Page138
NTheAuthority Body Type ofActivities tobeLicensed
3TheMinistry ofTransport and
CommunicationsUtilization ofradio frequency range; conveyance of
passengers andfreights byrailway, marine, river,
aviation andautomobile transport.
Airport activities relating toservices toaircraft,
passengers andfreights atairports.
Activities inthesphere ofpostal communications and
telecommunication except fortechnological andinside
business designation aswellascourier services,
operation ofnational main andinternational linesof
communications.
4Agency forAtomic Energy
attached totheMinistry of
Science andNewTechnologiesProduction, transport, processing andmarketing of
uranium andother fission materials aswellasitems
made thereof. Manufacture andmarketing of
production containing radioactive substances in
quantities which exceed thequota allowed fortheir
usewithout useofspecific means ofprotection.
Development manufacture ofmarketing ofroentgen,
instruments andequipment withtheuseofradioactive
substances andisotopes.
5TheMinistry ofEnergy andthe
CoalIndustryProduction, transmission anddistribution ofelectric
andthermal energy.
Manufacture, repair andoperation ofboilers, vessels
andpipelines which operate under pressure.
Manufacture andrepair ofexplosion protected
electric equipment.
6TheMinistry ofConstruction
andHousingDesigning andconstruction ofindustrial exposure and
fireandmining production :facilities, main pipe, gas
andoillines, lifted devices aswellasboilers, vessels
andpipelines operating under pressure.
Installation ofdrilling, oilandgasindustry,
geological prospecting, mining equipment, explosion
protected electrical equipment, equipment andcontrol
systems, accident prevention systems andalarms,
lifting devices aswellasboilers, vessels and
pipelines operating under pressure.
Construction andinstallation work associated with
gasification ofresidential andutility facilities.
Designing andconstruction ofitems ofalarm andfire
systems andfireprevention automated equipment.
Installation, repairs andservicing ofpassenger
elevators.
Designing andconstruction ofnational main and
international communication lines.
Designing research, expert andconstruction and
installation operations, operations associated with
production ofbuilding materials, items andmodules.WT/ACC/KAZ/3
Page139
NTheAuthority Body Type ofActivities tobeLicensed
7TheMinistry ofIndustry and
TradeOperation ofindustrial explosion andthefireriskand
mining production facilities aswell aslifting
installations, manufacture andrepairs ofchemical,
drilling, mining equipment, equipment andcontrol
system, anti-accident protection andalarm system,
lifting devices.
Performance ofmining survey work intheutilization
ofthesubsurface, processing, storage ofprecious
metals andprecious stones, manufacture ofjewellery
items.
Processing ofmineral rawmaterials.
8TheMinistry ofOilandGas
IndustryOperation ofmain oilandgaspipelines
Manufacture andrepairs ofoilandgasindustries
equipment.
Manufacture, operation andrepairs ofsystems of
gasification ofhousing andutility facilities
9TheMinistry ofGeology and
Protection oftheSubsurfaceManufacture andrepairs ofgeological prospecting
equipment.
10TheMinistry ofInternal Affairs Production, repairs andmarketing ofhunting and
sports firearms andmunitions thereto, aswellas
chemical means ofself-defense.
Adjustment andtechnical services tothesystem of
fireandsecurity alarm systems andfireprevention
automated equipment
Development ofindividual means ofself-defense.
Rendering tonon-government entities legalservices
relating todetective andsecurity activities.
11TheMinistry ofHealth
ProtectionDisinfection, deodorization ofproduction of
residential andcivilfacilities.
Manufacture andmarketing ofpharmaceuticals
(except forgrowing, collecting andselling of
pharmaceuticals ofanimal origin, plant andherds)
Engagement inmedical andmedicinal activities.
12TheState Technical Commission
forInformationAlltypes ofactivities associated withtechnical
protection ofstatesecrets oftheRepublic of
Kazakstan, including development, manufacture,
instalment, adjustment, repair andservices to
technical means ofinformation protection, protected
technical items fordataprocessing
13TheMain Department for
Geodesics andCartographyPerformance oftopographic andgeodesic and
cartographic andsurvey work andmarketing of
topographic, geodesic andcartographic products
14Committee forStandardization,
Metrology andCertificationManufacture, audit andrepairs, marketing and
leasing ofmeasurement instruments.
Manufacture ofalcohol products
Production ofmaterial andgraphic items which
epitomize thestatesymbols oftheRepublic of
Kazakstan asdefined intheConstitutionWT/ACC/KAZ/3
Page140
NTheAuthority Body Type ofActivities tobeLicensed
15TheCustoms Committee Activities associated withthecustoms regime (as
stipulated intheCustoms legislation)
Rendering ofcustoms services
16TheMinistry ofEducation Activities ofeducational establishments which
provide secondary, secondary vocational andhigher
education withtherights toissue diplomas inspecific
professions
17TheMinistry ofJustice Rendering oflegalservices
Forensic expert activities
18TheMinistry ofFinance Audit activities
19TheState Insurance Supervision
BodyInsurance activities
20TheNational Securities
CommissionProfessional activities inthesecurities market and
activities ofStock Exchanges
Manufacture andimport ofpaper forsecurities
21TheNational Bank Banking activities, activities ofclearing and
settlement organization, performance oftransactions
associated withforeign currency, which are
considered inaccordance withthelegislation as
currency transactions
Activities ofpawnshops
22TheMain Inspectorate ofAssay
Supervision attached tothe
National Bank oftheRepublic of
KazakstanTransactions involving affinated precious metals and
precious stones intheirphysical condition
Procurement andprocessing ofsecondary resources
andwastes which contain precious metals and
precious stones
23TheCommittee forNational
SecurityElaboration, performance, repairs andmarketing of
cryptographic devices forprotection ofinformation,
special technical devices forperformance ofspecial
operative andinvestigation efforts
24TheMinistry ofLabor Activities associated withattraction offoreign
manpower aswellasexport ofmanpower from the
Republic ofKazakstan
25TheState Inspectorate for
Supervision ofRational Useof
Ferrous andNon-Ferrous MetalsCollection (procurement), storage, processing and
marketing bylegalentities ofscrape andwaste of
ferrous andnon-ferrous metals
26TheMinistry ofAgriculture Veterinary activities
27Local executive body ofoblast
andAlmatyActivities ofpublic catering outlets
Organization andconduct oflotteries (except forstate
lottery), totalisers, casino
Maintenance andoperation ofpetrol refilling stationWT/ACC/KAZ/3
Page141
ANNEX 8
INTERNATIONAL AGREEMENTS
A. ListofForeign Trade Agreements
1. Trade agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment
ofCanada (Ottawa; 29March 1995)
2. Trade agreement between theGovernment ofSinjzian-Uigur autonomic district ofChina
People ’sRepublic andtheGovernment oftheRepublic ofKazakstan (Urumqi; 16July1991)
3. Agreement onprinciples oftrade-economic co-operation between theRepublic ofKazakstan
andtheRepublic ofChuvashia (Almaty; 1September 1994)
4. CIS-Interstate agreement onco-operation andmutual assistance tocustoms affairs (Moscow;
15April 1994)
5. CIS-Interstate agreement onre-export ofgoods andtheprocedure ofissuing permissions for
re-export (Moscow; 15April 1994)
6. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofCzech
Republic ontrade-economic relations andco-operation inthesphere ofscience andtechniques
(Almaty; 13September 1993)
7. Trade agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment
oftheArabic Republic ofEgypt (Cairo; 14February 1993)
8. Agreement between theEuropean Economic Community andtheRepublic ofKazakstan on
Trade andTextile Items (initialled 15October 1993)
9. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment of
Finland ontrade-economic co-operation (Almaty; 29September 1992)
10. Intergovernmental agreement between theGovernment oftheRepublic ofKazakstan andthe
Government ofFrance onindustrial andtrade co-operation (Almaty; 17October 1993)
11. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Republic ofGeorgia ontheprinciples ofrelations inthesphere ofcustoms matters (Almaty;
1June1993)
12. Agreement between theMinistry ofFinance oftheRepublic ofKazakstan andtheCustoms
Committee oftheRepublic ofGeorgia onco-operation andmutual support oncustoms matters
(Almaty; 1June1993)
13. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Republic ofHungary ontrade-economic connections (Budapest; 26June1992)
14. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
RepublicofHungaryonestablishingtheInter-GovernmentalKazakstan-HungarianCommission
ontrade-economic co-operation (Almaty; 9March 1995)WT/ACC/KAZ/3
Page142
15. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
RepublicofIndiaoncreationofanintergovernmentalcommissionontrade,economic,scientific
andtechnical co-operation (Almaty; 16October 1992)
16. Trade agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment
oftheRepublic ofKorea (Almaty; 3July1992)
17. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment of
Korean People ’sDemocratic Republic ontrade, economic co-operation (Almaty; 7May1991)
18. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Republic ofLatvia ontrade-economic co-operation (Almaty; 13October 1994)
19. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment of
Mongolia ontrade-economic co-operation (Ulan-Bator; 27October 1992)
20. Agreement ontrade, economic andfinancial co-operation between theGovernment ofKazakstan
andtheGovernment oftheSultanate ofOman (Muscat; 17June1992)
21. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Republic ofPoland ontrade-economic co-operation (Almaty; 14October 1992)
22. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment of
Romania ontrade-economic co-operation (Bucharest; 4December 1992)
23. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
RussianFederationonmutualestablishmentoftraderepresentativeoffices(Moscow;22October
1992)
24. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Russian Federation onco-operation andmutual support incustoms matters (Moscow;
28March 1994)
25. Agreement between theRepublic ofKazakstan andtheRussian Federation ontheunified
procedure ofmanaging thecustoms services (Moscow; 16May1995)
26. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment of
KingdomofSaudiArabiaonco-operationintrade-economic,investment,technicalandcultural
spheres, aswellasinthespheres ofsport andyouth matters (27September 1994)
27. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
SlovakRepublicontrade,economicandscientific-technicalco-operation(Almaty;18May1995)
28. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Kingdom ofSweden ontrade relations (Almaty; 23March 1994)
29. Trade agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment
oftheSyrian Arab Republic (Almaty; 27March 1992)WT/ACC/KAZ/3
Page143
30. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Republic ofTajikistan ontheprinciples oftrade-economic co-operation (Almaty;
30January 1995)
31. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment of
Turkey ontrade, economic andscientific-technical co-operation (Ankara; 26September 1991)
32. Agreement ontrade relations between theGovernment oftheRepublic ofKazakstan andthe
Government oftheUSA (Washington; 19May1992)
33. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Republic ofUzbekistan onregulating theissues oftrade-economic co-operation (Almaty;
24August 1994)
34. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Socialist Republic ofVietnam ontrade-economic co-operation (Almaty; 1February 1994)
Additional trade agreements arelisted under Bbelow.
B. Listoftrade agreements orparts ofthem which contain preferential trade provisions,
indicating byHS(2digit) thetariff lines involved, themargin ofpreference granted,
reciprocity provisions anddetails ofanypreferential treatment.1
1. Interstate Agreement ofCIScountries onthecreation ofaFreeTrade Area (Moscow;
15April 1994)
2. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Kyrgyz Republic onfreetrade (Bishkek; 22June1995)
Protocol onexceptions fromtheregime offreetradeintheAgreement between theGovernment
oftheRepublic ofKazakstan andtheGovernment oftheKyrgyz Republic onfreetrade of
June22,1995 (Bishkek; 22June1995)
3. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Republic ofLithuania onfreetrade (Vilnius; 21July1993)
Amendment totheAgreement between theGovernment oftheRepublic ofKazakstan andthe
Government oftheRepublic ofLithuania onfreetrade asof21July1993 (Vilnius;
9August 1994)
4. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Republic ofMoldova onfreetrade (Moscow; May26,1995)
Protocol onexceptions from thefreetrade regime totheagreement between Kazakstan and
Moldova (Moscow; 26May1995)
5. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Russian Federation onfreetrade (Moscow; 22October 1992)
1cf.section IV.1andIV.2WT/ACC/KAZ/3
Page144
6. Agreement oncreation ofUnified economic areabetween theRepublic ofKazakstan andthe
Republic ofUzbekistan (Tashkent; 10January 1994)
Protocol oncreation ofIntergovernmental Kazakstani-Uzbekistani commission ondeepening
ofeconomic integration (Tashkent; 10January 1994)
7. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment of
Ukraine onfreetrade (Almaty; 17September 1994)
8. Decision onjoining oftheKyrgyz Republic totheagreement oncreation ofUnified economic
area between theRepublic ofKazakstan andtheRepublic ofUzbekistan (Bishkek;
16January 1994)
9. Agreement onestablishing aCustoms Union between theRussian Federation ,Belarus and
theRepublic ofKazakstan (Moscow; 20January 1995)
Protocolonintroductionoffree-traderegimewithoutexceptionsandlimitsbetweentheRepublic
ofKazakstan andtheRussian Federation while joining thecustoms territories oftheRepublic
ofKazakstan andtheRussian Federation (Moscow; 20January 1995)
10. Agreement onfreetrade between theGovernment oftheRepublic ofKazakstan andthe
Government oftheRepublic ofTajikistan (22November 1995)
C. Listoflabor Market integration agreements
1. Protocol oninterrelations andco-operation inthesphere oflabor andsocial activities between
theMinistry ofLabor oftheRepublic ofKazakstan andtheMinistry ofLabor andsocial
activities oftheIslamic Republic ofIran(Teheran; 22February 1993)
2. Agreement between theRepublic ofKazakstan andMongolia onsettlement ofvoluntary
migration problems andcitizenship ofpeople come totheRepublic ofKazakstan under labor
agreements (Almaty; 2December 1994)
3. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment of
Mongolia onco-operation ontheissues ofhiring citizens ofMongolia andoftheRepublic
ofKazakstan under labor agreements (Almaty; 2December 1994)
4. Protocol onco-operation between theMinistry ofLabor oftheRepublic ofKazakstan andthe
Ministry oflabor andsocial protection oftheRepublic ofTurkey (Ankara; 1September 1993)
5. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Republic ofUzbekistan onco-operation inthesphere ofutilization oflabor resources and
migration ofwork force (Tashkent; 25May1994)
6. Mutual Memorandum oftheRepublic ofKazakstan, theRepublic ofKyrgyzstan ,andthe
Republic ofUzbekistan onco-operation inthesphere ofmigration (Almaty; 8July1994)
7. Agreement between CIScountries onco-operation inthesphere oflabor migration andsocial
protection oftheworkers-migrants (Moscow, 15April 1994)WT/ACC/KAZ/3
Page145
D. List ofbilateral, multilateral economic agreements, international conventions and
organizations
D.1 Bilateral economic agreements
1. Memorandum oneconomic co-operation between theGovernment oftheRepublic ofKazakstan
andtheGovernment ofAustria (Almaty; 26April 1993)
2. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Republic ofBelarus ontaxpolicy (Minsk; 16September 1992)
3. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Republic ofBulgaria ontrade-economic co-operation (Almaty; 30July1993)
4. Declaration oneconomic co-operation between theRepublic ofKazakstan andCanada (Almaty;
10July1992)
5. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofChina
People ’sRepublic onincentives andmutual protection ofinvestments (Peking; 10August 1992)
6. Agreement onprinciples oftrade-economic co-operation between theRepublic ofKazakstan
andtheRepublic ofChuvashia (Almaty; 1September 1994)
7. Agreement ontrade-economic co-operation between theRepublic ofKazakstan andCuba
(Almaty; 25December 1991)
8. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Czech andSlovak Federal Republic ontrade-economic relations andscientific-technical
co-operation (Moscow; 19June1992)
9. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofCzech
Republic ontrade-economic relations andco-operation inthesphere ofscience andtechniques
(Almaty; 13September 1993)
10. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Arabic Republic ofEgypt onencouragement andmutual protection ofinvestments (Cairo;
14February 1993)
11. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Arabic Republic ofEgypt oneconomic, scientific andtechnical co-operation (Cairo;
14February 1993)
12. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment of
Finland ontrade-economic co-operation (Almaty; 29September 1992)
13. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment of
Finlandonincentivesandmutualprotectionofcapitalinvestments(Almaty;29September1992)
14. Protocol oneconomic co-operation between theGovernment oftheRepublic ofKazakstan and
theGovernment ofFrance (Paris; 23September 1992)WT/ACC/KAZ/3
Page146
15. Intergovernmental agreement between theGovernment oftheRepublic ofKazakstan andthe
Government ofFrance onindustrial andtrade co-operation (Almaty; 17October 1993)
Joint Declaration oneconomic co-operation between theGovernment oftheRepublic of
Kazakstan andtheGovernment oftheUnited Kingdom ofGreat Britain andNorthern Ireland
(London; 21March 1994)
16. Convention between theGovernment oftheRepublic ofKazakstan andtheGovernment of
United Kingdom ofGreat Britain andNorthern Ireland onremoval ofdouble taxation
andstaving offevasion oftaxpayment forincome andrising ofthecostofproperty (London;
21March 1994)
17. Agreement between theRepublic ofKazakstan andtheFederal Republic ofGermany on
incentives andmutual protection ofcapital investments (Bonn; 22September 1992)
18. Agreement between theRepublic ofKazakstan andtheFederal Republic ofGermany on
development oflarge scale co-operation inthesphere ofeconomy, industry, science and
technology (22September 1992)
19. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Federal Republic ofGermany onfinancial co-operation (Almaty; 22May1995)
20. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Republic ofHungary ontrade-economic connections (Budapest; 26June1992)
21. Agreement between theRepublic ofKazakstan andtheRepublic ofHungary onencouragement
andmutual protection ofinvestments (Budapest; 7December 1994)
22. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
RepublicofHungaryonestablishingtheInter-GovernmentalKazakstan-HungarianCommission
ontrade-economic co-operation (Almaty; 9March 1995)
23. Protocol onco-operation between theMinistry ofIndustry andTrade oftheRepublic of
Kazakstan andtheMinistry ofIndustry andTrade oftheRepublic ofHungary (Almaty;
9March 1995)
24. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
RepublicofIndiaoncreationofanintergovernmentalcommissionontrade,economic,scientific
andtechnical co-operation (Almaty; 16October 1992)
25. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Republic ofIndonesia oneconomic andtechnical co-operation (Almaty; April 1995)
26. Declaration oneconomic cooperation between theGovernment oftheRepublic ofKazakstan
andtheGovernment ofItaly (Rome; 22September 1994)
27. Memorandum between theGovernment oftheRepublic ofKazakstan andtheGovernment of
theIslamic Republic ofIranontheprinciples ofcustoms relations (Almaty; 25October 1993)WT/ACC/KAZ/3
Page147
28. Convention between theGovernment oftheRepublic ofKazakstan andtheGovernment of
Italyonelimination ofdouble taxation regarding taxesonrevenues andprevention ofavoiding
topaytaxes (Rome; 22September 1994)
29. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofItaly
onincentives andmutual protection ofcapital investments (Rome; 22September 1994)
30. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofIsrael
oncreation ofjointeconomic commission (Tel-Aviv; 6-8September 1992)
31. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment of
Korean People ’sDemocratic Republic ontrade, economic co-operation (Almaty; 7May1991)
32. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Republic ofLatvia ontrade-economic co-operation (Almaty; 13October 1994)
33. Agreement oneconomic, scientific-technical andcultural co-operation between theRepublic
ofKazakstan andtheGreat Socialist People ’sLibyan Arabian Djumhuria (Almaty;
13March 1992)
34. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Republic ofLithuania onencouragement andmutual protection ofinvestments (Almaty;
15September 1994)
35. Agreement between theGovernment andtheNational Bank oftheRepublic ofKazakstan and
theGovernment andtheBankoftheRepublic ofLithuania onsettlements ofeconomic subjects
oftheRepublic ofKazakstan andtheRepublic ofLithuania (Almaty; 15September 1994)
36. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment of
Mongolia ontrade-economic co-operation (Ulan-Bator; 27October 1992)
37. Agreement between theNational Bank oftheRepublic ofKazakstan andMongolbank (Central
bankofMongolia)onsettlementprocedureandtheprocedureofbookkeepingontrade-economic
operations between theRepublic ofKazakstan andMongolia (Ulan-Bator; 27October 1992)
38. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment of
Mongolia oncreation andfunctions ofintergovernmental Kazakstan-Mongol commission on
trade-economic, scientific-technical andcultural co-operation (Almaty; 25March 1993)
39. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment of
Mongolia onencouragement andmutual protection ofinvestments (Almaty; 2December 1994)
40. Agreement ontrade, economic andfinancial co-operation between theGovernment ofKazakstan
andtheGovernment oftheSultanate ofOman (Muscat; 17June1992)
41. Convention between theGovernment oftheRepublic ofKazakstan andtheGovernment of
theIslamic Republic ofPakistan onelimination ofdouble taxation andprevention ofavoiding
topaytaxes onrevenues (Almaty; 23August 1995)
42. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Republic ofPoland ontrade-economic co-operation (Almaty; 14October 1992)WT/ACC/KAZ/3
Page148
43. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Republic ofPoland onencouragement andmutual protection ofinvestments (Almaty;
21September 1994)
44. Convention between theGovernment oftheRepublic ofKazakstan andtheGovernment of
theRepublic ofPoland onelimination ofdouble taxation andprevention ofavoiding topay
taxes onrevenues andcapital (Almaty; 21September 1994)
45. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Republic ofPoland ongranting ofcredit forpurchasing Polish goods (Almaty;
21September 1994)
46. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment of
Romania ontrade-economic co-operation (Bucharest; 4December 1992)
47. Agreementonfurtherextendingtheintegrationandeconomicco-operationbetweentheRepublic
ofKazakstan andtheRussian Federation (Moscow; 28March 1994)
48. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Russian Federation onthemainprinciples ofcreation ofKazakstan-Russian financial-industrial
groups (Moscow; 28March 1994)
49. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Russian Federation onco-operation inthesphere ofindustrial property protection (Moscow;
28March 1994)
50. AgreementbetweentheRepublicofKazakstanandtheRussianFederationonunifiedprocedure
ofregulation offoreign economic activity (Moscow; 20January 1995)
51. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Russian Federation onco-operation ofcontiguous oblasts (Omsk; 26January 1995)
52. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment of
KingdomofSaudiArabiaonco-operationintrade-economic,investment,technicalandcultural
spheres, aswellasinthespheres ofsport andyouth matters (27September 1994)
53. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
SlovakRepublicontrade,economicandscientific-technicalco-operation(Almaty;18May1995)
54. Agreement between theRepublic ofKazakstan andtheKingdom ofSpain onincentives and
mutual protection ofcapital investments (Madrid; 23March 1994)
55. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Kingdom ofSpain onco-operation inthesphere ofeconomy andindustry (Madrid;
23March 1994)
56. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Republic ofTajikistan ontheprinciples oftrade-economic co-operation (Almaty;
30January 1995)WT/ACC/KAZ/3
Page149
57. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Republic ofTunisia oneconomic, scientific-technical and cultural co-operation
(23November 1992)
58. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment of
Turkey ontrade, economic andscientific-technical co-operation (Ankara; 26September 1991)
59. Agreement between theRepublic ofKazakstan andtheTurkish Republic onmutual promotion
andprotection ofinvestments (Almaty; 1May1992)
60. Protocol oncreation ofanintergovernmental commission oneconomic co-operation between
theGovernment oftheRepublic ofKazakstan andtheGovernment oftheRepublic ofTurkey
(Ankara; 2September 1993)
61. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Republic ofTurkey onavoiding double taxation regarding taxes onrevenues (Almaty;
15August 1995)
62. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment of
Ukraine onencouragement andmutual protection ofinvestments (Almaty; 17September 1994)
63. Agreementonfurtherdevelopmentandextensionofeconomicco-operationbetweentheRepublic
ofKazakstan andUkraine (Almaty; 21September 1995)
64. Agreement between theRepublic ofKazakstan andtheUSAonincentives andmutual protection
ofcapital investments (Washington; 19May1992)
65. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
USA onstimulation ofcapital investments (Washington; 19May1992)
66. Convention between theGovernment oftheRepublic ofKazakstan andtheGovernment of
theUSA onavoiding double taxation andstaving offevasion from taxpayment onincome
andcapital (Almaty; 24October 1993)
67. Principles ofco-operation between theRepublic ofKazakstan, Corporation offoreign private
investments, andAmerican -Kazakstan Union oneconomic development (Washington;
14February 1994)
68. Memorandum onmutual understanding between theMinistry ofIndustry andTrade ofthe
Republic ofKazakstan andtheMinistry ofCommerce oftheUSA onco-operation inthe
development ofservices inthesphere ofbusiness dataandexchange ofmarket information
(Washington; 20March 1995).
69. Kazakstan-AmericanDeclarationontrade,investmentandeconomicco-operation(Washington;
27March 1995)
70. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Republic ofUzbekistan onregulating theissues oftrade-economic co-operation (Almaty;
24August 1994)WT/ACC/KAZ/3
Page150
71. Agreement between theGovernment oftheRepublic ofKazakstan andtheGovernment ofthe
Socialist Republic ofVietnam ontrade-economic co-operation (Almaty; 1February 1994)
D.2 Multilateral economic agreements
1. Agreement between theIslamic Republic ofIran,theRepublic ofKazakstan, theKyrgyz
Republic, theIslamic Republic ofPakistan ,Turkey ,Turkmenistan, andtheRepublic of
Uzbekistan oneconomic co-operation intheimplementation oftheprojects which areofmutual
interest (Ashqabad; 10May1992)
2. AgreementbetweenCISCountriesonagreedprinciplesoftaxpolicy(Moscow,13March1992)
3. Agreement between CIScountries onco-operation inthesphere ofcopyright andrelated right
protection (Moscow, 24September 1993)
4. Interstate Agreement ofCIScountries onco-operation inthesphere ofinvestment activities
(Ashqabad; 24December 1993)
5. CIS-Interstateagreementonconductingagreedpolicyinthefieldofstandardization,metrology,
andcertification (Moscow; 13March 1992)
6. Agreement onpartnership andco-operation between theEuropean Union andKazakstan
(24May1994)
7. Interstate agreement ofCIScountries onthecreation ofaneconomic union (Moscow;
24September 1993)
D.3 International Conventions
1. Convention onInternational Civil Aviation, of1944
2. Convention ontheContract forInternational Carriage ofGoods, of1956
3. ConventionontheRecognitionandEnforcementofForeignArbitrationJudgments(New-York),
of1958
4. European Convention onInternational Commercial Arbitration, of1961
5. International Convention ontheCarriage ofGoods, of1966
6. International Convention ontheResponsibility forDamage ofPetroleum Pollution, of1968
7. Convention ontheLawofInternational Treaties (Vienna), of1969
8. European Agreement concerning theWork ofCrews ofVehicles Dealing withInternational
Carriage, of1970
9. Customs Convention onInternational Carriage ofGoods withApplication ofIRPof1975
10. Agreement onInternational Carriage ofPerishable Food-Stuffs andontheVehicles, Intended
fortheCarriage, of1975WT/ACC/KAZ/3
Page151
11. Agreement onInternational Trade Marks (Madrid), of1967 and1979
12. Agreement onEstablishing theInter-State Eurasia Union ofCoalandSteel (CIS), of1993
13. Eurasia Convention ofPatent, of1994
14. Fundamentals oftheCustoms Legislation oftheStates -CISMembers, of1995
D.4 Multilateral economic orrelated organizations
1. Asian Development Bank
2. Bureau ofDemocratic Institutes andHuman Rights
3. Central Asian Bank ofDevelopment
4. Council ofSecurity andCo-operation inEurope
5. European Bank ofReconstruction andDevelopment
6. European Electric Charter
7. Eurasia Union ofCoalandSteel (CIS)
8. International Agency ofAtomic Energy
9. International Agency ofInvestment Guarantees
10. International Association ofDevelopment
11. International Bank ofReconstruction andDevelopment
12. International Civil Aviation Organization
13. International Epizootical Bureau
14. International Federation oftheRedCross andtheRedCrescent Societies
15. International Financial Corporation
16. International Labor Organization
17. International Maritime Organization
18. International Monetary Fund
19. International Organization onCertification
20. International Organization forStandardization
21. International Statistic InstituteWT/ACC/KAZ/3
Page152
22. International Union ofElectric Communication
23. Interparliamentary Assembly (CIS)
24. Interparliamentary Union
25. Joint Institution ofNuclear Research
26. Organization ofEconomic Co-operation andDevelopment
27. Universal Postal Union
28. United Nations Organization
29. United Nations Educational Scientific andCultural Organization
30. World Customs Organization
31. World Health Organization
32. World Intellectual Property Organization
33. World Tourism Organization
D.5 Accession inProgress
1. International Organization ofSocial Security
2. United Nations Industrial Development Organization
3. World Trade Organization
E. System ofpreferences
E.1 Listofdeveloping countries forwhich custom duties forimport ofgoods arehalfthebase
rate
Preferential ratesareequal halfofthebaserate. Copies ofthecustoms tariffs ofKazakstan
havebeentransmitted totheWTO Secretariat.
1. Albania
2. Algeria
3. Angola
4. Antigua andBarbuda
5. Anguilla
6. Argentina
7. Aruba
8. Bahamas Islands
9. Bahrain
10. Barbados
11. Belize
12. Bermuda Islands13. Bolivia
14. Bosnia andHerzegovina
15. Brazil
16. British Virgin Islands
17. Brunei Darussalam
18. Cayman Islands
19. Cameroon
20. Chile
21. China
22. Columbia
23. Congo
24. Cook IslandsWT/ACC/KAZ/3
Page153
25. Costa Rica
26. Croatia
27. Cuba
28. Cyprus
29. Dominican Republic
30. Dominica
31. Ecuador
32. Egypt
33. ElSalvador
34. Fiji
35. Gabon
36. Gambia
37. Ghana
38. Grenada
39. Guatemala
40. Guyana
41. Honduras
42. Hong-Kong
43. India
44. Indonesia
45. Iran
46. Iraq
47. Island ofSaint Helena
48. Ivory Coast
49. Jamaica
50. Jordan
51. Kenya
52. Korea, Democratic People 'sRepublic
53. Korea, Republic of
54. Kuwait
55. Lebanon
56. Libya
57. Macedonia,FormerYugoslavRepublic
58. Malaysia
59. Malta
60. Mauritius
61. Mexico
62. Micronesia
63. Mongolia
64. Montserrat65. Morocco
66. Namibia
67. Nauru
68. Netherlands Antilles
69. Nicaragua
70. Nigeria
71. NewCalendonia
72. Oman
73. Pacific Islands
74. Pakistan
75. Panama
76. Papua NewGuinea
77. Paraguay
78. Peru
79. Philippines
80. Qatar
81. Saint Lucia
82. Saint Vincent &Grenadines
83. Saint-Kitts &Nevis
84. Saudi Arabia
85. Senegal
86. Seychelles
87. Singapore
88. Slovenia
89. SriLanka
90. Surinam
91. Swaziland
92. Syria
93. Thailand
94. Tokelau
95. Tonga
96. Trinidad &Tobago
97. Tunisia
98. Turkey
99. Turks andCaicos Islands
100. United Arab Emirates
101. Uruguay
102. Venezuela
103. Vietnam
Goods produced inTaiwan areconsidered asproduced inChina andpayequal customs duty
asChinese goods imported toKazakstan.
E.2 Listoftheleastdeveloped countries, goods ofwhich arenotthesubject tocustoms import
duties ofKazakstan:
1. Afghanistan
2. Bangladesh
3. Benin
4. Bhutan
5. Botswana6. Burkina Faso
7. Burundi
8. Cape-Verde
9. Cambodia
10. Central African RepublicWT/ACC/KAZ/3
Page154
11. Chad
12. Comoros Islands
13. Djibouti
14. Equatorial Guinea
15. Ethiopia
16. Guinea
17. Guinea-Bissau
18. Haiti
19. Kiribati
20. Laos
21. Lesotho
22. Liberia
23. Madagascar24. Malawi
25. Maldives
26. Mali
27. Mauritania
28. Mozambique
29. Myanmar30. Nepal
31. Niger
32. Rwanda
33. Samoa
34. SaoTome andPrincipe
35. Sierra Leone
36. Solomon Islands
37. Somalia
38. Sudan
39. Tanzania
40. Togo
41. Tuvalu
42. Uganda
43. Vanuatu
44. Yemen
45. Zaire
46. Zambia
E.3 Listofimported goods which arenotthesubject ofpreferential regime intheRepublic
ofKazakstan
Thefollowingimportedgoodsarenotsubjecttothepreferentialtreatmentprovidedtodeveloping
countries andleastdeveloped countries described above inSection E.1andE.2respectively. Thebase
rateapplies forthese goods regardless ofcountry oforigin.
Code Description ofGoods
330300 Perfumes andtoilet waters.
3304 Beauty ormake-up preparations andpreparations forthecareoftheskin(other
thanmedicaments), including sunscreen orsuntanpreparations; manicure or
pedicure preparations.
3305 Preparations foruseonthehair.
3306 Preparations fororalordental hygiene, including denture fixative pastes and
powders.
3307 Pre-shave, shaving oraftershave preparations, personal deodorants, bath
preparations, depilatories andother perfumery, cosmetic ortoilet preparations,
notelsewhere specified orincluded; prepared room deodorants, whether ornot
perfumed orhaving disinfectant properties.
711620 Articles ofnatural orcultured pearls, precious orsemi-precious stones(natural,
synthetic orreconstructed).
-ofprecious orsemi-precious stones (natural, synthetic orreconstructed).
7117 Imitation jewellery
851710000 Electrical apparatus forlinetelephony orlinetelegraphy, including such
apparatus forcarrier-current linesystems.
8519 Turntables (record-decks, record players, cassette-players andother sound
reproducing apparatuses notincorporating asound-recording devices.
8520 Magnetic taperecorders andother sound recording apparatuses whether ornot
incorporating asound reproducing device.
8521 Video recording orreproducing apparatus.WT/ACC/KAZ/3
Page155
Code Description ofGoods
8525 Transmission apparatuses forradio-telephony, radio-broadcasting ortelevision,
whether ornotincorporating reception apparatus orsound recording or
reproducing apparatus; television cameras.
8527 Reception apparatus forradio-telephony, radio-telegraphy orradio-broadcasting
whether ornotcombined, inthesame housing, withsound recording or
reproducing apparatus oraclock.
8528 Television receives (including video monitors andvideo projectors), whether or
notcombined, inthesame housing, withradio broadcast receivers orsound or
video recording orreproducing apparatus.WT/ACC/KAZ/3
Page156
ANNEX 9
ANNEX ONEXPORT
Table A9.1 Listofgoods export whereof shallbecarried outunder licenses
Name ofGoods Code ofCommodity
NomenclatureTheMinistries and
Departments ofthe
Republic of
Kazakstan
coordinating decision
onlicense issuance
Pharmaceuticals, medical
equipment2936, 2939-2942, 3003-3005,
9018-9020 (except for
902000900)Ministry ofHealth
Protection
Pharmaceuticals forveterinary
purposes andveterinary
equipment2936-2942, 3001-3004, 3005,
3006, 9018-9022Ministry of
Agriculture
Ivory, horns, hoofs, antlers of
young Siberian stag,corals and
similar materials040700900, 0507, 050800000,
0604, 0510, 071230000,
080221000, 080222000, 0810,
0812, 121220000, 1301, 1302
(except for130219300), 9601Ministry of
Agriculture
Ministry ofEcology
andBio-Resources
Pharmaceutical rawmaterials of
vegetable andanimal origin020610100, 020622100,
0020629100, 020630100,
020641100, 020680100,
020690100 (only from wild
animals), 0507 (only
pharmaceutical rawmaterials),
051000000, 1211, 121220000,
1302 (except for130219300),
3001, 3002 (except forfinished
pharmaceutical)Ministry of
Agriculture
Ministry ofEcology
andBio-Resources
Narcotics andpsychotropic
agents, venomsAccording totheListDefined by
theGovernment oftheRepublic
ofKazakstanMinistry ofHealth
Protection
Ministry ofEcology
andBio-Resources
Information onthesubsurface by
region anddeposit offueland
energy andmineral raw
materials, located intheterritory
oftheRepublic ofKazakstan and
within theboundaries ofthe
continental shelfandmarine
economic zone. Collection
materials onmineralogy and
paleontology (970500000 -only
onmineralogy andpaleontologyExport shallbecarried outin
accordance withRegulation “On
theProcedure ofRealization
(Communication, Exchange,
Sale) ofInformation onthe
Republic ofKazakstan
Subsurface ”,approved bythe
resolution oftheCabinet
Ministers No1034 of8
December 1992 onthebasis of
licenses formineral resourcesMinistry ofGeology
State Technical
Commission ofthe
Republic ofKazakstan
ontheProtection of
InformationWT/ACC/KAZ/3
Page157
Name ofGoods Code ofCommodity
NomenclatureTheMinistries and
Departments ofthe
Republic of
Kazakstan
coordinating decision
onlicense issuance
utilization issued bythe
Government oftheRepublic of
Kazakstan andcontracts with
mineral resources users (without
formulation ofexport licenses in
theMinistry ofIndustry and
Trade)
Certain types ofrawmaterials,
materials, equipment,
technologies and
scientific-technical information,
which maybeusedincreation of
armaments andcombat
equipmentAccording totheListDefined by
theGovernment oftheRepublic
ofKazakstanMinistry ofScience,
State Technical
Commission ofthe
Republic ofKazakstan
ontheProtection of
Information
Materials, equipment and
technologies which havepeaceful
application butmaybeusedat
creation ofrocket, nuclear,
chemical andother types ofmass
destruction weaponsAccording totheListDefined by
theGovernment oftheRepublic
ofKazakstanMinistry ofScience,
State Technical
Commission ofthe
Republic ofKazakstan
ontheProtection of
Information
Enciphering devices (including
enciphering equipment, parts for
enciphering equipment and
software forenciphering),
instructive andtechnical
documentation relating to
enciphering devices (including
bothdesign andmaintenance)8471 (only enciphering
equipment), 847330000, (only to
enciphering equipment),
854390900 (only forenciphering
equipment)CNS, State Technical
Commission ofthe
Republic ofKazakstan
ontheProtection of
Information
Powder, explosive devises and
pyrotechnics360100000 (except forhunting
powder), 360200000, 360300,
3604Ministry ofInternal
Affairs
Precious natural stones anditems
made thereof, waste, powders
andrecovered precious natural
stones, pearls anditems made
thereof, amber anditems made
thereof253090000 (only amber), 7101.
7102, 7103 (only precious
stones), 7105 (only ofnatural
precious stones), 7116 (only of
pearls andnatural precious
stones), 820551000 (only glass
cutters withencrusted natural
diamonds), 820712100,
820720100, 820750100,
820760100, 820790100 (only the
tools withthecutting edgeofWT/ACC/KAZ/3
Page158
Name ofGoods Code ofCommodity
NomenclatureTheMinistries and
Departments ofthe
Republic of
Kazakstan
coordinating decision
onlicense issuance
crystals andovalised, crushed
natural diamonds), 852290300
(only ofnatural precious stones
anddiamonds), 960200000 (only
processed amber anditems made
thereof)
Precious metals, alloys, items
made thereof: metals, plated
precious metals anditems made
thereof: oresandconcentrated
oresofprecious metals, wastes
andscrap2616, 2843, 300640000 (only of
precious metals), 7106-7112,
711311000, 711319000,
711411000, 711510100,
711590100, 711590900, 7118
(only ofprecious metals), 8544
(only withconductors ofprecious
metals), 900319100, 902129100,
911110000 (only ofprecious
metals), 911310 (only ofprecious
metals), 960810300, 960839100
Semi precious stones anditems
made thereof710310000 (only semiprecious
stones), 710399000 (only semi
precious stones), 710510900,
711620190 (only ofsemi
precious stones)Ministry ofGeology
Service andcivilarmaments According totheListDefined by
theGovernment oftheRepublic
ofKazakstanMinistry ofInternal
Affairs
Devices forprotection from
combat poisonous substances,
components andaccessories
thereforAccording totheListDefined by
theGovernment oftheRepublic
ofKazakstanMinistry ofDefense
Instructive documentation
relating toproducts ofmilitary
designation (design and
operation)Ministry ofDefense,
State Technical
Commission ofthe
Republic ofKazakstan
ontheProtection of
Information
Raremetals, rare-earth metals,
rawmaterials formanufacture,
alloys, compounds anditems
made thereof2611, 2613-2615, 2804, 282530,
282619000, 284170, 2846,
8103, 8105, 8106, 8108, 8109,
8112, 8113, 280540100Ministry ofScienceWT/ACC/KAZ/3
Page159
Table A9.2 Listofgoods export whereof shallbecarried outwiththepermission ofthe
Government oftheRepublic ofKazakstan
Names ofgoods Code ofCommodity Nomenclature
Wild animals, wildplants 010119900, 010290900, 010391900,
010392900, 010410900, 010420900,
010600910, 010600990 (only wild
animals), 070951, 070952000,
071080600
Armaments andmilitary equipment, special
components fortheirmanufacture, works and
services inthesphere ofmilitary technology
collaboration871000000, 8802 (except for
880211100, 880212100, 880220100,
880230100, 880240100), 8803 (except
for880310100, 880320100, 880330100,
880390910), 880400000, (only the
military designation), 8805 (except for
880520100, 890600100, 930100000,
930200, 9305 (only tocombat arms),
9306 (except for930610000,
930629100, 930629200, 930629100,
930629200, 930629400, 930630910,
930630930, 901310000 (only the
military designation), 901320000 (only
themilitary designation), 901380000
(only themilitary designation), 9014
(only themilitary designation), 8525
(only themilitary designation), 8526
(only themilitary designation)
Nuclear materials, technologies, equipment and
installations, special non-nuclear materials, sources
ofradioactive radiation, including radioactive
waste2612, 2844, 2845, 380110000 (only
nuclear puregraphite), 8401
Table A9.3 Listofcommodity goods subject tocontract registration
Name ofgoods
1.Grain, agricultural products, products oftheir processing
a.Cereals:
Wheat (alltypes) 1001 1wagon
Rye 1002 1wagon
Barley 1003 1wagon
Oats 1004 1wagonWT/ACC/KAZ/3
Page160
Name ofgoods
Maize 1005 1wagon
Rice-grain, rice-groats 1006 1wagon
Sorghum 1007 1wagon
Buckwheat, millet andcanary seed 1008 1wagon
Soya beans, whether ornotbroken 1201 1wagon
Rape orcolza seeds, whether ornotbroken 1205 1wagon
Sunflower seeds, whether ornotbroken 1206 1wagon
b.Rawhides andskins andleather:
Rawhides andskins ofbovine orequine animals 4101 50p
Rawskins ofsheep orlambs 4102 500p
Other rawhides andskins including ofgoats or
kids4103 500p
Goatorkidskinleather 4106 4000 sq.dm
Leather ofother animals (including swine) 4107 1000 sq.dm
Chamois (including combination chamois) leather 4108 1000 sq.dm
Astrakhan 43013000 1000 sq.dm
Cotton 5201, 5203 5t
Cotton waste 5202 5t
Wool 5101 1t
Fineorcoarse animal hair 5102 20kg
Sunflower-seed, safflower orcotton-seed oiland
theirfractions butnotchemically modified1512 1t
c.Liveanimal:
Horses 0101 10heads
Bovine animals 0102 10heads
Swine 0103 50heads
Sheep andgoats 0104 50heads
Raw, tanned ordressed furskins andarticles of
furskin4301-4303 10skins
d.Groats: 1103-1105 20t
2.Production ofindustrial-technical purposes
Crude oil(including gascondensate) andproducts
ofitsprocessing2709, 271000330
271000350,
271000510,
271000690,
271000790WT/ACC/KAZ/3
Page161
Table A9.4 -Feeschedule forregistering contracts attheCommodity Exchanges
Amount Fee
Lessthanorequal toUS$1M 0.2% ofcontract value
Above US$1Mandlessthanor
equal toUS$5MUS$2,000 +0.1% (ofamount exceeding US$1mln.)
Above US$5Mandlessthanor
equal toUS$10MUS$6,000 +0.05% (ofamount exceeding US$5 mln.)
Above US$10M US$8,500 +0.02% (ofamount exceeding US$
10mln.)WT/ACC/KAZ/3
Page162
ANNEX 10
INTELLECTUAL PROPERTY
1. PART I-FeesandTaxes Charged Non-Kazak Citizens bytheNational Patent Office
Table A10.1 -FeesforSubmission ofPatent Applications
Type ofPatent Application FeeinUS$
Invention 100.00
Utility Models 90.00
Industrial Designs 70.00
Amendment toApplication forInvention,
Utility Model, orIndustrial Design20.00
Table A10.2 -FeesforSubmission ofTrademark Registrations
Type ofRegistration FeeinUS$
Trademark 70.00
Right toUseAppellation ofOrigin 70.00
“Collective Trademark ” 140.00
Table A10.3 -FeesforConducting Patent andTrademark Searches
Type ofSearch FeeinUS$
Search onInvention
Search onaSingle Invention 400.00
Search onMultiple Inventions 400.00 plus320.00 foreach
additional
invention
Where Results ofInternational Search Conducted in
Accordance with
Standards oftheRepublic ofKazakstan340.00
Search onIndustrial Designs
Single Variant 200.00
2-10Variants 300.00
10Variants orMore 400.00
Trademark Search
International Classification ofGoods
andServices (perclass)140.00
Each Additional Class 35.00
Search onAppellation ofOrigin 90.00WT/ACC/KAZ/3
Page163
Table A10.4 -Filing FeesforSubmitting Petitions toBoard ofAppeals oftheNational Patent
Office toReview Denials ofTrademark orPatent Applications
Type ofPetition toReview Filing FeesinUS$
Denial ofPreliminary Patent Application
Invention 120.00
Industrial Design 120.00
Denial ofPatent Application
Invention 400.00
Utility Model 150.00
Industrial Design 400.00
Trade Mark Registration 105.00
Registration ofAppellation ofOrigin 105.00
Table A10.5 -FeesforIssuing Preliminary Patents, Patents, andTrademarks
Intellectual Property Right Issued/Registered FeeinUS$
Preliminary Patent
Invention 200.00
Industrial Design 200.00
Re-registration ofRequest forPreliminary
Patent100.00
Patent
Invention 200.00
Industrial Design 200.00
Utility Model 300.00
Re-registration ofRequest forPatent 100.00
Registration andIssuance ofCertificate for
Trade Mark 70.00
Appellation ofOrigin 70.00WT/ACC/KAZ/3
Page164
Table A10.6 -Miscellaneous Fees
Request FeeinUS$
Petition toFileLateApplication 200.00
Petition toRe-Characterize Application
From Invention toUtility Model 50.00
From Utility Model toIndustrial Design 50.00
Extension ofTrade Mark Certification 140.00
ForEach Additional Class 70.00
ForAppellation ofOrigin 140.00
Amendments
ToTrade Mark Register andCertificate 70.00
Appellation ofOrigin 70.00
ForRegistering Agreement toTransfer
Rights toPreliminary Patent 250.00
Rights toPatent 250.00
Rights toTrade Mark 250.00
Rights Pursuant toLicensing Agreement 250.00
Amendments toLicensing Agreement 70.00
Submission ofApplication forIssuance ofOpen
License andPublication Thereof 70.00
Table A10.7 -Annual Duties toMaintain Validity ofPreliminary Patent orPatent
Number of
YearsPreliminary
Patent on
InventionPatent on
InventionPatent on
Utility
ModelPreliminary
Patent on
Industrial
DesignPatent on
Industrial
Design
1-2 100.00 - 70.00 70.00 -
3 100.00 100.00 70.00 70.00 70.00
4-5 150.00 150.00 210.00 105.00 105.00
6-7 - 200.00 210.00 - 120.00
8 - 300.00 210.00 - 130.00
9 - 300.00 - - 130.00
10 - 300.00 - - 150.00
11-12 - 400.00 - - 220.00
13-14 - 600.00 - - 220.00
15 - 600.00 - - 220.00
16-18 - 700.00 - - -
19-20 - 800.00 - - -WT/ACC/KAZ/3
Page165
2. PART II-FeesandTaxes Charged toCitizens oftheRepublic ofKazakstan bytheNational
Patent Office
Table A10.8 -FeesforSubmission ofPatent Applications
Type ofPatent Application FeeinUS$
Invention 1/2monthly evaluation index1
Utility Models 1/2monthly evaluation index
Industrial Designs 1/2monthly evaluation index
Amendment toApplication forInvention,
Utility Model, orIndustrial Design1/4monthly evaluation index
Table A10.9 -FeesforSubmission ofTrademark Registrations
Type ofRegistration FeeinUS$
Trademark 1/2monthly evaluation index
Right toUseAppellation ofOrigin 1/2monthly evaluation index
“Collective Trademark ” 1monthly evaluation index
Table A10.10 -FeesforConducting Patent andTrademark Searches
Type ofSearch FeeinUS$
Search onInvention
Search onaSingle Invention 2monthly evaluation index
Search onMultiple Inventions 2monthly evaluation index forsearch onfirst
invention and80%of2monthly evaluation
index foreachadditional invention
Where Results ofInternational Search
Conducted inAccordance with
Standards oftheRepublic of
Kazakstan85%of2monthly evaluation index
Search onIndustrial Designs
Single Variant 1monthly evaluation index
2-10Variants 1.33monthly evaluation index
10Variants orMore 1.75monthly evaluation index
Trademark Search
International Classification ofGoods
andServices (perclass)1monthly evaluation index
Each Additional Class 1/4monthly evaluation index
Search onAppellation ofOrigin 1monthly evaluation index
1Itisaninternal government index updated quarterly. Itcorresponds toTenge 460.WT/ACC/KAZ/3
Page166
Table A10.11 -Filing FeesforSubmitting Petitions toBoard ofAppeals oftheNational Patent
Office toReview Denials ofTrademark orPatent Applications
Type ofPetition toReview Filing FeesinUS$
Denial ofPatent Preliminary Patent
Application
Invention 1/2monthly evaluation index
Industrial Design 1/2monthly evaluation index
Denial ofPatent Application
Invention 1monthly evaluation index
Utility Model 1monthly evaluation index
Industrial Design 3/4monthly evaluation index
Trade Mark Registration 3/4monthly evaluation index
Registration ofAppellation ofOrigin 3/4monthly evaluation index
Table A10.12 -FeesforIssuing Preliminary Patents, Patents, andTrademarks
Intellectual Property Right Issued and
RegisteredFeeinUS$
Preliminary Patent
Invention 1/2monthly evaluation index
Industrial Design 1/2monthly evaluation index
Re-registration ofRequest forPreliminary
Patent1/2monthly evaluation index
Patent
Invention 1/2monthly evaluation index
Industrial Design 1/2monthly evaluation index
Utility Model 1/2monthly evaluation index
Re-registration ofRequest forPatent 1/2monthly evaluation index
Registration andIssuance ofCertificate for
Trade Mark 1/2monthly evaluation index
Appellation ofOrigin 1/2monthly evaluation indexWT/ACC/KAZ/3
Page167
Table A10.13 -Miscellaneous Fees
Request FeeinUS$
Petition toFileLateApplication 1monthly evaluation index
Petition toRe-Characterize Application
From Invention toUtility Model 1/4monthly evaluation index
From Utility Model toIndustrial
Design1/4monthly evaluation index
Extension ofTrade Mark Certification 1monthly evaluation index
ForEach Additional Class 1/2monthly evaluation index
ForAppellation ofOrigin 1/2monthly evaluation index
Amendments
ToTrade Mark Register and
Certificate
Appellation ofOrigin
ForRegistering Agreement toTransfer
Rights toPreliminary Patent
Rights toPatent
Rights toTrade Mark
Rights Pursuant toLicensing
Agreement
Amendments toLicensing Agreement
Submission ofApplication forIssuance of
Open License andPublication ThereofWT/ACC/KAZ/3
Page168
Table A10.14 -Annual Duties toMaintain Validity ofPreliminary Patent orPatent1
Year ofPatent
ValidityPreliminary
Patent for
InventionPatent for
InventionPatent for
Utility
ModelPreliminary
Patent for
Industrial
DesignPatent for
Industrial
Design
1-stand2-nd 1/2 -- 1/3 1/3 --
3-rd 1/2 1/2 1/3 1/3 1/3
4-thand5-th 3/4 3/4 1 1/2 1/2
6-thand7-th -- 1 1 -- 3/4
8-th -- 1.5 1 -- 1
9-th -- 1.5 -- -- 1
10-th -- 2 -- -- 1.5
11-th and
12-th-- 2 -- -- 2
13-th and
14-th-- 3 -- -- 2
15-th -- 3 -- -- 2
16-th -18-th -- 3.5 -- -- --
19-th and
20-th-- 4 -- -- --
3. PART III-Statistical Data
Table A10.15 -Statistical DataonIntellectual Property Applications TotheNational Patent
Office1
Type ofApplication Total Applications Total Granted Total
PendingTotal
Refused
Invention 8,483 2,000 6481 2
Utility Model 59 17 42 none
Industrial Design 137 94 20 23
Trade Mark 23,957 2,836 21121 none
Appellation of
Origin6 none 6 none
1Allamounts referenced inTable 7areexpressed interms ofmonthly wages.
1Allamounts referenced inTable A10.14 areexpressed interms ofmonthly wages.WT/ACC/KAZ/3
Page169
ANNEX 11
AGRICULTURAL SUBSIDIESWT/ACC/KAZ/3
Page170Supporting Table ES:1
EXPORT SUBSIDIES: KAZAKSTAN
REPORTING PERIOD: calendar years 1994 -1996
Export Subsidies: Outlay andQuantity
Description
ofbasic
productsDirect export
subsidiesSales of
StockProducer
financed
subsidiesCostreduction
measuresInternal
transport
subsidiesTotal product
specific export
subsidiesQuantity of
subsidiesData sources
1 2 3 4 5 6 7 8 9
Such subsidies arenotappliedWT/ACC/KAZ/3
Page171Supporting Table DS:1
DOMESTIC SUPPORT: KAZAKSTAN
REPORTING PERIOD: 1994 calendar year
Measures exempt from thereduction commitment -“Green Box”.
Measure name Measure
typeName anddescription ofmeasure with
reference tocriteria inAnnex 2ofthe
Agreement onAgricultureMonetary value
ofmeasures,
Thousand
TengeData sources
1 2 3 4 5
2.a. Research, including general research, research in
connection withenvironmental programs, and
research programs relating toparticular products“General
services ”Infrastructure services, advisory and
consulting services, technology services,
forecasting inthefieldofplantation 38,561Documents ofBudget,
Ministry ofAgriculture
b. Pestanddisease control, including general and
product-specific pestanddisease control
measures, suchasearly-warning systems,
quarantine anderadication“General
services ”Veterinary andplants protection measures
226,217Documents ofBudget,
Ministry ofAgriculture
d. Extension andadvisory services, including the
provision ofmeans tofacilitate thetransfer of
information andtheresults ofresearch to
producers andconsumers“General
services ”Hydrogeological melioration measures and
machinery testing services 59,336Documents ofBudget,
Ministry ofAgriculture
e. Inspection services, including general inspection
services andtheinspection ofparticular products
forhealth, safety, grading orstandardization
purposes“General
services ”Development ofinfrastructure Republic State
seeds inspection andState agricultural
machinery supervision (Gosseltechnadzor) 32,217Documents ofBudget,
Ministry ofAgriculture
f. Marketing andpromotion services, including
market information, advice andpromotion
relating toparticular products butexcluding
expenditure forunspecified purposes thatcould
beusedbysellers toreduce theirselling price or
confer adirect economic benefit topurchasers“General
services ”Development ofinfrastructure of:
1.State foodcontractual corporation
2.Publishing house
3.Agro-industrial complex6,621
13,322
1,394,000Documents ofBudget,
Ministry ofAgriculture
3. Public stockholding forfoodsecurity purposes “General
services ”State procurement ofgrain 5,386,486 Documents ofBudget,
Ministry ofAgriculture
TOTAL: Thousand Tenge
Thousand US$7,156,760
200,133WT/ACC/KAZ/3
Page172Supporting Table DS:1
DOMESTIC SUPPORT: KAZAKSTAN
REPORTING PERIOD: 1995 calendar year
Measures exempt from thereduction commitment -“Green Box”
Measure name Measure
typeName anddescription ofmeasure with
reference tocriteria inAnnex 2ofthe
Agreement onAgricultureMonetary value
ofmeasures,
Thousand TengeData sources
1 2 3 4 5
2.a. Research, including general research, research in
connection withenvironmental programs, and
research programs relating toparticular products“General
services ”Infrastructure services, advisory and
consulting services, technology services,
forecasting inthefieldofplantation19,777Documents ofBudget,
Ministry ofAgriculture
b. Pestanddisease control, including general and
product-specific pestanddisease control
measures, suchasearly-warning systems,
quarantine anderadication“General
services ”Veterinary andplants protection measures 1,126,442 Documents ofBudget,
Ministry ofAgriculture
d. Extension andadvisory services, including the
provision ofmeans tofacilitate thetransfer of
information andtheresults ofresearch to
producers andconsumers“General
services ”Hydrogeological melioration measures and
machinery testing services143,421 Documents ofBudget,
Ministry ofAgriculture
e. Inspection services, including general inspection
services andtheinspection ofparticular products
forhealth, safety, grading orstandardization
purposes“General
services ”Development ofinfrastructure Republic State
seeds inspection andState agricultural
machinery supervision (Gosseltechnadzor)100,441 Documents ofBudget,
Ministry ofAgriculture
f. Marketing andpromotion services, including
market information, advice andpromotion
relating toparticular products butexcluding
expenditure forunspecified purposes thatcould
beusedbysellers toreduce theirselling price or
confer adirect economic benefit topurchasers“General
services ”Development ofinfrastructure of:
1.State foodcontractual corporation
2.Publishing house
3.Agro-industrial complex100
16
5,894,116Documents ofBudget,
Ministry ofAgriculture
3. Public stockholding forfoodsecurity purposes “General
services ”State procurement ofgrain 2,606,646 Documents ofBudget,
Ministry ofAgriculture
TOTAL: Thousand Tenge
Thousand US$9,890,959
162,333WT/ACC/KAZ/3
Page173Supporting Table DS:1
DOMESTIC SUPPORT: KAZAKSTAN
REPORTING PERIOD: 1996 calendar year
Measures exempt from thereduction commitment -“Green Box”
Measure name Measure
typeName anddescription ofmeasure with
reference tocriteria inAnnex 2ofthe
Agreement onAgricultureMonetary value of
measures,
Thousand TengeData sources
1 2 3 4 5
2.a.Research, including general research, research in
connection withenvironmental programs, andresearch
programs relating toparticular products“General
services ”Infrastructure services, advisory and
consulting services, technology services,
forecasting inthefieldofplantation111,262 Documents ofBudget,
Ministry ofAgriculture
b.Pestanddisease control, including general and
product-specific pestanddisease control measures, such
asearly-warning systems, quarantine anderadication“General
services ”Veterinary andplants protection measures 1,880,791 Documents ofBudget,
Ministry ofAgriculture
d.Extension andadvisory services, including the
provision ofmeans tofacilitate thetransfer of
information andtheresults ofresearch toproducers and
consumers“General
services ”Hydrogeological melioration measures and
machinery testing services195,020 Documents ofBudget,
Ministry ofAgriculture
e.Inspection services, including general inspection
services andtheinspection ofparticular products for
health, safety, grading orstandardization purposes“General
services ”Development ofinfrastructure Republic State
seeds inspection andState agricultural
machinery supervision (Gosseltechnadzor)198,002 Documents ofBudget,
Ministry ofAgriculture
f.Marketing andpromotion services, including market
information, advice andpromotion relating toparticular
products butexcluding expenditure forunspecified
purposes thatcould beusedbysellers toreduce their
selling price orconfer adirect economic benefit to
purchasers“General
services ”Development ofinfrastructure of:
1.Agro-industrial complex 627,836 Documents ofBudget,
Ministry ofAgriculture
3.Public stockholding forfoodsecurity purposes “General
services ”State procurement ofgrain 6,000,000 Documents ofBudget,
Ministry ofAgriculture
TOTAL: Thousand Tenge
Thousand US$9,012,911
138,660WT/ACC/KAZ/3
Page174Supporting Table DS:2
DOMESTIC SUPPORT: KAZAKSTAN
REPORTING PERIOD: calendar year1994
Measures exempt from thereduction commitment -Special andDifferent Treatment -“Development Programs ”(thousand US$)
Measure type Name anddescription ofmeasure withreference
tocriteria inAnnex 2
oftheAgreement onAgricultureMonetary value of
measure inyearin
questionData sources
1 2 3 4
(a) “Investment subsidies generally available to
agriculture ”1.Preferential credit toagriculture 129,959 NBK, ExImbank
2.State loanguarantees 93,301 Ministry ofFinance
TOTAL: Thousand US$ 223,260WT/ACC/KAZ/3
Page175Supporting Table DS:2
DOMESTIC SUPPORT: KAZAKSTAN
REPORTING PERIOD: calendar year1995
Measures exempt from thereduction commitment -Special andDifferent Treatment -“Development Programs ”(thousand US$)
Measure type Name anddescription ofmeasure withreference to
criteria inAnnex 2
oftheAgreement onAgricultureMonetary value of
measure inyearin
questionData sources
1 2 3 4
(a) “Investment subsidies generally available to
agriculture ”1.Preferential credit toagriculture 1,068 ExIm Bank of
Kazakstan
2.State loanguarantees 133,067 Ministry ofFinance
TOTAL: Thousand US$ 134,135WT/ACC/KAZ/3
Page176Supporting Table DS:2
DOMESTIC SUPPORT: KAZAKSTAN
REPORTING PERIOD: calendar year1996
Measures exempt from thereduction commitment -Special andDifferent Treatment -“Development Programs ”(thousand US$)
Measure type Name anddescription ofmeasure withreference to
criteria inAnnex 2
oftheAgreement onAgricultureMonetary value of
measure inyearin
questionData sources
1 2 3 4
(a) “Investment subsidies generally available to
agriculture ”1.Preferential credit toagriculture 39,894 National Bank of
Kazakstan (NBK),
ExIm Bank of
Kazakstan
2.State loanguarantees 0 Ministry ofFinance
3.Provision ofAgricultural Machinery ontheleasing
basis9,000 Documents of
Budget, Ministry of
Agriculture
TOTAL: Thousand US$ 48,894
(b) Input subsidies generally available to
low-income orresource-poor producers1.Subsidies through theFund ofsupport ofSmall and
Medium Business50,000 Documents of
Budget, Ministry of
Agriculture
TOTAL: Thousand US$ 98,894WT/ACC/KAZ/3
Page177Supporting Table DS:3
DOMESTIC SUPPORT: KAZAKSTAN
REPORTING PERIOD: calendar years 1994 -1996
Measures exempt from thereduction commitment -Direct Payments under Production-Limiting Programs- ”Exempt Direct Payments ”
Measure type Name anddescription ofmeasure withreference to
criteria inAnnex 2
oftheAgreement onAgricultureMonetary value of
measure inyearin
questionData sources
1 2 3 4
(a) “payments based onfixed areaandyields ”
(b) “payments based on85percentorlessofthebaselevelofproduction ”
(c) “livestock payments made onafixed number ofhead”
Such subsidies arenotappliedWT/ACC/KAZ/3
Page178Supporting Table DS:4
DOMESTIC SUPPORT: KAZAKSTAN
REPORTING PERIOD: calendar year1994
Calculation oftheTotal Aggregate Measurement ofSupport
Description ofbasic products
(including non-product specific
AMS)Product-specific AMS (from Supporting Tables
DS:5 toDS:7 below), Thousand TengeProduct-specific measurement of
support (from Supporting Tables
DS:8 below)Current Total AMS
(aggregate),
Thousand Tenge
1 2 3 4
Such subsidies arenotappliedWT/ACC/KAZ/3
Page179Supporting Table DS:4
DOMESTIC SUPPORT: KAZAKSTAN
REPORTING PERIOD: calendar year1995
Calculation oftheTotal Aggregate Measurement ofSupport
Description ofbasic products
(including non-product specific AMS)Product-specific AMS (from Supporting Tables
DS:5 toDS:7 below), Thousand TengeProduct-specific measurement of
support (from Supporting Tables
DS:8 below)Current Total AMS
(aggregate),
Thousand Tenge
1 2 3 4
Basic products
1.Seeds ofsugar beet 83,800 ---- 83,800
2.Vegetables andpotatoes 114,000 ---- 114,000
3.Maize 76,200 ---- 76,200
4.Plants protection 30,000 ---- 30,000
5.Fertilizers 77,600 ---- 77,600
6.Cattle 1326,240 ---- 1326,240
7.Liveanimals 60,920 ---- 60,920
8.Fruits 40,000 ---- 40,000
9.Fuel 1,605,837 ---- 1,605,837
TOTAL: Thousand Tenge 3,414,597
Thousand US$ 56,041
Non-product specific AMS
1.Reschedule ofarrears, Thousand
US$525,193 ---- 525,193
2.Forgiven debt,Thousand US$ 468 ---- 468
Total Non-product-specific AMS
(from Supporting Table DS:9 below),
Thousand US$ 525,661
TOTAL: Current totalAMS (Thousand US$) 581,702WT/ACC/KAZ/3
Page180Supporting Table DS:4
DOMESTIC SUPPORT: KAZAKSTAN
REPORTING PERIOD: calendar year1996 (actual asof27.05.96)
Calculation oftheTotal Aggregate Measurement ofSupport
Description ofbasic products
(including non-product specific
AMS)Product-specific AMS (from Supporting Tables
DS:5 toDS:7 below), Thousand TengeProduct-specific measurement ofsupport
(from Supporting Tables DS:8 below)Current Total AMS
(aggregate),
Thousand Tenge
1 2 3 4
Basic products
1.Seeds ofsugar beet 130,000 ---- 130,000
2.Vegetables andpotatoes 16,500
35,500---- 16,500
35,500
3.Maize 241,100 ---- 241,100
4.Plants protection 287,400 ---- 287,400
5.Fertilizers 20,500 ---- 20,500
6.Cattle 2,500 ---- 2,500
7.Liveanimals 309,000 ---- 309,000
8.Fruits 15,000 ---- 15,000
9.Fuel 82,500 ---- 82,500
TOTAL: Thousand Tenge 1,140,000
Thousand US$ 17,538
Non-product specific AMS
1.Reschedule ofarrears, Thousand
US$----
Total Non-product-specific AMS
(from Supporting Table DS:9 below),
Thousand US$ 35,938
TOTAL: Current totalAMS
(Thousand US$)53,476WT/ACC/KAZ/3
Page181Supporting Table DS:5
DOMESTIC SUPPORT: KAZAKSTAN
REPORTING PERIOD: calendar years 1994 -1996
Product Specific Aggregate Measure ofSupport: Market Price Support
Description of
basic
productsCalendar/marketing
yearbeginningMeasure
typeApplied
administered
priceExternal reference
priceEligible
productionAssociated
fees/leviesTotal market
price supportData
sources
1 2 3 4 5 6 7 8 9
Such subsidies arenotappliedWT/ACC/KAZ/3
Page182Supporting Table DS:6
DOMESTIC SUPPORT: KAZAKSTAN
REPORTING PERIOD: calendar year1994
Product-Specific Aggregate Measurements ofSupport: Non-Exempt Direct Payment
Description ofbasic
productsCalendar/marketing
yearbeginningMeasure type(s) Total direct payments,
Thousand TengeData source
1 2 3 4 5
Such subsidies arenotappliedWT/ACC/KAZ/3
Page183Supporting Table DS:6
DOMESTIC SUPPORT: KAZAKSTAN
REPORTING PERIOD: calendar year1995
Product-Specific Aggregate Measurements ofSupport: Non-Exempt Direct Payment
Description ofbasic
productsCalendar/marketing
yearbeginningMeasure type(s) Total direct payments,
Thousand TengeData source
1 2 3 4 5
1.Seeds ofsugar beet 01.01.95 Support ofagricultural producers indevelopment of
plantation andusage ofmodern technologies83,800 Ministry of
Agriculture
2.Vegetables and
potatoes01.01.95 Support ofagricultural producers indevelopment of
plantation andusage ofmodern technologies114,000 Ministry of
Agriculture
3.Maize 01.01.95 Support ofagricultural producers indevelopment of
plantation andusage ofmodern technologies76,200 Ministry of
Agriculture
4.Plants protection 01.01.95 Support ofagricultural producers indevelopment of
plantation andusage ofmodern technologies30,000 Ministry of
Agriculture
5.Fertilizers 01.01.95 Support ofagricultural producers indevelopment of
plantation andusage ofmodern technologies77,600 Ministry of
Agriculture
6.Cattle 01.01.95 Financial support toAgro-producers indevelopment of
cattle reproduction
pedigree breeding,
support ofsheep-breeding farms,
improve sanitary conditions ofanimals247,040
55,000
901,200
123,000Ministry of
Agriculture
7.Liveanimals 01.01.95 development offarms 60,920 Ministry of
Agriculture
8.Fruits 01.01.95 development ofgardening 40,000 Ministry of
Agriculture
9.Fuel 01.01.95 clearing forfuel-lubricant naturals 1,605,837 Ministry of
Agriculture
TOTAL: Thousand Tenge 3,414,597
Thousand US$ 56,041WT/ACC/KAZ/3
Page184Supporting Table DS:6
DOMESTIC SUPPORT: KAZAKSTAN
REPORTING PERIOD: calendar year1996 (actual asof27.05.96)
Product-Specific Aggregate Measurements ofSupport: Non-Exempt Direct Payment
Description ofbasic
productsCalendar/marketing
yearbeginningMeasure type(s) Total direct payments,
Thousand TengeData source
1 2 3 4 5
1.Seeds ofgrain crops 01.01.96 Support ofagricultural producers indevelopment of
plantation andusage ofmodern technologies130,000 Ministry of
Agriculture
2.Vegetables and
potatoes01.01.96 Support ofagricultural producers indevelopment of
plantation andusage ofmodern technologies16,500
35,500Ministry of
Agriculture
3.Fertilizers 01.01.96 Support ofagricultural producers indevelopment of
plantation andusage ofmodern technologies241,100 Ministry of
Agriculture
4.Plants protection 01.01.96 Support ofagricultural producers indevelopment of
plantation andusage ofmodern technologies287,400 Ministry of
Agriculture
5.Maize 01.01.96 Support ofagricultural producers indevelopment of
plantation andusage ofmodern technologies20,500 Ministry of
Agriculture
6.Sugar beets 01.01.96 Support ofagricultural producers indevelopment of
plantation andusage ofmodern technologies2,500 Ministry of
Agriculture
7.Liveanimals 01.01.96 Support ofagricultural producers indevelopment of
cattle reproduction, andsupport ofsheep breeding 309,000Ministry of
Agriculture
8.Poultry 01.01.96 Development ofpoultry 15,000 Ministry of
Agriculture
9.Other 01.01.96 Development offarms 82,500 Ministry of
Agriculture
TOTAL: Thousand Tenge 3,414,597
56,041
Thousand US$WT/ACC/KAZ/3
Page185Supporting Table DS:7
DOMESTIC SUPPORT: KAZAKSTAN
REPORTING PERIOD: calendar year1994
Product-Specific Aggregate Measurements ofSupport: Other Product-Specific Support andTotal Product-Specific Support
Description ofbasic
productsCalendar/marketing
yearbeginningMeasure type(s) Total AMS,
Thousand TengeData source
1 2 3 4 5
Such subsidies arenotappliedWT/ACC/KAZ/3
Page186Supporting Table DS:7
DOMESTIC SUPPORT: KAZAKSTAN
REPORTING PERIOD: calendar year1995
Product-Specific Aggregate Measurements ofSupport: Other Product-Specific Support andTotal Product-Specific Support
Description ofbasic
productsCalendar/marketing
yearbeginningMeasure type(s) Total AMS,
Thousand TengeData source
1 2 3 4 5
1.Seeds ofsugar beet 01.01.95 Support ofagricultural producers indevelopment of
plantation andusage ofmodern technologies83,800 Ministry of
Agriculture
2.Vegetables and
potatoes01.01.95 Support ofagricultural producers indevelopment of
plantation andusage ofmodern technologies114,000 Ministry of
Agriculture
3.Maize 01.01.95 Support ofagricultural producers indevelopment of
plantation andusage ofmodern technologies76,200 Ministry of
Agriculture
4.Plants protection 01.01.95 Support ofagricultural producers indevelopment of
plantation andusage ofmodern technologies30,000 Ministry of
Agriculture
5.Fertilizers 01.01.95 Support ofagricultural producers indevelopment of
plantation andusage ofmodern technologies77,600 Ministry of
Agriculture
6.Cattle 01.01.95 Financial support toAgro-producers indevelopment of
cattle reproduction
pedigree breeding,
support ofsheep-breeding farms,
improve sanitary conditions ofanimals247,040
55,000
901,200
123,000Ministry of
Agriculture
7.Liveanimals 01.01.95 development offarms 60,920 Ministry of
Agriculture
8.Fruits 01.01.95 development ofgardening 40,000 Ministry of
Agriculture
9.Fuel 01.01.95 clearing forfuel-lubricant naturals 1,605,837 Ministry of
Agriculture
TOTAL: Thousand Tenge 3,414,597
Thousand US$ 56,041WT/ACC/KAZ/3
Page187Supporting Table DS:7
DOMESTIC SUPPORT: KAZAKSTAN
REPORTING PERIOD: calendar year1996 (actual asof27.05.96)
Product-Specific Aggregate Measurements ofSupport: Other Product-Specific Support andTotal Product-Specific Support
Description ofbasic
productsCalendar/marketing
yearbeginningMeasure type(s) Total AMS,
Thousand TengeData source
1 2 3 4 5
1.Seeds ofgrain crops 01.01.96 Support ofagricultural producers indevelopment of
plantation andusage ofmodern technologies130,000 Ministry of
Agriculture
2.Vegetables and
potatoes01.01.96 Support ofagricultural producers indevelopment of
plantation andusage ofmodern technologies16,500
35,500Ministry of
Agriculture
3.Fertilizers 01.01.96 Support ofagricultural producers indevelopment of
plantation andusage ofmodern technologies241,100 Ministry of
Agriculture
4.Plants protection 01.01.96 Support ofagricultural producers indevelopment of
plantation andusage ofmodern technologies287,400 Ministry of
Agriculture
5.Maize 01.01.96 Support ofagricultural producers indevelopment of
plantation andusage ofmodern technologies20,500 Ministry of
Agriculture
6.Sugar beets 01.01.96 Support ofagricultural producers indevelopment of
plantation andusage ofmodern technologies2,500 Ministry of
Agriculture
7.Liveanimals 01.01.96 Support ofagricultural producers indevelopment of
cattle reproduction, andsupport ofsheep breeding 309,000Ministry of
Agriculture
8.Poultry 01.01.96 Development ofpoultry 15,000 Ministry of
Agriculture
9.Other 01.01.96 Development offarms 82,500 Ministry of
Agriculture
TOTAL: Thousand Tenge 1,140,000
Thousand US$ 17,538WT/ACC/KAZ/3
Page188Supporting Table DS:8
DOMESTIC SUPPORT: KAZAKSTAN
REPORTING PERIOD: calendar years 1994 -1996
Product Specific Equivalent Measurements ofSupport
Description
ofbasic
productsCalendar/
marketing
year
beginningMeasure
typeApplied
administered
priceProduction
eligible to
receive the
applied
administrat
edpriceMarket
price
support
budgetary
outlaysEquivalent
measurement
ofsupport
(include
calculation
details)Non-exem
ptdirect
paymentsOther
product-
specific
supportAssociated
fees/leviesTotal
monetary
value of
equivalent
commitmentData
sources
1 2 3 4 5 6 7 8 9 10 11 12
Such subsidies arenotappliedWT/ACC/KAZ/3
Page189Supporting Table DS:9
DOMESTIC SUPPORT: KAZAKSTAN
REPORTING PERIOD: calendar year1994
Non-Product-Specific Aggregate Measurements ofSupport
Measure type(s) Calendar/marketing
yearbeginningNon-product-speci
ficbudgetary
outlaysOther
non-product-specific
support (include
calculation details)Associated
fees/leviesTotal non-product
specific support,
Thousand US$Data source
1 2 3 4 5 6 7
Such subsidies arenotappliedWT/ACC/KAZ/3
Page190Supporting Table DS:9
DOMESTIC SUPPORT: KAZAKSTAN
REPORTING PERIOD: calendar year1995
Non-Product-Specific Aggregate Measurements ofSupport
Measure type(s) Calendar/marketing
yearbeginningNon-product-speci
ficbudgetary
outlaysOther
non-product-specific
support (include
calculation details)Associated
fees/leviesTotal non-product
specific support,
Thousand US$Data source
1 2 3 4 5 6 7
1.Reschedule ofarrears 01.01.95 525,193 -- -- 525,193 Ministry of
Finance
2.Forgiven debt 01.01.95 468 -- -- 468 Ministry of
Finance
TOTAL: Thousand US$ -- 525,661WT/ACC/KAZ/3
Page191Supporting Table DS:9
DOMESTIC SUPPORT: KAZAKSTAN
REPORTING PERIOD: calendar year1996*
Non-Product-Specific Aggregate Measurements ofSupport
Measure type(s) Calendar/marketing
yearbeginningNon-product-speci
ficbudgetary
outlaysOther
non-product-specific
support (include
calculation details)Associated
fees/leviesTotal non-product
specific support,
Thousand US$Data source
1 2 3 4 5 6 7
1.Reschedule ofarrears 01.01.96 35,938 -- -- 35,938 Ministry of
Finance
TOTAL: Thousand
US$-- -- 35,938
*forthe1sthalfoftheyear