RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/SPEC/KGZ/91
1 April 1998
(98-1300)
Working Party on the Accession
of the Kyrgyz RepublicOriginal:  English
DRAFT REPORT OF THE WORKING PARTY
ON THE ACCESSION OF THE KYRGYZ REPUBLIC
I. INTRODUCTION
1. On 13 February 1996, the Government of the Kyrgyz Republic requested accession to the
World  Trade Organization (WTO).  At its meeting on 16 April 1996 the General Council establisheda Working Party to examine the application of th e Government of the Kyrgyz Republic to accede to
the WTO Agreement under Article XII, and to submit to the General Council recommendations whichcould include a draft Protocol of Accession.  Membership of the Working Party was open to all WTOMembers.  The terms of reference and the membership of the Working Party were reproduced indocument WT/ACC/KGZ/2/ Rev. 1 and
 Rev.2.
2. The Working Party met on 10 and 11 March 1997, 18 July 1997, and  5 February 1998 and
......   under  the Chairmanship of Mr. J.-M. Metzger (France).
II. DOCUMENTATION
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the
Foreign Trade Regime of the Kyrgyz Republic (WT/ACC/KGZ/3) and the questions submitted byMembers of the Working Party on the foreign trade regime of the Kyrgyz Republic, together with thereplies thereto, and other information provided by the Kyrgyz Republic authorities.  The Governmentof the Kyrgyz Republic  made available to the Working Party the following documentation:
- The Constitution of the Kyrgyz Republic
                                                     
1In order to facilitate the identification of changes to the earlier version of the Report additions to the
text are shaded and deletions are struck out.WT/ACC/SPEC/KGZ/9
Page 2
Laws
- The Civil Code of the Kyrgyz Republic,
- Bankruptcy Law in force since 19 April 1994 Law on Bankruptcy of 15 October 1997
- Law No. 1057-XII of 12 December 1992 On Banks and Banking (with amendments No. 1394-XII
of 12 January 1994)
- Law No. 1357-XII of 10 January 1994 On the Principles of the Budget
- Law No. 6 of 2 April 1996 On Certification of Goods and Services- Resolution of the Government of the Kyrgyz Republic No. 520 of 2 December 1995 On A doption
of the Regulation on the Procedure of Control of the Goods Imported to the Kyrgyz Republic
- Resolution of the Government No. 260 of 28 April 1994 On Adoption of the List of Goods
(Works and Services), Produced On the Territory of the Kyrgyz Republic and Imported to its
Territory, Which are Subject to Certification On the Indicators of Safety
- Law No. 915-XII of 29 June 1992 On Commodity Exchange and Exchange Trade in the Kyrgyz
Republic
- Law On Pledge of 6 March 1992
- Law No. 768-XII of 28 February 1992 On Protection of Consumer Rights of
10 December 1997(as amended by the Law of the Kyrgyz Republic No. 1426-XII of14 January 1994)
- Law of 6 March 1992 On Concessions and Foreign Concession Enterprises
- Law of 7 February 1992 On Customs Code of 30 July 1997- Resolution On implementation of the Custom Code
- Resolution of the Supreme Soviet of the Republic of Kyrgyzstan No 769-XII of 28 February 1992
- On Implementing the Law On Consumers Rights Protection
- Law No. 683-XII of 20 December 1991 On General Pr inciples of Denationalization, Privatization
and Undertakings in Kyrgyz Republic (to be extended and specified by Laws as of 6 March 1992No. 876-XII;  2 July 1992 No. 939-XII; 8 May No. 1229-XII;  12 January 1994 No. 1382-XII;
16 April 1994 No. 1501-XII;  23 June 1995 No. 5-I;  28 September and 11 October 1995 No. 30-I;
Resolution of Parliament of 12 January 1994 No. 1386-XII).
- Resolution of Supreme Soviet of the Republic  of Kyrgyzstan No. 684-XII of 20 December 1991
On the Procedure of Putting into Force of the Law of the Republic of Kyrgyzstan About the 
General Principles of Denationalization, Privatization and Undertakings -Law No.
1385-XII of 12 January 1994 On Denationalization and Privatization of State Ownership in the
Kyrgyz Republic
- Decree of the Zhogorku Kenesh of the Kyrgyz Republic No 1386-XII of 12 January 1994 On the
Procedure for the Introduction into Operation of the Law of the Kyrgyz Republic On
Denationalization and Privatisation of State Ownership in the Kyrgyz Republic
- Law No. Y16-XII of 17 April 1991 On Protection of the Environment
- Law No. 6-1 of 5 July 1995 On Operations in Foreign Currency- Law No. 1076 of 16 December 1992 On Free Economic Zones in the Kyrgyz Republic (as
amended by the Law of the Kyrgyz Republic No. 2 of 15 March 1996)
- Resolution of the Supreme Soviet of the Ky rgyz Republic No. 1077-XII of 16 December 1992 On
implementation of the Law of the Kyrgyz Republic On FEZ in the Kyrgyz Republic
- Law No. 536-XII of 28 June 1991 On Foreign Investments in the Kyrgyz Republic (as amended
by the Law of the Kyrgyz Republic No. 1221-XII of 7 May 1993 and No. 20-1 of
26 September 1995)
- Resolution of the Supreme Soviet of the Kyrgyz Republic No. 537-XII of 28 June 1991 On Order
of Implementing the Law of the Kyrgyz Republic On Foreign Investments in the Kyrgyz Republic
- Law of 18 April 1991 On Common Principles of Foreign Economic Activity
- Law No. 943-XII of 2 July 1992 On People's Health Protection (as amended by Law of the
Kyrgyz Republic No. 1091-XII of 18 December 1992)WT/ACC/SPEC/KGZ/9
Page 3
- Resolution Of the Supreme Soviet of the Kyrgyz Republic No 944-XII Regulations for
Enforcement of the Law of the Kyrgyz Republic On People's Health Protection in the
Kyrgyz Republic
- Law No. 670-XII of 18 December 1991 On Insurance- Resolution of the Supreme Soviet of the Republic of Kyrgyzstan No. 671-XII of
18 December 1991 On implementation of the Law of the Republic of Kyrgyzstan On Insurance
- Law No. 1548-XII of 27 May 1994 On Making, Ratifying, Implementing and Denouncing
International Agreements of the Kyrgyz Republic
- Resolution No. 1549-XII of 27 May 1994 On bringing into force the Law of the Kyrgyz Republic
On making, ratifying, implementing and denouncing the International Agreements of the Kyrgyz
Republic
- Law No. 1478-XII of 14 April 1994 On the Local Taxes and Fees
- Resolution of the Parliament of the Kyrgyz Republic of the 14 April 1994 On the implementation
procedure of the Law of the Kyrgyz Republic On local taxes and fees
- Law No. 7 of 2 April 1996 On Providing Unity of Measurements
- Law of the Kyrgyz Republic (enforced by Resolution of the Supreme Soviet No. 949-XII) of
3 July 1992 On Medical Insurance of the Citizens of the Kyrgyz Republic (as amended by theLaw of the Kyrgyz Republic No. 27-I of 28 July and 26 September 1995)
- Law of 15 December 1992 On Mineral Resources
- Resolution of the Kyrgyz Republic Supreme Soviet of 15 December 1992 On the Manner of
Implementation of the Kyrgyz Republic Law On Mineral Resources
- Draft Law of the Kyrgyz Republic On th e Limitation of Monopolistic Activities and the
Development and Protection of Competition of 15 April 1994
- Law On the National Bank
- Law No. 1481-XII of 14 April 1994 On Non-Tax Payments
- Law No. 34 of 1 July 1996 On Normative Legal Acts of the Kyrgyz Republic
- Law of the Kyrgyz Republic (enforced by Resolution of the Supreme Soviet No. 946-XII) of
2 July 1992 On Sanitary-Epidemic Welfare of the Kyrgyz Republic's Population
- Law of the Kyrgyz Republic On Securities and Stock Exchanges of 21 December 1991
- Law of the Kyrgyz Republic of 2 April 1996 On Standardization- Law No. 1072-XII (enforced by Resolution of the Supreme Soviet of the Kyrgyz Republic
No. 1073-XII of 16 December 1992) of 16 December 1992 On the State Fee
- Law No. 874-XII of 6 March 1992 On the State Tax Service
- Law No. 1553-XII of 28 May 1994 On the Basic Principles of the Treasury of the
Kyrgyz Republic
- Law No. 660-XII of 17 December 1991 On Taxes from Companies, Associations and
Organizations (as amended by Laws:  No. 872-XII of 6 March 1992, No. 925-XII of
30 June 1992, No. 1088-XII of 17 December 1992, No. 1237-XII of 8 May 1993, No. 1416-XII of
13 January 1994, No. 1525-XII of 25 May 1994, No. 25-I of 27 July and 26 September 1995 and
No. 24 of 26 June 1996)
- Law of the Kyrgyz Republic On Taxes from Population of 27 December 1991
- Law No. 1472-XII of 14 April 1994 On Principles of Taxation System in the Kyrgyz Republic
Presidential Decrees
- Presidential Decree No. 134 of 5 May 1993 On Regulating Currency Transactions
- Presidential Decree of 9 June  6 September 1994 On Additional Guarantees for Foreign Investors
in the Kyrgyz Republic
- Presidential Decree No. 246 of 27 July 1992 On the State Commission of the Kyrgyz Republic for
Foreign Investments and Economic Assistance
- Presidential Decree No. 270 of 9 September 1992 On Measures for Organization of Expert
Examinations of Foreign InvestmentsWT/ACC/SPEC/KGZ/9
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- Presidential Decree No. 280 of 23 September 1992 On Changing the Procedure for Licensing
Raw Materials, Consumer Goods and Products of Productional and Technical Purpose
- Presidential Decree No. 35 of 9 February 1993 On Changes in the State Regulation of Foreign
Economic Activities in the Kyrgyz Republic (as amended by Presidential Decrees No. 219 of
30 July 1993, No. 5 of 12 January 1994, No. 32 of 23 March 1994 and No. 36 of
9 February 1995)
- Presidential Decree No. 121 of 2 April 1992 On Regulation of Foreign Economic Activity in
the Kyrgyz Republic
- Presidential Decree No. 140 of 11 April 1996 On Measures to Improve Coordination of
Privatization with Attraction of Foreign Investment to the Kyrgyz Republic
- Presidential Decree No. VII-165 of 13 May 1996 On Additional Measures on Introduction of
State Monopoly to the Production, Storage,  Sale of Alcohol and Alcoholic Products
- Presidential Decree No. 207 of 19 June 1992 On Licensing Certain Kinds of Businesses (as
amended by Presidential Decrees:  No. 3 02 of 27 October 1992, No. 106 of 6 April 1993,
No. 6 of 12 January 1994, No. 22 of 22 February 1994, No. 74 of 7 May 1994, No. 148 of
4 July 1994, No. 177 of 15 July 1994, No. 235 of 7 September 1994, No. 254 of
6 October 1994, No. 36 of 9 February 1995, No. 70 of 11 March 1995, No. 177 of
17 July 1995, No. 322 of 25 November 1995)
- Presidential Decree No. 234 of 9 June 1994 On Additional Guarantees for Foreign Investors
in the Kyrgyz Republic
- Presidential Decree No. VII-301 of 12 November 1994 On the Arrangements for Increasing
Control Over the Market of Securities of the Kyrgyz Republic
- Presidential Decree No. 319 of 9 December 1994 On the Bishkek Foreign Investments
Attraction Zone
- Presidential Decree No. 34 On Some Measures for Protection and Development of Private
Entrepreneurship of 25 March 1994
- Presidential Decree No. 42 of 27 February 1995 On Improving Taxation in Agriculture
- Presidential Decree No. 45 of 4 March 1996 On the Structure and Composition of the Cabinet
of Ministers of the Republic
Resolutions
- Resolution of the Cabinet of Ministers No. 373 of 25 August 1995 On Strengthening
Responsibility for Unauthorized Purchase, Sale of Scrap and Fragments of Non-Ferrous and
Ferrous Metals and Their Industrial Scrap (as amended by Resolution of the Cabinet ofMinisters No. 268 of 17 June 1996)
- Resolution of the Cabinet of Ministers No. 383 of 12 September 1995 On the Programme of
State Investments for 1996-1998
- Resolution of the Government No. 408 of 13 June 1994 On the Establishment of Provisions
on the Procedure of Export and Import Licensing Goods in the Kyrgyz Republic
- Resolution of the Cabinet of Ministers No. 440 of 23 October 1995 On Approving the
Regulations on the Procedure for Delivery of Goods and Rendering Services within theFramework of Productional Cooperation of Enterprises and Branches of the Kyrgyz Republic
and Other States - the CIS Participants
- Resolution of the Government No. 484 of 14 November 1995 On Creation of the Consulting
Agency on International Procurement Under the General Directorate of the State Commission
for Foreign Investments and Economic aid of the Kyrgyz Republic
- Resolution of the Cabinet of Ministers No. 49 of 1 February 1996 On the Draft Law of the
Kyrgyz Republic On the Customs Tariff of the Kyrgyz Republic
- Resolution of the Cabinet of Ministers N o. 52 of 2 February 1996 On Measures of
Extraordinary Financial Support of AgricultureWT/ACC/SPEC/KGZ/9
Page 5
- Resolution of the Government No. 520 of 2 December 1996 On Adoption of the Regulation
on the Procedure of Control of the Goods Imported to the Kyrgyz Republic
- Resolution of the Government No. 523 of 18 July 1994 On the Rates of the Author's Award
for Public Performance and Other Kinds of Usage the Productions of Literature and Arts
- Resolution of the Government No. 56 of 6 February 1996 On the Procedure for the Export
and Import of Commodities (Goods and Services) in the Kyrgyz Republic
- Resolution of the Government No. 57 of 5 February 1993 On Procedures of Transfer of
Articles, Property, Currency, Auto-motor Vehi cles and Other Valuables Through the Customs
Border of the Kyrgyz Republic
- Resolution of the Government No. 57 of 6 February 1996 On Confirmation of the List of
Country-Users of the Preference Scheme in the Kyrgyz Republic
- Resolution of the Cabinet of Ministers No. 571 of 27 December 1995 On Introduction of
Applying Excise Marks on Production, Impor tation and Sale of Tobacco Products and
Alcoholic Beverages in the Kyrgyz Republic
- Resolution of the Cabinet of Ministers No. 613 of 30 December 1993 On Temporary Customs
Tariff (as amended by Resolutions of the Cabinet of Ministers No. 26 of 21 January 1994 and
No. 358 of 28 May 1994)
- Resolution of the Government No. 622 of 18 August 19942 On Customs Regime of
Processing of Tolling Raw Materials and Goods Within the Customs Territory of the
Kyrgyz Republic
- Resolution of the Government No. 119 of 20 March 1996 On Adoption of Regulations on
Equipping Transport Vehicles (Containers) for Carriage of Goods with Customs Stamps and
Seals
- Resolution of the Government No. 725 of 23 September 1994 On Regulations on the State
Inspection for Standardization and Metrology at the Government of the Kyrgyz Republic
- Government Decree No. 82 of 28 February 1996 On Programme of Denationalization and
Privatization of State Property in the Kyrgyz Republic for 1996-1997
- Resolution of the Government No. 9 of 8 January 1996 On Approval of the Resolution on
Procedures of Use of the Excise Marks in the Kyrgyz Republic on Production, Import and
Realization of Tobacco Goods and Alcoholic Drinks
- Resolution of the Government No. 901 of 30 December 1994 On Regulating the Import of
Goods, Things and Other Objects by Physical Persons in the Kyrgyz Republic
- Resolution of the Government No. 97 of 22 March 1995 On Main Directions of Foreign
Economic Activity of the Kyrgyz Republic
- Resolution of the Government No. 10 of 9 January 1996 On Temporary Regulation On
Applying Excise Seals On Oil Products Imported to the Kyrgyz Republic
- Resolution of the Government No. 109 of 30 March 1992 On Ratification of Resolutions on
Procedures for Registration of Securities, on Procedures of Licensing the Right for
Professional Stock Market Activities, on Procedures for Collecting Securities Registration
Fees, Licensing and Certifying the Right for Implementation of Professional Stock MarketActivities and for Collecting Other Fees, on Procedures for Maintaining the General State
Registry of Joint Stock Companies, Recording and Accountability in Joint Stock Companies
- Resolution of the Supreme Soviet of the Republic of Kyrgyztan No. 1126-XII of
18 December 1992 On Introduction of State Licensing in Construction Activity in the
Kyrgyz Republic
- Resolution of the Government No. 29 of 24 January 1994 On Creation of the State Regulation
of Production, Storage and Distribution of Et hyl Spiritus and Establishing Control over
Production and Sale of Strong Drinks in the Kyrgyz Republic
- Resolution of the Government No. 120 of 14 March 1994 On the Results of the
Reconstruction and Privatization in 1991-1993 and on the Programme of the Reconstructionand Privatization of State Property in the Kyrgyz Republic in 1994-1995
- Presidential Decree No. 121 of 2 April 1992 On Regulation of Foreign Economic Activity in
the Kyrgyz RepublicWT/ACC/SPEC/KGZ/9
Page 6
- Resolution of the Supreme Soviet No. 1220-XI I of 7 May 1993 On Karakol, Alai, Chon-Alai
and Kara-Kuldji Free Economic Zones
- Resolution of the Cabinet of Ministers No. 135 of 27 March 1996 On Clarification of the List
of Subjects-Monopolists for 1996
- Resolution of the Government No. 146 of 5 April 1996 On Supplement of the List of the
Productions (Works, Services) Produced in the Kyrgyz Republic and Imported to its TerritoryBe Subject to Obligatory Certification of the Index Safety, Stipulated to Introduce on the III
Stage, Approved by the Resolution of the Go vernment of the Kyrgyz Republic No. 260 of
28 April 1994
- Resolution of the Legislative Assembly of Jogorku Kenesh of the Kyrgyz Republic No. 151-1
of 23 June 1995 On Creation of Free Economic Zones of Bishkek City
- Resolution of the Cabinet of Ministers No. 559 of 21 December 1995 On the Development
Programme for Export of the Kyrgyz Republic for 1996 and Middle-Term Prospects
- Resolution of the Cabinet of Ministers No. 167 of 16 May 1995 On the Work of the Ministry
of Communication on Carrying Out First Proj ect of Telecommunication in the Republic
Financed by the World Bank/MAR and European Bank of Reconstruction and Development
- Resolution of the Government No. 209 of 10 May 1996 On the Concept of Development of
Free and Private Market for Grain in the Kyrgyz Republic
- Resolution of the Cabinet of Ministers No. 242 of 2 June 1993 On Approving the Regulation
on the Procedure of Licensing Attraction (Hiring) of Manpower from Abroad
- Resolution of the Government No. 260 of 28 April 1994 On Approval of the Products' List
(Works, Services) Produced in the Territory of the Kyrgyz Republic and Imported to its
Territory, Being Subject for Compulsory Certification on Safety Indications
- Resolution of the Cabinet of Ministers No. 27 0 of 7 July 1995 On Approving the Procedure
for Calculation and Collection of Excise Tax on Produced and Imported Alcohol and
Liquor-Vodka Products
- Resolution of the Cabinet of Ministers No. 290 of 7 May July 1993 On Creation of
Customs-Tariff Council Under the Cabinet of Ministers
- Resolution of the Government No. 298 of 21 July 1995 On Implementation of the State
Regulation of Production, Storage and Distribu tion of Ethyl Spiritus and Strong Drinks
- Resolution of the Government No. 3 of 5 January 1996 Regulations On the Procedures of
Imposition of Penalties and Economic Sanctions for Violations of the Anti-Monopolistic
Legislation, Pricing Discipline a nd Consumers' Rights Protection
- Resolution of the Cabinet of Ministers No. 300 of 1 July 1996 On State Customs Inspectorate
Under the Cabinet of Ministers
- Resolution of the Cabinet of Ministers No. 327 of 17 July 1996 On the Course of
Implementing Regulations of the Parliament and the Cabinet of Ministers On Issues of
Introduction of State Monopoly in the Sphere of  Production, Storage and Sale of Alcohol and
Alcoholic Products
Instructions and Regulations
- Instruction On Customs Procedures for Transit Cargo (approved by Order No. 145 of the
State Customs Inspection on 23 August 1993)
- Instruction of the Order to Fill the Cargo Customs Declaration (approved by Decree
No. 05-06/13 of the State Customs Inspection  on 24 January 1996)
- Instruction On Application of Personal Examin ation  (approved by Order No. 176-1 of the
State Customs Inspection on 17 September 1993)
- Order No. 45 of 14 February 1994 On the Procedure for Licensing Entrepreneurship Activity
of Paid (i.e. for pay) Medical, Pharmaceutical and Educational Institutions and Persons
Engaged in Private Medical, Pharmaceutical Practice and Paid TrainingWT/ACC/SPEC/KGZ/9
Page 7
- Instruction No. 99-p of 19 March 1993 to approve "Statute on the Order of Design, Expert
Examination and Adoption of Investment Projects for the Construction Sector in the Territory of
the Kyrgyz Republic"
- Regulations for Opening Commercial Banks in the Kyrgyz Republic (approved by the Board of
the National Bank of the Kyrgyz Republic No. 1/8 of 23 July 1994 with amendments and
additions No. 16/4 of 30 June 1995
- Regulation on State Licensing the Construction Activity Implemented on the Territory of the
Kyrgyz Republic by Enterprises with Foreign Investment (approved by Resolution of the
Collegium of the State Construction of 10 February 1995)
- Order No. 05-06/12 of 24 January 1996 On Approv al of the Regulation on Procedure of Control
Over the Goods Exported from the Territory of the Customs Union (State Customs Inspectorate
Under the Government of the Kyrgyz Republic)
- Temporary Regulations On Drawing, Submitting and Considering Applications On Official
Registration of Software, Databases and Topographies (Main Department of Intellectual Propertyof the Ministry of Education and Science of 29 August 1995)
- Document Regulations On Activities of the Branches Representative Offices of Foreign Banks in
the Kyrgyz Republic of 30 June 1994
- Regulation On State Licensing of Construction Activities in the Kyrgyz Republic (with
amendments by Decree of the Gosstroi of the Kyrgyz Republic No. 16 of 30 March 1994 and
No. 30 of 28 September 1995)
- Temporary Provisions on Industrial Property of the Kyrgyz Republic (adopted by Decree of the
State Committee on Science and New Technologies No. 3 of 2 August 1993)
- Temporary Provisions On Work Inventions, Utility Models and Industrial Designs
- Order of Receiving Payments for Licence Extradition
- Regulations On the Procedures of Imposition of Penalties and Economic Sanctions for Violations
of the Anti-Monopolistic Legislation, Pricing Discipline and Consumers' Rights Protection
(passed by Resolution of the Government No. 3 of 5 January 1996)
- Temporary Provisions On Selection Achievements of 24 July 1995
- Regulations on the State Inspection for Standardization and Metrology At the Government of the
Kyrgyz Republic (passed by Resolution of the Government No. 725 of 23 September 1994)
- Temporary Regulations On the State Fund of Industrial Property (approved by the Ministry of
Education and Science on 24 July 1995)
- Regulation On Department of Patent Agency for Trademark and Industrial Model Examination
- Regulation on Equipping Transport Vehicles (Containers) for Carriage of Goods With Customs
Stamps and Seals (approved by the Resolution of the Government of the Kyrgyz Republic No. 119of 20 March 1996)
- Draft Law on Anti-Dumping.
- Draft Law on Subsidies and Countervailing Measures
- Draft Law on Safeguards
- Draft Civil Code Part II (Section on Intellectual Property) of 5 January 1998- Criminal Code (Section on Intellectual Property) of 1 January 1998
- Draft Law on Copyright and Neighbouring Rights of 14 January 1998
- Draft Law on Trademarks, Servicemarks and A ppellation of Places of Origin of 14 January 1998
- Draft Patent Law of 14 January 1998
- Draft Law on Software and Database adopted on 2 March 1998
- Draft Law on Integrated Circuit Topography adopted on 2 March 1998
- Draft Law On Selection Achievements
- Draft Law on Commercial Secrets adopted on 2 March 1998- Law On Foreign Investment, 24 September, 1997
- Law On Banks and Banking Activities
, 29, July 1997
- Law On the National Bank, 29 July 1997WT/ACC/SPEC/KGZ/9
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- Law On Collateral, 27 June, 1997
- Law On Subsurface Resources, 2 July 1997
- Law On State Regulation of Foreign Economic Activities, 2 July 1997
- Amendments to the Customs Tariff Law, 30 July 1997
- Amendments to Part I of the Civil Code, 15 October 1997
- Draft Amendments to the Law On Standardization- Draft Amendments to the Law On Certification
- Draft Amendments to the Law On Veterinary
- Draft Amendments to the Law On Plant Quarantine
- Draft Amendments to the Customs Code
- Draft Amendments to the Tax Code
- Draft Regulations On Import/Export Licensing
- Draft Amendments to the Law On Free Economic Zones
III. ECONOMIC POLICIES
- Foreign exchange and payments system
4. In response to requests for information, the representative of the Kyrgyz Republic informed
members of the Working Party that a highly pro-active monetary policy was being pursued by theNational Bank of the Kyrgyz Republic (NBKR) to stabilize the foreign exchange value of the Som.
The Kyrgyz Republic did not maintain any exchange restrictions on current account or capitaltransactions.  Individuals and legal entities could import and export foreign currency withoutlimitations provided they declared the amount to the customs.
5. The representative of the Kyrgyz Republic added that the Kyrgyz Republic had joined the
IMF on 8 May 1992.  The Kyrgyz Republic accepted the obligations of Article VIII of the IMFArticles of Agreement in March 1995 and maintained a fully convertible currency.  TheKyrgyz Republic's quota was Special Drawing Rights 64.5 million (about US$96 million) and itsoutstanding use of IMF credit currently totalled SDR 83.6 million (about US$120 million).   Hefurther noted that on 11 December 1995, the International Monetary Fund (IMF) approved a firstEnhanced Structural Adjustment Facility (ESA F) loan in the amount of  SDR 88.15 million.
- Investment regime
6. Some members of the Working Party enquired whether there were any restrictions to the
national treatment principle in relation to investments by foreign persons in the Kyrgyz Republic.The representative of the Kyrgyz Republic stated that in some instances, an applicable law or
regulation subjected a foreign product, service, citizen or legal entity to a condition or requirement
that differed from that applicable to a Kyrgyz c itizen and/or legal entity, and thereby treated foreign
persons less favourably than Kyrgyz citizens (e.g. the existing fee structure for the registration ofWT/ACC/SPEC/KGZ/9
Page 9
intellectual property rights).  In other instances, foreign persons received more favourable treatment
(e.g. certain tax exemptions were only made available to Kyrgyz legal entities with substantial foreign
participation).  The new law on Foreign Investment of 16 September 1997 provided guarantees of
national treatment, equitable and fair treatment, a nd full and constant protection for foreign investors.
Exceptions from national treatment, according to the same law, were restrictions connected with
defence and the protection of national security, health of population, and public moral all of which fall
under Article XX and XXI exceptions under the GATT 1994.  At this point, no such restrictions had
been introduced.  The Law on Denationalization and Privatization of State Property of
12 January 1994 provided the Cabinet of Ministers with the authority to restrict or otherwise limit
foreign investors from participating in the privatization of certain industries; however the Cabinet of
Ministers had not yet exercised this authority.   The Kyrgyz Republic would not use such authority in
a manner that was inconsistent with its obligations as a future member of the WTO.  Foreign investors
could freely repatriate investments made or profits earned in the Kyrgyz Republic in a freelyconvertible currency.
7. Some members of the Working Party asked whether foreign investors were protected against
expropriation or nationalisation of their assets.  In response, the representative of the Kyrgyz Republicstated that Article 7 of the "Law On Foreign In vestments in the Kyrgyz Republic" of 28 June 1991,
guaranteed investments (whether foreign or domestic) from nationalization except when(i) a nationalization was necessary to protect the health and/or lives of the population or to ensureState and/or public security from a threat created by the investment, and (ii) the foreign investor hadrefused or was not able to comply with an order of the responsible State body to eliminate the threatwithin the time specified in such order.  In the ev ent of a nationalization or requisition of a foreign
investment, the Law on Foreign Investments required that the foreign investor be paid compensationin an amount commensurate with the real cost of the concerned property.  Such compensation was tobe made in the currency in which the investment was made or - if the investor agreed - in the national
currency of the Kyrgyz Republic.  The Law on Foreign Investments created rights that wereenforceable against the Government and State bodies in the commercial Courts of theKyrgyz Republic.
8. In response to questions concerning the ownership of land by foreign investors, the
representative of the Kyrgyz Republic noted that the Constitution of the Kyrgyz Republic prohibitedthe private ownership of land by private persons or legal entities, either foreign or local.  There wereno plans to eliminate that restriction.  Foreign citizens and legal entities could purchase residentialimmovable property attached to land - such as apartments and houses - only with the specificpermission of the Cabinet of Ministers.  Foreign citizens and legal entities could rent immovableproperty on the same basis as Kyrgyz citizens and legal entities.WT/ACC/SPEC/KGZ/9
Page 10
9. The representative of the Kyrgyz Republic noted that the Law on  the new law on Foreign
Investment in the Kyrgyz Republic had been enacted in September 1997.
- State ownership and privatization
10. The representative of the Kyrgyz Republic stated that the Government’s privatization plans
were organized according to industrial and sectoral priorities.  In the electric energy sector, the planwas to attract foreign investment for the development of hydroelectric power engineering, to privatizesectoral  enterprises and to modernize and reconstruct electric grid networks.  In the coal industry, theplan was to restructure the sector and sector enterprises by reorganizing and, where  necessary,liquidating sector enterprises, to develop coal open-pit mining with the aim of decreasing productioncosts and to promote energy saving technologies.  In the oil and gas sector, the plan was to constructand bring into operation two small oil refineries in  the next two years and to develop a package of
documents for conducting an international tender intended for the purpose of attracting foreigninvestment into the exploration and exploitation of oil and gas deposits, to conduct the tender.  In thegold extracting industry, the plan was to attrac t foreign investment into the exploration and
exploitation of gold deposits.  Non-ferrous metallurgy (mercury, antimony, tin, tungsten) would bereformed to attract foreign investment into the development of the antimony and mercury metallurgyindustry.
11.
The representative of the Kyrgyz Republic  He  further added that in the machine building and
metal processing sector, the Government planned to reorganize the production of machines,equipment (and the parts thereof) for (i) processing agricultural products, (ii) mechanizing smallpeasant and family farms and (iii) use in the  coal mining industry.  The Government also planned toreform the electrotechnical sector to orient enterprises toward the production of complex electricalappliances and equipment for the electric energy indus try.  Light industry would be reformed to speed
up the structural transformation of the sector and to  find new markets both within and outside the CIS.
More modern equipment would be purchased with the aid of German and  Japanese loans.  Foodproduction and processing industries would be reformed to establish small and medium-sized on-siteproduction/processing facilities for milk, meat, fruit and vegetable production and processing.  Thepharmaceuticals sector would be reformed to attract foreign investment into the domesticpharmaceutical industry generally and to complete the construction of "bishkekbiofarm", a chemicalpharmaceutical plant.  The agriculture sector would be reformed to attract foreign investment for thepurpose of developing export-oriented agricultural enterprises; and to create joint ventures withforeign investors for the production of agricultural products.  The construction sector would bereformed to attract foreign investment into the housing construction industry and to encourage themanufacturing of energy-saving construction materials.WT/ACC/SPEC/KGZ/9
Page 11
12. In response to requests for information concerning restrictions on foreign investors
participation in privatisation, the representative of the Kyrgyz Republic stated that paragraph 26
Article 8 of the Law on Denationalization of State Property of 12 January 1994, provided that duringthe privatization of State owned assets, the Cabinet of Ministers could "reduce the number ofpurchasers to guarantee the priority rights of citizens and legal entities of the Kyrgyz Republic."  Henoted, however, that this power had not yet been exercised.
13. The representative of the Kyrgyz Republic stated that the status of privatization in the
Kyrgyz Republic was provided in Tables 1 and 2 below.  As of 1 January 1998, approximately
64 per cent of State-owned objects (base is 1 January  1991) had been privatized. The total value of
privatized state objects since 1991 was 13,418,900 Million Som.  The mass privatization program was
completed on 30 June 1997.  The shares of 1,056 Joint-Stock Companies were sold using coupon
auctions.  According to Article 4 of the Kyrgyz Republic Constitution of 5 May 1993, land, minerals,
water, air space, forests, plant and animal life and all other natural resources were the exclusive
property of the State.  According to Article 3 of the Law on Privatization and Denationalization of
12 January 1994, objects in exclusive ownership of the Kyrgyz Republic could not be subject to
privatization.  The lease of such property was, ho wever, possible.   The Law on Privatization and
Denationalization also authorized the Cabinet of Ministers to specify additional objects not subject to
denationalization and privatization, even though their privatization and denationalization might not be
specifically prohibited in the Kyrgyz Republic Constitution and the Kyrgyz Republic Law On
Privatization and Denationalization.  The current list of objects not subject to privatization is the
following:
- mineral  resources, forest fund, water resources, air space;
- protected  or used in a special manner natural territories;
- objects  of historical and cultural heritage of the people of Kyrgyzstan (unique cultural and
natural monuments, objects of nature, history, culture, science and technology, as well as
rarities kept in state museums, libraries and their subsidiaries, the association of folk art
production " Kyial ");
- property  compounds of state power and management bodies;
- funds  of the republican budget and [foreign] currency reserve of the Kyrgyz Republic, Social
Fund under the Kyrgyz Republic Government, other State out-of-the-budget funds, as well as
the gold reserve;
- National Bank of the Kyrgyz Republic, Treasury, Monetary chamber;
- arms , military equipment and other property of military use, budget-financed entities and
organizations (including arsenals), as well as vehicle columns of military type under the
operative management of the Ministry of Defense of the Kyrgyz Republic, Ministry ofWT/ACC/SPEC/KGZ/9
Page 12
National Security of the Kyrgyz Republic; Ministry on emergencies and civil defense of the
Kyrgyz Republic, Ministry of interior of the Kyrgyz Republic, other ministries and agencies
that have military units;
- military  objects of CIS countries located on the Kyrgyz Republic territory in accordance with
existing inter-state agreements;
- objects  of the civil defense of the Ministry of Emergencies and Civil Defense of the Kyrgyz
Republic;
- science-technical  entities and organizations within the system of the State agency on forests
under the Kyrgyz Republic Government;
- enterprises  and science-technological entities and organizations within the system of the State
inspection on standardization and metrology under the Kyrgyz Republic Government and
State archive agency under the Kyrgyz Republic Government;
- entities  and organizations subordinate to the National Committee on Statistics of the
Kyrgyz Republic;
- enterprises  and organizations of hydro-meteorological service, services of control over the
state of environment and protection of the nature;
- enterprises  and organizations of the mapping-geodesic service;
- enterprises  and entities of sanitary-epidemiological and quarantine service of the
Kyrgyz Republic, plant protection service;
- objects  and equipment for permanent storage of hard industrial and household wastes, hard
and liquid radioactive wastes, animal cemeteries;
- cemeteries , enterprises on their service and provision of ritual services;  and,
- technical  inventory bureau.
The Law on Denationalization and Privatization of State Property of 12 January 1994 provided the
Cabinet of Ministers with the authority to restrict or otherwise limit foreign investors from
participating in the privatization of certain industries; however the Cabinet of Ministers had not yet
exercised this authority.   The Kyrgyz Republic would not use such authority in a manner inconsistent
with its obligations as a future member of the WTO.  Foreign investors currently participated in the
privatization process in the Kyrgyz Republic according to the same rules applied to domestic
investors.  Privatization methods which will be used  for privatizing remaining State assets, subject to
privatization were:
(i) corporatization  (turning a State-owned enterprise into a Joint Stock Company-JSC)
followed by privatization through sales of shares using auctions or commercial
tenders  (used mainly for the privatization of medium and large scale enterprises);WT/ACC/SPEC/KGZ/9
Page 13
(ii) transformation  of a State-owned object into a limited liability partnership followed by
sale of partnership rights;
(iii) direct  sale (including bidding) to strategic investors (especially foreign companies) of
large-scale objects.  Companies are invited to bid through international press ;
(iv) direct  sale (including bidding), auctions, and commercial tenders of any objects;
(v) lease  (contract management) for a period of time including the right of purchase by
lessee.
During 1998, the Kyrgyz Republic planned to privatize large enterprises in strategic sectors of the
economy including mining, energy, telecommunications , and systems of supply (oil and gas).  These
include companies such as Kyrgyztelecom -telecommunications company, Kyrgyz Aba
Zholdoru -National airline company, Karabalta -Mining, Kadmajay  Antimony, Uchkun  JSC-Printing,
Akyl  JSC-Printing, Kyrgyz Energy Holding, Kyrgyzgasmunaizat , and Bishkek Machinery JSC.  Also,
the Kyrgyz Republic plans to privatize and denationalize companies and facilities of the
non-productive sphere (e.g. movie theatres, recreation objects, resorts ) in 1998-2000.
Table 1 :  Sectoral  Privatization Data Profile for 1991-1997
Sector Number of Objects of
State Property as of
1 January 1991Number of Privatized
Objects as of
31 December 1997Percentage of
Privatized Objects as
of 1 January 1998
Industry 602 531 88.2
Consumer Services 1919 1917 99.9
Oil Production Sector 1253 434 34.6
Trade and Public Catering 1949 1894 97.1
Agriculture 855 354 41.4
Construction 730 418 57.3
Transport 295 154 52.2
Other sectors 2306 673 28.2
Total 9989 6375 63.8WT/ACC/SPEC/KGZ/9
Page 14
Table 2 :  Sectoral  Privatization Data Profile by Privatization Modes For 1991-1997
Sector Privatization Mode Number of
Privatized Objects
Industry Lease with subsequent buy-out
Auctioning
Sale through auctions
Sale through tenders
Gratis transfers
Direct sale to private entities
Direct sale to labour collectives (bodies)
Incorporation (Joint-Stock Companies)8
400
16
12
1
18
49
27
Consumer Services Lease with subsequent buy-out
Auctioning
Sale through auctions
Sale through tenders
Direct sale to private entities
Direct sale to labour collectives (bodies)
Incorporation (Joint-Stock Companies)17
36
170
529
717
440
8
Non-production sector Lease with subsequent buy-out
Auctioning
Sale through auctions
Sale through tenders
Direct sale to private entities
Direct sale to labour collectives (bodies)
Incorporation (Joint-Stock Companies)2
277
30
8
41
28
48
Trade and public catering Lease with subsequent buy-out
Auctioning
Sale through auctions
Sale through tenders
Direct sale to private entities
Direct sale to labour collectives (bodies)
Incorporation (Joint-Stock Companies)41
213
151
581
307
549
52
Agriculture Lease with subsequent buy-out
Auctioning
Sale through auctions
Sale through tenders
Direct sale to private entities
Direct sale to labour collectives (bodies)
Incorporation (Joint-Stock Companies)4
128
6
1
30
177
8
Construction Lease with subsequent buy-out
Auctioning
Sale through auctions
Sale through tenders
Direct sale to private entities
Direct sale to labour collectives (bodies)
Incorporation (Joint-Stock Companies)2
298
11
3
13
69
22WT/ACC/SPEC/KGZ/9
Page 15
Sector Privatization Mode Number of
Privatized Objects
Transport Auctioning
Direct sale to private entities
Direct sale to labour collectives (bodies)
Incorporation (Joint-Stock Companies)137
3
11
3
Other sectors Lease with subsequent buy-out
Auctioning
Sale through auctions
Sale through tenders
Direct sale to private entities
Direct sale to labour collectives (bodies)
Incorporation (Joint-Stock Companies)24
151
77
28
171
193
28
14. The representative of the Kyrgyz Republic stated that the Kyrgyz Republic would provide
annually to WTO Members information on developments in its privatization and on other issues
related to its economic reforms as relevant to its obligations under the WTO.    The Working Party
took note of this commitment.
- Pricing policy
15. The representative of the Kyrgyz Republic stated that all prices had been liberalized except
when the concerned item was supplied by an entity  that has been classified as either a natural,
permitted or temporary monopoly. Certain natural monopolies (electricity, gas pipelines,telecommunications, railroad and aviation) were regulated through either price or profit restrictions bythe Anti-monopoly Department within the Ministry of Economy
 the Ministry of Finance.  Prices of
water supply, heat, hot water and public transport were set by city or oblast administrations.Non-natural monopolies with  a dominant position in the market (more than 35 per cent market share)were subject to profitability control.  The allowabl e margin of profitability ranged from 25 per cent to
50 per cent.  Currently, there were 105 companies (mostly goods producers) subject to profitabilitycontrol.  Companies which exceed their allowable profitability margin must provide a writtenjustification to the Anti-Monopoly Department.
16. In response, some members of the Working Party requested 
further information on which
"natural monopolies" were subject to pricing or profit controls, and how such controls were operated.
In response, the representative of the Kyrgyz Republic stated that tariff rates were required to be
approved by the Anti-Monopoly Department at the Ministry of Finance (AMD), on the basis of levels
and norms of profitability: cost of operating a specific infrastructure (e.g. power transmission line,
pipeline) or producing a specific product plus a profit margin set by the AMD.     The following
natural monopolies were subject to price and profit controls:WT/ACC/SPEC/KGZ/9
Page 16
- Kyrgyz Energy Holding production, transmissio n, and distribution of electricity and thermal
power);
- Kyrgyzgasmunaizat  (natural gas);
- Kyrgyztelecom  (communication services);
- Kyrgyzalco  (alcohol and alcoholic products);
- Kyrgyztamekesei  (tobacco and tobacco products);
- Kyrgyz Aba Joldoru  (air transport of passengers and cargo); and
- Kyrgyzrailroad  (rail transport of passengers and cargo).
In addition, the prices of services provided by Kyrgyztelecom  (e.g. cost for installing a phone, rate of
long distance calls/per minute) were set by the AMD.  The prices of services provided by
Kyrgyzgasmunaizat  (only gas for population) and Kyrgyz Energy Holding (e.g. electricity
HS 2716 rate/ kwh) were established by the State Agency on Energy.  Prices for using sewage
systems, water, and city public transport are set by city or oblast administrations.   All fees for services
provided by the state were subject to control (e.g. fee for driver’s license, fee for obtaining
phytosanitary certificate, fee for obtaining veterinary certificate).   Permitted monopolies (eight
companies) and temporary monopolies (34 companies) - these are companies which have dominant
position in the market (more than 35 per cent market share) - are not subject to price or profitability
control.  Permitted monopolies were required to notify their prices to the Anti-Monopoly Department
at the Ministry of Finance.  All other natural monopolies were permitted to set their prices freely.
17. The representative of the Kyrgyz Republic stated that the Kyrgyz Republic's regime for price
and profit control for natural monopolies would be op erated in conformity with the requirements of
Articles II and III of the GATT 1994 and Article VIII of the GATS.
In response, the representative of the Kyrgyz Republic stated that the Kyrgyz Energy Company
(electric power and thermal energy) ;  Management Department of Kyrgyz Railroad (intra-republic
passenger and goods transportation);  " Kyrgyzgas" (natural and liquified natural gas);  Ministry of
Communications (telecommunications services rendered to the public);  " Kyrgyzjilkommunsojuz"
(thermal energy, water-pipe water and sewage);  " Kyrgyzalco" (alcohol and alcohol products, other
than beer);  and, " Kyrgyztamekesi" (tobacco fermentation, manufacture of tobacco products, sale of
fermented tobacco) were subject to price and profit controls.WT/ACC/SPEC/KGZ/9
Page 17
18. Some members of the Working Party noted that two of the covered entities dealt with the
production and sale of alcohol and tobacco: Kyrgyzalco and Kyrgyztamekesi.  They requestedadditional information on the price controls applied.   In response, the representative of theKyrgyz Republic stated that Kyrgyzalco was a St ate Joint Stock Company within which there were
currently 14 joint stock companies.  The domestic market share of companies under the structure ofKyrgyzalco in the sale of alcoholic products was approximately 60 per cent.  Wholesale prices ofalcoholic products were established separately by each of the enterprises under Kyrgyzalco.Enterprises under Kyrgyzalco were required to declare their prices to the Anti-Monopoly Departmentunder the Ministry of Finance and were subject to profitability control by the Anti-MonopolyDepartment. Profit could not exceed 20 per cent.  There were no plans to eliminate Kyrgyzalco andtake away its authority to license the trade and production of alcohol and alcoholic products.
19. In relation to Kyrgyztamekesi, the representative of the Kyrgyz Republic added that it was a
State Joint Stock Company with seven companies under its structure (six were joint stock companiesand one was a State enterprise).  The domestic market share of Kyrgyztamekesi was approximately16 per cent for tobacco products.  Kyrgyztamekesi was required to declare its prices to theAnti-Monopoly Department under the Ministry of Finance and was subject to profitability control bythe Anti-Monopoly Department.  Its profit was not permitted to exceed 20 per cent.
20. In response to requests from some members of the Working Party, the representative of the
Kyrgyz Republic stated that the Kyrgyz Republic would notify all price controls on products andservices still in effect, at the central and sub-centr al level, by HS number. Controls in place would be
described, including the legal basis for the controls including the reasons for the existing controls, andthe conditions under which the Kyrgyz Republic expects to use such controls in the future.  All pricesfor goods and services in every sector that were not notified as being subject to price controls wouldbe determined by market forces.   Any changes in price controls would be published in officialpublications.  All price controls would be applied in a WTO-consistent fashion, taking into accountthe interests of exporting WTO Members as provided for in Article III:9 of the GATT 1994.WT/ACC/SPEC/KGZ/9
Page 18
IV. FRAMEWORK FOR MAKING AND ENFORCING POLICIES
- Powers of executive, legislative and judiciary, administration of policies on WTO-
related issues
21. The representative of the Kyrgyz Republic stated that under the Constitution of the
Kyrgyz Republic, governmental power was divided among the executive, legislative and judicialbranches, with the President being afforded the mo st significant power.  The President was the Head
of State and the highest government official.  The executive powers were exercised by theGovernment (principally, the Cabinet of Ministers) formed by the President.  The head of theGovernment was the Prime Minister.  The President was elected to a 5-year term of office on the basisof universal (persons 18 years of age and older), equal and direct suffrage by secret ballot.  TheConstitution gave the President wide-ranging powers:  he was the highest representative of theKyrgyz Republic both within the country and in international relations; he determined the basic
direction of domestic and foreign policy and had the right to propose and veto legislation;  his assentwas required for any bill passed by the Parliament to become law (unless the Parliament wasexercising a presidential veto).  He had the power to issue decrees and to suspend or invalidate acts ofthe Cabinet of Ministers and other executive bodies.  The President was responsible for appointingmembers of the Cabinet of Ministers.
22. He further added that the Cabinet of Ministers was the principal institution of Government.
Executive power was exercised by the Cabinet of Mini sters, as well as the individual ministries, State
committees, administrative departments, other central executive bodies and local State administrationsunder the control of the Cabinet of  Ministers.  The Cabinet of Ministers consisted of the PrimeMinister, all Vice-Prime Ministers, all Ministers and Heads of State Committees.
23. The Government was the highest body within the executive power system of the
Kyrgyz Republic, (except the President) and as such directly controls activities of local state
administrations on a range of issues, including those involving external trade matters and
implementation of provisions of international treaties to which the Kyrgyz Republic is a party.
Article 6 of the Civil Code provided that intern ational agreements ratified by the Kyrgyz Republic
were to take precedence over conflicting provisions in civil legislation.  The Kyrgyz Republic Law
"On Government" of 25 March 1997 No. 17 set out the functions and authority of the central
government and provides in Article 20 and 21 that the Government shall direct the implementation of
all laws and decrees of the Kyrgyz Republic.  The Kyrgyz Republic Law "On local self-government
and local state administrations in the Kyrgyz Republic" of 19 April 1991 N-437-XII set out the
powers of the local governments.  These powers were  subordinate to those of the national government
and did not entail authority concerning trade policy, which is the sole purview of the central
authorities.WT/ACC/SPEC/KGZ/9
Page 19
24. The representative of the Kyrgyz Republic stated that the Parliament exercised legislative
power was implemented by the Parliament which consisted of two chambers:  the Legislative
Assembly and the Assembly of People’s Representatives.  Judicial authority was exclusivelyexercised by the Courts.  The Court system cons isted of a commercial division and an ordinary
division.  Generally, the commercial division dealt with business and commercial disputes betweenlegal entities, whereas the ordinary division had exclusive jurisdiction over all other types of disputes,including civil, criminal and administrative law matters, as well as commercial disputes where at leastone of the litigants was an individual or a collective farm.  Both Court systems were divided into tiers.The commercial division had two tiers.  Seven regional commercial Courts of general primaryjurisdiction (one for the city of Bishkek and one for each of the six oblasts) constituted the lower tier.The Supreme Commercial Court constituted the upper tier.  It had appellate jurisdiction over thedecisions of  the regional commercial Courts, and primary jurisdiction over disputes involving any"non-normative" aspect of an act of any governme ntal body, institution or official.  The ordinary
Court system was divided into three tiers.  The lower tier was composed of district Courts.  Themiddle tier was composed of seven regional Courts (one for the city of Bishkek and one for each ofthe six oblasts), which had initial appellate jurisdiction over the decisions of the district Courts.  TheSupreme Court alone had final appellate jurisdiction over the decisions of the regional Courts.  Byvirtue of the Constitution judges had immunity when acting in their official capacity.  Any member ofthe three high Courts (the Constitutional Cour t, the Supreme Court and the Supreme Commercial
Court) could be removed from his/her post upon a formal presentation to the Parliament by thePresident.  Lower Court judges could be removed if they failed  a qualification test.  
Agency actions
affecting trade were subject to administrative and appellate review.  Article 2(3) of the Civil Code
provided for the right to appeal an administrative decision in court.  Specifically, Articles 417 to 428
of the Customs Code provided for the right to appeal decisions of the customs bodies.  Article 57 of
the Tax Code provided for administrative appeals of decisions of an official of the Tax Service.
Article 58 provided for appellate review of any final decision of the Tax Service.  Article 18 of the
Law on Licensing provided for the right to appeal is sues relating to the refusal in the issue of a
license.
- Authority of sub-central governments
25. The representative of the Kyrgyz Republic stated that the Kyrgyz Republic was divided into
seven regional executive administrations, under the direct supervision and control of the Cabinet ofMinisters.  Within each  regional executive administration were a number of departments havingregional competence over certain specified matters, e.g., a Department of Agriculture, a Departmentof Economy, which reported both to the regional executive administration and to its correspondingWT/ACC/SPEC/KGZ/9
Page 20
national Ministry.  Because the regional executive administrations were under the control and
supervision of the Cabinet of Ministers and each national Ministry, local governmental policyaffecting trade in goods and services was  almost
 exclusively determined by the central Government.
Governors headed the oblast regional executive administrations, and were appointed by the Presidentwith the consent of the corresponding kenesh.  At the lowest level of government were the rayon(district) executive administrations.  The President, with the consent of the kenesh of the rayon,appointed the head of each rayon administration after considering the recommendation of theconcerned governor or mayor.  The President could also remove the head of the local rayonadministration after taking into account the recommendation of the concerned governor or mayor.  Inaddition to the regional executive administrations, Bishkek and the oblasts each had a locally electedunicameral legislature called a kenesh.  Each regional kenesh was responsible for legislation dealingwith regional social and economic matters.  Each kenesh must also approve the budget prepared by itscorresponding regional executive administration.  If a kenesh passed a piece of legislation on a matterwithin its competence, it automatically became law.  Each rayon had a local kenesh composed of15-25 elected representatives, the primary responsibility of which was to adopt legislation dealingwith a small range of local matters.
26. In response to requests from members of the Working Party, the representative of the Kyrgyz
Republic stated that the Kyrgyz Republic would provide a right of appeal for foreign and domestic
importers and exporters of official rulings affecting trade ;  that  central authorities would be solely
responsible for establishing foreign trade policy; and that the central Government would ensure
observance of WTO obligations by sub-central Gove rnments.  The Working Party took note of these
commitments.
V. POLICIES AFFECTING TRADE IN GOODS
- Registration
27. The representative of the Kyrgyz Republic stated that all natural and legal persons engaging
in any type of economic activity in the Kyrgyz Repub lic were required to be registered. He noted that
the Kyrgyz Republic had no special registration re quirements for persons engaging in importing or
exporting.  There were no restrictions, such as capital or nationality requirements, on persons wishingto engage in foreign trade.WT/ACC/SPEC/KGZ/9
Page 21
- Customs tariff
- Ordinary customs duties
28. The Kyrgyz Republic engaged in market access negotiations on goods.  The schedule
reflecting the results of those negotiations is reproduced in Part I of the Annex to the draft Protocol ofAccession.
29. In response to requests for information, the representative of the Kyrgyz Republic stated that
the Customs Tariff of the Kyrgyz Republic was contained in the Customs Tariff Law.  The temporarytariff had been a flat 10 per cent tariff on all imported goods, except those for which an explicitexemption had been created by law.  No MFN duty rates were provided for under this temporary tariffregime.  The Cabinet of Ministers had introduced a new tariff schedule establishing varying general
rates of duty .  Under the temporary flat 10 per cent regime, the average weighted level  the average
trade-weighted level of import duties (after adjust ing for exempted items and items qualifying for the
Kyrgyz Republic’s preference scheme) was 8.4 per cent in 1995.  The import nomenclature was based
on the Commodity List of Foreign Economic Activity, and was identical to that of the Russian
Federation, which itself was generally patterned after the International Harmonized System developed
by the World Customs Organization  In 1997, the Kyrgyz Republic adopted HS 96 as its tariff
nomenclature.  Tariff descriptions were coded at the 6 and 9-digit levels.  In response to furtherquestions, he noted that the Kyrgyz Republic planned to join the World Customs Organization.
30. He further added that under the Kyrgyz Republic’s System of Preferences, goods originating
in developing countries were subject to a duty rate which was 50 per cent of the MFN rate (eventhough no special
 MFN rates had yet been established) while goods produced in and imported from
least developed countries were free of duty.  The system of preferences was modified from time totime.
31. In response to questions concerning the imposition of seasonal duties, the representative of
the Kyrgyz Republic stated that Article 17 of the Customs Tariff Law permitted the Cabinet ofMinisters of the Kyrgyz Republic to issue Rulings which established seasonal customs duties forcertain types of goods and their effective terms.  No implementing regulations had been enacted, andso far no seasonal duties had been imposed.  
The Customs Tariff law of 15 December 1992 was
scheduled to be cancelled  in 1998.   He provided the Working Party with copies of Amendments to
the Law on Normative Acts and Amendments to the Law on Publications of Laws.WT/ACC/SPEC/KGZ/9
Page 22
32. The representative of the Kyrgyz Republic stated that if imposed, seasonal duties would not
exceed the bound level of tariffs and would be applied in a manner consistent with the requirements ofthe WTO Agreement.  Also, adequate notice will be provided before imposing seasonal duties.  TheWorking Party took note of these commitments.
- Tariff quotas, tariff exemptions
33. In response to questions from some members of the Working Party, the representative of the
Kyrgyz Republic stated that any 
business enterprise operating in the Kyrgyz Republic, (including
wholly or partially foreign owned enterprises) could apply to the Ministry of Industry and Foreign
Trade to receive tariff exemptions for imports of certain items used in the production of finalproducts.  Applications for tariff exemptions were not automatically approved by the Ministry ofIndustry and Foreign Trade.  The criteria applied in consideration of an application were whether theitems will be used in the production of final products. Import substitution or export performance werenot factors in consideration of the requests.  The exemptions were granted to the requesting enterprisealone.  Since 30 March 1994, 436 businesses had enjoyed the benefits of the duty exemptions.
34. Some members noted that exemptions were granted to some products originating in CIS
countries.  They recalled that Article I of the GATT 1994 required application of the MFN principle,whilst Article XXIV permitted exceptions to Article I in the case of regional integration initiativesprovided that the conditions of Article XXIV and the Understanding were complied with.  They askedif the Kyrgyz Republic was prepared to enter a commitment that tariff exemptions would only be
given to third countries in the context of a WTO compatible Free Trade Agreement or Customs UnionAgreement.
35. The representative of the Kyrgyz Republic stated that upon accession to the WTO, tariff
exemptions would only be given to third countries in the context of a WTO compatible Free TradeAgreement or Customs Union Agreement.  The Working Party took note of this commitment.
- Other duties and charges
36. The representative of the Kyrgyz Republic stated that the Kyrgyz Republic would bind other
duties and  charges  within the meaning of GATT Article II at zero in its Schedule of Concessions on
Goods in Part I of the Annex to the draft Protocol of Accession.  The Working Party took note of this
commitment.WT/ACC/SPEC/KGZ/9
Page 23
- Fees for services rendered
37. Some members requested information on any fees applied to imported products.  In response,
the representative of the Kyrgyz Republic stated that an ad valorem  customs processing fee was
levied on imported goods.  In response, some members of the Working Party stated that the fee didnot appear to be consistent with Article VIII of GATT 1994, which required that fees and charges
related to importation be limited to the cost of services rendered.  The representative of theKyrgyz Republic stated that the government wa s considering how to alter the current customs
clearance fee from an ad valorem  fee into a fee that recovered the actual cost of the service provided.
The Kyrgyz Republic was attempting to calculate the actual cost of the services rendered inconnection with importation.  The representative of the Kyrgyz Republic added that theKyrgyz Republic would ensure that all fees and charges related to importation reflected the cost ofservices rendered.
38. Following further requests for information, the representative of the Kyrgyz Republic stated
that the Kyrgyz Republic proposed to maintain an ad valorem  fee of 0.15 per cent with a minimum of
som 180 (approximately US$10) and a maximum of som 550 (approximately US$31) .  The fee
structure would be reviewed every two years .  the representative of the Kyrgyz Republic noted that
the Kyrgyz Republic proposed to use the ad valorem  rate of 0.15 per cent with minimum and
maximum limits.  The limits would be determined on an annual basis to account for inflation .  The
existing rate of 0.15 per cent would be continued, even though the expense/revenue ratio was3.6 per cent for fiscal year 1996 and was estimated at 2.4 per cent for fiscal year 1997.  The minimumand maximum fees were determined using a methodology that was based on internationallyrecognized cost accounting principles and practices.  The minimum fee consisted of two components:direct costs and indirect costs.  Direct costs were those that were exclusively incurred to processimport declaration, and consisted of employee costs to process an import declaration.  The time spentby an employee to process various categories of import goods was analyzed and the average employeecost to process an import declaration was computed.  Indirect costs were those that were incurred forvarious customs activities including import processing.  These costs, also called overhead costs, wereallocated based on approximate total time spent by customs employees.  On average, Kyrgyz Customsemployees spent about 50 per cent of their time processing import declarations.  As a result,50 per cent of the total overhead costs were allocated to import processing.  The maximum fee wasbased on the total costs of Kyrgyz Customs.  It was estimated that approximately 50 per cent ofCustoms resources were consumed to process import declarations. As a result, about 50 per cent oftotal costs were allocated to import processing.  The Kyrgyz Republic would create a revolving fundto finance import processing activities. All revenues collected from import processing fee would becredited to this fund. The proceeds from the fund would be used only to meet the costs of importprocessing.WT/ACC/SPEC/KGZ/9
Page 24
39. Following further requests for information on the customs processing fee, the representative
of the Kyrgyz Republic stated would bring its customs processing fee into conformity with
Article VIII of the GATT 1994 upon accession to the WTO . that in pursuance of Article VIII of the
GATT 1994, the new Customs Code of the Kyrgyz Republic put into effect on 1 October 1997,
provided that customs fees collected for customs clearance must not exceed the approximate cost of
the provided services.
40. The representative of the Kyrgyz Republic noted that a fee was also charged for the issue of a
Phytosanitary Certificate.  The Phytosanitary Certificate was issued by the Ministry of Agriculture.
He stated that the current cost of issuing a Phytosanitary Certificate (minimum fee: som 70; maximumfee: som 223) exceeded the fee charged (minimum fee: som 36; maximum fee: som 265) for such acertificate.  Accordingly, the Kyrgyz Republic considered that the current fee structure was in fullcompliance with Article VIII.
41. He further noted that the Kyrgyz Republic also maintained a fee for issue of a Veterinary
Certificate.  The current costs of issuing a Veterinary Certificate (minimum fee: som 250; maximumfee: som 3,272) exceeded the fee charged (minimum fee: 30 Som; maximum fee: som 500) for such acertificate.  Again, the Kyrgyz Republic consider ed that the current fee structure was in full
compliance with Article VIII.
42. The representative of the Kyrgyz Republic also noted that an import/export License Fee was
also charged.  The current fee was som 900
 1000 (US$52.94  56).  Analysis had revealed that the
current fee reflected the cost of services rendered.  The representative of the Kyrgyz Republic stated
that upon accession to the WTO, the Government of the Kyrgyz Republic would adopt, through
implementing regulations, customs processing fees with minimum and maximum amounts according
to the methodology described in paragraph 35 above  All  fees applied to imports would be operated in
conformity with the provisions of Article VIII of the GATT 1994 from the date of accession ..  [The
Working Party took note of this commitment.]
- Tariff rate quotas
43. In response to questions from some members of the Working Party, the representative of the
Kyrgyz Republic stated that the Kyrgyz Republic maintained no tariff quotas, and did not intend tointroduce import quotas in the near future.  
The Kyrgyz Republic did not foresee balance of payment
problems in the next 2 years provided that the current economic situation continued to evolve
favourably.WT/ACC/SPEC/KGZ/9
Page 25
44. The representative of the Kyrgyz Republic stated that if the Kyrgyz Republic introduced
import quotas as an emergency measure in the future they would be in conformity with Article XIX of
GATT 1994 ;  and  if import quotas were introduced for balance of payment purposes they would be in
conformity with Articles XII and XVII  Article XVIII of the GATT 1994 and the WTO Agreement.
- Application of internal taxes on imports
- Value Added Tax
45. In response to requests for information, the representative of the Kyrgyz Republic stated that
a 20 per cent VAT was imposed on all sales of goods within the Kyrgyz Republic, as well as on goodsimported from non-CIS countries. The VAT was im posed on non-CIS imports at the time of
importation, and was collected by the customs authorities. The base for assessment of the VAT wasthe sum of (i) the customs value of the goods plus (ii) any and all duties, taxes or other charges due
and payable at the time of importation  transportation, insurance and other costs related to the
importation of goods.  With respect to goods imported from CIS countries, no VAT was collecteduntil the good was sold within the Kyrgyz Republic;  and the seller was permitted to claim a VATcredit for the amount of VAT paid in the exporting CIS country.  This VAT-credit mechanism forimports from CIS countries was in effect in a ll CIS countries.  In addition, VAT exemptions were
granted for (i) goods imported to render assistance in connection with natural disasters, armedconflicts, or accidents;  (ii) goods imported as humanitarian assistance as specified under an order ofthe Cabinet of Ministers;  (iii) imported goods which the importer had previously exported;(iv) goods temporarily imported under bond, provided such goods were exported in an unalteredcondition within twelve months;  (v) goods mistakenly imported into the Kyrgyz Republic and beingreturned to the original exporter;  (vi) goods in  transit through the Kyrgyz Republic;  (vii) imported
goods intended for official use by foreign embassies or similar representative offices of foreigngovernments and imported goods intended for the personal use of the diplomatic, administrative ortechnical personnel of such embassies or representative offices or the family members of suchpersonnel; (viii) pharmaceuticals and medicinal supplies specified by Cabinet of Ministers;(ix) educational supplies and school equipment;  (x) baby food;  (xi) capital goods imported by a legalentity or entrepreneur for use in its/his productive economic activity;  and (xii) other imported goodsspecified as  VAT-exempt by the State Customs Inspectorate (SCI)
 pursuant to the customs legislation
of the Kyrgyz Republic.WT/ACC/SPEC/KGZ/9
Page 26
46. Some members of the Working Party stated that Article XXIV of the GATT 1994 does not
exempt regional integration agreements from application of the MFN principle with regard to internaltaxation.  They requested an indication when the Kyrgyz Republic would bring its system of VATapplication into line with Article I of the GATT 1994.  In response the representative of theKyrgyz Republic stated that the Kyrgyz Republic understood the need to bring its VAT system intoconformity with accepted world practice, i.e. applying the VAT to all goods sold or imported into theKyrgyz Republic regardless of their country of origin, and exempting exported goods regardless oftheir country of destination.  However, he noted that because it was necessary to obtain the agreementof other CIS countries to do so it was not possible to give a date for elimination of the practice.  Abilateral agreement had been reached with Kazakstan, with the result that Kazakstan was treated as a"non-CIS" country with respect to the application of VAT.  In addition, a similar agreement has been
initialled with Ukraine and a  first round of negotiations has been concluded with Uzbekistan .
Moreover, analogous agreements have been signed with Ukraine and Uzbekistan, and initiated with
Georgia.
47. In response to further questions, the representative of the Kyrgyz Republic stated that as of
14 January 1997, VAT was assessed on the cust oms value of the imported goods from all countries
including CIS countries.
48. The representative of the Kyrgyz Republic stated that the Kyrgyz Republic would ensure that
the VAT system was in full conformity with WTO most-favoured-nation requirements from the timeof WTO accession.  The Law on Making Amendments and Supplements to the Tax Code of theKyrgyz Republic would be adopted in May 1998.  
The VAT system would be in full conformity with
Article III as well as Article I of the GATT 1994 upon accession .  The Working Party took note of
this commitment.
- Excise Taxes
49. In response to requests for information on the excise taxes applied in the Kyrgyz Republic,
the representative of the Kyrgyz Republic stated that excise taxes were imposed on certain goodswhether produced in or imported into the Kyrgyz Republic.  He further added that the new Tax Codespecified that the following goods were subject to excise taxes:  (i) alcoholic beverages, drinks, spiritsand liquors;  (ii) items destined for wine production;  (iii) tobacco and tobacco products;  (iv) gold,silver and platinum jewellery;  (v) processed and non-processed fur hides (except for the hides ofmoles, rabbits, dogs, deer, or sheep);  (vi) clothing made of natural fur (except for apparel made of thehides of moles, rabbits, dogs, deer, or sheep);  (vii ) coats, short coats, jackets and cloaks trimmed with
fur (except for the fur of moles, rabbits, dogs, deer or sheep);  (viii) clothes made from natural leather;(ix) crystal items, including lighting appliances made of crystal;  and (x) firearms, including gasWT/ACC/SPEC/KGZ/9
Page 27
weapons (other than those procured by State authorities).  The following imported goods were
exempted from excise tax:  (i) goods needed to operate or repair vehicles being used for theinternational conveyance of passengers, baggage or cargo;  (ii) goods which were damaged andthereby made useless prior to their entry into the Kyrgyz Republic;  (iii) goods imported ashumanitarian aid;  (iv) goods imported for charitable or aid purposes, including technical assistancesupplied by foreign States and international organizations;  (v) goods confiscated by or escheated tothe State;  (vi) goods in transit through the Kyrgyz Republic; and (vii) goods intended for official useby foreign embassies or similar representative offices of foreign governments and imported goodsintended for the personal use of the diplomatic, administrative or technical personnel of suchembassies or representative offices or the family members of such personnel.
50. The representative of the Kyrgyz Republic added that some excise taxes were assessed on an
ad valorem  basis, while others were assessed on a quantity basis.  Domestic and imported goods were
subject to differing excise tax rates.  Imported goods subject to excise tax were exempted fromcustoms duties.  Some members also requested information on the methodology used to calculateexcise rates for domestic,  CIS and other imported products.  In response, the representative of theKyrgyz Republic stated that the Cabinet of Ministers Resolution No. 71 of 7 February 
1997
Resolution  No. 557 of 26 September 1997, and Resolution No. 702 of 4 December 1997 established
the methodology to be used for calculating excise taxes.  This methodology was the same for goodsproduced in the Kyrgyz Republic and imported from other countries including CIS countries.
In cases where the excise tax rate was established in proportion of the wholesale price of
goods:
H 
=       C + A:100% ;H= C x A:100%
whereH = the amount of excise taxC = the wholesale price of goods (or their customs value at the point of import)A = the rate of excise tax in per cent.
In cases where the excise tax rate was established in US$ to the physical volume of goods:
H = O x T x KwhereH = the amount of excise taxO = the physical volume of manufactured or imported goods (kilogram, litre, units, tons)T = the rate of excise tax in US$ per unitK = the US$ exchange rate to the Kyrgyz Som.WT/ACC/SPEC/KGZ/9
Page 28
The Som was the only currency that could be used for payment of excise taxes for both imports and
domestic products.  Conversion into Soms was based on the official exchange rate of the NationalBank of the Kyrgyz Republic.
51. The representative of the Kyrgyz Republic further added that the new Tax Code, which came
into effect on 1 July 1996, substantially changed the list of goods subject to excise tax.  However, norates had been set for the items newly subject to excise tax.  In the interim, customs duties applicableto such items had temporarily been increased.  He stated that the current system of excise taxationtreated imported and domestic products differently.  In response, some members of the Working Partystated that although they welcomed the Kyrgyz Re public's recognition that the current excise tax
system treated domestic and imported products differently, which was inconsistent with Article III ofthe GATT 1994, they asked that the system be brought into conformity with that provision andrequested a progress report on the reform of the system.  In response, the representative of theKyrgyz Republic stated that following a review of excise tax rates, the Legislative Assembly had inDecember 1996 approved the following table of excise tax rates.
Table 3:  New Excise Tax Regime
Goods Domestic Rates Imported Rates Codes
Ethyl alcohol and purified ethyl alcohol
produced from raw materials (except those
imported by special consumers withinstipulated limits)$1.4/litre $1.4/litre 2207
Vodka $0.90/litre $0.90/litre 220890110-220890390
Liqueurs and vodka products $0.90/litre $0.90/litre 220810,
220830,220890510-
220890790,
220890910,220890990
Alcoholized beverages, juice and balsam* $0.90/litre $0.90/litre 220840,
220850
Grape wineother wines$0.35/litre
$0.29/litre
Wine $0.35/litre 220421-220429,
2205,
2206
Cognac $0.60/litre $0.80/litre 220820100
Sparkling wines $0.40/litre $0.45/litre 220410WT/ACC/SPEC/KGZ/9
Page 29
Goods Domestic Rates Imported Rates Codes
Beer:
- packaged
- unpackaged$0.80/litre
$0.05/litre$0.25/litre 2203
Raw materials for wine production $0.15/litre $0.20/litre 220430
Tobacco products**
- filter cigarettes- unfiltered cigarettes$1.5/1000 each
$0.75/1000
each$5/1000 each
$2/1000 each2402
2402
Other tobacco-containing items, includingfermented tobacco12% 240110,
240120, 2403
Gold, platinum or silver jewellery 20% 30% 7113-7118
Processed and raw fur hides (other thanmole, rabbit, deer, dog and sheep skin)0% 10% 4110,
4103-4104,4106-4109
Wearing apparel made of natural fur,
including coats, short-coats, jackets, capes,
stoles, scarves, headgear, collars, fur coats
and fur pieces (other than apparel made of
hides of mode, rabbit, dog, deer or sheepskin)0% 10% 4303
Coats, short-coats, jackets and capes
trimmed with fur (other than mole, rabbit,
dog, deer or sheep skin)0% 10% 4303
Clothing made of natural leather 0% 10% 4203
Crystalware 0% 30% 701321,
701331,
701391
Firearms and gas weapons (other than thoseacquired for the needs of State agencies)10% 20% 9301-9393,
9305-9306
Oil products:- gasoline, soft and medium distillates$45/ton $45/ton 2707,
271000330,
271000350,271000390,
271000110,
271000150,
271000210,
271000250,271000410,
271000450
Aircraft fuel $45/ton 271000510-271000590
Diesel fuel $0/ton $45/ton 271000610,
271000650,
271000690WT/ACC/SPEC/KGZ/9
Page 30
Goods Domestic Rates Imported Rates Codes
Black oil $0/ton $0/ton 271000710,
271000750,
27100790
Other $0/ton $0/ton 271000550,
271000910,
271000930,
271000990
Coffee and cocoa products 10% 0901, 1801, 1803-1805
Carpets and rugs (except floor coverings) 0% 35% 57
* Excise tax rates were calculated based on the content of ethyl alcohol in such items, the base
being a beverage containing 45 per cent alcohol.
** Pursuant to Resolution No. 430 of 23 July 1997 of the Kyrgyz Republic for imported tobacco
products (topped cigarettes and without tops) with excise stamps, the rate of excise tax is
$1.5 per 1000 cigarettes, pursuant to Resolution No. 430 of 23 July 1997 of the
Kyrgyz Republic.
52. Some members of the Working Party stated that the proposed new rates of excise taxation did
not appear to resolve the problems of inconsistent rates of taxation, in particular higher rates oftaxation for certain imported products.  They requested that the system be brought into conformitywith Article III of the GATT 1994, and that imported products be
 not be subject to tax rates in excess
of those applied to domestic products.  In response, the representative of the Kyrgyz Republic statedthat the excise tax system prevailing in the Kyr gyz Republic was already in full conformity with
WTO most-favoured-nation requirements.  He noted that no imported goods to the Kyrgyz Republic
were subject to both excise taxes and import duties at the same time, although it was not contrary tointernational practices or WTO rules to have apply both excise taxes and import duties to an importedgood.
53. The representative of the Kyrgyz Republic stated that upon accession to the WTO, one equal
excise tax regime would be applied to both imported and domestically produced goods.  
The Tax
Code would be amended to ensure that excise taxes would apply equally to foreign and domestic
products.  The Law On Making Amendments and Supplements to the Tax Code of the
Kyrgyz Republic would be enacted by the end of May 1998.  [The Working Party took note of thiscommitment.]WT/ACC/SPEC/KGZ/9
Page 31
- Quantitative import restriction
54. In response to questions, the representative of the Kyrgyz Republic stated that the
Kyrgyz Republic maintained no quantitative import restrictions and it did not plan to introduce importquotas except in those circumstances permitted by the WTO Agreements.  Currently, the only importrestrictions applied in the Kyrgyz Republic applied to military arms and goods;  explosives;  nuclearmaterials and technology for military use;  virulent poisons;  and narcotics (including those used inpharmaceuticals) and psychotropic substances.  The system applied to goods originating in andcoming from all countries, including other CIS countries.
- Import licensing procedures
55. In response to requests for information, the representative of the Kyrgyz Republic stated that
previously, import licences had been required for five broad categories of goods.   A Draft Law
currently being finalised specified in greater detail  the goods subject to licensing, and broke down the
covered goods into 19 sub-items.  The representative of the Kyrgyz Republic provided the WorkingParty, with the following table listing the covered goods:
Table 4:  List of Specific Goods Imported under Licenses
contained in the Draft Resolution on Import/Export Licensing
Goods HS Code Rationale/Justification
1. Ciphering devices
(including ciphering
equipment, spare partsfor the  ciphering
equipment, ciphering
programs), normative
and technical documents
to the ciphering devices(including designing and
exploiting)8471 (ciphering equipment only),
847330000 (for the ciphering
equipment only), 854380900(ciphering equipment only),
854390900 (ciphering equipment
only)To protect this Republic’s
national security
2. Arms and weapons,
specific parts for their
production, works and
services in the area ofmilitary - technological
cooperationby the list of the Ministry of
Defense of the Kyrgyz RepublicTo protect this Republic’s
national securityWT/ACC/SPEC/KGZ/9
Page 32
Goods HS Code Rationale/Justification
3. Protection devices from
the battle poisoning
substances, parts andaccessories thereofby the list of the Ministry of
Defense of the Kyrgyz RepublicTo protect this Republic’s
national security
4. Military uniform,
clothing and attributesby the list of the Ministry of
Defense of the Kyrgyz RepublicTo protect this Republic’s
national security
5. Normative and technical
documents to the military
products (construction
and exploitation)by the list of the Ministry of
Defense of the Kyrgyz RepublicTo protect this Republic’s
national security
6.  Gun powder and
explosives, explosive
devices and pyrotechnics3601 (except for the hunting
powder), 3602, 3603, 3604To protect this Republic’s
national security
7. Nuclear materials,
technologies, equipment
and plants, special non -
nuclear materials,sources for the
radioactive radiation,
including radioactivewasteby the list approved by the
President of the Kyrgyz Republic
(Resolution No. 55, 2 June 1996,
the Government of the KyrgyzRepublic)To maintain the Republic’s
national security, as well as to
adhere to international
commitments related tonon-proliferation of mass
destruction and production
technologies thereof
8. Materials, equipment and
technologies which areintended for peaceful
purposes but can not be
used while creating
weapons for mass
exterminationIn accordance with the list passed
by the President of the KyrgyzRepublic (Resolution No. 55,
2 June 1996, the Government of
the Kyrgyz Republic)To maintain the Republic’s
national security, as well as toadhere to international
commitments related to
non-proliferation of mass
destruction and production
technologies thereof -
9. Certain types of raw
materials, equipment,
technologies andscientific information
which can be applied
while creating weaponsand military techniquesby the list approved by the
President of the Kyrgyz Republic
(Resolution  No. 55, 2 June 1996,the Government of the KyrgyzRepublic)To maintain the Republic’s
national security, as well as to
adhere to internationalcommitments related to
non-proliferation of mass
destruction and productiontechnologies thereof
10. Precious metals, alloys,
goods made from them,metals plated   with
precious metals and
goods made from them;
ores; concentrates; scrap
and waste2616 (ores and concentrates),
2843 (metals, junctions,amalgams), 300640000 (from
precious metals only), 7106-7112,
711311000, 711319000,
711411000, 711419000,
711510100, 711590100,711590900, 7118 (from precious
metals only), 8544 (only with
conductors from precious metals),960810300, 960839100To protect the financial position
and the balance of payment ofthis RepublicWT/ACC/SPEC/KGZ/9
Page 33
Goods HS Code Rationale/Justification
11. Precious natural stones
and goods from them,
powder and recuperateof precious naturalstones, goods from them.7101, 7102, 7103 (precious stones
only), 7105 (from precious stones
only), 7116 (from precious stonesonly).To protect the financial position
and the balance of payment of
this Republic
12. Narcotics and
psychotropic drugs,
virulent and stupefying
concoctionsby the list of the State
Commission for Drug Control
under the Government of the
Kyrgyz RepublicTo protect the population’s life
and welfare
13. Virulent poisons by the list approved by the
Government of the Kyrgyz
Republic (Resolution of the
Government of the Kyrgyz
Republic of 6 February 1996, No. 
55)To protect the population’s life
and welfare, as well as flora and
fauna in general
14. Hazardous wastes by the list of the Basil Convention
on the Control over Trans-border
Transportation of hazardous cargo
of 22 March  1989, approved by
Resolution of the Parliament of
the Kyrgyz Republic of18 January 1996, No. 304-1)To protect the population’s life
and welfare, as well as flora and
fauna in general
15. Chemical means of
protection of plants3808 (preparations for the plant
protection only)To protect the population’s life
and welfare, as well as flora and
fauna in general
16 Pharmaceuticals by the list of the Ministry of
Health of the Kyrgyz RepublicTo protect the population’s life
and health
17. Service and civil guns by the list of the Ministry of
Internal Affairs of the KyrgyzRepublicTo maintain public order
18. Tobacco by the list of "Kyrgyztamekisi" To protect the financial position
and maintain the balance ofpayment of this Republic
19. Spirits and alcoholic
productsby the list of the State Joint Stock
Company "Kyrgyzalco"To protect the financial position
and maintain the balance of
payment of this Republic
The import licensing system was required to protect public health and safety, the environment,
consumer welfare and national security.  The licensing procedure was not intended to restrict thequantity or value of imported goods.  Imports subject to licensing amounted to about 2 per cent of thevalue of the Kyrgyz Republic’s total imports.  Goods  subject to import licensing were designated by
the Cabinet of Ministers upon recommendation by interested ministries and government bodies andwere not subject to administrative discretion.WT/ACC/SPEC/KGZ/9
Page 34
56. The representative of the Kyrgyz Republic further added that to obtain a licence for import
(and also for the export) of alcohol and alcoholic products (except beer, for which there were noimport or export licensing requirements) and importer was required to submit an application for alicence together with a range of supporting documentation, including a (i) hygiene certificate obtainedfrom the Ministry of Health and (ii) a certificate of conformity from the State Inspectorate onStandardization and Metrology or other accredited private or State entities.  There were no quotasconnected with the import and export of alcohol or alcoholic products.  A licence was required to beissued within ten days of application.  A licence could be obtained after goods had arrived at theborder.  For imports of alcoholic beverages,  Kyrg yzalco was the sole agency with responsibility for
determination of the licence application.  Licenses were required to be granted unless the applicationfor a licence was not complete or the information contained therein was not reliable.  Article 8 of theLaw on Licensing provided that foreign legal entities or individuals, as well as individuals withoutcitizenship were entitled to receive licences on the same conditions and pursuant to the sameprocedures as legal entities and individuals of the Kyrgyz Republic.  Whenever a licence applicationwas refused, reasons for the refusal were required to be provided to the applicant in writing.  In the
case of a refusal, applicants had a  right of appeal to a Court, per Article 18 of the Law on Licensingof 3 March 1997.
57. In response to further questions concerning the procedure for granting of an import licence, he
added that none of the items subject to import licensing were restricted as to the quantity or value ofthose imports.  Licence applications were normally approved in about 1 week.  In urgent cases anapplication could be approved in a shorter time.  Applications for an import licence could only berefused in an application did not meet the stipulated criteria.  The reasons for refusal were required tobe provided in writing to the applicant.  A decisi on to refuse to grant a licence could be appealed to
the Ministry which refused the application and furt her appealed to an independent Court.   All
persons, firms and institutions were eligible to apply for an import licence under the system of the
Kyrgyz Republic.  There was no system of registration of persons or firms permitted to engage inimportation.  The licence was valid for up to six months, or one year in the case of importers havinglong-term relationships with foreign exporters.  The licence could be renewed for a further period ofsix months.  There was no penalty for non-utilization of the licence or a portion of a licence.  Thelicence was not transferable.    A fee of 
Som 750 (US$65) was charged for an import licence.    The
current fee to obtain an import license was 1000 Som (approximately US$ 56.00).  He providedmembers of the Working Party with a detailed analysis of the cost of provision of the servicerecovered by the fee in Attachment A.IV to document WT/ACC/KGZ/13.  In his view that fee
reflected the cost of services rendered.
58. Some members of the Working Party asked whether the import licensing would be brought
into conformity with the Agreement on Import Lice nsing.  In response, the representative of theWT/ACC/SPEC/KGZ/9
Page 35
Kyrgyz Republic stated that the Government of the Kyrgyz Republic was in the process of drafting
legislation to establish new import licensing procedures in conformity with WTO requirements,including the Agreement on Import Licensing.  
A regulation on Import/Export Licensing was being
finalized and would be provided to the Working Party.  The regulation would be enacted by May
1998.
59. Some members of the Working Party also requested information on whether the charge of
Som 750 (US$65) for an import license was compatible with Article VIII(a) of the GATT 1994,
particularly the requirement that a charge be "limited to the approximate cost of service rendered" (i.e.
the work involved).  In response, the representative of the Kyrgyz Republic stated that the charge of
Som 750 did not represent the cost of provision on an import licence, and therefore was incompatible
with Article VIII of  the GATT 1994.
60. In response to further questions, the representative of the Kyrgyz Republic added that for
health protection and sanitary reasons, there were plans to introduce licence requirements for theimport of tobacco products in the future.  
He added that the import licence fee would be brought into
conformity with the requirements of Article VIII and the Agreement on Import Licensing from the
date of accession.  The March 1997 Law on Licensing would be applied in conformity with Articles
XI and XIX of the GATT 1994, and the Agreements on Licensing and Safeguards.  He added that the
Law on Making Amendments to the Law of the Kyrgyz Republic on Licensing would be adopted inNovember 1998.  [
The Working Party took note of these commitments.]
- Customs valuation
61. In response to requests for information concerning the customs valuation system, the
representative of the Kyrgyz Republic stated that the system was established by the Customs Tariff
Law and was based primarily on purchase price.  In the absence of reliable information on purchase
price, the Customs Tariff Law provided certain alternative methods of valuation.  A Proposed
Customs Code was under consideration by the legislature.  The Proposed Customs Tariff Law and the
Proposed Customs Code both contained provisions pertaining to valuation.  Under both existing and
proposed law, customs value was used for compiling foreign trade statistics, levying ad valorem  rates
of duty, customs fees, the VAT and excise taxes.  The proposed laws were consistent with the
requirements of the WTO Agreement.   Customs Code put into effect on 1 October 1997 provides for
six methods to determine the customs value according to the WTO Customs Valuation Agreement.He further added that the Kyrgyz Republic did not have any import reference prices in place and anysuch measures would not be reintroduced after accession, except in accordance with WTOAgreements.WT/ACC/SPEC/KGZ/9
Page 36
62. The representative of the Kyrgyz Republic also stated that the customs valuation system of
the Kyrgyz Republic would be brought into conformity with the requirements of the WTO Agreement
on Implementation of Article VII, from the date of the Kyrgyz Republic's accession to the WTO. In
this connection, the representative of the Kyrgyz Republic stated that th e Law On Making
Amendments and Supplements to the Customs Code of the Kyrgyz Republic would be adopted in
May 1998.  the rules to determine the customs value contained in the Customs Code which came into
force on 1 October 1997 were largely in compliance with the WTO requirements.  Amendments and
corrections would be made to the new Customs Code by the Law of the Kyrgyz Republic "On
Changes and Amendments to the Customs Code of the Kyrgyz Republic" which would be adopted in
May 1998, and would bring the Customs Code valuati on rules into full conformity with the WTO.
The Working Party took note of these commitments.
- Rules of origin
63. In response to questions from some members of the Working Party, the representative of the
Kyrgyz Republic stated that the Kyrgyz Republic had no country of origin marking requirement.  Acertificate of origin certified by an authorized governmental body in the country of origin wasrequired for all imported goods.  Pursuant to the Proposed Customs Code, origin was determined bymethods specified in the Kyoto Convention Annex.  Once the Proposed Customs Code was passed byParliament, the Kyrgyz Republic would require time to develop implementing regulations on thedetermination of origin. It was envisaged that the primary method used would be the tariff shiftmethod.  The Proposed Customs Code did not define th e list of operations that would be considered as
sufficient to confer origin.  No other specific implementing regulations or rules had been developed.He also added that the Kyrgyz Republic intended to adopt the rules of origin that were being
developed in the WTO.
64. In response to further requests for information on the customs origin provisions of the
Proposed
 Customs Code, the representative of the Kyrgyz Republic stated that Chapter 55 of the
Proposed  Customs Code provided for issuance of preliminary decisions on various issues including
the country of origin. Assessments remained effe ctive for three years.  Implementing instructions
describing the process in detail would be developed at a later stage.  Chapters 58, 59 and 60 of theProposed
 Customs Code provided that administrative actions taken by customs bodies could be
appealed.  The Proposed  Customs Code also provided that goods that are wholly produced in a
country are considered as originating in that country.  A list of wholly produced goods was adoptedfrom the Kyoto Convention Annex.  The Proposed
 Customs Code provided for three methods of
determining origin as specified in the Kyoto Convention Annex.  However, the tariff shift method ofWT/ACC/SPEC/KGZ/9
Page 37
determining origin was, at present, the only method in use.  There were no regulations implementing
the ad valorem  or specific manufacturing or processing methods.  The Kyrgyz Republic would adopt
the Harmonized Rules of Origin once finalized by the World Customs Organization.
- Pre-shipment inspection
65. In response to questions, the representative of the Kyrgyz Republic stated that the
Kyrgyz Republic had no plans to introduce any preshipment inspection requirements; however, ifsuch requirements were introduced, they would be consistent with the requirements of the Agreementon Preshipment Inspection.  The Working Party took note of this commitment.
- Anti-dumping, countervailing and safeguards
66. Some members of the Working Party expressed concern that both the current Customs Tariff
Law in force and the proposed law departed from WTO rules on imposition of anti-dumping duties inseveral respects.  These members requested that the legislation be amended so as to beWTO-consistent from the date of the Kyrgyz Republic's accession to the WTO.   In response, therepresentative of the Kyrgyz Republic stated that dumping, countervailing, and safeguard measureswould be governed by new laws currently bein g drafted in conformity with respective WTO
agreements.  Draft laws on dumping, countervailing, and safeguard 
measures were submitted in
October 1997 to the Working Party.  Currently, all three laws were awaiting final government
approval before submission to the Parliament.
67. Some members of the Working Party requested that the Government of the Kyrgyz Republic
undertake a commitment that any anti-dumping, count ervailing or safeguards measures would only be
taken pursuant to legislation in conformity with the WTO Agreement on Subsidies and CountervailingMeasures, the Agreement on Interpretation of Article VI of the GATT 1994, and the Agreement onSafeguards.
68. The representative of the Kyrgyz Republic stated that the Laws on Anti-dumping
, and on
Safeguards and on Subsidies and Countervailing Measures would be adopted in October 1998.  Any
legislation in place at the time of accession or impl emented in the future prov iding for the application
of measures taken for anti-dumping, countervailing duty, or safeguard purposes would conform to the
provisions of the WTO Agreements of Anti-dumping, on Subsidies and Countervailing Measures, and
on Safeguards. In the absence of such legislative authority in place at the time of accession, theWT/ACC/SPEC/KGZ/9
Page 38
Kyrgyz Republic would not apply measures for anti-dumping, countervailing duty, of safeguard
purposes until legislation in conformity with the provisions of these WTO Agreements had been
implemented.  The Working Party took note of these commitments.
- Export Regulation
- Customs tariffs, fees and charges and internal taxes applied to exports
69. In response to requests for information the representative of the Kyrgyz Republic stated that
there were no export duties;  although like all CIS countries - a VAT was charged on exports destinedfor other CIS countries. The importing CIS country was required to grant the person who first sold thegood a VAT credit in the amount of the VAT paid to the Kyrgyz Republic. No VAT was collected on
exports to non-CIS countries.   VAT does not apply on exports to non-CIS countries.
- Export restrictions
70. The representative of the Kyrgyz Republic stated that with the exception of quantitative
restrictions specified in an Agreement with the European Communities on Textiles, theKyrgyz Republic maintained no quantitative export restrictions, nor prohibitions on exports.
- Export licensing
71. The representative of the Kyrgyz Republic informed members of the Working Party that
export licences were required for the export of military arms and goods;  explosives;  nuclearmaterials and technology for military use;  virulent poisons;  narcotics (including those used inpharmaceuticals) and psychotropic substances;  works of art and antiquities having historical, culturalor scientific value; ferrous, precious and rare-earth metals extracted and produced in theKyrgyz Republic and their fragments;  and rare types of raw materials of vegetable or animal originhaving pharmacological applications.  Except for ferrous and non-ferrous metal fragments and waste,the licensing requirement was not intended to restrict the quantity or value of the exports of thesegoods, but rather to protect public health, consumer welfare, the environment, national patrimony andnational security.  He further noted that licensing was mandatory for textile exports to the EuropeanCommunities.
72. In response to requests for more information concerning the requirement to obtain a licence
for the exportation of ferrous, precious and rare-earth metals extracted and/or processed in theKyrgyz Republic, the representative of the Kyrgyz Republic stated that any manufacturing/miningWT/ACC/SPEC/KGZ/9
Page 39
entity or intermediary entity (regardless of form or ownership) was eligible to apply for such a
licence.  The licence application was required to be submitted to the Ministry of Industry and Trade.When applying for an export licence, an applicant must submit:  (i) an application on a standard form;(ii) a copy of the export contract;  (iii) a copy of the applicable bilateral agreement on deliveries, ifany;  and (iv) a short description of how the transaction benefits the Kyrgyz Republic.  The licencewas required to be granted within 20 days of the receipt of the complete application. The licence wasnon-transferable.  Once the licence was granted, the recipient must provide it to the  State CustomsInspectorate together with a customs declaration.  A "single shipment" licence must be used within sixmonths from the date of issuance. A "multiple shipment" licence must be used within 12 months.
73. The representative of the Kyrgyz Republic stated that the following non-ferrous metal and
wastes and scrap thereof, and HS tariff number,  were subject to export licensing:
7404 Copper wastes and scrap
7503 Nickel wastes and scrap7802 Lead wastes and scrap7602 Aluminum wastes and scrap9702 Zinc wastes and scrap8002 Tin wastes and scrap8101 Wolfram and articles thereof, including wastes and scrap
2611
28258102 Molybdenum and articles thereof, including wastes and
scrap
2613
28258103 Tantalum wastes and scrap8104 Magnum wastes and scrap8105 Cobalt wastes and scrap8106 Bismuth wastes and scrap8107 Cadmium wastes and scrap
8108 Titanium wastes and scrap
8109 Zirconium wastes and scrap8110 Antimony and articles thereof, including wastes and scrap
2617 Antimony concentrates
2825 Antimony oxides8111 Manganese wastes and scrap8112 Rhenium and articles thereof, including wastes and scrap
8112 Chrome, germanium, vanadium, beryllium and niobium
wastes and scrapWT/ACC/SPEC/KGZ/9
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74. Some members of the Working Party requested information on Cabinet of Ministers
Resolution No. 56 of 6 February 1996.  They noted that the resolution provided for licensingrequirements and controls on exports, including  textile goods, wearing apparel, silicon carbide,ammonium nitrate, and raw aluminum, required by bilateral agreements between the RussianFederation and the European Communities, and for general exports of precious stones, preciousmetals, articles containing precious metals, and precious metal waste.  The representative of theKyrgyz Republic stated that the restrictions set ou t in that draft Resolution would come into force
only if the Kyrgyz Republic became a member of th e Customs Union.  The goal of the draft law was
to protect electric transmission and communication lines and ferrous and non-ferrous metal itemsfrom theft by persons desiring to resell those metals to scrap metal processing firms.  In the view ofthe Government of the Kyrgyz Republic, the measures were justifiable on national security grounds.
75. In response to further questions concerning the reason for the requirement to obtain export
licences for exports of non-ferrous metal and wastes and scrap thereof, the representative of theKyrgyz Republic stated that when an application for an export licence was received, theKyrgyz Republic reviewed the prices of the products to be exported.  While the export licences werenot refused on the basis of low prices, recommendations were made to the applicant to ensure thatprices were comparable to world market prices.  He confirmed that no sanctions were imposed onexporters who continue to export these products that were considered to be below world marketprices. The Kyrgyz Government did not consider the export of these products at low prices in itsdecision to grant or renew an enterprise's licence to purchase or sell fragments and waste ofnon-ferrous and ferrous metals.
76. The representative of the Kyrgyz Republic stated that the Kyrgyz Republic would ensure that
its system of export licensing was in conformity with the requirements of Article XI of the GATT1994.
- Export subsidies
77. In response to questions, the representative of the Kyrgyz Republic stated that the
Kyrgyz Republic had no policies or measures to finance exports.  Certain limited export promotionprogrammes were maintained.  The Kyrgyz Republic imposed no export performance requirements.Under the current Customs Code, drawback could be granted for duties paid on goods imported for
completion, assembly, or processing for re-export within one year after importation.  Under theProposed Customs Code, drawback could be granted for duties paid on goods imported formanufacturing, processing, repair, or to be used incorporated into another product.  Drawback on suchgoods must be claimed within a time limit set by the SCI and the processed goods must be exportedwithin two years after the importation of the concer ned items.   He further added that the ProposedWT/ACC/SPEC/KGZ/9
Page 41
Customs Code also exempted from duties and taxes goods re-exported within six months of
importation.  If the goods were not re-exported within six months, customs duties, taxes and interestwere collected on the goods.
78. In response to questions concerning the future intention of the Kyrgyz Republic concerning
the grant and payment of export subsidies on industrial goods, the representative of the
Kyrgyz Republic stated that except for the profits tax reduction the Kyrgyz Republic did not currently
and did not intend to maintain any export subsidies.
79. In response to further questions, the representative of the Kyrgyz Republic stated that certain
lease payment provisions of the Bishkek Free Economic Zone were concerned with import
substitution.  The representative of the Kyrgyz Republic stated that the source of input for productionpurpose was not restricted.  An enterprise (i) was not prohibited or limited in its ability to importproducts used in or related to its local production and (ii) was not required to use local products asinput for its production.   
Some members of the Working Party stated that the tax incentives based on
export performance provided by Article 24 of the new Foreign Investment Law of September 1997
should be eliminated prior to accession to the WTO.  In response, the representative of the Kyrgyz
Republic stated that those tax incentives based on export performance were currently used by foreign
firms  under a previous foreign investment law.  It wa s foreseen that those incentives would continue
to apply until the expiration of the term of their validity.  Any attempt at this point to terminate such
incentives prior to the term of their validity woul d cause significant problems to existing foreign
investors.
80. In response to further questions, he agreed that the lease payment exemption for
export-oriented and import substitution production were not TRIMs inconsistent but could beconsidered to conflict with the requirements of the Agreement on Subsidies and CountervailingMeasures and would be eliminated upon accession  to the WTO.   The representative of the
Kyrgyz Republic stated that the Law on Making Amendments to the Law On Free Economic Zoneswhich would be in conformity with the requirements of the Agreement on Subsidies andCountervailing Measures would be adopted in November 1998.  The Working Party took note of thiscommitment.WT/ACC/SPEC/KGZ/9
Page 42
- Internal Policies Affecting Trade in Goods
- Industrial policy, including subsidies
81. In response to requests for information, the representative of the Kyrgyz Republic stated that
the Kyrgyz Republic did not have any industrial policy.  The Government did have a general policy tocreate a broad-based market economy and to privatize all government-owned commercial enterprisesand assets.  The Government also had a general policy to attract foreign investment into the countryand to involve, as far as possible, foreign investors, technology and know-how in all sectors of theeconomy for the purpose of furthering the creation of a broad-based market economy and theprivatization of government-owned commercial en terprises and assets.   The Government did not
intend to maintain any policies which would distor t trade;  nor protect any industry, market or
business entity.
82. Some members of the Working Party asked whether the Kyrgyz Republic would maintain
subsidies prohibited by Article 3 of the Subsidies and Countervailing Measures Agreement upon itsaccession to the WTO and whether it would have recourse to Article 29 of the same Agreement tojustify such subsidies.  In response, the represen tative of the Kyrgyz Republic stated that, excepting
other subsidies described above, the only subsidies were certain tax exemptions provided by theForeign Investment Law of 1991.  The new foreig n investment law which would eliminate tax
exemptions based on export performance had been adopted in September 1997.
- Technical Barriers to Trade
83. In response to requests for information, the representative of the Kyrgyz Republic stated that
standards and certification requirements in the Kyrgyz Republic were not intended to distort orestablish technical barriers or to disrupt trade.  The object of such standards and certificationrequirements were to (i) ensure the safety and/or quality of goods, works and services, (ii) to protectthe environment and the health, life, work and property of citizens, (iii) to ensure uniformity ofmeasurement and the technical compatibility and interchangeability of products;  and (iv) to preserveall types of resources.  Both domestic-origin and foreign-origin goods were equally subject to thesame requirements on standards and certification.    Importers of goods subject  to obligatorycertification of conformity with national safety requirements and other technical requirements wererequired to present a certificate at the border stating that the goods met the applicable requirements,along with the import declaration and other supporting documents.  
If an international agreement to
which the Kyrgyz Republic is a party provides for other rules other than those stipulated by the
legislation of the Kyrgyz Republic on standardization  then the rules of the international agreement
would prevail.WT/ACC/SPEC/KGZ/9
Page 43
84. He added that the State Directorate on Standa rdization and Metrology under the Cabinet
of Ministers (Kyrgyzstandard) was the agency  responsible for developing, realizing and
administering the Kyrgyz Republic’s policy on technical regulations, standards and certificationrequirements.  The Cabinet of  Ministers Resolution No. 260 of 28 April 1994, as amended by
Resolution No.146 of 5 April 1996, listed seven general product categories that requirecertification prior to sale, without regard to the origin of the concerned products. Forhealth-related products, sanitary/hygiene test results  were used as the basis for granting thecertificate of compliance.  Kyrgyzstandard wa s responsible for accrediting certification and
testing bodies.  As of 1 June 1996, there were 8 accredited certification bodies and 13 accredited
testing laboratories  As of 1 January 1998, there were 11 accredited certifying bodies and 19
accredited testing laboratories in the Kyrgyz Republic.  In addition, the four regional branches of
Kyrgyzstandard were also authorized to conduct certification procedures.  In accordance with the
Agreement On a Uniform Policy on Standardiza tion, Metrology and Certification, which was
executed by all CIS countries, Kyrgyzstandard now accepted certificates issued by any accreditedinstitution of Armenia, Azerbaijan, Belarus, Georgia, Kazakstan, Moldova, the RussianFederation, Tajikistan, Turkmenistan  and Uzbekistan.  He further added that it was possible for
foreign companies to be accredited as certification bodies or testing laboratories byKyrgyzstandard;  however, no such compan ies had yet applied.  The requirements for
accreditation and the procedures to be followed were the same for both domestic and foreigncertification bodies.  In response to requests for further informa tion, the representative of the
Kyrgyz Republic stated that the Law "On Prot ection of Consumers’ Rights", set mandatory
requirements for products which posed a substantia l potential threat to the environment or the
safety, lives and/or health of citizens.  Kyrg yzstandard would issue a certificate of compliance
and a licence to mark the concer ned goods with a "mark of compliance.”  Sale or import of such
goods in the Kyrgyz Republic without such prior certification and marking was prohibited.
Goods imported for personal use di d not require certification.  Other requirements (indications)
were voluntary.  Goods subject to voluntary cer tification could be certified on the basis of an
agreement between the applicant and Kyrgyzstandard.  Voluntary certification could also beperformed by any body authorized by Kyrgyzst andard to do so.  The method of voluntary
certification was chosen by the applicant from t hose accepted by Kyrgyzstandard.   In response to
requests for information on the process for obtaining a certificate and mark of compliance therepresentative of the Kyrgyz Republic stated that the issuance of a certificate and mark ofcompliance required:  (i) the filing of an application with the responsible ministry or State body;(ii) a review of the application, including the choice of certification method;  (iii) theidentification and selection of samples and their tes ting;  (iv) a review of the test results and a
comparison with the applicable standards;  and (v ) the issuance of a certificate of compliance and
a licence to use the mark of compliance.  It was generally possible for the certifying body toWT/ACC/SPEC/KGZ/9
Page 44
accept the declaration of a manufacturer or producer, but the acceptance of a declaration was
subject to the discretion of the Ministry or State body responsible for certifying the compliance of
the goods.  Regulations providing for pre-market or manufacturer certification were in draft form.   In
general, the certifying body would accept manufacturers' declarations of compliance.
85. In response to requests for information on the bringing of standards used in the
Kyrgyz Republic into compliance generally accepted in ternational standards, the representative of the
Kyrgyz Republic stated that Kyrgyzstandard was currently a corresponding member of theInternational Standards Organization (ISO).  The Kyrgyz Republic was in the process of moving fromthe use of GOST-standards to the use of internatio nal standards.  The Kyrgyz Republic was a member
of the CIS Inter-Governmental Council on Standard ization, Metrology and Certification, which was
recognized by ISO as a regional organization moving towards eventual implementation and usage ofinternational standards.  A timetable for the change-over had not been finalised.  TheKyrgyz Republic had also adopted over 120 standards of the International ElectrotechnicalCommission (IEC).  The acceptance of certificates issued by foreign certification bodies wasgenerally dependent on the existence of a bilateral or multilateral agreement on the matter.  TheGovernment was currently in the process of negotiating bilateral agreements on standards withAustria, the People’s Republic of China, Germany, India, Iran and Turkey.
86. He further added that accreditation of a certification and testing organization was performed
by Kyrgyzstandard and other State bodies authorized to conduct mandatory certification within theirarea of competence (for example, the Kyrgyz Ministry of Construction and Architecture wasresponsible for certifying the compliance of construction materials).  An applicant must provideKyrgyzstandard with its organizational documents, the desired scope of accreditation, a briefdescription of its legal status, as well as a description of its organizational structure.  An organizationapplying for an accreditation must:  (i) be independent and unbiased; and (ii) be sufficientlycompetent, i.e. possess sufficient means, qualified professionals, etc.
87. In response to requests for information on the fee structure for certificates, the representative
of the Kyrgyz Republic stated that:
- Certificate of compliance currently cost 600-1500 Soms (approximately US$35-90),
depending on the type of laboratory tests required;WT/ACC/SPEC/KGZ/9
Page 45
- a phytosanitary certificate cost  76-166  36-265 Soms depending on the type of product.  If the
total weight of the product was less than 300 kg the required payment will be 10 per cent ofthe otherwise applicable amount. If the weight was from 300 kg-1000 kg the requiredpayment would be 50 per cent of the otherwise applicable amount;
-
veterinary certificate: for goods having a value equal to or less than 5000 Soms, a fee equal to
0.5 per cent of the value was assessed; for goods having a value exceeding 80,000 Soms, a fee
equal to 350 Soms plus 0.1 per cent of the value was assessed;  for goods having a value in
excess of 5000 Soms but less than 80,000 Soms, a variety of formulas were applied that
gradually reduce the amount of the fee in ad valorem  terms;
- a hygienic certificate cost 70-800 Soms depending on the type of laboratory tests required;- in the case of a certificate setting forth the determination of State ecology experts that the
product has met applicable environmental standards the fee was determined on the basis ofthe cost of the laboratory tests
;  and
- all fees charged for obtaining certificate of compliance, phytosanitary certificate, veterinary
certificate, and hygienic certificate, were applied in a manner consistent with Article III of
GATT 1994.  These fees are the same for foreign and domestic products and foreign and
domestic companies are charged the same fees.
88. Some members of the Working Party asked whether any difficulties were foreseen in the
application of the Agreement on Technical Barriers to Trade upon accession.  In response, therepresentative of the Kyrgyz Republic stated that due to the  shortage of qualified personnel andnecessary infrastructure, the Kyrgyz Republic would have difficulties participating in the work ofrelevant international organizations, in receiving and providing information in a WTO officiallanguage, and in providing notification of technical regulations in a timely manner.  He noted, forexample that at present, draft standards, technical regulations, and conformity assessment procedureswere not published for public comment.  There were at present no formal notice requirements,although within the CIS, regulations have been de veloped that operate like notice provisions.  The
Law on Standardization and the Law on Certification was being amended to meet the TBTrequirements for publication of draft standards and technical regulations. Kyrgyzstandard published aquarterly periodical entitled the Information Bulletin of Kyrgyzstandard where such notices will bepublished.    Under Resolution No. 12  of 6 January 1997 the Cabinet of Ministers of the KyrgyzRepublic officially established the Information Centre of the State Inspectorate on Standardizationand Metrology (Kyrgyzstandard) as the Inquiry Point for standards and sanitary and phytosanitarymeasures in the Kyrgyz Republic.  This Inquiry Point met WTO requirements, it contained all adoptedWT/ACC/SPEC/KGZ/9
Page 46
and proposed standards and conformity assessment procedures and information concerning the
membership and participation of the Kyrgyz Repub lic in regional and international standardizing
bodies as well as in bilateral and multilateral arrangements.  The Inquiry Point received questions andsends responses by telephone, mail, fax and e-mail.  Kyrgyzstandard had hired employees, fluent inRussian and English, who would receive and transmit information in English.  To the extent thatresources will allow, Kyrgyzstandard will participat e in international standards activities.  The Kyrgyz
Republic was a corresponding member of the ISO.  It was also a member of the CIS
Inter-Governmental Council on Standardization, Metrology and Certification.  This body wasrecognized by the ISO as a regional organization moving towards the eventual implementation and
usage of international standards.
89. The representative of the Kyrgyz Republic stated that the Law on Making Amendments and
Supplements to the Law of the Kyrgyz Republic on Standardization which would be fully consistentwith the WTO Agreement on Technical Barriers to Trade would be adopted in October 1998.   TheWorking Party took note of this commitment.
- Sanitary and phytosanitary measures
90. The representative of the Kyrgyz Republic stated that it was the policy of the Government to
develop and maintain sanitary standards solely for the purpose of  protecting the health of human,animal and plant life and not for the purpose of creating technical barriers to foreign products or forprotecting domestic producers.  Development of sanitary standards was the responsibility of severaltechnical committees in cooperation with the Ministry of Health. The consent of the Ministry ofHealth was required before Kyrgyzstandard could issue any standard constituting a sanitary measure.He further explained that Cabinet of Ministers Resolution No. 260 of 28 April 1994, as amended byResolution No. 146 of 5 April 1996, listed seven general product categories that require certificationprior to sale, without regard to the origin of the concerned products. All covered products requiredcertification for safety
 certification of safety indicators, sanitary and environmental reasons.  For
health-related products, sanitary/hygiene test results were used as the basis for granting the certificateof compliance.  Product categories subject to sanitary measures were included in this list.  Anyaccredited certification body could certify a product as being in conformity with the applicablesanitary requirements if the required sanitary/hygiene tests had been performed by a competent testinglaboratory and the required test results obtained.  
He provided the Working Party with a list of goods
subject to phytosanitary and veterinary certificat es together with corresponding fees in document
WT/ACC/KGZ/16.WT/ACC/SPEC/KGZ/9
Page 47
91. He further added that importers of goods subject to sanitary and/or phytosanitary measures
were required to present a certificate at the border stating that the goods met the applicablerequirements, along with the import declaration and other supporting documents.  If the container orpackaging was damaged, or was not accompanied by the required documentation, the product couldnot be cleared through customs.
92. Some members requested information on whether the Kyrgyz Republic’s procedures for
adopting trade measures relating to concerns with human, animal and plant health were in conformitywith the requirements of the SPS Agreement.  In response, the representative of the Kyrgyz Republicstated that the appropriate ministries and State bodies (particularly, the Ministry of Health, theMinistry of Agriculture and Food, the Ministry of Environmental Protection, and theVeterinary-Sanitary Supervisory Office) were reviewing the provisions of the SPS Agreement inorder to bring their respective procedures into conformity with the SPS Agreement.  
Amendments to
the Law on Veterinary and the Law on Plant Quarantine necessary to implement provisions of the
SPS Agreement were provided to members of the Working Party.
93. Some members asked whether proposals for SPS measures were published in advance, and
whether there was an opportunity for public comment by interested parties, both domestic andforeign.  In response, the representative of the Kyrgyz Republic said that although State bodies couldpublish such measures in advance seeking public comment, it was not obligatory to do so.  Somemembers of the Working Party also asked whether there was a requirement to conduct riskassessments prior to the adoption of SPS measures, including a requirement that such measures bebased on scientific evidence.  In response the representative of the Kyrgyz Republic stated that therewas a requirement that any SPS measure be based on scientific evidence, but there was norequirements and no guidelines concerning  the conduct of risk assessments.
94. Some members of the Working Party asked whether the sanitary and phytosanitary standards
in the Kyrgyz Republic were in conformity with inte rnational standards, in particular those developed
by the Codex Alimentarius Commission, the Internat ional Office of Epizootics, and the international
and regional organizations operating within the framework of the International Plant ProtectionConvention.  In response, the representative of the Kyrgyz Republic stated that the appropriateministries and State bodies (particularly, the Ministry of Health, the Ministry of Agriculture and Food,the Ministry of Environmental Protection, and the Veterinary-Sanitary Supervisory Office) werereviewing the provisions of these standards for the purpose of bringing their respective standards into
conformity with the Agreement on SPS.WT/ACC/SPEC/KGZ/9
Page 48
95. Some members of the Working Party expressed concern that Cabinet of Ministers Resolution
No. 260 required that safety certificates be obtained for imports of "agricultural and food industryproducts".  They requested details of the scientific evidence or risk assessments upon whichResolution No. 260 was based.  In response, the representative of the Kyrgyz Republic stated thatResolution No. 260 was based on the evaluation of the possibility of entry of pests and diseases andpotential biological consequences. Certification requirements for items listed in Resolution No. 260were based on scientific studies and were imposed only to the extent necessary to protect human lifeand health and the environment.
96. The representative of the Kyrgyz Republic stated that the Kyrgyz Republic would apply the
SPS Agreement in full upon accession.  He noted that the Law On Making Amendments andSupplements to the Law of the Kyrgyz Republic On  Certification of Products and Services which
would be fully consistent with the SPS Agreement would be adopted in October 1998
.  He noted that
the Kyrgyz Republic could encounter some difficulties in the time of execution of some obligations
contained in the SPS Agreement (for example Article 7 and Appendix B) due to the lack of qualified
personnel and the required infrastructure.  After accession to WTO the Kyrgyz Republic would make
use of Article 10 of the SPS Agreement.  [The Working Party took note of these commitments.]
- Trade Related Investment Measures
97. Some members of the Working Party requested information on the tax incentives granted to
foreign-owned legal entities.  In response, the representative of the Kyrgyz Republic said that tax
incentives aimed at encouraging foreign investment in the Kyrgyz Re public involved an initial 2-5
year exemption from the profits tax.  Thereafter a reduction in profits tax for all taxable profits
reinvested in the Kyrgyz Republic was available:
- if at least 50 per cent of entity’s products and services were exported;+
- if at least 50 per cent of production was de rived from imported raw materials or components;
and
- if at least 20 per cent of taxable profits were spent for professional training.
He added that in the view of the Kyrgyz Republic, none of these tax incen tives were inconsistent with
the TRIMs Agreement.  However, the reduction in the profits tax if 50 per cent or more of the entity’s
products and services were exported could appear to be an export subsidy within the meaning of
Section 3.1(a) of the SCM Agr eement.WT/ACC/SPEC/KGZ/9
Page 49
98. Some members of the Working Party noted that bids to purchase State owned assets were
scored according to a number of factors,  Included among the factors considered was the commitmentby the bidder "to maintain certain employment levels".  They asked whether this requirement wasinconsistent with obligations in the TRIMs Agreement   In response, the representative of theKyrgyz Republic stated that giving weight to a bidder’s willingness to make a commitment to
maintain a certain employment level did not contradict the TRIMs Agreement.  There was notrade-related aspect imposed by the State on the buyer in connection with this commitment.  The Statewas currently the major stock-holder in these entities, and in that role could require a potentialpurchaser to maintain certain employment levels. Furthermore, a requirement to maintain employmentlevels did not mean that a buyer was required to use only local labour.  The requirement was imposedon the buyer for the purpose of avoiding de-stabilizing simultaneous mass lay-offs during an initialperiod of transition and mass privatization.  This requirement was phased out within a limited timeafter the transaction. In his view nothing in the arrangements violated the TRIMs Agreement.
99. Following questions in relation to the compatibility of certain aspects of the Bishkek Free
Economic Zone with the requirements of the TRIMs Agreement, the representative of theKyrgyz Republic stated that the lease payment which required the employment of a certain number ofpeople per year was not TRIMs inconsistent, because the TRIMs Agreement referred only toproducts.  The lease payment conditioned on use of domestic raw materials and spare parts could beTRIMs inconsistent and would be eliminated upon accession to the WTO.  
He later stated that draft
amendments to the Law on Free Economic Zones, addressing the elimination of all WTO-inconsistent
measures in connection with free economic zones, were being finalized and would be provided to
members of the Working Party.  The Kyrgyz Republic was currently finalizing its decision on how to
deal with companies which  are currently operating in the zone and have received such benefits.  Such
decision will be reflected in the Amendments to the Law on Free Economic Zones.  The exemption
from quantitative restrictions for export-oriented production would be eliminated upon accession to
the WTO .  The Law on Free Economic Zone would  be  amended to eliminate TRIMs inconsistent
measures.
100. The representative of the Kyrgyz Republic stated that the Law on Making Amendments to the
Law on Free Economic Zones which would be in conformity with the requirements of the TRIMsAgreement would be adopted in November 1998
.  The Kyrgyz Republic would ensure that the
operation of the free economic zones would be WTO-consistent after accession.   [ The Working Party
took note of these commitments.]WT/ACC/SPEC/KGZ/9
Page 50
- State-trading practices
101. Some members of the Working Party noted that the Kyrgyz Republic had earlier described
enterprises that enjoyed  "natural" monopolies.  They asked whether the trade activities of thoseenterprises were "State trading" in terms Article XVII of the GATT 1994 of Article VIII of the GATS.
In response, the representative of the Kyrgyz Republic stated that the Government of theKyrgyz Republic was reviewing the operations, legal status and privileges of the listed naturalmonopolies to determine whether they should be noti fied as "State trading" entities within the
meaning of Article VIII of the GATS or Article XVII of the GATT.  If the Government determinesthat an entity fell within the definition of a "State -trading" enterprise, that entity would be notified as
such to the WTO.  At present, the Government was examining the following enterprises:
- Management Department of Kyrgyzrailroad (intra-republic passenger and goods
transportation);
- Ministry of Communication (telecommunication services rendered to public);- Kyrgyz Energy Holding Company (electric power and thermal energy);- "Kyrgyzgas" (natural and liquefied natural gas);- "Kyrgyzjilkommunsojuz" (thermal energy, water-pipe water and sewage);- "Kyrgyzalco" (alcohol and alcohol products, other than beer); and- "Kyrgyztamekesi" (tobacco fermentation, manufacture of tobacco products, sale of fermented
tobacco).
He further added that Kyrgyzpharmacia  had no role whatsoever in the issuance of licenses and,
therefore, would not be notified as a state trading company.  Later, the representative of theKyrgyz Republic stated that further examination of the State trading sector had revealed that State
trading monopolies currently existed in the alcohol, tobacco, and electrical energy sectors:Kyrgyzalco ( de jure ), Kyrgyztamekesi ( de jure ), and Kyrgyz Energy Holding (de 
facto).  In response,
some members of the Working Party stated that Kyrgyzaltyn  should also be notified as a state trading
enterprise, because since 1994, that fully State-owned enterprise had been the only producer,
importer, or exporter of antimony.  In response, the representative of the Kyrgyz Republic stated that
although Kyrgyzaltyn  had been the only, de facto,  producer, importer, and exporter of antimony, the
Kyrgyz Republic did not believe that this company fell under the definition of Article XVII of the
GATT 1994.  Kyrgyzaltyn  did not have any exclusive or special rights or privileges in conducting
foreign trade.  Any person could apply for and obtain a license to export antimony.  Licenses were not
required for the import of antimony.WT/ACC/SPEC/KGZ/9
Page 51
102. Concerning the tobacco sector, Kyrgyztamekesi  was the sole provider of licences for the
production of tobacco products in the Kyrgyz Republic.  Any person could obtain a licence to engagein the production of tobacco products.  Imported tobacco products were marketed freely in theKyrgyz Republic, licenses were not required for the domestic distribution or sale of tobacco products.
103. The representative of the Kyrgyz Republic stated  that concerning the alcohol sector, Article 8
of the Law on Licensing of 3 March 1997 stated that foreign legal entities or individuals, as well as
individuals without citizenship should receive licenses on the same conditions and in the same
procedure as legal entities and individuals of the Kyrgyz Republic, unless otherwise stipulated by
legislative acts.  Currently, no legislative acts stipulated otherwise for licenses issued by Kyrgyzalco .
Article 18 of the same law permitted license applicants to have judicial appeal.  Any MFN or National
treatment (Article III) violations may be appealed to the court by license applicants.  Policy decisions
with respect to any quantitative restrictions and prohibitions are made by the Government and not by
Kyrgyzalco .
104. The Kyrgyz Republic commits to ensure that the operations of Kyrgyzalco  in the issuance of
import and export licenses for alcohol and alcoholic products are administered in a manner consistent
with WTO requirements.
105. Concerning the energy sectors, there were no prohibitions by the government on the export of
oil products, natural gas, and liquefied gas.  Currently, there were no firms (includingKyrgyzgasmunaizat) engaging the exportation of oil products, natural, and liquefied gas, due to highdomestic demand and insufficient supply.  There were five privately-owned companies engaged in theimportation of oil products: Lukoil Kyrgyzstan, Tyan-Shan Oil, Sato Petroleum, Datka, and Ekooil.In addition to Kyrgyzgasmunaizat which imported approximately 50 per cent of the natural gas andliquefied gas to the Kyrgyz Republic, a number of State companies (e.g. Kadamjai Antimony Group,Maili Suu Lamp Plant) were currently importing natural gas to meet their own demand.  These Statecompanies had their own contracts with Uzbekistan for importing natural gas and had a commercialcontracts with Kyrgyzgasmunaizat to transport gas from Uzbekistan to the Kyrgyz Republic.
106. Some members of the Working Party requested further information on trade in the electrical
energy sector.  These members welcomed the recognition that although there were no de jure  barriers
to trade in electrical energy in the Kyrgyz Republic, there was a de facto monopoly in the hands of theKyrgyz Energy Holding Company.  In response, the representative of the Kyrgyz Republic stated thatthe production and sale of the electrical energy was carried out by Kyrgyz Energy Holding.  Therewere no regulatory barriers to entry.  Any person could apply for a licence for the generation,WT/ACC/SPEC/KGZ/9
Page 52
transmission, distribution, and sale of electrical energy.  The draft regulations outlining the
procedures, criteria, and requirements for obtaining such licences were currently being developed inaccordance with the Law on Licensing of 3 March 1997.    He noted that no applications for suchlicences had been submitted to the Licensor (the "State Energy Agency under the Cabinet ofMinisters").  He added that electrical power was equally available to all firms and individuals in theKyrgyz Republic.  In general, the rates for households were lower than the rates for legal persons.There was no difference in the rates charged to (1) a legal person (without foreign ownership), (2) alegal person (fully or partially foreign-owned), and (3) a representative or branch office.   Exportprices of bartered electrical energy established with Uzbekistan and Kazakstan were negotiated onannual basis and depended upon the traded volume and conditions of the inter-governmentalagreement.  The volume and the commercial value of bartered goods were considered duringnegotiation.
107. Some members of the Working Party requested that the Kyrgyz Republic undertake a
commitment  that, upon accession to the WTO, all State trading enterprises would be eliminated.   Inresponse, the representative of the Kyrgyz Republic stated that Article XVII of the GATT 1994authorized State trading activities.  The Kyrg yz Republic was not prepared to undertake a
commitment that State trading would be abolished in the alcohol and tobacco sectors.
108. The representative of the Kyrgyz Republic sa id that the Kyrgyz Republic would comply with
relevant provisions of Article XVII of the GATT 1994 and the corresponding WTO Understanding.The Working Party took note of this commitment.
- Free zones
109. In response to requests for information on free zones operating in the Kyrgyz Republic, the
representative of the Kyrgyz Republic stated that existing legislation and the Proposed Customs Codeauthorized the establishment of free economic zones, which offered special customs, tax, labourrelations and procedural benefits to enterprises locating within such a zone.  Each free economic zonewas required to be established by an act of Parliament.  Specific benefits included:  (i) exemptionfrom the imposition of customs duties and other payments on foreign-origin goods entered into such azone and intended for reexport;  (ii) simplified border clearances;  (iii) abolition of non-tariffrestrictions on import and export;  (iv) exemption from all taxes and charges (however, entities wererequired to pay the General Directorate an annual fee of 0.1 - 2 per cent of the proceeds generatedfrom the sale of goods and services);  (v) collective labour agreement and individual contracts;(vi) free circulation and use of foreign currency, including payments between legal entities and naturalWT/ACC/SPEC/KGZ/9
Page 53
persons in the zone;  and (vii) simplified entrance,  departure and salary transfer abroad for foreign
citizens.  Four economic zones had been created by law, but only the Bishkek zone was operational.In response to that information, some members of the Working Party asked whether or not any free orfree economic zones established in the future would be fully consistent with all WTO obligationsrelating to free and free economic zones.
110. The representative of the Kyrgyz Republic stated that all free zones in the Kyrgyz Republic
would be operated consistently with all WTO obligations relating to free and free economic zones.He further stated that all goods produced or imported into free zones would be subject to normalcustoms formalities, taxes and tariffs when entering  the  customs territory of the Kyrgyz Republic.He confirmed that the Law on Making Amendments to the Law on Free Economic Zones would beadopted in November 1998.  The Working Party took note of this commitment.
- Government procurement
111. In response to requests for information, the representative of the Kyrgyz Republic stated that
in the past there was currently  no specific law regulating government procurement practices.  Each
branch, ministry, agency, or other governmental body was free to utilize whatever method it desired
to acquire required goods and services.  Open competitive bidding was not required.  Details ofGovernment purchasing in recent years were provided to the Working Party in Tables 1-29 and 1-30of Annex 1 of document WT/ACC/KGZ/3.  He further added that as part of the reform process, the
Government was discussing enactment of a draft law on the Procurement of Goods, Works and
Services.   the draft law was modeled primarily on the UNCITRAL Model Law on the Procurement of
Goods, Works and Services.  the Law on State Procurement was adopted by the Parliament of the
Kyrgyz Republic on 15 April 1997, enacted on 13 May 1997, and came into force on 1 June 1997.
112. In response to requests for information on the purchasing process under the proposed law on
government procurement, the representative of the Kyrgyz Republic stated that the law would
required that procedures and criteria for the evaluation of bids be set forth in the solicitationdocuments issued for each procurement.  The proposed law required procuring entities to act in strictaccordance with the applicable solicitation documents.   Price, subject to any margin of preference
applied pursuant to the law, was the only criterion unless the solicitation documents stated that theaward will be based on other objective and quantifiable criteria. Alternative criteria must be specifiedin advance in the solicitation documents.  He further added that the Kyrgyz Government had created a
new Government Procurement Agency within the Ministry of Finance.  The State Procurement
Agency under the Cabinet of Ministers was established according to Presidential Decree No. 31 of 29
January 1997.  This new central agency would control the application of the legal system, superviseWT/ACC/SPEC/KGZ/9
Page 54
the decisions of all purchasing organizations, monitor infringements of public law and settle disputes.
Disputes could be pursued in the economic Court system; however, judicial redress was generallyavailable only after the exhaustion of administrativ e remedies. He noted, however, that the following
matters were not subject to judicial review:
- the selection of the method of procurement;
- the choice of a selection procedure;- the limitation of procurement proceedings on the basis of nationality;- a decision by the procuring entity to reject all tenders, proposals, offers, or quotations;- a refusal by the procuring entity to respond to  an expression of interest to participate in
request-for-proposal proceedings; and
- an omission of reference to laws and regulations in the solicitation documents.113. In response to questions concerning whether the procurement of certain products was
reserved for local industry, the representative of the Kyrgyz Republic stated that the proposed law
permitted certain proceedings to be limited to domestic bidders (for example, where the procuring
entity determined that the value of the contract to  be awarded was so low that only domestic bidders
were likely to be interested). Also, in limited cases, a procuring entity could grant a margin of
preference for the benefit of tenders for domestic contractors, domestically produced goods, or
domestic suppliers of services.   with respect to the MFN principle, the proposed  law does not permit
the procuring entity to discriminate among foreign bidders.  If there are enough suppliers on the
territory of the Kyrgyz Republic to carry out the deliveries of goods, works, and services, a
purchasing organization shall have the right to limit participation in the procedures of purchases to
domestic suppliers.
114. Some members of the Working Party asked that as part of its protocol accession
commitments, the Kyrgyz Republic accede to the Government Procurement Agreement and submit aschedule of commitments to the GPA Committee to initiate negotiations no later than 3 months afterthe date of accession to the WTO.  These members expressed concern that the new law would allowfor domestic preferences, either by limiting procurement procedures to national bidders, or by givingpreferential margins to domestic goods or service providers.  In their view, such a provision wouldcreate a trade barrier in contradiction with the future obligations that the Kyrgyz Republic wouldassume upon accession to the Government Procurement Agreement.  In response, the representativeof the Kyrgyz Republic stated that the last version of the draft law did not limit procurementprocedures to national bidders and did not give preferential margins to domestic goods or serviceproviders.  He also added that The Kyrgyz Republic did plan to accede to the Agreement onGovernment Procurement.WT/ACC/SPEC/KGZ/9
Page 55
115. The representative of the Kyrgyz Republic stated that the Kyrgyz Republic would initiate the
process of joining the Government Procurement Agreement two years after the establishment of theKyrgyz Government Procurement Agency (KGPA).  KGPA was established in January 1997.  Hefurther added that the Government Procurement la w was adopted by the Parliament on 15 April 1997,
signed by the President on 13 May 1997, and came into effect on 1 June 1997.  He added that inresponse to requests from some members of the Working Party, the Kyrgyz Republic wasreconsidering its decision regarding accession to the GPA.
116. The representative of the Kyrgyz Republic stated that the Kyrgyz Republic would commence
its accession to the Government Procurement Agreement in January 1999.  The Working Party took
note of this commitment.
-T r a n s i t
117. The representative of the Kyrgyz Republic stated that under both current law and the
Proposed Customs Code, goods in transit through the territory of the Kyrgyz Republic were requiredto be declared to the SCI at the point of entry.   Upon release from the entry point, the goods could
move freely through the customs territory of the Kyrgyz Republic.  No payment of duties or taxes wasrequired on goods in transit.  Goods classified as "goods in transit," were required to remainunchanged except for normal wear and tear and should not be used for any economic purpose.  Thegoods were required to be transported to their customs destination according to the routes anddirections established by the SCI.  If  the goods were not presented to the SCI at the point of exitwithin a reasonable time, the carrier was responsible for the payment of all duties and taxes due as ifthe goods had been released into free circulation (the carrier may also be assessed an administrativepenalty), unless the goods can be proved to have been exported, destroyed, or lost as a consequence ofan accident or force majeure event.
- Policies Affecting Trade in Agricultural Products
- Imports - description of the types of border protection maintained
118. In response to requests for information, the representative of the Kyrgyz Republic stated that
agricultural products were not subject to import licensing, or other restrictions such as quotas.  Certaincategories of agricultural products, specified in the list approved by Cabinet of Ministers Resolution
No. 260 of 28 April 1994 were subject to certification, the purpose of which was to protect the healthof Kyrgyz citizens by restricting the importation of poor quality products and raw material.  Importedagricultural products were subject to rates of duty ranging from 0 to 25 per 
cent not exceeding ten per
cent.WT/ACC/SPEC/KGZ/9
Page 56
-E x p o r t s
119. He further added that no licence was required to export agricultural products.  There were no
export tariffs, quotas, restrictions or prohibitions on the export of agricultural products.  No exportcredits, export credit guarantees, export credit insurance, or other financial support or assistance wasavailable for agricultural exports.
- Internal policies - i.e. description of and the budgetary expenditure and any
revenue foregone involved in each of the domestic support measures in place
120. In response to requests for information, the representative of the Kyrgyz Republic stated that
one of the basic aims of the Kyrgyz Republic’s policy in agriculture was to ensure the stability andgrowth of the supply of agricultural products to the domestic market.  The Kyrgyz Republic wastherefore pursuing a process of de-collectivization, reorganization and privatization of  agriculturalenterprises.  Agricultural prices had been liberalized.  From the end of 1995, all direct State financialsupport payments to all agricultural enterprises, had ceased - with the exception of 6 special animalbreeding and 26 seed producing farms.  He further noted however, that due to a lack of funds, eventhose enterprises did not receive regular financial support from the State.   In partial replacement ofdirect State financial support, funds loaned to the Government of the Kyrgyz Republic by variousinternational organizations and institutions were being used by the Government to providelow-interest credit facilities to agricultural enterprises to enable them to make purchases of key inputs,e.g., seeds, fertilizer, equipment, etc.  The loans had annual interest rates of between 7 per cent and
12 per cent.  The follow-on loans to the agricultural enterprises had rates of between 1 per cent and5 per cent.  In this connection he noted that a nnual interest rates charged by private commercial
lenders, currently ranged between 50 per cent and 60 per cent.
121. In response to this information, some members of the Working Party asked whether the
average tariff rate for agricultural products under the new tariff regime would exceed the existing10 per cent average rate.  In response, the representative of the Kyrgyz Republic stated that theaverage tariff rate for agricultural products under the proposed tariff regime would remain at about 10per cent.
122. Some members asked whether the Kyrgyz Republic would enter a commitment to not require
licences for export of agricultural products and to not impose tariffs or quotas on the export ofagricultural products.  In response, the representative of the Kyrgyz Republic stated that theKyrgyz Republic would bind its existing policies of not requiring licences for export of agriculturalproducts and not imposing tariffs or quotas on the export of agricultural products, except inaccordance with WTO Agreements.WT/ACC/SPEC/KGZ/9
Page 57
123. The representative of the Kyrgyz Republic provided information on domestic support and
export subsidies in document WT/ACC/SPEC/KGZ/1.  He also  stated that the Kyrgyz Republic
would bind export subsidies at zero for agricultural products.
124. Some members asked whether the direct State financial support payments to the special
animal breeding and seed producing farms would be stopped in the future.  In response, therepresentative of the Kyrgyz Republic stated that due to a lack of financial resources, the Statecurrently provided no support to the above-mentioned farms. Breeding farms engaged in raisingpedigree horses had been able to cover their costs without State assistance, but farms for theproduction of seeds were supported by the European  Commission on Technical Issues.  The assistance
rendered in 1995 was an estimated 15-20 million Soms.  In 1997 assistance for such farms wasprovided for in a government programme for sheep breeding.
- Textiles regime
125. In response to requests for information on textile products, the representative of the
Kyrgyz Republic stated that imported textile products were subject to rates of duty ranging from 0 to30 per cent, and that textile products for children must comply with the applicable safety standards.This certification requirement was established by Cabinet of Ministers Resolution No. 520 of2 December 1995 and applied equally to locally produced children’s textiles.  The export of textileproducts was only to an Agreement between the Kyrgyz Republic and the European Communities onTrade in Textile Products (the EC Textile Agreement) imposing a quota on Kyrgyz-origin textiles intothe European Communities.  The EC Textile Agreement provided that the quotas did not take effectuntil 1 January 1997.   The Cabinet of Ministers issued Resolution No. 56 of 6 February 1996providing for the implementation of this agreemen t and creating an export licensing system for
exporters of textiles to the European Communities.  The Resolution No. 56 would only becomeeffective when the Parliament approved the accession of the Kyrgyz Republic to theRussia-Kazakstan-Belarus customs union.   According to the EC Textile Agreement, theKyrgyz Republic could export textiles to the European Communities according to the followingquotas (established as percentages of the total imports of such goods into the European Communitiesduring the previous year):
- 0.35 per cent for category I goods;
- 1.20 per cent for category II goods;  and- 4.00 per cent for category  III, IV a nd V goods.WT/ACC/SPEC/KGZ/9
Page 58
VI. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General(a) Intellectual property policy
126. The representative of the Kyrgyz Republic stated that the intellectual property system of the
Kyrgyz Republic was still undergoing a transition from the system inherited from the formerSoviet Union.  It was the policy of the Government to put into place a system of intellectual propertyprotection modeled on the systems found in develope d market economy countries.  In pursuit of this
policy, the Kyrgyz Republic was in the proc ess of adopting (i) a Civil Code containing provisions
establishing basic intellectual property rights and protection and (ii) various additional specialized
laws, each dealing in greater detail with a specific type of intellectual property.  In addition, the
Anti-monopoly Law contained provisions proscribing and providing penalties and civil remedies for
certain types of business conduct involving the misappropriation of intellectual property.  In pursuit of
this policy the Kyrgyz Republic has adopted (i) Part 2 of the Civil Code, (adopted 5 December 1997,
effective 1 March 1998) containing provisions establishing basic intellectual property rights and
protections, (ii) the Patent Law (adopted 16 December 1997, effective 4 February 1998), (iii) the Law
on Copyright and Related Rights (adopted 16 December 1997, effective 23 January 1998), (iv) the
Law on Trademarks, Service Marks and Appellations of Places of Origin of Goods (adopted 16
December 1997, effective 28 January 1998).   In addition, separate laws covering :  integrated  circuits,
software and databases, selective breeding achievements and the law on commercial secrets had been
drafted and reviewed and were  awaiting final adoption by the Parliament.  The Anti-Monopoly law
enacted on 15 April 1994 contained provisions regarding unfair competition as well as the
misappropriation of intellectual property.  The Criminal Code (Section on Intellectual Property)
entered into force 1 January 1998 ;  the  Law on PC, Software Programs, and Databases, the Law on
Integrated Circuits, and the Law on Commercial se crets were adopted by the Parliament on 2 March
1998 and were awaiting the President’s signature.  The Law on Selection Achievements was currently
being reviewed by the Parliament and was expected to be adopted  by the Parliament in March 1998.
He further added that in preparing those laws, the Kyrgyz Republic had taken into account the
requirements of the TRIPs Agreement.
127. Some members stated that the Kyrgyz Republic  should enter a commitment to fully apply the
TRIPS Agreement from the date of its accession to the WTO.  In response, the representative of theKyrgyz Republic stated that there had been delays in adopting the draft laws under consideration bythe Parliament.WT/ACC/SPEC/KGZ/9
Page 59
128. The representative of the Kyrgyz Republic stated that Part 2 of the Civil Code would be
brought into conformity with the requirements of the WTO Agreement in March 1998.  [The Working
Party took note of this commitment.]   had come into force 1 March 1998, and includes Chapter V
"Intellectual Property", which complies with the TRIPs Agreement requirements.
(b) Responsible agencies for policy formulation and implementation
129. In response to requests for further information, the representative of the Kyrgyz Republic
stated that on 4 March 1996, the President issued a decree, which established a central intellectualproperty agency, the  State Agency for Intellectual Property (also known as Kyrgyzpatent).  Thisagency was responsible for the registration of patents, trademarks, industrial designs, copyrights andassociated rights and breeding achievements (i.e. new varieties of  plants and new breeds of animals).
The Anti-monopoly Department within the Ministry of Economy was responsible for theadministration and enforcement of the Anti-monopoly Law, which, at section 5, prohibited"unscrupulous competition", defined as  including  the unauthorized use of trademarks, trade dress
and confidential/proprietary business information.
(c) Membership of international intellectual property conventions
130. He further noted that the following conventions were applicable within the territory of the
Kyrgyz Republic:
- the Convention Establishing the World Intellectual Property Organization (WIPO);
- the Paris Convention for the Protection of Industrial Property;
- the Madrid Agreement Concerning the International Registration of Marks;  and
- the Patent Cooperation Treaty.
The Kyrgyz Republic had also acceded to the Eurasian Patent Convention, done at Moscow,
9 September 1994, ratified 29 September  1995.  Bilaterally, the Kyrgyz Republic had signed an
Agreement Between the Government of the Kyrgyz Republic and the Government of the Russian
Federation on Cooperation in the Sphere of Protection of Industrial Property, done at Bishkek, 13
October 1995.  In response to questions, the representative of the Kyrgyz Republic stated that the
Kyrgyz Government was considering joining the Rome Convention, as well as the Nice Agreement
Concerning the International Classification of Goods and Services (1957) and the Washington Treaty
on  Intellectual Property in Respect of Integrated Circuits (1989).    He noted that the Kyrgyz
Government adhered to the Universal Copyright Convention.WT/ACC/SPEC/KGZ/9
Page 60
The representative of the Kyrgyz Republic stated that as of 20 February 1998 the Kyrgyz Republic
was a member of the following multilateral treaties, agreements and conventions:
- Convention Establishing the World Intellectual Property Organization (WIPO):
- Paris Convention for the Protection of Industrial Property, (signed by the Kyrgyz Republic
Prime-Minister 6 January 1994, deposited with WIPO 14 February 1994);
- Madrid Agreement Concerning the International Registration of Marks, (signed by the
Kyrgyz Republic Prime-Minister 6 January 1994, deposited with WIPO 14 February 1994);
- The Patent Cooperation Treaty, (signed by the Kyrgyz Republic Prime-Minister 6 January
1994, deposited with WIPO 14 February 1994);
- Eurasian Patent Convention (the translation is being adjusted to conform to the official
version of 1994);
Moreover, the Kyrgyz Republic was in the process of acceding to:
- Berne Convention for the Protection of Literary and Artistic Works;
- WIPO Copyright Treaty;
- Locarno Agreement Establishing an International Classification for Industrial Designs
(ratified by the Jogorku  Kenesh  (Upper House) 26 January 1998, and submitted to the
Chamber of the People's Representatives for ratification);
- Strasbourg Agreement Concerning the International Patent Classification (ratified by the
Jogorku  Kenesh  (Upper House) 26 January 1998 and submitted to the Chamber of the
People's Representatives for ratification) ;
- Vienna Agreement Establishing an International Classification of the Figurative Elements of
Marks (ratified by the Jogorku  Kenesh  (Upper House) 26 January 1998 and submitted to the
Chamber of the Peoples Representatives for ratification);
- Nice Agreement Concerning the International Classification of Goods and Services for the
Purposes of Registration of Marks (ratified by the Jogorku  Kenesh  (Upper House) 26 January
1998, and submitted to the Chamber of People's Representatives for ratification).
In addition to these multilateral treaties, the Kyrg yz Republic had entered into bilateral agreements
concerning industrial property with the following countries:
- Russian Federation (1995)
- Uzbekistan (1996)
- Kazakstan (1997)
- Armenia (1997)
- Azerbaijan (1997).
The Kyrgyz Republic has yet to take the necessary steps to accede to the following conventions for
reasons unrelated to the substance of the conventions themselves.
- International Convention for the Protection of Performers, Producers of Phonograms and
Broadcasting Organizations (Rome Convention);
- Convention for the Protection of Producers of Phonograms Against  Unauthorized Duplication
of Their Phonogram (Geneva Convention);
- WIPO Performances and Phonograms Treaty;
- Treaty on Intellectual Property in Respect of Integrated Circuits (Washington Agreement);
- Universal Copyright Convention.WT/ACC/SPEC/KGZ/9
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Nevertheless the Kyrgyz Republic passed this Law on Integrated Circuits on 2 March 1998 which has
been sent to the President for the signature.  This Law provides the protections listed in the
Washington Agreement and comports to the requirements of the TRIPS Agreement.  Moreover,
Chapter 55 of the Civil Code covers neighbouring rights  as did the Law on Copyright and
Neighbouring Rights adopted on 16 December 1997.  These laws protect the right of performers,
producers of phonograms and broadcasting organizations for a term of fifty years and are consistent
with requirements of TRIPS.
117.131. Some members asked whether the Kyrgyz Republic intended to join the Berne
Convention (1971).  In response, the representative of the Kyrgyz Republic stated that the State
Agency  for Intellectual Property (SIPA) was conducting necessary preparatory work.  He added that
the Kyrgyz Republic was not considering joining the Geneva Convention on the Protection of
Producers of Phonograms.   The rights of producers of phonograms were protected by the Law "On
Copyright and Neighbouring Rights", which included ba sic provisions protecting the rights of these
producers in compliance with applicable WTO requirements.  The representative of the Kyrgyz
Republic said that the Kyrgyz Republic was in the process of acceding to the Berne Convention on
Protection of Literary and Artistic Works and, upon accession, would ratify the WIPO Copyright
Agreement (1996).  This would be concluded by  1  July 1998.  [The Working Party took note of these
commitments.]
(d) Application of national and MFN treatment to foreign nationals
132. The representative of the Kyrgyz Republic noted that the policy of the Kyrgyz Republic
regarding application of its intellectual property laws to foreign nationals was to accord nationaltreatment to foreign citizens, stateless persons and foreign legal entities, unless such treatment wascontrary to the provisions contained in other in ternational agreements to which the Kyrgyz Republic
was a party. The exception to this "national treatment" policy was section 8.1 of 
Kyrgyzpatent’s
Temporary Regulations on Industrial Property required a foreign legal entity having its permanent
location in a foreign country or a stateless person residing outside the Kyrgyz Republic to work
through a  registered local patent attorney when filing an application for a patent or the registration of
a trademark.  The exception to this "national treatment policy" was that Article 17 of the adopted
Patent Law and Article 6 of the Law On Trademar ks, Service Marks and Appellations of Origin of
Goods provide that applications filed by foreign legal entities and natural persons residing outside of
the Kyrgyz Republic shall be through a patent agent registered with State Agency on Intellectual
Property ( Kyrgyzpatent ).WT/ACC/SPEC/KGZ/9
Page 62
133. Some members asked how the Kyrgyz Republic intended  to comply with Article 4 of the
TRIPS Agreement.  In response, the representative of the Kyrgyz Republic stated that in order toensure national treatment, the State Agency for Intellectual Property ("Kyrgyzpatent") was nowreviewing all laws and regulations to ensure national treatment of foreign persons.  For example, auniform fee structure was currently being developed.  With respect to the MFN principle, theKyrgyz Republic intended to follow the requirements of Article 4 of the TRIPS Agreement.
(e) Fees and taxes
134. He noted that fees were charged for the processing of trade mark and service mark
registration applications, patent applications for inventions and industrial designs and applications forthe certification of utility models.  Fees were also charged for the renewal of invention and industrial
design patents.  Finally, fees were charged in connection with the registration of computer programs,
databases and integrated circuit topologies.   Levies would also be collected for the extension of the
term of a patent for an industrial design, a utility model, and for an extension of the registration of a
trademark, service mark and the use of an appellation of the place of origin of the good.  He noted inthis regard that section 18 of the Temporary Regulations set different methods for calculating theapplication/registration and other fees to be paid by Kyrgyz citizens and CIS nationals (fees set invarying shares of the "minimum salary") and those to be paid by non-CIS nationals (fees set invarying amounts of U.S. Dollars).  In addition, certain provisions reduced or eliminated fees for
certain classes of persons (specifically, veterans of the Great Patriotic War, students and disabled
persons).   Pursuant to the Patent Law and the Law On Trademarks, Service Marks and Appellations
of Origin of Goods, regulations are being developed which would provide for a unified method to
accrue levies.  However, prior to the adoption of this regulation, the rules of the temporary regulation
on levies applied for the patenting of inventions, utility models, industrial designs, registration of
trademarks and service marks (1994).
2. Substantive Standards of Protection, Including Procedures For the Acquisition and
Maintenance of Intellectual Property Rights
135. The representative of the Kyrgyz Republic noted that the basic legal recognition of
intellectual property rights was established under several articles of the Civil Code.  Article 7
provided that rights could arise as a consequence of the creation of works of science, literature, art,
invention and other products of intellectual activity.   Article 22 of the Civil Code listed the objects of
civil rights, namely protected undisclosed information and other results of intellectual activity, trade
names, trademarks and other means of individualization of goods.  Article 53 of the Civil Code stated
that a citizen can have the right to intellectual property as well as personal non-economic propertyWT/ACC/SPEC/KGZ/9
Page 63
rights.   Article 22 specifically dealt with brands, trademarks and other means of distinctively marking
articles.  Article 53 of the Civil Code provided, inter alia, that a person may have authorship rights inscientific works, works of art, literature, inventions and other results of intellectual activity.Article 32  provides that a person has the exclusive right in and to the resultant objective expression oftheir intellectual activity, including any means creat ed and used for identifying  a legal entity, or a
product, work, or service produced or offered by a physical person or legal entity (e.g., firm’s name,product brand, trade mark, service mark, etc.).   Article 32 also provided that a third person could usesuch an "objective expression" only with the consent of the person/entity holding the right thereto.These intellectual property provisions were contained in Part I of the Civil Code. The Anti-monopolyLaw, which proscribed "unscrupulous competition," included "the unauthorized use of  a trademark,name or marking of goods;  the unauthorized duplication of  a form, package or appearance of goods"and "the unauthorized use or disclosure of confidential scientific, technical, engineering orcommercial information".
(a) Copyright and related rights, including rights of performers, producers of phonograms
and broadcasting organizations
136. He further added that Part I of the Civil Code provides generally for the protection of rights of
authorship.  Article 7 provides that intellectual property rights arise as a consequence of the creationof works of science, literature, arts, invention and other products of intellectual activity.  However,further implementing legislation was needed. Kyrgyzpatent’s Temporary Regulations on the OfficialRegistration of Computer Programs, Databases and Integrated Circuit Topologies extend copyright
protection to computer programs - other than computer programming languages - and to databases,which were treated as compilations. These Temporary Regulations provide the owner of such  aprogram, data base or  topology with the option of formally registering his copyright therein.  A draft
law On Copyrights and Related Rights which provided additional clarification of the rights of authors,
performers, producers of phonograms and broadcasting organizations was currently pending before
the Parliament.  The Law on Copyright and Neighbouring Rights, effective 23 January 1998,
regulated relations resulting from the creation of works of science, literature and art (copyright),
phonograms, performances, productions and broadcasts by cable and broadcast organizations
(neighbouring rights).
137. The representative of the Kyrgyz Republic stated that the Law on Copyright and
Neighbouring Rights enacted in December 1997 had brought the copyright regime of the
Kyrgyz Republic into full conformity with th e requirements of the Agreement on Trade-Related
Aspects of Intellectual Property Rights.    which  had entered into effect 23 January 1998 was in full
conformity with the requirements of TRIPs Agreement.WT/ACC/SPEC/KGZ/9
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(b) Trademarks, including service marks
124.138. He further added that Kyrgyzpatent’s Temporary Regulations on Industrial Property
provided for the registration of trade marks for a period of 10 years from the priority date.   Trade
marks and  service marks were both protected and treated in the same manner under this law.  A more
comprehensive draft trade mark law was currently pending before the Parliament.   In response to
questions from some members of the Working Party, the representative of the Kyrgyz Republic noted
that Article 21 of the draft Tradema rk Law provided for cancellation of a mark that has not been used
for 3 years.  In response to further questions, he noted that the Kyrgyz Republic’s proposed law "On
Trademarks, Service Marks and Appellations of Origin" was drafted to ensure compliance with the
Paris Convention.  The draft law did not require registration of well-known marks, but voluntary
registration for well-known marks was possible.  In compliance with Article 6bis of the Paris
Convention, the draft law (at Article 6) provided that "ma rks may not be registered as trademarks if
they were identical or sufficiently similar as to cause confusion with a well-known mark in the
territory of the Kyrgyz Republic."  To ensure that holders of well-known marks can enforce their
rights, the draft law provided for the same judicial remedies available under the existing regulations.
In addition, the draft law provided that a court may order seizure of counterfeit goods, as well as
criminal penalties for ongoing violations.  The provisions applied equally to cases involving
well-known and ordinary marks.  A mark was eligible for registration if it distinguished the goods and
services of one person or entity from similar goods and services of other persons or entities.  Verbal,
graphic, volumetric and other signs or their combinations could be registered as trade marks.
Article 6 of the draft law On Trade Marks, Service Marks and Appellations of Origin provided that
trade marks were not registrable  if they reproduced company names or parts thereof known in the
Kyrgyz Republic and were owned by other persons w ho obtained the right to use the name before the
trade mark application was filed if the trade mark application was for analogous goods.   The
representative of the Kyrgyz Republic said that the Law on Trademarks, Service Marks and
Appellations of Origin of Goods provided for the registration of a trademark, which was valid for ten
years from the date a conforming application is filed with the State Agency on Intellectual Property
(Kyrgyzpatent ).  Article 20 of this law provided for the nullification of the registration of a trademark
if it had not been used for three years.  Pursuant to Article 6bis of the Paris Convention on Protection
of Industrial Property, Article 5 of the Kyrgyz Republic Trademark Law provided that trademarks
which are similar to the extent likely to cause confusion with well-known trademarks within the
territory of the Kyrgyz Republic may not be registered.  Article 41 of the Trade Mark  Law provides
liability for the illegal use of a trademark.  Seizure and destruction of goods in respect of which a
trademark had been illegally used were listed among legal remedies.  Article 5 of the law provided for
the rejection of an application to register a trademark, which reproduced a trade name (in full or in
part) owned by others who have been  granted an earlier ownership right.WT/ACC/SPEC/KGZ/9
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139. The representative of the Kyrgyz Republic stated that the Law on Trade Marks, Service
Marks and Appellation of Origin of Goods enacted in December 1997 had brought the regime on
trade marks and service marks in the Kyrgyz Republic  into full conformity with the requirements of
the Agreement on Trade Related Aspects of Intellectual Property Rights.  the Law of the Kyrgyz
Republic on Trademarks, Service Marks and Appellations of Origin of Goods, passed by the
Legislative Assembly of the Parliament of the Kyrgyz Republic on 16 December 1997, signed by the
President of the Kyrgyz Republic on 14 January 1998, which had entered into effect 28 January 1998,
was in compliance with the requirements of TRIPs Agreement.
(c) Geographical indications, including appellations of origin
140. He further added that the current law contained no provisions regarding geographical
indications or appellations of origin.  The draft trade mark law pending before the Parliament
contained provisions on the protection of geographical indications and appellations of origin.  In
response to further questions from some members of the Working Party, he noted that under the draft
Law "On Restricting a Monopolistic Activity, Development and Protection of Competition" (at
Section 5, Article 19) appellations of origin were protected.  Remedies for infringement of protected
appellations of origin included: (i) account for illegal profits;  (ii) indemnif ication, including
indemnification for lost profits ;  and (iii) punitive damages.  The representative of the
Kyrgyz Republic added that the newly adopted Law of the Kyrgyz Republic On Trademarks, Service
Marks and Appellation of Origin of Goods gove rns relations involving the registration, legal
protection and use of trademarks, service marks and appellations of origin of goods.  For example,
Articles 27-38 of this law contain provisi ons on appellations of origin of goods.
141. The representative of the Kyrgyz Republic stated that the Law on Trade Marks, Service
Marks and Appellation of Origin of Goods enacted in December 1997 had entered into force on
28 January 1998 and had brought the regime on appellations of origin of goods in theKyrgyz Republic into full conformity with the requirements of the Agreement on Trade Related
Aspects of Intellectual Property Rights.
(d) Industrial designs
142. He noted that the Temporary Regulations on Industrial Property provided for the protection of
industrial designs for a period of 10 years from the priority date.  A priority date of up 6 months was
available to applicants that had established priority by first filing in another country.  Industrial
designs could be protected by an industrial design patent if the industrial design was new, original andWT/ACC/SPEC/KGZ/9
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industrially applicable.   The representative of the Kyrgyz Republic said that the recently adopted
Patent Law of the Kyrgyz Republic provided for the protection of industrial designs for ten years from
the priority date. Article 21 of the law provided an opportunity to establish a priority date from the
date an application was filed in a member state of the Paris Convention on Protection of Industrial
Property (conventional priority), if the application was filed with the State Agency on Intellectual
Property ( Kyrgyzpatent ) within 6 months from the indicated date. A limited grace period was
provided for disclosures by the author or person who obtained the disclosed information from the
author.  Excluded from protection were architectural structures and works contradicting the publicinterest or the principles of humanity.  In response to requests for clarification of the concepts ofcontradiction of  "principles of humanity", the representative of the Kyrgyz Republic stated that thedefinitions were not  based on official normative documents and could only be accompanied byreferences to sources which had a statement of humane ideas and moral-ethic standards formed in thesociety, in conformity with the international st andards set forth in the applicable international
agreements.
(e) Patents
143. He further noted that the Temporary Regulations on Industrial Property provided for the
issuance of invention patents having an effective period of twenty years from the priority date.   The
representative of the Kyrgyz Republic noted that the Patent Law of the Kyrgyz Republic provided that
the term of a patent was 20 years from the priority date. An invention was patentable if it was new,
has an inventive level and was industrially applicable.  Applications were to be filed withKyrgyzpatent and were examined on request of the applicant.  A grace period was established fordisclosures made by the inventor or a person who obtained the disclosed information from theinventor.  Certain works were deemed not to be inventions, for example, integrated circuit topologies,
which were generally not the subject of patent protection, because they lacked novelty or an inventive
step.  Integrated Circuits were protected in a separate Act currently pending before Parliament.
Similarly, patent protection was excluded for works contradicting the public interest or the principlesof humanity.  Importation satisfied the working requirement.
144. The representative of the Kyrgyz Republic stated that the Patent Law 
of the Kyrgyz Republic
passed by the Legislative Assembly of the Parliament of the Kyrgyz Republic on 16 December 1997,
signed by the President of the Kyrgyz Republic on 14 January 1998 which had become effective on 4
February 1998 enacted in December 1997  had brought the patent regime of the Kyrgyz Republic into
full conformity with the requirements of the Agreement on Trade Related Aspects of IntellectualProperty Rights.WT/ACC/SPEC/KGZ/9
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(f) Plant variety protection
145. He noted that plant varieties were excluded from patentability under the Temporary
Regulations on Industrial Property.  However, protection for both plant and animal breeding
achievements was provided under the Temporar y Regulations on Breeding Achievements.   The
representative of the Kyrgyz Republic said that pl ant varieties were not patentable pursuant to the
Patent Law of the Kyrgyz Republic.  However, the legal protection for plant varieties and animal
breeds was provided by the temporary regulation of breeding achievements.  The draft Law of the
Kyrgyz Republic on Legal Protection of Breeding Achievements was pending before Parliament and
was expected to be passed  in March-April 1998.
(g) Layout designs of integrated circuits
146. The representative of the Kyrgyz Republic stated that layout designs of integrated circuits
were protected under Kyrgyzpatent’s Temporary Regulations on the Legal Protection of  Computer
Programs, Databases and Integrated Circuit Topologies . the subject matter of a specific law that
incorporates the requirements of TRIPs.  The draft law had been reviewed and submitted to
Parliament and was expected to be passed in March 1998.  Until the enactment of the new law,
integrated circuits would continue to be governed by the Temporary regulation.
147. The representative of the Kyrgyz Republic stated that the Law On Topologies of Integrated
Circuits that would be adopted in April 1998 woul d bring the regime on protection of layout designs
of integrated circuits into full conformity with the requirements of the Agreement on Trade-RelatedAspects of Intellectual Property Rights.  The Working Party took note of this commitment.
(h) Requirements on undisclosed information, including trade secrets and test data
148. The representative of the Kyrgyz Republic He further
 stated that pursuant to Articles 22 and
34 of the Civil Code, protected undisclosed information, which is a trade secret, was also listed among
the objects of civil rights.  Such information must have actual or potential commercial value due to its
secrecy to third parties, it cannot be accessed on any legal basis and its holder must undertake
measures to keep it confidential.  Commercial secrets were the subject of separate legislation currently
pending before Parliament. provided that rights may arise in relation to information which contains an
official or commercial secret, which was of real  or potential commercial value by virtue of its
confidentiality, and when legitimate access to the information was restricted and when the owner ofWT/ACC/SPEC/KGZ/9
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the information had taken measures to protect its confidentiality.   Damages were available for
misappropriation of such information by persons who had obtained it illegally or who had divulged itin violation of a contractual obligation.  Article 202 of the Civil Code obliged a commercialrepresentative to keep confidential all information learned about sales transactions, even after thecompletion of his or her employment.  The Crimin al Code also provided penalties for copying
information from computers.
149. The representative of the Kyrgyz Republic stated that the Law on Commercial Secrets that
would be adopted in September 1998
 April 1998 would bring the regime on protection of commercial
secrets into full conformity with the requirements of the Agreement on Trade-Related Aspects ofIntellectual Property Rights.  The Working Party took note of this commitment.
(i) Any other categories of intellectual property
150. The representative of the Kyrgyz Republic stated that under Kyrgyzpatent’s Temporary
Regulations on the Procedure for the Registration of Licensing Agreements of 24 July 1995,relationships on "know-how" were protected.  Trade names were protected under the Civil Code and
under the trademark law.   Trade names were protected under Article 89 of the Civil Code which
provides that a legal entity, whose firm name has been registered, has an exclusive right to its use.
Article 89 provided that a legal entity which had first registered a particular business name had theexclusive right to use that name.  A person who unlawfully uses another firm's registered name wasobliged to stop using the name upon demand and to indemnify the registered owner for any damage
caused by such use.  
Kyrgyz patent had submitted for approval the draft regulation on firm names
which  would be in force until the adoption of the appropriate law.
3. Measures to Control Abuse of Intellectual Property Rights
151. The representative of the Kyrgyz Republic stated that Section 6.3 of the Temporary
Regulations on Industrial Property required that a patented invention be used within four years and a
patented industrial design or certified  utility model be used within three years from the date of grant.
Importation satisfied the working requirement.  Otherwise, any party could demand a licence from the
patent or certificate holder.  If the owner of the industrial property refused, such party could apply to
the Court for the grant of a compulsory licen ce, which the Court must grant unless the owner
demonstrates a good reason for the failure to use or the insufficient use.   Article 12 of the Patent Law
provided that in cases where an invention, utility model or industrial design was not used or usedWT/ACC/SPEC/KGZ/9
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insufficiently within three years from the date the patent is granted, any entity willing or prepared to
use the protected object (if the patent holder refuses to enter into a licensing agreement with the
entity) shall have the right to resort to court and file a petition requesting the grant of a compulsory
license.   Such license shall be granted if the patent holder fails to prove that insufficient use or non-
use of the object is caused by justifiable reasons .
4. Enforcement
(a) Civil judicial procedures and remedies
152. The representative of the Kyrgyz Republic stated that Article 10 of the Civil Code provides
for Court enforcement of recognized by the Civil Code.  Article 11 provided that the Court could
order (i) specific performance of an obligation, (ii) compensation of losses, (iii) exaction of penaltiesand other penalties. Article 14 stated that losses included both direct and consequential damages,including lost profits, as well as the profits made by the violator from the violation of the right.Compensation for moral harm was available under Article 16. The protection of honour, dignity andbusiness reputation was provided under Article 18, where remedies included both the right ofrefutation and compensation for  losses and/or moral harm.
(b) Provisional measures
153. He further added that section 22 of the Temporary Regulations on Industrial Property
provided for the resolution of disputes during the period when a temporary patent or protection
certificate was in effect for an invention, industrial design or utility model, on various issues related to
remuneration and on the right of prior use.  These disputes were adjudicated by the appropriate Court
in accordance with the legislation on civil procedure.  The representative of the Kyrgyz Republic said
that Article 35 of the Patent Law provided that  courts, within the limits of their authority, had
jurisdiction to hear the following disputes :  actions  involving copyright to industrial property, disputes
involving the issuance of protection documents, dete rminations as to who holds the patent, issues
involving compulsory licenses, actions for breach of  the exclusive rights to the object of industrial
property, as well as disputes concerning other economic rights of the patent owner.WT/ACC/SPEC/KGZ/9
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(c) Any administrative procedures and remedies
154. The representative of the Kyrgyz Republic stated that Article 10 of the Civil Code provided
that administrative enforcement of rights could be exercised only in cases stipulated by law and suchdecisions were appealable in Court.  The Temporary Regulations on Industrial Property provided that
issues relating to the examination of various forms of industrial property - patents and protection
certificates for inventions and industrial designs, protective certificates for utility models and
registration for trade marks and service marks, were to be handled through an appeal process within
Kyrgyzpatent .  The Patent Law and the Law on Trademarks, Service Marks and Appellations of
Origin of Goods provides for Appellate Council review of disputes involving :  inventions , utility
models, industrial designs, trademarks and service marks, as well as appellations of origin of goods.
The Appellate Council was the first body of revi ew for these disputes. The consumer protection
agency had administrative authority to address various forms of unscrupulous business activity,including passing off, the sale of items not fit for ordinary use (including mislabelled items of foodand drink) and trade mark counterfeiting.  Under Article 20 of the Anti-Monopoly Law, theAnti-Monopoly Department had the power to levy and collect fines for engaging in unscrupulousbusiness activity, including acts of passing off, trade mark misappropriation and unauthorizeduse/disclosure of  proprietary information.  In addition to fines, Article 22.1 provided that, uponsuccessful application by the Anti-Monopoly Departme nt to a commercial Court, a violator may be
required to surrender all profits made from the concerned activity.  Finally, Article 22.2 permitted  thedamaged person or legal entity to recover losses in an action filed in an appropriate Court.
(d) Any special border measures
155. The representative of the Kyrgyz Republic stated that Kyrgyz law did not currently provide
any special border measures related to intellectual property.  Articles 28 through 31 of the Customs
Code, enacted on 29 July 1997, and effective on 1 October 1997, provided for border measures related
to intellectual property.  These measures include the suspension of the release of goods where there is
an indication the goods violate intellectual property rights.WT/ACC/SPEC/KGZ/9
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(e) Criminal procedures
156. The representative of the Kyrgyz Republic stated that the Kyrgyz Republic was considering
the adoption of a new criminal code.  The current Criminal Code contained provisions concerning the
infringement of copyrights or patents, pro duction and sale of poor quality goods, dishonest
competition, use of trade marks without permission, cheating buyers and customers and copying
information from computers.  The current draft of the proposed criminal code contained provisions
establishing penalties for infringing copyrights or patents, using a trademark or company name
without permission, commercial espionage, disclosure of a commercial secret, dishonest competition
and cheating buyers and customers.  the new Criminal Code, passed 18 September 1997, had entered
into force on 1 January 1998.  Articles 150 and 191 detailed the offenses  for violation of copyright,
neighbouring rights and the rights of a patent holder, as well as for illegal use of trademarks, service
marks and appellations of origin of goods.
VII. POLICIES AFFECTING TRADE IN SERVICES
157. The Government of the Kyrgyz Republic entered into bilateral negotiations on market access
in Services, on the basis of the offer circulated to Working Party members in documentWT/ACC/SPEC/KGZ/3.  The results of those negotiations  are contained in Part II of the Annex to the
Protocol of Accession.
158. In response to requests for information, the representative of the Kyrgyz Republic stated that
since independence, the type, quality and number of service providers had been expanding rapidly.Private companies and individual suppliers now dominated the sector.   In 1995, the sector accounted
As of 1 January 1998, the service sector accounted for approximately 40 per cent of total
employment.  The service sector accounted for 31.6  approximately 30 per cent of GDP in 1994  1996
and 30  approximately 32 per cent in 1995  1997.  He provided the Working Party with a detailed
description of selected service industries and the legal regime governing each.  He noted that theprimary goals of State regulation of the services sector were:  protection of the life, health andeconomic interests of consumers, protection of the environment and suppression of unfaircompetition.  The Kyrgyz Republic pursued these goals through a system of regulation intended toimpose a minimum of burdens on service suppliers.   The regulatory system, with a relatively fewminor exceptions, was imposed equally on both foreign and domestic suppliers (includingforeign-owned domestic suppliers).  Therefore, foreign suppliers generally enjoyed national treatment.In addition, the Kyrgyz Republic did not discriminate among foreign suppliers of services on anybasis.
[to be completed]WT/ACC/SPEC/KGZ/9
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VIII. TRANSPARENCY
159. In response to questions from some members of the Working Party, the representative of the
Kyrgyz Republic stated that there was no legal requirement to publish all legislation andadministrative acts on WTO related issues.  However, in practice, all laws, decrees, and resolutionswere published in national newspapers.  In response, some members of the Working Party stated thatthe Kyrgyz Republic appeared to lack a legislative basis for the implementation of Article X of theGATT 1994 and other publication requirements of WTO Agreements, e.g., the requirement thatstandards be published for prior review and comment before finalization and implementation.  Thesemembers stated that the Kyrgyz Republic should make efforts to institute appropriate legislation onthese points.  
In response to those requests, the representative of the Kyrgyz Republic stated that
amendments to the Law on Normative Acts and Amendments to the Law on Publication of Laws had
been prepared to ensure the transparency of trade laws and regulations, and to ensure conformity with
Article X of the GATT 1994 and other pub lication requirements of WTO Agreements.
IX. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH
THIRD COUNTRIES
160. The representative of the Kyrgyz Republic stated that the Kyrgyz Republic had signed some
27 bilateral agreements relating to foreign trade in goods and/or services.  He provided the WorkingParty with a list of those agreements and a summary of the terms of the agreements.  The agreementshad been signed with 21 foreign countries (six of which were CIS countries).  All of the agreementswere currently in force and were generally concerned with the granting of mutually advantageousterms and conditions for trade and economic cooperation.
161. In response,
 Some members of the Working Party requested further information on whether
the Parliament expected to ratify the Customs Union with Russia, Kazakstan and Belarus by theKyrgyz Republic.  The representative of the Kyrgyz Republic stated that the agreement on joining the
Customs Union with Russia, Kazakstan and Belarus by the Kyrgyz Republic was currently in theLegislative Assembly for consideration.  Once approved by the Legislative Assembly, it would besubmitted to the Assembly of People's Representatives.  It was difficult to predict when the agreementwould be ratified.WT/ACC/SPEC/KGZ/9
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162. Some members of the Working Party asked how the Government of the Kyrgyz Republic
planned to meeting the requirement contained in the Customs Union Agreement that theKyrgyz Republic harmonise its customs and trade legislation with that of the other parties to theCustoms Union.  In response, the representative of the Kyrgyz Republic stated that the harmonisationof the Kyrgyz Republic's legislation connected with foreign trade with the Customs Union'srequirements were currently being studied at the level of ministries and State agencies of theKyrgyz Republic.
[to be completed]
X. CONCLUSIONS
163. The Working Party took note of the explanations and statements of the Kyrgyz Republic
concerning its foreign trade regime, as reflected in this Report.  The Working Party took note of thecommitments given by the Kyrgyz Republic in relation to certain specific matters which arereproduced in paragraphs ............................ of this Report.  The Working Party took note that thesecommitments had been incorporated in paragraph ... of the Protocol of Accession of theKyrgyz Republic to the WTO.
164. Having carried out the examination of the foreign trade regime of the Kyrgyz Republic and in
light of the explanations, commitments and concessions made by the representative of theKyrgyz Republic, the Working Party reached the conclusion that the Kyrgyz Republic be invited toaccede to the Marrakesh Agreement Establishing the WTO under the provisions of Article XII.  Forthis purpose, the Working Party has prepared the draft Decision and Protocol of Accession reproducedin the Appendix to this Report, and takes note of the Kyrgyz Republic's Schedule of SpecificCommitments on Services (document .......) and its Schedule of Concessions and Commitments onGoods (document .......) that are annexed to the Protocol.  It is proposed that these texts be adopted bythe General Council when it adopts the Report.  When the Decision is adopted, the Protocol ofAccession would be open for acceptance by the Kyrgyz Republic which would become a Memberthirty days after it accepts the said Protocol.  The Working Party agreed, therefore, that it hadcompleted its work concerning the negotiations for the accession of the Kyrgyz Republic to theMarrakesh Agreement Establishing the WTO.
[ To be completed ]WT/ACC/SPEC/KGZ/9
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APPENDIX
ACCESSION OF THE KYRGYZ REPUBLIC
Draft Decision
The General Council,
Having regard to the results of the negotiati ons directed towards the establishment of the
terms of accession of the Kyrgyz Republic to the Marrakesh Agreement Establishing the World Trade
Organization and having prepared a Protocol for the Accession of the Kyrgyz Republic,
Decides, in accordance with Article XII of the Marrakesh Agreement Establishing the World
Trade Organization, that the Republic of the Kyrgyz Republic may accede to the Marrakesh
Agreement Establishing the World Trade Organization on the terms set out in the said Protocol.WT/ACC/SPEC/KGZ/9
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PROTOCOL OF ACCESSION OF THE KYRGYZ REPUBLIC
TO THE MARRAKESH AGREEMENT ESTABLISHING
THE WORLD TRADE ORGANIZATION
DRAFT
The World Trade Organization (hereinafter referred to as the "WTO"), pursuant to the
approval of the General Council of the WTO accorded under Article XII of the Marrakesh AgreementEstablishing the World Trade Organization (hereinafter referred to as "WTO Agreement"), and theKyrgyz Republic,
Taking note of the Report of the Working Party on the Accession of the Kyrgyz Republic to
the WTO in document WT/ACC/KGZ .... (hereinafter referred to as the "Working Party Report"),
Having regard to the results of the negotiations on the accession of the Kyrgyz Republic to
the WTO,
Agree as follows:
Part I - General
1. Upon entry into force of this Protocol, the Kyrgyz Republic accedes to the WTO Agreement
pursuant to Article XII of that Agreement and thereby becomes a Member of the WTO.
2. The WTO Agreement to which the Kyrgyz Republic accedes shall be the WTO Agreement as
rectified, amended or otherwise modified by such legal instruments as may have entered into forcebefore the date of entry into force of this Protocol.  This Protocol, which shall comprise thecommitments referred to in paragraph  ...  of the Working Party Report, shall be an integral part of theWTO Agreement.
3. Except as otherwise provided for in the paragra phs referred to in paragraph  ... of the Working
Party Report, those obligations in the Multilateral Trade Agreements annexed to the WTO Agreementthat are to be implemented over a period of time starting with the entry into force of that Agreementshall be implemented by the Kyrgyz Republic as if it had accepted that Agreement on the date of itsentry into force.WT/ACC/SPEC/KGZ/9
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4. The Kyrgyz Republic may maintain a measure inconsistent with paragraph 1 of Article II of
the GATS provided that such a measure is recorded in the list of Article II Exemptions annexed to thisProtocol and meets the conditions of the Annex to the GATS on Article II Exemptions.
Part II - Schedules
5. The Schedules annexed to this Protocol shall become the schedule of Concessions and
Commitments annexed to the General Agreement on Tariffs and Trade 1994 (hereinafter referred toas the "GATT 1994") and the Schedule of Specific Commitments annexed to the General Agreementon Trade in Services (hereinafter referred to as "GATS") relating to the Kyrgyz Republic.  Thestaging of concessions and commitments listed in the Schedules shall be implemented as specified inthe relevant parts of the respective Schedules.
6. For the purpose of the reference in paragraph 6(a) of Article II of the GATT 1994 to the date
of that Agreement, the applicable date in respect of the Schedules of Concessions and Commitmentsannexed to this Protocol shall be the date of entry into force of this Protocol.
Part III - Final Provisions
7. This Protocol shall be open for acceptance, by signature or otherwise, by the Kyrgyz Republic
until .........
8. This Protocol shall enter into force on the thirtieth day following the day of its acceptance.9. This Protocol shall be deposited with the Director-General of the WTO.  The Director-
General of the WTO shall promptly furnish a certified copy of this Protocol and a notification ofacceptance thereto pursuant to paragraph 7 to each Member of the WTO and the Kyrgyz Republic.
10. This Protocol shall be registered in accordance with the provisions of Article 102 of the
Charter of the United Nations.
11. Done at Geneva this ... day of  .... one thousand nine hundred and ninety eight, in a single
copy in the English, French and Spanish languages each text being authentic, except that a Scheduleannexed hereto may specify that it is authentic in only one or more of these languages.WT/ACC/SPEC/KGZ/9
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ANNEX
SCHEDULE  - THE KYRGYZ REPUBLIC
Part I - Goods
[To be circulated ]
Part II - Services
[To be circulated ]
[To be completed]
__________