RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/KAZ/8/Rev.1 
3 September 2004 
 (04-3695) 
Working Party on the 
Accession of Kazakhstan Original:   English 
 
 
 
ACCESSION OF KAZAKHSTAN 
 
Factual Summary of Points Raised  
Revision  
 
 The attached Factual Summary of Points  Raised on the Accession of the Republic of 
Kazakhstan to the WTO has been prepared by the Secretariat, based on documentation being 
examined in the Working Party.  The Factual Summa ry will be reviewed at the next meeting of the 
Working Party. 
 
__________ 
 
  WT/ACC/SPEC/KAZ/8/Rev.1 
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TABLE OF CONTENTS 
 
INTRODUCTION................................................................................................................... ...............1  
DOCUMENTATION PROVIDED ......................................................................................................1  
INTRODUCTORY STATEMENTS....................................................................................................1  
ECONOMIC POLICIES.............................................................................................................. .........2  
- Monetary and Fiscal Policy..................................................................................................... .2 
- Foreign Exchange and Payments ............................................................................................4  
- Investment Regime.............................................................................................................. ......8  
- State Ownership and Privatization .......................................................................................12  
- Pricing Policies ............................................................................................................... .........16  
- Competition Policy............................................................................................................. .....20  
FRAMEWORK FOR MAKING AN D ENFORCING POLICIES .................................................21  
POLICIES AFFECTING TRADE IN GOODS ................................................................................25  
- Trading rights (the right to import and export)...................................................................25  
A. IMPORT REGULATION......................................................................................................27  
- Customs tariff................................................................................................................. .........27  
- Other duties and charges....................................................................................................... .28 
- Tariff rate quotas, tariff exemptions.....................................................................................28  
- Fees and charges for services rendered.................................................................................29  
- Application of internal taxes to imports ...............................................................................30  
- Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ........................................................................................................................ .............32  
- Customs valuation.............................................................................................................. .....34  
- Rules of origin ................................................................................................................ .........35  
- Other customs formalities ...................................................................................................... 36 
- Preshipment inspection ......................................................................................................... .37 
- Anti-dumping, countervailing duties, safeguard regimes ...................................................38  
B. EXPORT REGULATION......................................................................................................39  
- Customs tariffs, fees and charges for serv ices rendered, application of internal 
taxes to exports............................................................................................................... .........39  
- Export rest rictions ............................................................................................................ ......41  
- Export subsidies ............................................................................................................... .......42  
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .........................43  
- Industrial policy, including subsidies....................................................................................43  
- Technical barriers to trade .................................................................................................... 46 
- Sanitary and phytosanitary measures...................................................................................49  
- Trade-related investment measures ......................................................................................53  WT/ACC/SPEC/KAZ/8/Rev.1 
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-
 State-trading entities......................................................................................................... ......54  
- Free zones, special economic areas........................................................................................55  
- Government procurement......................................................................................................56  
- Trade in ci vil aircraft........................................................................................................ ......57  
- Transit........................................................................................................................ ..............57  
- Government-mandated counter-trade and barter...............................................................58  
- Agricultural policies.......................................................................................................... ......58  
TRADE-RELATED INTELLECTUAL  PROPERTY REGIME....................................................62  
General........................................................................................................................ ..........................62  
- Industrial property protection...............................................................................................62  
- Responsible agencies for policy formulation and implementation .....................................63  
- Participation in international intellectual property agreements ........................................63  
- Application of national and MFN treatment to foreign nationals......................................64  
Substantive Standards of Protection, Including Procedures for the Acquisition and 
Maintenance of Intellect ual Property Rights .......................................................................65  
- Copyright and related rights..................................................................................................6 5 
- Trademarks, including  service marks...................................................................................66  
- Geographical indications, including appellations of origin.................................................67  
- Industrial designs............................................................................................................. .......69  
- Patents........................................................................................................................ ..............69  
- Plant variety protection....................................................................................................... ...72 
- Layout designs of integrated circuits ....................................................................................72  
- Requirements on undisclosed information, including trade secrets and test data............72  
- Measures to Control Abuse of Intellectual Property Rights...............................................73  
Enforcement .................................................................................................................... .....................75  
- Civil judicial procedures and remedies.................................................................................75  
- Provisional measures ........................................................................................................... ...76 
- Administrative procedures and remedies.............................................................................77  
- Special border measures........................................................................................................ .78 
- Criminal procedures............................................................................................................ ...79 
POLICIES AFFECTING TRADE IN SERVICES...........................................................................80  
Transparency................................................................................................................... .....................82  
- Publication of information on trade......................................................................................82  
- Notifications.................................................................................................................. ...........83  
- Trade Agreements............................................................................................................... ....83  
CONCLUSIONS .................................................................................................................... ..............84   WT/ACC/SPEC/KAZ/8/Rev.1 
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ANNEX I – Laws, Regulations and Other Information Provided to the Working Party 
of Kazakhstan.................................................................................................................. ........85  
ANNEX II – List of National Companies and Joint Stock Companies with State Shares ............93  
ANNEX III – List of Services Provi ded by Natural Monopolies .....................................................97  
ANNEX IV - Excise Tax Rates Applied to Dom estically Produced and Imported Goods 
(approved by the Resolution of the Government of the Republic of Kazakhstan 
No. 137 dated 28 January 2000)...........................................................................................103  
ANNEX V - A. List Of Goods Subject to Impo rt and Export Licensing (approved by the 
Resolution No. 1037 of the Government of the Republic of Kazakhstan (RK) on 30 June 1997).................................................................................................................. .......105
 
ANNEX V - B. List of Goods, which Export Conducted under Licence in Accordance 
with International Obligations of the Republic of Kazakhstan (approved by the Resolution No. 1037 of the Government of the Republic of Kazakhstan оn 30 
June 1997)..................................................................................................................... .........111
 
ANNEX VI – Export and Impo rt Licensing Rules .........................................................................115  
ANNEX VII – List of Goods Subject  to Non-Tariff Measures ......................................................117  
ANNEX VIII – Electric Power Delivery by KEGOC .....................................................................119  
ANNEX IX – Establishing of Decreasing Coefficients of Railway Tariffs on 
Transportation of Different Types of Goods for the Year 2002 .......................................120  
ANNEX IX - Establishing of Decreasing Coefficients of Railway Tariffs on 
Transportation of Different Types of Goods for the Year 2003 .......................................122  
   WT/ACC/SPEC/KAZ/8/Rev.1 
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 INTRODUCTION 
1. The Government of the Republic of Kazakhs tan applied for accession to the World Trade 
Organization (WTO) on 29 January 1996.  At its meeting on 6 February 1 996, the General Council 
established a Working Party to examine the appli cation of the Government of the Republic of 
Kazakhstan to accede to the WTO under Article XII of the Marrakesh Agreement establishing the 
World Trade Organization (document WT/GC/M/9).  The terms of reference and the membership of 
the Working Party are reproduced in document WT/ACC/KAZ/2/[Rev.17]. 
2. The Working Party met on 19-20 March and 9 October 1997 under the Chairmanship of 
H.E. Mr. B. Ekblom (Finland) and 9 October 1998, 12-13 July 2001, 13 December 2002 under the 
Chairmanship of H.E. Mr. P. Huhtaniemi (Fin land) and 4 March 2004 a nd 15 September 2004 under 
the Chairmanship of H.E. Mr. V. Himanen (Finland). 
DOCUMENTATION PROVIDED 
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of the Republic of Kaza khstan (WT/ACC/KAZ/3 and Addendum 1), a Survey 
of the Foreign Trade Regime of the Republic of Kazakhstan (WT/ACC/KAZ/40 of 30 April 2003), 
the questions submitted by members of the Working Party on the foreign trade regime of the Republic 
of Kazakhstan, together with the replies th ereto (WT/ACC/KAZ/6 with Addenda 1 and 2, 
WT/ACC/KAZ/10, WT/ACC/KAZ/11, WT/ACC/KAZ/14, WT/ACC/KAZ/22, WT/ACC/KAZ/37 with Addenda 1-3 and Corrigendum  1 to Addendum 3), and othe r information provided by the 
authorities of the Republic of Kazakhstan (WT/ACC/KAZ/8, WT/ACC/KAZ/12, WT/ACC/KAZ/19, 
WT/ACC/KAZ/24, WT/ACC/KAZ/25, WT/ACC/KAZ/26, WT/ACC/KAZ/27, WT/ACC/KAZ/27/Rev.1, WT/ACC/KAZ/28, WT/ACC/KAZ/29, WT/ACC/KAZ/30, WT/ACC/KAZ/31, WT/ACC/KAZ/32, WT/ACC/KAZ/32/Rev.1, WT/ACC/KAZ/32/Rev.2, WT/ACC/KAZ/34, WT/ACC/KAZ/34/Rev.1, WT /ACC/KAZ/34/Rev.2, WT/ACC/KAZ/35, 
WT/ACC/KAZ/41, WT/ACC/KAZ/43, WT/ACC/KAZ/44, WT/ACC/KAZ/45, WT/ACC/KAZ/46, 
WT/ACC/KAZ/47, WT/ACC/KAZ/48), including the legi slative texts and other documentation listed 
in Annex I. 
INTRODUCTORY STATEMENTS 
[to be completed] WT/ACC/SPEC/KAZ/8/Rev.1 
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 ECONOMIC POLICIES  
- Monetary and Fiscal Policy 4. The representative of Kazakhstan stated that , according to Law No. 2155 "On the National 
Bank of the Republic of Kazakhstan"  of 30 March 1995, the main objective of the monetary policy of 
the National Bank of Kazakhstan (NBK) was to ma intain price stability.  To accomplish this, the 
NBK focused on: (i) formulating and implementing a national monetary policy; (ii) maintaining an 
efficiently functioning payments system; (iii) pr oviding foreign exchange re gulation and control; and 
(iv) maintaining a stable financial system.  Ka zakhstan had a two-tier banking system, in which the 
National Bank represented the upper (first) tier of  the banking system while all other banks 
represented the lower (second) tier.  The National Bank also performed the function of a lender of last 
resort and was entitled to carry out other operations in accordance with the decisions of its Board.  
The NBK maintained a free-floating exchange rate of the national currency (Tenge - KZT).  When 
necessary, however, the National Bank intervened to  prevent exchange rate fluctuations caused by 
speculative surges.  Since 1998, the National Bank did not finance the state budget deficit.  She provided the list of laws regulating the functions of the National Bank in the relevant section of 
document WT/ACC/KAZ/50. 
5. In order to conduct its monetary policy, th e NBK: provided loans to commercial banks; 
accepted deposits in national and fo reign currencies; undertook interv entions on the foreign exchange 
market; issued short-term notes; traded with government and other securities (with the right to 
repurchase REPO); and provided commercial bills refina ncing.  The instruments used by the NBK for 
the conduct of monetary policy included setting the official refinancing rate, interest rates and 
establishing minimum reserve requirements.  At present the official refinancing rate was at 7 per cent, 
slightly exceeding the average inflation rate.  The National Bank regularly carried out REPO 
(repurchase) operations in order to regulate liquidity  in second-tier banks.  The official REPO rate 
was currently 4.5 per cent ± 1.5 per cent spread, wher eas the "overnight" interest rate was 8 per cent.  
The minimum reserve requirement, ca lculated as a percentage of th e total amount of liabilities less 
liabilities to banks, was currently set at 6 per cent.   In exceptional cases, wh en it was impossible to 
slow down inflationary pressures by indirect met hods of monetary regulati on, the National Bank had 
the right to introduce direct quantitative restrictions  for certain operations.  Yet, since introducing the 
national currency in 1993, the National Bank had no t applied maximum interest rates on transactions 
and since 1995 no restrictions on the volume of credit existed. 
6. She noted that in view of the announced tran sition to European Union standards, the NBK 
shifted its policy from exchange rate targeting to in flation targeting.  In this context, the National  WT/ACC/SPEC/KAZ/8/Rev.1 
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 Bank would develop inflation guidelines based on a "c ore inflation" index reflecting main inflationary 
pressures.  The National Bank also continued its ef forts in developing a "transmission mechanism 
model", which would allow assessment of core infl ation changes in response to changes in REPO 
rates and thus increase transparency and public c onfidence in the National Bank's monetary policy.  
The goal of the National Bank's monetary policy for th e next three years was to achieve and maintain 
an annual average "core inflation" rate within th e range of 4-6 per cent for 2004 and 3-5 per cent for 
2005-2006.  A lower inflation rate was expected to  allow a gradual reduction of the National Bank's 
interest rate to 5.5 per cent by 2006, a devel opment which would have a positive economic impact 
through lowering the cost of debt servicing. 
7. In response to questions on the currency regime , the representative of Kazakhstan stated that 
liberalization of currency regulation and currency co ntrol, including elimination of excessive barriers 
to operations with foreign assets of residents, would become a major goal.  To control risk related to 
currency operations, Kazakhstan intended to develop efficient prudential regulation and risk 
management tools used by banks, pension funds and insurance companies.  
8. Concerning requests for information on Kazakhstan's tax system, the representative of 
Kazakhstan replied that the 2001 Ta x Code set out the tax system and changes thereto over recent 
years.  The central objectives of Kazakhstan's tax policy were to increase state budget revenues 
through expansion of the tax base, to encourage c itizens to declare their income and to stimulate 
consumer demand by reducing the wage tax.  Ac cordingly, as of 1 January 2004, the government 
effectively reduced the rate of individual income tax.  It introduced preferential tax treatment for 
industries investing in the petrochemical sector and it set up special tax treatment for companies 
operating in special economic zones (Information Technology Parks), investing in information 
technology research and development.  The main ta xes introduced by the new Code included (rates as 
of 1 January 2004): corporate income tax (30 per cent) , social tax (20 per cent to 7 per cent, according 
to a regressive scale), individual income tax, prope rty tax (1 per cent), land tax, transport tax, value 
added tax (15 per cent) and excise tax.  
9. She noted that Kazakhstan also introduced a new tax regime for oil operations designed to 
increase state budget revenue from the export of crude oil.  The new tax regime only applied to new 
contractual obligations and did not have retroactiv e force.  Taxes were imposed on subsurface users 
(taxpayers involved in mineral e xploration and extraction activities) according to either of two tax 
regimes.  Model 1 - licensing - offered a regime in which the subsurface user was subject to all taxes 
affecting ordinary taxpayers, as well as specific tax es such as rent tax on the export of crude oil, 
excess profits tax, royalties and bonuses.  Model 2 - Production Sharing Agreements (PSA) – offered WT/ACC/SPEC/KAZ/8/Rev.1 
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 a regime in which the subsurface user was bound by  the tax conditions stipulated in the PSA in 
accordance with the provisions of the tax legisla tion which applied on the date the contract was 
signed.  In this model, the conditions of the PSA were fixed and could not be changed due to 
subsequent changes in legislation with out the agreement of both parties.  
10. Asked to provide information on the main s ources of federal revenue, as well as the main 
expenditures, the representative of Kazakhstan sai d that federal budget receipts for 2003 represented 
23 per cent of GDP (24.5 per cent higher than in 2002).  Total expenditures for 2003 amounted to 
24 per cent of GDP, resulting in a 1 per cent budget de ficit.  Tax revenue accounted for 92.7 per cent 
of total revenue in 2003 with corporate income tax (26.7 per cent), value added tax (22.6 per cent) and 
social tax (15.4 per cent) representing the main re venue sources.  Main expenditures in recent years 
were directed towards social assi stance (5.4 per cent of GDP in 2003), education (3.3 per cent) and 
healthcare (2.0 per cent).  The budget deficit in 2004 was expected to stay below 1.9 per cent of GDP.   
11. She further noted that the Budgetary Code No . 548 of 24 April 2004, which would enter into 
force on 1 January 2005 (replacing Law No. 357 "On Budgetary System" of 1 April 1999), would lay 
down the basic provisions and principles of the budgetary system and would introduce the use of 
medium-term budgetary pl anning.  A medium-term fiscal polic y package for 2005-2007 would allow 
the government to pursue budgetary policies consiste nt with its social and economic development 
plan.  Priority sectors for the allocation of budge tary resources would include agriculture, social 
development, health, education, research and deve lopment, and the preservation of cultural/historic 
heritage.  Gradual reduction of the budget deficit and restructur ing of the national debt would 
continue to be important policy goals. 
- Foreign Exchange and Payments 
12. The representative of Kazakhstan stated that Ka zakhstan had accepted the obligations of the 
IMF Agreement Article VIII and ha d established full current account  convertibility in 1996.  Under 
the Law "On Currency Regulation" of 24 Decemb er 1996 (WT/ACC/KAZ/6/Add.2 refers (amended 
by Laws No. 154-1 of 11 July 1997; No. 277-1 of 9 July 1998; No. 431-1 of 16 July 1999; No. 154-II of 30 January 2001)), and Law No.411-II "On Changes and Amendments to Legislative Acts of the 
Republic of Kazakhstan on Banking,  Currency Regulation and Currenc y Control" of 8 May 2003, 
exchange transactions between residents and non-r esidents were subdivided into current account 
transactions and capital account transactions.   
13. She noted that in accordance with Article 3 of the Law "On Curre ncy Regulation", the 
President had the right to restrict or susp end any currency transactions for the purpose of  WT/ACC/SPEC/KAZ/8/Rev.1 
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 implementing international obligations and in emer gency situations.  The same law authorized the 
National Bank to impose restrictions on the curre ncy of payment used in export transactions, on 
surrender requirements applied to export receipts in  foreign currency, and on the form of payment 
under specific import and export contracts in order to  ensure the economic safety of Kazakhstan.  
Since the enactment of this currency legislation, however, there were no instances of restrictions 
enforced either by the President or the National Bank.   
14. Asked about fees or restrictions associated with the acquisition of foreign currency, the 
representative of Kazakhstan replied that the Rul es for Currency Operations , adopted by Resolution 
No. 115 of the Board of the National Bank of 20 April 2001 (WT/ACC/KAZ/4 refers) regulated 
foreign currency acquisition and transfers of natio nal and foreign currency in Kazakhstan.  No 
restrictions applied to the export of national curre ncy from Kazakhstan by resi dents and non-residents.  
Coins of precious metals issued by the Nati onal Bank and recognized as legal tender could be 
imported to or exported from Kazakhstan without any restrictions.  Currency covered by the 
provisions of Article 1-1 of the Law "On Currency Regulation" could be imported in Kazakhstan by 
residents and non-residents without any restrictions following the procedures set out in the legislation.  
Resident and non-resident natu ral persons could buy foreign currency in Kazakhstan through 
authorized banks without any fees, prior depos it requirements or foreign currency surrender 
requirements.  They could export payment documents,  such as bills and checks, with their face value 
in a foreign currency, without any restrictions.  While non-resident natu ral persons could export 
foreign currency in cash equivalent to US$ 3,000 - without having to produce a declaration proving 
that the sum had previously been imported and provi ng the currency's legal origin - resident natural 
persons could export the equivale nt of US$ 10,000.  In both cases, if the amount exported exceeded 
US$ 3,000, it had to be declared in writing to the customs.   
15. She noted that while non-resident legal entities could purchase foreign currency in 
Kazakhstan, except if using loans obtained in Kazakhsta n, certain restrictions applied with regard to 
the acquisition of foreign currency by resident lega l entities.  Resident legal entities could purchase 
foreign currency for the purposes of:  (i) money transfers and payments to non-residents; (ii) fulfilment of liabilities related to loans in  foreign currency granted by authorized banks; 
(iii) official travel and other related expenses incu rred outside Kazakhstan; (iv) transfers to corporate 
accounts in accordance with provisions stipulated  in relevant norms of the National Bank; 
(v) repayment of deposits to natural persons in fo reign currency (to corporations based on collective 
guarantees (insurance) of deposits of  natural persons); (vi) foreign exchange operations in cash by 
legal entities licensed by the National Bank to perfo rm foreign exchange operations in cash; and 
(vii) any other purposes stipulated in the relevant le gislation.  There were no surrender requirements, WT/ACC/SPEC/KAZ/8/Rev.1 
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 except for the requirement that the amount of unused foreign exchange by the resident legal entity had 
to be sold in exchange for national currency w ithin 30 calendar days starting from the date of 
acquisition. 
16. Asked about payments and money transfers, sh e replied that payments and money transfers 
for transactions between residents and non-reside nts could be conducted only through their bank 
accounts, in any currency the parties had agreed upo n, except in cases provided for in the normative 
acts of the National Bank.  Both residents and non-r esidents had to submit to the authorized bank 
documents required by the legislation.  There were no restrictions associated with the transfer of national or foreign currency to bank accounts of non-r esidents in authorized banks, provided that the 
transfer was undertaken in line with established procedures.   
17. She noted that under Law No. 2200 "On Licensing" of 17 April 1995 (WT/ACC/KAZ/4 
refers), currency transactions from residents to non-r esidents had to be licensed by the National Bank.  
Under the 2003-2004 Program for Liberalization of  the Currency Regime (adopted by Government 
Resolution No. 103 of 29 January 2003), new Licens ing Rules of Transactions Related to Currency 
Valuables were developed and approved by the Na tional Bank Board Resolution No. 257 of 25 July 
2003.  A General Licence was issued to residents for retailing and provision of foreign services in 
cash.  An Operational Licence was issued to resi dents wishing to open accounts abroad (except if 
opening an account in countries having the required sovereign credit rating), including accounts in the 
national currency of Kazakhstan.  A Single Licen ce was issued to residents for capital account 
transactions related to export/import operations involving:  (i) adva nce payments for imports for a 
period exceeding 180 days; (ii) extension of the pe riod for receipt of export earnings beyond 180 days 
of the date of actual export; and (iii) receipt of expor t earnings after more than 365 days of the date of 
actual export (for goods included in a Schedule appr oved by the Government).  The Single Licence 
was also required for residents wishing to:  (i) invest abroad, excluding dealing bank operations and 
investments in international development institutio ns, securities of credit-worthy non-resident issuers, 
authorized capital of legal entities of OECD me mber-countries, and, under certain conditions, 
investments in member-states of bilateral investme nt promotion agreements with Kazakhstan; (ii) 
make pension fund investments in foreign securities; (iii) make transfers to non-residents to pay for 
real estate, except for property of  the same status; (iv) grant loans to non-residents for a period 
exceeding 180 days; (v) transfer currency valuables to non-residents for beneficial ownership; (iv) receive loans from non-residents to the account of th ird parties, except for state-guaranteed loans and 
insured loans, used to finance export/import opera tions.  She further noted that provisions for 
simplified licensing procedures had also been intr oduced.  A member of the Working Party asked 
whether the IMF had approved such licensing requirements.  WT/ACC/SPEC/KAZ/8/Rev.1 
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 18. Asked whether the licensing procedure was automatic, the representative of Kazakhstan 
stated that restrictions were purely procedural  and that under current licensing procedures, the 
regulator could not refuse an application on grounds  of the economic viability of the operation or the 
financial capability of the resident.  To apply for a licence, a resident was required to submit: (i) a 
standard application form; (ii) a package of doc uments providing all relevant information on the 
currency transaction and/or proof that the appli cant met the requirements for currency valuables 
operations; and (iii) a proof of payment of the licen sing fee in the amount of ten monthly calculation 
indices (MCI, an annually determined indicator u sed for calculating pension payments, benefits and 
other social payments, 1 MCI = KZT 919 for 2004) .  When the National Bank approved the submitted 
documents and the operation was deemed  consistent with the requirement s of the relevant legislation, 
the licence was issued within one month of the date  of receipt of the last required document.  She 
added that authorized banks were not allowed to ca rry out currency transactions of residents without a 
licence.  She also confirmed that no deposit re quirements were necessary to obtain a licence.   
19. Some members of the Working Party asked th e representative of Kazakhstan to further 
describe existing capital account controls.  The repr esentative of Kazakhstan explained that, in order 
to achieve macroeconomic stability, Kazakhstan had introduced a currency re gulation system based 
on licensing requirements for transactions related to capital flight and on transaction passports for 
foreign trade operations (explained in detail in sec tion on Other Customs Formalities).  She further 
added that under the Rules of Registration of Ca pital Account Transactions and Opening of Foreign 
Bank Accounts adopted by Resolution of the Boar d of the National Bank No. 225 of 4 July 2003, 
residents were required to register with the Na tional Bank for capital account transactions resulting in 
receipts exceeding the equivalent of US$ 100,000.  These transactions included:  (i) borrowing from non-residents for more than 180 days, including fina ncial leasing; (ii) crediting by non-residents of 
import and export operations; (iii) direct and portfolio investment of non-residents into Kazakhstan, 
including residents' initial public offerings and issue of depositary receipts for securities; (iv) transfers 
of non-residents to residents as payment for a comp lete transfer of exclusive rights to intellectual 
property; (v) and transfers of non-residents to resi dents as payment for economic rights to real estate, 
with the exception of property of the same status .  She explained that a registration certificate was 
issued by the National Bank after a notification was made by the resident on a specific capital account 
transaction within 30 days of the date of contract enforcement.  To register, the resident needed to submit a standard application form, a contract for the currency transaction and documents proving 
his/her identity.  The National Bank could only refuse registration becau se of inconsistency with the 
provisions of the Civil Code but not on grounds of the economic viability of the transaction.  The 
National Bank charged no fees for registration and the certificate was issued within ten business days 
of the date of receipt of the application package.  This registration procedure had been introduced for WT/ACC/SPEC/KAZ/8/Rev.1 
Page 8  
 
 the purpose of keeping a statistical record and for balance of payments analysis.  In response to 
questions, the representative of Kazakhstan clarifie d that these registration requirements applied only 
to the resident party to the transaction and not to non-residents. 
20. Some members of the Working Party asked how enterprises acquired rights to deal in foreign 
exchange, whether foreign enterprises were eligible to become licensed banks or exchange points, and 
whether enterprises other than banks could be a pproved.  The representativ e of Kazakhstan replied 
that operations with foreign currency, including thos e on behalf of clients, were performed by second 
tier banks and other financial ins titutions licensed by the Agency for Regulation and Control of the 
Financial Market and Financial Organizations, established in order to exercise regulatory and 
supervisory functions in relation to financial market institutions by Presidential Decree No. 1270 "On 
Further Improvement of the Public Management Sy stem" of 31 December 2003.  On the other hand, 
licenses for dealing with foreign exchange were is sued by the National Bank to legal entities solely 
involved in foreign exchange.  Any Kazakh legal entity could set up an exchange bureau by 
establishing a subsidiary solely involved in forei gn exchange.  A foreign natural person or a legal 
entity was not eligible to become  a licensed exchange point, but a partially or fully foreign-owned 
Kazakh legal entity could become one.  Thus, any bank registered in Kazakhstan as a Kazakh legal 
entity (even if 100 per cent foreign-owned) was eligible to become an authorized bank (licensed bank).  Branch and representative offices of foreig n banks, however, were not allowed to deal in 
foreign exchange until they were registered as  Kazakh legal entities.  The representative of 
Kazakhstan noted that a firm coul d engage in barter import/export of goods, without dealing in 
foreign exchange.   
21. Some members of the Working Party expressed  concern regarding the large quantity of 
licensing requirements for foreign exchange operatio ns under the current legislation and asked for 
specific information on Kazakhstan's plans to libera lize its foreign exchange and payments system by 
the year 2007.  The representative of Kazakhstan stat ed that the liberalization plans were outlined in 
the Currency Regime Liberalization Concept, appr oved by Resolution No. 369 of the National Bank 
Board of 11 September 2002.  
- Investment Regime 
22. The representative of Kazakhstan stated that  Kazakhstan had developed a sound legal 
environment which had helped the country attract so me US$ 23.4 billion in foreign direct investment 
for the period 1993-2003.  In May 2003 Standard and Poor's ha d upgraded Kazakhstan's long-term 
foreign currency credit rating from "BB" to "BB+" and the country's domestic currency credit rating  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 9 
 
 
 from "BB+" to "BBB-".  Kazakhstan had become th e first CIS country granted a Baa3 rating by 
Moody's and BB+ by Fitch IBCA.   
23. She further noted that important legislation to  implement international norms and standards 
had been enacted including Law No. 373 "On I nvestments" of 8 January 2003 (WT/ACC/KAZ/42 
refers), the Tax Code of 12 June 2001, Cust oms Code No. 401 of 5 April 2003, Insurance Law 
No. 126 of 18 December 2000, Law No. 232-1 "On Unfair Competition" of 9 June 1998 
(WT/ACC/KAZ/36/Add.2 refers), Law No. 272 "On Natural Monopolies" of 9 July 1998 
(WT/ACC/KAZ/18 refers), Presidential Decree No . 2350 "On Oil" of 28 June 1995 (WT/ACC/KAZ/4 
refers), Presidential Decree No. 2828 "On Subsoil and Subsoil Use" of 27 January 1996, Civil Code 
(General Section) of 27 December 1994; Civil Code (Special Section) of 1 July 1999 (WT/ACC/KAZ/4 refers), banking la ws and regulations and intellect ual property rights legislation. 
24. She further noted that the legal basis governi ng Kazakhstan's investme nt policy was provided 
by the Law "On Investments", which had replaced  Law No. 266-XIII "On Foreign Investments" of 
27 December 1994 and Law No. 75-I "On State Support of Foreign Investments" of 28 February 1997.  The new Law defined investment  as all kinds of property (except for goods 
destined for personal consumption), including leased  objects as of the date of the lease agreement, 
rights invested by an investor into  the charter capital of a legal entity, or contributions made to fixed 
assets used for entrepreneurial activities.  Legal protection of investments included:  full and 
unconditional protection of investors' rights; guarantee of indemnity for damages suffered by 
investors as a result of issuance of norms non-co mpliant with Kazakh le gislation and unlawful 
commissions or omissions of public officials; gua rantee of the stability of terms and conditions of 
agreements concluded by investors with the respect ive state agencies; guarantee of investors' use of 
income at their full discretion; guarantee of protection of investors' rights in case of nationalization and expropriation; and investment dispute settle ment regulations, including the possibility of 
international arbitration. 
25. She pointed out that the new mechanism for providing state support for investments had a 
number of considerable advantages.  It created a level playing field for both domestic and foreign 
investments and simplified the procedure for granting preferences, reducing significantly the 
maximum length of time allowed for processing of ap plications (30 business days).  The Law did not 
set minimum capital requirements for foreign investme nt, thus expanding the sphere of its application 
to small and medium-sized enterprises.  In orde r to create a favourable investment climate for 
diversified economic developmen t, thus facilitating technologi cal advancement and innovative 
development, the government introduced investme nt incentives that were granted if:  (i) the WT/ACC/SPEC/KAZ/8/Rev.1 
Page 10  
 
 investment activity was included in the List of pr iority sectors; (ii) there was investment in the 
acquisition of fixed assets for setting up new or expanding/upgrading existing production facilities; 
and (iii) the application contained sufficient proof  of the investor's financial, technical and 
organizational capacity to undertake the project. 
26. The current list of priority activities for invest ment preferences, as approved by Government 
Resolution No. 436 "On Some Issues of Enforc ing the Law "On Investments" of 8 May 2003, 
included 233 kinds of activities.  The authorized state agency in charge of investments was the 
Ministry of Industry and Trade.  It could grant i nvestment tax preferences, customs duties exemptions 
for imported goods and in-kind state grants.  
27. She noted that there were three types of investment tax preferences:  
- Corporate income tax preferences entitled the ta xpayer to gradual deduction of the cost of 
commissioned fixed assets from aggregate annual income in equal parts throughout the term 
of the preferential treatment.  The 30 per cent corporate income tax was assessed on the 
taxable income of taxpayers - legal en tities, as adjusted, less losses incurred; 
- Property tax preferences exempted the taxpayer from property tax on fixed assets newly 
commissioned under the respective investment proj ect. The balance sheet value of the taxable 
objects constituted their tax base.  Legal entities and individuals calculate d property tax at the 
rate of 1 per cent of the average annual value of taxable objects; and 
- Land tax preferences exempted the taxpayer from tax payable on plots of land used in the 
framework of the investment project.  Different types of land were taxed differently and were 
subdivided into three categories - agricultura l lands, populated lands and industrial lands.  
Rates were set according to area size, soil quality and yield class.  
Investment tax preferences applied from the date of  the agreement.  The duration of investment tax 
preferences depended on the volume of investments ma de into fixed assets, the maximum term being 
five years.  Legal entities operating under a spec ial tax regime and under subsurface use contracts 
were not granted any investment tax preferences; they were also not granted such preferences with 
respect to fixed assets received as in-kind state grant.   
28. She further noted that customs duties exemp tions on equipment/components, imported for the 
implementation of investment projects were gran ted if Kazakh-produced equipment/components were 
not available in adequate numbers or did not meet the requirements of the investment project.  Such 
exemptions could be granted for a one year period after the contract registration, with a possible  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 11 
 
 
 extension of up to five years.  Decisions regard ing customs duties exemptions and extensions were 
taken by the authorized investment body.  
29. She stated that in-kind state grants could take the form of land plots, buildings, constructions, 
machinery and equipment, computational devices,  measuring and regulating units, transportation 
vehicles (except for automobiles), industrial and house hold tools.  The Government or an authorized 
body, with the approval of the relevant state agenci es, would confer in-kind state grants for either 
ownership or temporary use.  Approval for in-ki nd state grants was obtained within 15 business days 
from the date of request.  In-kind state grants were  assessed at their market value, the maximum size 
not exceeding 30 per cent of the volume of investments made in the fixed assets of a given legal entity. 
30. The representative of Kazakhstan said that according to Article 3 of the Law "On 
Investments", there could be certain areas in which investment activities were limited or banned 
because of national security considerations.  Purs uant to Article 5 of Law No. 451-1 "On the Mass 
Media" of 23 July 1999, foreign legal entities, fo reign individuals and stateless persons were not 
allowed to directly or indirectly own, use, or ma nage more than 20 per cent of the capital of a mass 
media enterprise in Kazakhstan.  Pursuant to Article 22 of Law No. 2444 "On Banks and Banking 
Activities in the Republic of Kazakhstan" of 31 Au gust 1995, the charter capital of banks established 
and operating with foreign capital pa rticipation, could not exceed 50 per cent of the aggregate charter 
capital of all banks of Kazakhstan, except as permitted  by the authorized stat e agency.  Pursuant to 
Article 65 of Law No. 242-II "On Architectural, To wn-Building and Construction Activities in the 
Republic of Kazakhstan" of 16 July 2001, the share of foreign participation in joint ventures' charter 
capital could not exceed 49 per cent.  Pursuant to Article 5 of Law No. 85-II "On Guarding Activities" 
of 19 October 2000, foreign legal entities, legal entiti es with foreign participation, as well as foreign 
and stateless individuals, could not engage in any kind of guarding activities.  
31. She noted that pursuant to Article 23 of the La nd Code No. 442-II of 20 June 2003, foreign 
citizens and legal entities, as well as stateless persons, could privately own land plots, which 
contained industrial and non-industrial facilities, incl uding residential buildings (structures, facilities) 
and their compounds, and lands intended for servicing buildings (structures, facilities).  They could 
not, however, own lands intended for commercial agri cultural production and forestry, their rights to 
these lands being limited to a temporary land lease of te n years.  The rights of other countries to use of 
land in Kazakhstan were regulated by internatio nal agreements, ratified by Kazakhstan, whose 
provisions prevailed over dom estic legislation.   WT/ACC/SPEC/KAZ/8/Rev.1 
Page 12  
 
 32. Some members of the Working Party asked whethe r there were any restrictions or conditions, 
which did not apply to domestic entities, but were  applicable to foreign-owned legal entities of 
Kazakhstan investing in land or l easing subsurface rights.  The representative of Kazakhstan replied 
that there were no restrictions which did not appl y equally to domestically-owned Kazakhstan legal 
entities as well.   
- State Ownership and Privatization 
33. The representative of Kazakhstan said that state property management policy was regulated by 
Presidential Decree No. 2335 "On State-Owned Enterp rises" of 19 June 1995 (having the power of a 
law), Presidential Decree No. 2721 "On Privatizati on" of 23 December 1995 (having the power of a 
law), the Law "On Joint Stock Companies" of 10  July 1998, the Law "O n Limited and Additional 
Liabilities Partnerships" of 22 April 1998, the Civi l Code, and the Law "On Amendments to some 
Legislative Acts of the Republic of Kazakhstan pertaining to State Property" of 21 May 2002.  State 
property was privatized in accordance with Presiden tial Decree No.2721 "On Privatization" and other 
laws listed above.   
34. She noted that in January 2003 there were 5831 state-owned enterprises.  The state owned 
shares in 499 joint stock companies (JSC) and partne rships with limited liabilities (LLP).  There were 
13 legal entities, which had the status of national companies, including 11 joint stock companies and 
two state enterprises.  National companies were established in strategically important sectors of the economy by decision of the Government.  According to Government Resolution No. 246 "On 
Measures Aimed at Provision of Information Exch anges and Maintenance of the State Property 
Database" of 21 March 1998, state property was regist ered in the State Registry.  The list of national 
companies and joint stock companies with st ate shares is provided in Annex II.   
35. The representative of Kazakstan said that the large-scale privatization campaign (1991-2000), 
as well as the improvement of the state property management system, constituted an important 
component of the transition to a market econom y in Kazakhstan.  Since 1991 Kazakhstan had 
launched six two-year privatization programs.  Th e last one, covering the period 2003-2005, was still 
underway.  Three of the programs had focused on larg e scale privatization.  Since 1999 the focus had 
shifted to effective state property management.  Th e last two programs were developed within the 
framework of the State Property Management and Privatization Concept approved by Government 
Resolution No. 1095 of 21 July 2000.  During the period 1991 - 2004, 3745 joint stock companies and partnerships with limited liabilities had been privati zed via auctions (28,010), tenders (663), exchange 
(9,131) and direct sales (150).  During the same period, the sale of property complexes (including immovable property objects, incomplete constructi ons and other) resulted in 33,205 privatizations.   WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 13 
 
 
 Thus, in 2004 the private sector accounted for 75  per cent of GDP and the overall proceeds from the 
privatization process had totalled KZT 319 billion.  The representative of Kazakhstan added that in 
2004 the list of state property included state-owned shares of 75 joint stock companies and more than 
1,000 immovable property objects, property comple xes, machinery and equipment, transportation 
vehicles and other objects.  Information on state prope rty privatization methods used in 2003, data on 
results of the 1991-2004 privatization processes, as  well as information on the dynamics of state 
property privatization in various sectors of the economy in 1999-2003 is reproduced in Tables 1, 2 
and 3 below: 
Table 1 - State Property Privatization Methods Used in 2003  
(units) 
Auction Tender Name English Dutch Commercial Investment Stock 
Exchange Direct 
sale Total 
State shares 
(participation) 
in JSC and LLP 11 10 13 9 1 21 65 
Property 
complexes 1 16 9 5 0 3 34 
Other objects 514 1,278 80 39 0 96 2,007 
Total: 526 1,304 102 53 1 120 2,106 
 
Table 2 - Results of the privatization process, 1991-2004  
Years Privatization of 
property complexes, 
real estate property 
objects, incomplete 
construction, 
transportation and 
other objects (units) Privatization of state 
shares in JSC and 
LLP (units) Case-by-case 
privatization 
(units) Privatization 
proceeds (thousands 
of KZT) 
1991-1992 4,771     165 
1993 153   1 783,989 
1994 2,645   1 1,459,266 
1995 3,239 385 6 7,233,421 
1996 3,526 889 27 31,214,565 
1997 5,641 1,315 48 54,511,449 
1998 2,716 513 11 66,701,804 
1999 2,462 162   34,815,880 
2000 1,766 93   22,048,029 
2001 2,059 146   16,583,078 
2002 1,756 67   19,340,183 
2003 2,041 65   60,127,949 
1st quarter 2004 430 16   4,362,507 
Total 33,205 3,651 94 319,182,285 
 WT/ACC/SPEC/KAZ/8/Rev.1 
Page 14  
 
 Table 3 - Dynamics of State Property Privatiza tion in Various Sectors of the Economy, 1999-2003
 
 1999 2000 2001 2002 2003 
 (units) 
1. Privatized state shares in JSC and LLP, total  162 93 146 67 65 
Including:      
Industry 26 34 39 22 16 
Construction 12 4 10 3 5 
Agriculture 20 9 25 8 3 
Transportation and communication 40 15 13 15 4 
Trade in and repair of household goods 15 4 11 3 5 
Finance 2  4 1  
Health care   12 4 3 
Education     8 
Other objects 47 27 32 11 21 
2. Privatized property complexes, immovable 
property objects, incomplete construction, transportation and other objects  2,462 1,766 2,059 1,756 2,041 
TOTAL 2,624 1,859 2,205 1,823 2,106 
 (per cent of total) 
Industry 16.1 36.6 26.7 32.8 24.6 
Construction 7.4 4.3 6.8 4.5 7.7 
Agriculture 12.3  17.2 11.9 4.6 
Transportation and communication 24.7  8.9 22.4 6.2 
Trade in and repair of household goods 9.3  7.5 4.5 7.7 
Finance 1.2 9.7 2.7 1.5  
Health care  16.1 8.3 6.0 4.6 
Education  4.3   12.3 
Other objects 29.0 29.0 21.9 16.4 32.3 
TOTAL 100.0 100.0 100.0 100.0 100.0 
 
36. She noted that foreign investors were acco rded national treatment when state-owned 
enterprises were privatised and there were no le gislative acts which stipulated discriminatory 
treatment concerning foreign participation in the privatization process.  The State Privatization 
Committee was the privatization authority in Kazakhs tan.  The fixed assets of state-owned enterprises 
were sold as a result of a decision taken by th e authorized body (in certain cases also by the 
government).  Proceeds from the sale of state prope rty were used to generate revenue for the state 
budget.  State-owned enterprises were not allowed to start up, buy shares or participate in the charter 
capital of partnerships with limited liabilities.  
37. She further noted that two-staged tenders and sale of derivative securities had been introduced 
in Kazakhstan.  Most major strategic entities were  privatized through tenders, since this method 
promoted competition between potential buyers/investor s.  Sale of derivative securities was aimed at 
expanding the range of potential investors and ra ise the profile of Kazakh firms in global capital 
markets.  Another recent method of privatization was the Blue Chip Program.  Ten leading companies 
with state owned shares had been chosen as "blu e chips" for further sales: "Manghistaumunaigas",   WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 15 
 
 
 "Aktobemunaigas", "Kazzink", Ust-Kamenogorsk Titanium—Magnesium Works, Sokolovsk-
Sarybaisk Mining-Concentrating Production Asso ciation, "Aluminum of Kazakhstan", the 
transnational company "Kazchrom", People's Savi ngs Bank of Kazakhstan, "Kazakhtelecom" and 
"Kazakhmys".  At this stage, the state owned shares of "Manghistaumunaigas", "Aktobemunaigas", "Aluminum of Kazakhstan", "Kazakhmys", Pe ople's Savings Bank of Kazakhstan and Ust-
Kamenogorsk Titanium—Magnesium Plant" had been fully sold.  
38. Asked whether the privatization program c overed both agricultural and non-agricultural 
enterprises, the representative of Kazakhstan replied th at private ownership was the dominant type of 
organization for agricultural pr oduction and that important econom ic activities, such as public 
catering, trade, food and services, were no longer state-owned.  
39. She further noted that there were certain areas that  would not be subject to privatization, such 
as state property exempted from privatization until 2006, as approved by Presidential Decree No. 422 
of 28 July 2000 and Government Resolution No. 1587 of 24 October 2000.  National companies established in strategic sectors of the economy (o il and gas, mining and metallurgy, transport and 
communications, and energy and machine-building)  were also excluded from the privatization 
process.  However, a part of the state-owned sh ares in these companies could be scheduled for 
privatization in line with national economic priorities.  There were also other forms of state property - 
currently not subject to privatization - that could eventually be privatized following an assessment of 
the economic efficiency of continued state owners hip. These included: state-owned shares in joint 
stock companies; state participations in the char ter capital of Partnerships with Limited Liabilities; 
real estate property under constr uction; and property complexes a nd other property.  State-owned 
shares of companies that had a monopoly position in th e market, or those of strategically important 
companies, were privatized by government resolutions. 
40. A description of the rules and procedures gove rning the privatization process was publicly 
available from the Ministry of Justice or the Stat e Privatization Committee.  Information was also 
accessible through the internet ( www.minfin.kz
).  Forthcoming cash auctions were advertised in 
national mass media 30 days prior to auction date, sp ecifying the list of companies, terms, and auction 
procedures.  Large-scale public education campa igns about cash auctions  were conducted during 
December 1995 and January 1996.   
41. Asked about foreign acquisition of shares on the secondary market, the representative of 
Kazakhstan replied that foreign participants could purchase shares on the secondary market, from 
groups that have previously received shares in th e privatization of these enterprises, provided that 
such enterprises were listed on the secondary mark et.  However, agricultural producers, who had WT/ACC/SPEC/KAZ/8/Rev.1 
Page 16  
 
 privileges (received shares in exchange of liabilities) during the first and second stages of 
privatization, could not sell their shares to either foreign or domestic investors until their liabilities to 
the joint stock company were paid off.   
42. Asked whether foreign investors were eligible to participate in the investment funds that 
owned shares in privatized companies, the repr esentative of Kazakhstan referred to Presidential 
Resolution No. 1290 of 23 June 1993 that estab lished the legal framewo rk for Investment 
Privatization Funds (IPFs) and stated that there we re no conditions or restri ctions prohibiting foreign 
investors from purchasing shares in IPFs once they were converted to open-type JSCs. 
- Pricing Policies 
43. The representative of Kazakhstan stated that Presidential Decree No. 569 "On Price 
Liberalization Measures" of 3 January 1992 (i nvalidated by Presidential Decree No. 677 of 
4 September 2001) launched the process of price liber alization in Kazakhstan.  State regulation of 
prices (tariffs) was confined to services provided by natural monopolies, state-owned enterprises and companies with a dominant (monopolistic) position in given commodity markets.  
44. She noted that Law No. 272-II "On Natural M onopolies" (the Law, WT/ACC/KAZ/18 refers) 
of 9 July 1998 codified the rules of conduct in the market of natural monopolies.  "Natural monopoly" 
was a defined legal term and, according to Article  3 of the Law, a natural monopoly was deemed to 
exist in a market in which the creation of compe titive conditions for satisfying demand for a particular 
type of services (goods, works) was not possible or economically viable, due to the special 
characteristics of the production process used for pr oviding this type of services (goods, works).  The 
Law established a legal framework for state control over the activities of natural monopolies, while balancing consumers' interests vis-à-vis  the interests of natural monopolies.  State regulation was 
implemented through establishing:  (i) tariff rates (prices, fee rates); (ii) tariff estimates; (iii) temporary decreasing coefficients; and (iv) special  order for cost formation.  The coverage of the 
Law included both foreign and local legal entiti es (their branches and representative offices), 
individual entrepreneurs, public bodies and natural persons.  Articles 6 and 7 of the Law contained a 
detailed description of the rights and responsibilities of natural monopolies.   
45. The following activities were classified as natural monopolies:  (i) transportation of oil and oil 
products through the main pipe-lines; (ii) storage,  transportation of gas and gas condensate through 
the main and distribution pipe-lines, operation of g as-distribution units and connected gas distribution 
pipe-lines; (iii) transmission and distribution of electricity and heat, including production of heat by 
heating boilers using combined production methods; and services in technical dispatching of release  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 17 
 
 
 and consumption of electric energy; (iv) services of the main railroad network, including services of 
access roads, in cases where there were no other co mpeting access roads, and where construction of 
one was technically impossible or economically impractical; (v) air navigation services, services of 
seaports and airports; (vi) telecommunication services using local networks; (vii) services of 
waterworks and sewerage networks; (viii) public postal services; and (ix) other activities determined 
by the legislation of Kazakhstan.   
46. In response to a question, she confirmed that  this list was exhaustive and that detailed 
information on price regulations was contained in Annex III.  She clarified that there was no legal 
definition of the term "state monopoly" and that  legislation on natural monopolies did not prevent 
foreign and domestic private enterprises from co mpeting in sectors dominated by "natural 
monopolies".  She added that provisions of the Law did not extend to individual entrepreneurs and 
legal persons, engaged in activities classified as na tural monopolies, but relating to construction and 
operation of objects used for their own needs.  
47. She further noted that the Law "On Competiti on and Restriction of Monopolistic Activities" 
expanded the scope of anti-monopoly legislation and contained new definitions of dominant 
(monopolistic) position.  A company was deemed to have a dominant (monopolistic) position if it had 
more than 35 per cent share of the market.  More than one market participants were considered to 
have a dominant position if:  (i) the aggregate shar e of no more than three (previously two) major 
market participants accounted for 50 per cent or mo re in a specific commodity market; or (ii) the 
aggregate share of no more than four (previously th ree) major market agents accounted for 70 per cent 
or more in a specific commodity market.  The law regulated monopolistic behaviour and authorized the introduction of price controls when entities viol ated the anti-monopoly legislation by restricting 
competitive access to a particular market.  Th e Agency on Natural Monopoly Regulation and 
Competition Protection (the Agency) was Kazakhstan' s authorized body in charge of control and 
regulation of the activities of both natural m onopolies and entities with a dominant (monopolistic) 
market position.   
48. Asked whether the government had the authorit y to apply price controls on goods and 
whether such controls existed, the representative of Kazakhstan rep lied that the Agency regulated 
tariff rates for services provided by monopolies, while both domestic and export prices for goods were 
determined by market forces.  
49. Some members of the Working Party stated that enterprises that had monopoly positions in 
international trade and/or domestic distribution in Kazakhstan should be notified under Article XVII 
of the GATT 1994 and the 1994 Understanding.  Asked whether Kazakhstan intended to notify any of WT/ACC/SPEC/KAZ/8/Rev.1 
Page 18  
 
 its "natural" monopolies, she replied that natural monopolies in Kazakhstan acted as transport carriers 
with equal non-discriminatory access for all suppliers and operators.  No exclusive rights or special 
privileges were granted to these natural monopolies and, therefore, such natural monopolies did not 
fall under the definition of Article XVII of GATT 1994 or Article VIII of GATS. 
50. The representative of Kazakhstan noted that natu ral monopolies, regardless of their ownership 
status, were listed in the State Register, which wa s maintained by the Agency (and its local branches) 
and kept records of both national and local entities.  Asked to provide the list of natural monopolies, 
she referred to the Agency website www.antimonopoly.kz
, which contained all relevant information.   
51. She further noted that natural monopolies, listed in the Register were required to notify the 
Agency thirty days in advance about anticipated price increases and to submit documents providing justification for the proposed increases.  No more than two tariff changes were allowed in any given 
quarter (previously one change every two quarters).  The Agency reviewed the financial and technical 
aspects of the proposed tariff rate changes, while ta king into account operations of similar enterprises.  
Tariffs approved by the Agency could not be set below the value of costs required to provide the company's services.  Besides, the Agency had to allow for an adequate level of profits necessary to 
ensure the company's efficient operation.  Releva nt information was published regularly in the mass 
media. 
52. She further noted that the adoption of a Program  on Improvement of Tariff Policies of Natural 
Monopolies for the period 2002-2004 signalled the govern ment's intention to ensure the sustainable 
functioning of natural monopolies.  The program was based on new approaches to tariff formation and 
introduced forward-looking methods, such as a new calc ulation of profit rates of assets subject to state 
regulation and setting of medium-ter m tariff caps.  In particular, th e government planned to eliminate 
price controls for electrical power services, rail transport services, and certain telecommunication services.  
53. At a later stage she noted that the production of electrical power, natural gas (gas condensate) 
and other forms of energy was not considered to be  within the sphere of natural monopolies and prices 
for energy production were set by the market both dom estically and for export.  On the retail market 
for electricity, activities related to electrical power  supply would be transferred to the competitive 
market environment.  However, the transmission and distribution of electricity via the national 
company "KEGOC" was considered to be an activit y within the sphere of natural monopolies and was 
subject to state price regulation.  Resolution No .190 of 18 February 2004 approved the Concept of 
Further Development of Market Relations in the Electrical Power Industry for the period 2004-2006.  
The latter developed a model of the wholesale market for electrical energy, which included a  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 19 
 
 
 decentralized electricity trade market (working un der centralized dispatch management), electronic 
trade of electricity, and a market for main (syste mic) and supporting services.  A plan to dismantle 
vertically integrated monopolies had also been developed.  
54. Resolution No. 145 of 6 February 2004 appr oved the Program on Railway Transport 
Restructuring for the period 2004-2006.  Charges for services provided by carriers and companies 
operating in the railway transport sector for tr ansportation of commod ities, for both domestic 
consumption and export, would be established in a competitive market environment.  Charges applied 
by the national company "Kazakhstan Temir Zholy" fo r the use of the main railway infrastructure by 
other carriers and users would remain in  the sphere of natural monopolies.   
55. Some members of the Working Party requested more information on natural monopolies in 
the oil and gas pipelines industry and about the pr ocedures for allowing natural monopolies access to 
the oil pipelines.  They wanted to know what cr iteria were considered in allocating access to the 
pipelines and whether any form of guidance was provided by the government with respect to access allocation.  In response, the representative of Kazakhs tan replied that currently the registered natural 
monopolies in the sector were CJSC KazTransOil, CJSC  Intergas Central Asia and OJSC Takhat.  At 
present, Kazakhstan's oil was exported via two pipelin es: Atyrau (Kazakhstan) – Samara (Russia) and 
the Caspian Pipeline Consortium (CPC).  Oil transpor tation via CPC was regulated by shareholders of 
the Consortium.   
56. The volume of oil exports via Atyrau-Samara was determined by the pipeline's traffic 
capacity and was based on the annual intergovernment al agreement between Russia and Kazakhstan.  
The Ministry of Energy and Mineral Resour ces allocated the available quotas among Kazakh 
exporters proportionally to the volume of their pr oduction.  If a company planned to increase its 
production, it had to apply for additional quotas.  Once quotas were granted, the exporter had to sign 
an oil transportation agreement with CJSC KazTrans Oil – the pipeline operator.  No preferences were 
granted to either domestic or foreign companies in  awarding export quotas.  Uniform tariff rates were 
applied for the export of crude oil.  Some members of the Working Party pointed out that oil pipeline 
tariff rates were higher for transportation of exporte d oil, noting that GATT Article XI provided that 
"other measures" could not be used to prohibit or restrict the exportation or sale for export of any 
product destined for the territory of another member .  They stated that Kazakhstan was expected to 
eliminate this discriminatory pricing applicable to oil destined for export prior to its WTO accession.  
In response, the representative of Kazakhstan noted that Order of the Chairperson of the Agency 
No. 248-ОD of 13 December 2002 established the Price List (tariffs) for services of CJSC 
KazTransOil, according to which unified tariff ra tes applied both for domestic consumption and WT/ACC/SPEC/KAZ/8/Rev.1 
Page 20  
 
 export.  In order to support the production capacity of domestic oil refineries  and to slow down the 
growth of domestic prices of oil products, a decreasing coefficient of 0.46 was applied for the 
transportation of crude oil to Kazakh refineries.   Practice showed that the introduction of the 
decreasing coefficient did not constitute an export rest riction in the meaning of Article XI of GATT.  
To support this statement, she noted that Kazakhs tan produced 47,199 tonnes of crude oil in 2002, of 
which 41,530 tonnes were exported; and 51,256 t onnes in 2003, of which 45,187 tonnes were 
exported.  
57. Some members of the Working Party stated th at differential oil transport fees applied by 
Kazakhstan were in conflict with the provisions of Article V of GATT on freedom of transit.  In 
response, the representative of Kazakhstan clarif ied that there was no transit of oil through the 
territory of Kazakhstan and consequently, there were  no transit fees applied for using the two Kazakh 
pipelines for transit purposes.     
58. The representative of Kazakhstan stated that pr ice regulation also extended to utility services 
and public services.  Utility services were subject to  price controls because they were important for 
attracting investment and their de livery depended heavily on natural monopolies.  The Agency was in 
charge of regulating prices for certain utility ser vices, including heating, sewage systems, water 
supply, and electricity/gas distribution.  Production costs were regulated only for activities classified as natural monopolies and for entities enjoying do minant (monopolistic) position in a specific 
commodity market in cases stipulated by the Law "On Power Industry" and Law No. 144 "On 
Competition and Restriction of Monopolistic Activ ity" of 19 January 2001.  The representative of 
Kazakhstan added that public services were sole ly provided by public bodies and state-owned 
enterprises.  A comprehensive list of public ser vices, indicating agencies responsible for their 
provision, was provided in document WT/ACC/KAZ/6/ Add.2.  The procedure for collecting duties 
was regulated by the Tax Code.  She also stated  that, with the exception of fees on intellectual 
property, fees applied equally to foreign and national legal entities, as well as natural persons.  Public 
transport charges were controlled by the local  administrative bodies.  The representative of 
Kazakhstan further added that the list of postal ser vices, which belonged to the category of natural 
monopolies, was determined by the Law "On Postal Services" and tariff rates for those services were 
approved by the Agency.  Nevertheless, rates esta blished for private companies competing in this 
sector were not regulated by the Agency. 
- Competition Policy 
59. The representative of Kazakhstan stated that  the key objectives of domestic competition 
policy included creation of a favourable environm ent for development of free competition in major  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 21 
 
 
 domestic commodity markets (via elimination of market entry barriers), protection of consumer 
rights, and addressing issues related to unfair compe tition and agreements aimed at distorting market 
competition.  Legislation on competition policy w as developed in line with the Constitution of 
Kazakhstan and comprised of the relevant provisi ons of the Civil Code, Law No. 232 "On Unfair 
Competition" of 9 June 1998 (WT/ACC/KAZ/36/Add.2 re fers) and other related legislative acts.  The 
Law "On Unfair Competition" listed instances of un fair competition, introduced mechanisms for its 
prevention and elimination, and also defined responsibilities for actions that constituted unfair 
competition.  The law applied to domestic and fore ign natural persons and le gal entities, public bodies 
and local administration institutions.   
60. She noted that in 2004, to meet the objectives of  domestic competition policy, the government 
developed the Law "On Competition and Restriction of Monopolies" , which introduced fundamental 
legislative provisions for the protection of competiti on in line with established international practices.  
It also developed a program for the period 2004- 2006, which was aimed at reorganizing/downsizing 
monopolistic structures and natural monopolies.  The anti-monopoly body had the authority to suppress any instances of unfair competition and coll usion between competitors.  The representative 
of Kazakhstan added that the government also pl anned to enforce anti-monopoly regulation in the 
financial market, in line with the new Law "On St ate Regulation and Control of the Financial Market 
and Financial Organizations". 
61. In response to further questions the representa tive of Kazakhstan noted that agreements or 
coordinated activities between competing and non- competing market agents, as well as agreements 
concluded between public bodies, or between a public  body and a market agent were invalidated and 
prohibited in cases where they resulted in the restri ction of competition or infringement of rights of 
legal entities and natural persons.  Price regulation of companies enjoying a monopoly position in 
specific markets was only imposed by the authori zed body when legislative provisions were not 
respected or when there were cases of abuse of market power.   
FRAMEWORK FOR MAKING AND ENFORCING POLICIES  
62. The representative of Kazakhstan stated that the Republic of Kazakhstan was a Presidential 
State with power divided among the legislative, exec utive, and judicial bran ches.  The President was 
the Head of State and executive powers were ex ercised by the President and the Government.   The 
President was elected to seven year terms of office on the basis of universal, equal and direct suffrage 
by secret ballot.  The President appointed and could dismiss the members of the Government, including the Prime Minister, ministers and heads of State committees. WT/ACC/SPEC/KAZ/8/Rev.1 
Page 22  
 
 63. The President was authorized to prioritize draft laws for consideration by the Parliament and, 
once adopted, to either sign them into effect or ve to them.  In order to override a Presidential veto, 
both houses of Parliament had to generate a vote of at least two thirds of total members.  A draft law 
with a top-priority status had to be considered  by the Parliament within one month after its 
submission.  The President approved a law submitted by the Senate within 15 days, or returned the 
law (or separate Articles thereof) to the Parliament for further consid eration to be completed within 
one month.   Once the Parliament had reconsidered the law (or separate Articles thereof), confirming 
or not its earlier decision, the President signed the law within seven days.  In cases where the 
Parliament failed to incorporate th e President's comments in the Law,  the Law would be viewed as not 
adopted or adopted in the form proposed by the Presi dent of the Republic of Kazakhstan.  Laws came 
into force within ten calendar days after the date of  their first official publication, unless the laws or 
acts on implementation of these laws had specified different terms for enactment.  The Parliament 
could delegate its legislative powers to the Presi dent for a period of up to one year, while the 
President had the right to dissolve Parliament in cer tain circumstances.  The President could decide to 
hold a national referendum, to issue decrees, and to issue decrees having the force of law.   
64. The Parliament was a bi-cameral legislative body, consisting of a lower house, called the 
Majilis, and an upper house, calle d the Senate.  At joint sessions, the Parliament could adopt 
Constitutional laws, laws, resolutions and decrees on issues that regulated the most important public 
relations, and amend the Constitution, upon the initia tive of the President.  The Parliament could 
adopt and amend the State budget, as well as put  forward an initiative calling for a national 
referendum.  At separate sessions, the Majilis and then  the Senate could ratify or reject international 
treaties and decide on issues of State loans and other forms of economic assistance.  The Senate, inter alia , had exclusive jurisdiction, at the initiative of  the President, to elect and discharge the 
Chairperson and all Justices of the Supreme Court and the Chairpersons of the Collegiums of Justice.  
The Majilis, inter alia,  had exclusive jurisdiction to accept dr aft Laws for consideration and to 
announce regular Presidential elections.  
65. The Government was organized and supervised by the Prime Minister.  The Government was 
accountable to the President, except in cases set out in Articles 53.6 and 57.6 of the Constitution, in 
which the Government was accountable to the Par liament.  The Government submitted draft laws to 
the Majilis, the lower house of Parliament, and was responsible for their implementation when 
enacted.  Subsidiary legislation in the form of resolutions and directives could be issued by the 
Government.  The subsidiary legislation acts of the Government, as well as the acts of municipal chief 
executives could be annulled by the President.  The ma ndate of the Government expired with that of 
the President unless otherwise terminated by the President.  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 23 
 
 
 66. She noted that the Government was responsible for directing national socio-economic policy.  
Kazakhstan's economic policy was developed and coordinated by the Ministry of Economy and 
Budget Planning.  The Ministry of Industry and Tr ade was the principal Government body responsible 
for developing:  (i) industrial and investment polic y; and (ii) trade policy, including proposals on 
customs rates and duties (subsequently administered  by the Customs Control Agency) and issuing of 
import/export licenses.  State finance policy, in cluding currency control and currency aspects of 
foreign economic relations, was dete rmined by the Ministry of Finance.  Administration of currency 
control was carried out by the National Ba nk through licensing of currency transactions. 
67. The representative of Kazakhstan noted that the national authorities delegated some of their 
governmental powers affecting foreign trade to lo cal authorities.  The governmental authority in 
Kazakhstan was divided between ce ntral and regional (local) governments.  Local governmental 
power was divided between representative bodies called Maslikhats and executive bodies called 
Akimats.  Local governments  had:  (i) par tial autonomy to regulate region-specific economic 
relations; (ii) a regional (local) administrative system ; (iii) reciprocal obliga tions among different tiers 
of government to bring businesses into conformity  with requirements of social, environmental and 
moral standards; (iv) the right to allocate State support to specific sectors and, regions and promote 
cooperation between local authorities, business and management bodies; (v) the right to allocate 
budget resources and regional property on commercially viable terms; and (vi) the obligation to 
co-ordinate foreign trade i ssues with the Government.  
68. Asked to explain the relationship between lo cal (sub-central) authorities and the central 
government in the implementation of WTO provisions , the representative of Kazakhstan stated that, 
according to Article 4 of the Law "On Local Govern ment in the Republic of Kazakhstan", Maslikhats 
and Akimats did not have the right to adopt decisions  inconsistent with nationa l policy or international 
commitments arising from Kazakhstan's ratification of  international agreements.  In particular, sub-
central authorities could not independently impose measures aimed at hinderi ng the free exchange of 
goods and services within the country, such as impos ing taxes and establishing regulations. Decisions 
of Akims or Maslikhats, which de rogated from Kazakhstan's commitmen ts pursuant to international 
agreements (including WTO commitments), could be  annulled by the President, the Government, a 
Senior Akim, as well as through court procedures.  In addition, the Prosecutor General's Office 
exercised constant supervision over the precise and uniform application of la ws and other legislative 
acts. 
69. Judicial power was exercised by means of civil, criminal, and other legislation, within the 
framework of a three-tier unitary court system.  The Supreme Court was the supreme body for civil, WT/ACC/SPEC/KAZ/8/Rev.1 
Page 24  
 
 criminal and other cases.  It exercised supervisor y powers over the conduct of courts of general 
jurisdiction within a statutory framework, and pr ovided clarifications on issues relating to court 
practice.  The Supreme Court could also act as a nisi prius  court (first instance court) whose decisions, 
came into legal force from the date of their adoption.   Oblast (regional) and rayon (district) courts 
were courts of first instance and proceedings, c onducted in these courts, took place within two months 
of receipt of the claim.  This period could va ry, however, depending on the category of civil case.  
Questions challenging the constitutionality of laws or  subsidiary legislation were reviewed by the 
Constitutional Council. 
70. Some members of the Working Party asked wh at were the administrative and judicial 
channels to appeal administrative decisions made  on WTO issues.  The representative of Kazakhstan 
explained that review of judicial decisions - of ra yon (district), oblast (regional) and other local courts 
made at first instance - was carried out through an appeal/supervision procedure.  Beside parties to a 
case and other parties affected by the decision, the Prosecutor-General, Oblast, Rayon and other 
public prosecutors of equal stature, as well as their deputies, had the right to appeal against court 
judgments which had not yet come into force (o ther than judgments of the Supreme Court), 
irrespective of whether or not they participated in the hearing.  Appeals were heard not later than one 
month from the date of receipt of the appeal by the court of first instance.  The court of appeal could 
make new findings of fact within the limits of the claim and investigate new evidence, which, for 
valid reasons, had not been presented at first instan ce.  Court decisions, rulings, decrees and orders, 
which had already come into force, could be reviewed and appealed within a year, on grounds 
stipulated in the Civil Procedural Code (e.g. di scovery of new facts), in line with the judicial 
supervision procedure.  Review of decisions made  by the supervisory board of the Supreme Court, 
and a second review of the case by the supervisory board of the Supreme Court, were allowed in 
certain cases prescribed by law.  Rulings of the appellate court, as well as rulings of the court 
authorized to review the case under the supervisory pr ocedure, came into legal force on the date when 
they were adopted. 
71. She noted that the Code "Concerning Administrative Violations" of 22 March 1984 (as 
amended on 1 April 1995) aimed to prevent such viol ations, while protecting the rights, freedoms and 
lawful interests of persons, citizens and organizati ons.  It addressed issues concerning the sanitary and 
epidemiological welfare and health of the popula tion, the environment, public morals, property, 
public order and safety, and the established procedure for exercising state powers.  The hearing with an judge or authorized body usually lasted for 15 days (which could be prolonged for up to a month).  
A request for review of a judge or authorized body ruling could be made within one year; the 
submission of such request suspended the ruling's execution.  The prosecutor-general or his deputies  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 25 
 
 
 could ask a board of the Supreme Court to verify  the lawfulness and legal grounds of a decision on 
administrative violations, which had already taken le gal effect.  The Supreme Court could also review 
the results of a review ruling. 
72. Members of the Working Party asked wh ether following accession the WTO Agreement 
would have priority over Kazakhstan's national legi slation and further sought a description of how, in 
legal terms, the WTO rules and commitments woul d be ratified.  The representative of Kazakhstan 
stated that Article 4.3 of the Constitution stipulated  that international agre ements had priority over 
national legislation and that such international ag reements were applied directly except if it was 
necessary to adopt a law for an international agreemen t to become applicable.  Asked to confirm that 
Kazakhstan needed to adopt a law domestically in  order to make WTO agreements applicable, the 
representative of Kazakhstan replied that, pursuant to Article 22 of Presidential Decree No. 2679 "On 
the Procedure for Conclusion, Execution and Denunc iation of International Agreements of the 
Republic of Kazakhstan" of 12 December 1995, the Government and other relevant State bodies were 
obligated to ensure that Ka zakhstan fulfilled all obligations  it assumed under international 
agreements.  To this end, the Government planne d to introduce all necessary amendments to existing 
laws by the date of accession.  She further stat ed that obligations, which were entailed by WTO 
accession but contradicted the provisions of other in ternational agreements, would take effect in 
Kazakhstan only after:  (i) incorporation of appropr iate amendments to such international agreements; 
(ii) expiry of their duration; or (iii) thei r denunciation pursuant to the Presidential Decree  "On the 
Procedure for Conclusion, Execution and Denunciation of International Agreements of the Republic 
of Kazakhstan", and the Vienna Convention "On In ternational Treaty Law" of 23 May 1969.  She 
stressed, however, that no contradictions were expected to arise between WTO membership obligations and international ag reements signed by Kazakhstan. 
POLICIES AFFECTING TRADE IN GOODS  
- Trading rights (the right to import and export) 
73. The representative of Kazakhstan said that according to Presidential Decree No. 2021 "On 
Liberalisation of Foreign Economic Activities" of 11 January 1995, any natu ral and legal person had 
the right to carry out foreign economic activities, i. e. international trade (e xport and import) and trade 
with domestic products.  According to Article 3 of Law No. 2198 "On State Registration of Legal 
Entities and Registration of Branches and Representa tive Offices" of 17 April 1995 registration was 
obligatory for all legal persons, i.e. companies, branches, representative offices and small businesses  
with aggregate annual income over prescribed thr eshold employing permanent staff.  Small businesses 
were registered with the local tax agency  at the place of citizen's residence.   WT/ACC/SPEC/KAZ/8/Rev.1 
Page 26  
 
 74. State registration and re-registration was perfo rmed for small businesses within 3 days, for 
public associations within ten days and for lega l persons within 15 days from submission of a 
complete application and involved:  (i) checking of the company's Charter and other documents 
submitted for compliance with the legislation; (ii)  issuing of state registration certificate with 
assignment of a registration number, and (iii) inscribing to the Single State Register.  This time period for small businesses had been introduced in 2003 wh en a State Program for Small Business Support 
and Development was adopted, which simplified state regulation procedures related to small 
businesses and improved the treatment of small bus inesses, including reducing registration fees for 
their registration.  
75. She noted that according to Law No. 131 "On State Support to Small Businesses" of 
19 June 1997, small businesses were  defined as legal entities and individuals, engaged in business 
activities without establishing a legal entity, whose annual average staff did not exceed 50 and whose 
annual average total asset value did not exceed  60,000 Monthly Calculated Index (MCI), 
approximately US$ 404,489 or € 110,543 (as of 6 June 2004).   
76. Asked about fees for registration, the representa tive of Kazakhstan said that the criteria for 
registration were applicable to all businesses in  Kazakhstan equally.  Fees could be levied on the 
registration of legal entities, small businesses, and on the right to be engaged in certain types of 
activities with the aim of recovering the costs of ad ministrative expenses for the registration process.  
All fees applied equally throughout K azakhstan at both central and local  levels and were forwarded to 
local budget revenues.  Pursuant to Government  Resolution No. 1660 "On establishing fees for state 
registration of legal entities" of 19 December 2001, the fees were levied on the basis of MCI effective on the day of payment.  State-funded institutions  and public companies were charged one MCI 
(US$ 6.74 or € 5.53); children a nd youth public associations two MCI (US$ 13.48 or € 11.05); small 
businesses five MCI (US$ 33.7 or € 27.63); and le gal persons (US$ 134. 83 or € 110.54).   
77. She noted that the re-registration fee for le gal persons was 50 per cent of the corresponding 
registration fees, while fee for issuing a duplicat e of state registration (or re-registration) was 
25 per cent of the corresponding registration fee.  The fee for state registration of discontinuation of operation was one MCI effective on the date of payment.   
78. Some members of the Working Party raised con cerns about the requirement for re-registration 
and duplicate registration because they could be seen as ad valorem fees and appeared to place extra 
burdens on foreign businesses/entities.  The repres entative of Kazakhstan replied that Kazakhstan 
planned to change the relevant legi slation in order to bring it into conformity with the requirements of 
the Article VIII of GATT.  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 27 
 
 
 79. Some members of the Working Party asked th e representative of Kazakhstan whether a firm 
or enterprise that was registered in Kazakhstan met the requirement of "residency" for the purposes of 
preferential trade with other CIS countries and to pr ovide a clear distinction between legal personality 
in Kazakhstan through registration and "residence".  The representative of Kazakhstan noted that in 
cases when a ratified international agreement did not c ontain a definition of the term "resident" for the 
purposes of a given agreement, "residency" status was regulated by the provisions of Article 1 of the 
Law "On State and Government Guaranteed Borrowi ng and Debt" of 2 August 1999, Article 1-1 of 
the Law "On Currency Regulation" and the Tax Code .  The residency was awarded to legal entities 
established in Kazakhstan and/or with management  control in Kazakhstan.  She confirmed that 
resident legal entities of Kazakhstan were eligible to participate in preferential trade arrangement 
between Kazakhstan and other CIS countries.  
A. IMPORT REGULATION  
- Customs tariff 
80. The representative of Kazakhstan said that the import tariff rates were established by the 
amended Resolution of the Govern ment No.1389 of 14 November 1996 "On Rates of Customs Duties 
Levied on Imported Goods".  Kazakhstan's tariff policy was aimed at:  (i) protection of interests of consumers; (ii) diversificati on of the national economy; (iii) facilitation of development of 
technology-based and value added industries; (iv) creation of a favourable investment climate; and 
(iv) generation of revenues for the state budg et.  Commitments arising from Kazakhstan's 
participation in international ag reements and regional integration initiatives, including the free trade 
area among the CIS countries and building a Customs Union among EurAsEC member-states were also incorporated into the national tariff policy of Kazakhstan.  
81. In order to apply tariff and non-tariff measures vis-à-vis  imported goods, undertake customs 
valuation and classification of goods in accordance wi th the tariff nomenclature, the Customs Control 
Agency issued the Order on No. 210 "Rules of Adopti on of Preliminary Decisions and Their Standard 
Forms" of May 15 2003. 
82. She noted that Kazakhstan had moved from the 9-digit to a 10-digit tariff nomenclature, 
which was based on the Harmonized System for description and coding of goods of 2002 (HS 2002) developed by the World Customs Organization on 1 Ja nuary 2004.  The move was stipulated by the 
Agreement "On Common Tariff Nomenclature of  Foreign Economic Activity of the EurAsEC" 
adopted on 11 June 2003.  Hence, the new im port tariff consisted of 11,082 tariff lines.  The 
significant majority of tariff items (9,786 pos itions or 88.3 per cent) were subject to ad valorem  WT/ACC/SPEC/KAZ/8/Rev.1 
Page 28  
 
 tariffs; while 1,128 items (10.2 per cent) were s ubject to compound (or mixed) rates and 168 items 
(1.5 per cent) to specific rates.  The ad valorem  import duty rates ranged from 0 to 30 per cent, except 
for two categories related to ethyl alcohol (HS 2207 10 000 and 2207 20 000) for which tariff rate was 
established at 100 per cent.   
83. She noted that the import tariff rates for devel oping countries, eligible for special treatment 
under the general system of preferences (GSP), were levied at the reduced MFN rate, while zero tariff 
rate applied to goods imported from the least devel oped countries.  The tariff rates applicable to the 
products of unknown origin amounted to double MFN rates.  The measure was aimed to ensure submission of evidence on the country of origin of imported goods.  
- Other duties and charges 
84. The representative of Kazakhstan stated that the Republic of Kazakhs tan did not apply any 
other duties and levies on imports apart from the existing import customs duties approved by the Government Resolution No. 1389 dated 14 November 1997 and fees charged for services.    
- Tariff rate quotas, tariff exemptions 
85. The representative of Kazakhstan said that the Law No. 544 "On Regulation of Trade 
Activity" of 12 April 2004 provided a general lega l framework for introduction of tariff rate quotas 
(TRQs) in Kazakhstan.  The Government plan ned to apply TRQs toward a limited number of 
sensitive agricultural products with the purpose of  elimination of "peak rates" in the tariff 
commitments and to increase market access opportun ities for foreign exporters through allocation of 
import quotas.  She added that the Government w as committed to apply the most transparent methods 
of administration of TRQs by using a "the first come, first served" method.       
86. She noted that tariff exemptions were regulated by the Customs Code, Governmental 
Resolutions No. 668 "On Adoption of the List of  Temporarily Imported Goods Exempt from All 
Customs Duties and Taxes and Temporarily Exported Goods from All Customs Duties" of 
8 July 2003 and No. 1092 "On Adoption of the Li st of Leasing Objects Subject to the Customs 
Regime of Temporary Importation of Goods and Vehicles" of 21 August 2001.  She added that 
Kazakhstan also awarded tariff exemptions to cer tain goods originating in CIS countries, except 
Turkmenistan, as stipulated in the bilateral trade agreements. 
87. She further noted that goods imported to K azakhstan temporarily could be exempted from 
payment of customs duties and taxes either in whol e or in part.  Goods falling within the scope of 
Resolutions No. 668 and 1,092 were fully exempted of payment, while other products were charged a  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 29 
 
 
 fee of 3 per cent of the duty chargeable for each mont h the goods were in the territory of Kazakhstan.  
Kazakhstan prohibited temporary importation of i ndustrial waste; spare parts and components for 
temporarily imported vehicles, consumables and samples, raw materials and semis, unless imported temporarily for promotion or demonstration pur poses in single units; a nd foods and beverages 
(including alcoholic beve rages and tobacco goods). 
88. She further noted that the term of temporar y importation was determined by an applicant 
based on its tasks and objectives, and could not ex ceed three years after goods entered the country.  
The term of temporary importation could be exte nded beyond three years at the request of an 
applicant, if an acceptable justification was provided.   To apply for extension of the term of temporary 
importation, an application  had to  be lodged with the customs body not later than one month prior to 
the expiry of the initial term.  No requirements on customs fees or resubmission of the customs 
declaration were applied to the extensio n of the term of temporary importation. 
- Fees and charges for services rendered 
89. The representative of Kazakhstan said that a ne w Customs Code was enacted on 1 May 2003, 
which abolished the fee of 0.2 per cent of the cust oms value.  Article 293 of the new Customs Code 
stipulated that customs fees could be levied for th e following types of services:  (i) customs clearance; 
(ii) customs escort of goods; and (iii) services provided by warehouses owned by customs authority.  Customs clearance of goods and vehicles included re gistration of customs declaration; control over 
application of tariff and non-tari ff regulations; control over complian ce of location of goods with the 
customs regimes requirements; administration of customs fees; determination of customs value; classification of goods in case of necessity of customs examination and customs expert evaluation. 
90. She noted that the fees on customs clearance and customs escort were levied on all imported 
goods in accordance with the Gove rnment Resolution No. 669 "On Adoption of Rates of Customs 
Fees, Charges and Payments Levied by Customs Bo dies" of 7 July 2003.  The customs clearance fee 
was € 50 for the original Cargo Customs Declarat ion (CCD) and € 20 for each additional CCD page.  
Customs escort of goods was charged on the basis of distance and was based on Monthly Calculation Index (MCI).  Accordingly, on 6 June 2004 the foll owing fees were charged:  up to 50 km - 2 MCI 
(US$ 13.5); 50-100 km – 4 MCI (US$ 26.9); 100- 200 km - 7 MCI (US$ 47.2); 200-400 km – 14 MCI 
(US$ 94.4); 400-600 km - 21 MCI (US$ 141.57); 60 0-800 km - 29 MCI (US$ 195.5); 800-1,000 km - 
36 MCI (US$ 242.7); 1,000-1,500 km - 54 MCI (U S$ 364); 1,500-2,000 km - 72 MCI (US$ 485.44); 
and above 2,000 km - 89 MCI (US$ 600).  She provided  a list of customs duties, fees and payments 
levied by the customs bodies by subm itting the Resolution No. 669 (document 
WT/ACC/KAZ/50/Add.1 refers).  Asked about MCI, she replied that MCI was an indicator WT/ACC/SPEC/KAZ/8/Rev.1 
Page 30  
 
 established annually in the state budget and could be converted to US$ or Euro at a rate established by 
the National Bank on the date of payment. 
91. A member of the Working Party noted that cal culations for charges for customs escorts of 
goods in transit appeared complex in nature and to  some extend excessive, especially the need to 
cover the salaries of customs officers.  The represen tative of Kazakhstan replied that the Government 
planned to bring the charges in full conformity with Article VIII of GATT. 
- Application of internal taxes to imports 
92. The representative of Kazakhstan said that the Tax Code was the legal framework for 
application of internal taxes on imported goods.  The Tax Code stipulated that taxes applied to 
imported goods included the Valu e Added Tax (VAT) and the Excise Tax.  Local governments did 
not have the right to introduce local taxes on im ported goods, as they could only be introduced by the 
national government by adopting new legislative acts or amendments to the effective Tax Code.   
 - Value Added Tax 
93. The representative of Kazakhstan said that Sec tion III of the Tax Code and Code No. 209-II 
"On Taxes and Other Mandatory Payments to Budge t" of 12 June 2001 set a VAT rate of 15 per cent 
which was levied equally on domestically produced  and imported products.  The tax was levied on 
domestic products on the basis of volume of taxable turnover, while for imports it was levied on the 
sum of their customs value and other taxes and mandatory payments.  The VAT on exports was zero, except for ferrous and non-ferrous scrap.   
94. She noted that Kazakhstan used the "country of destination" principle for all imports, except 
for natural gas, oil and gas condensate from Ru ssian Federation where the "country of origin" 
principle was applied as stipulated in the Agreem ent "On Principles of Levying Indirect Taxes in 
Mutual Trade".  In accordance with the "country of  origin" principle, VAT was payable upon export, 
as stipulated in the national legislation of the country  of origin of exports.  Thus, the VAT rate applied 
upon export was 18 percent in Russia and 15 per cent in  Kazakhstan.  Due to the difference in taxes, 
imports to Kazakhstan were subject to offsetting as stipulated in Government Resolution No. 556 "On 
the Procedures for Offsetting Valu e Added Tax Payable by Supplies of Goods Imported into the 
Republic of Kazakhstan in Relati on to which Different Procedur es for Taxation of Exported and 
Imported Goods are Applied as per an International Agreement" of  22 May 2002.  Offsetting was 
performed on the basis of an invoice provided by a supplier from the Russian Federation with the 
VAT amount singled out in the amount of tax effective within Russia as of the date of shipment of  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 31 
 
 
 goods from the Russian Federation.  When the VAT payer had both taxable and non-taxable 
turnovers, including VAT exempt turnover, the VAT payable to suppliers from the Russian 
Federation had to be offset according to the pr ocedures provided in Article 239 of the Tax Code. 
95. She further noted that no VAT tax was levied on:  (i) imported national currency, and foreign 
currencies (except for cases where currencies were imported for numi smatic purposes), and securities; 
(ii) goods, imported by natural pers ons within norms for duty-free import, set by the Government; (iii) 
goods, except for excisable goods, imported as a humanita rian aid in accordance with procedures, set 
by the Government; (iv) goods, except for excisable  goods, imported as charity on the initiative of the 
State, national governments, international organisations, including for purposes of technical assistance; (v) goods imported for use by foreign dipl omatic representative offices and offices of the 
same status, as well as for personal use by foreig n diplomats and general staff of representative 
offices, including family members, residing with them; exempted from excises under international 
agreements to which Kazakhstan was party; (vi) imported goods, subject to declaration in accordance 
with the customs legislation of Kazakhstan, under customs treatments providing for tax exemptions; 
(vii) imports of drugs, including medical substa nces; medical (veterinary) products, including 
prosthetic appliances, devices for the deaf-blind, medical and veterinary equipment; materials and 
components required for production of drugs and di abetic products, medical (veterinary) products, 
including prosthetic appliances, and medical (veterin ary) equipment, if approved by the Government; 
(viii) imports  of mail stamps (except for imports by coll ectors); (ix) imports of raw materials for 
production of paper currency by the National Bank of Kazakhstan and its subordinate bodies; and 
(x) goods, imported under grants, provided by stat es, government and international organisations.     
- Excise Tax 
96. The representative of Kazakhstan provided a list of  products by HS code subject to excise tax 
and rates applied in Annex IV and said that th e excise tax rates were approved by Governmental 
Resolution No. 137 "On Rates of Excise Taxes on Excisable Goods Produced in the Republic of Kazakhstan and Imported to the Customs Territory  of the Republic of Kazakhstan and on Gambling 
Business" of 28 January 2000.  The Resolution sti pulated that excise rates were equal for domestic 
and imported goods, except for alcohol, tobacco , automobiles, gasoline and diesel fuel. 
97. She noted that in order to ensure staged unifi cation of the excise tax rates, the Government 
increased excise rates on domestically produced products by amending Resolution No. 137 with 
Resolutions No. 1257, 182 and 241 on 26 November 2002, 20 February 2003 and 27 February 2004, 
respectively.  Hence, tax per 1 litre of vodka was increased from KZT 60 to 100; per 1,000 filter 
tripped tobacco products from KZT 140 to 180; pe r 1,000 tobacco products without filter from WT/ACC/SPEC/KAZ/8/Rev.1 
Page 32  
 
 KZT 95 to 100; per 1 litre of beer from KZT 6 to 7;  and established excise tax rates that were based 
on the percentage of alcohol.  Add itionally, in order to improve the ta x base and to introduce a system 
of control of the turnover of alcohol products usin g control stamps with cryptographic identification, 
the Government adopted a Sectoral Program for St ate Regulation of Production and Turnover of Ethyl 
Spirit and Alcohol Products for 2004-2006.  
98. Asked about the target date for unification of excise taxes, she replied that the Government 
envisaged full unification of excise tax rates by th e date of Kazakhstan's accession to the WTO.  
99. She further noted that Kazakhstan did not appl y excise tax on:  (i) excisable goods imported 
by natural persons within limits set by the Govern ment; (ii) excisable goods required for operation of 
vehicles, involved in inte rnational transportation, en route  and in the intermediate locations, as well as 
excisable goods, purchased abroad for repair of damage caused by a road accident (breakdown); 
(iii) goods damaged prior to bei ng transported across the customs border and rendered non-usable as 
products and materials; (iv) goods imported for use by foreign diplomatic representative offices and 
offices of the same status, as well as for personal use by foreign diplomats and general staff of 
representative offices, including family members, residing with them; exempted from excise under 
international agreements to whic h Kazakhstan was party; (v) goods , transported across the customs 
border, exempted under customs treatment set by th e customs legislation, excluding for the "Issue of 
goods for free use"; and (vi) products containing al cohol used in medicine (excluding balms) in 
containers of no more than 0.1 litre and registered  in accordance with the re quirements set out in the 
legislative acts of Kazakhstan.    
- Quantitative import restrictions, including  prohibitions, quotas and licensing systems 
100. The representative of Kazakhstan said that K azakhstan did not apply any quantitative import 
restrictions, except those established by the Gove rnment Resolution of "On ban imposed for goods 
and vehicles imported to the territory of the Repub lic of Kazakhstan and exported from its territory 
that were prohibited to be located under special cu stoms regimes, and the bans and limitations for 
conducting operations with goods under special custom regimes" of 10 July 2003 adopted in 
accordance with Articles 8, 125, 142, 153, 165, 175,  182, 240 of the Customs Code.  The Resolution 
banned imports of:  (i) arms of all types of milita ry sample and ammunition to it, weapons of mass 
destruction; (ii) drugs, psychotropic and precursors, and the means for their use; and (iii) printed and 
illustrative materials popularizing war, terrorism, vi olence, racism and pornographic materials.   
101. Nevertheless, she noted, the two remaining import trade restrictive measures - quota for 
import of grinding and forged spheres (Resolu tion No. 1243) and limitation on imports of ethyl  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 33 
 
 
 alcohol and alcohol products (Resolution No. 10 31) had been abolished on 1 January 2003 and 
17 June 2004, respectively.   
102. She confirmed that Kazakhstan would not introduce any import quotas after accession to the 
WTO, except for emergency reasons stipulated in  the Article XIX of GATT and WTO Agreement on 
Safeguards. 
 - Import licensing 
103. The representative of Kazakhstan provided a list of goods subject to import and export 
licensing with justifications in Annex V and said that the list of goods subject to licensing and the 
rules on export and import licensing of goods and ser vices were contained in Government Resolution 
No. 1037 "On licensing export and import of goods a nd services in the Republic of Kazakhstan" of 
30 June 1997.  The licensing system regulated impo rt and export of a limited number of goods to 
ensure protection of human life and health, environm ental protection, protection of public order, as 
well as for reasons of national security.   
104. She noted that import licensing of ethyl sp irit and alcoholic beverages was regulated 
additionally by the Rules on import licensing of ethyl spirit and alcoholic beverages, which was 
approved by the Government Resolution No. 103 1 "On licensing of import of ethyl spirit and 
alcoholic beverages in the Republic of  Kazakhstan" dated 27 June 1997.  
105. She further noted that, in her view, the impor t licensing in Kazakhstan was automatic and had 
no trade-restrictive effects on imports.  She provi ded detailed information on licensing procedures in 
Annex VI and said that licenses were granted on a national treatment and MFN basis.  The Ministry of 
Industry and Trade issued licenses for a period of one calendar year with possibility of one year extension, except for ethyl spirit and alcohol be verages for which the Ministry of Finance was 
responsible, nevertheless, the licensing term was the same.  Moreover, it was the responsibility of one 
of the two ministries (depending on their jurisdic tion) to co-ordinate th e process with concerned 
agencies.  The application for licence had to be submitted to only one of the ministries and had to include confirmation of payment of a licence fee; a copy of a certificate of state registration (if a legal entity was applying for a licence); a copy of a purchasing/sale contract; and a licence for production of alcohol products, or for storage and sale of ethyl spirit in case of importing ethyl spirit.  In 
accordance with Article XVII of the Law "On Licensing"  a licence had to be issued within ten days 
for small businesses and no later than a month for le gal entities.  The decision and procedure related 
to issuing of a licence could be appealed to the court within one month. WT/ACC/SPEC/KAZ/8/Rev.1 
Page 34  
 
 106. Asked about fees for licences, she replied that Government in accordance with Government 
Resolution No. 100 "On approval of licensing fees fo r carrying out certain types of activities" of 
24 January 2002, uniform fee were charged for im ports and exports at the rate of 6 Monthly 
Calculation Index (US$ 40.4 or € 33.2) which repr esented the actual cost of processing the licence 
application.  
- Customs valuation 
107.  The representative of Kazakhstan said that customs valuation was determined on the basis of 
the new Customs Code adopted on 5 April 2003 and provided further information on Customs 
Valuation in document WT/ACC/KAZ/50/Add. 1.  Moreover, to enhance customs valuation 
procedures applied to imported goods  and implementation of an inde pendent examination system, the 
Government had adopted Rules for Independent Ex amination of Consistency of Customs Value, 
Quality, and Quantity of Imported Goods (Resol ution No.782 of 16 July 2002).  The Rules 
determined the procedures for independent examinatio n of consistency of the customs value, quality, 
and quantity of goods imported to Kazakhstan.  Is sues relating to customs valuation of goods were 
also regulated by the Decree of the Custom s Committee No. 209 "On Adoption of Rules on 
Completion of Declarations of Customs Valu e and Customs Value Adjustment Forms" of 
15 May 2003. 
108. She noted that Article 308 of the Customs Code stipulated that the customs valuation of 
imported goods could be determined using six methods:  (i) transaction value; (ii) transaction value of 
identical goods; (iii) transaction value of similar goods; (iv) deduction of costs method; 
(v) composition of costs; and (vi) reserve method.  The transaction value method had priority over other methods and established the value of goods at their selling price in the importing country.  
Where application of this method was impossible, ot her methods were used in  the order shown above 
until determination of the customs value was possible.   
109. She further noted that according to Article 311 of the Customs Code, "homogenous" or 
"similar" goods meant goods, which, although not identical, that had similar characteristics and 
consisted of similar components, which allowed them to perform the same functions as the goods 
being valued, and which were commercially interc hangeable.  The goods had to be manufactured in 
the same country as the goods being valued, ho wever they could be manufactured by another 
manufacturer.  When determining the similarity of goods, their quality, availability of a trademark, 
and reputation on the market was taken into account.   Article 309 set out when the goods were not 
considered similar.    WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 35 
 
 
 110. According to Article 314 of the Customs Code, the reserve method could be applied when the 
customs value could not be determined by a successi ve application of all other methods.  When using 
the reserve method the customs authority coul d use Government recognized reference books, 
statistical data, generally accepted commission rates, di scounts, profit, transport rates and other data.  
The appropriate adjustment of data was manda tory, taking into account commercial standards 
(wholesale, retail) and/or the quantity of goods bein g valued.  However, Article 314 of the Customs 
Code, described factors that could not be relied upon.  
111. Asked whether Kazakhstan applied minimum values,  the representative of Kazakhstan noted, 
that in accordance with Article 310 of the Custom s Code, while determining customs value based on 
the transaction value of identical goods, when more  than one transaction value with identical goods 
was identified, then the lowest of the values w as applied to determine the customs value of the 
imported goods.  
112. Asked about the existing procedures for judicial review of customs measures, she replied that 
the Code No. 155-11 "On Administrative Violations" had been adopted on January 2001.  The Code, 
besides appointing the bodies authorised to addr ess the cases of administrative violations and 
imposing sanctions, was applied to disputes related to customs valuation as well as to cases involving 
deliberate evasion of customs duties and taxes.  
- Rules of origin 
113. The representative of Kazakhstan provided a copy  of Section 4 of the Customs Code which 
established rules for determination of the country of or igin of goods.  She stat ed that these rules were 
applied for non-preferential and preferential trade.   The rules established a uniform system for 
determination of the country of origin of goods for application of both tariff and non-tariff measures 
to both exported and imported products.  The exis ting system was developed by the World Customs 
Organization and covered provisi ons of the Kyoto Convention. 
114. She noted that in accordance with criteria set out  in the Customs Code, the country of origin 
was the country where a good was produced in full or underwent significant processing involving changes in tariff code and value added.  Severa l countries, customs unions, regions, or parts of 
countries could be viewed as the country of origin, provided that this was justifiable for the purposes 
of determination of the country of origin. 
115. She further noted that imports of goods required a certificate of origin not only for the 
purpose of applying preferential tariffs for good in  transit, non-tariff measures and complying with WT/ACC/SPEC/KAZ/8/Rev.1 
Page 36  
 
 international agreements to which Kazakhstan was a party, as well as by the legislation of Kazakhstan 
on sanitary and epidemiological safety, environm ental protection, protection of human health, 
consumer rights, public order a nd national security.  A certificate of origin had to entail prescribed 
information such as country of origin; a written declaration that the good conformed with the corresponding criteria of origin; and a written ce rtification of the correctness of the supplied 
information , issued by the competent body of the c ountry of export.  Failure to provide a correctly 
drafted certificate or information on the origin of a good was not a sufficient reason for denial of 
customs clearance. 
116. Articles 47-49 of the Customs Code set the rules governing an issue of certificate of origin.  
According to the Customs Code a decision was issued  within ten working days and was valid for three 
years.  The decision was annulled or amended by a written justification if it was taken on the basis of 
incomplete or incorrect information provided by th e applicant.  The new decision entered into force 
only after the applicant received notification concer ning the amendment or nullification.  The decision 
had to be published and provided in writing upo n a written request to any person, except for 
confidential information.  The Customs Code had no provision prohibiting applications before actual 
trade began or at any later stage.  She said that, in  her view, there was no need for separate legislation 
to implement Article 2 (h) and Annex II, paragra ph 3 (d) of the WTO Agreement on Rules of Origin. 
- Other customs formalities 
117. The representative of Kazakhstan said that in accordance with the Law "On Currency 
Regulation" and the Resolution of the National Bank Board No. 343 "On Adoption of Guidelines for 
Export and Import Currency Control in the Republic of Kazakhstan" of 5 Se ptember 2001, importers 
and exporters had to obtain a "Transaction Passport"  (TA) for any transaction exceeding US$ 10,000.  
The issue of TA by Customs Authority was free of charge, automatic and took two working days.  
The TA contained information on foreign economic operations and allowed monitoring of movements 
of goods and money involved in export and impo rt operations.  Currency controls ensured that 
currency earnings flowed into the country in full an d timely fashion, as well as ensured a proper use 
of foreign currency and KZT for the purpose of import.   
118. Some members of the Working Party were con cerned that the transaction passport constituted 
an unacceptable universal licensing system and curren cy control incompatible with the Articles XI 
and XV of GATT.  The members asked Kazakhstan to  remove the transaction passport requirement 
prior to its WTO accession.  The representative of  Kazakhstan emphasized that the TA was by no 
means used to balance trade and, as such, could not be viewed as a barrier to foreign economic 
activities.  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 37 
 
 
 119. She noted that in order to facilitate control at the border, the Government first introduced 
electronic monitoring by creating database of TA and introduction of Unified Automated Information 
System (UAIS).  The UAIS operated on the basis of electronic copies of customs declarations 
provided by "Accept Corporation" which held exclus ive right to make such copies.  In 1999, the 
Government had withdrawn the exclusive right from Accept Corporation and since then the UAIS 
was implemented by the Customs.  The Government planned to introduce an "Electronic Customs" 
project which would implement a transition to the us e of electronic customs documents.  For the time 
being continued use of the paper customs declaration would be required.  
120. Asked about provision of confidentiality of th e information, she replied that measures to 
protect confidential information were envisaged for the UAIS. 
121. Some members of the Working Party expressed c oncerns regarding requirement to provide an 
electronic copy of the import and export declara tion as part of the required customs documentation, 
the granting of an exclusive licence to provide elect ronic copies of those declarations to the "Accept 
Corporation", the cost to the importer of obtaining such an electronic copy and the requirement that 
importers still present a paper copy of the import declaration. 
122. Asked about the results of the review of the temporary customs warehouse storage regime, the 
representative of Kazakhstan replied that the temporary storage regime was regulated by Chapter 13 
of the Customs Code of the Republic of Kazakhsta n (Articles 87-111).  Temporary storage of goods 
was not limited or restricted to the use of temporary storage warehouses, but could also involve storage in vehicles, warehouses owned by a receiver of goods, as well as special quarters allocated and equipped either for indoor or outdoor storag e.  Furthermore, licensing requirements and fees 
charged for temporary storage were not changed wh en goods were stored in vehicles, warehouses 
owned by a receiver of goods, as well as in special qu arters allocated and equipped either for indoor 
or outdoor storage.  Pre-arrival declaration pr ocedures, periodic declaration procedures, and 
procedures related to the customs clearance of urgent  consignments stipulated that goods and vehicles 
cleared under high-priority and simplified procedures could be released directly without placement in 
a temporary storage location (temporary storage wa rehouses).  No physical placement of goods and 
vehicles in a temporary storage warehouse was require d where they were cleared by Customs within 
one business day. 
- Preshipment inspection 
123. Asked to provide more information about the "independent examination"  pre-clearance audit 
system, the representative of Kazakhstan said that th e Program of Pre-shipment Inspection (PPI) had WT/ACC/SPEC/KAZ/8/Rev.1 
Page 38  
 
 been terminated on 31 January 1997, and accordi ngly no pre-shipment inspection was applied in 
Kazakhstan. 
124. In order to further improve the customs valu ation procedures applie d to imported goods and 
implementation of an independe nt examination system in Kazakhstan, Resolution No. 782 of 
16 July 2002 set up Rules for Independent Examinat ion of Consistency of Customs Value, Quality, 
and Quantity of Imported Goods.  An  independent examination of customs value, in contrast to the 
pre-shipment inspection, implied a price audit (cont rol over the compliance of declared information to 
their real cost) of imported goods after their arriva l in Kazakhstan.  The independent price audit of 
imported goods was introduced to increase the flow of customs and tax revenues to the state budget, 
minimise wrongful acts on the part of customs officials and to prevent capital flight.  The rules determined procedures of an independent examina tion of whether customs value of goods imported to 
the country corresponded to their quality and quantity. 
- Anti-dumping, countervailing duties, safeguard regimes 
125. The representative of Kazakhstan noted that  the use of anti-dumping, safeguard, and 
countervailing measures was regulated by the La ws "On Anti-Dumping Measures" No. 421-1 of 
13 July 1999, "On Measures for the Protection of Domestic Markets in the Process of Imports of 
Goods" No. 337-1 of 28 December 1998, "On Subsid ies and Countervailing Measures" of No. 441-1 
of 16 July 1999.  The above-mentioned laws de fined rules and procedures for the use of anti-
dumping, safeguard, and countervailing measures fo r protecting the domestic market against the 
adverse effects of an increased share of imports or supplies of dumped or subsidized goods.  Under these laws, anti-dumping, safeguard, and countervail ing duties could only be introduced when there 
was evidence that serious damage had been incurred or was threatened to domestic producers of a like 
product.  These measures could be implemented fo r a limited term, sufficient to allow domestic 
producers to adapt to the competitive environment.   Government Resolution No. 1347 "On Rules of 
Conducting Investigation Prior to Implementin g Safeguard, Countervailing and Anti-Dumping 
Duties" of 9 September 2000 set the framework fo r conducting an investigation concerning trade 
remedy measures.  The authorized body for conductin g the investigation was the Ministry of Industry 
and Trade.  The Rules also contained a detailed d escription of procedures governing the application of 
trade remedy measures, developed in confor mity with relevant WTO Agreements.   
126. Some members of the Working Party noted that  the above-mentioned laws generally appeared 
to comply with the provisions of the relevant WT O Agreements, however, some concerns remained.  
The representative of Kazakhstan noted that the government planned to develop a draft law on 
amendments and additions to the above-mentioned laws by the end of 2004.  These amendments and  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 39 
 
 
 additions were expected to bring acting legislati on into full compliance with the provisions of the 
relevant WTO Agreements. 
127. Asked about review procedures for an anti- dumping case, the representative of Kazakhstan 
replied that the review was performed by courts  which were neutral a nd independent from the 
executive power, like the judicial review of any ad ministrative or other decision of an executive body 
of Kazakhstan.  Accordingly, the executive body involved in anti-dumping investigation could not 
interfere with any legal proceedi ngs pending before a court.   
128. She further explained that the Law "On Anti-Dumping" stipulated that review or cancellation 
of anti-dumping measures should be carried out by the Government upon submission of the case by 
an Authorized Body.  Under Article 53 of the La w, in case the complainant disagreed with the 
decision of the executive body on anti-dumping investig ation, he/she had the right to appeal to the 
court.  The current Code of Civil Procedur e set forth the general procedures for filing inter alia a 
complaint in court to review administrative actions .  In the case of an anti-dumping action filed by a 
foreigner or non-resident, Articles 15 and 118 of th e Code of Civil Procedure provided that such a 
claim could be brought to the court having jurisd iction and located as close as possible to the 
decision-making body.  Oblast courts and the Almaty ci ty court were considered to be courts of first 
instance.  All details of court procedures we re regulated by the Law on the Procedure for 
Consideration and Settlement of Ec onomic Disputes and the Code of Civil Procedure.  Where the 
complainant was a legal entity, the claim would be  considered by the Board of Economic Disputes 
within the court of first instance.  Where the comp lainant was a physical person, in addition to the 
aforementioned procedures, he/she could also be guided by the Law on the Procedure for Appealing 
in a Court Against Actions of the Bodies of State Administration. 
B. EXPORT REGULATION  
- Customs tariffs, fees and charges for services rendered, application of internal taxes to 
exports 
129. The representative of Kazakhstan said that K azakhstan applied export customs tariffs on a 
MFN basis, except for exports to the members of th e Customs Union.  Export duties were published 
after they were approved by the Government on th e basis of the Ministry of Industry and Trade 
proposals.  
130. She noted that export tariffs were establishe d by the Government Resolution No. 841 of 
5 June 2000 and provided a list of products with their rates of duties in Table 4. WT/ACC/SPEC/KAZ/8/Rev.1 
Page 40  
 
 Table 4 - Rates of Export Duties Applied by Kazakhstan
 
HS number Description of Goods * Rate of Duty 
(% of customs value) 
4101 Raw pelts of cattle or animals of horse family, with hair or 
without hair, splitting or non-splitting.  € 20, but not less than 
€ 200 per 1,000 kg 
4102  Raw pelts of sheep or lambs, woolly or non-woolly, splitting or 
non-splitting, except exclude d according to Note 1 в for this 
group. € 20, but not less than 
€ 200 per 1,000 kg 
4103 Other raw skins, with hair or without hair, splitting or non-
splitting, except excluded by Note 16 or 1 в for this group. € 20, but not less than 
€ 200 per 1,000 kg 
5101- 
5104 00 000 0 Un-carded and uncombed wool;  € 10, but not less than  
€ 50 per 1,000 kg 
7204** Iron-and-steel waste and scrap; ferrous metal ingots for re-
melting (charging ingots) € 40, but not less than 
€ 35 per 1,000 kg 
7302 Ferrous metal products, used for railway lines and tram-lines: 
rails, flange rail and rack rails, switch blades, point frogs, 
regulating rods and other cross connections, crossties, splice bars and base-plates, wedges, bedplates, hood joint bolts, bad 
plates and bracing wires, foundation slabs, cross bars and other 
details for connection and bonding of rails.  € 40, but not less than 
€ 35 per 1,000 kg 
7326 90 600 0 Other ventilators, non-mechanical, guttering, hooks and like 
Articles used in the building indu stry, n.e.s., of iron or steel € 40, but not less than 
€ 35 per 1,000 kg 
7404 00 Copper waste and scrap € 30, but not less than 
€ 330 per 1,000 kg 
7601 - 7616 Secondary unprocessed aluminum and aluminum products. € 15, but not less than 
€ 100 per 1,000 kg  
8607 Parts of locomotives and motor-wags of trams and rolling-
stocks.  € 40, but not less than 
€ 35 per 1,000 kg 
 * The nomenclature of goods is determined both by code and by description of goods. 
** Rates of the exported customs duties for the indicated goods were not used in respect of the European Union Countries. 
131. Asked about export tariffs app lied among members of the Custom s Union, she noted that the 
agreement established that no export duties were applied among the members of the Customs Union 
(Kazakhstan, Belarus, Russia, Kyrgyzstan, Tajikistan). 
132. She further noted that the Agreement between the Government of the Republic of Kazakhstan 
and the European Coal and Steel Community on Tr ade in Certain Steel Products (Article 2. p.3) 
abolished quantitative restrictions, customs duties, charges or any similar measures on the export of 
ferrous scrap and waste under the EC Co mbined Nomenclature heading 7204.  
133. Members of the Working Party noted that export du ties appeared to be introduced to displace 
products that have been otherwise imported by dom estic products or otherwise distort trade.  Some 
members of the Working Party considered that th e application of export duties was unacceptable and 
inconsistent with Articles II and XXIII of the GATT, and that discriminatory export duty exemptions 
were inconsistent with GATT Article I.  They request ed a timetable to be set for the elimination of all 
export duties.  The representative of Kazakhstan rep lied that export duties were applied on a very  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 41 
 
 
 limited number of goods mainly for fiscal purpose and, as such, did not violate provisions of the 
GATT.  Export duty exemptions applied only toward the countries within the Customs Union and 
were in accordance with Article XXIV of the GATT.  Moreover, application of export duties were not 
prohibited by the WTO agreements.    
134. Asked about recently introduced export tax on crude oil by the Tax Code, she replied that 
Kazakhstan had introduced a new tax regime for oil operations designed to increase the Kazakh future 
share in oil revenue.  The new tax regime for oil operations applied onl y for new contractual 
obligations and did not have retroactive force.   
135. She noted that in accordance with the Law "On Ch anges and Additions to Some Legal Acts of 
the Republic of Kazakhstan on Taxation Issues" of 29 November 2003, natural and juridical persons 
exporting crude oil (excluding subsurface users,  who had signed a Production Sharing Agreement 
(PSA) had to pay the rent tax on th e export of crude oil every calendar month.  The rent tax rates were 
established according to the slidi ng scale starting from 1 per cent at the market price of US$19 per 
barrel and 33 per cent at the world price of US$ 40 a nd above per barrel.  Unde r PSA, tax was paid in 
accordance with the provisions of the tax legislation applied on the date when the contract had been 
signed.  Under such arrangement, the conditions of the PSA were fixed and could not be changed 
subsequent to legislation without having both parties' agreement. 
136. The rent tax was calculated on the basis of the actual value and market price of the exported 
volume of crude oil, depending on the quality of crude oil with the deduction of transportation costs.  
The market price was defined as the weighted aver age price of prevailing sale prices in the world 
market during the (daily) reporting period in relation to  a range of most similar brands of crude oil by 
the Government of Kazakhstan.  
- Export restrictions 
137. The representative of Kazakhstan said that Kazakhstan maintained a number of export 
restrictions in accordance with Article XI.2 of  the GATT and provided a list of goods subject to 
export restrictions with justifications in Annex V II.  Export restrictions were imposed in accordance 
with Government Resolutions No. 438 "On Expor t of Diesel Oils" of 20 April 2004; No. 1243 "On 
Introduction of Restrictions on Import and Export of Goods" of 5 December 1998, No. 785 "On Some 
Issues of Forest Utilization" of 16 July 2002 and No. 1163 "On Forest Manage ment Related Issues" of 
21 November 2003.  Furthermore, in pursuance of th e agreement concluded with the European Union 
on trade in steel products, a number of quantitative r estrictions were introduced on specific types of 
steel products exported from Kazakhstan to the European Union countries. WT/ACC/SPEC/KAZ/8/Rev.1 
Page 42  
 
 138. She noted that Kazakhstan planned to introduce some changes to the current legislation in 
order to bring export restrictions in accordance with provisions of Article XI of the GATT.  The Government was considering to limit the export ba n on combustive-lubricating materials to high 
season, while introducing export duties for the rest of  the year.  It also planned to the eliminate 
substitution export ban on some al uminium and nickel products. 
139. She noted that Kazakhstan did not apply any quan titative or any other restrictions on export of 
grain, or any other agricultural product.  Mo reover, Kazakhstan neither had any policies or 
requirements to impose or maintain export prices on  grain nor sanctions/permissions applicable to 
grain exports.  Some flora and fauna species liste d in Annexes I, II and III of the Convention on 
international trade in species of wild flora and fa una that were under the threat of extinction were 
subject to export permissions i ssued by the CITES in Kazakhstan. 
140. Some members of the Working Party noted that although minimum export prices had 
previously been eliminated, it app eared that the authorities were still operating a system with a similar 
effect.  The representative of Kazakhstan replied that  Government Resolution No. 994 of 19 July 1997 
had eliminated contract registration at the comm odity exchange, and that Kazakhstan did not apply 
minimum export price requirement.   
141. The representative of Kazakhstan said that export licensing was regulated by the same 
legislation as import licensing and was different only  in the products it covered.  She referred to 
Annexes V and VI on "Import Licensing".  In Anne x V she also provided a list of goods subject to 
export licensing requirements resulting from Kazakhstan' s obligations under bilateral agreements with 
the European Coal and Steel Union (steel) and th e European Economic Community (textile).  She 
further noted that pursuant to Kazakhstan's obligati ons arising from its membership in international 
agreements on non-proliferation of nuclear materi als, technologies, armaments and weapons of mass 
destruction, the Government adopted Resolutions  No. 1999 of 14 December 1999 and No. 1282 of 
18 August 2000. 
142. She further noted that export licenses were no longer required for scrap (Resolution No. 924 
of 19 August 2002) and precious stones (Resolution No. 1347 of 27 December 1998).  
- Export subsidies 
143. Referring to the statement made by the represen tative of Kazakhstan that the Development 
Bank of Kazakhstan granted soft loans for export of  non-ferrous products and gold, some members of 
the Working Party requested further information on th e benefits provided for e xport of such products.   WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 43 
 
 
 She replied that the Development Bank of Kazakhs tan did not provide and could not provide export 
subsidies to its clients and that the terms of fina ncing export operations were regulated by the Law 
No. 178-II "On the Development Bank of Kazakhstan"  of April 25.  According to the Law, the 
Development Bank could not use its charter capital for crediting purposes (Article 16) and could only 
use loans borrowed on domestic and international cap ital markets at commercial interest rates, using 
their own assets as a collateral and subject to return on a fixed date (Articles 9 and 13).  
144. She noted that in accordance with Article 12 of the Law "On the Development Bank of 
Kazakhstan", the interest rate used for the loan s were based on the average cost of borrowing and 
operating expenses of the Development Bank.  In her view, Annex I of the "Illustrative List of 
Prohibited Subsidies" to the WTO Agreement on Subsidies and Compensation Measures, suggested 
that the loans issued by the Development Bank of  Kazakhstan should not be deemed prohibited export 
subsidies.   
145. Asked whether Kazakhstan had any export performance requirements, e.g., in free trade 
zones, or any import duty drawbacks, she replied that the government did not grant any preferences 
conditional to export performance requirement a nd did not apply import duty drawbacks.   
C. INTERNAL POLICIES AFFECTIN G FOREIGN TRADE IN GOODS  
- Industrial policy, including subsidies 146. Some members of the Working Party requested more information on any subsidies and on the 
objective criteria and guidelines that governed the av ailability of regional subsidies and their use by 
regional bodies.  The representative of Kazakhsta n replied that pursuant to Law No. 373-II "On 
Investments" of 8 January 2003 the government s upported private investment projects in priority 
sectors of the national economy, such as chemicals, me tallurgy, machinery, textiles, furniture, paper, 
construction and the pharmaceutical industry.  Un der contracts concluded between the authorized 
body and investors, the government granted tax priv ileges, soft loans, exemption from customs duties 
for imported products, rescheduling of debts of indus trial enterprises, as well as railroad transportation 
preferences for a term calculated based on the amount of  the investment into Kazakh legal entities.  In 
addition, the Development Bank of Kazakhstan granted soft loans fo r implementation of investment 
projects in priority sectors of the economy, includi ng machinery construction, metallurgy, textiles, 
leather production, footwear, production of electric and electronic equipment, as well as a number of soft loans guaranteed by the State.  WT/ACC/SPEC/KAZ/8/Rev.1 
Page 44  
 
 147. Members of the Working Party requested more information on the legal basis of the existing 
subsidies and specific proposals for their elimination.  Members stressed the importance of such 
information to help discussions move forward.  In  response, the representative of Kazakhstan said that 
in 2003, decreasing coefficients also applied to electric power distribution of OJSC "KEGOC" and 
provided detailed information in Annex VIII.  She also provided information on decreasing 
coefficients of railway tariffs for 2002 and 2003 in A nnex IX and stated that as a land-locked country, 
remote from major commodity markets, the lack of  direct access to major commercial seaports, and 
the vastness of its territory, all resulted in a very hi gh share of transportation costs in the final value of 
the product.  In this regard, Order of the Chairm an of the Agency of Kazakhstan on Regulation of 
Natural Monopolies, Protection of Competition and Support of Small Business of 30 September 1999 
No. 24-OD "On Adoption of the Rules for Introduction and Discontinuation of Decreasing 
Coefficients for Tariffs on Regulated Rail Freight " envisaged granting natural monopolists discounts 
on tariffs.  These rules were developed in accord ance with Law No. 156-XIII "Concerning Transport 
in the Republic of Kazakhstan" of 21 Septem ber 1994 (WT/ACC/KAZ/4 refers), Law No. 272 "On 
Natural Monopolies", and the Law "On Developmen t of Competition and Limitation of Monopoly 
Activities" (WT/ACC/KAZ/4 refers) for the purpose of  establishing the unified system of introduction 
and cancellation of discount coefficients for tariffs  on transportation by railroad, subject to state 
regulation.   
148. She further explained that the main criteria of expediency of the establishment of discount 
coefficients were the maintenance of tax payments  to the budget, attraction of transport flows, 
increasing transport flows, possibility of using u nutilised or under-utilised sections, ecological danger 
of by-product of industrial production.  The disc ount coefficients were a pplied under the conditions 
that the client did not have outstanding or scheduled debts, and stable or increasing volume of transport flows in comparison with the previous pe riod.  She also clarified that a "0.8 decreasing 
coefficient" meant a 20 per cent railway tariff discount.  Other industries had also received this type of 
subsidy.  In 2001-2002 discount coefficients were granted for iron ore products, rolled products, coal, 
sulphuric acid, copper ore, and fuel oil.  This measure was introduced only temporarily as it had proved to be economically inefficient.  She noted that the practice of granting discounts for railway 
cargo transportation for individual companies had been  discontinued with the enactment of the Rules 
on Introduction of Discount Coefficients for Railway  Transportation Tariffs of 30 September 1999.   
149. In response to concerns raised by members of the Working Party, the representative of 
Kazakhstan maintained that, according to Order No. 24-OD, the procedure for granting discount 
coefficients was not contingent on export performan ce and applied to transportation of goods for both 
domestic consumption and export.  Therefore, granti ng discount coefficients could not be considered  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 45 
 
 
 to be prohibited export subsidies within the meani ng of Article 3 of the WTO Agreement on Subsidies 
and Countervailing Measures and Article XVI of the GATT 1994.  
150. Some members of the Working Party referred to tax exemptions granted under Law No. 75-I 
"On State Support to Direct Investments" of 28 February 1997.  The representative of Kazakhstan 
clarified that the latter, as well as Law No. 266-X III "On Foreign Investments" of 27 December 1994, 
were abolished by the Law No. 373-II "On Investment s" of 8 January 2003.  The Law did not contain 
requirements regarding the volume of investment to be  made in order to be eligible for investment 
preferences.  It also did not contain any provision that made investment incentives contingent upon 
export or import substitution, and therefore, inv estment incentives could not constitute prohibited 
export subsidies under Article 3.1 of  the WTO Subsidies Agreement.   
151. Some members of the Working Party requested  confirmation that the so-called regional 
subsidies were budget transfers to regional gove rnments for the sole purpose of carrying out 
governmental activities.  The representative of Ka zakhstan confirmed that in accordance with Law 
No. 3571 "On Budgetary System" of 1 April 1999, re gional subsidies were official transfers which 
lower level budgets received from higher level budgets within the limits of the approved amounts for 
the purpose of carrying out governmental activities, e.g., creating local infrastructure, running schools, making social income support payments unrelated to production of goods, etc.
 
152. Some members of the Working Party noted that according to earlier submissions from 
Kazakhstan, preferential loans were provided to certain industries for export promotion or import 
substitution purposes.  They expressed concerns that, to the extent that these loans were contingent 
upon export or import substitution, they could constitut e a prohibited subsidy under Article 3.1 of the 
WTO Subsidies Agreement.  The representative of Kazakhstan stated that the Export-Import Bank of 
Kazakhstan (Eximbank) was in charge of providi ng these loans.  According to Presidential Decree 
No. 1815 of 16 July 1994 its main functions in cluded: obtaining and administering foreign loans 
under state guarantee; and financing Kazakh compan ies with the aim of stimulating imports of 
technology, equipment and other products essential for real sector structural reforms.  Eximbank was 
a public bank, which performed the functions of a development bank by providing soft loans for 
financing priority investment projects.  Eximbank fi nanced three to five year investment projects, 
under 6 per cent interest rate and with grace period of two to three years.  Uniform terms and conditions applied to all enterprises and granting of loans was not contingent upon the use of domestic 
over imported products. 
 WT/ACC/SPEC/KAZ/8/Rev.1 
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 153. Based on earlier submissions from Kazakhstan, some members of the Working Party noted 
that Kazakhstan provided tax exemptions to expor ters of yellow phosphorus, ground phosphate rock 
and phosphate fertilizer, and expressed their concer ns about whether these tax exemptions were in 
conformity with Article 3 of the WTO Subsidies Agreement.  In response, the representative of 
Kazakhstan stated that "Kazphosphat", Ltd. was act ive in a priority economic sector and, as such, 
received corporate income tax, property and land ta x preferences in line with the provisions of the 
Law "On Investments".  She assured them that the criteria used for granting tax preferences did not violate the provisions of the WTO Agreement. 
 
- Technical barriers to trade 
154. The representative of Kazakhstan provided info rmation on the conformity of Kazakhstan's 
legislation with the Articles of the WTO Agre ement on Technical Barriers on Trade (TBT) in 
document WT/ACC/KAZ/37, as well as document WT /ACC/KAZ/40 (Survey of the Foreign Trade 
Regime).  Legislation concerning standardization,  metrology, and certification was based on Laws  
No. 433-1 "On Standardization" of 16 July 1999 (WT/ACC/KAZ/23 refers), No. 434-1 "On 
Certification" of 16 July 1999 (amended by Laws No. 141-II of 15 January 2001; No. 230-II of 
11 July 2001; No. 272-II of 15 December 2001; No. 3788 of 10 June 2003) (WT/ACC/KAZ/23 refers). 
155. She noted that the main principles of state st andardization were based on the requirements of 
the WTO Agreement on TBT and established equal st andardization requirements for both local and 
foreign manufacturers and suppliers.  Legislative re quirements could not cons titute technical barriers 
to trade with other countries.  Legislative re quirements were based on scientific analysis and 
technological developments.  They were in accord ance with domestic laws, as well as international 
and foreign countries' national standards, rules and recommendations.  When developing technical 
standards and requirements, international technical re gulations and standards had to be used except in 
cases when they failed to meet domestic safety re quirements.  If state standards under development 
failed to meet international requirements (or when  international standards were not applicable), 
notices about the development of such standards, ou tlining differences in technical content, had to be 
published by Committee on Standardization, Metrology, and Certification of the Ministry of Industry 
and Trade (Gosstandard) for comments and proposals by interested parties.  The State Standard of the 
Republic of Kazakhstan (ST RK 1. 2-2002) regulated state standard s development, alteration, and 
cancellation.  
156. She further noted that the Gosst andard was the only state body authorized to administer work 
and issue official standards in the field of standardization, metrology and certification.  She added that  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 47 
 
 
 under the Law "On Standardization", international st andards and national standards of foreign states 
were included in the category of regulations valid  in Kazakhstan.  Thus, both physical and legal 
persons could use international, regional and national standards, and other normative documents on 
standardization of foreign countries, as state standa rds or through registration of a given user.  She 
clarified that Article 11 of the Law "On Certific ation" provided for two types of certification: 
mandatory and voluntary.  The latter was perform ed on the initiative of an applicant (producer, 
vendor) or consumer of a good, in order to determin e its conformity with existing standards, while the 
former was required to ensure safety, protection of human life and health, as well as protection of the environment.   
157. In response to questions concerning a clear di stinction between technical regulations and 
standards required by the TBT Agreement, the repr esentative of Kazakhstan stated that under the Law 
"On Standardization", a "technical regulation"  was a normative document establishing mandatory 
requirements either directly or by reference to a sta ndard or rule, or by reiteration of its content.  It 
could also include or exclusively contain the re quirements related to te rminology, designations, 
package, marking to such extent, in which they were applied to the products, process (work), service 
or method of production.  A "standard" was a documen t developed with agreement of all interested 
parties and approved by the authorized body on st andardization, metrology, and certification.  It 
established general rules, principles or characteristics as well as rules, principles or characteristics for 
repeated use regulating various forms of activities and its results.  The representative of Kazakhstan 
confirmed that a "standard" include d both mandatory and recommended requirements.  She also noted 
that the modifications to the Law "On Standard ization" established technical regulations and 
requirements for products, processes and services that we re applicable to physi cal and legal persons of 
Kazakhstan.  Any interested pa rty could obtain necessary inform ation at the Enquiry Point. 
158. Some members of the Working Party request ed information on the elimination of WTO-
inconsistent mandatory national sta ndards.  In particular, they want ed to know whether there were any 
plans for addressing such "hold-over" standards.  
159. In response, the representative of Kazakhstan noted that the Law No. 434-1 "On 
Certification" had been amended to grant the right to producers to confirm the conformity of products 
by declaration .  Product certification procedures were pe rformed by certification bodies accredited by 
the Gosstandard.  The list of accredited certifica tion bodies and laboratories was available from the 
Gosstandard's website.  Certification rules and pro cedures were the same for both local and imported 
products, regardless of their origin, as required by  Article 5.1.1 of the WTO Agreement on TBT.  
Mandatory certification applied to products and ser vices potentially dangerous to people's health and WT/ACC/SPEC/KAZ/8/Rev.1 
Page 48  
 
 the environment (motor transport, agricultural t echnique, weapons, sports, electro-technical, radio-
technical electronic items, communication means, household chemistry, consumer goods in contact 
with persons' skin, food and water,  construction materials and cons tructions, light industry products, 
medical products, raw fuel, toys, special technical  guarding means, etc.).  A manufacturer's self 
declaration could be filed for products, for which relevant tests could be easily performed by the 
producer and which could be adequately tested by  any of the accredited bodies of the Gosstandard.  
Records of the testing procedures performed, as we ll as documents that guaranteed product safety, 
were also needed.  Upon review of all necessary documents, a certif icate could be issued by an 
accredited certification body.  There was no predetermi ned list of products that could not be tested by 
the accredited bodies and decisions as to whether or not a product could be tested were made on a 
case-by-case basis.  Testing laboratories were c onstantly being modernized, thus expanding the 
profile of their testing capabilities.  
160. Asked about measures taken to meet the transparency and publication requirements of the 
TBT Agreement, the representative of Kazakhstan stat ed that the Centre for collaboration with WTO 
on issues of accreditation, standardization, metrolog y and certification started its work in 2002.  
Databases were being created according to international, regi onal and foreign standards.  Interstate 
and state standards, and part of international ones,  were transferred to electronic forms.  A draft 
program of standards development was being printe d in the monthly "Informational Catalog (register) 
of Standards" (ICS), published by Gosstandard to  enable interested parties to submit comments on 
draft standards.  The comments were taken into account in the process of finalizing draft standards 
and the standards were only adopted after comments were received, listed and attached thereto, and 
agreement was reached between the interested pa rties.  She further noted that the Law "On 
Standardization" established a procedure to process and analyse comments.  There were no criteria to 
be eligible to receive draft standards and conf ormity assessments and any interested organization 
could request to receive them.  Moreover, drafts of state standards were published in the official 
publication of the Gosstandard and electronic vers ions were placed on the Gosstandard's website 
www.memst.kz
.  Gosstandard had two subordinate stat e enterprises: the Kazakh Institute of 
Standardization and Certification and the Kazakh Institute of Metrology.  These issued periodic 
publications, including the magazines "Gosst andard News", "Metrology", and "Monthly 
Informational Index of Standard s", which contained draft standa rds, news, Articles and normative 
documents regulating standardization, metrology, and certification. 
161. Some members of the Working Party asked why it was necessary to receive separate 
permissions from the chief veterina rian to transport imports within the Kazakhstan market even after 
obtaining a valid certificate of conformity, and why new certificates of conformity were needed for  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 49 
 
 
 pharmaceutical imports that also already had obtain ed certificates of conformity.  The representative 
of Kazakhstan replied that these requirements were  legally justified under Article 2 of the WTO 
Agreement on TBT, namely the intention to protect th e health and safety of people or animals.  These 
procedures were mandatory for importers as well as domestic producers of goods in transporting 
goods that were subject to the state veterinary contro l or included in the official list of products that 
require mandatory certification.  
162. Some members of the Working Party noted the ex istence of standards agreements with China 
and Turkey and asked whether the provisions of  these agreements would be applied on a most-
favoured-nation basis.  In response, the representativ e of Kazakhstan stated that there was a Protocol 
of Cooperation with the Turkish In stitute of Standards of 6 March 1996 and an Agreement with China 
on cooperation to provide quality and mutual inspec tion of import-export goods dated 5 July 1996.  
Kazakhstan was ready to negotiate and enter in to agreement with any WTO Member regarding 
standards and affirmed that, once a Member of th e WTO, Kazakhstan would, of course, provide WTO 
Members  with MFN treatment in connection with technical barriers to trade.   
163. The representative of Kazakhstan noted that in  order to bring the national system into 
conformity with international pr actice, Kazakhstan was planning to  adopt a draft Law "On Technical 
Regulation" by the end of 2004, aimed at furthe r harmonization of existing legislation with the 
requirements of the WTO Agreement on TBT.  In or der to implement its re form program Kazakhstan 
requested Working Party members to consider gran ting a transition period required for transforming 
the national technical regulation system into an e ffective mechanism based on the requirements of the 
WTO Agreement on TBT.  In response, some me mbers of the Working Party expressed doubts that 
the granting of such a transition period was either warranted or necessary, given that Kazakhstan had 
been in the process of accession to  the WTO for over eight years.  
- Sanitary and phytosanitary measures 
164. The representative of Kazakhstan said that work on bringing the legislative base in line with 
the SPS Agreement was being carried out under th e framework of the "Program on Agriculture 
Standardization" for the period 2001-2006.  Thus, a number of new Laws ha d been adopted, including 
A Law "On Sanitary and Epidemiological Welfar e" No. 361-II of 4 December 2002, "On Veterinary" 
No. 339-II of 10 July 2002 and "On Plant Quarantin e" No. 344-I of 11 February 1999.  Other 
important laws included Law "On Public Health", "On Public H ealth System" and "Environmental 
Protection".  More detailed information on le gislative provisions was provided in documents 
WT/ACC/KAZ/44 and 45.  She further stated th at the Committee for th e State Sanitary and 
Epidemiological Surveillance of the Ministry of Health was the authorized body responsible for WT/ACC/SPEC/KAZ/8/Rev.1 
Page 50  
 
 administration of issues relating to sanitary a nd epidemiological welfare.  The sanitary and 
epidemiological service was an integr ated structure of public and subsidiary bodies with their regional 
border and transport branches. 
165. She noted that over the years a reliable open structure of national sanitary and 
epidemiological standardization, based on scientific principles had been developed.  According to the 
legislation, requirements and norms to protect huma n health and ensure product safety had to be based 
on scientific research and field studies' results; and had to incorporate provi sions of international 
norms, guidelines and recommendations (FAO, WHO,  ILO, the Codex Alimentarius Commission, 
etc.).  The legislation equally covered domestica lly produced products as well as imported products 
designated for domestic use.  U nder the Law "On Sanitary and Ep idemiological Welfare", national 
sanitary and epidemiological standardization appl ied only to the extent required to prevent all 
environmental hazards to human life and health, ensuring product safety and eliminating factors 
favourable to the outbreak and spread of diseases.   
166. She further noted that current legislation recognized the phytosanitary measures of exporting 
countries as equivalent, if they achieved the appropria te level of protection.  Additionally, questions 
of equivalence and adequate refl ection of regional characteristics of exporting countries could be 
resolved in the framework of bila teral agreements.  Kazakhstan was party to a number of agreements 
on sanitary and phytosanitary measures within the framework of the Eurasian Economic Community 
(Russian Federation, Kazakhstan, Belarus, Kyrg yzstan and Tajikistan), as well as within the 
framework of the Commonwealth of Independent St ates (CIS).  The provisions and operations of 
these agreements were listed in the rele vant section of document WT/ACC/KAZ/50. 
167. She noted that under Ordinance No. 841 of 14 November 2003 "On Adoption of Rules for 
Sanitary and Epidemiological Inspection" a shipment  of goods was certified to be in conformity with 
sanitary norms and rules - before or after its entry into Kazakhstan - by a sanitary and epidemiological 
expert opinion or by registration certificate, dependi ng on the nature of the product or the substance 
used in the product.  Sampling, laboratory testi ng and reporting procedures were established under the 
relevant guidelines and national testing standards.  When performing the inspection, the authorities 
had to take into account the product safety certificate issued by the producer, as well as the safety 
certificate issued by the authorized bodies of the ex porting country.  When issued, the expert opinion 
became valid on the entire territory of Kazakhstan and had to be presented to the relevant bodies upon 
request.  Sanitary and epidemiological requireme nts for assessment and approval procedures applied 
equally to domestic and imported products.  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 51 
 
 
 168. She further noted that, under Article 16 of the Law "On Sanitary and Epidemiological 
Welfare", when an imported substance, presenting potential hazard for human life or health, was 
introduced in the production cycle for the first time, it had to be registered with the relevant state 
bodies, if no record of its previous use existed.  Registration also app lied if the substance was used for 
the production of food additives and dyes, as well as products and materials whose use involved direct 
contact with water or food products.  During the process  of registration the authorities had to take into 
account the results of an expert scientific evaluati on and also an objective conformity assessment with 
acting sanitary regulations and hygienic norms.  
169. The representative of Kazakhstan said that all requirements applied by the veterinary service 
were either based on guidelines and recommendations of the Internationa l Office of Epizootics, or on 
national sanitary and veterinary rules and regulati ons, based on solid scientific evidence.  Kazakhstan 
was a member of the Office of Epizootics since 1993 and had undertaken to harmonize its national 
legislative framework with the requirements of the International Animal Health Code. 
170. She noted that the Department of Veterinary of the Ministry of Agriculture was the authorized 
body for veterinary control and legislation.  Restric tions or bans on imports of animal products could 
be introduced or lifted by the Instruction of the Se nior Government Veterinary Inspector (or his/her 
Deputy) based on the available official information provided by the International Office of Epizootics 
or the central body of the State Veterinary Se rvice of the relevant exporting country.  When 
restrictions by Kazakhstan were to be lifted, the representative of the Department of Veterinary could, 
where necessary, inspect the territo ry (producers) of the exporting county.  Kazakhstan's veterinary 
service informed the relevant countries of all newly introduced or lifted restrictions (bans) through 
their embassies in Kazakhstan.  
171. The procedures for import and e xport of products subject to ve terinary control involved the 
issue of an import/export permit by the authorized body on veterinary, upon recommendation of the 
oblast (municipal) territorial branch, within a speci fied period of time.  The authorized body could 
refuse to issue a permit but had to justify a refusal in  writing, indicating the reasons therefore.  At the 
border point, the goods and permit were inspected by a veterinary inspector.  Upon arrival at 
destination, the head of the zone branch took sa mples of the goods and sent them to the veterinary 
centre for testing.  This procedure was obligatory for imported animals, as well as for products and 
raw materials of animal origin.  Based on the report of the testing centre the zone branch took a final 
decision on imported products.   
172. The transit of products subject to control was regulated by international agreements on co-
operation in veterinary and did not require any special permit, if accompanied by an original WT/ACC/SPEC/KAZ/8/Rev.1 
Page 52  
 
 veterinary certificate of the exporting country and if  in conformity with requirements on packaging, 
integrity and consistency of marking with accompa nying documents.  The transit of live animals was 
an exception. It could be performed only with a written authorization by the Senior Government 
Inspector upon request of the central veterinary body of the importing country, accompanied by an 
indication of entry/exit points, transport r outes, calls, transportation and feeding points. 
173. The representative of Kazakhstan said that legislation on plant quarantine reflected provisions 
and principles established by the International Plant Protection Convention, the European and 
Mediterranean Plant Protection Organization and the WTO SPS Agreement.  In line with accepted 
international practice, when quarantinable products  were imported from countries on whose territory 
were registered cases of infection with disease- carrying or disease-causing organisms, imports of 
products from pest- or disease-free areas were allowe d.  In urgent circumstances the authorized body 
could, depending on the phytosanitary conditions  of the exporting party, provisionally introduce 
restrictions or bans on imports of quarantinable products.  In such circumstances, it would provide all 
pertinent information about its actions to the re levant service in the exporting country.  Where 
repeated supply of infected quarantinable products had been registered, a total ban on imports of the 
relevant product could be imposed.  She added that  contentious issues were, nevertheless, normally 
open for negotiation.  
174. She noted that in order to establish a transparent system, the schedule of products under 
quarantine subject to phytosanitary control was provided with Ordinance No. 166 dated 30 May 2002 
"On Adoption of Nomenclature for Major Quaranti nable Objects Subject to Phytosanitary Control 
under Plant Quarantine Procedures".  Products  included in the schedule could only be 
imported/exported with a relevant permit, issued by the Department on Plant Protection and 
Quarantine and signed by the Senior Government In spector in conformity with procedures established 
under the Law "On Plant Quarantine".  In specific cases, where large amounts of products were 
supplied or imported from countries whose phyto sanitary conditions had not been adequately 
analyzed, the authorized body on plant quarantine could dispatch an expert to the importing country 
for inspection at the source.  The quarantine permit was issued on the basis of a written application by 
consignee to the Department on Plant Protection and Quarantine.  The permit specified binding 
phytosanitary conditions for each shipment (on the basis of a thorough examination, including 
sampling) and stipulated that each shipment had an accompanying phytosanitary certificate issued by 
the relevant bodies of the exporting country.  
175. If it could be objectively demonstrated that products  subject to control were infected, or were 
in some way inconsistent with existing rules and re gulations, they could be returned to the exporting  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 53 
 
 
 country or could undergo disinfection (decontamination)  at the destination points.  Any natural person 
or legal entity could appeal the actions of the government officials.  
176. Asked about compliance with the transparen cy requirements of the SPS Agreement, the 
representative of Kazakhstan replie d that under Government Resoluti on No. 1627 of 30 October 2000, 
the Ministry of Agriculture had established an Info rmation Marketing System to enhance transparency 
through regular exchange of analytical marketi ng information between agricultural producers, public 
bodies, and other participants of the agricultural ma rket; and enhanced inter action with international 
organizations.  The Ministry also maintained a web-site, www.minargri.kz , and all interested parties 
and participants of the agricultural market coul d send questions and comments to the Ministry at 
strategy@minagri.kz.   The Ministry also published a mont hly bulletin entitled "Environment and 
Human Health" and the analytical bulletin "Agroinf orm", which contained all legal acts, approved by 
the Ministry of Agriculture, including legislatio n on veterinary, quarantine and plant protection.  
Additionally, the state sanitary and epidemiological  control system maintained a database that was 
regularly updated with data submitted by regional br anches.  This information was accessible to all 
interested parties.  In response to questions, the re presentative of Kazakhstan stated that the legislation 
of Kazakhstan contained no restrictions on foreign participation in the development of sanitary and 
phytosanitary standards (e.g. par ticipation in technical committees meetings, providing comments). 
177. Some members of the Working Party expressed  their disagreement with the seven-year 
transition period initially requested by Kazakhstan for joining the SPS Agreement.  They noted that a 
clear justification would have to be provided, in cluding a submission of a detailed Action Plan.  The 
representative of Kazakhstan noted that Kazakhstan would submit a three year Action Plan for the 
time needed to harmonize its existing system with  the requirements of the SPS Agreement.  The 
transitional period was needed for harmonization of Kazakhstan's SPS rules and regulations with 
international standards, as well as for upgrading ou t-of-date laboratory equipment and re-training of 
personnel.  In this regard, by the end of 2004, the Government planned to introduce amendments to 
the Law "On Sanitary and Epidemiological Welfare", in  order to bring it into conformity with the key 
principles of the SPS Agreement.  
- Trade-related investment measures 
178. The representative of Kazakhstan confirmed th at Laws "Concerning the Subsurface and its 
Utilisation" of 27 January 1996 and "On Oil" of 28 June 1995 awarded national treatment and 
established a requirement to use domestically pro duced products and services, under the condition of 
meeting standards and technical specifications of the project.  Preferences were given to local 
producers of goods and local suppliers of services only when they fully met all the requirements set in WT/ACC/SPEC/KAZ/8/Rev.1 
Page 54  
 
 the bidding process by the investors.  In her view, such provisions were non-discriminatory and 
introduced an opportunity for imported goods and ser vices.  Despite the explanation, some members 
of the Working Party considered these requirements were inconsistent with the Agreement on TRIMs 
and possibly with Article 3.1 of the WTO Subs idies Agreement.  The members asked for a 
justification and a program of bringing the legisl ation in compliance with the WTO agreements.   
179. She replied that Kazakhstan's industry was dominated by extraction and processing of 
hydrocarbon and mineral products with the oil sector  being the most attractive for both foreign and 
local investors.  The forecasts s howed that the volume of foreign investments to oil production kept 
increasing, while other sectors remained underdevelope d.  Hence, the Government introduced the 
above requirements in order to:  (i) ensure rational restructuring of the subsurface use; (ii) achieve 
sustainable economic development through diversif ication of the national economy and reduction of 
the economy's heavy dependence on mineral resources;  and (iii) create an environment conducive to 
development of processing industries and production of high value added goods. 
180. She further noted that the Government had la unched an industrial innovation program for the 
period of 2003-2015, which entailed preferences being given to the local producers and service 
suppliers under equal conditions.  The program aimed at boosting the real sector of the economy 
through implementing innovative industrial projects,  ensuring a strong linkage between Research and 
Development and industrial sector, and building high -tech production facilities, all of which required 
a sufficient transition period to bring the national legi slation into conformity with the provisions of the 
TRIMs Agreement.  The Government of Kazakhsta n was preparing a detailed action plan for the 
transition period that might be need to bring its legisl ation in conformity with the TRIMs agreement.     
- State-trading entities 
181. A number of the Working Party members said that , in their view, many of the enterprises in 
Kazakhstan in practice (even if not on a legal basis) appeared to enjoy exclusive or special privileges.  
Therefore, they requested Kazakhstan to submit a dr aft notification prepared in conformity with the 
provisions of Article XVII of GATT, 1994.   
182. The representative of Kazakhstan assured the Wo rking Party that the Government would 
analyze the enterprises whose activities could be c overed by Article XVII of GATT and would submit 
the notification on state trade enterprises existing in  Kazakhstan to the WTO Secretariat.  At the same 
time, she noted that in Kazakhstan State and priv ate trade enterprises operated in competitive market 
conditions.   WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 55 
 
 
 [to be completed] 
- Free zones, special economic areas 
183. The representative of Kazakhstan said that Kaza khstan's special economic areas (SEA) were 
regulated by the Decree of the President No. 28 23 "On Special Economic Zones in the Republic of 
Kazakhstan" of 26 January 1996, Customs Code and Ta x Code and other legislative acts.  Changes to 
the legislation were introduced with the Law "On Changes and Amendments to Legislative Acts on 
the Special Economic Zones" of 5 July 2001.  
184. She noted that in 2004 Kazakhstan had hosted th ree SEA, i.e. "Astana – New City", "Seaport 
Aktau" and "Park of Informational Technologies" (P IT).  The three SEA were established by Decrees 
of the President No. 645 of 29 June 2001 for a five-year- term from 2002- 2007; No. 853 of 26 April 2002 for a four-year-term from 2003-2007 and No. 1166 of 18 August 2003 for the ten-year period, respectively.  
185. Pursuant to Chapter 30 of the Customs Code, "free customs area", meant the customs regime, 
within the relevant territorial borders of a sp ecial economic area, under wh ich foreign and Kazakh 
goods were placed and used.  Such  goods were exempt from customs duties and taxes, except for 
excise on imported goods.  No non-tariff regulator y measures were being applied, except for 
requirements regarding safety of goods.  When expor ting goods from the territory of special economic 
zones to the rest of the customs territory of K azakhstan, export taxes were charged, and non-tariff 
regulatory measures were applied in compliance w ith the terms of the customs regime.  When a 
certificate of origin establishing origin of good from the SEA was not available, the goods were considered to be either Kazakh ( upon export to third country) or fore ign (upon export to Kazakhstan).  
186. The representative of Kazakhstan said that a ttracting investment, modern technology, and 
know-how to the SEA were considered the prim ary purpose of the SEA.  To accomplish that, the 
Government provided certain preferences, such as  exemptions from the payment of land and property 
taxes, and reduction of the corporate income tax by up to 50 per cent in "Astana-New City" and PIT; 
and up to 100 per cent in "Aktau Seport".  The pr eferences were applicable to entities engaged in: 
(i) design, development, and implementation of  pilot production and production of software, 
databases, and hardware; (ii) IT development ba sed on artificial immune and neuron systems; and 
(iii) Research and Development for the development and implementation of IT projects.  She noted 
that Kazakhstan imposed no restrictions on participa tion of foreign parties in the SEA, except for the 
restriction related to the place of registration of the recipients of benefits which was a common 
requirement in many free economic areas all over the world.  Asked about preferences contingent on WT/ACC/SPEC/KAZ/8/Rev.1 
Page 56  
 
 export orientation and/or import subs titution of enterprises, she said that the legislation did contain a 
provision that granted special contingent on expo rt orientation and/or import substitution of 
enterprises. 
187. The SEA "Astana – New City" was established to facilitate the development of the left bank 
area of the river Ishym in the new capital of Kazakhs tan through attraction of investments and use of 
advanced technologies in construction, as well as  through building modern infrastructure.  The 
"Astana – New City" provided for tax and customs benefits for construction of infrastructure and 
administrative and residential sectors in its territory.  Beside the general preferences, tax preference was granted on VAT levied on goods and services used  in the process of construction; land tax on 
construction land lots; and property tax on property constructed in SEA.  The SEA "Aktau Seaport" 
was created to facilitate socio-economic devel opment of the region through building high-tech 
industry, attracting new investments, creating new jobs and introducing modern administration and 
economic management methods.  She noted that a new  SEA "Park of Information Technologies" 
(PIT) was built in order to diversify the economy through production of information technologies and 
utilisation of scientific and technical innovation capacity of the country. 
- Government procurement 
188. The representative of Kazakhstan said that th e legislation of Kazakhstan on government 
procurement consisted of Law No. 321-II 3PK "On State Procurement" of 16 May 2002 and 
Resolutions No. 1158 "On Rules for Organisation and Holding of State Procurement of Goods, 
Works, and Services" of 31 October 2002 an d No. 1163 "On Special Procedures for State 
Procurement" of 3 November 2000; and the Order No. 8 establishing Standard Bidding 
Documentation of 31 October 2002.  The legislatio n was formulated taking into account requirements 
of international law, specifically the Model Law of the United Nations Commission on International 
Trade Law (UNCINTRAL). The body responsible for development and implementation of state 
policies in the area of government procurement was the Agency for State Procurement 
189. She noted that under the Law "On State Procur ement" government procurement was defined 
as procurement of goods, works, and services eff ected by public bodies and agencies, public 
enterprises, and joint stock compan ies with the controlling share owned by the state, as well as by 
their affiliated legal entities, using available funds .  A certain portion of goods, works, and services 
procured by public bodies and agencies, public en terprises, and joint stock companies with the 
controlling share owned by the state, as well as by th eir affiliated legal entities, was used for their own 
production purposes.   WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 57 
 
 
 190. She further noted that the main mechanisms of government procurement were implemented 
through public bidding, limited bidding (public a nd limited bidding could consist of two stages), 
procurement from one source, selection of a supplie r based on requests of price offers, and market 
procurement.  According to Article 3 of the La w, the procurement process had to provide equal 
opportunities for participation for all potential s uppliers of goods and services, unless there were 
provisions to the contrary in the legislation; fair competition among potentia l suppliers; and openness 
and transparency of government procurement procedures.  
191. In response to a request from members of the Working Party, the representative of 
Kazakhstan said that Kazakhstan would consider accession to the WTO Agreement on Government Procurement after its accession to the WTO.  
- Trade in civil aircraft 
192. In response to a request from members of th e Working Party, the representative of the 
Republic of Kazakhstan said that  Kazakhstan did not plan to join  the WTO Agreement on civil 
aviation trade prior to accession to the WTO. 
- Transit 
193. The representative of Kazakhstan said that goods in  transit across the territory of Kazakhstan 
were exempt from customs charges and fees, VAT, a nd excise taxes.  Kazakhstan allowed free transit 
to reflect provisions of Article V of GATT 1994, as we ll as those of the international treaties to which 
it was a party.  Nevertheless, according to Article  42 of the Customs Code, a customs authority could 
deny, in writing, the release of goods in the event that the goods originated in a country whose goods 
were prohibited for importation in to Kazakhstan.  Except for bans  on import and export of certain 
goods (e.g. arms, drugs, antiques, etc.) there w as no legislation prohibiting transit of goods. 
194. She noted that Kazakhstan applied no charges on transit, except for charges on transportation 
services for road, railroad and sea transport, which were  limited to cover solely administrative costs or 
costs of services provided.  Transit charges were  regulated by Governmental Decrees No. 62 "On 
some issues regulating the movements of vehicles on the territory of Kazakhstan" of 19 January 2002 
and No. 1306 of 24 December 2003; The Rate Policy of the Republic of Kazakhstan for the Goods 
Transportation in International Communication for 2004; and Decree No. 320-OD of the Chairman of the Agency for Regulation of Natural Monopolies,  Protection of Competition and Support of Small 
Business.  Transit duty for foreign vehicles that transported cargoes in the international trade was 
fixed at the rate of 10 Monthly Calculation Inde xes, while decreasing coefficients provided to WT/ACC/SPEC/KAZ/8/Rev.1 
Page 58  
 
 domestic transport did not apply to tariffs for tran sit cargoes. Payments were collected without any 
special preferences.  
195. The Representative of Kazakhstan said that the Customs Code provided that certain types of 
imported goods listed in the Resolution No. 524 of  4 June 2003 could only transit the customs 
territory of Kazakhstan provided that there was a guarantee of payment of all chargeable customs duties and taxes.  The list of such goods included al cohol and brands of alc oholic products, cigars and 
tobacco.  As stipulated in the Article 339 of the Customs Code, payment of customs duties and taxes 
had to be guaranteed with either:  (i) bonds, (ii) bank guarantee letters, (iii) deposits; or (iv) insurance 
contracts.   
196. Asked about the redemption of a guarantee, she replied that in accordance with Article 345 of 
the Customs Code, the guarantee was refunded afte r all commitments required by the deposit were 
fulfiled.  Deposit was refunded after deduction of pending customs duties, taxes and penalties 
(Article 351 of the Customs Code), and no interest  was refunded.  Bank fees  were covered by the 
declarant.  Bank guarantee, property security and insurance were refunded/terminated after five 
working days, while deposit was refunded after 10 working days. 
197. She noted that procedures applied by custom s bodies to enforce payment of customs duties 
and taxes were defined in the Order of the Customs Control Agency No. 199 "On Adoption of 
Procedures of Customs Bodies to Enforce Payment of Customs Duties and Taxes" of 13 May 2003.  
- Government-mandated counter-trade and barter 
198. The representative of Kazakhstan said that the approval of the Government was not required 
to engage in counter-trade and ba rter transactions.  Moreover, where barter trade was permitted, such 
products were subject to the same tariff and non-tariff measures as like products imported through 
normal channels.  Kazakhstan applied the same WTO customs valuation-based system for such 
transactions as was applied to goods imported through normal channels; that was, if a transaction 
value of the imported merchandise could not be dete rmined, then the goods were valued on the basis 
of one of the other valuation me thods provided under the WTO cust oms valuation code, applied in 
sequential order.  Any barter and counter-trade  arrangements were only company-to-company. 
- Agricultural policies 
199. The representative of Kazakhstan said that K azakhstan required no licenses for agricultural 
purposes and provided information concerning do mestic support and export subsidies in the  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 59 
 
 
 agricultural sector in documents WT/ACC/SPEC/K AZ/6/Rev.1 and WT/ACC/SPEC/KAZ/7 with its 
addenda.  
200. She noted that with a view to providing financ ial support to agricultural producers, the state 
had allocated KZT 20 billion from the state budget in  2001, and KZT 21.9 billion in 2002, seeking to 
increase the volume of subsidies to KZT 49.2 billion in 2005 within the framework of the national 
program on agro-industrial sector development.  
201. Some members of the Working Party stated that they held concerns about the use of a "base 
period" that was not the most recent three-year period.  Kazakhstan's use of the period 1996-1998 
seemed to be inappropriate, characterised as it was by a large-scale debt forgiveness program that operated to artificially inflate AM S levels.  Asked to provide do mestic support and export subsidy 
information for the period 2000-2002, the representativ e of Kazakhstan said that the level of support 
provided in 2000-2002, when the Governmental financi ng was at its lowest due to the financial crisis, 
would not be sufficient to cover actual needs of the agricultural sector.  An assessment of the situation 
in the agricultural sector for 1991-2002, showed th at the needs of the agricultural sector did not 
diminish over the years and that the level of suppor t provided in 1996-1998 w ould still be relevant.   
202. She further noted that although the accumulation of debts was no longer widely practiced 
among producers of agricultural goods, a serious problem of deferred de bts of 1994-1997 still 
remained unresolved.  Within th e framework of the State Agro-Food Industry Development Program 
of 2003- 2005, the government planned to analyze debts of agricultural producers with the purpose of 
restructuring deferred debts of existing enterpri ses, write-off debts of enterprises that became 
bankrupt, and develop appropriate measures vis-à-vis   abolished enterprises.  
203. The representative of Kazakhstan said that th e agricultural sector was subsidised with 
preferential credits through the State Eximbank, st ate guarantees for foreign loans, and preferential 
loans through the Fund in support of agricultural sma ll and medium-size businesses.  These tools were 
used to strengthen reforms in the agricultural sect or and implement a single medium-term investment 
policy.  A set of criteria used for competitive selection of investment projects included:  (i) the compliance of investment projects with restructuri ng goals in the agriculture sector; (ii) creation of 
competitive markets for agricultura l commodities; (iii) use of modern machinery and technologies, 
and (iv) economic viability of projects.  She noted  that there were no export requirements to get 
financing from Eximbank, which applied same te rms and conditions across sectors and industries, 
regardless of markets in which the exports of agricultural products were sold.  Furthermore, 
preferential loans and credits to lease agricultural machinery were provided in accordance with the 
ADB Program Loan for the agricultural sector.  Like wise, the Agriculture Support Fund (ASF), set up WT/ACC/SPEC/KAZ/8/Rev.1 
Page 60  
 
 in December 1994, assumed the debts of agri cultural producers in the amount of over 
US$ 500 Million on the basis of individual agreements that stipulated the procedure, timing and 
conditions of repayment. 
204. Asked to provide more information on the support system for high-grade seeds, pedigree 
cattle and a farming development program, she said th at subsidies had been granted through the ASF, 
and that its main goal was to increase the efficien cy of agricultural production by compensating the 
costs incurred by seed breeding stations and livestock breeding stations as a result of price falls on 
seeds and breeding stock sold to agricultural producers.   The subsidies were also used to stimulate 
farmers to purchase pedigree cattle, use new equi pment, technology, high quality seeds, mineral 
fertilizers and to protect plants under the farming development program.    
205. Some members of the Working Party request ed information demons trating how domestic 
support measures for which exemption from the reduc tion commitments was clai med, met criteria set 
in Annex 2 of the Agreement of Agriculture for su ch exemptions.  They further asked Kazakhstan to 
confirm that no direct payments were made to fa rmers or processors.  More information concerning 
state procurement under "public stockholding for food security purposes" was also requested 
including how it met the paragraph 3 criteria of  Annex 2 of the Agreement of Agriculture. 
206. The representative of Kazakhstan referred to th e revised Tables DS:1 and stated that funds 
listed in Table DS:1 under "general services" were allocated for implementation of measures of general nature as well as for maintenance of service s provided by the Ministry of Agriculture.  These 
measures did not involve direct payments and did not grant price support to producers.  They met the 
requirements of Paragraph 1 and 2 of Annex 2 of the Agreement on Agriculture.  Furthermore, the 
representative of Kazakhstan stated that the public stockholding of grain was created to ensure food 
security in Kazakhstan and followed procedures set by the decision of the government for the 
corresponding year.  The mechanisms of the govern ment procurement of gr ain were determined by 
the Government decision adopted based on an appropria te level of transparency in terms of financial 
costs.  Government procurement of grain in the "b ase period", i.e. in 1996, was realized at market 
prices on the commodity exchange.  Grain from the state food security reserve was sold in the domestic market at market prices through open tender s or the commodity exchange.  The export price 
for grain set by the "Food Contract Corporation" al so reflected the situation in the world market as 
well as concluded contracts on grain supply.  Theref ore, the sale procedures of grain from the state 
reserve were in compliance with the WTO Agreemen t on Agriculture (paragraph 3, Article 2), which 
required that "sales from food security stocks sha ll be made at no less than the current domestic 
market price for the product and quality in question".  WT/ACC/SPEC/KAZ/8/Rev.1 
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 207. Some members of the Working Party further re iterated their views that Kazakhstan should not 
have recourse to Article 6.2 provisions of the WT O Agreement on Agriculture.  The representative of 
Kazakhstan replied that the afterm ath of implementation of structural reforms had been devastating 
for the agriculture sector of Kazakhstan.  The curre nt policy was therefore aimed at attracting long-
term investments in the agricultural sector.  This was being achieved with the participation of the 
international banks, in particular  the Asian Development Bank (ADB ) and the International Bank for 
Reconstruction and Development (IBRD ).  The representative of Kazakhstan stated that all the above 
investment projects completely conformed to the pr ovisions of Article 6.2 of the WTO Agreement on 
Agriculture.  She further stated that given the inte rest shown by international credit organizations in 
direct long-term investments into the agricultura l sector, Kazakhstan was willing to create favourable 
investment conditions.  Moreover, the policy of leasing agricultural machinery and the development 
thereof, ensuring availability of agricultural mach inery, was one of the top priority objectives for 
which a long-term plan had been established.   
208. She confirmed that Kazakhstan did not main tain any market price support measures or 
interference programs.  She referred to Article 18 of Law No. 1543-XII "On Protection and Support of 
Private Entrepreneurship" of 4 July 1992.  Direct  state regulation of prices of goods was, however, 
permitted only in cases where entrepreneurs abused their monopolistic position in the market.  This 
was regulated following guidelines of the anti-monopoly legislation.  
209. Underlining the statement of some members of the Working Party that Kazakhstan should 
make a commitment not to apply export subsidies on the date of accession, she said that Kazakhstan 
needed to use export subsidies due to its land-lo cked geographical location, the vastness of its 
territory, its remoteness from major agricultural markets and high transportation costs which 
drastically decreased the competitive power of Kaza khstan agricultural products.  Furthermore, the 
production of main export products exceeded by far the level of domestic demand, while export sales 
of agricultural products constituted one the main sour ces of income for the population of rural areas.  
The representative further noted that some WTO Members extensively exercised their right to 
subsidize exports. 
210. Some members of the Working Party noted that the neighbouring Kyrgyz Republic had 
agreed to treatment as a developed country for its  agriculture commitments, and had agreed to use 
5 per cent de minimis .  They therefore requested that Kazakhstan make the same commitment.  The 
representative of Kazakhstan replie d that given objective economic development criteria such as GDP 
per capita and income level of rural population, Kazakhstan with its GDP per capita US$ 1,997.2 in 
2003 not only belonged to the group of so-called middle-income countries (classification of the World WT/ACC/SPEC/KAZ/8/Rev.1 
Page 62  
 
 Bank), but could be, if looking at the persona l annual income of rural citizens (US$ 456.6), 
considered a poor country.  Moreover, because the Government started to implement the market 
economy reforms in agriculture only recently, the de velopment level of the agricultural sector still 
remained below the pre-reform stage.  The sh are of agricultural production in GDP fell from 
16.7 per cent in 1993 to 7.3 per cent in 2003.  Thus, Kazakhstan would sought for a number of 
preferences in the agriculture sector at the time of its accession to the WTO, which were close to 
benefits granted to developing countries and were  provided to a number of acceding countries with 
economies in transition.  
TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
General 
- Industrial property protection 
211. The representative of Kazakhstan said that the policies of Kazakhstan in the sphere of 
protection of intellectual property rights were ta rgeted at the fulfilment of the following three 
objectives:  (i) bringing the legislation regulating inte llectual property rights in line with international 
standards; (ii) developing mechanisms ensuring en forcement of provisions of the laws on protection 
of intellectual property rights; and (iii) training expe rts for protection of intellectual property.  This 
policy aimed to ensure lawful use and protection of intellectual property in Kazakhstan and was set 
forth in the Concept of Protection of Intellectual Property Rights, approved by the Resolution of the 
Government of Kazakhstan No. 1249 of 26 September 2001. 
212. She provided detailed inform ation on implementation of the WTO Agreement on Trade-
Related Aspects of Intellectual Property Rights (TRIPS) in document WT/ACC/KAZ/24 and said that 
existing legislation governing the protection of in tellectual property rights included the General Part 
of Civil Code of 24 December 1994, the Special Part of Civil Code of 1 July 1999, the Criminal Code, 
the Administrative Offences Code, and the Laws  "On Copyright and Neighbouring Rights" of 
10 June 1996, "On Trade Marks, Service Marks and Appellations of Places of Origin of Goods" of 
26 July 1999, "On Patents" of 16 July 1999, "On Protection of Selective Achievements" of 
26 July 1999, "On Customs Business", "On Lega l Protection of Layout Design of Integrated 
Microcircuits" of 29 June 2001 and Law "On Changes and Amendments to Legislative Acts of the 
Republic of Kazakhstan on Intellectual Property" of 9 July 2004 (document WT/ACC/KAZ/50/Add.1 
refers).    WT/ACC/SPEC/KAZ/8/Rev.1 
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 213. She also provided action plan on the harmoniza tion of the national legislation on intellectual 
property rights with TRIPS for the period of 20 04-2006 in document WT/ACC/KAZ/48, noting that 
Kazakhstan would be introducing further changes to the existing legislation; draft a Law "On 
Software and Program Complexes"; implement program s to improve legal practices; provide training 
for officials; and enlist technical assistance fro m international organizations and associations.  
Moreover, the Government was preparing amendmen ts and addenda to the current criminal and 
administrative legislation concerning enforcement of measures for infringement of intellectual 
property rights and illegal use of a copyright. 
- Responsible agencies for policy formulation and implementation 
214. The representative of Kazakhstan stated that th e Committee for Intellectual Property Rights of 
the Ministry of Justice had been established by Government Resolution No. 411 "On Issues Relating 
to the Committee for Intellectual Property Rights of the Ministry of Justice" of 29 March 2001.  The 
Committee replaced the Committee for Copyright and the Republican State Enterprise on Patents and 
Trademarks "Kazpatent", and was authorized to  perform specific executive, monitoring, and 
supervisory functions, as well as general administrati on in the sphere of protection of intellectual 
property rights.   
215. She noted that production and commerce activities re lating to scientific issues of intellectual 
property were delegated to a state enterprise "N ational Institute on Intellectual Property of the 
Committee on Intellectual Property Rights of the Mini stry of Justice of the Republic of Kazakhstan". 
- Participation in international intellectual property agreements 
216. The representative of Kazakhstan confirmed th at Kazakhstan was a party to a number of 
international treaties, agreements , and conventions, including the Convention Establishing the World 
Intellectual Property Organization (WIPO); the Pa ris Convention for the Protection of Industrial 
Property; the Madrid Agreement Concerning the In ternational Registration of Marks; the Patent 
Cooperation Treaty (PCT); the Berne Convention for the Protection of Literary and Artistic Works; 
the Nice Agreement Concerning the Internationa l Classification of Goods and Services for the 
Purposes of the Registration of Marks; the Stras bourg Agreement Concerning the International Patent 
Classification; the Budapest Treaty on the International Recognition of the Deposit of 
Microorganisms for the Purposes of Patent Proce dure; the Universal Copyright Convention; the 
Locarno Agreement Establishing an International Cl assification for Industrial Designs; the Trademark 
Law Treaty; the Eurasian Patent Convention; and the Convention for the Protection of Producers of WT/ACC/SPEC/KAZ/8/Rev.1 
Page 64  
 
 Phonograms Against Unauthorized Duplication of Their Phonograms.  Furthermore, in April 2004 
Kazakhstan acceded to the WIPO's Copyright Treat y and the Performances and Phonograms Treaty.   
217. She noted that Kazakhstan had bilateral co-opera tion agreements in the area of intellectual 
property with the Republic of Azerbaijan, the Kyr gyz Republic, Georgia, the United States and the 
Russian Federation. 
218. Asked about obligations pursuant to the coope ration agreement with the Russian Federation 
and to the Eurasian Patent Convention, she replie d that the agreement introduced national treatment 
for applicants from the Russian Federation in conn ection with issuing titles of protection and payment 
of fees.  She further stated that in acceding to  the Convention, Kazakhsta n did not undertake any 
obligations extending beyond the framework of the Paris Convention.  Furthermore, there were no 
specific obligations contained in the bilateral agr eements signed with other CIS countries which it did 
not wish to extend to other countries. 
- Application of national and MF N treatment to foreign nationals 
219. The representative of Kazakhstan stated that Ar ticle 12.4 of the Constitution, Article 3.7 of 
the Civil Code, as well as Article 5 of the Law "O n Copyright and Related Rights"; Article 48 of the 
Law "On Trademarks, Service Marks and Appellatio n of Origin of Goods" (WT/ACC/KAZ/26 refers) 
and Article 38 of the Patent Law (WT/ACC/KAZ/26 re fers) granted natural a nd legal persons national 
and most-favored nation treatment. 
220. Some members of the Working Party expressed c oncerns regarding the difference in fees for 
certain industrial property rights charged to nati onals and non-nationals of  Kazakhstan, and asked 
how such differences could be justified if Kaza khstan's Constitution and Ci vil Code required that 
natural and legal persons be give n national legal treatment.  The re presentative of Kazakhstan replied 
that these laws guaranteed national legal treatment unless an exception was stipulated by the legislation.  Resolutions No. 889 of 20 Oct ober 1992 and No. 266 of 6 April 1993 established 
different fees for Kazakhstan a nd foreign nationals, although the fo reign nationals coming from the 
countries where annual GDP per capita was less th an US$ 3,000 (under UN classification) could 
obtain certain preferences in order to account for the differences in the so-called "purchasing 
power/capacity" between developed a nd developing countries.  She noted that the Government planed 
to eliminate the existing discrepancies by the end of 2004.   
221. Some members of the Working Party also noted that nationals of the Russian Federation and 
the Kyrgyz Republic did not need to engage the servi ces of a patent or trademark attorney in order to  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 65 
 
 
 file applications with the Committee for Intellectua l Property Rights.  Additionally, the patent fees 
could be paid in Russian Rubles or Kyrgyz Som, pursuant to the schedule applicable to Kazakhstan 
nationals.  Asked how the Governme nt intended to bring its legislation into conformity with WTO 
most-favoured nation requirements, she replied that, in her view, these provisions were in conformity 
with Article 4A.2 of the Paris Convention a nd Article 4.d of the WTO TRIPS Agreement. 
Substantive Standards of Protection, Including Pr ocedures for the Acquisition and Maintenance 
of Intellectual Property Rights 
- Copyright and related rights 
222. The representative of Kazakhstan said that the Law "On Copyright and Neighbouring Rights" 
of 10 June 1996 and provis ions of the Berne Convention, which were applied directly in accordance 
with Article 4 of the Constitution, extended protec tion of literary, artistic and scientific works to 
incorporate all forms of copyright covered by th e TRIPS Agreement.  Even though, the protection 
included computer programs, computer operating systems and databases defined as collection of 
information (Articles, calculations, facts, etc.) which due to selection and/or organization of the 
materials represented results of a creative work a nd were systematized in such a manner that the 
information could be retrieved and processed with the help of a computer, the Government still 
planned to draft a Law "On Software and Program  Complexes" by the 2006 in order to fulfil 
requirements of Article 10 of the TRIPS Agreement.  Rental rights for musical works in the form of a text of note, works fixed on phonograms, audio a nd visual items, data base and computer software 
were provided for in Article 16 of the La w "On Copyright and Neighbouring Rights". 
223. Article 28 of the Law "On Copyright and Nei ghbouring Rights" provided a term of protection 
of the whole period of author's life and 50 years following the death of the author except for cases 
stipulated in the article.  Anonymous and pseudony mous works were protected for 50 years after the 
date of promulgation unless the author was revealed.  Special terms for cinematographic and 
photographic works were not envisaged.   
224. Asked about protection of works that were still pr otected in their country of origin and that 
have not had full term of protecti on in Kazakhstan, she replied that  Kazakhstan extended protection to 
such works as provided in Article 28 unless they had fallen into the public domain in the country of 
their origin.  Works, whose terms of protection expi red, fell into the public domain and were deemed 
to be national property in accordance with Article  29 of the Law "On Copyright and Related Rights" 
and could be used free of charge by any pers on.  She noted that the Law "On Changes and 
Amendments to Legislative Acts of the Republic  of Kazakhstan on Intellectual Property" of WT/ACC/SPEC/KAZ/8/Rev.1 
Page 66  
 
 9 July 2004 introduced retroactive protection pr ocedures and other amendments to the Law "On 
Copyright and Related Rights".   
225. A member of the Working Party urged the government of Kazakhstan to increase the 
penalties for copyright piracy and impose penalties that were sufficient to act as an effective deterrent 
to potential pirates and counterfeiters.  The represen tative of Kazakhstan res ponded that even though 
the Government considered that the penalties were  sufficiently strict, it was preparing amendments 
and addenda to the current criminal and admini strative legislation concerning enforcement of 
measures for infringement of intellectual prope rty rights and illegal use of copyright.   
- Trademarks, including service marks 
226. The representative of Kazakhstan stated that on 26 July 1999 the Parliament of Kazakhstan 
adopted a new Law "On Trade Marks, Service Marks  and Appellations of Or igin" (Trademarks Law) 
in which all requirements of the Articles 15-24 of the WTO TRIPS Agreement were taken into 
account.  Other legal act were the Rules for Filing an d Submission of Application for Registration of a 
Trademark and the Rules for Processing of Application for Registration of a Trademark, both dated 8 October 1996; and Decree No. 133 adopting "The Instruction on Recognition of Trademark (Service 
Mark) as Well-Known" dated 15 August 2002.  Furthe rmore, she noted that the terms of the Paris 
Convention, specifically Article 6bis and 10bis, were directly applicable in accordance with Article 4 
of the Constitution. 
227. She noted that the Trademarks Law accorded tr ademark protection to all pictorial, verbal, 
letter, digital, volumetric and other designations or  their combinations that allowed to distinguish 
goods and services of one manufacturer from similar goods and services of another manufacturer.  Exceptions were designations identical or confusingly similar to those already protected and designations that had become generally accepted sy mbols.  Well-known trademarks were protected 
without restrictions regarding classes of goods and services.  Protection of trademarks was provided 
on the basis of the registration and issuance of  a trademark certificate by the Committee for 
Intellectual Property Rights and was available to a ll owners of well-known trademarks whether their 
trademark rights were registered in Kazakhstan or not.   
228. She further noted that the registration of a tr ademark could be contested and deemed invalid 
in full or in part and that the owner of a well- known trade mark could petition courts of Kazakhstan to 
recognize his mark as well-known and prevent its co ntinued unauthorized use.  The owner bore the 
burden of establishing that the trademark was "well known" and was required to provide proof based 
on a result of public-opinion polls.  Besides results of  the polls, the authorities could also consider  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 67 
 
 
 information about extensive use of the trademark in  Kazakhstan, methods of its use, sales volume and 
the marketing outlets; information about the annual average number of consumers, the cost of the 
trademark, how extensive the advertising of this tr ademark was, and the extent of initial of acquired 
distinctiveness of the trademark; and information ab out the trademarks use or a similar trademark by 
third parties, about the number of licensees, about registration of the trademark abroad, etc. 
229. The validity of a trademark was 10 years with po ssibility of extension for another ten years as 
petitioned by the owner.  Any pers on could file for a cancellation of a trademark to the Appellate 
Council of the Committee for Intellectual Property Right s for reasons of non-use after five years of 
non-use, however the owner of the trademark had the right to submit evidence demonstrating that 
non-use was due to circumstances beyond his control.  The Government planned to shorten the non-use term to three years.    
230. Asked whether a trademark could be transferred,  the representative of Kazakhstan replied that 
assigning the rights for a trademark entailed cession of  the trademark itself when used with certain 
products or services, and the business reputation gained by the trademark during its use.  For licensing rights and exclusive rights to a trademark, the writte n agreement had to contai n provisions stipulating 
that the quality of the goods associated  with the licensee's use of the trademark must not be inferior to 
those of the licensor's as well as provisions providing to the licensor the right to supervise compliance 
with the term of the agreement.  Licensing and assi gnment agreements had to be registered with the 
Committee for Intellectual Property Rights, which regulat ed contractual relations between the parties.  
Asked about possible negative effects of the registra tion procedure for such agreements, she explained 
that official registration of agreements with th e Committee implied that the rights of a person, to 
whom the exclusive rights for industrial property were  assigned, must not be infringed in any way, if 
the other party wanted to further make any chang es in the agreement made, and that such changes 
could only be made by court's decision. 
- Geographical indications, including appellations of origin 
231. The representative of Kazakhstan said that th e Law "On Trade Marks, Service Marks and 
Appellations of Origin" (Trademarks Law) in cluded provisions on geographical protection in 
Kazakhstan.  The Law provided equal protection for national and international appellations of origin, 
provided that the international appellations of orig in were protected by international treaties and 
agreements to which Kazakhstan was a party. 
232. Geographical indications could be registered if they denominated a product whose specific 
qualities were mainly or exclusively associated with its place of origin (including natural conditions WT/ACC/SPEC/KAZ/8/Rev.1 
Page 68  
 
 and/or human factors).  Only geographical indicati ons associated with a particular product could be 
registered.  The registration certificate entitled the ow ner to the right to use the appellation of origin 
for the goods listed in the certificate.  Registration of geographical indications was prohibited if it 
could mislead consumers as to the place of origin or if such a registration could infringe upon the 
rights of third parties.  Finally, the use of geogra phical indications which clearly misled consumers as 
to the product's place of origin was not given any protection whatsoever.  Asked whether geographical 
indications were protected against unfair competition,  she referred to Articles 5 and 6 of the Law "On 
Unfair Competition."   
233. Applications for geographical protection could be filed with the Committee for Intellectual 
Property Rights by any person (rega rdless of citizenship) by providi ng:  (i) a single name indicating 
the place of origin of a good; (ii) a name and address of the applicant(s); (iii) the designation which 
was applied to the good; (iv) the type of product fo r which the registration of the appellation of origin 
was sought including its place of manufacture or natu ral occurrence (or both) and a description of the 
specific properties of the good; and (v) a document conf irming the authority of a patent attorney to act 
on behalf of the applicant.  While residents could submit their applications directly to the Committee 
for Intellectual Property Rights, foreign applicants had to submit their applications through a patent 
attorney.   
234. She noted that while the application for regist ration of an appellation of origin used in 
association with goods originating within the territory  of Kazakhstan, also entailed conclusion of the 
local administrative body certifying that the applicant resided in its territory and that the quality of 
goods originating therein was associated with th e natural conditions and human factors of that 
geographical place, the registration of an appella tion of origin used in association with goods 
originating outside the territory of Kazakhstan, entailed only document certifying the right of the 
foreign applicant to the geographical indication in association with the product from the country 
where the goods originated.  
235. In respect to wines and spirits, she said that  the Trademarks Law provided for protection 
stipulated in Articles 22 and 23 of WTO TRI PS Agreements, concerning the protection of 
geographical indications, including geographical indications for wines and strong beverages. 
236. Asked about the protection against use of geogra phical names which were applied for later or 
were confusingly similar, she replied that designati ons that were false, identical, confusingly similar 
or capable of misleading a consumer concerning the place of a good's origin, could not be awarded protection under the Trademark Law.  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 69 
 
 
 - Industrial designs 
237. The representative of Kazakhstan noted that the rights for industrial designs were regulated by 
the Patent Law and certified by preliminary patent s and patents provided that  the applied industrial 
design met the patentability requirements, such as nove lty, originality, and industrial application.  
Article 8 of the Patent Law which stipulated that artistic-design solution determining the exterior of a 
product fell into the category of an industrial design,  also applied to textile goods since they were a 
type of industrial design. 
238. She further noted that a preliminary patent for an industrial design was valid for five years, 
whereas a full patent was valid for ten years follo wing the application's date of submission.  Full 
patents could be extended upon request of the owner for a period not exceeding five years.  The owner 
of a patent for an industrial design had the exclusive right for its use.  A person other than the patent 
owner could use the protected industrial design onl y with permission of th e patent owner and under 
the licence agreement subject to compulsory regist ration with the Committee for Intellectual Property 
Rights. 
- Patents 
239. The representative of Kazakhstan stated that the Patent Law contained all the requirements of 
Articles 25-34 of the WTO TRIPS Agreement.  In pa rticular, the Law contained provisions regulating 
conditions and procedures for judicial granting of co mpulsory licenses to use inventions, as well as 
other forms of utilization without a permission of a patent owner pursuant to the requirements of 
Article 31 of the WTO TRIPS Agreement.  It specified  the extended list of manners to protect patent 
owners' rights and extended the subject matter to inve ntions, industrial designs and utility models.   
240. She noted that Article 6(2) of the Patent Law provided an exhaustive list of things that could 
be patented as invention, such as a device, a process,  a substance, a micro-organism strain or a culture 
of plant or animal cells, and also the use of a known device, process, substance or strain for a new 
purpose.  An invention was granted legal protection if it was new, involved an inventive step and was 
industrially applicable.  The Patent Law did not recognize as inventions:  (i) discoveries, (ii) scientific theories, (iii) mathematical methods; (iv) me thods of economic organi zation and management; 
(v) symbols, schedules, and rules; (vi) rules a nd methods of mental activities; (vii) algorithms per se  
and computer programs; (viii) projects and plans of  buildings and structures,  and land development; 
(ix) proposals concerning solely the outward appearance of manufactured goods; and (x) proposals the prevention of the commercial exploitation of which was necessary to protect public order or morality.  
Asked whether exclusion of patentabilty of "propo sals that were contrary to the public interest, WT/ACC/SPEC/KAZ/8/Rev.1 
Page 70  
 
 humanitarian principles and morality" met the requireme nts of Article 27(2) of TRIPS Agreement, she 
replied that in her view such provisions did not  provide for any discriminatory terms and met the 
requirements of Article 27(2) of the WTO TRIPS Agreement.  
241. Asked about the difference between preliminary and full patents, she replied that the degree 
of protection provided by a preliminary patent was f unctionally equivalent to that provided by a full 
patent.  The principal difference was in the pro cedure for issuance and the period of validity.  
Preliminary patents for industrial designs could be issued after formal examination of the application 
and were valid for a period of five years.  Full patents for industrial designs were issued after 
conducting substantive examination of the patent application, provided that the full patent application 
was filed within four years of the date of filing an application for a preliminary patent with the 
Committee for Intellectual Property Rights.  The subs tantive examination included verification of the 
patentability conditions of the indus trial design (novelty, originality and industrial application).  The 
full patent was then valid for a period of ten years.   If the preliminary patent holder, however, did not 
timely submit an application for conducting a full expertise (four years from the date of filing of 
application for a preliminary patent), the preliminary patent was cancelled from the moment of the 
preliminary patent's date of expiration (five years fro m the date of application).  He further noted that 
it was possible to prolong the validity of an industrial design patent for up to five years upon receipt of a petition by the patent holder.  
242. She further noted that an application for a pr eliminary patent had to be examined during a 
term of two months following the date of receipt, within which time the applicant had the right to 
amend or correct the elements of the application on  his own initiative, provided that the amendments 
or corrections did not modify the essence of the claimed industrial property.  In a case where the preliminary examination resulted in a decision to i ssue a provisional patent and following payment of 
appropriate fees, the details were published in th e Bulletin of the Committee for Intellectual Property 
Rights.  The substantive examination was carried  out by the Committee for Intellectual Property 
Rights at the request of the applicant or the owner of the provisional patent, filed within three years 
after receipt of the application or within five years in case of renewal of the term of the preliminary patent.  If the results of substantive examination we re positive, the patent office granted a patent for a 
term of 20 years starting on the date when the application was filed.  
243. Asked about protection against misappropriatio n or misuse of information of the first 
applicant by the second applicant when obtaining pe rmission for sale of the same product, she replied 
that the legislation provided no definition of "the s econd applicant," because the priority for a patent  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 71 
 
 
 protection was determined by the date of filing of an application and the right holder had the exclusive 
right for the protected industrial property.  
244. The representative of Kazakhstan added that ri ghts to utility models were granted patent 
protection, if utility models met the patentabilit y requirements, including novelty and industrial 
applicability.  Utility model patents were granted for a period of five years, subject to subsequent 
renewal at the request of the patent owner for a pe riod not exceeding three years.  Exclusive rights to 
use protected utility models and cover infringements we re identical with the rights and infringements 
determined for protected inve ntions and industrial designs. 
245. Under the Patent Law, the owner of a preliminary patent or a patent had the exclusive right to 
use the industrial property subject matter at his ow n discretion, while the manufacture, use, sale, 
storage, import, and any other form of marketing of goods produced by means of the unauthorized use 
of the protected invention were deemed as infri nging exclusive rights of the patent owner.   
246. She noted that protected inventions could be used only by obtaining authorisation of the 
patent owner under a licensing agreement subject to  compulsory registration with the Committee for 
Intellectual Property Rights.  In the case of four years of uninterrupted non-use, any interested party 
had the right to file with the court of law an application requesting a compulsory licence to use non-
used invention, providing they supplied evidence of such non-use.  The court would issue a compulsory licence by specifying the term and scope  of use, as well as terms, amount and conditions 
of payments, unless the owner of the patent prove d that non-use was due to valid reasons.  The 
compulsory licence would be non-exclusive, while the amount of payment could not be lower than the 
market value of the licence.   
247. She further noted that Article 12 of the Patent  Law established that the following were not 
considered to be a violation of the exclusive right of a patent holder:  (i) application of a patent in the 
structure of/used for operation of transportation means, provided that they were in Kazakhstan 
temporarily or by accident and the patent was used for the needs of such transportation means; 
(ii) research or an experiment on an object contai ning a patent; (iii) applic ation of a patent in 
emergency situations (natural and other disasters, major accidents) with immediate notification of the 
patent holder and subsequent payment of the co rrespondent compensation to the patent holder; 
(iv) application of a patent for personal need s without a commercial purpose; (v) a one-time 
preparation of medicine pursuant to a doctor's pres cription.  The aforementioned provisions met, in 
her view, the requirements of Article 31 (a)-(k) of the WTO TRIPS Agreement.  As for the requirements of Article 31(1) of the WTO TRIPS Agreement, the representative of Kazakhstan noted that there were no definitions of "the first patent" and "the second pa tent" in Kazakhstan. WT/ACC/SPEC/KAZ/8/Rev.1 
Page 72  
 
 248. Asked about burden of proof, she replied that in accordance with the Civil Code each party 
was responsible for proving its own claims and st atements.  Other persons involved in the process 
could provide evidence too.   
- Plant variety protection 
249. The representative of Kazakhstan said that new kinds  of plants and animals were protected in 
accordance with the Law "On Protection of Selectio n Achievements" of 13 July 1999.  The law was 
awarded positive legal opinion by the International Union for the Protection of New Plant Varieties 
(UPOV), because of its conformity with the Intern ational Convention for the Protection of New Plant 
Varieties (Geneva, 2 December 1961 reviewed in 1972,  1978, 1991).  She noted that in her opinion, 
having adopted this Law, Kazakhs tan met the requirement of Article 27(3) (b) of the WTO TRIPS 
Agreement, according to which WTO members had to ensure protection of plan t varieties either by 
patents, effective independent single system, or a combination thereof. 
- Layout designs of integrated circuits 
250. The representative of Kazakhstan said that legal protection of layout designs of integrated 
microcircuits in Kazakhstan was provided by Law No . 217 "On Legal Protection of Layout Design of 
Integrated Microcircuits" of 29 June 2001 ( see WT/ACC/KAZ/36/Add.1), and was implemented on 
the basis of Articles 1013-1016 of the Civil Code  of Kazakhstan (Special Part), in which the 
requirements of Article 35-38 of the WT O TRIPS Agreement were reflected.   
- Requirements on undisclosed information,  including trade secrets and test data 
251. The representative of Kazakhstan said that Articl e 126 of the Civil Code ensured protection of 
information of real or commercial value under the civil legislation, provided that it was unknown to 
third parties, its confidentiality was strictly pr eserved, and the free access to such information was 
denied on a legal basis.  Moreover, the law also pr otected confidential data or other information which 
was required in the process of approving the marketing or sale of chemical, pharmaceutical, or agricultural products.   
252. Asked about how the Patent Law met the requi rements of Article 39(3) of the WTO TRIPS 
Agreement, she replied that in accordance with Ar ticle 34 of the Patent Law, disclosure of the 
industrial property without the authorization of th e author or the applicant before publication of 
information about the industrial propert y entailed responsibility under the laws.  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 73 
 
 
 253. She further noted that a person accessing rest ricted information deliberately or under 
negligence, could be liable for acts constituting unf air competition in accordance with Article 158 of 
the Law "On Administrative Violations" and Ar ticle 184 of the Criminal Code.  Moreover, 
Article 200 of the Criminal Code pr ohibited collection of information that constituted a commercial or 
banking secret by persons who had access to such in formation in a job or work capacity, including 
disclosure or use of such information for mercenary or other personal interest without the consent of 
the owner.  Employees of ministries and other state agencies who disclosed protected information were held administratively responsible together with ministries or state agencies employing them. Such disclosure was punishable by imprisonment of up to three years, payment of fines, arrest, or 
correctional labor. 
254. Asked how a person in control of restricted info rmation could enforce his rights, she said that 
the civil law provided a number of judicial means, such as option file a complaint with the court having jurisdiction over the alleged rights violation.  The court could order reimbursement of damages 
and all costs incurred by the claimant.  
255. Asked  whether the draft Law "On Commercia l Secrets" mentioned in WT/ACC/KAZ/24 was 
adopted, the representative of Kazakhstan replied that the said draft law was withdrawn from the 
hearing in the Parliament. 
- Measures to Control Abuse of Intellectual Property Rights 
256. The representative of Kazakhstan said that, in general, intellectual property rights were 
protected by civil legislation in the course of common court procedures (procedures initiated in the 
form of a lawsuit).  Also, the legislation of Kazakhstan provided criminal, administrative, and civil 
liabilities for the infringement of intellectual property rights, stipulated in Articles 184 and 199 of the 
Criminal Code, Articles 128, 129, 145 of the C ode "On Administrative Violations", the Law "On 
Copyright and Related Rights", "On Trademarks, Se rvice Marks and Appellations of Origin", the 
Patent Law, and other laws.  Furthermore, on 26 September 2001 the Government approved the 
Intellectual Property Protection Concept by the Re solution No. 1249.  In order to implement the 
concept, the Government of Kazakhstan adopted the Program of Implementation of Intellectual 
Property Protection Concept by its Resolution No. 591 of 29 May 2002. 
257. The representative of Kazakhstan stated that the a doption of the special part of the Civil Code 
in 1999, in which a whole section was dedicated to the issues of intellectual property and which 
contained fundamental norms regulatin g the relations in the area, was the most important stage in the 
formation of a domestic legislative base in the area of intellectual property. WT/ACC/SPEC/KAZ/8/Rev.1 
Page 74  
 
 258. Some members of the Working Party asked what  efforts were being made to educate the 
public to avoid activities that infringe the rights of intellectual property owners.  The representative of 
Kazakhstan responded that the Committee for Intellect ual Property Rights regularly held regional and 
national workshops on protection of intellectual property rights in order to upgrade qualifications of 
the persons dealing with intellectual property rights pr otection matters, and to share experience in this 
field.  Officials of the justice, law, and customs bodies, judges, owners of intellectual property rights, 
as well as users and mass media took part in work shops.  She further noted that the Committee for 
Intellectual Property Rights conducted seminars jointly  with such international organisations as the 
World Intellectual Property Organisation, the Coaliti on for Intellectual Property Rights Protection, the 
Phonograms Producers International Federation, US AID, etc.  Additionally, officials of the 
Committee on Intellectual Property Rights also activel y participated in radio and television shows on 
protection of intellectual property rights in Kazakhsta n.  The Ministry of Justice initiated a national 
campaign, called "Intellect", in October 2003 and Ap ril 2004.  That was the first large-scale campaign 
of the Ministry of Justice with the active particip ation of other interested public bodies, international 
agencies, public associations, commercial organisations , educational institutions, mass media, and the 
population of Kazakhstan, aimed at promoting concep ts of intellectual prope rty, enhancing public 
intolerance toward piracy, strengthening the role of intellectual property as well as the status of 
authors, innovators, inventors, etc. 
259. Moreover, the representative of Kazakhstan not ed that the number of applications for 
registration of copyright and related rights as well as  of licence agreements for use of copyright and 
related rights has increased, which shows that the number of aut hors and persons knowledgeable in 
copyright and related laws had increased. 
260. Asked about measures to control the importati on of infringing goods into Kazakhstan, the 
representative of Kazakhstan replied that pursuant to  the Customs Code of Kazakhstan, the Central 
Customs Body of Kazakhstan maintained a register  of goods, containing intellectual property and 
ensuring its periodical publication.  She further noted  that pursuant to the Customs Code, the Customs 
Control Agency of Kazakhstan c ould suspend the customs processing of goods, including intellectual 
property, if it found that these goods violated the right s of intellectual property of an applicant.  While 
suspending processing of goods containing intellectual property, the legal owner within three working 
days of receipt of notification of such suspension w as obliged to effect payment at the rate sufficient 
for compensation of losses of the declarer in connec tion with the suspension of the goods' release.  
The above rate was specified by the Customs Contro l Agency of Kazakhstan.  Furthermore, under the 
Customs Code, the decision of the Customs Control Agency on inclusion of goods containing 
intellectual property into the register for a term speci fied by an applicant guaranteed that the rights of  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 75 
 
 
 the possessor of rights were protected by customs bodies for a term of not more than two years after 
the day on which goods were included in the register. 
Enforcement 
- Civil judicial procedures and remedies 
261. The representative of Kazakhstan noted that the Civil Code, Criminal C ode, Article 33 of the 
Patent Law, Article 42 of the Law "On Trademar ks, Service Marks and Appellations of Origin" 
provided that there was no discrimination betw een domestic and foreign parties in disputes 
concerning intellectual property rights.  Foreign a nd domestic owners of intellectual property rights 
had the right to settle disputes in the court of law arising from:  (i) authorship; (ii) legality of the grant of a title of protection; (iii) infringements of th e exclusive rights and of other economic rights; 
(iv) identification of the patent owner; (v) gr ant of a compulsory licence; (vi) conclusion and 
execution of licence contracts; (vii) compensation a nd damages for infringement of exclusive rights; 
and (viii) other disputes arising from the title of prot ection.  Moreover, the rights holder had the right 
to apply for the protection of his or hers rights to  local authorities or administration, which was not 
viewed as an action preventing application to the court.   
262. She noted that in accordance with Article 66(4) of the Civil Code, the court could assist the 
parties to a dispute in obtaining the necessary evid ence upon their request by providing the requesting 
party an official letter of request for obtaining su ch evidence.  Moreover, Article 74(1) of the Civil 
Code stipulated that a party could request se curing of evidence when doubting that necessary 
evidence would be obtainable later in time.  
263. Asked whether judicial authorities had the authority to order the infringer to pay the right 
holder damages to compensate for the injury, she replied that in accordance with the civil, 
administrative, and criminal legislation of Kazakhsta n, the court had the authority to recover from the 
violator damages incurred by the right holder.  Mo reover, in accordance with Article 111 of the Civil 
Code, the court could order the infringer to compen sate the successful party for costs.  Articles 9 and 
917 of the Civil Code stipulated that a person who se rights had been violated could demand complete 
recovery of losses, unless otherwise provided by law or contract.  The violator should provide complete recovery of the damage caused by his or her act or omission to the property or non-property 
rights and goods of citizens or legal entities. 
264. She further noted that Article 49 of the Law "O n Copyright and Related Rights," stipulated 
that a judge could order seizure and withdrawal of all copies of works and phonograms that were WT/ACC/SPEC/KAZ/8/Rev.1 
Page 76  
 
 suspected of being counterfeit, as well as all mate rials and equipment designated for their production 
and reproduction.  Counterfeit copies of works or pho nograms could be transferred to the copyright or 
related right holder upon his request, or be destro yed court order.  The materials and the equipment 
used for their reproduction was destroyed or made the property of the state by the resolution of the 
court.  In accordance with the Law "On Trademar ks, Service Marks, and Appellations of Origin" 
(Article 44), a person illegally usin g a trademark or appellation of origin or using a confusingly 
similar designation, had to destroy the images of the trademark or of the appellation of origin and 
remove it from the product, its packaging, bl ank forms and other documents, unless that was 
impossible and  the relevant goods were destroyed in  the procedure provided by the legislation.  The 
Patent Law stipulated that a patent holder had the right to demand cessation of the violation of the title 
of protection and to seize the pr oducts which were recognized as viol ating the title of protection, and 
the means designated specifically for violation of the right (Article 15). 
265. Some members of the Working Party asked what tr aining, if any, had been provided to judges 
to enable them to consider disputes involving intellectual property rights.  The representative of 
Kazakhstan responded that judges took active part in events (workshops, conferences, roundtables) 
for discussion of the intellectual property rights protection issues.  In 2002, for instance, the Committee for Intellectual Property Rights together  with the World Intellectual Property Rights 
Organisation (WIPO) and Coalition for Intellectua l Property Rights (CIPR) held a workshop for 
judges, in which judges from Oblast centres, Almaty and Astana took part. 
- Provisional measures 
266. The representative of Kazakhstan said that ju dges and administrative authorities had the 
authority to grant interim measures if any delay w as likely to inflict irreparable harm to the right 
holder or if a provable risk existed that the eviden ce would be destroyed.  Civil legislation and Law 
"On Copyright and Related Rights", implementi ng provisions of Article 50 of the WTO TRIPS 
Agreement, provided judges with the power to ta ke the following measures at the request of the 
claimant or upon their own initiative: 
- to arrest the defendant's property; 
- to prohibit a defendant from taking certain  actions including sale of goods bearing a 
trademark belonging to the complainant;  
- to prohibit other persons from transferring pr operty to the defendant or from fulfiling other 
commitments with regard to the defendant;  
- to suspend sales of property in case of a suit to free the property from seizure; 
- to suspend a contested act issued by a governmental body, organization or official person; and  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 77 
 
 
 - to suspend recovery made in accordance with an  executive document, if the debtor contested 
this document.  
- Administrative procedures and remedies 
267. The representative of Kazakhstan stated that (i) non-criminal but illegal use of an invention, 
industrial design or model, disclosure without consen t of an author or an applicant of a scientific 
discovery, invention, industrial design or model prio r to its official publication, as well as usurpation 
of the authorship or coercion into joint author ship (Article 128 of the Code of Administrative 
Violations); (ii) sale, hire and other illegal use of copyright or related rights (Article 129 of the Code 
of Administrative Violations); and (iii) illegal use of a trademark, service mark, appellation of origin 
or similar designations for goods (services), as well as illegal use of a firm name unless the above actions resulted in severe damages (Article 145 of  the Code of Administrative Violations) were 
considered an infringement of intellectual propert y rights and entailed administrative responsibility. 
268. She noted that such infringements could l ead to review by the bodies authorised by 
Articles 128, 129 and 145 of the Code of Admi nistrative Violations, which could include 
Administrative Commissions.  Review would start with the introduction of members of a Commission, other review body or individual officials, followed by the announcement of a protocol of administrative violation.  Petitions were permitted during meetings and the persons that 
participated in the review were given a hearing, and the evidence was examined.  After consideration 
of the case, the administrative body terminated the proceedings or imposed an administrative sanction, such as: 
(i) for violations covered by Article 128:  fines for natural persons equi valent to 15-20 monthly 
calculation indices (MCI), for officials equivalent to 20-50 MCI, and for legal entities equivalent to 300-400 MCI;  
(ii) for violations covered by Article 129:  fines fo r natural persons equiva lent to 3-5 MCI, for 
officials equivalent to 5-10 MCI, legal entiti es up to 100 MCI with confiscation of copies of 
works and phonograms; for repeated violations:  fines for natural persons equivalent to 
5-10 MCI, officials equivalent to 10-20 MCI, legal entities in equivalent to 200 MCI with 
confiscation of copies of works and phonograms;  
(iii) for violations covered by Article 145:  fines fo r natural persons up to 5 MCI, officials up to 
15 MCI, legal entities up to 100 MCI. 
Any interested party disagreeing with the court deci sion could challenge it in a higher court of law. WT/ACC/SPEC/KAZ/8/Rev.1 
Page 78  
 
 269. Asked about what administrative actions were av ailable to the owners of intellectual property 
rights to enforce those rights, what agencies were re sponsible for such actions and how foreign parties 
could invoke such actions, she replied that the appl icant (foreign or resident) had the right to raise 
objections to the Appellate Council of the Committ ee on Intellectual Property Rights (Articles 22, 23 , 
and 29 of the Patent Law and Article 12, 23, an d 31 of the Law "On Trademarks, Service Marks and 
Appellation of Origin ").  If the applicant remained  dissatisfied with the decision of the Board of 
Appeal, the applicant had the right to further appeal that decision in the courts .  She further noted that 
while violations were considered by the courts, vi olations concerning the rights to other objects of 
industrial property than those considered in the Administrative Code were considered within the 
framework of the civil legislation.  
270. Asked to provide more information concerning the procedures followed by the administrative 
commissions in reviewing allegations of violation and what were the remedies that the commissions 
could impose, she replied that in accordance with the national legislation no administrative 
commissions on violation of intellectual property ri ghts could be established in Kazakhstan.  Under 
the legislation all disputes concerning intellectua l property rights could be settled only in courts. 
- Special border measures 
271. The representative of Kazakhstan said that Articles 410 – 420 of the Customs Code 
established a mechanism of customs control preventing import or export of goods containing objects 
of intellectual property rights and provided adoption of  a number of legislative acts targeted at control 
of enforcement. 
272. Asked whether the Customs Code provided for any measures for the customs bodies to 
suspend the export of counterfeit goods from Kaza khstan or the transit of counterfeit goods in 
Kazakhstan, she noted that Article 416 of the Cu stoms Code provided the customs bodies with the 
authority to suspend release of the goods containing intellectual property.  The release of goods had to 
be suspended, if in the process of customs clear ing of the goods containing intellectual property 
registered in the Customs Registry, customs bodies discovered any signs that the goods were 
counterfeit. 
273. She further noted that when such goods were discovered the customs body informed the right 
holder about the goods under inv estigation and provided him or hi s representative opportunity to 
inspect the goods in customs supervision (Article 418 of the Customs Code).  Moreover, the customs 
body had to provide the name and address of the declarer (Article 416 of the Customs Code).  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 79 
 
 
 - Criminal procedures 
274. The representative of Kazakhstan said that the Criminal Code provide d for legal protection 
against infringement of intellectual property rights an d entailed provisions on criminal responsibility.   
275. She noted that illegal use of copyright and relate d rights, invention, industrial design or utility 
model, disclosure without consent of an author or an applicant of a scientific discovery, invention, 
industrial design or model prior to its official publication, as well as usurpation of the authorship or coercion into joint authorship could result in a fine  or imprisonment if the action was performed with 
the view to receive profits and resulted in severe damages.  The court could impose:   
- fines equal to 100-500 monthly calculation indices (M CI), or equal to the amount of wages or 
other income received by the convicted part y for a period of one to five months; and 
- public works for 180 to 240 hours; or a prison term of up to two years.   
Repeated actions and actions committed by a group of persons upon preliminary agreement or by an 
organised group could result in the following:  
- fines equal to 500-800 MCI, or the amount of wages or other income received by the 
convicted party for a period of five to nine months;  
- detention for four to six months; or  
- a prison term of up to five years, with or w ithout confiscation of the property of the convicted 
party (Article 184 of the Criminal Code). 
276. She further noted that illegal use of a trademark, service mark, firm name, appellation of 
origin or other designations of goods (services) for the related goods or services could result in a fine 
or imprisonment if the action was performed rep eatedly and resulted in severe damages. The court 
could impose:   
- fines equal to 200-500 MCI, or to the amount of wages or other income received by the 
convicted party for a period of two to five months;  
- public works for 180 to 240 hours;  
- detention for up to six months; or  
- a prison term of up to two years.   
277. For illegal use of a trademark or appellations of origin not registered in Kazakhstan, if the 
action was performed repeatedly and resulted in severe damages, the court could impose:  WT/ACC/SPEC/KAZ/8/Rev.1 
Page 80  
 
 - fines equal to 100-200 MCI, or to the amount of wages or other income received by the 
convicted party for up to two months;  
- public works for 120 to 180 hours;  
- detention for up to three months; or  
- a prison term of up to one year (Article 199 of the Criminal Code). 
278. Some members of the Working Party noted that  there was a criminal penalty for pirated 
copyright and related rights (Article 184 of the Crimin al Code), but remarked that there did not appear 
to be a criminal penalty for counterfeit trademarked goods.  They further stated that the administrative 
fine provided by the Administrative Code appeared in sufficient to serve as an effective deterrent.  She 
responded that criminal penalties to prevent trade in counterfeit trademarked goods were provided in 
Article 199 of the new Criminal Code (Special Part).   
279. The representative of Kazakhstan stated that pr eparations to make amendments and addenda 
to the existing administrative and criminal legisl ation were in place to reinforce the penalties for 
violations of intellectual property rights.  
POLICIES AFFECTING TRADE IN SERVICES 
280. The representative of Kazakhstan stated that the services sector was one of the most dynamic 
sectors of the economy, and its role was expected to  grow in the future.  Starting from 1990, the share 
of services in the GDP kept growing to reach the highest level of 60 per cent in 1998, while the average level for the last decade constituted 50 per cent.  In 2001 and 2002, the balance of foreign 
trade in services was negative for Kazakhstan, with  exports amounting to US$ 1,588 million, and 
imports amounting to US$ 3,667 million in 2002.  In the sphere of trade in services, enterprises with 
foreign direct investments (FDI) accounted for more than 90 per cent of the turnover in construction and business services.  Among services provided by foreign suppliers were geological prospecting 
and product certification, legal and other consulting services, electronic data processing, engineering 
and technical services.  
281. Some members of the Working Party required information about the legislative base 
regulating commercial services and asked whether the government was taking measures to ensure 
non-discrimination of foreign service suppliers.  The representative of Kazakhstan, noting the 
growing role of services in the national economy, emphasized that the existi ng legislative framework 
was not adequately developed for the services sector  and that the government was, therefore, actively 
developing national legislation governing the services sector, which would help to proceed with 
further liberalization.  Moreover, she noted that re levant provisions, which would ensure the right of  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 81 
 
 
 foreign legal and natural persons  to participate in enterprise activity on equal conditions with 
domestic suppliers of services, were being included in domestic legislation. 
282. She further noted that because the statistical ba se of service sectors was also at the initial 
stage of development, the Government intended to apply provisional measures of state regulation of 
trade in services in order to ensure developmen t of competition, based on well-balanced levels of 
development of the market of services and labour so as to prevent adverse economic and social effects 
in the national economy.  The provisional measures would be carried out in according with the 
provisions of Articles III, VI, X, XII, XIV and XIV bis of GATS and would be limited to those 
controls and restrictions necessary to achieve thei r objectives.  Licensing and authorization procedures 
would be undertaken in the most efficient manner on the basis of transparent criteria for qualification 
requirements, technical standards, and licensing requirements and will be not constitute unnecessary 
barriers to trade in services. 
283. Asked about "natural monopolies" in the telecommunications sector, she replied that the 
telecommunications Sector Development Program for the period 2003-2005, adopted by Government 
Resolution No.168 of 18 February 2003, outlined a plan for a stage-by-stage liberalization of the 
telecommunications market, including elimination of the exclusive rights of KazakhTeleCom for 
provision of international and long-distance comm unication services.  These measures were expected 
to facilitate competition, improve the quality and capacity of telecommunication services, and remove 
barriers for new entrants.  In addition, the draf t Law "On Changes and Amendments to Legislative 
Acts of the Republic of Kazakhstan on Communicati ons" introduced an amendment to Article 4 of 
Law No. 272-II "On Natural Monopolies".  The draft law stipulated that instead of pertaining to 
"telecommunication services through local networks", the activities of natural monopolies covered:  (i) telecommunication services, when there was no other competing operato r due to reasons of 
economic inexpediency or technical infeasibility; and (ii) leasing and provision of access to cable 
channels and technological facilities for connecti ng telecommunications networks with the public 
telecommunications network.  A draft law "O n Communications was signed on 5 July 2004. 
284. Some members of the Working Party noted that  it was clear that there was no "natural" 
monopoly in the telecommunications services sector, a dding that the limited nature of Kazakhstan's 
offer in the negotiation of its services commitments  supported the contention that a state monopoly 
was being granted and preserved.  In response, th e representative of Kazakhstan stated that only local 
telephone services and lease of communication cha nnels were currently considered as natural 
monopolies, mainly because there was no sufficient co mpetition in the delivery of such services.  
There were, however, no regulatory barriers to enter this sector.  Kazakhstan's commitments in the WT/ACC/SPEC/KAZ/8/Rev.1 
Page 82  
 
 basic telecommunications sector and value-added ne tworks were provided in its revised offer on 
services. 
285. With respect to the Law of Kazakhstan "On Cu lture" (hereafter – the Law) the representative 
of Kazakhstan stated that this Law defined national policies in the sphere of culture, regulated public 
relations arising from creation, revival, preservatio n, development, use, and dissemination of the 
national culture. The Law stipulated a special trea tment for sites of nationa l cultural heritage, under 
which all forms of negotiations with sites recorded  in the State Register including their demolition, 
relocation, alteration, reproduction, and restoratio n shall be prohibited unless authorized by the 
responsible body.  All forms of exploitation of s ites of the national cultural heritage for purposes 
inconsistent with their historical, artistic, and relig ious value was also prohibited.  Sites of special 
cultural value owned by religious  organizations could be used for religious purposes.  Cultural 
institutions had priority in exercising their rights to use architectural monu ments.  Owners and users 
of sites of the national cultural heritage were re sponsible for their maintenance and preservation.  
Rights of owners of sites of the national cultural heritage were exercised under control and following 
procedures, determined by the legislation, while th e State had a priority right to buy sites of the 
national cultural heritage of Kazakhstan in cases where they should be offered for sale. 
Transparency 
- Publication of information on trade 
286. The representative of Kazakhstan said that Article  3 of the Constitution stipulated that all 
laws and all international treaties to which Kazakhs tan was a party had to be published.  Moreover, 
Law No. 213-1 "On Normative Legislative Acts" of  24 March 1998 established that legislative acts 
affecting the rights, freedoms and obligations of citizens (except for the act s containing the state 
secrets and other secrets protected by the law) had to  be published in the Journa l of the Parliament and 
the newspapers designated for official publications, such as "Yegemen Kazakhstan," 
"Kazakhstanskaya Pravda," "Zan," and "Yuridicheskaya Gazeta".   
287. She noted that Decrees of the President of th e Republic and Resolutions of the Government 
were published in the Collection of Acts of the Pr esident and the Government and when their wide 
and immediate publication was necessary news papers, such as "Yegemen Kazakhstan," 
"Kazakhstanskaya Pravda," "Zan," and "Yuridicheskaya Gazeta".   
288. She further noted that legislative acts of th e central executive state bodies were published in 
the Bulletin of Normative Legal Acts of the Centra l Executive State Bodies, which was issued by the  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 83 
 
 
 Ministry of Justice.  Provided that central state bodies had their own official publications, their 
legislative acts were officially published in those publications. 
289. Asked about obligatory publication of legal acts of Maslikhats, normative legal resolutions of 
Akimats and resolutions of Akims, the representative of Kazakhstan replied that, according to Article 34 of the Law "On Normative Legislative Acts," Resolutions of Maslikhats and Akims 
affecting the rights, freedoms and obligations of c itizens had to be published in newspapers and other 
periodicals determined by Maslikhats and Akims for official publications.  
290. [The representative of Kazakhstan confirme d that Kazakhstan would undertake after 
accession to the WTO to provide the obligatory and pr ompt publication of laws, rules, judgments and 
administrative orders of general nature concerni ng the questions of trade and the agreements on 
international trade policy, pursuant to Article X of GATT 1994.  She also confirmed that Kazakhstan 
would undertake to observe policy transparency require ments in the area of trade in services, pursuant 
to Article II of GATS.] 
- Notifications 
291. [The representative of Kazakhstan confirme d that Kazakhstan would undertake after the 
accession to the WTO to submit initial notifications in accordance with the WTO Agreements which 
provided for the obligation of WTO members to s ubmit such notifications.  Rules which could be 
subsequently enacted by Kazakhstan and which w ould affect the laws enacted with a view to 
implement the provisions of WTO Agreemen ts would correspond to said Agreements]. 
- Trade Agreements 
292. The representative of Kazakhstan noted that unde r the bilateral free trade agreements which 
Kazakhstan concluded with other CIS countries (e xcluding Turkmenistan) goods originating from 
these countries and imported from them to Kazakhstan were exempt from customs duties, except for a 
number of goods included in the Schedule of Exemp tions.  The list of goods originating from CIS 
countries covered all nomenclature goods, excluding ethyl alcohol (groups 2207 10 000, 2207 20 000, 
2208 90 910), vodka (2208 60), cigars, cigarettes (2 402), white sugar (1701 99 100).  The Schedule 
was covered by the protocols on exemptions from fre e trade under bilateral agreements on free trade. 
293. She added that Kazakhstan was party to a number  of agreements with Belarus, Kyrgyzstan, 
Russia and Tajikistan.  To enhance efforts to build a Customs Union and a Common Economic Space 
(CES), the heads of the Customs Union member stat es signed the Agreement on Establishment of the 
Eurasian Economic Community (EAEC) on 10 October 2000, which came into force on WT/ACC/SPEC/KAZ/8/Rev.1 
Page 84  
 
 30 May 2001.  The stage-by-stage transition to th e EAEC common customs tariffs was expected to 
last five years, with a possible extension.  
294. The main objectives of the CES were to de velop a common agriculture, transport and 
competition policies, as well as to create a common system for regulation of activities of natural 
monopolies.  Pursuant to Article 2 of the Agre ement on the Formation of the CES, signed on 
19 September 2003, the first stage of the CES fo cused on the "formation of a free economic zone 
without withdrawals and restrictions, based on mu tual non-application of anti-dumping, compensation 
and special protection measures, pursuit of common po licy of tariff and non-tariff regulation, common 
competition rules, use of subsidies and other forms of state support".  The representative of Kazakhstan noted that the formation of the CES w as a stage-by-stage process which was expected to 
take into consideration the different levels of so cio- economic reforms taking place in these countries.  
Therefore, during the first stage, the CES memb er-states were developi ng common trade remedy 
policies and regulations in line with relevant agreements of the WTO, which should eventually lead to 
the non-application of anti-dumping, countervailing a nd import protection measures in trade relations 
between Ukraine, Russia, Kazakhstan and Belarus. 
CONCLUSIONS 
[to be completed]  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 85 
 
 
 ANNEX I 
Laws, Regulations and Other Information Pr ovided to the Working Party of Kazakhstan  
Economic Policies 
- Law "Concerning Currency Regulation" of  14 April 1993; 
- Law "Concerning Currency Regulations" of 24 December 1996; 
- Law No. 237  "On Payments and Mone y Transfers" of 29 June 1998; 
- Edict No. 2155 "Concerning the National Bank" of 30 March 1995; 
- Edict No. 2196 "On the National Bank of Kazakhstan" of 2 August 1995; 
- Edict No. 2227 "Concerning Securities and Stock Exchange" of 21 April 1995; 
- Regulations of the Board of the National Bank "Concerning the Settlements with Cheques" of 
15 November 1994 (Meeting minutes No.22); 
- Instruction No. 127 "On Settlement, Current and Budget Accounts Opened in the Bank 
Institutions of the Republic of Kazakhstan" of 23 June 1993 approved by the Board of the 
National Bank on 23 June 1993 (Protocol No 16); 
- Instructions of the Board of the Nationa l Bank No. 188 "Rules for conducting currency 
transactions in the Republic of K azakhstan" of 24 November 1994; 
- Temporary regulation on clearing (submitted in September 1996); 
- Law No. 266-XIII "Concerning Foreign Investments" of 27 December 1994; 
- Law No. 373 "On Investments" of 8 January 2003; 
- Edict No. 2717 "Concerning Land" of 22 December 1995;  
- Resolution No.1587 "On the Schedule of Non-Privatisable State Property" of 
24 October 2000 (amended as of 18 December 2003); 
- Law "Concerning development of competition and restriction of monopoly activities" of 
11 July 1991; 
- Law No. 272-I "On Natural Monopolies" of 9 July 1998; 
- Law No. 232-1 "On Unfair Comp etition" of 9 June 1998; 
- Resolution No. 1171 "On price regulation fo r products of business entities, recognized as 
natural monopolists" of 19 October 1994; 
- Edict No. 2255 "Concerning Busin ess Partnerships" of 2 May 1995; 
- Law "Concerning the protection of the natural environment" of 18 June 1991; 
- Resolution No. 637 "On approval of the provisions on the State ecological expertise in 
Kazakhstan" of 25 October 1991; 
- Draft Law "On Joint-Stock Companies" of 4 June 1997; and WT/ACC/SPEC/KAZ/8/Rev.1 
Page 86  
 
 - Draft Law "On Limited Liability Partnerships" of 25 March 1997. 
Subsurface use 
- Edict No. 2350 "Concerning Petroleum" of 28 June 1995; 
- Edict "Concerning the sub-surface and its utilization" of 27 January 1996; and 
- Regulations "Concerning the procedure for the realization (transfer, exchange, sale) of 
information about the sub-surface of Kazakhstan", approved by Resolution No. 1034 of 
8 December 1992. 
Framework for Making and Enforcing Policies 
- Constitution of the Republic of K azakhstan of 5 September 1995; and 
- Code "Concerning Administrative Violati ons" of 22 March 1984 (as amended on 
1 April 1995). 
Taxation 
- Tax Code of 12 June 2001; 
- Tax Code Articles 3 and 4 (s ubmitted in February 1997); 
- Tax Code Section VI. Taxa tion of Subsurface Users (submitted in February 1997); 
- Edict No. 2703 "Concerning the introduction of amendments to certain legislative acts and 
edicts" of 21 December 1995; 
- Edict No. 2827 "Concerning the introduction of amendments to Edict "Concerning Taxes and 
Other Compulsory Payments to the Budget"" of 26 January 1996; 
- "Concerning the introduction of addition to Edict "Concerning Taxes and Other Obligatory 
Payments to the Budget""; 
- Order of the Customs Committee No. 131 "Concerni ng the procedure for application of value 
added tax and excise duties to goods which ar e imported into the customs territory of 
Kazakhstan" of 29 September 1995; 
- Decree No. 1439 "Concerning the rates of excise duties on certain types of excisable goods 
imported to the territory of K azakhstan" of 2 November 1995; 
- Resolution No. 960 "Concerning the rates of excise duties on imported excisable goods and 
the quotas of transfer by physical persons through the customs boundary of Kazakhstan of 
excisable goods which are not subject to excise duties" of 13 July 1995; 
- Decree No. 1397 "Concerning the introduction of amendments and additions to Resolution 
No. 960 of 13 July 1995" of 30 October 1995 ;  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 87 
 
 
 - Resolution No. 974 "Concerning the rates of excise duties on excisable goods manufactured 
in Kazakhstan and the gambling business" of 14 July 1995; 
- Decree No. 1487 "Concerning the introduction of amendments and additions to Resolution 
No. 974 of 14 July 1995" of 8 November 1995; 
- Resolution No. 341 "On introduction of changes and amendments to some decisions of the 
Government" of 25 March 1996; and 
- Resolution No. 608 (Appendix 1) "Excise Taxes for the Excisable Goods Imported to the 
Customs Territory of the Republic of Kazakhstan" of 26 June 1998. 
Customs Regulations 
- Customs Code (Law No. 2368) as amended by 1 January 2001; 
- Customs Code of 5 April 2003; 
- Customs Code Chapter 12 (s ubmitted in February 1997); 
- Customs Code Articles 115, 116, 1 22-133 (submitted in February 1997); 
- Customs Code Chapter 7: Determination of Country of Origin of Goods (submitted in 
July 2004); 
- Customs Code Chapter 39: Determination of  the Customs Value of Goods (submitted in 
July 2004); 
- Decree No. 2369 "Concerning the Implementation of Edict Concerning the Customs Business 
in the Republic of Kazakhstan" of 20 July 1995; 
- Edict No. 2370 "Concerning the Introduction of Amendments to certain legislative acts and 
edicts concerning customs issues" of 20 July 1995; 
- Resolution No. 1009 "Concerning the approval of the list of countries which are users of the 
preference schedule of Kazakhstan" of 20 July 1995; 
- Resolution No. 1125 "Concerning the rates of customs duties on imported goods" of 
15 August 1995; 
- Resolution No. 1479 "On rates of customs payments" of 7 November 1995; 
- Decree No. 810 "Concerning the introduction of amendment to Decree No. 299 of 
12 March 1996" of 28 June 1996; 
- Resolution No. 891 Annex on "Rates of Custom s Duties on Imported Goods" of 29 June 2001 
- Resolution No. 669 "On Adoption of the Customs Charges, Fees and Payments Levied by the 
Customs Bodies" of 8 July 2003; 
- Commodity Nomenclature and Customs Import Tariffs; and 
- Draft Customs Code. WT/ACC/SPEC/KAZ/8/Rev.1 
Page 88  
 
 Import/Export regulations 
- Law "On export control of armaments, m ilitary technology and production of double 
application" of 18 June 1996; 
- Resolution No.298 "On the procedure for expor t and import of public goods (works, services) 
in Kazakhstan" of 12 March 1996; 
- Resolution No. 342 "List of goods allowed and not  allowed to the regime of temporary import 
and export" of 25 March 1996; 
- Resolution No. 1035 "Concerning the approval of the list of exchange commodities" of 
28 July 1995; 
- Resolution No. 304 "On introduction of amendments  and additions to Resolution No. 1035 of 
28 July 1995" of 13 March 1996; 
- Resolution No. 984 "On Prohibition of export and import barter operations" of 17 July 1995; 
- Resolution No. 1200 "On introduction of chang es to Resolution No. 984 "On Prohibition of 
Export and Import Barter Operations"" of 29 August 1995; 
- Edict No. 2200 "Concerning Licensing" of 17 April 1995; 
- Decree No. 1894 "Concerning the implementation of Decree of the President No. 2201 of 
17 April 1995" of 29 December 1995; 
- Edict No. 2720 "Concerning the introduction of amendments to certain edicts" of 
23 December 1995; 
- Decree of the President No. 2198 "On State regi stration of legal persons" of 17 April 1995; 
- List of Goods Subject to Non-Tariff Measures (submitted in August 2004); and 
- Order No. 24-OD of the Chairman of the Agen cy On Regulation of Natural Monopolies, 
Protection of Competition and Support of Small Businesses "On Adoption of the Rules for Introduction and Discontinuation of Decreasing Coefficients for Tariffs on Regulated Rail 
Freight" of 12 December 1999. 
Trade remedies 
- Law "On Antidumping" (submitted in November 1999); 
- Law No. 4414 "On Subsidies and Counter vailing Measures" of 16 July 1999; 
- Law No. 337-1 "On Safeguard Measures to Protect the Domestic Market" of 
28 December 1998; 
- Draft Law on Antidumping; 
- Draft Law on Subsidies and Countervailing Measures; and 
- Draft Law on Safeguard Measures.  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 89 
 
 
 Industrial Policy 
- Law No. 156-XIII "Concerning transport" of 21 September 1994. 
Standards, certification, technical regulations 
- Law No. 433-1 "On Standardisation" of 16 July 1999; 
- Law No. 434-1 "On Certification" of 16 July 1999; 
- Law "Concerning the protection of consumer rights" of 5 June 1991; 
- Law "On standardization and certification" of 18 January 1993; 
- Decree No. 225 "Concerning the Committee for stan dardization, metrology and certification" 
of 21 February 1996; 
- Order "Of customs control over production of compulsory certification" of January 1994; 
- Resolution No. 411 "On stage-by-stage introducti on of compulsory certification of products 
(works, services) in Kazakhstan" of 20 May 1993; 
- Government Regulation No. 1112 "O n Approval of List of Goods (Works, Services) Subject 
to Mandatory Certification for Conformity to Obligatory Requirements of Standards or Other 
Documents for Guarantee of Safety of Life and Health of Citizens, Property of Citizens, and 
Environment" of 15 July 1997 (Excerpt); 
- List of organs for certification of simila r products and accredited testing laboratories 
(centres), registered at the State Register of th e State Certification System of the Republic of 
Kazakhstan, 1 January 1998; 
- The List of Products (Works, Services) that are Subject to Mandatory Certification as to the 
Conformity with Requirements of Standards or other Codes that ensure the Safety for Life, 
Health of People, Property of Citizens, and Environment; 
- Draft Law on Certification; and 
- Draft Law on Standardisation. 
SPS measures 
- Law No. 334 "On Plant Quarantine" of 11 February 1999; 
- Law No. 422 -1 "On Legal Protection of Selec tive Breeding Achievements" of 13 July 1999; 
- Law No. 339-II "On Veterinary" of 10 July 2002; 
- Resolution No. 1891 "On approval of the order of  destruction or further reprocessing products 
in the case of their recognition as not suitable for sale and consumption" of 
29 December 1995; and 
- Draft Law on the Legal Protection of Selective Breeding Achievements. WT/ACC/SPEC/KAZ/8/Rev.1 
Page 90  
 
 Special economic zones 
- Law No.2823 "On special economic zones" of 26 January 1996; and 
- Edict No. 2824 "Concerning the introduction of am endments to certain laws and edicts" of 
26 January 1996. 
Government procurement - Resolution No. 586 "On State Procur ement of Goods" of 13 May 1996. 
Intellectual Property protection 
- Civil Code (Table of Contents); 
- Articles 184, 199 and 200 of the Criminal Code , concerning intellectual property (submitted 
in September 1997); 
- Law "Concerning trademarks, service marks a nd appellations of origin of goods" of 
18 January 1993; 
- Law No.456-1 "On trademarks, service marks and appellation of places of origin of goods" of 
26 July 1999; 
- Law "Concerning the copyright and allied rights" of 10 June 1996; 
- Patent Law No. 1422-XII of 24 June 1992; 
- Patent Law of 16 July 1999; 
- Law No. 217 of the Republic of Kazakhstan "On Legal Protection of Layout Design of 
Integrated Microcircuits"; 
- Resolution No. 508 "On the establishment of state agency for copyright and related rights" of 
8 July 1992; 
- Decree No. 622 "Concerning  the National Patent Department Attached to the Cabinet of 
Ministers" of 21 July 1992; 
- Decree of the President No. 806 "On Na tional Patent Office" of 23 June 1992; 
- Decree No. 949 "Concerning the approval of procedure for issuing the protection documents 
on inventions, industrial samples, trademarks  and service marks" of 11 November 1992; 
- Resolution No. 926 "On rules of public dem onstration of cine-video production" of 
5 July 1995; 
- Resolution No. 266 "On procedure of payments and amounts of duties for foreign applicants 
for legal actions connected with protection of industrial property objects within the territory 
of Kazakhstan" of 6 April 1993;  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 91 
 
 
 - Resolution No. 889 "On the procedure of payment and amounts of duties for patenting of 
inventions, industrial samples and utility mode ls, registration of trademarks and service 
marks, registration and submitting the right of using the name of the place of goods' origin" of 
20 October 1992; 
- Resolution of the Cabinet of Ministers No . 896 "On Approval of the Regulation on  
Employee’s Inventions, Utility Models and I ndustrial Designs Created in the Republic of 
Kazakhstan" of 11 August 1994; 
- Regulation on the National Patent Office under th e Cabinet of Ministers (with amendments in 
accordance with Resolution No. 1369 of the Cabinet of Ministers of 5 December 1994) 
approved by Resolution No. 877 of the Ca binet of Ministers of 16 October 1992; 
- "Rules for Filing and Submission of Application for Registration of a Trademark" No. 226 of 
30 April 1997; 
- Declaration of the Republic of Kazakhstan on th e International Treaties in the Field of the 
Protection of Industrial Property of 5 February 1993; 
- Draft Patent Law (submitted April 1999); and 
- Draft Law  "On amendments and additions to cer tain legal acts of the Republic of Kazakhstan 
concerning intellectual property issues". 
Services regulations 
- Law "Concerning auditing" of 18 October 1993; 
- Edict No. 2329 "Concerning Medical Insurance of Citizens" of 15 June 1995; 
- Edict No. 2330 "On Measures for Implementati on of the Edict "On Medical Insurance of 
Citizens"" of 15 June 1995; 
- Edict No. 2444 "Concerning Banks a nd Banking Activity" of 31 August 1995; 
- Decree No. 2445 "Concerning the efforts for the implementation of Edict "Concerning Banks 
and Banking Activity"" of 31 August 1995; 
- Edict No. 2475 "Concerning Insurance" of 3 October 1995; 
- Edict No. 2697 "Concerning the Utilization of Airspace and Activities of Aviation" of 
20 December 1995; 
- Decree No. 1803 "Issues of the state insuran ce monitoring" of 19 December 1995; and 
- Resolution No. 478 "On the approval of the regulation on Licensing of Insurance Activities 
on the Territory of Kazakhstan" of 19 April 1996. WT/ACC/SPEC/KAZ/8/Rev.1 
Page 92  
 
 Trade agreements 
- Decree No. 2461 of the President of the Repub lic of Kazakhstan "On Ratification of the 
Agreement "Concerning the Customs Union" be tween the Government of the Republic of 
Belorussia, the Republic of Kazakhstan and th e Russian Federation" of 15 September 1995; 
- Agreement on the Customs Union between th e Russian Federation,  the Republic of 
Belorussia and the Republic of Kazakhstan of 20 January 1995; 
- Agreement between the Government of the Re public of Kazakhstan and the Government of 
the Russian Federation on the Uniform Proce dure for Regulating Foreign Economic Activities 
of 20 January 1995; 
- Resolution of the Intergovernmental Belorussi an - Kazakh - Russian Commission "Terms of 
Formation of the Customs Union" of 22 November 1995; 
- Protocol "On Introduction of Free Trade Regi me Without Exceptions and Restrictions 
Between the Republic of Kazakhstan and the Russian Federation" of 20 January 1995; 
- Protocol between the Government of the Repub lic of Kazakhstan and the Government of the 
Kyrgyz Republic and the Government of Uzbekistan Concerning Discussion of Issues of 
Participation of the Republic of Kazakhsta n in the Customs Union between Belorussia, 
Kazakhstan and Russia of July 1995; 
- Protocol between the Government of the Repub lic of Belorussia, the Government of the 
Republic of Kazakhstan and th e Government of the Russian Federation Concerning 
Completion of the First Stage of Enforcement of the Treaty on the Customs Union of 
22 November 1995; 
- Agreement on Free Trade between the Govern ment of the Kyrgyz Republic and the 
government of the Republic of K azakhstan of 22 June 1995; and 
- Agreement between the Government of the Re public of Kazakhstan and the Government of 
the Republic of Moldova on Free Trade of 26 May 1995. 
Miscellaneous 
- Kazakhstan Economic Trends - First Quarter 1996; 
- Kazakhstan Economic Trends  - February 1996; and 
- Kazakhstan Economic Tren ds - Monthly update. 
  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 93 
 
 
 ANNEX II 
List of National Companies and Joint Stock Companies with State Shares  
No. Business Name State share 
(%) Line of Activity, Notes 
1 2 3 4 
Oil and Gas 
1 JSC National Company "KazMunaiGaz"  (Astana) 100 oil and gas  
2 JSC Main Dispatching Unit for Oil and Gas Industry 
(Astana) 100 oil and gas 
3 OJSC Pavlodar Petrochemical Plant (Pavlodar) 49 oil refinery, etc. 
4 OJSC Kondensat (Aksai) 25   
Mining 
5 OJSC Joint Venture 'Vasilkovskoe Zoloto' (Akmola 
Oblast) 40 mining 
6 OJSC Sokolovsk-Sarbai Conglomerate Mill (Rudny, 
Kostanai Oblast) 39.5 mining 
7 OJSC Akbaka Concentration Plant (Zhambyl Oblast) 33.3 mining, etc. 
8 JSC Transnational Company 'Kazchromium' 
(Almaty) 31.37 metallurgical industry          
9 JSC KazZinc (Ust-Kamenogorsk) 27.64 metallurgical industry          
10 OJSC Maikainzoloto (Pavlodar Oblast) 25 mining, etc. 
Manufacturing 
11 OJSC National Company "Kazakhstan Engineering" 
 (Astana) 100 mechanical  engineering 
12 OJSC Kazchermetautomatica (Karagan dy)   90 mechanical engineering 
13 OJSC Temirbeton (Almaty) 55.71 construction materials 
14 OJSC Yrysty-AEVRZ (Almaty)  50 rail car maintenance 
15 OJSC Kazakhstantractor (Pavlodar) 33.92 mechanical engineering 
16 OJSC Joint Venture 'Belkampit' (Almaty) 22.84 mechanical engineering 
Energy 
17 OJSC Kazakhstan Electricity Grid Operating 
Company (KEGOC) (Almaty) 100 transportation of electric 
energy, National Company 
18  CJSC National Nuclear Power Company 
"Kazatomprom"  (Almaty) 100 nuclear energy, National 
Company 
19 OJSC Shardara Water Power Plant  (South 
Kazakhstan) 100 electric energy 
20 CJSC Kazakhenergoexpertise (Almaty) 100 power equipment testing  
21 CJSC Operator of the Market of Electric Energy and 
Generated Output of the Republic of Kazakhstan (Almaty) 100 electric energy market 
tendering 
22 CJSC Ekibastuz Power Center (Ekibastuz) 100 electric energy 
23 OJSC Taldykorgan Joint-Stock Company for 
Transportation by Electric Networks (TATEC) 
(Almaty Oblast) 100 transportation of electric 
energy, etc. 
24 OJSC Kyzylorda Distributing Power Company 
(Kyzylorda) 100 transportation of electric 
energy, etc. 
25  OJSC West Kazakhstan Distributing Power 
Company 'Uralskenergo' (Uralsk) 100 transportation of electric 
energy, etc. 
26  OJSC Mangystau Distributing Power Company 
(Aqtau) 93.8 transportation of electric 
energy, etc. 
27 OJSC Zhezkazgan Distributing Power Company 
(Zhezkazgan) 90 transportation of electric 
energy WT/ACC/SPEC/KAZ/8/Rev.1 
Page 94  
 
 No. Business Name State share 
(%) Line of Activity, Notes 
1 2 3 4 
28 OJSC Bukhtarma Water Power Plant (East 
Kazakhstan)  90 electric energy 
29 OJSC Chokin Institute of Power Research of the 
Republic of Kazakhstan (Almaty) 49.34 power research  
30 OJSC Eurasian Power Corporation (Aksu, Pavlodar 
Oblast) 24.33 electric energy 
31 OJSC Astanaenergoservice (Ast ana) 15.34 energy services 
Transport and Communications 
32 JSC National Company 'Kazakhstan Temir Zholy' 
(Astana) 100 rail transportation 
33 CJSC Air Astana (Astana) 51 air transportation 
34 OJSC Atyrau Aue Zholy (Atyrau) 29.7 air transportation 
35 OJSC Aircompany 'Zhezkazgan Air' (Z hezkazgan) 90 air tran sportation, etc. 
36 JSC International Airport 'Aqtobe' (Aqtobe) 100 airport services  
37 CJSC International Airport 'Astana' (Astana) 100 national company 
38 CJSC National Shipping Company 
"Kazmortransflot" (Astana) 50 maritime traffic 
39 OJSC Kazakhtelecom (Astana) 50 communications, national 
company 
40 OJSC Kazmail (Almaty) 100 communications, national 
company 
41 JSC Republican Center of Space Communications 
and Electromagnetic Compatibility of 
Radioelectronic Facilities (Astana) 100 space technologies and 
communications  
42 CJSC Catelco (Almaty) 37 satellite communications 
43 CJSC National Information Technologies (Astana) 100 development and 
implementation of computer 
technologies 
Agriculture 
44 JSC Food Contract Corporation (Astana) 100 procurement and storage of 
national grain reserves, National Company 
45 CJSC Kazagrex (Almaty) 100 grain quality testing 
46 CJSC Corporation of Animal Products (Astana) 100 processing of agricultural 
products  
47 OJSC Asyl Tulik (Aqmola Oblast) 76.77 breeding 
48 OJSC Breeding Station "Astana-Kus"  (Aqmola 
Oblast) 70 poultry breeding 
49 OAO Sultan (Petropavl) 58.66 grain storage, etc. 
Education and Science 
50 CJSC Karagandy Institute of Metallurgy (T emirtau) 97 scientific research in mining 
51 OJSC Road Research Institute of the Republic of 
Kazakhstan (Almaty) 90.01 highway design  
52 JSC S.Seifullin Agrarian University of the Republic 
of Kazakhstan (Astana) 80 education 
53 CJSC Zhezkazgan Baikonurov University 
(Zhezkazgan) 80 education 
54 CJSC Institute of Comp lex Subsurface Development 
(Karagandy) 80   
55 OJSC Academy of Civil Aviation (Almaty) 80 education 
56 CJSC F.F.Mukhamedgaliev Institute of Experimental 
Biology (Almaty) 54 biological research  WT/ACC/SPEC/KAZ/8/Rev.1 
 Page 95 
 
 
 No. Business Name State share 
(%) Line of Activity, Notes 
1 2 3 4 
57 OJSC T.Ryskulov University of Economics of the 
Republic of Kazakhstan (Almaty) 35 education 
58 JSC Academy of Sports and Tourism of the Republic 
of Kazakhstan (Almaty) 35 education 
59 ТОО  Institute of Organic Synthesis and Coal 
Chemistry (Karagandy) 35 scientific research in organic 
chemistry 
60 JSC Head Academy of Architecture and 
Construction of the Republic of Kazakhstan (Almaty)  35 education 
61 OJSC M.Tynyshpaev Kaza kh Academy of Transport 
and Communications (Almaty) 35 education 
62 OJSC Abylai-khan University of Foreign Affairs and 
World Languages (Almaty) 35 education 
63 OJSC Humanitarian University of Law of the 
Republic of Kazakhstan (Astana) 35 education 
64 JSC Almaty Institute of Energy and Communications 
(Almaty) 33.6 education 
65 OJSC Almaty Technological University (Almaty) 20.01 education 
Finance 
66 CJSC Fund for the Development of Small 
Businesses (Almaty) 100 lending to small businesses  
67 CJSC Kazakh Center for the Promotion of 
Investments (Almaty) 100 assessment of investment 
projects  
68 JSC National Fund of Innovations (Almaty) 100 investments 
69 JSC  Investment Company: Investment Fund of 
Kazakhstan (Almaty) 100 investments 
70 JSC National Insurance Corporation for the 
Insurance of Export Loans and Investments (Almaty) 100 investments 
71 JSC Kazagromarketing (Astana) 100 agricultural marketing  
72 JSC Agrarian Credit Corporation (A stana)  100 agricultural lending 
73 CJSC Fund for the Financial Support to Agriculture 
(Astana) 100 agricultural lending 
74 JSC KazAgroFinance (Astana) 100 agricultural lending 
75 CJSC Rehabilitation Fund (Astana) 100 repayment of relief loans 
76 CJSC Debt Management Center  100 financial debt management 
77 JSC  Housing Savings Banks of Kazakhstan 
(Almaty) 100 banking 
78 CJSC Capital Development Corporation (Astana) 100 attraction of investments  
79 CJSC National Accumulation Insurance Fund 
(GNPF) (Astana) 100 pension fund, etc. 
80 JSC Grain Liabilities Guaranty Fund (Ast ana) 90 guarantee of liabilities of grain 
receiving companies 
81 JSC Development Bank of Kazakhstan (Astana) 80 banking 
Mass Media 
82 OJSC Kazakh Gazetteri (Almaty) 100 mass media 
83 JSC Republican Newspaper "Egemen Kazakhstan" 
(Astana)     100 mass media 
84 JSC Republican Newspaper "Kazakhstanskaya 
Pravda" (Astana)  100 mass media 
85 OJSC Zhas Orken (Almaty) 100 mass media 
86 JSC Republican Television and Radio Corporation 
'Kazakhstan' (Almaty) 100 radio- and tele-broadcasting WT/ACC/SPEC/KAZ/8/Rev.1 
Page 96  
 
 No. Business Name State share 
(%) Line of Activity, Notes 
1 2 3 4 
87 CJSC Television and Radio Complex of the 
President of the Republic of Kazakhstan (Astana)  100 radio- and tele-broadcasting 
88 OJSC Kazteleradio (Almaty) 78 transmission of tele- and radio 
signals, etc. 
89 JSC Khabar Agency (Almaty) 50+1 
share radio- and tele-broadcasting 
90 OJSC National Company 'Kazakh Information 
Agency' (Astana) 100 National Company 
Publishing 
91 OJSC Semei Polygraphy  34 polygraphy 
92 OJSC Kazbaspasoz (Almaty) 100 polygraphy 
93 CJSC Publishing House of Magazine 'Health Service 
in Kazakhstan' (Almaty) 100 publishing 
94 CJSC Kazakh Encyclopedia (Almaty) 100 publishing 
95 CJSC Mektep Press 80 publishing 
96 OJSC Alatau Press (Almaty) 34 polygraphy 
97 OJSC Karagandy Polygraphy (Karagandy) 49 polygraphy 
Miscellaneous 
98 OJSC National Assessment and Certification Center 
(Astana) 100 assessment, certification 
99 OJSC National Accreditation Center (Ast ana)   100 pre-accreditation document 
preparation 
100 CJSC Republican Information and Show Center for 
Small Businesses (Astana)    100 information services for small 
businesses 
101 OJSC Kazakhvzryvprom (Almaty) 100 blasting operations 
102 JSC Center of Engineering and Transfer of 
Technologies (Astana) 100   
103 OJSC National Center 'Kurylysconsulting' (Astana) 100 real estate assessment 
104 CJSC Institute of Legislature of the Republic of 
Kazakhstan (Astana)    100 legal services 
105 OJSC Zan (Almaty) 67 legal services 
106 CJSC Logistics Office of the Ministry of Education 
(Astana) 100 support of the public body 
107 CJSC Diplomatic Corps Managment Department 
(Almaty) 100 support of diplomatic corps 
108 JSC Marketing Research Center (Almaty) 100 consultation services 
109 OJSC Medical Transport Service (Almaty) 34 medical services, sanitation 
110 CJSC Front Office for Construction Site Surveillance 
of the Administration of the President (Astana) 100 construction site surveillance 
111 CJSC Alatau Hotel (A stana) 54 hotel services 
112 OJSC Health Resort 'Almaty' (Almaty) 100 medical services, sanitation 
113 CJSC Industrial Park (Almaty) 100 innovation projects 
114 CJSC Republican Center of Folk Medicine (Almaty) 100 medical services 
115 OJSC Industrial Part of the Association "Progress" 
(Stepnogorsk) 100   
117 CJSC Contract Agency of the Republic of 
Kazakhstan (Astana) 100   
116 OJSC Kazpromgeofizica (Almaty) 96.54 geology 
118 Mangystau Industrial Company (Aqtau) 100    
  WT/ACC/SPEC/KAZ/8/Rev.1
 Page 97ANNEX III 
List of Services Provided by Natural Monopolies  
Number of natural monopoly 
entities providing such types 
of services included in the 
State Register No. Types of activities referred to 
the sphere of natural monopoly 
in accordance with the Law of 
the Republic of Kazakhstan 
(hereinafter RK) "On Natural 
Monopolies" Regulated types of services 
Republican 
sections Local 
sections Total Regulation mechanism The list of legal acts regulating the activities 
of natural monopoly entities and issues of 
tariff setting 
1 Transportation of oil and/or oil 
products by main pipelines 
CPC (713, 7131, 7139, 71310)  Transportation of oil and/or oil 
products by main pipelines 
 2  2 Approval of a tariff (prices, fee rates); 
Approval of tariff estimates; 
Imposition of a temporary decreasing coefficient; 
Special order of expenses 
accumulation  The Law of the RK "On Natural Monopolies" 
dated 9 July 1998; the Law of the RK "On 
competition and limitation of monopoly activities" dated 19 January 2001; the Law of 
the RK "On power industry" dated  
16 July 1999 No. 438-1  
2 Transportation of gas and/or gas 
condensate by main pipelines  CPC (713, 7131, 7139, 71310) Transportation of gas and/or gas 
condensate by main pipelines  1 5 6 Approval of a tariff (prices, fee rates); 
Approval of tariff estimates; Imposition of a temporary decreasing 
coefficient; 
Special order of expenses accumulation The Resolution of the Government of the RK 
"On approval of the Program of Natural Monopoly Entity Tariff Policy Improvement 
for the period of 2002 – 2004" dated 15 
October  2002 No. 1126   
3 Transportation of gas and/or gas 
condensate by distributing 
pipelines 
CPC (713, 7131, 7139) Transportation of gas and gas 
condensate by distributing 
pipelines  1 33 34 Approval of a tariff (prices, fee rates); 
Approval of tariff estimates; 
Imposition of a temporary decreasing 
coefficient; Special order of expenses 
accumulation The Resolution of the Government of the RK 
"On approval of the Regulation for public 
hearings conduct when considering the 
applications for approval or change of the tariffs (prices, fee rates) of natural 
monopolies" dated 21 April 2003 No. 376   
4 Operating of gas distributing 
settings and connected gas 
distributing pipelines  CPC  713 Operating of gas distributing 
settings and connected gas 
distributing pipelines  8 8  Approval of a tariff (prices, fee rates); 
Approval of tariff estimates; 
Imposition of a temporary decreasing 
coefficient; Special order of expenses 
accumulation The Resolution of the Government of the RK 
"On additional measures for the state 
regulation of natural monopoly's service charges and tariffs" dated 9 April 1999 No. 400; 
 
The Concept on Further Market Relations Development in the Power Industry of the RK 
approved by the Resolution of the 
Government of the RK of 18 February  2004 No. 190; 
 
The Republic of Kazakhstan's Telecommunication Sector Development 
Program for the years 2003 – 2005", 
approved by the Resolution of the Government of RK of 18 February 2003 
No. 168; 
  
 WT/ACC/SPEC/KAZ/8/Rev.1 
Page 98 Number of natural monopoly 
entities providing such types 
of services included in the 
State Register No. Types of activities referred to 
the sphere of natural monopoly 
in accordance with the Law of 
the Republic of Kazakhstan 
(hereinafter RK) "On Natural 
Monopolies" Regulated types of services 
Republican 
sections Local 
sections Total Regulation mechanism The list of legal acts regulating the activities 
of natural monopoly entities and issues of 
tariff setting 
The Program of Railway Transport 
Restructuring for the years 2004-2006 
approved by the Resolution of the Government of the RK of 6 February 2004 
No. 145 
5 Delivery and/or distribution of 
of electric power by regional or 
interregional electric networks  CPC 87700 Delivery of electric power; 
Distribution of electric power; 
Services on providing reliability and stability in supply of electric 
power for electric power consumers 9 
 
9 
 
1 91 
 
88 98 
 
94 
 
1 
  Approval of a tariff (prices, fee rates); 
Approval of tariff estimates; 
Imposition of a temporary decreasing coefficient; 
Special order of expenses 
accumulation The Agency Order "On Approval of the 
Regulation on Expenses Formulation Used to 
Determine the Tariffs (Prices, fee rates) for 
the Services (Goods, Works) of Natural Monopolies" of 30 July 2003 No. 185-OD  
6 Services on technical production 
control of delivery into the network and consumption of 
electric power  
CPC 87700 Services on technical production 
control of delivery into the network and consumption of electric power 1  1 
 Approval of a tariff (prices, fee rates); 
Approval of tariff estimates; Imposition of a temporary decreasing 
coefficient; 
Special order of expenses accumulation The Agency Order No. 82-OD dated  
19 March 2003 " Оn adoption of Instructions 
on the approval of tariffs (prices, fee rates) 
and tariff estimates on services (goods, 
works) of natural monopolies";  
7 Delivery and/or distribution of 
heat energy  CPC 88 Delivery and/or 
distribution of heat energy 7 
7 162 
162 167 
167 Approval of a tariff (prices, fee rates); 
Approval of tariff estimates; Imposition of a temporary decreasing 
coefficient; 
Special order of expenses accumulation The Agency Order No. 30-OD dated 
3 February 2003 " Оn adoption of Instructions 
on the approval and introduction of tariffs 
(prices, fee rates) for services (goods, works) 
of natural monopolies for a  medium term period" 
8 Production of heat energy by 
heating boiler-houses, stations 
with mixed type of production  
CPC 88  Production of heat energy by 
heating boiler-houses, stations with 
mixed type of production   4 135 139 
 Approval of a tariff (prices, fee rates); 
Approval of tariff estimates; 
Imposition of a temporary decreasing 
coefficient; Special order of expenses 
accumulation The Order of the Agency No. 49-OD dated  
24 February 2003 " Оn adoption of the 
Instruction on approval of natural monopoly's 
reorganization or liquidation at the authorized body" 
  
  WT/ACC/SPEC/KAZ/8/Rev.1
 Page 99Number of natural monopoly 
entities providing such types 
of services included in the 
State Register No. Types of activities referred to 
the sphere of natural monopoly 
in accordance with the Law of 
the Republic of Kazakhstan 
(hereinafter RK) "On Natural 
Monopolies" Regulated types of services 
Republican 
sections Local 
sections Total Regulation mechanism The list of legal acts regulating the activities 
of natural monopoly entities and issues of 
tariff setting 
9 Services of main railway 
network 
CPC 71111, 71112  
 
  
 
  
 
   
 
  
 
CPC 7112  
CPC 71124 Transportation of cargo by 
republican and international 
communications, excluding transit transportation; 
Transportation of passengers by 
railways in republican and international communications, 
excluding transportation of 
passengers by trains formed of the carriages produced by "Patents 
Talgo SA" Spanish company  
Transportation of luggage and cargo by railways; Transportation of mail by railways  1 
 
 
1 
 
  
 
  
1 
 
1  
 
  1 
 
 
1 
 
  
 
  
1 
 
1 Approval of a tariff (prices, fee rates); 
Approval of tariff estimates; 
Imposition of a temporary decreasing coefficient; 
Special order of expenses 
accumulation The Agency Order No. 121-OD dated 
4 May2003 " Оn adoption of the Instruction 
for approval by the authorized body the conduct of other types of activities technically 
related to the main activities and/or relevant 
to the natural monopoly's sphere in regard to the Kazakh legislation on mail" 
 
10 Approaching ways services   Approaching ways serv ices   2 92 90 Approval of a tariff (prices, fee rates); 
Approval of tariff estimates; 
Imposition of a temporary decreasing coefficient; 
Special order of expenses 
accumulation The Agency Order No. 16-OD dated 
27 January 2003 " Оn adoption of the 
Instruction on approval and concordance of natural monopolies' investment projects" 
 
11 Aeronavigation services 
CPC 7453  Aeronavigation servicing in 
airspace of RK; Aeronavigation servicing in the 
aerodrome area 1 
 
1  1 
 
1 Approval of a tariff (prices, fee rates); 
Approval of tariff estimates; Imposition of a temporary decreasing 
coefficient; 
Special order of expenses accumulation The Agency Order No. 125-OD dated 5 May 
2003 "Оn the Instruction on approval of 
alienation and other prope rty transactions of 
natural monopolies with the authorized body" 
  
 WT/ACC/SPEC/KAZ/8/Rev.1 
Page 100 Number of natural monopoly 
entities providing such types 
of services included in the 
State Register No. Types of activities referred to 
the sphere of natural monopoly 
in accordance with the Law of 
the Republic of Kazakhstan 
(hereinafter RK) "On Natural 
Monopolies" Regulated types of services 
Republican 
sections Local 
sections Total Regulation mechanism The list of legal acts regulating the activities 
of natural monopoly entities and issues of 
tariff setting 
12 Port services 
CPC 745 Ship services; 
Lighthouse services; 
Channel passing services; Mooring services; 
Anchor services; 
Tie-down services; Environment protection measures; 
Quarantine services; 
Shipment and dumping works. 1 
1 
 
1 
 
1 1 
1 
 
1 
 
 
1 
 
1 
2  1 
1 
 
1 
 
1 1 
1 
 
1 
 
 
1 
 
1 
2 Approval of a tariff (prices, fee rates); 
Approval of tariff estimates; 
Imposition of a temporary decreasing coefficient; 
Special order of expenses 
accumulation The Agency Order No. 57-OD dated 
26 February 2003 " Оn approval of the 
Regulation for addition and exclusion of natural monopolies from the State Register of 
natural monopoly entities" 
 
13 Airport services  
CPC 731 Services on providing take off and 
landing of an aircraft; Services on providing aviation  
safety  2 
  
2 18 
  
18 20 
  
20 Approval of a tariff (prices, fee rates); 
Approval of tariff estimates; Imposition of a temporary decreasing 
coefficient; 
Special order of expenses accumulation The Agency Order No. 80-OD dated 
19 March 2003 " Оn adoption of the 
Regulation on tariff  establishment (prices, 
fee rates) according to a simplified 
procedure"  
14 Telecommunication services 
with the use of local networks  
CPC (752, 75211, 75212) Connection of subscriber terminal 
to the telecommunication network ; 
Providing local telephone 
communication according to a subscriber payment system; 
Providing local telephone 
communication according to time payment system; 
Providing inter-town telephone 
communication; Leasing of digital telephone 
channels of inter-town and zonal 
networks; Telegram sending in RK; 
Providing television broadcasting 
channel; Providing network resources to communication statement   3 
 
 
  
 
  
 
  
 
  
 
  12 
 
 
  
 15 
 
 
  
 
  
 
  
 
  
 
  Approval of a tariff (price, fee rates); 
Approval of tariff estimates; 
Imposition of a temporary decreasing 
coefficient; Special order of expenses 
accumulation The Agency Order No. 46-OD dated 
20 February 2003 " Оn approving the 
Regulation on reducing tariffs (prices, 
collection rates) for services (goods, works) provided for all consumers of natural 
monopoly entities during validity of tariffs 
(prices, collection rates)";  
The Order of the Agency No. 216-OD dated 
28 October 2002 " Оn approving the 
Regulation on applying antimonopoly 
regulation measures in case of violation of 
antimonopoly legislation"   
  WT/ACC/SPEC/KAZ/8/Rev.1
 Page 101Number of natural monopoly 
entities providing such types 
of services included in the 
State Register No. Types of activities referred to 
the sphere of natural monopoly 
in accordance with the Law of 
the Republic of Kazakhstan 
(hereinafter RK) "On Natural 
Monopolies" Regulated types of services 
Republican 
sections Local 
sections Total Regulation mechanism The list of legal acts regulating the activities 
of natural monopoly entities and issues of 
tariff setting 
15 Water management system 
services  
CPC (9401, 94010) Delivery of water by main 
networks; 
Delivery of water by distribution networks; 
Water scoop and water purification  3 
 
4 
 
 
7  
 
315 
 
 
315 3 
 
319 
 
 
322 Approval of a tariff (price, fee rates); 
Approval of tariff estimates; 
Imposition of a temporary decreasing coefficient; 
Special order of expenses 
accumulation The order of the Agency No. 149-OD dated 
6 June 2003 " Оn approving the Regulation on 
procurement of material, financial resources and services, the costs of which  are taken 
into account when setting tariffs (prices, 
collection rates) on the services provided by natural monopoly entities 
16 Sewerage system services  
CPC (940, 401, 94010) Drainage of sewage water; 
Purification of sewage water  3 
 
3 159 
 
159 162 
 
162 Approval of a tariff (price, fee rates); 
Approval of tariff estimates; 
Imposition of a temporary decreasing 
coefficient; Special order of expenses 
accumulation The Order of the Agency No. 04-OD dated 
13 January 2003 " Оn terms of approving 
tariffs (prices, collection rates) for the 
services (goods, works) of natural monopoly entities" 
 
17 Public mail services  
CPC 751 Sending of a letter; 
Sending of a card; 
Sending a postal wrapper  1 
 
1 1  1 
 
1 1 Approval of a tariff (price, fee rates); 
Approval of tariff estimates; 
Imposition of a temporary decreasing coefficient; Special order of expenses 
accumulation The Order of the Agency No. 118-OD dated 
7 June 2002 " Оn approving the Regulation on 
preparing, compiling and agreeing a normative legal act and le gal act drafts of the 
Agency of the Republic of Kazakhstan on 
regulation of natural monopolies and 
protection of competition"; The Order of the Agency No. 44-OD dated 
20 February 2003 " Оn additional 
requirements to the mandatory annual natural monopoly entity audit agreement"; 
The Order of the Agency of 
26 December 2003 No. 341-OD " Оn 
approving the Regulation on agreeing a 
temporary compensating tariff (price, 
collection rate)"; The Order of the Agency " Оn approving the 
Regulation on natural monopoly entity 
investment program implementation efficiency monitoring" of 26 December 2003 
No. 340-OD; 
The Regulation on public utilities services providing and the Regulation on electric power consumption, The Regulation on 
heating power consumption approved by the 
resolution of the Government of the republic of Kazakhstan of  7 December 2000 
No. 1822; 
The Regulation on establishing and cancellation of  reducing coefficients to the  
 WT/ACC/SPEC/KAZ/8/Rev.1 
Page 102 Number of natural monopoly 
entities providing such types 
of services included in the 
State Register No. Types of activities referred to 
the sphere of natural monopoly 
in accordance with the Law of 
the Republic of Kazakhstan 
(hereinafter RK) "On Natural 
Monopolies" Regulated types of services 
Republican 
sections Local 
sections Total Regulation mechanism The list of legal acts regulating the activities 
of natural monopoly entities and issues of 
tariff setting 
tariffs on electric power delivery (transit) 
services approved by the Order of the 
Chairman of the Agency of 29 December 1999 No. 23- OD  registered in 
the Ministry of Justice of the Republic of 
Kazakhstan of  6 January 2000 No. 1025  
 
 
 
  
  WT/ACC/SPEC/KAZ/8/Rev.1
 Page 103ANNEX IV 
 
Excise Tax Rates Applied to Domesti cally Produced and Imported Goods  
(approved by the Resolution of the Government of the Republic of Kazakhstan No. 137 dated 28 January 2000)  
 
Excise rates for: 
Code of foreign 
trade invoice Title Tax base (object of 
imposing) Manufactured goods 
and gambling 
business 
(KZT) Imported goods 
(Euro) 
All types of spirits (except alcohol sold as alcoholic beverages, medical and pharmaceutical medication if producers have the licence for production of indicated goods and received by state medical institutions within the 
limits of established quotas)        physical volume  300/1 litre 3 euro*/1litre 
  
Alcohol sold for production of alcoholic beverages if producers have the licence for production of indicated goods physical vol ume 30/1 litre 0.3/1 litre 
Alcoholic beverages (except some lo w alcohol beverages with ethyl spir it content up to 12%, balms, alcohol 
registered in accordance to the legislation of the Re public of Kazakhstan as medica tion, cognac, brandy, wine 
beverages, wine, champagne, sp arkling wine, aerated wine, proc essed wine and beer)     physical volume 125/1 litre of 
waterless (100%) 
alcohol 1.7/1itre  
Other low alcohol beverages with ethyl spirit co ntent up to 12%  physical volume 125/1 litre of 
waterless  (100%) 
alcohol 0.4/litre 
Balms registered as medication in accordance with the legisla tion of the Republic of Kazakhstan  physical volume 10/1 litre 0.4 /1 litre 
Cognac, brandy  physical volume 20/ 1 litre 1.7/1 litre 
Balms registered as medication in accordance with the legisla tion of the Republic of Kazakhsta n physical volume 10/1 litre 0.4/ 1 litre 
Wine drinks physical volume 30/1 litre 0.4/1 litre 
Cognac, brandy  physical volume 20/1 litre 1.7/1 litre 2208** 
Wine drinks        physical volume 30/1 litre 0.4/ 1 litre 
Wine (except champagne, sparkling wine, aerated (pearl)  physical volume 10/1 litre 0.4/1 litre From 2204, 
2205, 2206 00 Champagne, sparkling wine, aerated (pearl)  physical volume 20/1 litre 0.4/1 litre 
 
2203 00** Beer  physical volume 7/1 litre 0.2/1 litre 
Tobacco goods with filter physical volume 180/1,000 units 2/1,000 units 2402** 
Tobacco goods without filter and other products containing tobacco            100/1,000 units 2/1,000 units  
from 0301, 
0302, 0303, 
0304, 0305, 
1604 ** Sturgeon and salmon caviar            For produced– 
cost, for imported 
– custom value 100% 100% 
Gasoline(except aviation spirit): physical volume  31/1 tonne 
Wholesale trade of gasoline (exc ept aviation spirit) by producers  physical volume 4,500/1tonne  
Retail trade of gasoline (except aviation spirit) by producers,  use for own industrial needs  physical volume 5,000/1tonne  271000270-
271000360** 
Retail trade of gasoline and diesel oil by juridical and natu ral persons (except aviation spirit)) use for own 
industrial needs physical volume 5,00/1tonne  
271000610, Diesel oil physical volume  -  
 WT/ACC/SPEC/KAZ/8/Rev.1 
Page 104 Excise rates for: 
Code of foreign 
trade invoice Title Tax base (object of 
imposing) Manufactured goods 
and gambling 
business 
(KZT) Imported goods 
(Euro) 
Wholesale trade of diesel oil (e xcept aviation spirit) by producer s  physical volume 540/1 tonne  
Retail trade of diesel oil (except aviation spirit) by producer s, use for own industrial needs  physical volume 600/1 tonne  271000650, 
271000690** 
Retail trade of diesel oil (except aviation spirit) by juridica l and natural persons,  use for own industrial needs physical vo lume 60/1 tonne  
8703 Cars Custom value or 
volume of the 
engine - 10 per cent, but not 
less than 0.5/cubic 
cm. (only for cars 
with the volume of 
the engine more than  
3,000 cubic cm.) 
Game table  130-740 MCI -  Gambling business (except lottery)             
game-playing 
machine with 
money prize  5-25 MCI - 
Totalizing cash 
register  80-200 MCI -   
cash register  20-100 MCI - 
 Lottery organization and conducting  Declared  - 10 per 
cent gain 
deducting the 
amount not 
including excise 
tax  of prize fund   10% - 
* Euro is calculated in Tenge according to the exchange rate of the National Bank of the Republic of Kazakhstan on the date est ablished by the custom legislation for paying the 
customs duties. 
** Nomenclature of goods is defined as foreign trade invoice code as well as a title of goods   
 
 
  
  WT/ACC/SPEC/KAZ/8/Rev.1
 Page 105ANNEX V 
 
A. List Of Goods Subject to Import and Export Licensing  
(approved by the Resolution No. 1037 of the Government of the Republic of Kazakhs tan (RK) on 30 June 1997)  
 
HS Number Goods Ministries responsible 
for administration of 
licence Ministries subject to coordination upon 
issuing licences Type of 
licence Justification 
010119900, 010290900,                         
010391900, 010392900,                        
010410800, 010420900, 01060090        
(only wild animals) 
070951, 070952000, 071080610, 
071080690                                              Wild animals,  
wild growing plants 
(besides those falling under the 
Convention on trade of 
endangered wild life and fauna) Ministry of  Industry 
and Trade of the RK The Licence issuing on  the basis of  
permission of the Government of the RK Export This measure applies for the 
purposes of environment 
protection of the RK. 
871000000, 8802 (except 
880211100, 880212100, 
880220100, 880230100,880240100), 
8803(except 880310100,   
880320100, 880330100,   
880390910), 880400000,   
(only for military purposes)   
8805(except 880520100), 
890600100,                                          
930100000,930200, 9305   
(only to fighting guns), 
9306 (except 930610000, 930629400,   
930630910-930630980, 930690900,   
901310000( only for military 
purposes)                                                
901320000(only for military 
purposes)                                                
901380 (only for military purposes),   
9014 (only for military purposes), 
8525 (only for military purposes),   
8526 (only for military purposes) Army equipment and military 
devices, specially completed 
Articles for it's production, works 
and services in the field of 
military-technical cooperation.   
 Ministry of  Industry 
and Trade of the RK The Licence issuing on the basis of  
permission of the Government of the RK Export/ 
Import This measure is used for the 
reason of the national 
security interests protection 
in regards to trade of guns, 
ammunition, military 
materials, whic h directly or 
indirectly used for the 
purpose of supplying the 
military forces.  
 WT/ACC/SPEC/KAZ/8/Rev.1 
Page 106 HS Number Goods Ministries responsible 
for administration of 
licence Ministries subject to coordination upon 
issuing licences Type of 
licence Justification 
2844 (except  oxide- protoxide of 
natural uranium, unity of uranium by 
enrichment till 
20% under uranium isotope 235 and 
sources of radiation ionizing, which 
not contain divisible element),   
2845, 380110000  only pure nuclear 
graphite), 8401, 711041000                   Nuclear materials, technology,  
equipment and settlements, 
special non nuclear materials, 
sources of active radiation, 
including radioactive waste 
products.          
 Ministry of Industry 
and Trade of the RK The Licence issuing on the basis of 
permission of the Government of the RK Export/ 
Import This measure applies for the 
purposes of protection of the 
state security interests in 
regards to splitting materials 
or materials they are 
produced from, and also for 
the purposes of life and 
health protection of the Kazakh population. 
9022 X-ray equipment,   
devices and equipments with use 
of radioactive substances and 
isotopes.                                            Ministry of Industry 
and Trade of the RK Ministry of   Health of the RK. Export/ 
Import This measure applies for the 
purposes of life and health 
protection of the Kazakh 
population. 
040700900, 0507, 050800000, 0604, 
051000,  071230000, 080221000, 
08022200, 0810, 0812, 121220000, 
1301, 1302 (except 130219300), 
9601                           Elephant bone, antlers, hoofs, 
maral's antlers, corals and 
analogous materials (besides 
those falling under the 
Convention on trade of 
endangered wild life and fauna)                               Ministry of Industry 
and Trade of the RK Ministry of Agriculture, 
Ministry of Environment protection of 
the RK Export This measure applies for the 
purposes of environment 
protection of the RK. 
020610100, 020622100, 020629100, 020630100, 020641100, 020680100, 
020690100 (only from wild animals), 
0507 (only  medicine raw materials), 
051000,1211, 121220000,1302 
(except 130219300), 3001,3002 
(except ready done medicine 
materials) Medicine raw materials of 
vegetable and animal origin  
  Ministry of Industry 
and Trade of the RK Ministry of Agriculture, 
Ministry of Environment protection of 
the RК Export This measure applies for the 
purposes of environment 
protection of the RK. 
According to list confirmed by the Government of the RK Poison  
                                                            Ministry of Industry 
and Trade of the RK Ministry of  Health of the RK,  
Ministry of the Environment protection 
of the RK Export/ 
Import This measure applies for the 
purposes of life and health protection of the Kazakh 
population. 
280470001 Yellow Phosphorus  ("white") 
   Ministry of Industry 
and Trade of the RK Ministry of Environment protection of 
the RK                   Export This measure applies for 
monitoring of exports of 
such products since they are 
extremely dangerous to 
human life and health.   
  WT/ACC/SPEC/KAZ/8/Rev.1
 Page 107HS Number Goods Ministries responsible 
for administration of 
licence Ministries subject to coordination upon 
issuing licences Type of 
licence Justification 
According to list confirmed by the 
Government of the RK Some types of raw materials, 
articles, equipment, technology 
and scientific-technical 
information, which can be used in 
creation of army equipment and 
devices.                                    Ministry of Industry 
and Trade of the RK Ministry of Education of the RK – 
Academy of Science, Committee of 
National Security  Export This measure is used for the 
reason of the national 
security interests protection 
in regards to trade of guns, 
ammunition, military 
materials, whic h directly or 
indirectly used for the 
purpose of supplying the military forces. 
According to list confirmed by the 
Government of the RK Materials, equipment and 
technology, which have peaceful  
meaning, but can be used in 
creation of missile, nuclear and 
other types of  weapon of mass 
destruction Ministry of Industry 
and Trade of the Rk Ministry of Education, Academy of 
Science, Committee on National Security Export This measure applies for the 
purposes of the national 
security interests protection 
as of possible use of these 
products in military time or 
in other extraordinary 
circumstances in the 
international relations.  
8471 (only  figure typed technics) 
847330 (only for figure typed technics) 
854390900 (only for figure typed 
technics) Code means (including code 
technics, components for code technics and programme packets 
for code), normative- technical 
documentation to code means 
(including constructive and 
exploitational)   Ministry of Industry 
and Trade of the RK Committee on National Security Export/ 
Import This measure applies for the 
purposes of the international and national safety. 
360100000 (except for the 
gunpowder) 360200000, 
360300,3604 Gunpowder, explosive 
substances, means of explosion 
and  pyrotechnics  Ministry of  Industry 
and Trade of the RK Ministry of Internal Affairs Export/ 
Import This measure is used for the 
reason of the national 
security interests protection 
in regards to trade of guns, 
ammunition, military 
materials, whic h directly or 
indirectly used for the 
purpose of supplying the 
military forces.  
 WT/ACC/SPEC/KAZ/8/Rev.1 
Page 108 HS Number Goods Ministries responsible 
for administration of 
licence Ministries subject to coordination upon 
issuing licences Type of 
licence Justification 
According to list confirmed by the 
Government of the RK Official and civil gun         
                                      Ministry of Industry 
and Trade of the RK Ministry of Internal Affairs Export/ 
Import This measure is used for the 
reason of the national 
security interests protection 
in regards to trade of guns, 
ammunition, military 
materials, whic h directly or 
indirectly used for the 
purpose of supplying the military forces. 
According to list confirmed by the 
Government of the RK Means of protection from fighting 
poison gas, its parts and 
accessories.         
                       Ministry of Industry 
and Trade of the RK Ministry of Defense of the RK Export/ 
Import This measure is used for the 
reason of the national 
security interests protection 
in regards to trade of guns, 
ammunition, military 
materials, whic h directly or 
indirectly used for the 
purpose of supplying the 
military forces. 
  Normative- technical 
documentation to products of 
military purpose (including 
constructive and expluatational)   Ministry of Industry 
and Trade of the RK Ministry of Defense of the RK, 
Committee on National Security Export/ 
Import This measure applies for the 
purposes of protection of the 
national security interests in 
regards to trade of guns, 
ammunition, military 
materials, whic h directly or 
indirectly conducted for the 
purposes of provision of the 
military forces. 
261100000, 2613-2615, 280450,   
280490000, 280521000, 280530100, 
280540100, 2825 (except five-oxide, 
for  vanadium production), 
282619000, 284170000284190900, 
2846, 740500000  750220000, 
760120100, 8101, 8103, and mineral 
810411000, 8105, 810600, 8108 
resources (except titanium sponge), 
8109, 8112, 811300                                Rare Metals, rare ground   
raw materials, alloy, 
combinations and Articles    
  Ministry of Industry 
and Trade of the RK Committee on atomic energetic of the 
Ministry of Atomic Energy and Mineral 
Resources of the RK Export  This measure is used for the 
reason of the national 
security interests protection 
in regards to trade of guns, 
ammunition, military 
materials, whic h directly or 
indirectly used for the 
purpose of supplying the 
military forces.  
  WT/ACC/SPEC/KAZ/8/Rev.1
 Page 109HS Number Goods Ministries responsible 
for administration of 
licence Ministries subject to coordination upon 
issuing licences Type of 
licence Justification 
830170000, 847130000,   
847141900, 847149900, 847150900, 
847330100, 851750, 851780900, 
8525, 852610900, 852691, 8527, 
854389900, 901910900, 9006, 
902219000, 902229000 
(only special technical devices, 
devices of information defense and other technics of double application) Special technical devices intended 
for special operative- 
investigation activity, sources of 
information defense, other 
technics of  double application 
(including its components, 
application programme packets), 
normative- technical documentation to special 
technical means (including 
constructive and exploitational)       Ministry of Industry 
and Trade of the RK Committee on National Security Expor t This measure applies for the 
purposes of the international 
and national safety. 
2612,2805,2841,2844 (only oxide- protoxide of natural uranium, unity of 
uranium by enrichment till 20% 
under uranium isotope 235 and 
sources of radiation ionising. Not 
contain divisible elements), 
380110000 (except pure –nuclear 
graphite), 711011000, 711220000, 
711290000, 711510000, 740500000, 
750220000, 760120, 760200900, 
760820, 9022 Nuclear materials, technologies, 
equipment and settlements, 
special non nuclear materials, 
sources of radio active radiation, 
apparatus, based on application of 
X-ray, alpha-, beta- or gamma- 
radiation. 
 Ministry of Industry 
and Trade of the RK Committee on atomic energy of the 
Ministry of Energy and mineral resources 
of the RK. 
 Export/ 
Import This measure applies for the 
purposes of protection of the 
state security interests in 
regards to splitting materials 
or materials they are 
produced from, and also for 
the purposes of life and 
health protection of the 
Kazakh population. 
3808 (only preparations for plant protection) Chemical sources of plants 
protection Ministry of Industry 
and Trade of the RK Ministry of Agriculture, 
Ministry of  Environment protection of 
the RK Import This measure applies for the 
purposes of environment 
protection of the RK 
261800000-2620, 3915 Industrial waste materials  
 Ministry of Industry 
and Trade of the RK Ministry of Environment protection of 
the RK Import This measure applies for the 
purposes of environment 
protection of the RK 
121190800           Opium raw materials (medicinal  
herbs)  Ministry of Industry 
and Trade of the RK Ministry of  Health of the RK Import This measur e is used for 
monitoring the import inflows since these products 
are rare found plants. 
210690200            Components of alcohol, half-
finished products, except of 
products made on the base 
fragrant substances, used in 
beverages 
production.             
2203 00 Beer made from malt 
2204, 2205, 2206 Wine  
2207 Ethyl alcohol               Committee of state 
control for production 
and turnover of excise 
products of the Ministry 
of Finance of the RK  
  Import  This measure applies for the 
purposes of life and health 
protection of the RK.  
 WT/ACC/SPEC/KAZ/8/Rev.1 
Page 110 HS Number Goods Ministries responsible 
for administration of 
licence Ministries subject to coordination upon 
issuing licences Type of 
licence Justification 
2208 Ethyl alcohol non-denaturative 
with alcohol concentration 
less than 80%, alcohol nastoyka, 
liqueur and other alcohol drinks           
830170000, 847130000,  847141900, 
847149900, 847150900, 847330100, 
851750, 851780900, 851810, 
851840,    851850900, 
852032,  852033, 852090900,  8521, 
8525, 8526, 8527   854389900, 
900219000, 900580000, 9013, 
901910900, 9006, 902219000, 
902229000, (only special technical 
devices, 
devices of information defense and 
other technics of double application)       Special technical devices 
intended for special operative- 
investigation activity, sources of 
information defense, other 
technics of  double application 
(including its components, 
application programme packets), 
normative- technical 
documentation to special 
technical means (including 
constructive and expluatational)       Ministry of Industry 
and Trade of the RK Committee on National Security Import This measure applied for the 
purposes of international and 
national safety. 
271000210,  271000250, 271000390,  271000410, 271000450 White-spirit, other weak 
distillates, other medium 
distillates for specific processes of  processing for chemical 
conversion in processes Ministry of Industry 
and Trade of the RK Ministry of Energy and Mineral 
resources of the RK Import Licensing of these products 
was introduced to import 
quota which applied toward these products till 
31 December 2002. The 
Republic of Kazakhstan 
therefore is considering 
discontinue application of 
import licensing toward 
them.  
 
 
  
  WT/ACC/SPEC/KAZ/8/Rev.1
 Page 111B. List of Goods, that are Exported under Licence in Accordance with International Obligations of the Republic of Kazakhstan  
(approved by the Resolution No. 1037 of the Government of the Republic of Kazakhstan оn 30 June 1997)  
 
HS Number Goods Ministries responsible 
for administration of 
licence State bodies of the RK, which coordinates 
the decision about issuing of licence Justification 
7208 10 000, 7211 14 100, 
7208 25 000, 7208 38 900,         
7208 39 900, 7211 19 200, 
7208 26 000, 7208 27 000,         
7219 11 000, 7219 12 100,  
7219 12 900, 7219 13 100, 
7219 13 900, 7219 14 100, 
7219 14 900, 7208 36 000,         
7208 37 900, 7225 20 200, 
7225 30 000 Sheet of rolled metal 
1 Rolls    
  
7208 37 100, 7208 38 100, 7208 39 100 SA 1а Rolls, 
intended for secondary 
rolling process 
7208 40 100, 7208 51 100,         7208 51 300, 7208 51 500,         
7208 51 910, 7208 51 990,         
7208 52 100, 7208 52 910,         
7208 52 990, 7208 53 100,         
7211 13 000 SA 2 thin sheet steel               
  
7208 40 900,  7208 53 900, 
7208 54 100,  7208 54 900, 
7208 90 100,  7209 15 000, 
7209 16 100,  7209 16 900,        
7209 17 100,  7209 17 900,        
7209 18 100,  7209 18 910         
7209 18 990,  7209 25 000,        
7209 26 100, 7209 26 900,         
7209 27 100, 7209 27 900,         7209 28 100, 7209 28 900,   
7209 90 100, 7210 11 100,  
7210 12 110, 7210 12 190, 
7210 20 100, 7210 30 100, 
7210 41 100, 7210 49 100, 
7210 50 100, 7210 61 100, 
7210 69 100, 7210 70 310, 
7210 70 390, 7210 90 310, 
7210 90 330, 7210 90 380, SA 3 Other sheet rolled 
metal 
  Ministry of Industry 
and Trade of the RK - This measure is used to fulfil the RK's obligations, 
under the Agreement between the Government of the 
RK and the European Coal and Steel Union on trade of 
certain steel  products dated 15 December 1999.  
 WT/ACC/SPEC/KAZ/8/Rev.1 
Page 112 HS Number Goods Ministries responsible 
for administration of 
licence State bodies of the RK, which coordinates 
the decision about issuing of licence Justification 
7211 14 900, 7211 19 900, 
7211 23 100, 7219 32 900, 
7219 33 100, 7219 33 900, 
7219 34 100, 7219 35 100, 
7219 35 900, 7225 40 800      
7219 34 900, 7219 23 000, 
7219 24 000, 7219 31 000, 
7219 32 100, 7212 60 910, 
7219 21 100, 7219 21 900, 
7219 22 100, 7219 22 900, 
7212 50 310, 7212 50 510, 
7212 60 110, 7212 20 110, 
7212 30 110, 7212 40 100, 
7212 40 910, 7211 23 510, 
7211 29 200, 7211 90 110, 
7212 10 100, 7212 10 910,  
7211 23 990, 7211 29 500,  
7211 29 900, 7211 90 900 Plane rolled metal  made 
from carbonaceous steel in 
rolls no more than 500 mm. 
wide        
  
7211 23 910, 7225 19 100, 7225 19 900, 7226 19 100, 
7226 19 300, 7226 19 900, Plane rolled metal  made 
from electrotechnical steel 
with non oriented core              
7226 11 900 Plane rolled metal  made 
from siliceous  
electrotechnical steel with 
oriented core Ministry of Industry 
and Trade of the RK - This measure is used to fulfil the RK's obligations, 
under the Agreement between the Government of the 
RK and the European Coal and Steel Union on trade of 
certain steel  products dated 15 December 1999. 
520411000, 520419 000, 5205, 5206, 5604 90 000      Thread and yarn   
 Ministry of Industry 
and Trade of the RK - This measure is used to fulfil the RK's obligations, 
under the Agreement between the Government of the 
RK and the European Economic Community on trade 
of textile products (ratified in Brussels on 
15 October 1993) 
5208-5212,5512-5515,580390300, 
581100000,590500700, 
630800000 Cloth, fabric 
 Ministry of Industry 
and Trade of the RK - This measure is used to fulfil the RK's obligations, 
under the Agreement between the Government of the 
RK and the European Economic Community on trade 
of textile products (ratified in Brussels on 
15 October 1993) 
610110-610130900,610210-
610230900, 
610510000-610520, 
610590100,610610000-
610620000, 610690100, 6110 
(except 611090) Male clothe s, female, 
children's, outer-clothes 
 Ministry of Industry 
and Trade of the RK - This measure is used to fulfil the RK's obligations, 
under the Agreement between the Government of the 
RK and the European Economic Community on trade 
of textile products (ratified in Brussels on 
15 October 1993)  
  WT/ACC/SPEC/KAZ/8/Rev.1
 Page 113HS Number Goods Ministries responsible 
for administration of 
licence State bodies of the RK, which coordinates 
the decision about issuing of licence Justification 
6203 (except 620341300, 
620342110, 620342510, 
620342590, 620343110, 
620343310, 620343390, 
620349110, 620349310, 
620349390, 620349900) 
620461100,620510000-
620530000, 620620000-620640000,621132900, 
621133 900,621142 900, 
621143900 
6109 (except 610990900) Male  clothes, female, 
children's , underclothes       
 Ministry of Industry 
and Trade of the RK - This measure is used to fulfil the RK's obligations, 
under the Agreement between the Government of the 
RK and the European Economic Community on trade 
of textile products (ratified in Brussels on 
15 October 1993) 
7208 10 000, 7208 25 000, 
7208 26 000, 7208 27 000, 
7208 36 000, 7208 37 900, 7208 38 900, 7208 39 900, 
7211 14 100,  7211 19 200, 
7219 11 000, 7219 12 100, 
7219 12 900, 7219 13 100, 
7219 13 900, 7219 14 100, 
7219 14 900, 7225 20 200, 
7225 30 000 SA  Sheet rolled metal 
SA 1 Rolls 
 Ministry of Industry 
and Trade of the RK - This measure is used to fulfil the RK's obligations, 
under the Agreement between the Government of the 
RK and the European Coal and Steel Union on trade of certain steel products dated 15 December 1999. 
7208 37 100, 7208 38 100, 
7208 39 100 SA  1а Rolls, intended for 
secondary rolling process 
 
7208 40 100, 7208 51 100 7208 51 300, 7208 51 500 
7208 51 910, 7208 51 990 
7208 52 100, 7208 52 910 
7208 52 990, 7208 53 100 
7211 13 000 SA 2 Thin sheet steel         
 
7208 40 900, 7208 53 900 
7208 54 100, 7208 54 900 
7208 90 100, 7209 15 000 
7209 16 100, 7209 16 900 
7209 17 100, 7209 17 900 
7209 18 100, 7209 18 910 SA 3 Other sheet roll        
 Ministry of Industry 
and Trade of the RK - This measure is used to fulfil the RK's obligations, 
under the Agreement between the Government of the 
RK and the European Coal and Steel Union on trade of 
certain steel products dated 15 December 1999.  
 WT/ACC/SPEC/KAZ/8/Rev.1 
Page 114 HS Number Goods Ministries responsible 
for administration of 
licence State bodies of the RK, which coordinates 
the decision about issuing of licence Justification 
7209 18 990, 7209 25 000 
7209 26 100, 7209 26 900 
7209 27 100, 7209 27 900 
7209 28 100, 7209 28 900 
7209 90 100, 7210 11 100 
7210 12 110, 7210 12 190 
7210 20 100, 7210 30 100 
7210 41 100, 7210 49 100 7210 50 100, 7210 61 100 
7210 69 100, 7210 70 310 
7210 70 390, 7210 90 310 
7210 90 330, 7210 90 380          
7211 19 900, 7211 23 100 
7211 23 510, 7211 29 200 
7211 90 110, 7212 10 100 
7212 10 910, 7211 14 900 
7212 20 110, 7212 30 110 
7212 40 100, 7212 40 910 
7212 50 310, 7212 50 510 
7212 60 110, 7212 60 910 
7219 21 100, 7219 21 900 
7219 22 100, 7219 22 900 
7219 23 000, 7219 24 000 
7219 31 000, 7219 32 100 
7219 32 900, 7219 33 100 
7219 33 900, 7219 34 100 
7219 34 900, 7219 35 100 
7219 35 900, 7225 40 800    
 
  
  WT/ACC/SPEC/KAZ/8/Rev.1
 Page 115ANNEX VI 
Export and Import Licensing Rules  
 
Licensing procedures 
Export and import of goods excludi ng import of ethyl spirit and 
alcoholic beverages Import of ethyl spirit and alcoholic beverages Compliance with the WTO Agreement on import licensing 
procedures (hereinafter –Agreement) 
The acting Rule was approved by the Resolution of the Government of the Republic of Kazakhstan (hereinafter-the RK) 
No. 1037 dated 30 June 1997 and came into force 30 days after 
its publication.    The acting Rule was approved by the Resolution of the 
Government of the RK No. 1031 dated 27 June 1997 and 
came into force 30 days after its publication.       The Rules are transparent and widely available and was 
published prior to coming into force, which is in compliance 
with the provisions of the Article 1.4 of the Agreement.  
The present Rule covers all juridical and natural persons  of the Republic of Kazakhstan including foreign citizens 
independently of organization's le gal status and registration place (hereinafter – the applicant).  The Rule is nondiscriminatory and fair, which is in compliance 
with the Article 1.3 of the Agreement. 
Licenses are issued by the Ministry of industry and trade according to the procedures established by the legislation of the 
Republic of Kazakhstan (hereinafter – the Licensor).      Licenses are issued by the Ministry of Finance according 
to the procedures established by the legislation of the 
Republic of Kazakhstan (hereinafter – the Licensor).      Export and import licenses are issued by the  state body upon 
preliminary agreement with the authorized ministries and 
agencies, usually no more than three agencies, excluding 
licenses for import of ethyl spirit and alcoholic beverages  which 
are issued by the Ministry of Finance. Such provision is in 
compliance with the Article 1.6 of the Agreement.  
Licenses are issued on equal basis and term s to all persons complying with the requir ements established for such type of a 
licence. It is prohibited to provide a preferential licensing right  to the state enterprises except for such activities referre d by the 
legal acts as natural monopolies.  Foreign juridical and natural persons and pers ons without citizenship receive licenses on the  
same terms and according to the same procedures as juridical persons and natural persons of Kazakhstan if it is not otherwise 
stipulated by the legal acts of the RK. It  is prohibited to issue licenses in order to limit competition or to provide preferen ces to 
some groups of entrepreneurs depending on their property, agency  interests or location. Issue of licenses should not assist 
monopoly  strengthening or limit freedom of entrepreneurship.   Licensing procedure of goods export and import is not 
considered as trade limitation and is applied on equal terms to 
everyone, thus it is in complian ce with the basic principles of 
the GATT. 
Introduction of licensing procedures or thei r termination can be done for the matters of the state security , implementation of 
state monopoly, provision of law and or der, protection of environment, pr operty, life and health of citizen. Basic objectives of goods expor t and import licensing in the 
Republic of Kazakhstan comply with the provisions of the 
Article XXI of GATT. 
The following documents were necessary to obtain a licence:  (a) an application, (b) a document confirming the payment of 
licence fee, (c) a copy of certificate of state registration, (d) a copy of a contract (agreement) on sales-purchase with 
participants of international trade deal, (e) a licence for production of alcohol product s, or for storage and sale of ethyl sp irit in 
case of importing ethyl spirit.        It is necessary to present rele vant documents when getting a 
licence for export and import of g oods for the licensing regime's 
proper functioning. This provision corresponds to the provision 
of the Article 1.5 of the Agreement.    
A licence is given to the applic ant for a period of one calendar year to conduc t export and import operations - by individual 
transactions. The licence holder has the right to reject a licence notifying the issuing body. 
Licenses are issued for one type of good (work, service) independent of range  of goods included in the contract. Period of licence validity is reasonable, which is in compliance 
with Article 3.5 of the Agreement.    
Licenses are issued no later than within a month, for entities of small business - no later than within ten days since the date  of 
submission of an application along with all necessary documents.    Generally, review of the licence  application and approval of it 
by the relevant agencies of the RK does not take more than one 
month.   
 WT/ACC/SPEC/KAZ/8/Rev.1 
Page 116 Licensing procedures 
Export and import of goods excludi ng import of ethyl spirit and 
alcoholic beverages Import of ethyl spirit and alcoholic beverages Compliance with the WTO Agreement on import licensing 
procedures (hereinafter –Agreement) 
A licence is not issued if:  
 1. conduction of certain types of activities by the indica ted category of ent ities is prohibited by the legal acts; 
 2. the required documents are not submitted. If the applicant eliminates the indicated drawbacks the application is 
considered on the general basis; 
 3. a licence tax for the right to conduct certain types of activities is not paid; 
 4. the applicant does not meet esta blished qualification requirements; or 
 5. there is a court decree prohibiting conduction of certain types of activities. Procedure of rejection of licen ce issuing does no t contradict 
provisions of the Articles 1.7 and 1.8 of the Agreement. 
If a licence is not issued precisely on the established terms or  if rejection appears as unjustified the applicant has the righ t to 
appeal to the court in one month period. 
 
If the court discloses the facts of unjustified rejection or un timely issue of a licen ce it pronounces the judgment binding the  
licensing body to issue a licence in ten days period since the date when the court judgment comes into force.    If the application is not approved the applicant has the right to 
appeal to the court which complies with the provision of the 
Article 3.5 of the Agreement.   
 
 
  
  WT/ACC/SPEC/KAZ/8/Rev.1
 Page 117ANNEX VII 
List of Goods Subject to Non-Tariff Measures  
 
Code of foreign trade 
invoice Description of goods Non tariff measure A normative act which 
introduces non tariff 
measures Justification Notes 
2710 19 410 0-2710 
19 490 0 
 
2710 19 510 0-2710 19 690 0 Diesel  
 
 
Black oil (mazut) Seasonal bans for 
export of black and 
diesel are used during 
the period of agricultural 
operations in  autumn 
and spring  The Resolution of the 
Government of the RK 
No.  438 dated 
20 April 2004  " Оn export 
of diesel oil" 
At present export of black 
oil is not prohibited. During seasonal agricultural operations demand of 
agricultural producers for combustive-lubricating 
materials increases 7-8 times and there is a 
situation when demand is greater than supply, which results in price increases.   
 
Thus, application of seasonal bans for export of black oil and diesel oil is a necessary measure applied in order to prevent sharp seasonal price 
increases for combustive-lubricating materials in 
the internal market and to satisfy the internal market with the oil products for on-time execution 
of farm works.   The applied measure has a regulated feature and 
can not be considered as a temporary measure 
aimed to prevent or smoot h a critical deficit of 
food or other goods in the Republic as it is stipulated in paragraph 2 of the Article XI of the 
GATT. 
 At present the issue of ju stifiability of applying 
export duties on a constant  basis and imposing a 
ban on combustive-lubricating materials export 
only during the emergencies is being considered according to paragraph 2 of the Article XI of the 
GATT. 
7602 00 110 0  
  
 
  
 
 7602 00 900 0 
7604 10 100 0 
7605   
7503 00 Turnings, cuttings and 
waste of  milling, filings 
and wastes of trimming; wastes of coloured, 
covered or  fastened 
sheets and foil of not more than 0,2 mm 
thickness (without the 
base)   
Aluminum scrap  
Unalloyed Aluminum rods  
Aluminum wire  
 Nickel  wastes and scrap  Prohibition of export 
of some types of 
aluminium and nickel products   The Resolution of the 
Government of the RK 
No.  1243 dated 5 December 1998 " Оn 
introduction of  restrictions 
on import and export of some goods" This measure is taken due to increase of export 
from the territory of the RK , in order to protect the 
Kazakh market of non ferrous metals and to satisfy the needs of the local enterprises. Pursuant to the Article XI of the GATT WTO 
member countries should not prohibit export of 
goods.    
Therefore, at the present stage it is viewed to be 
reasonable to cancel the ban on export of some aluminum and nickel products. 
From 4401 10 000 0 From 4403 10-4403 20, 
440391 000 0 – 4403 99 
4404   
 
  
 
 Fuel wood  in logs and 
billets  
Unprocessed timber, 
dressed or undressed, roughly squared or non 
squared, 
 Barrel wood; chopped logs; wood poling and  pales, pointed but not 
sawed along; trimmed 
wood but not turned, not Ban of export of 
timber, lumber and 
some  types of wood  The Resolution of the 
Government of the 
Republic of Kazakhstan 
No. 785 dated 16 July 2002 "Some issues 
of forest utilization" Due to great demand for wood in the neighbouring 
countries and increase of prices for wood on the 
black market there were increased cases of illegal 
felling, deliberate burning of pine woods in order to get access to removal and storing and further 
export abroad.  
Wood especially round timber was taken as square timber or other types of wood in large volumes and this led to continued thef t of wood at the local 
level. Above mentioned violations threatened the 
country's forest resources. It is crucial to mention Ban on exports of wood in this regard is considered 
to be measure aimed to prevent a critical deficit of 
goods in the republic as stipulated by paragraph 2 
of the Article XI of th e GATT, since the cut down 
of wood had led to decrease of wood supply in the 
republic as well as to significant loss of protection 
and water saving characteristics of forestry and worsening of their sanita ry conditions. The applied 
measure is of systematic character.  
  
 WT/ACC/SPEC/KAZ/8/Rev.1 
Page 118 Code of foreign trade 
invoice Description of goods Non tariff measure A normative act which 
introduces non tariff 
measures Justification Notes 
 
 
 
 4406 
 
4407 10  
 
  
 
  
 
4407 91   
 
  
 
  
4407 99 
  
 
  
 
 4408 90 
 
   
 
  
4418 40 000 0 bent or sawn by other 
means, used for 
production of  canes, 
umbrellas, handles or similar manufactures; 
cracked wood and 
similar wood   Wooden sleepers for 
railways or tramways  
softwood sawed or split  along, dressed or 
cracked, trimmed or not 
trimmed, polished or unpolished, connected or 
unconnected to a pin, of 
more than 6 mm thickness  
Oak wood sawed or split  
along, dressed or cracked, trimmed or not trimmed, polished or 
unpolished, connected or 
unconnected to a pin, of more than 6 mm  
(Quercus s рр.) 
Other types of wood sawed or split  along, 
dressed or cracked, 
trimmed or not trimmed, polished or unpolished, 
connected or 
unconnected to a pin, of more than 6 mm   
Other types of wood split 
along, cut into parts or cracked, dressed or 
undressed, polished or 
unpolished, connected or unconnected to a pin, of not more than 6 mm   
Concreting casing  that Kazakhstan's territory is poor in forest. 
According to the state register of forest resources 
forest covered territory is accounted for 4.6%, 
including high forest plantations accounted for about 1.2%, which means that the country's own 
forest resources are limited. Therefore, the applied 
restrictions are necessary measures in order to reduce negative processes happening in the forest 
territories and to improve the situation with 
protection, maintenance and reproduction of forests.   
 
  
  WT/ACC/SPEC/KAZ/8/Rev.1
 Page 119ANNEX VIII 
Electric Power Delivery by KEGOC  
Services   "AES Ekibastus" LLP  "Ekibastuzskaya station" OJSC  " Каzenergoresurs" LLP 
The title of subsidy 
program or special target subsidy: Electric power delivery by "KEGOC" OJSC, "AES 
Ekibastuz" LLP networks Electric power delivery by "KEGOC" OJSC, "Ekibastuzskaya 
station" OJSC Electric power delivery by "KEGOC" OJSC,  
"Каzenergoresurs" LLP 
Subsidy (subsidy per 
unit): 90% discount  According to the Orders: 84%, 88%, 84%. According to the Orders: 80%,65%, 65% 
Amount of Subsidy, 
mln. Kwatt/hour 575.4 3,482.2 932.8 
Amount of Subsidy, mln 
tenge 229.1 1,753.9 438.6 
Objectives of subsidy  In order to regulate arbitrage investigation with AES 
corporation and to execute the Memorandum of understanding between the government of the Republic of 
Kazakhstan and AES Corporati on "On Regulation of Dispute 
with AES Corporation"  Increase of electric power consumption in comparison to the 
period of the previous year  Increase of electric power consumption in comparison to the 
period of the previous year  
Legal basis  Joint order of the Agency of the Republic of Kazakhstan on 
Natural Monopoly Regulation, Competition Protection And 
Assisting Small Business (dated 15 March 2000, No. 27-OD) 
and the Ministry of Energy and Mineral Resources (dated 
15 March 2000, No.101) The order of the Agency of the Republic of Kazakhstan on 
Natural Monopoly Regulation, Competition Protection And 
Assisting Small Business No. 263 –OD dated 
29 December 2002, the order of the Agency No.166-OD 
dated 30 June 2003, the order of the Agency No.186 dated 27 July 2003 . The order of the Agency of the Republic of Kazakhstan on 
Natural Monopoly Regulation, Competition Protection And 
Assisting Small Business No. 89-OD dated 26 March 2003, 
the Order of the Agency No.166-OD dated 13 August 2003, 
the Order of the Agency No.235-OD dated 16 September 2003  
Payment terms 100% current payment 100% current payment 100% current payment 
Validity of subsidy  Since April 7,  2000 till April 7, 2015 According to the Orders: since 1 January 2003 till 
30 June 2003, since 1 July 2003 till 31 July 2003, since 31 July till 31 December 2003  According to the Orders:  since 1 April 2003 till 
30 September 2003, since 13 August 2003 till 30 September 2003, since 16 September 2003 till 
31 December 2003. 
Statistic data allowing to evaluate effect of 
subsidy on trade  - - - 
 
  
 WT/ACC/SPEC/KAZ/8/Rev.1 
Page 120 ANNEX IX 
Establishing of Decreasing Coefficients of Railway Tariffs on Transportation of Different Types of Goods for the Year 2002  
Type of cargo Sulphuric acid Iron ore products  Coal Coal and black oil Complex ore Secondary material 
resources Metal roll 
The title of subsidy 
program or special target subsidy: Establishing of 
decreasing coefficients of railway tariffs on 
transportation of 
sulphurous acid by rail   Establishing of 
decreasing coefficients of railway tariffs on 
transportation of iron ore 
products by rail    Establishing of 
decreasing coefficients of railway tariffs on 
transportation of coal by 
rail  Establishing of 
decreasing coefficients of railway tariffs on 
transportation of coal 
and black oil by rail   Establishing of 
decreasing coefficients of railway tariffs on 
transportation of 
complex ore by rail   Establishing of 
decreasing coefficients of railway tariffs on 
transportation secondary 
material resources by rail   Establishing of 
decreasing coefficients of railway tariffs on 
transportation of  metal 
roll by rail    
Subsidy (subsidy per unit): decreasing coefficients on railway tariffs  
Amount of Subsidy, 
thousand tonnes  401.37 4,066.1 29,353.95 coal - 15000, black oil - 
396 320  13.04 730.69 593.86 
Amount of Subsidy, 
mln. tenge 119.79 310.57 2,038.87   2.24 133.42 520.04 
The title of subsidy 
program or special 
target subsidy: In order to increase 
transportation volumes, 
support local producers, 
stimulate increase of production volumes the 
tariffs on export 
transportation of sulphuric acid in tanks 
of  producers in all 
communications are reduced  by 25%.  In order to increase 
transportation volumes, 
support local producers, 
stimulate increase of production volumes the 
tariffs on export 
transportation of iron ore products in tanks of  
producers in all 
communications are reduced  by 25%.  In order to increase coal 
transportation volume, 
to prevent possible 
increase of prices of heating and electric 
power consumption and 
subsequent  rise of prices of sector products  In order to implement 
the Agreement between 
the Government of RK 
and the Kyrgyz Republic on use of fuel-energy 
and water resources of 
Naryn-Syrdarya reservoirs in 2003 the 
tariffs on transportation 
of coal and black oil provided as 
compensation for 
electric power from the Kyrgyz Republic during vegetation period 
according to the 
Resolution of the Government of RK 
No.799 dated 
17 July 2002 In order to increase 
volumes of complex ore 
transportation  In order to increase 
volumes of secondary 
material resources 
transportation  In order to increase 
metal-roll transportation 
by rail and volumes of 
metal roll trans shipment in Aktau port  
Legal basis The Regulation of establishing and cancellation of decreasing coefficients of tariffs on transportation by rail to be regulated by the state (approved by the order of the Agency No.24-OD dated 
30 December 1999 registered No.1024 in the Minist ry of Justice on 6 January the Laws of RK " Оn Natural Monopolies", " Оn Transport of RK", " Оn Railway Transport". 
Payment terms Advance payment, no 
indebtedness for transportation services, 
increase of 
transportation volumes in comparison with the 
previous year  Advance payment, no 
indebtedness for transportation services, 
increase of 
transportation volumes in comparison with the 
previous year  Advance payment, no 
indebtedness for transportation services, 
increase of 
transportation volumes in comparison with the 
previous year  In the form of 
compensation of the electric power from the 
Kyrgyz Republic 
delivered in the vegetation period  Advance payment, no 
indebtedness for transportation services 
and fulfilment of 
transportation volumes not less than the level of 
2001   Advance payment, no 
indebtedness for transportation services 
and fulfilment of 
transportation volumes not less than the level of 
2001   Advance payment, no 
indebtedness for transportation services 
and fulfilment of 
transportation volumes not less than the level of 
2001    
  WT/ACC/SPEC/KAZ/8/Rev.1
 Page 121Type of cargo Sulphuric acid Iron ore products  Coal Coal and black oil Complex ore Secondary material 
resources Metal roll 
Validity of subsidy Since 22 February 2002 
till 1 January 2003  Since 15 August 2002 
till 31 December 2002  Since 8 May 2002 till 
1 October 2002  Since 22 July 2003 till 
1 January 2003  Since 29 March 2002 till 
1 January 2003  Since 29 March 2002 till 
1 January 2003  Since 14 February 2002 
till 1 January 2003   
Statistical data allowing to evaluate subsidy effect on 
trade  - - - - - - - 
  
 WT/ACC/SPEC/KAZ/8/Rev.1 
Page 122 Establishing of Decreasing Coefficients of Railway Tariffs on Transportation of Different Types of Goods for the Year 2003  
Cargo Sulphuric acid Iron ore products Coal Coal and black oil Crude oil 
The title of subsidy 
program or special 
target subsidy: Establishing of decreasing 
coefficients to railway tariffs for 
transportation of sulphurous acid by rail  Establishing of decreasing 
coefficients to railway tariffs for 
transportation of iron ore products by rail  Establishing of decreasing 
coefficients to railway tariffs for 
transportation of coal by rail   Establishing of decreasing 
coefficients to railway tariffs for 
transportation of coal and black oil by rail  Establishing of decreasing 
coefficients to railway tariffs for 
transportation of crude oil by rail   
Subsidy (subsidy per unit): decreasing coefficients of railway 
tariffs    decreasing coefficients of railway 
tariffs    decreasing coefficients of railway 
tariffs    decreasing coefficients of railway 
tariffs    decreasing coefficients of railway 
tariffs    
Amount of Subsidy, thousand tonnes  568.61 10,257.17 20,840.14 coal - 252,.7 36.3 
Amount of Subsidy, mln 
tenge 164.26 399.13 900.28   5,7.68 
Objectives and asks of 
subsidy  In order to increase transportation 
volumes, support local producers, stimulate increase of production 
volumes the tariffs on export 
transportation of sulphuric acid in tanks of producers in all 
communications are reduced  by 
25%.  In order to increase transportation 
volumes, support local producers, stimulate increase of production 
volumes the tariffs on export 
transportation of iron ore products in tanks of producers in all 
communications are reduced  by 
15%.  In order to increase coal 
transportation volume, to prevent possible increase of prices of 
heating and electric power 
consumption and subsequent  rise of prices of sector products  In order to implement the 
Agreement between the Government of RK and the Kyrgyz 
Republic on use of fuel-energy and 
water resources of Naryn-Syrdarya reservoirs in 2003 the tariffs on 
transportation of coal and black oil 
provided as compensation for electric power from the Kyrgyz 
Republic during vegetation period 
according to the Resolution of the Government of RK No.799 dated 
17 July 2002     The Regulation on establishing and 
cancellation of decreasing coefficients of tariffs on railway 
transportation regulated by the 
state No.24-OD (approved by the Order of the Agency dated 
30 December 1999, registered 
No. 102 in the Ministry of justice on 6 January 2000  
Legal basis The Regulation on establishing a nd cancellation of decreasing coefficients of tariffs on railway transportation to be regulated by the state  No. 24-OD (approved by the Order of the Agency 
dated December 30, 1999, registered No.102 in  the Ministry of Justice on January 6, 2000 
Payment terms Advance pa yment, no indebtedness 
for transportation services, increase 
of transportation volumes in comparison with the previous year  Advance payment, no indebtedness 
for transportation services, increase 
of transportation volumes in comparison with the previous year  Advance payment, no indebtedness 
for transportation services, increase 
of transportation volumes in comparison with the previous year  In the form of compensation of the 
electric power from the Kyrgyz 
Republic delivered in the vegetation period  Advance payment, no indebtedness 
for transportation services and 
fulfilment of transportation volumes not less than the level of 
2001   
Validity of subsidy since 21 January 2003 till 
31 December 2003  since 24 January 2003 till 
31 December 2003 since April 1 till 1 October 2003  since 17 August 2003 till 
31 December 2003 Since 29 March 2002 till 
1 January 2003 
Statistical data allowing to evaluate subsidy 
effect on trade  - - - - - 
 
 
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